Document:

Credit Agreement

 Exhibit 10.1 
 EXECUTION COPY 
  

 PUBLISHED CUSIP NO.                      
 CREDIT AGREEMENT 
 Dated as of November 20, 2007 
 among 
 COINSTAR, INC., 
 as the Borrower, 
 BANK OF AMERICA,
N.A., 
 as Administrative Agent, Swing Line Lender 
 and 
 L/C Issuer, 
 and 
 The Other Lenders Party Hereto 
 JPMORGAN CHASE BANK, N.A., 
 as Syndication Agent 
 KEYBANK NATIONAL ASSOCIATION, U.S. BANK NATIONAL ASSOCIATION 
 and 
 WELLS FARGO BANK, N.A., 
 as Co-Documentation Agents 
 BANC OF AMERICA SECURITIES LLC 
 and 
 J.P. MORGAN SECURITIES INC.,

 as Joint Lead Arrangers and Joint Book Managers 
  

 TABLE OF CONTENTS 
  

					
	 Section
	  	 	  	Page
	 ARTICLE I.
	  	DEFINITIONS AND ACCOUNTING TERMS	  	4
			
	1.01	  	Defined Terms	  	4
	1.02	  	Other Interpretive Provisions	  	26
	1.03	  	Accounting Terms	  	27
	1.04	  	Rounding	  	27
	1.05	  	Times of Day	  	27
	1.06	  	Letter of Credit Amounts	  	27
			
	 ARTICLE II.
	  	THE COMMITMENTS AND CREDIT EXTENSIONS	  	27
			
	2.01	  	Committed Loans	  	27
	2.02	  	Borrowings, Conversions and Continuations of Committed Loans	  	28
	2.03	  	Letters of Credit	  	29
	2.04	  	Swing Line Loans	  	38
	2.05	  	Prepayments	  	40
	2.06	  	Termination or Reduction of Commitments	  	41
	2.07	  	Repayment of Loans	  	42
	2.08	  	Interest	  	42
	2.09	  	Fees	  	43
	2.10	  	Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate	  	43
	2.11	  	Evidence of Debt	  	44
	2.12	  	Payments Generally; Administrative Agent’s Clawback	  	44
	2.13	  	Sharing of Payments by Lenders	  	46
	2.14	  	Increase in Commitments	  	47
			
	 ARTICLE III.
	  	TAXES, YIELD PROTECTION AND ILLEGALITY	  	48
			
	3.01	  	Taxes	  	48
	3.02	  	Illegality	  	50
	3.03	  	Inability to Determine Rates	  	50
	3.04	  	Increased Costs; Reserves on Eurodollar Rate Loans	  	51
	3.05	  	Compensation for Losses	  	52
	3.06	  	Mitigation Obligations; Replacement of Lenders	  	53
	3.07	  	Survival	  	53
			
	 ARTICLE IV.
	  	CONDITIONS PRECEDENT TO CREDIT EXTENSIONS	  	53
			
	4.01	  	Conditions of Initial Credit Extension	  	53
	4.02	  	Conditions to all Credit Extensions	  	56
			
	 ARTICLE V.
	  	REPRESENTATIONS AND WARRANTIES	  	56
			
	5.01	  	Existence, Qualification and Power	  	56
	5.02	  	Authorization; No Contravention	  	57
	5.03	  	Governmental Authorization; Other Consents	  	57
	5.04	  	Binding Effect	  	57
	5.05	  	Financial Statements; No Material Adverse Effect	  	57
	5.06	  	Litigation	  	58
	5.07	  	No Default	  	58
	5.08	  	Ownership of Property; Liens	  	58
	5.09	  	Environmental Compliance	  	58

  

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	5.10	  	Insurance	  	58
	5.11	  	Taxes	  	58
	5.12	  	ERISA Compliance	  	59
	5.13	  	Subsidiaries; Equity Interests	  	59
	5.14	  	Margin Regulations; Investment Company Act	  	60
	5.15	  	Disclosure	  	60
	5.16	  	Compliance with Laws	  	60
	5.17	  	Taxpayer Identification Number	  	60
	5.18	  	Intellectual Property; Licenses, Etc.	  	60
	5.19	  	Solvency	  	61
	5.20	  	Automatic Coin Counting Machines	  	61
	5.21	  	Collateral Documents	  	61
	5.22	  	GroupEx Acquisition	  	61
			
	 ARTICLE VI.
	  	AFFIRMATIVE COVENANTS	  	61
			
	6.01	  	Financial Statements	  	61
	6.02	  	Certificates; Other Information	  	62
	6.03	  	Notices	  	64
	6.04	  	Payment of Obligations	  	65
	6.05	  	Preservation of Existence, Etc.	  	65
	6.06	  	Maintenance of Properties	  	65
	6.07	  	Maintenance of Insurance	  	65
	6.08	  	Compliance with Laws	  	65
	6.09	  	Books and Records	  	65
	6.10	  	Inspection Rights	  	66
	6.11	  	Use of Proceeds	  	66
	6.12	  	Covenant to Guarantee Obligations and Give Security	  	66
	6.13	  	Further Assurances	  	67
			
	 ARTICLE VII.
	  	NEGATIVE COVENANTS	  	68
			
	7.01	  	Liens	  	68
	7.02	  	Investments	  	70
	7.03	  	Indebtedness	  	70
	7.04	  	Fundamental Changes	  	72
	7.05	  	Dispositions	  	72
	7.06	  	Restricted Payments	  	73
	7.07	  	Change in Nature of Business	  	73
	7.08	  	Transactions with Affiliates	  	74
	7.09	  	Burdensome Agreements	  	74
	7.10	  	Use of Proceeds	  	74
	7.11	  	Optional Payments of other Indebtedness	  	74
	7.12	  	Financial Covenants	  	74
	7.13	  	Capital Expenditures	  	75
	7.14	  	GroupEx Acquisition	  	75
	7.15	  	Amendment of Certain Agreements	  	75
			
	 ARTICLE VIII.
	  	EVENTS OF DEFAULT AND REMEDIES	  	75
			
	8.01	  	Events of Default	  	75
	8.02	  	Remedies Upon Event of Default	  	77
	8.03	  	Application of Funds	  	78

  

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	 ARTICLE IX.
	  	ADMINISTRATIVE AGENT	  	79
			
	9.01	  	Appointment and Authority	  	79
	9.02	  	Rights as a Lender	  	79
	9.03	  	Exculpatory Provisions	  	80
	9.04	  	Reliance by Administrative Agent	  	81
	9.05	  	Delegation of Duties	  	81
	9.06	  	Resignation of Administrative Agent	  	81
	9.07	  	Non-Reliance on Administrative Agent and Other Lenders	  	82
	9.08	  	No Other Duties, Etc.	  	82
	9.09	  	Administrative Agent May File Proofs of Claim	  	82
	9.10	  	Collateral and Guaranty Matters	  	83
			
	 ARTICLE X.
	  	MISCELLANEOUS	  	83
			
	10.01	  	Amendments, Etc.	  	83
	10.02	  	Notices; Effectiveness; Electronic Communication	  	85
	10.03	  	No Waiver; Cumulative Remedies	  	87
	10.04	  	Expenses; Indemnity; Damage Waiver	  	87
	10.05	  	Payments Set Aside	  	89
	10.06	  	Successors and Assigns	  	90
	10.07	  	Treatment of Certain Information; Confidentiality	  	94
	10.08	  	Right of Setoff	  	94
	10.09	  	Interest Rate Limitation	  	95
	10.10	  	Counterparts; Integration; Effectiveness	  	95
	10.11	  	Survival of Representations and Warranties	  	95
	10.12	  	Severability	  	96
	10.13	  	Replacement of Lenders	  	96
	10.14	  	Governing Law; Jurisdiction; Etc.	  	96
	10.15	  	Waiver of Jury Trial	  	97
	10.16	  	No Advisory or Fiduciary Responsibility	  	98
	10.17	  	USA PATRIOT Act Notice	  	98
	10.18	  	ENTIRE AGREEMENT	  	98
		
	 SIGNATURES
	  	S-1

  

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 SCHEDULES 
  

			
	 1.01
	  	Existing Letters of Credit
	 2.01
	  	Commitments and Applicable Percentages
	 5.06
	  	Litigation
	 5.09
	  	Environmental Matters
	 5.13
	  	Subsidiaries; Other Equity Investments
	 5.18
	  	Intellectual Property Matters
	 7.01
	  	Existing Liens
	 7.02
	  	Existing Investments
	 7.03
	  	Existing Indebtedness
	 10.02
	  	Administrative Agent’s Office; Certain Addresses for Notices

 EXHIBITS 
 Form of 
  

			
	 A
	  	Committed Loan Notice
	 B
	  	Swing Line Loan Notice
	 C
	  	Note
	 D
	  	Compliance Certificate
	 E
	  	Assignment and Assumption
	 F
	  	Guarantee and Collateral Agreement
	 G
	  	Opinion Matters

 CREDIT AGREEMENT 
 This CREDIT AGREEMENT (“Agreement”) is entered into as of November 20, 2007, among COINSTAR, INC., a Delaware corporation (the
“Borrower”), each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and
L/C Issuer. 
 The Borrower has requested that the Lenders provide a revolving credit facility, and the Lenders are willing to do so on the
terms and conditions set forth herein. 
 In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows: 
 ARTICLE I. 
 DEFINITIONS AND ACCOUNTING TERMS 
 1.01 Defined Terms. As used in this Agreement, the
following terms shall have the meanings set forth below: 
 “Administrative Agent” means Bank of America in its
capacity as administrative agent under any of the Loan Documents, or any successor administrative agent. 
  

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 “Administrative Agent’s Fee Letter” means the Fee Letter dated October 4, 2007
between the Borrower and the Administrative Agent. 
 “Administrative Agent’s Office” means the Administrative
Agent’s address and, as appropriate, account as set forth on Schedule 10.02, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders. 
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
 “Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified. 
 “Aggregate Commitments” means the Commitments
of all the Lenders. 
 “Agreement” means this Credit Agreement. 
 “Applicable Percentage” means with respect to any Lender at any time, the percentage (carried out to the ninth decimal place) of the
Aggregate Commitments represented by such Lender’s Commitment at such time. If the commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to
Section 8.02 or if the Aggregate Commitments have expired, then the Applicable Percentage of each Lender shall be determined based on the Applicable Percentage of such Lender most recently in effect, giving effect to any subsequent
assignments. The initial Applicable Percentage of each Lender is set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable. 

“Applicable Rate” means the following percentages per annum, based upon the Consolidated Leverage Ratio as set forth in the most
recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(b): 
 Applicable Rate

  

											
	 Pricing
Level
	  	 Consolidated Leverage Ratio
	  	Commitment
Fee	  	Eurodollar
Rate +	  	Letter of
Credit Fee	  	Base Rate
+
	 1
	  	£1.50 to 1.00	  	0.15	  	0.75	  	0.75	  	0.00
	 2
	  	>1.50 to 1.00 but £2.00 to 1.00	  	0.20	  	1.00	  	1.00	  	0.00
	 3
	  	>2.00 to 1.00 but £2.50 to 1.00	  	0.25	  	1.25	  	1.25	  	0.00
	 4
	  	>2.50 to 1.00 but £3.00 to 1.00	  	0.30	  	1.50	  	1.50	  	0.25
	 5
	  	>3.00 to 1.00	  	0.35	  	1.75	  	1.75	  	0.50

  

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 Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage
Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(b); provided that, if a Compliance Certificate is not delivered when due in
accordance with such Section, then Pricing Level 5 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered until the first Business Day immediately following the date such
Compliance Certificate is delivered (provided that, the foregoing shall not operate as a waiver of any Default or Event of Default that may exist as a result of the failure to timely deliver such Compliance Certificate); and provided,
further, that, notwithstanding the Consolidated Leverage Ratio that may be set forth in any Compliance Certificate delivered prior to such time, Pricing Level 1 or 2 shall not apply from the Closing Date until the first Business Day
immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(b) for the fiscal quarter ended March 31, 2008. Notwithstanding anything to the contrary contained in this definition, the determination
of the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b). 
 “Approved Fund”
means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
 “Arrangers” means Banc of America Securities LLC and J.P. Morgan Securities Inc., in their capacities as joint lead arrangers and joint
book managers. 
 “Arrangers’ Fee Letter” means the Fee Letter dated October 4, 2007 among the Borrower and the
Arrangers. 
 “Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or two or more
Approved Funds managed by the same investment advisor. 
 “Assignment and Assumption” means an assignment and assumption
entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit E or any other form approved by
the Administrative Agent. 
 “Attributable Indebtedness” means, on any date, (a) in respect of any capital lease of any
Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease
payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital lease. 
 “Audited Financial Statements” means the audited consolidated balance sheet of the Borrower and its Subsidiaries for the fiscal year
ended December 31, 2006, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the Borrower and its Subsidiaries, including the notes thereto. 
 “Availability Period” means the period from and including the Closing Date to the earliest of (a) the Maturity Date, (b) the
date of termination of the Aggregate Commitments pursuant to Section 2.06, and (c) the date of termination of the commitment of each Lender to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant
to Section 8.02. 
  

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 “Bank of America” means Bank of America, N.A. and its successors. 
 “Base Rate” means for any day a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and
(b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate.” The “prime rate” is a rate set by Bank of America based upon various factors including Bank of
America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such rate announced by Bank
of America shall take effect at the opening of business on the day specified in the public announcement of such change. 
 “Base Rate
Committed Loan” means a Committed Loan that is a Base Rate Loan. 
 “Base Rate Loan” means a Loan that bears
interest based on the Base Rate. 
 “Borrower” has the meaning specified in the introductory paragraph hereto. 

“Borrower Materials” has the meaning specified in Section 6.02. 
 “Borrowing” means a Committed Borrowing or a Swing Line Borrowing, as the context may require. 
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws
of, or are in fact closed in, the state where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate Loan, means any such day on which dealings in Dollar deposits are conducted by and between banks in the
London interbank eurodollar market. 
 “Capital Lease Obligations” means, as to any Person, the obligations of such Person
to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance
sheet of such Person under GAAP and, for the purposes of this Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP. 
 “Cash Collateralize” has the meaning specified in Section 2.03(g). 
 “Cash Management Agreement” means any agreement to provide cash management services, including treasury, depository, overdraft, credit
or debit card, electronic funds transfer, automated clearinghouse and other cash management arrangements made or entered into at any time, or in effect at any time, whether directly or indirectly, and whether as a result of assignment or transfer or
otherwise, between the Borrower or any Subsidiary and any Cash Management Bank. 
  

 7 

 “Cash Management Bank” means a Lender or Affiliate of a Lender that is a party to a Cash
Management Agreement, in its capacity as party to such Cash Management Agreement; provided, however that if such Person ceases to be a Lender or an Affiliate of a Lender, such Person shall no longer be a “Cash Management Bank.”

 “Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or
taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority or (c) the making or issuance of any
request, guideline or directive (whether or not having the force of law) by any Governmental Authority. 
 “Change of
Control” means an event or series of events by which: 
 (a) any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all
securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of more than 35% of the equity
securities of the Borrower entitled to vote for members of the board of directors or equivalent governing body of the Borrower on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire
pursuant to any option right); 
 (b) during any period of 24 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of the Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that
board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election
or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent
governing body; or 
 (c) a “Change of Control” (or any other defined term having a similar purpose) as defined in
any agreement pursuant to which Indebtedness permitted by Section 7.03(h) in a principal amount of at least $50,000,000 may be issued. 
 “Closing Date” means the first date all the conditions precedent in Section 4.01 are satisfied or waived in accordance with Section 10.01. 
 “Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time. 
  

 8 

 “Coinstar Installation Agreements” means any and all contracts, agreements or other
arrangements of the Borrower or any Subsidiary concerning the placement or operation of automated coin counting machines in a supermarket or other retail location of a third party and the payments to such third party in connection therewith.

 “Collateral” means all of the “Collateral” and “Mortgaged Property” referred to in the
Collateral Documents and all of the other property that is or is intended under the terms of the Collateral Documents to be subject to Liens in favor of the Administrative Agent for the benefit of the Secured Parties. 
 “Collateral Documents” means, collectively, the Guarantee and Collateral Agreement, any Mortgages, each of the documents delivered to
the Administrative Agent pursuant to Section 6.12, and each of the other agreements, instruments or documents that creates or purports to create a Lien in favor of the Administrative Agent for the benefit of the Secured Parties.

 “Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to the Borrower pursuant to
Section 2.01, (b) purchase participations in L/C Obligations, and (c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such
Lender’s name on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement. 
 “Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of the same Type and, in the case of Eurodollar Rate
Loans, having the same Interest Period made by each of the Lenders pursuant to Section 2.01. 
 “Committed Loan”
has the meaning specified in Section 2.01. 
 “Committed Loan Notice” means a notice of (a) a Committed
Borrowing, (b) a conversion of Committed Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit
A. 
 “Compliance Certificate” means a certificate substantially in the form of Exhibit D. 
 “Consolidated EBITDA” means, for any period, Consolidated Net Income for such period plus, without duplication and to the extent
reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (a) income tax expense, (b) interest expense, amortization or writeoff of debt discount and debt issuance costs and commissions, discounts
and other fees and charges associated with Indebtedness (including the Loans), (c) depreciation and amortization expense (including, but not limited to, those with respect to any Placement Fee), (d) amortization of intangibles (including,
but not limited to, goodwill) and organization costs, (e) non-cash expenses resulting from the grant of stock options to employees of the Borrower or any of its Subsidiaries pursuant to the required treatment of such stock options under GAAP,
(f) any non-cash expenses or losses (including, without limitation, any non-consolidated, non-cash equity interest losses in joint ventures) and (g) any extraordinary losses under GAAP (including, whether or not otherwise includable as a
separate item in the 

  

 9 

 
statement of such Consolidated Net Income for such period, losses on the sales of assets outside of the ordinary course of business) and minus,
without duplication (a) to the extent included in the statement of such Consolidated Net Income for such period, the sum of (i) interest income, (ii) any extraordinary income or gains under GAAP (including, whether or not otherwise
includable as a separate item in the statement of such Consolidated Net Income for such period, gains on the sales of assets outside of the ordinary course of business) and (iii) income tax credits (to the extent not netted from income tax
expense) and (b) any cash payments made during such period in respect of items described in clause (f) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were reflected as a charge in the statement of
Consolidated Net Income, all as determined on a consolidated basis. For the purposes of calculating Consolidated EBITDA for any period of four consecutive fiscal quarters (each, a “Reference Period”) pursuant to any determination of
the Consolidated Leverage Ratio, (i) if at any time during such Reference Period the Borrower or any Subsidiary shall have made any Material Disposition, the Consolidated EBITDA for such Reference Period shall be reduced by an amount equal to
the Consolidated EBITDA (if positive) attributable to the property that is the subject of such Material Disposition for such Reference Period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such
Reference Period and (ii) notwithstanding anything to the contrary contained in clause (a) of the definition of Consolidated Net Income, if during such Reference Period the Borrower or any Subsidiary shall have made a Material Acquisition,
Consolidated EBITDA for such Reference Period shall be calculated after giving pro forma effect thereto as if such Material Acquisition occurred on the first day of such Reference Period. As used in this definition, “Material
Acquisition” means any acquisition of property or series of related acquisitions of property that (a) constitutes assets comprising all or substantially all of an operating unit of a business or constitutes all or substantially all of the
common stock of a Person and (b) involves the payment of consideration by the Borrower and its Subsidiaries in excess of the Threshold Amount; and “Material Disposition” means any Disposition of property or series of related
Dispositions of property that yields gross proceeds to the Borrower or any of its Subsidiaries in excess of $10,000,000. Notwithstanding that Redbox may otherwise be a Subsidiary and notwithstanding the treatment that may otherwise be given to
Redbox under GAAP, Redbox shall not be considered to be a Subsidiary for purposes of this definition or included in the calculation of Consolidated EBITDA pursuant to this definition. 
 “Consolidated Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBITDA for the period
of the four prior fiscal quarters ending on such date to (b) Consolidated Interest Expense for such period. 
 “Consolidated
Interest Expense” means, for any period, total cash interest expense (including that attributable to Capital Lease Obligations) of the Borrower and its Subsidiaries for such period with respect to all outstanding Indebtedness of the
Borrower and its Subsidiaries (including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing and net costs under Swap Contracts (excluding any costs and payments
necessary in order to terminate any Swap Contract) in respect of interest rates to the extent such net costs are allocable to such period in accordance with GAAP); provided that notwithstanding that Redbox may otherwise be a Subsidiary and
notwithstanding the treatment that may otherwise be given to Redbox under GAAP, Redbox shall not be considered to be a Subsidiary for purposes of this definition or included in the calculation of Consolidated Interest Expense pursuant to this
definition. 
  

 10 

 “Consolidated Leverage Ratio” means, as of any date of determination, the ratio of
(a) Consolidated Total Debt as of such date to (b) Consolidated EBITDA for the period of the four fiscal quarters most recently ended. 
 “Consolidated Net Income” means, for any period, the consolidated net income (or loss) of the Borrower and its Subsidiaries, determined on a consolidated basis in accordance with GAAP; provided that there shall be
excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of the Borrower or is merged into or consolidated with the Borrower or any of its Subsidiaries, (b) the income (or deficit) of any Person
(other than a Subsidiary of the Borrower) in which the Borrower or any of its Subsidiaries has an ownership interest, except to the extent that any such income is actually received by the Borrower or such Subsidiary in the form of cash dividends or
similar cash distributions and (c) the undistributed earnings of any Subsidiary of the Borrower to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of
any Contractual Obligation (other than under any Loan Document) or Law applicable to such Subsidiary; and provided, further, that notwithstanding that Redbox may otherwise be a Subsidiary and notwithstanding the treatment that may
otherwise be given to Redbox under GAAP, Redbox shall not be considered to be a Subsidiary for purposes of this definition or included in the calculation of Consolidated Net Income pursuant to this definition. 
 “Consolidated Total Debt” means, at any date, the aggregate principal amount of all Indebtedness of the Borrower and its Subsidiaries at
such date, determined on a consolidated basis in accordance with GAAP, but in any event, excluding obligations for undrawn amounts under outstanding letters of credit and contingent reimbursement obligations under surety bonds; provided that
notwithstanding that Redbox may otherwise be a Subsidiary and notwithstanding the treatment that may otherwise be given to Redbox under GAAP, Redbox shall not be considered to be a Subsidiary for purposes of this definition or included in the
calculation of Consolidated Total Debt pursuant to this definition. 
 “Contractual Obligation” means, as to any Person, any
provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 
 “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit Extension. 
 “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment
for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors
generally. 
  

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 “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would be an Event of Default. 
 “Default Rate” means
(a) when used with respect to Obligations other than Letter of Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2% per
annum; provided, however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 2% per annum, and
(b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per annum. 
 “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Committed Loans, participations in L/C Obligations or participations in Swing Line Loans required to be funded by it hereunder within
one Business Day of the date required to be funded by it hereunder unless such failure has been cured, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder
within one Business Day of the date when due, unless the subject of a good faith dispute or unless such failure has been cured, or (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding. 
 “Disposition” or “Dispose” means the sale, transfer, or other disposition (including any sale and leaseback
transaction, but excluding any license or operating lease) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated
therewith. 
 “Dollar” and “$” mean lawful money of the United States. 
 “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any political subdivision of the United States.

 “Eligible Assignee” means any Person that meets the requirements to be an assignee under
Section 10.06(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 10.06(b)(iii)). 
 “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises,
licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and
discharges to waste or public systems. 
 “Environmental Liability” means any liability, contingent or otherwise (including
any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, any other Loan Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of
any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous
Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
  

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 “Equity Interests” means, with respect to any Person, all of the shares of capital stock
of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of
the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other
interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are
outstanding on any date of determination. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
and in effect from time to time. 
 “ERISA Affiliate” means any trade or business (whether or not incorporated) under common
control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code). 
 “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Borrower or any ERISA
Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under
Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization within the meaning of Section 4241 of
ERISA; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any
liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate. 
 “Eurodollar Rate” means, for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as
published by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period. If such rate is not available at such time for any reason, then the “Eurodollar Rate” for such
Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate
Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at
approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period. 
  

 13 

 “Eurodollar Rate Loan” means a Committed Loan that bears interest at a rate based on the
Eurodollar Rate. 
 “Event of Default” has the meaning specified in Section 8.01. 
 “Excluded Foreign Subsidiary” means any Foreign Subsidiary in respect of which either (a) the pledge of all of the Equity Interests
of such Subsidiary as Collateral or (b) the guaranteeing by such Subsidiary of the Obligations could reasonably be expected to result in adverse tax consequences to the Borrower. 
 “Excluded Property” means (a) money not in the possession of the Administrative Agent (other than proceeds of any of the
Collateral) and (b) Equity Interests of any Loan Party in a Subsidiary that is not wholly-owned by Loan Parties. 
 “Excluded
Taxes” means, with respect to the Administrative Agent, any Lender, the L/C Issuer or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal
office is located or, in the case of any Lender, in which its applicable Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which the Borrower is located
and (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 10.13), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party hereto (or designates a new Lending Office) or is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply with Section 3.01(e), except to the extent
that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Borrower with respect to such withholding tax pursuant to
Section 3.01(a). 
 “Existing Credit Agreement” means that certain Credit Agreement dated as of July 7,
2004, among the Borrower, JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders, as amended. 
 “Existing
Letters of Credit” means the Letters of Credit issued under the Existing Credit Agreement (if any) described on Schedule 1.01. 
 “Federal Funds Rate” means, for any day, the rate per annum 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 that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions
on the next preceding Business Day as so published on the next succeeding Business 

  

 14 

 
Day, and (b) 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
(rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions as determined by the Administrative Agent. 
 “Fee Letters” means, collectively, the Administrative Agent’s Fee Letter and the Arrangers’ Fee Letter. 
 “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition, the United
States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 
 “Foreign
Subsidiary” means any Subsidiary of the Borrower that is not a Domestic Subsidiary. 
 “FRB” means the Board of
Governors of the Federal Reserve System of the United States. 
 “Fund” means any Person (other than a natural person) that
is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities. 
 “GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied. 
 “Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central
Bank). 
 “GroupEx” means GroupEx Financial Corporation, a Delaware corporation. 
 “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or
indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in
respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of
income or 

  

 15 

 
cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into for the purpose
of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to
obtain any such Lien). The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable outstanding amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a corresponding meaning. 
 “Guarantors” means, collectively, all material wholly-owned Subsidiaries (other than Excluded Foreign Subsidiaries) of the Borrower that
are parties to the Guarantee and Collateral Agreement. 
 “Guarantee and Collateral Agreement” means the Guarantee and
Collateral Agreement made by Borrower and the Guarantors in favor of the Administrative Agent and the Secured Parties, substantially in the form of Exhibit F. 
 “Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos
or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law. 
 “Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as
indebtedness or liabilities in accordance with GAAP: 
 (a) all obligations of such Person for borrowed money and all
obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments; 
 (b) all
direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments; 
 (c) net obligations of such Person under all Swap Contracts; 
 (d) all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the
ordinary course of business); 
 (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or
being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; 
  

 16 

 (f) capital leases and Synthetic Lease Obligations; 
 (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interest in
such Person or any other Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and 
 (h) all Guarantees of such Person in respect of any of the foregoing. 
 For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any general partnership or limited partnership or joint venture
(other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is non-recourse to such Person by contract or operation of law. The amount
of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date. The amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed to be the amount of
Attributable Indebtedness in respect thereof as of such date. 
 “Indemnified Taxes” means Taxes other than Excluded Taxes.

 “Indemnitees” has the meaning specified in Section 10.04(b). 
 “Information” has the meaning specified in Section 10.07. 
 “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the last day of each Interest Period applicable to
such Loan and the Maturity Date; provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also
be Interest Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the last Business Day of each March, June, September and December and the Maturity Date. 
 “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the date such Eurodollar Rate Loan is disbursed or
converted to or continued as a Eurodollar Rate Loan and ending on the date one, two, three or six months thereafter, as selected by the Borrower in its Committed Loan Notice; provided that: 
 (i) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day
unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; 
 (ii) 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 end on
the last Business Day of the calendar month at the end of such Interest Period; and 
 (iii) no Interest Period shall extend
beyond the Maturity Date. 
  

 17 

 “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other
acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other
Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a business unit. For purposes of covenant compliance, the amount of any Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in the value of such Investment. 
 “IP Rights”
has the meaning specified in Section 5.18. 
 “IRS” means the United States Internal Revenue Service.

 “ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the
Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance). 
 “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by the L/C Issuer and the Borrower (or any Subsidiary) or in
favor of the L/C Issuer and relating to such Letter of Credit. 
 “Laws” means, collectively, all international, foreign,
Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or
not having the force of law. 
 “L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable Percentage. 
 “L/C Borrowing” means an extension of
credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a Committed Borrowing. 
 “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the increase of the amount thereof. 
 “L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of
Credit hereunder; provided that another Lender may be the issuer of a particular Letter of Credit under the circumstances set forth in Section 2.02(a)(iii)(B). 
  

 18 

 “L/C Obligations” means, as at any date of determination, the aggregate amount available
to be drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter
of Credit shall be determined in accordance with Section 1.06. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the
operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn. 
 “Lender” has the meaning specified in the introductory paragraph hereto and, as the context requires, includes the Swing Line Lender. 
 “Lender Swap Contracts” means all Swap Contracts made or entered into at any time, or in effect at any time, whether directly or
indirectly, and whether as a result of assignment or transfer or otherwise, between the Borrower or any Subsidiary and any Lender Swap Provider. 
 “Lender Swap Provider” means any Lender or Affiliate of a Lender that is a party to a Swap Contract with the Borrower or any Subsidiary, in its capacity as party to such Swap Contract; provided, however, that
in the event that such Person ceases to be a Lender or an Affiliate of a Lender, such Person shall no longer be a “Lender Swap Provider.” 
 “Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify
the Borrower and the Administrative Agent. 
 “Letter of Credit” means any standby letter of credit issued hereunder and
shall include the Existing Letters of Credit. 
 “Letter of Credit Application” means an application and agreement for the
issuance or amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer. 
 “Letter of Credit Expiration
Date” means the day that is seven days prior to the Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business Day). 
 “Letter of Credit Fee” has the meaning specified in Section 2.03(i). 
 “Letter of Credit Sublimit” means an amount equal to $50,000,000. The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Commitments. 
 “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or
preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other
encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing). 
 “Loan” means an extension of credit by a Lender to the Borrower under Article II in the form of a Committed Loan or a Swing Line Loan. 
  

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 “Loan Documents” means this Agreement, each Note, each Issuer Document, each Fee Letter,
the Guarantee and Collateral Agreement, and each other Collateral Document. 
 “Loan Parties” means, collectively, the
Borrower and each Guarantor. 
 “Material Adverse Effect” means (a) a material adverse change in, or a material adverse
effect upon, the operations, business, assets, properties, condition (financial or otherwise) or prospects of the Borrower or the Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the ability of any Loan Party to
perform its obligations under any Loan Document to which it is a party (other than an adverse change in the financial condition of one or more Guarantors so long as there has been no material adverse effect upon the financial condition of the
Borrower or the Borrower and its Subsidiaries taken as a whole); or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against any Loan Party of any Loan Document to which it is a party. 
 “Material Subsidiary” means a Subsidiary (other than an Excluded Foreign Subsidiary) whose consolidated assets or revenues as of the end
of the most recently ended fiscal year or for such fiscal year, as the case may be, exceeded 10% of the consolidated assets or revenues of the Borrower as of the end of such fiscal year or for such fiscal year, as the case may be. 
 “Maturity Date” means November 20, 2012. 
 “Mortgage” means each of the mortgages and deeds of trust made by any Loan Party in favor of, or for the benefit of, the Administrative Agent for the benefit of the Secured Parties, substantially in a
form which is reasonably acceptable to the Administrative Agent (with such changes thereto as shall be advisable under the law of the jurisdiction in which such mortgage or deed of trust is to be recorded). 
 “Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Borrower or
any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions. 
 “Note” means a promissory note made by the Borrower in favor of a Lender evidencing Loans made by such Lender, substantially in the form of Exhibit C. 
 “Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan
Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising; provided, that
all references to the “Obligations” in the Collateral Documents shall, in addition to the foregoing, also include all present and future indebtedness, liabilities and obligations of the Borrower or any Subsidiary pursuant to any
Lender Swap Contract or any Cash Management Agreement; in each case including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such
Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. 
  

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 “Organization Documents” means, (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation
or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any
agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate
or articles of formation or organization of such entity. 
 “Other Taxes” means 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 under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Loan Document. 
 “Outstanding Amount” means (i) with respect to Committed Loans and Swing Line Loans on any
date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Committed Loans and Swing Line Loans, as the case may be, occurring on such date; and (ii) with respect to any L/C
Obligations on any date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a
result of any reimbursements by the Borrower of Unreimbursed Amounts. 
 “Participant” has the meaning specified in
Section 10.06(d). 
 “PBGC” means the Pension Benefit Guaranty Corporation. 
 “Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a
Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a
multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years. 
 “Permitted Acquisition” means an acquisition of all or substantially all of the assets or of the assets constituting a line of business or greater than 50% of the Equity Interests of any Person where
(a) no Default or Event of Default shall have occurred and be continuing on the date such Permitted Acquisition is consummated, before or after giving effect thereto, (b) the business acquired (or Person acquired) is principally engaged in
the same line of business (or a business reasonably incidental or complementary thereto) as the Borrower, (c) for any acquisition for which the fair market value of the consideration to be paid (including the amount of any Indebtedness or other
obligations or liabilities assumed or acquired, but excluding any Equity Interests of the Borrower issued in connection therewith (other than any Equity Interests that any Loan Party is or, upon the passage of time or the occurrence of any event,
may become obligated to redeem, purchase, retire, defease or otherwise make any payment in respect thereof)) exceeds 

  

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the Threshold Amount, the Borrower shall have demonstrated to the Administrative Agent compliance with the covenants set forth in Section 7.12
(i) on a pro forma basis (calculated for the relevant period set forth in Section 7.12 as of the date of such acquisition as if such acquisition had occurred on the first day of the relevant period), for the most
recent full fiscal quarter immediately preceding such consummation date for which the relevant financial information has been delivered pursuant to Section 6.01 and (ii) on a projected basis, for each of the four fiscal quarters
following the quarter referred to in the preceding clause (i), (d) for any acquisition for which the fair market value of the consideration to be paid (including the amount of any Indebtedness or other obligations or liabilities assumed
or acquired, but excluding any Equity Interests of the Borrower issued in connection therewith (other than any Equity Interests that any Loan Party is or, upon the passage of time or the occurrence of any event, may become obligated to redeem,
purchase, retire, defease or otherwise make any payment in respect thereof)) exceeds the Threshold Amount, the Borrower shall have delivered to the Administrative Agent for itself and for distribution to each Lender copies of the most recent audited
financial statements (or if unavailable, the most recent unaudited financial statements) of the acquired Person together with such other information that the Administrative Agent may reasonably request, (e) the fair market value of the
consideration paid (including the amount of any Indebtedness or other obligations or liabilities assumed or acquired, but excluding any Equity Interests of the Borrower issued in connection therewith (other than any Equity Interests that any Loan
Party is or, upon the passage of time or the occurrence of any event, may become obligated to redeem, purchase, retire, defease or otherwise make any payment in respect thereof)) in connection with such Permitted Acquisition together with that for
other Permitted Acquisitions during the same fiscal year of the Borrower (excluding the acquisition of GroupEx), shall not be in excess of 50% of Consolidated EBITDA for the previous four fiscal quarters (the “Annual Permitted Acquisitions
Amount”); provided that, for any acquisition for which the fair market value of the consideration to be paid (including the amount of any Indebtedness or other obligations or liabilities assumed or acquired, but excluding any Equity
Interests of the Borrower issued in connection therewith (other than any Equity Interests that any Loan Party is or, upon the passage of time or the occurrence of any event, may become obligated to redeem, purchase, retire, defease or otherwise make
any payment in respect thereof)) exceeds the Threshold Amount, a Responsible Officer of the Borrower shall have delivered to the Administrative Agent a Pro Forma Compliance Certificate; and provided, further, that the acquisition of GroupEx
shall be deemed to be a Permitted Acquisition but shall not otherwise be subject to the requirements and limitations of this definition. “Pro Forma Compliance Certificate” means a certificate to the Administrative Agent certifying as to
the accuracy of clauses (a) through (e) above and providing a detailed computation of compliance with clause (c) above. 
 “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
 “Placement Fees” means the upfront fees paid by the Borrower to certain vendors in consideration for the placement of its coin-operated
amusement vending equipment at the retail locations owned or operated by such vendors. 
 “Plan” means any “employee
benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the Borrower or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate. 
  

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 “Platform” has the meaning specified in Section 6.02. 
 “Public Lender” has the meaning specified in Section 6.02. 
 “Redbox” means Redbox Automated Retail, LLC, a Delaware limited liability company. 
 “Register” has the meaning specified in Section 10.06(c). 
 “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees,
agents and advisors of such Person and of such Person’s Affiliates. 
 “Reportable Event” means any of the events set
forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived. 
 “Request for Credit
Extension” means (a) with respect to a Borrowing, conversion or continuation of Committed Loans, a Committed Loan Notice, (b) with respect to an L/C Credit Extension, a Letter of Credit Application, and (c) with respect to a
Swing Line Loan, a Swing Line Loan Notice. 
 “Required Lenders” means, as of any date of determination, Lenders having more
than 50% of the Aggregate Commitments or, if the commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02, Lenders holding in the aggregate
more than 50% of the Total Outstandings (with the aggregate amount of each Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Lender for purposes of this
definition); provided that the Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders. 
 “Responsible Officer” means the chief executive officer, president, chief financial officer, treasurer or assistant treasurer of a Loan
Party. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and
such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 
 “Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other property) with respect to any capital stock or other Equity Interest of the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on account of any return of capital to the
Borrower’s stockholders, partners or members (or the equivalent Person thereof). 
 “SEC” means the Securities and
Exchange Commission, or any Governmental Authority succeeding to any of its principal functions. 
  

 23 

 “Secured Parties” means, collectively, the Administrative Agent, the Lenders, the L/C
Issuer, the Lender Swap Providers, the Cash Management Banks and the other Persons the Obligations owing to which are or are purported to be secured by the Collateral under the terms of the Collateral Documents. 
 “Solvent” and “Solvency” mean, with respect to any Person on any date of determination, that on such date (a) the
fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is not less than the amount that will
be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to
pay such debts and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small
capital, and (e) such Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business. The amount of contingent liabilities at any time shall be computed as the
amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability, taking into account rights of contribution, subrogation and
reimbursement with respect to such contingent liabilities. 
 “Subsidiary” of a Person means a corporation, partnership,
joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower. 
 “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions,
interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any
kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement. 
  

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 “Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance
therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other
readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender). 
 “Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.04. 
 “Swing Line Lender” means Bank of America in its capacity as provider of Swing Line Loans, or any successor swing line lender hereunder. 
 “Swing Line Loan” has the meaning specified in Section 2.04(a). 
 “Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit B. 
 “Swing Line Sublimit” means an amount equal to the lesser of (a) $25,000,000 and (b) the Aggregate Commitments. The Swing Line
Sublimit is part of, and not in addition to, the Aggregate Commitments. 
 “Synthetic Lease Obligation” means the monetary
obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but
which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). 
 “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any Governmental Authority, including any interest,
additions to tax or penalties applicable thereto. 
 “Threshold Amount” means $15,000,000. 
 “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C Obligations. 
 “Type” means, with respect to a Committed Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan. 
 “UCC” means the Uniform Commercial Code as in effect in the State of New York; provided that, if perfection or the effect of
perfection or non-perfection or the priority of any security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial
Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority. 
  

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 “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the
applicable plan year. 
 “United States” and “U.S.” mean the United States of America. 
 “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i). 
 1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such
other Loan Document: 
 (a) The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to
be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise, (i) any definition of
or reference to any agreement, instrument or other document (including any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns,
(iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such
references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified,
refer to such law or regulation as amended, modified or supplemented from time to time, (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities, accounts and contract rights and (viii) any reference to any currency or amount shall be a reference to the lawful currency of the United States or amount of such
currency, as the case may be. 
 (b) In the computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and
including.” 
 (c) Section headings herein and in the other Loan Documents are included for convenience of reference
only and shall not affect the interpretation of this Agreement or any other Loan Document. 
  

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 1.03 Accounting Terms. (a) Generally. All accounting terms not specifically or completely
defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a
consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein. 
 (b) Changes in GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan
Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the 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 Required 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) the
Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP. 
 1.04 Rounding. Any financial ratios required to be
maintained by the Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and
rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number). 
 1.05 Times of Day. Unless
otherwise specified, all references herein to times of day shall be references to Central time (daylight or standard, as applicable). 
 1.06 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided, however,
that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be
the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time. 
 ARTICLE II. 
 THE COMMITMENTS AND CREDIT EXTENSIONS 
 2.01 Committed Loans. Subject to the terms and conditions set forth herein, each Lender severally agrees to make loans (each such loan, a
“Committed Loan”) to the Borrower from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s Commitment; provided,
however, that after giving effect to any Committed Borrowing, (i) the Total Outstandings shall not exceed the Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such
Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding 

  

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Amount of all Swing Line Loans shall not exceed such Lender’s Commitment. Within the limits of each Lender’s Commitment, and subject to the other
terms and conditions hereof, the Borrower may borrow under this Section 2.01, prepay under Section 2.05, and reborrow under this Section 2.01. Committed Loans may be Base Rate Loans or Eurodollar Rate Loans, as
further provided herein. 
 2.02 Borrowings, Conversions and Continuations of Committed Loans. 
 (a) Each Committed Borrowing, each conversion of Committed Loans from one Type to the other, and each continuation of Eurodollar Rate Loans shall be made
upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice must be received by the Administrative Agent not later than 10:00 a.m. (i) three Business Days prior to the requested
date of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate Committed Loans, and (ii) on the requested date of any Borrowing of Base Rate Committed Loans. Each
telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Committed Loan Notice, appropriately completed and signed by a Responsible Officer of the
Borrower. Each Borrowing of, conversion to or continuation of Eurodollar Rate Loans shall be in a principal amount of $2,500,000 or a whole multiple of $500,000 in excess thereof. Except as provided in Sections 2.03(c) and 2.04(c),
each Borrowing of or conversion to Base Rate Committed Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof. Each Committed Loan Notice (whether telephonic or written) shall specify (i) whether the
Borrower is requesting a Committed Borrowing, a conversion of Committed Loans from one Type to the other, or a continuation of Eurodollar Rate Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be
(which shall be a Business Day), (iii) the principal amount of Committed Loans to be borrowed, converted or continued, (iv) the Type of Committed Loans to be borrowed or to which existing Committed Loans are to be converted, and
(v) if applicable, the duration of the Interest Period with respect thereto. If the Borrower fails to specify a Type of Committed Loan in a Committed Loan Notice or if the Borrower fails to give a timely notice requesting a conversion or
continuation, then the applicable Committed Loans shall be made as, or converted to, Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the
applicable Eurodollar Rate Loans. If the Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of one month. 
 (b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly notify each Lender
of the amount of its Applicable Percentage of the applicable Committed Loans, and if no timely notice of a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the details of any automatic
conversion to Base Rate Loans described in the preceding subsection. In the case of a Committed Borrowing, each Lender shall make the amount of its Committed Loan available to the Administrative Agent in immediately available funds at the
Administrative Agent’s Office not later than 12:00 noon on the Business Day specified in the applicable Committed Loan Notice. Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if such Borrowing is the
initial Credit Extension, Section 4.01), the Administrative Agent shall make all 

  

 28 

 
funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on
the books of Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Borrower; provided,
however, that if, on the date the Committed Loan Notice with respect to such Borrowing is given by the Borrower, there are L/C Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to the payment in full
of any such L/C Borrowings, and second, shall be made available to the Borrower as provided above. 
 (c) Except as otherwise provided
herein, a Eurodollar Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurodollar Rate Loan. During the existence of an Event of Default, no Loans may be requested as, converted to or continued as Eurodollar
Rate Loans without the consent of the Required Lenders. 
 (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of
the interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of such interest rate. At any time that Base Rate Loans are outstanding, the Administrative Agent shall notify the Borrower and the Lenders of any
change in Bank of America’s prime rate used in determining the Base Rate promptly following the public announcement of such change. 
 (e) After giving effect to all Committed Borrowings, all conversions of Committed Loans from one Type to the other, and all continuations of Committed Loans as the same Type, there shall not be more than 10 Interest Periods in effect with
respect to Committed Loans. 
 2.03 Letters of Credit. 
 (a) The Letter of Credit Commitment. 
 (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the Lenders set forth in this Section 2.03, (1) from time to time on any
Business Day during the period from the Closing Date until the Letter of Credit Expiration Date, to issue Letters of Credit for the account of the Borrower or its Subsidiaries, and to amend or extend Letters of Credit previously issued by it, in
accordance with subsection (b) below, and (2) to honor drawings under the Letters of Credit; and (B) the Lenders severally agree to participate in Letters of Credit issued for the account of the Borrower or its Subsidiaries and any
drawings thereunder; provided that after giving effect to any L/C Credit Extension with respect to any Letter of Credit, (x) the Total Outstandings shall not exceed the Aggregate Commitments, (y) the aggregate Outstanding Amount of
the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall
not exceed such Lender’s Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit. Each request by the Borrower for the issuance or amendment of a Letter of Credit shall be deemed to
be a representation by the Borrower that the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the preceding sentence. Within the foregoing limits, and subject to the terms and conditions hereof, the
Borrower’s ability to obtain 

  

 29 

 
Letters of Credit shall be fully revolving, and accordingly the Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of
Credit that have expired or that have been drawn upon and reimbursed. All Existing Letters of Credit shall be deemed to have been issued pursuant hereto, and from and after the Closing Date shall be subject to and governed by the terms and
conditions hereof. 
 (ii) The L/C Issuer shall not issue any Letter of Credit, if: 
 (A) subject to Section 2.03(b)(iii), the expiry date of such requested Letter of Credit would occur more than twelve months
after the date of issuance or last extension, unless the Required Lenders have approved such expiry date; or 
 (B) the expiry
date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all the Lenders have approved such expiry date. 
 (iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit if: 
 (A) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any Law applicable to the L/C Issuer or any request or
directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon the L/C Issuer with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or
shall impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the L/C Issuer in good faith deems material to it; 
 (B) the issuance of such Letter of Credit would violate one or more policies of the L/C Issuer applicable to letters of credit generally;
provided that another Lender reasonably acceptable to the Administrative Agent may, in its sole discretion, agree to issue such Letter of Credit subject to the other terms and conditions of this Section 2.03; 
 (C) except as otherwise agreed by the Administrative Agent and the L/C Issuer, such Letter of Credit is in an initial stated amount less
than $50,000; 
 (D) such Letter of Credit is to be denominated in a currency other than Dollars; 
 (E) such Letter of Credit contains any provisions for automatic reinstatement of the stated amount after any drawing thereunder; or

  

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 (F) a default of any Lender’s obligations to fund under Section 2.03(c)
exists or any Lender is at such time a Defaulting Lender hereunder, unless the L/C Issuer has entered into satisfactory arrangements with the Borrower or such Lender to eliminate the L/C Issuer’s risk with respect to such Lender. 
 (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be permitted at such time to issue such Letter of
Credit in its amended form under the terms hereof. 
 (v) The L/C Issuer shall be under no obligation to amend any Letter of
Credit if (A) the L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such
Letter of Credit. 
 (vi) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it
and the documents associated therewith, and the L/C Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in Article IX with respect to any acts taken or omissions suffered by the L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used in Article IX included the L/C Issuer
with respect to such acts or omissions, and (B) as additionally provided herein with respect to the L/C Issuer. 
 (b) Procedures for
Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit. 
 (i) Each Letter of Credit shall be
issued or amended, as the case may be, upon the request of the Borrower delivered to the L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer
of the Borrower. Such Letter of Credit Application must be received by the L/C Issuer and the Administrative Agent not later than 10:00 a.m. at least two Business Days (or such later date and time as the Administrative Agent and the L/C Issuer may
agree in a particular instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the case may be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall
specify in form and detail satisfactory to the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and
address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder;
(G) the purpose and nature of the requested Letter of Credit; and (H) such other matters as the L/C Issuer may reasonably require. In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature of the proposed amendment;
and (D) such other matters as the L/C Issuer may reasonably require. Additionally, the Borrower shall furnish to the L/C Issuer and the Administrative Agent such other documents and information pertaining to such requested Letter of Credit
issuance or amendment, including any Issuer Documents, as the L/C Issuer or the Administrative Agent may reasonably require. 
  

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 (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from the Borrower and, if not, the L/C Issuer will provide the Administrative Agent with a copy
thereof. Unless the L/C Issuer has received written notice from any Lender, the Administrative Agent or any Loan Party, at least one Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or
more applicable conditions contained in Article IV shall not then be satisfied, then, subject to the terms and conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the Borrower (or the
applicable Subsidiary) or enter into the applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s usual and customary business practices. Immediately upon the issuance of each Letter of Credit, each Lender
shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Lender’s Applicable Percentage times the
amount of such Letter of Credit. 
 (iii) If the Borrower so requests in any applicable Letter of Credit Application, the L/C
Issuer shall issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that (A) any such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent
any such extension at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in
each such twelve-month period to be agreed upon at the time such Letter of Credit is issued and (B) the ultimate expiry date shall not extend beyond the Letter of Credit Expiration Date. Unless otherwise directed by the L/C Issuer, the Borrower
shall not be required to make a specific request to the L/C Issuer for any such extension. Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit the
extension of such Letter of Credit at any time to an expiry date not later than the Letter of Credit Expiration Date; provided, however, that the L/C Issuer shall not permit any such extension if (A) the L/C Issuer has determined
that it would not be permitted, or would have no obligation, at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of
Section 2.03(a) or otherwise), or (B) it has received notice (which may be by telephone or in writing) on or before the day that is seven Business Days before the Non-Extension Notice Date (1) from the Administrative Agent that
the Required Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in Section 4.02 is not then satisfied, and in
each such case directing the L/C Issuer not to permit such extension. 
 (iv) Promptly after its delivery of any Letter of
Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C Issuer will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or
amendment. 
  

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 (c) Drawings and Reimbursements; Funding of Participations. 
 (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the L/C Issuer shall
notify the Borrower and the Administrative Agent thereof. Not later than 1:00 p.m. on the date of any payment by the L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the Borrower shall reimburse the L/C Issuer
through the Administrative Agent in an amount equal to the amount of such drawing. If the Borrower fails to so reimburse the L/C Issuer by such time, the Administrative Agent shall promptly notify each Lender of the Honor Date, the amount of the
unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such Lender’s Applicable Percentage thereof. In such event, the Borrower shall be deemed to have requested a Committed Borrowing of Base Rate Loans to be
disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.02 for the principal amount of Base Rate Loans, but subject to the amount of the unutilized
portion of the Aggregate Commitments and the conditions set forth in Section 4.02 (other than the delivery of a Committed Loan Notice). Any notice given by the L/C Issuer or the Administrative Agent pursuant to this
Section 2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice. 
 (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make funds available to the Administrative Agent for the
account of the L/C Issuer at the Administrative Agent’s Office in an amount equal to its Applicable Percentage of the Unreimbursed Amount not later than 12:00 noon on the Business Day specified in such notice by the Administrative Agent,
whereupon, subject to the provisions of Section 2.03(c)(iii), each Lender that so makes funds available shall be deemed to have made a Base Rate Committed Loan to the Borrower in such amount. The Administrative Agent shall remit the
funds so received to the L/C Issuer. 
 (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Committed Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, the Borrower shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the Default Rate. In such event, each Lender’s payment to the Administrative Agent for the
account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation
under this Section 2.03. 
  

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 (iv) Until each Lender funds its Committed Loan or L/C Advance pursuant to this
Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall be solely for the account of the L/C Issuer. 
 (v) Each Lender’s obligation to make Committed Loans or L/C Advances to reimburse the L/C Issuer for amounts drawn under Letters of
Credit, as contemplated by this Section 2.03(c), shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may
have against the L/C Issuer, the Borrower or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Lender’s obligation to make Committed Loans pursuant to this Section 2.03(c) is subject to the conditions set forth in Section 4.02 (other than delivery by the Borrower of a
Committed Loan Notice). No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Borrower to reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer under any Letter of Credit, together with
interest as provided herein. 
 (vi) If any Lender fails to make available to the Administrative Agent for the account of the
L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii), the L/C Issuer shall be entitled to recover from such Lender
(acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the L/C Issuer at a rate per annum equal to
the greater of the Federal Funds Rate and a rate determined by the L/C Issuer in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the L/C Issuer in
connection with the foregoing. If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan included in the relevant Committed Borrowing or L/C Advance in respect of the
relevant L/C Borrowing, as the case may be. A certificate of the L/C Issuer submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (vi) shall be conclusive absent manifest error.

 (d) Repayment of Participations. 
 (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and has received from any Lender such Lender’s L/C Advance in respect of such payment in accordance with
Section 2.03(c), if the Administrative Agent receives for the account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from the Borrower or otherwise, including proceeds of
Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its Applicable Percentage thereof in the same funds as those received by the Administrative Agent. 
 (ii) If any payment received by the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(i) is
required to be returned under any of the circumstances described in Section 10.05 (including pursuant to any settlement entered 

  

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into by the L/C Issuer in its discretion), each Lender shall pay to the Administrative Agent for the account of the L/C Issuer its Applicable Percentage
thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of
the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement. 
 (e)
Obligations Absolute. The obligation of the Borrower to reimburse the L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly
in accordance with the terms of this Agreement under all circumstances, including the following: 
 (i) any lack of validity
or enforceability of such Letter of Credit, this Agreement, or any other Loan Document; 
 (ii) the existence of any claim,
counterclaim, setoff, defense or other right that the Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be
acting), the L/C Issuer or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction; 
 (iii) any draft, demand, certificate or other document presented under such 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; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit; 
 (iv) any payment by the L/C Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictly
comply with the terms of such Letter of Credit; or any payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Law; or 
 (v) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that
might otherwise constitute a defense available to, or a discharge of, the Borrower or any Subsidiary. 
 The Borrower shall promptly examine
a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with the Borrower’s instructions or other irregularity, the Borrower will immediately notify the L/C Issuer. The
Borrower shall be conclusively deemed to have waived any such claim against the L/C Issuer and its correspondents unless such notice is given as aforesaid; provided that such noncompliance is not the result of gross negligence or willful
misconduct on the part of the L/C Issuer. 
  

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 (f) Role of L/C Issuer. Each Lender and the Borrower agree that, in paying any drawing
under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or
accuracy of any such document or the authority of the Person executing or delivering any such document. None of the L/C Issuer, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the
L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence
of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document. The Borrower hereby assumes all risks of the acts
or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights and remedies as
it may have against the beneficiary or transferee at law or under any other agreement. None of the L/C Issuer, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall
be liable or responsible for any of the matters described in clauses (i) through (v) of Section 2.03(e); provided, however, that anything in such clauses to the contrary notwithstanding, the Borrower may have a
claim against the L/C Issuer, and the L/C Issuer may be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused by
the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any
notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a 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. 
 (g) Cash
Collateral. Upon the request of the Administrative Agent, (i) if the L/C Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the Letter
of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, the Borrower shall, in each case, immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations. Sections 2.05 and 8.02(c) set forth
certain additional requirements to deliver Cash Collateral hereunder. For purposes of this Section 2.03, Section 2.05 and Section 8.02(c), “Cash Collateralize” means to pledge and deposit with or
deliver to the Administrative Agent, for the benefit of the L/C Issuer and the Secured Parties, as collateral for the L/C Obligations, cash or deposit account balances pursuant to documentation in form and substance satisfactory to the
Administrative Agent and the L/C Issuer (which documents are hereby consented to by the Lenders). Derivatives of such term have corresponding meanings. The Borrower hereby grants to the Administrative Agent, for the benefit of the L/C Issuer and the
Secured Parties, a security interest in all such cash, deposit accounts and all balances therein and all proceeds of the foregoing. Cash Collateral shall be maintained in blocked, and to the extent permitted by law, interest bearing, deposit
accounts at Bank of America. 
  

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 (h) Applicability of ISP. Unless otherwise expressly agreed by the L/C Issuer and the
Borrower when a Letter of Credit is issued (including any such agreement applicable to an Existing Letter of Credit), the rules of the ISP shall apply to each Letter of Credit. 
 (i) Letter of Credit Fees. The Borrower shall pay to the Administrative Agent for the account of each Lender in accordance with its Applicable
Percentage a Letter of Credit fee (the “Letter of Credit Fee”) equal to the Applicable Rate times the daily amount available to be drawn under such Letter of Credit. For purposes of computing the daily amount available to be
drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06. Letter of Credit Fees shall be (i) due and payable on the tenth Business Day after the end of each March,
June, September and December, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand and (ii) computed on a quarterly basis in arrears. If there
is any change in the Applicable Rate during any quarter, the daily amount available to be drawn under each Letter of Credit shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable
Rate was in effect. Notwithstanding anything to the contrary contained herein, upon the request of the Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the Default Rate. 
 (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The Borrower shall pay directly to the L/C Issuer for its
own account a fronting fee with respect to each Letter of Credit, at the rate per annum specified in the Administrative Agent’s Fee Letter, computed on the daily amount available to be drawn under such Letter of Credit on a quarterly basis in
arrears. Such fronting fee shall be due and payable on the tenth Business Day after the end of each March, June, September and December in respect of the most recently-ended quarterly period (or portion thereof, in the case of the first payment),
commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. For purposes of computing the daily amount available to be drawn under any Letter of Credit,
the amount of such Letter of Credit shall be determined in accordance with Section 1.06. In addition, the Borrower shall pay directly to the L/C Issuer for its own account the customary issuance, presentation, amendment and other
processing fees, and other standard costs and charges, of the L/C Issuer relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are nonrefundable.

 (k) Conflict with Issuer Documents. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the
terms hereof shall control. 
 (l) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of Credit issued or
outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, the Borrower shall be obligated to reimburse the L/C Issuer hereunder for any and all drawings under such Letter of Credit. The Borrower hereby
acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries. 
  

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 2.04 Swing Line Loans. 
 (a) The Swing Line. Subject to the terms and conditions set forth herein, the Swing Line Lender agrees, in reliance upon the agreements of the
other Lenders set forth in this Section 2.04, to make loans (each such loan, a “Swing Line Loan”) to the Borrower from time to time on any Business Day during the Availability Period in an aggregate amount not to exceed
at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with the Applicable Percentage of the Outstanding Amount of Committed Loans and L/C Obligations of the Lender acting
as Swing Line Lender, may exceed the amount of such Lender’s Commitment; provided, however, that after giving effect to any Swing Line Loan, (i) the Total Outstandings shall not exceed the Aggregate Commitments, and
(ii) the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and provided, further, that the Borrower shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan. Within
the foregoing limits, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.04, prepay under Section 2.05, and reborrow under this Section 2.04. Each Swing Line Loan
shall be a Base Rate Loan. Immediately upon the making of a Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an
amount equal to the product of such Lender’s Applicable Percentage times the amount of such Swing Line Loan. 
 (b) Borrowing
Procedures. Each Swing Line Borrowing shall be made upon the Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by telephone. Each such notice must be received by the Swing Line Lender
and the Administrative Agent not later than 12:00 noon on the requested borrowing date, and shall specify (i) the amount to be borrowed, which shall be a minimum of $100,000, and (ii) the requested borrowing date, which shall be a Business
Day. Each such telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower. Promptly
after receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan
Notice and, if not, the Swing Line Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof. Unless the Swing Line Lender has received notice (by telephone or in writing) from the Administrative Agent
(including at the request of any Lender) prior to 1:00 p.m. on the date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the first proviso to
the first sentence of Section 2.04(a), or (B) that one or more of the applicable conditions specified in Article IV is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not
later than 2:00 p.m. on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the Borrower at its office by crediting the account of the Borrower on the books of the Swing Line Lender in
immediately available funds. 
  

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 (c) Refinancing of Swing Line Loans. 
 (i) The Swing Line Lender at any time in its sole and absolute discretion may request, on behalf of the Borrower (which hereby irrevocably
authorizes the Swing Line Lender to so request on its behalf), that each Lender make a Base Rate Committed Loan in an amount equal to such Lender’s Applicable Percentage of the amount of Swing Line Loans then outstanding. Such request shall be
made in writing (which written request shall be deemed to be a Committed Loan Notice for purposes hereof) and in accordance with the requirements of Section 2.02, without regard to the minimum and multiples specified therein for the
principal amount of Base Rate Loans, but subject to the unutilized portion of the Aggregate Commitments and the conditions set forth in Section 4.02. The Swing Line Lender shall furnish the Borrower with a copy of the applicable
Committed Loan Notice promptly after delivering such notice to the Administrative Agent. Each Lender shall make an amount equal to its Applicable Percentage of the amount specified in such Committed Loan Notice available to the Administrative Agent
in immediately available funds for the account of the Swing Line Lender at the Administrative Agent’s Office not later than 12:00 noon on the day specified in such Committed Loan Notice, whereupon, subject to Section 2.04(c)(ii),
each Lender that so makes funds available shall be deemed to have made a Base Rate Committed Loan to the Borrower in such amount. The Administrative Agent shall remit the funds so received to the Swing Line Lender. 
 (ii) If for any reason any Swing Line Loan cannot be refinanced by such a Committed Borrowing in accordance with
Section 2.04(c)(i), the request for Base Rate Committed Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request by the Swing Line Lender that each of the Lenders fund its risk participation in the
relevant Swing Line Loan and each Lender’s payment to the Administrative Agent for the account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed payment in respect of such participation. 
 (iii) If any Lender fails to make available to the Administrative Agent for the account of the Swing Line Lender any amount required to be
paid by such Lender pursuant to the foregoing provisions of this Section 2.04(c) by the time specified in Section 2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting through the
Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swing Line Lender at a rate per annum equal to the greater of
the Federal Funds Rate and a rate determined by the Swing Line Lender in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Swing Line Lender in connection
with the foregoing. If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan included in the relevant Committed Borrowing or funded participation in the relevant
Swing Line Loan, as the case may be. A certificate of the Swing Line Lender submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error.

  

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 (iv) Each Lender’s obligation to make Committed Loans or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section 2.04(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which
such Lender may have against the Swing Line Lender, the Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any
of the foregoing; provided, however, that each Lender’s obligation to make Committed Loans pursuant to this Section 2.04(c) is subject to the conditions set forth in Section 4.02. No such funding of risk
participations shall relieve or otherwise impair the obligation of the Borrower to repay Swing Line Loans, together with interest as provided herein. 
 (d) Repayment of Participations. 
 (i) At any time after any Lender has purchased and
funded a risk participation in a Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing Line Lender will distribute to such Lender its Applicable Percentage thereof in the same funds as those
received by the Swing Line Lender. 
 (ii) If any payment received by the Swing Line Lender in respect of principal or
interest on any Swing Line Loan is required to be returned by the Swing Line Lender under any of the circumstances described in Section 10.05 (including pursuant to any settlement entered into by the Swing Line Lender in its discretion),
each Lender shall pay to the Swing Line Lender its Applicable Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the Federal
Funds Rate. The Administrative Agent will make such demand upon the request of the Swing Line Lender. The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

 (e) Interest for Account of Swing Line Lender. The Swing Line Lender shall be responsible for invoicing the Borrower for interest
on the Swing Line Loans. Until each Lender funds its Base Rate Committed Loan or risk participation pursuant to this Section 2.04 to refinance such Lender’s Applicable Percentage of any Swing Line Loan, interest in respect of such
Applicable Percentage shall be solely for the account of the Swing Line Lender. 
 (f) Payments Directly to Swing Line Lender. The
Borrower shall make all payments of principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender. 
 2.05
Prepayments. 
 (a) The Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay
Committed Loans in whole or in part without premium or penalty; provided that (i) such notice must be received by the Administrative Agent not later than 10:00 a.m. (A) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Committed Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in a principal amount of $2,500,000 or a whole multiple of 

  

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$500,000 in excess thereof; and (iii) any prepayment of Base Rate Committed Loans shall be in a principal amount of $500,000 or a whole multiple of
$100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding. Each such notice shall specify the date and amount of such prepayment and the Type(s) of Committed Loans to be prepaid and, if Eurodollar
Rate Loans are to be prepaid, the Interest Period(s) of such Loans. The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender’s Applicable Percentage of such prepayment. If
such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by
all accrued interest on the amount prepaid, together with any additional amounts required pursuant to Section 3.05. Each such prepayment shall be applied to the Committed Loans of the Lenders in accordance with their respective
Applicable Percentages. 
 (b) The Borrower may, upon notice to the Swing Line Lender (with a copy to the Administrative Agent), at any time
or from time to time, voluntarily prepay Swing Line Loans in whole or in part without premium or penalty; provided that (i) such notice must be received by the Swing Line Lender and the Administrative Agent not later than 12:00 noon on
the date of the prepayment, and (ii) any such prepayment shall be in a minimum principal amount of $100,000. Each such notice shall specify the date and amount of such prepayment. If such notice is given by the Borrower, the Borrower shall make
such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein. 
 (c) If for any
reason the Total Outstandings at any time exceed the Aggregate Commitments then in effect, the Borrower shall immediately prepay Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided,
however, that the Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.05(c) unless after the prepayment in full of the Loans the Total Outstandings exceed the Aggregate Commitments
then in effect. 
 2.06 Termination or Reduction of Commitments. The Borrower may, upon notice to the Administrative Agent, terminate
the Aggregate Commitments, or from time to time permanently reduce the Aggregate Commitments; provided that (i) any such notice shall be received by the Administrative Agent not later than 10:00 a.m. five Business Days prior to the date
of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in excess thereof, (iii) the Borrower shall not terminate or reduce the Aggregate Commitments
if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Outstandings would exceed the Aggregate Commitments, and (iv) if, after giving effect to any reduction of the Aggregate Commitments, the Letter of Credit
Sublimit or the Swing Line Sublimit exceeds the amount of the Aggregate Commitments, such Sublimit shall be automatically reduced by the amount of such excess. The Administrative Agent will promptly notify the Lenders of any such notice of
termination or reduction of the Aggregate Commitments. Any reduction of the Aggregate Commitments shall be applied to the Commitment of each Lender according to its Applicable Percentage. All fees accrued until the effective date of any termination
of the Aggregate Commitments shall be paid on the effective date of such termination. 
  

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 2.07 Repayment of Loans. 
 (a) The Borrower shall repay to the Lenders on the Maturity Date the aggregate principal amount of Committed Loans outstanding on such date. 

(b) The Borrower shall repay each Swing Line Loan on the earlier to occur of (i) the first Business Days after written demand for such repayment
is made by the Swing Line Lender and (ii) the Maturity Date. 
 2.08 Interest. 
 (a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate; (ii) each Base Rate Committed Loan shall bear interest on the outstanding principal amount thereof from
the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate; and (iii) each Swing Line Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the Base Rate plus the Applicable Rate. 
 (b)    (i) If any amount of principal of any
Loan is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws. 
 (ii) If any amount (other than principal of any Loan)
payable by the Borrower under any Loan Document is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then upon the request of the Required Lenders, such amount shall
thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws. 
 (iii) Upon the request of the Required Lenders, while any Event of Default exists, the Borrower shall pay interest on the principal amount
of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws. 
 (iv) Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

 (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as
may be specified herein. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law. 
  

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 2.09 Fees. In addition to certain fees described in subsections (i) and (j) of
Section 2.03: 
 (a) Commitment Fee. The Borrower shall pay to the Administrative Agent for the account of each
Lender in accordance with its Applicable Percentage, a commitment fee equal to the Applicable Rate times the actual daily amount by which the Aggregate Commitments exceed the sum of (i) the Outstanding Amount of Committed Loans and
(ii) the Outstanding Amount of L/C Obligations. The commitment fee shall accrue at all times during the Availability Period, including at any time during which one or more of the conditions in Article IV is not met, and shall be due and
payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the Closing Date, and on the last day of the Availability Period. The commitment fee shall be
calculated quarterly in arrears, and if there is any change in the Applicable Rate during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect. 
 (b) Other Fees. (i) The Borrower shall pay to the Arrangers and the Administrative Agent
for their own respective accounts fees in the amounts and at the times specified in the Fee Letters. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 
 (ii) The Borrower shall pay to the Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times
so specified. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 
 2.10 Computation of
Interest and Fees; Retroactive Adjustments of Applicable Rate. (a) All computations of interest for Base Rate Loans when the Base Rate is determined by Bank of America’s “prime rate” shall be made on the basis of a year of 365 or
366 days, as the case may be, and actual days elapsed. All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if
computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that
any Loan that is repaid on the same day on which it is made shall, subject to Section 2.12(a), bear interest for one day. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding
for all purposes, absent manifest error. 
 (b) If, as a result of any restatement of or other adjustment to the financial statements of the
Borrower or for any other reason, the Borrower or the Lenders determine that (i) the Consolidated Leverage Ratio as calculated by the Borrower as of any applicable date was inaccurate and (ii) a proper calculation of the Consolidated
Leverage Ratio would have resulted in higher pricing for such period, the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent for the account of the applicable Lenders, promptly on demand by the
Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of the United States, automatically and without further action by the Administrative Agent, any
Lender or the L/C Issuer), an amount equal to the excess of the amount of interest and fees that should have been 

  

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paid for such period over the amount of interest and fees actually paid for such period. This paragraph shall not limit the rights of the Administrative
Agent, any Lender or the L/C Issuer, as the case may be, under Section 2.03(c)(iii), 2.03(i) or 2.08(b) or under Article VIII. The Borrower’s obligations under this paragraph shall survive the termination of the
Aggregate Commitments and the repayment of all other Obligations hereunder. 
 2.11 Evidence of Debt. 
 (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative
Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrower and the
interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of any
conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest
error. Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender’s Loans in addition to such accounts
or records. Each Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto. 
 (b) In addition to the accounts and records referred to in subsection (a), each Lender and the Administrative Agent shall maintain in accordance with its
usual practice accounts or records evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swing Line Loans. In the event of any conflict between the accounts and records maintained by the Administrative Agent
and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. 
 2.12 Payments Generally; Administrative Agent’s Clawback. 
 (a) General. All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments
by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not later than 1:00
p.m. on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such
Lender’s Lending Office. All payments received by the Administrative Agent after 1:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. If any payment to be made by
the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be. 
  

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 (b)(i) Funding by Lenders; Presumption by Administrative Agent. Unless the Administrative Agent
shall have received notice from a Lender prior to the proposed date of any Committed Borrowing of Eurodollar Rate Loans (or, in the case of any Committed Borrowing of Base Rate Loans, prior to 11:00 a.m. on the date of such Committed Borrowing) that
such Lender will not make available to the Administrative Agent such Lender’s share of such Committed Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with
Section 2.02 (or, in the case of a Committed Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with and at the time required by Section 2.02) and may, in reliance upon such assumption,
make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Committed Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree
to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date
of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation, plus any administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to
Base Rate Loans. If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the
Borrower for such period. If such Lender pays its share of the applicable Committed Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s Committed Loan included in such Committed Borrowing. Any payment
by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent. 
 (ii) Payments by Borrower; Presumptions by Administrative Agent. Unless the Administrative Agent shall have received notice from
the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the L/C Issuer hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has
made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the L/C Issuer, as the case may be, the amount due. In such event, if the Borrower has not in fact made such payment, then
each of the Lenders or the L/C Issuer, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the L/C Issuer, in immediately available funds with interest thereon,
for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation. 
 A notice of the Administrative Agent to any Lender or the Borrower with respect to any
amount owing under this subsection (b) shall be conclusive, absent manifest error. 
  

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 (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the Administrative
Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Credit
Extension set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest. 
 (d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make Committed Loans, to fund participations in Letters of Credit
and Swing Line Loans and to make payments pursuant to Section 10.04(c) are several and not joint. The failure of any Lender to make any Committed Loan, to fund any such participation or to make any payment under
Section 10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Committed
Loan, to purchase its participation or to make its payment under Section 10.04(c). 
 (e) Funding Source. Nothing herein
shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

 2.13 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain
payment in respect of any principal of or interest on any of the Committed Loans made by it, or the participations in L/C Obligations or in Swing Line Loans held by it resulting in such Lender’s receiving payment of a proportion of the
aggregate amount of such Committed Loans or participations and accrued interest thereon greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the
Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Committed Loans and subparticipations in L/C Obligations and Swing Line Loans of the other Lenders, or make such other adjustments as shall be
equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Committed Loans and other amounts owing them, provided
that: 
 (i) if any such participations or subparticipations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and 
 (ii) the provisions of this Section shall not be construed to apply to (x) any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Committed Loans or subparticipations in L/C Obligations or Swing Line
Loans to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this Section shall apply). 
  

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 The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under
applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor
of the Borrower in the amount of such participation. 
 2.14 Increase in Commitments. 
 (a) Request for Increase. Provided that no Default or Event of Default exists and is continuing, upon notice to the Administrative Agent (which
shall promptly notify the Lenders), the Borrower may from time to time request an increase in the Aggregate Commitments by an amount (for all such requests) not exceeding $50,000,000; provided that (i) any such request for an increase
shall be in a minimum amount of $5,000,000, (ii) the Borrower may make a maximum of three such requests and (iii) any Lender may decline any such request in its sole discretion. At the time of sending such notice, the Borrower (in
consultation with the Administrative Agent) shall specify the time period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of delivery of such notice to the Lenders). 

(b) Lender Elections to Increase. Each Lender shall notify the Administrative Agent within such time period whether or not it agrees to
increase its Commitment and, if so, whether by an amount equal to, greater than, or less than its Applicable Percentage of such requested increase. Any Lender not responding within such time period shall be deemed to have declined to increase its
Commitment. 
 (c) Notification by Administrative Agent; Additional Lenders. The Administrative Agent shall notify the Borrower and
each Lender of the Lenders’ responses to each request made hereunder. To achieve the full amount of a requested increase and subject to the approval of the Administrative Agent, the L/C Issuer and the Swing Line Lender (which approvals shall
not be unreasonably withheld), the Borrower may also invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement in form and substance satisfactory to the Administrative Agent and its counsel. 
 (d) Effective Date and Allocations. If the Aggregate Commitments are increased in accordance with this Section, the Administrative Agent and the
Borrower shall determine the effective date (the “Increase Effective Date”) and the final allocation of such increase. The Administrative Agent shall promptly notify the Borrower and the Lenders of the final allocation of such
increase and the Increase Effective Date. 
 (e) Conditions to Effectiveness of Increase. As a condition precedent to such increase,
the Borrower shall deliver to the Administrative Agent a certificate of each Loan Party dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of such Loan Party (i) certifying and
attaching the resolutions adopted by such Loan Party approving or consenting to such increase, and (ii) in the case of the Borrower, certifying that, before and after giving effect to such increase, (A) the representations and warranties
contained in Article V and the other Loan Documents are true and correct on and as of the Increase Effective Date, except to the extent that such representations and warranties 

  

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specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this
Section 2.14, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01, and (B) no Default or Event of Default exists and is continuing. The Borrower shall prepay any Committed Loans outstanding on the Increase Effective Date (and pay any additional amounts required
pursuant to Section 3.05) to the extent necessary to keep the outstanding Committed Loans ratable with any revised Applicable Percentages arising from any nonratable increase in the Commitments under this Section. 
 (f) Conflicting Provisions. This Section shall supersede any provisions in Section 2.13 or 10.01 to the contrary. 

ARTICLE III. 
 TAXES, YIELD
PROTECTION AND ILLEGALITY 
 3.01 Taxes. 
 (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower hereunder or under any other Loan Document shall be made free and clear of and without reduction or
withholding for any Indemnified Taxes or Other Taxes, provided that if the Borrower shall be required by applicable law to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, Lender or L/C Issuer, as the case may be, receives an amount equal to the
sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with applicable
law. 
 (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of subsection (a) above, the Borrower shall
timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 
 (c) Indemnification by the
Borrower. The Borrower shall indemnify the Administrative Agent, each Lender and the L/C Issuer, within 10 days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes
imposed or asserted on or attributable to amounts payable under this Section) paid by the Administrative Agent, such Lender or the L/C Issuer, as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender or
the L/C Issuer (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be conclusive absent manifest error. 
  

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 (d) Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes or Other
Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting
such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 
 (e) Status of Lenders. Any
Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent, such properly
completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the Administrative Agent,
shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements. 
 Without limiting the generality of the foregoing, in the event that the Borrower
is resident for tax purposes in the United States, any Foreign Lender shall deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the request of the Borrower or the Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable:

 (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty
to which the United States is a party, 
 (ii) duly completed copies of Internal Revenue Service Form W-8ECI, 
 (iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code,
(x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning of section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN, or 
 (iv) any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United States Federal
withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower to determine the withholding or deduction required to be made. 
  

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 (f) Treatment of Certain Refunds. If the Administrative Agent, any Lender or the L/C Issuer
determines that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section, it shall pay to the Borrower an
amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of
the Administrative Agent, such Lender or the L/C Issuer, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that the Borrower, upon the request
of the Administrative Agent, such Lender or the L/C Issuer, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender
or the L/C Issuer in the event the Administrative Agent, such Lender or the L/C Issuer is required to repay such refund to such Governmental Authority. This subsection shall not be construed to require the Administrative Agent, any Lender or the L/C
Issuer to make available its tax returns (or any other information relating to its taxes that it deems confidential) to the Borrower or any other Person. 
 3.02 Illegality. If any Lender determines in good faith that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to
make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take
deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Committed
Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist. Upon receipt of such notice, the Borrower shall, upon
demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such Lender may lawfully
continue to maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate Loans. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the
amount so prepaid or converted. 
 3.03 Inability to Determine Rates. If the Required Lenders determine in good faith that for any
reason in connection with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount and Interest
Period of such Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for determining the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan , or (c) the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.
Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, the Borrower may
revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or, failing that, will be deemed to have converted such request into a request for a Committed Borrowing of Base Rate Loans in the amount specified
therein. 
  

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 3.04 Increased Costs; Reserves on Eurodollar Rate Loans. 
 (a) Increased Costs Generally. If any Change in Law shall: 
 (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against
assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement contemplated by Section 3.04(e)) or the L/C Issuer; 
 (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any
participation in a Letter of Credit or any Eurodollar Rate Loan made by it, or change the basis of taxation of payments to such Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes covered by
Section 3.01 and the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender or the L/C Issuer); or 
 (iii) impose on any Lender or the L/C Issuer or the London interbank market any other condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by such Lender or any Letter of Credit or
participation therein; 
 and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Rate
Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue
any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or the L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or the L/C Issuer, the Borrower will
pay to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered. 
 (b) Capital Requirements. If any Lender or the L/C Issuer determines in good faith that any Change in Law affecting such Lender or the L/C Issuer
or any Lending Office of such Lender or such Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s
capital or on the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit held by, such Lender,
or the Letters of Credit issued by the L/C Issuer, to a level below that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have achieved but for such Change in Law (taking into consideration
such Lender’s or the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or the L/C Issuer, as
the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction suffered. 
  

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 (c) Certificates for Reimbursement. A certificate of a Lender or the L/C Issuer setting forth the
amount or amounts necessary to compensate such Lender or the L/C Issuer or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest
error. The Borrower shall pay such Lender or the L/C Issuer, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof. 
 (d) Delay in Requests. Failure or delay on the part of any Lender or the L/C Issuer to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such
Lender’s or the L/C Issuer’s right to demand such compensation, provided that the Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant to the foregoing provisions of this Section for any increased costs
incurred or reductions suffered more than nine months prior to the date that such Lender or the L/C Issuer, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or
the L/C Issuer’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period
of retroactive effect thereof). 
 (e) Reserves on Eurodollar Rate Loans. The Borrower shall pay to each Lender, as long as such
Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the unpaid principal
amount of each Eurodollar Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date
on which interest is payable on such Loan, provided the Borrower shall have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to give notice
10 days prior to the relevant Interest Payment Date, such additional interest shall be due and payable 10 days from receipt of such notice. 
 3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of: 
 (a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate Loan on a day
other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); 
 (b) any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower; or

 (c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the Interest Period therefor as a result of a request by
the Borrower pursuant to Section 10.13; 
 including any loss of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained. 
  

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 For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each
Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank eurodollar market for a comparable amount and for a comparable period,
whether or not such Eurodollar Rate Loan was in fact so funded. 
 3.06 Mitigation Obligations; Replacement of Lenders. 
 (a) Designation of a Different Lending Office. If any Lender requests compensation under Section 3.04, or the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such Lender shall use reasonable
efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and
(ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment. 
 (b) Replacement of Lenders. If any Lender requests compensation under
Section 3.04, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, the Borrower may replace such Lender in accordance
with Section 10.13. 
 3.07 Survival. All of the Borrower’s obligations under this Article III shall survive
termination of the Aggregate Commitments and repayment of all other Obligations hereunder. 
 ARTICLE IV. 
 CONDITIONS PRECEDENT TO CREDIT EXTENSIONS 
 4.01 Conditions of Initial Credit Extension. The obligation of the L/C Issuer and each Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following conditions precedent: 
 (a) The Administrative Agent’s receipt of the following, each of which shall be originals or telecopies (followed promptly by originals) unless
otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and
substance satisfactory to the Administrative Agent and each of the Lenders: 
 (i) executed counterparts of this Agreement;

 (ii) a Note executed by the Borrower in favor of each Lender requesting a Note; 
  

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 (iii) the Collateral Documents, executed by the Loan Parties party thereto in appropriate
form for recording, where necessary, together with: 
 (A) such Lien searches as the Administrative Agent shall have
requested, and such termination statements or other documents as may be necessary to confirm that the Collateral is subject to no Liens in favor of any Persons (other than the Liens securing the Obligations and the Liens permitted by
Section 7.01); and 
 (B) evidence that all other actions necessary or, in the reasonable opinion of the
Administrative Agent, desirable to perfect and protect such Liens and the Administrative Agent’s ability to preserve and protect its interests in and access to the Collateral, have been taken; 
 (iv) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each
Loan Party as the Administrative Agent may request evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which
such Loan Party is a party; 
 (v) such documents and certifications as the Administrative Agent may reasonably request to
evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct
of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; 
 (vi) favorable opinions of: (A) Perkins Coie LLP, counsel to the Loan Parties, and (B) such local counsel opinions relating to the Loan Parties and Collateral as the Administrative Agent may reasonably
request, each addressed to the Administrative Agent and each Lender, as to such matters concerning the Loan Parties and the Loan Documents as the Administrative Agent may reasonably request; 
 (vii) a certificate of a Responsible Officer of the Borrower as to the matters set forth below in this clause (vii): 
 (A) certifying as to the Solvency of the Borrower and its Subsidiaries taken as a whole before and after giving effect to the transactions
occurring on the Closing Date; 
 (B) attaching a Compliance Certificate as of the end of the most recent fiscal quarter of
the Borrower for which financial statements have been filed with the SEC; 
 (C) certifying that the representations and
warranties of the Borrower and the other Loan Parties contained in Article V or in any other Loan Document are true and correct as of the Closing Date, both before and after giving effect to the transactions occurring on the Closing Date; and

  

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 (D) certifying that, both before and after giving effect to the transactions occurring on
the Closing Date, no Default or Event of Default shall have occurred and be continuing; 
 (viii) evidence that all insurance
required to be maintained pursuant to the Loan Documents has been obtained and is in effect; 
 (ix) evidence that the
Existing Credit Agreement has been or concurrently with the Closing Date is being terminated and all Liens securing obligations under the Existing Credit Agreement have been or concurrently with the Closing Date are being released; and 

(x) such other assurances, certificates, documents, consents or opinions as the Administrative Agent, the L/C Issuer, the Swing Line
Lender or the Required Lenders reasonably may require. 
 (b) no order, decree, judgment, ruling or injunction of a court of competent
jurisdiction, domestic or foreign, shall exist which restrains the consummation of the transactions contemplated by this Agreement, and (ii) no statute, rule or regulation shall have been enacted by any Governmental Authority which prohibits or
makes unlawful the consummation of the transactions contemplated by this Agreement; 
 (c)(i) the conditions specified in Sections
4.02(a) and (b) have been satisfied; and (ii) there has been no event or circumstance since the date of the Audited Financial Statements that has had or could be reasonably expected to have, either individually or in the
aggregate, a Material Adverse Effect; 
 (d) that there shall not exist any action, suit, investigation, litigation or proceeding pending or
threatened in any court or before any arbitrator or governmental authority that have or could reasonably be expected to have a Material Adverse Effect or that seeks to prevent, prohibit or limit any of the transactions contemplated by this
Agreement; 
 (e) Any fees required to be paid on or before the Closing Date shall have been paid; and 
 (f) Unless waived by the Administrative Agent, the Borrower shall have paid all fees, charges and disbursements of counsel to the Administrative Agent
(directly to such counsel if requested by the Administrative Agent) to the extent invoiced prior to or on the Closing Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such
fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent). 

Without limiting the generality of the provisions of the last paragraph of Section 9.03, for purposes of determining compliance with the
conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto. 
  

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 4.02 Conditions to all Credit Extensions. The obligation of each Lender to honor any Request for
Credit Extension (other than a Committed Loan Notice requesting only a conversion of Committed Loans to the other Type, or a continuation of Eurodollar Rate Loans) is subject to the following conditions precedent: 
 (a) The representations and warranties of the Borrower and each other Loan Party contained in Article V or any other Loan Document, or which are
contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct on and as of the date of such Credit Extension, except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section 4.02, the representations and warranties contained in subsections (a) and (b) of
Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01. 
 (b) No Default shall exist, or would result from such proposed Credit Extension or from the application of the proceeds thereof. 
 (c) The Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender shall have received a Request for Credit Extension in accordance with the requirements hereof. 
 Each Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Committed Loans to the other Type or a continuation
of Eurodollar Rate Loans) submitted by the Borrower shall be deemed to be a representation and warranty that the conditions specified in Sections 4.02(a) and (b) have been satisfied on and as of the date of the applicable Credit
Extension. 
 ARTICLE V. 
 REPRESENTATIONS AND WARRANTIES 
 The Borrower represents and warrants to the Administrative Agent and the Lenders that:

 5.01 Existence, Qualification and Power. Each Loan Party and each Subsidiary thereof (a) is duly organized or formed, validly
existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to
(i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, and (c) is duly qualified and is licensed and, as applicable, in good
standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license; except in each case referred to in clause (b)(i) or (c), to the extent that
failure to do so could not reasonably be expected to have a Material Adverse Effect. 
  

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 5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan Party
of each Loan Document to which such Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents;
(b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any Contractual Obligation to which such Person is a party or affecting such Person or the
properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) violate any Law. 
 5.03 Governmental Authorization; Other Consents. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with,
any Governmental Authority or any other Person is necessary or required in connection with (a) the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document, (b) the grant by
any Loan Party of the Liens granted by it pursuant to the Collateral Documents, or (c) the exercise by the Administrative Agent or any Lender of its rights under the Loan Documents or the remedies in respect of the Collateral pursuant to the
Collateral Documents. 
 5.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered hereunder, will
have been, duly executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable
against each Loan Party that is party thereto in accordance with its terms. 
 5.05 Financial Statements; No Material Adverse Effect. 

 (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein; (ii) fairly present the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations for the period covered thereby in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (iii) show all material indebtedness and other liabilities, direct or contingent, of the Borrower and its Subsidiaries as of the date
thereof, including liabilities for taxes, material commitments and Indebtedness. 
 (b) The unaudited consolidated balance sheet of the
Borrower and its Subsidiaries dated September 30, 2007, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for the fiscal quarter ended on that date (i) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of
operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments. 
  

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 (c) Since the dates of the Audited Financial Statements, there has been no event or circumstance, either
individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect. 
 5.06 Litigation.
There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrower after due and diligent investigation, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or
against the Borrower or any of its Subsidiaries or against any of their properties or revenues that (a) purport to affect this Agreement or any other Loan Document, or any of the transactions contemplated hereby, or (b) except as
specifically disclosed in Schedule 5.06, either individually or in the aggregate could reasonably be expected to have a Material Adverse Effect. 
 5.07 No Default. Neither any Loan Party nor any Subsidiary thereof is in default under or with respect to any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. No Event of Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document. 
 5.08 Ownership of Property; Liens. Each of the Borrower and its Subsidiaries has good record and marketable title in fee simple to, or valid
leasehold interests in, all real property necessary or used in the ordinary conduct of its business, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The
property of the Borrower and its Subsidiaries is subject to no Liens, other than Liens permitted by Section 7.01. As of the Closing Date, neither the Borrower nor any of its Subsidiaries owns any real property having a fair market value
of at least $1,000,000. 
 5.09 Environmental Compliance. The Borrower and its Subsidiaries conduct in the ordinary course of business
a review of the effect of existing Environmental Laws and claims alleging potential liability or responsibility for violation of any Environmental Law on their respective businesses, operations and properties, and as a result thereof the Borrower
has reasonably concluded that, except as specifically disclosed in Schedule 5.09, such Environmental Laws and claims could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 5.10 Insurance. The properties of the Borrower and its Subsidiaries are insured with financially sound and reputable insurance companies not
Affiliates of the Borrower, in such amounts (after giving effect to any self-insurance compatible with the following standards), with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and
owning similar properties in localities where the Borrower or the applicable Subsidiary operates. 
 5.11 Taxes. The Borrower and its
Subsidiaries have filed all Federal, state and other material tax returns and reports required to be filed, and have paid all Federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or
their properties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP. There is
no proposed tax assessment against the Borrower or any Subsidiary that would, if made, have a Material Adverse Effect. Neither any Loan Party nor any Subsidiary thereof is party to any tax sharing agreement. 
  

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 5.12 ERISA Compliance. 
 (a) Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state Laws, except for such
noncompliance as could not reasonably be expected to have a Material Adverse Effect. Each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a
letter is currently being processed by the IRS with respect thereto and, to the best knowledge of the Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification. The Borrower and each ERISA Affiliate have made all
required contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.

 (b) There are no pending or, to the best knowledge of the Borrower, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect. 
 (c)(i) Except as could not reasonably be expected to have a Material
Adverse Effect: no ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur,
any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the
Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of ERISA. 
 5.13
Subsidiaries; Equity Interests. As of the Closing Date, the Borrower has no Subsidiaries other than those specifically disclosed in Part (a) of Schedule 5.13, and all of the outstanding Equity Interests in such Subsidiaries have been
validly issued, are fully paid and nonassessable and are owned directly or indirectly by the Borrower in the amounts specified on Part (a) of Schedule 5.13 free and clear of all Liens except those created under the Collateral Documents.
As of the Closing Date, the Borrower has no equity investments in any other corporation or entity other than those specifically disclosed in Part(b) of Schedule 5.13. Set forth on Part (c) of Schedule 5.13 is a complete and
accurate list of all Loan Parties, showing as of the Closing Date (as to each Loan Party) the jurisdiction of its incorporation, the address of its principal place of business and its U.S. taxpayer identification number or, in the case of any
non-U.S. Loan Party that does not have a U.S. taxpayer identification number, its unique identification number issued to it by the jurisdiction of its incorporation. As of the Closing Date, the Borrower has no Material Subsidiaries that are not Loan
Parties. 
  

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 5.14 Margin Regulations; Investment Company Act. 
 (a) The Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying margin
stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock. Following the application of the proceeds of each Borrowing or drawing under each Letter of Credit, not more
than 25% of the value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a consolidated basis) subject to the provisions of Section 7.01 or Section 7.05 or subject to any restriction
contained in any agreement or instrument between the Borrower and any Lender or any Affiliate of any Lender relating to Indebtedness and within the scope of Section 8.01(e) will be margin stock. 
 (b) None of the Borrower, any Person Controlling the Borrower, or any Subsidiary is or is required to be registered as an “investment company”
under the Investment Company Act of 1940. 
 5.15 Disclosure. The Borrower has disclosed to the Administrative Agent and the Lenders
all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material
Adverse Effect. No report, financial statement, certificate or other information furnished in writing by or on behalf of any Loan Party to the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the
negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information, the Borrower represents only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the time. 
 5.16 Compliance with Laws. Each Loan Party and
each Subsidiary thereof is in compliance in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of
Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have
a Material Adverse Effect. 
 5.17 Taxpayer Identification Number. The Borrower’s true and correct U.S. taxpayer identification
number is set forth on Schedule 10.02. 
 5.18 Intellectual Property; Licenses, Etc. The Borrower and its Subsidiaries
own, or possess the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other intellectual property rights (collectively, “IP Rights”) that are reasonably
necessary for the operation of their respective businesses, without conflict with the rights of any other Person, except to the extent that any such conflict could not reasonably be expected to have a Material Adverse Effect. To the best knowledge
of the 

  

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Borrower, no slogan or other advertising device, product, process, method, substance, part or other material now employed, or now contemplated to be
employed, by the Borrower or any Subsidiary infringes upon any rights held by any other Person. Except as specifically disclosed in Schedule 5.18, no claim or litigation regarding any of the foregoing is pending or, to the best knowledge of
the Borrower, threatened, which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
 5.19 Solvency. Each Loan Party is, and after giving effect to the incurrence of all Indebtedness and obligations being incurred in connection herewith and will be and will continue to be, individually and together with its
Subsidiaries on a consolidated basis, Solvent. 
 5.20 Automatic Coin Counting Machines. Substantially all of the automated coin
counting machines owned by the Borrower and its Subsidiaries are located either at the Borrower’s or its Subsidiaries’ places of business or in retail or other locations installed pursuant to a valid Coinstar Installation Agreement. Such
automated coin counting machines are not subject to any Lien in favor of the owner of the retail location where such machine is operated, nor are they subject to any Lien in favor of the counterparty to the applicable Coinstar Installation
Agreement; provided, however the coins in such machines may be subject to a Lien in favor of such counterparty to the extent a payment voucher has been issued in respect of such coins in accordance with the terms of such Coinstar
Installation Agreement. 
 5.21 Collateral Documents. The provisions of the Collateral Documents are effective to create in favor of
the Administrative Agent for the benefit of the Secured Parties a legal, valid and enforceable first priority Lien (subject to Liens permitted by Section 7.01) on all right, title and interest of the respective Loan Parties in the
Collateral described therein. Except for filings completed prior to or concurrently with the Closing Date and as contemplated hereby and by the Collateral Documents, no filing or other action will be necessary to perfect or protect such Liens.

 5.22 GroupEx Acquisition. Prior to the Closing Date, the Borrower has delivered to the Administrative Agent and the Lenders
a true and correct copy of the acquisition agreement, all schedules and exhibits thereto and all amendments and modifications thereof as of the Closing Date, relating to the acquisition of GroupEx. 
 ARTICLE VI. 
 AFFIRMATIVE COVENANTS

 So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied,
or any Letter of Credit shall remain outstanding, the Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, and 6.03) cause each Subsidiary to: 
 6.01 Financial Statements. Deliver to the Administrative Agent and each Lender, in form and detail satisfactory to the Administrative Agent and
the Required Lenders: 
 (a) as soon as available, but in any event within 90 days after the end of each fiscal year of the Borrower, a
consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, 

  

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shareholders’ equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all
in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of an independent certified public accountant of nationally recognized standing reasonably acceptable to the Required Lenders, which report
and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit; and

 (b) as soon as available, but in any event within 45 days after the end of each of the first three fiscal quarters of each fiscal year of
the Borrower, a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal quarter, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal quarter
and for the portion of the Borrower’s fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year,
all in reasonable detail, certified by the chief executive officer, chief financial officer, treasurer or controller of the Borrower as fairly presenting the financial condition, results of operations, shareholders’ equity and cash flows of the
Borrower and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes. 
 As to any
information contained in materials furnished pursuant to Section 6.02(e), the Borrower shall not be separately required to furnish such information under clause (a) or (b) above, but the foregoing shall not be in derogation of
the obligation of the Borrower to furnish the information and materials described in clauses (a) and (b) above at the times specified therein. 
 6.02 Certificates; Other Information. Deliver to the Administrative Agent and each Lender, in form and detail satisfactory to the Administrative Agent and the Required Lenders: 
 (a) [Intentionally Omitted]; 
 (b)
concurrently with the delivery of the financial statements referred to in Sections 6.01(a) and (b), a duly completed Compliance Certificate signed by the chief executive officer, chief financial officer, treasurer or controller of
the Borrower; 
 (c) as soon as available, and in any event no later than 45 days after the end of each fiscal year of the Borrower, a
detailed consolidated budget for the following fiscal year (including a projected consolidated balance sheet of the Borrower and its Subsidiaries as of the end of the following fiscal year, the related consolidated statements of projected cash flow,
projected changes in financial position and projected income and a description of the underlying assumptions applicable thereto), and, as soon as available, significant revisions, if any of such budget and projections with respect to such fiscal
year, which budget and projections shall in each case be accompanied by a certificate of a Responsible Officer stating that such budget and projections are based on reasonable estimates, information and assumptions and that such Responsible Officer
has no reason to believe that such budget and projections are incorrect or misleading in any material respect; 
  

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 (d) promptly after any request by the Administrative Agent or any Lender, copies of any management
letters submitted to the board of directors (or the audit committee of the board of directors) of the Borrower by independent accountants in connection with the accounts or books of the Borrower or any Subsidiary, or any audit of any of them;

 (e) promptly after the same are available, copies of each annual report, proxy or financial statement or other report or communication
sent to the stockholders of the Borrower, and copies of all annual, regular, periodic and special reports and registration statements which the Borrower may file or be required to file with the SEC under Section 13 or 15(d) of the Securities
Exchange Act of 1934, and not otherwise required to be delivered to the Administrative Agent pursuant hereto; 
 (f) promptly after the
furnishing thereof, copies of any statement or report furnished to any holder of debt securities of any Loan Party or any Subsidiary thereof pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be
furnished to the Lenders pursuant to Section 6.01 or any other clause of this Section 6.02; 
 (g) promptly after
receipt thereof by any Loan Party or any Subsidiary thereof, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or
other inquiry by such agency regarding financial or other operational results of any Loan Party or any Subsidiary thereof; and 
 (h)
promptly, such additional information regarding the business, financial or corporate affairs of the Borrower or any Subsidiary, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender may from time to time
reasonably request. 
 Documents required to be delivered pursuant to Section 6.01(a) or (b) or
Section 6.02(e) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at the website address listed on Schedule 10.02; or (ii) on which such documents are posted on the Borrower’s behalf on an
Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that: (i) the Borrower shall
deliver paper copies of such documents to the Administrative Agent or any Lender that requests the Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and
(ii) the Borrower shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft
copies) of such documents. Notwithstanding anything contained herein, in every instance the Borrower shall be required to provide paper copies of the Compliance Certificates required by Section 6.02(b) to the Administrative Agent. Except
for such Compliance Certificates, the Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower
with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents. 
  

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 The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will make
available to the Lenders and the L/C Issuer materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another similar
electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Borrower or its
Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons’ securities. The Borrower hereby agrees that: (w) all Borrower
Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by
marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative Agent, the Arrangers, the L/C Issuer and the Lenders to treat such Borrower Materials as not containing any material non-public
information with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as
set forth in Section 10.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor;” and (z) the Administrative Agent and
the Arrangers shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor.” 
 6.03 Notices. Promptly notify the Administrative Agent and each Lender: 
 (a) of the occurrence of any Event of Default; 
 (b) of any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect, including (i) breach or non-performance of, or any default under, a Contractual Obligation of the Borrower or any Subsidiary;
(ii) any dispute, litigation, investigation, proceeding or suspension between the Borrower or any Subsidiary and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding
affecting the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws; 
 (c) of the occurrence of any ERISA
Event that could reasonably be expected to result in a Material Adverse Effect; and 
 (d) of any material change in accounting policies or
financial reporting practices by the Borrower or any Subsidiary, including any determination by the Borrower referred to in Section 2.10(b). 
 Each notice pursuant to this Section 6.03 shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action
the Borrower has taken and proposes to take with respect thereto. Each notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached.

  

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 6.04 Payment of Obligations. Unless the same are being contested in good faith by appropriate
proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by the Borrower or such Subsidiary, pay and discharge as the same shall become due and payable, all its obligations and liabilities, including
(a) all tax liabilities, assessments and governmental charges or levies upon it or its properties or assets; (b) all lawful claims which, if unpaid, would by law become a Lien upon its property; and (c) all Indebtedness, as and when
due and payable, but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness. 
 6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted by
Section 7.04 or 7.05; (b) take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do
so could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a
Material Adverse Effect. 
 6.06 Maintenance of Properties. (a) Maintain, preserve and protect all of its material properties and
equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; (b) make all
necessary repairs thereto and renewals and replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) use the standard of care typical in the industry in the operation and
maintenance of its facilities. 
 6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance companies not
Affiliates of the Borrower, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts (after giving
effect to any self-insurance compatible with the following standards) as are customarily carried under similar circumstances by such other Persons and providing for not less than 30 days’ prior notice to the Administrative Agent of termination,
lapse or cancellation of such insurance. 
 6.08 Compliance with Laws. Comply in all material respects with the requirements of all
Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted; or (b) the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect. 
 6.09 Books and Records. (a) Maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and
matters involving the assets and business of the Borrower or such Subsidiary, as the case may be; and (b) maintain such books of record and account in material conformity with all applicable requirements of any Governmental Authority having
regulatory jurisdiction over the Borrower or such Subsidiary, as the case may be. 
  

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 6.10 Inspection Rights. Permit representatives and independent contractors of the Administrative
Agent and each Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors,
officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided,
however, that when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal
business hours and without advance notice. 
 6.11 Use of Proceeds. Use the proceeds of the Credit Extensions for working capital,
capital expenditures, to finance the acquisition of GroupEx, other Permitted Acquisitions and other Investments permitted by Section 7.02, to refinance existing Indebtedness, and for other general corporate purposes not in contravention
of any Law or of any Loan Document. 
 6.12 Covenant to Guarantee Obligations and Give Security. (a) Upon the formation or acquisition
by any Loan Party of any new direct or indirect wholly-owned Subsidiary (other than an Excluded Foreign Subsidiary) that is a Material Subsidiary, or upon any existing Subsidiary (other than an Excluded Foreign Subsidiary) becoming a Material
Subsidiary, then the Borrower shall, at the Borrower’s expense: 
 (i) within 30 days after such formation, acquisition
or occurrence, furnish to the Administrative Agent a description of the real and personal properties of such Subsidiary, in detail satisfactory to the Administrative Agent; 
 (ii) within 30 days after such formation, acquisition or occurrence, cause such Subsidiary and each direct and indirect parent of such
Subsidiary (if it has not already done so) to duly execute and deliver to the Administrative Agent an amendment or joinder to the Guarantee and Collateral Agreement, such Mortgages, other security and pledge agreements, and such other documents as
Administrative Agent deems necessary for such Subsidiary or such parent, as the case may be, to Guarantee the other Loan Parties’ obligations under the Loan Documents, and as may be required, to secure payment of all the Obligations of such
Subsidiary or such parent, as the case may be, under the Loan Documents and to constitute Liens on all real property owned by such Subsidiary having a fair market value of at least $1,000,000 and all personal property (other than Excluded Property)
owned by such Subsidiary; 
 (iii) within 30 days after such formation, acquisition or occurrence, cause such Subsidiary and
each direct and indirect parent of such Subsidiary (if it has not already done so) to take whatever action (including the recording of mortgages, the filing of UCC financing statements, the giving of notices and the endorsement of notices on title
documents) may be necessary or advisable in the opinion of the Administrative Agent to 

  

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vest in the Administrative Agent (or in any representative of the Administrative Agent designated by it) valid and subsisting Liens on the properties
purported to be subject to the Mortgages and security and pledge agreements delivered pursuant to this Section 6.12, enforceable against all third parties in accordance with their terms; and 
 (iv) within 30 days after such formation, acquisition or occurrence, deliver to the Administrative Agent, upon the request of the
Administrative Agent in its sole discretion, a signed copy of a favorable opinion, addressed to the Administrative Agent and the other Secured Parties, of counsel for the Loan Parties acceptable to the Administrative Agent as to the matters
contained in clauses (ii) and (iii) above, and as to such other matters as the Administrative Agent may reasonably request. 
 (b) Upon the formation or acquisition of any new direct or indirect wholly-owned Excluded Foreign Subsidiary by any Loan Party (other than a Loan Party that is an Excluded Foreign Subsidiary), then the Borrower shall, at the Borrower’s
expense, within 30 days after such formation or acquisition, cause each direct and indirect parent of such Excluded Foreign Subsidiary (if it has not already done so) to duly execute and deliver to the Administrative Agent an amendment to the
Guarantee and Collateral Agreement to grant to the Administrative Agent, for the benefit of the Secured Parties, a security interest in the Equity Interests of such new Excluded Foreign Subsidiary that is owned by any such Loan Party (provided that
in no event shall more than 65% of the total outstanding voting Equity Interests of any such new Excluded Foreign Subsidiary be so pledged). 
 (c) Except to the extent covered by Section 6.12(a) or (b), upon the acquisition of any real property having a fair market value of at least $1,000,000 or any personal property (other than Excluded Property) by any Loan Party,
if such property, in the judgment of the Administrative Agent, shall not already be subject to a Lien in favor of the Administrative Agent for the benefit of the Secured Parties, then the Borrower shall, at the Borrower’s expense: 

(i) concurrently with the delivery of the first Compliance Certificate delivered after such acquisition, furnish to the Administrative
Agent a description of the property so acquired in detail satisfactory to the Administrative Agent; and 
 (ii) within 30 days
after request by the Administrative Agent, cause the applicable Loan Party to duly execute and deliver to the Administrative Agent an amendment to the Guarantee and Collateral Agreement, Mortgages and such other documents as Administrative Agent
deems necessary to secure payment of all the Obligations of such Loan Party under the Loan Documents and to constitute Liens on such property. 
 6.13 Further Assurances. Promptly upon request by the Administrative Agent, or any Lender through the Administrative Agent, (a) correct any material defect or error that may be discovered in any Loan Document or in the
execution, acknowledgment, filing or recordation thereof, and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances, opinions and other
instruments as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably require from time to time in order to (i) carry out more effectively the purposes of the 

  

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Loan Documents, (ii) to the fullest extent permitted by applicable law, subject any Loan Party’s or any of its Subsidiaries’ properties,
assets, rights or interests to the Liens intended to be covered by any of the Collateral Documents, (iii) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be
created thereunder and (iv) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under any Loan
Document or under any other instrument executed in connection with any Loan Document to which any Loan Party or any of its wholly-owned Subsidiaries is or is to be a party, and cause each of its wholly-owned Subsidiaries to do so. 
 ARTICLE VII. 
 NEGATIVE COVENANTS

 So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied,
or any Letter of Credit shall remain outstanding, the Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly: 
 7.01 Liens. Create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than the following: 
 (a) Liens pursuant to any Loan Document; 
 (b) Liens existing on the date hereof and listed on Schedule 7.01 and any renewals or extensions thereof, provided that (i) the property covered thereby is not expanded, (ii) the principal amount secured or benefited
thereby is not increased except as contemplated by Section 7.03(b), and (iii) any renewal or extension of the obligations secured or benefited thereby is permitted by Section 7.03(b); 
 (c) Liens for taxes not yet due or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with
respect thereto are maintained on the books of the applicable Person in accordance with GAAP; 
 (d) carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 30 days or which are being contested in good faith and by appropriate proceedings
diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person; 
 (e) pledges or
deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA; 
 (f) deposits to secure the performance of bids, trade contracts, leases (subject to the limitations of Section 7.01(i) and
Section 7.03(e), statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business; 
  

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 (g) easements, rights-of-way, restrictions and other similar encumbrances affecting real property which,
in the aggregate, are not substantial in amount, and which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person; 

(h) Liens securing judgments for the payment of money not constituting an Event of Default under Section 8.01(h); 
 (i) Liens securing Indebtedness permitted under Section 7.03(e); provided that (i) such Liens do not at any time encumber any
property other than the property financed by such Indebtedness and the proceeds thereof and (ii) the Indebtedness secured thereby does not exceed the cost (including associated costs of acquisition) or fair market value, whichever is lower, of
the property being acquired on the date of acquisition; 
 (j) Liens on property or assets acquired pursuant to a Permitted Acquisition or a
permitted Investment, or on property or assets of a Subsidiary of the Borrower in existence at the time such Subsidiary is acquired pursuant to a Permitted Acquisition, and extensions and renewals thereof; provided that (i) any
Indebtedness that is secured by such Liens is not prohibited under Section 7.03(g) and (ii) such Liens are not incurred in connection with, or in contemplation or anticipation of, such Permitted Acquisition or permitted Investment
and do not attach to any other asset of the Borrower or any of its other Subsidiaries; 
 (k) any interest or title of a lessor under any
lease entered into by the Borrower or any other Subsidiary in the ordinary course of its business and covering only the assets so leased; 
 (l) Liens arising in the ordinary course of business that are not incurred in connection with the borrowing of money or the obtaining of advances or credit; provided, such Liens consist of (i) liens of sellers of good arising
under Article 2 of the UCC or (ii) Liens of banks constituting customary rights of set off; 
 (m) Liens on coins contained in the
automated coin counting machines or other machines owned by the Borrower and its Subsidiaries granted in favor of a counterparty to a Coinstar Installation Agreement to the extent that a payment voucher has been issued in respect of such coins in
accordance with such Coinstar Installation Agreement; 
 (n) Liens in favor of the Borrower or any Guarantor; 
 (n) Liens not otherwise permitted by this Section so long as neither (i) the aggregate outstanding principal amount of the obligations secured
thereby nor (ii) the aggregate fair market value (determined as of the date such Lien is incurred) of the assets subject thereto exceeds (as to the Borrower and all Subsidiaries) $5,000,000 at any one time; 
 (o) Liens granted by any Excluded Foreign Subsidiary securing Indebtedness permitted under Section 7.03(i); and 
 (o) Liens in favor of T-Mobile or VoiceStream Wireless securing the purchase price of inventory; provided that the aggregate outstanding amount of the
obligations secured by such Liens does not exceed $2,000,000 at any time and the Borrower uses commercial reasonable efforts to cause such Liens to cover only the inventory purchased and the proceeds thereof. 
  

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 In the event Redbox becomes a Subsidiary, it shall not be subject to the limitations of this
Section 7.01. 
 7.02 Investments. Make or permit to remain outstanding any Investments, except: 
 (a) Investments held by the Borrower or such Subsidiary in (i) the form of cash equivalents and (ii) any deferred compensation plan of the
Borrower or any Subsidiary in an aggregate amount not to exceed $2,000,000; 
 (b) advances to officers, directors and employees of the
Borrower and Subsidiaries in an aggregate amount not to exceed $500,000 at any time outstanding, for travel, entertainment, relocation and analogous ordinary business purposes; 
 (c) Investments of the Borrower in any Guarantor and Investments of any Guarantor in the Borrower or in another Guarantor; 
 (d) Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the
ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss; 
 (e) Guarantees permitted by Section 7.03; 
 (f) Net Investments in Subsidiaries that are not Guarantors; provided that the aggregate outstanding amount of such Investments made pursuant to this Section 7.02(f), together with, without
duplication, the aggregate amount of the outstanding Indebtedness permitted by clause (iv) of Section 7.03(f) shall not exceed 25% of the Borrower’s total stockholders equity as determined in accordance with GAAP; and
provided, further, that not less than 80% of Consolidated EBITDA shall be generated by the Borrower and Guarantors at all times; 
 (g) Permitted Acquisitions (including any Investments owned by a Person acquired in a Permitted Acquisition); 
 (h) Investments
outstanding on the Closing Date and listed on Schedule 7.02; 
 (i) other Investments by the Borrower or any of its Subsidiaries in an
aggregate amount (valued at cost) not to exceed $25,000,000 at any time outstanding. 
 7.03 Indebtedness. Create, incur, assume or
suffer to exist any Indebtedness, except: 
 (a) Indebtedness under the Loan Documents; 
  

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 (b) Indebtedness (including in respect of Capital Lease Obligations, Synthetic Lease Obligations and
purchase money obligations) outstanding on the date hereof and listed on Schedule 7.03 and any refinancings, refundings, renewals or extensions thereof; provided that (i) the amount of such Indebtedness is not increased at the
time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any
existing commitments unutilized thereunder and (ii) the terms relating to principal amount, amortization, maturity, collateral (if any) and subordination (if any), and other material terms taken as a whole, of any such refinancing, refunding,
renewing or extending Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are no less favorable in any material respect to the Loan Parties or the Lenders than the terms of any agreement or
instrument governing the Indebtedness being refinanced, refunded, renewed or extended and the interest rate applicable to any such refinancing, refunding, renewing or extending Indebtedness does not exceed the then applicable market interest rate;

 (c) Guarantees of the Borrower or any Subsidiary in respect of Indebtedness otherwise permitted hereunder of the Borrower or any
Subsidiary; provided that neither the Borrower nor any Subsidiary may Guarantee the Indebtedness of Redbox; 
 (d) obligations
(contingent or otherwise) of the Borrower or any Subsidiary existing or arising under any Swap Contract, provided that (i) such obligations are (or were) entered into by such Person in the ordinary course of business for the purpose of
directly mitigating risks associated with liabilities, commitments, investments, assets, or property held or reasonably anticipated by such Person, or changes in the value of securities issued by such Person, and not for purposes of speculation; and
(ii) such Swap Contract does not contain any provision exonerating the non-defaulting party from its obligation to make payments on outstanding transactions to the defaulting party; 
 (e) other Indebtedness in respect of Capital Lease Obligations, Synthetic Lease Obligations and purchase money obligations for fixed or capital assets
within the limitations set forth in Section 7.01(i); provided, however, that the aggregate amount of all such Indebtedness at any one time outstanding shall not exceed $25,000,000; 
 (f) Indebtedness of (i) the Borrower to any Subsidiary, (ii) any Guarantor to the Borrower or any other Guarantor, (iii) any Subsidiary
that is not a Guarantor to any other Subsidiary that is not a Guarantor or (iv) any Subsidiary that is not a Guarantor to the Borrower or any Guarantor, provided that the aggregate outstanding amount of the Indebtedness described in this
clause (iv), together with, without duplication, the aggregate outstanding amount of Investments permitted by Section 7.02(f), shall not exceed the amount set forth in Section 7.02(f); 
 (g) Indebtedness of a Subsidiary acquired pursuant to a Permitted Acquisition (or Indebtedness assumed by the Borrower or any of its wholly-owned
Subsidiaries pursuant to a Permitted Acquisition as a result of a merger or consolidation or the acquisition of an asset securing such Indebtedness), so long as (A) such Indebtedness was not incurred in connection with, or in anticipation or
contemplation of, such Permitted Acquisition and (B) the aggregate amount of such Indebtedness acquired or assumed under this clause (g) does not exceed $40,000,000 at any one time outstanding; 
  

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 (h)(i) unsecured Indebtedness of the Borrower in an aggregate principal amount not to exceed
$250,000,000, so long as such Indebtedness matures after the Maturity Date, has a weighted average life to maturity greater than the Obligations, has no covenants or events of default that are materially more restrictive than those set forth in the
Loan Documents and otherwise has terms and conditions reasonably satisfactory to the Administrative Agent, and (ii) the Guarantee obligations of any Subsidiary in respect of such Indebtedness, provided that, if such Indebtedness of the
Borrower is subordinated, such Guarantee obligations are subordinated to the same extent as the obligations of the Borrower in respect of such Indebtedness; and 
 (i) additional unsecured (except as otherwise provided in Section 7.01(o)), Indebtedness of the Borrower or any of its Subsidiaries in an aggregate principal amount (for the Borrower and all Subsidiaries)
not to exceed $20,000,000 at any one time outstanding. 
 In the event Redbox becomes a Subsidiary, it shall not be subject to the
limitations of this Section 7.03. 
 7.04 Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into
another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that, so long as no Default exists or
would otherwise result therefrom: 
 (a) any Subsidiary may merge with (i) the Borrower, provided that the Borrower shall be the
continuing or surviving Person, or (ii) any other Subsidiary, provided that if a Guarantor is a party to such merger, such Guarantor or another Guarantor shall be the continuing or surviving Person; 
 (b) any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) (i) to the Borrower or
(ii) to any other Subsidiary; provided that if a Guarantor is a party to such transaction, such Guarantor or another Guarantor shall be the transferee; 
 (c) any Investment permitted by Section 7.02 may be structured as a merger, consolidation or amalgamation; and 
 (d) any Subsidiary that has Disposed of all or substantially all of its assets in accordance with the provisions of this Agreement may be dissolved. 
 7.05 Dispositions. Make any Disposition or enter into any agreement to make any Disposition, except: 
 (a) Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in the ordinary course of business; 
 (b) Dispositions of inventory in the ordinary course of business; 
 (c) Dispositions of equipment or real property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of such Disposition
are reasonably promptly applied to the purchase price of such replacement property; 
  

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 (d) Dispositions of property by any Subsidiary (i) to the Borrower or (ii) to any other
Subsidiary; provided that if a Guarantor is a party to such transaction, a Guarantor shall be the transferee; 
 (e) Dispositions
permitted by Section 7.04 and Dispositions constituting Investments that are permitted by Section 7.02; 
 (f)
Dispositions for fair market value of Investments in Subsidiaries that are not Guarantors and of Investments in minority interests in other Persons; and 
 (g) Dispositions for fair market value by the Borrower and its Subsidiaries not otherwise permitted under this Section 7.05; provided that (i) at the time of such Disposition, no Default shall
exist or would result from such Disposition and (ii) the aggregate book value of all property Disposed of in reliance on this clause (g) in any fiscal year shall not exceed $10,000,000. 
 7.06 Restricted Payments. Declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do
so, except that, so long as no Default shall have occurred and be continuing at the time of any action described below or would result therefrom: 
 (a) each Subsidiary may make Restricted Payments to the Borrower, the Guarantors and any other Person that owns an Equity Interest in such Subsidiary, ratably according to their respective holdings of the type of Equity Interest in respect
of which such Restricted Payment is being made; 
 (b) the Borrower and each Subsidiary may declare and make dividend payments or other
distributions payable solely in the common stock or other common Equity Interests of such Person; 
 (c) the Borrower may make Restricted
Payments in connection with the incurrence of Indebtedness permitted by Section 7.03(h), provided that, immediately following any such Restricted Payment, the Consolidated Leverage Ratio shall not exceed 2.50 to 1.00; 

(d) the Borrower may make Restricted Payments in the amount of the cash proceeds received by the Borrower from the exercise of stock options by its
officers, directors, and employees; and 
 (e) the Borrower may make other Restricted Payments not to exceed $25,000,000 in the aggregate.

 7.07 Change in Nature of Business. Engage in any material line of business substantially different from those lines of business
conducted by the Borrower and its Subsidiaries on the date hereof or any business substantially related or incidental thereto. 
  

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 7.08 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate of
the Borrower, whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to the Borrower or such Subsidiary as would be obtainable by the Borrower or such Subsidiary at the time in a
comparable arm’s length transaction with a Person other than an Affiliate, provided that the foregoing restriction shall not apply to transactions entirely between or among the Borrower and any Guarantor or entirely between and among any
Guarantors or limit Investments permitted by Section 7.02. 
 7.09 Burdensome Agreements. Enter into any Contractual
Obligation (other than this Agreement or any other Loan Document) that (a) limits the ability (i) of any Subsidiary to make Restricted Payments to the Borrower or any Guarantor or to otherwise transfer property to the Borrower or any
Guarantor, (ii) of any Subsidiary (other than an Excluded Foreign Subsidiary) to Guarantee the Indebtedness of the Borrower or (iii) of the Borrower or any Subsidiary (other than an Excluded Foreign Subsidiary) to create, incur, assume or
suffer to exist Liens on property of such Person; provided, however, that this clause (iii) shall not prohibit any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under
Section 7.03(e) solely to the extent any such negative pledge relates to the property financed by or the subject of such Indebtedness; or (b) requires the grant by the Borrower or any Subsidiary (other than an Excluded Foreign
Subsidiary) of a Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person. 
 7.10 Use
of Proceeds. Use the proceeds of any Credit Extension, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to
others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose. 
 7.11
Optional Payments of other Indebtedness. Make any optional or voluntary principal payment, prepayment, repurchase or redemption of or otherwise optionally or voluntarily defease or segregate funds with respect to (a) the Indebtedness
permitted to be incurred under Section 7.03(h), or (b) any other Indebtedness other than the Obligations, except in the ordinary course of business. 
 7.12 Financial Covenants. 
 (a) Consolidated Interest Coverage Ratio. Permit the Consolidated Interest
Coverage Ratio for any period of four fiscal quarters of the Borrower to be less than 4.00 to 1.00. 
  

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 (b) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio for any period of four fiscal
quarters of the Borrower set forth below to be greater than the ratio set forth below opposite such period: 
  

			
	 Four Fiscal Quarters Ending
	  	 Maximum Consolidated
Leverage Ratio

	 Closing Date through September 30, 2009
	  	3.25 to 1.00
	 December 31, 2009 and each fiscal quarter thereafter
	  	3.00 to 1.00

 7.13 Capital Expenditures. Commencing with the Borrower’s 2008 fiscal year, make or
commit to make any Capital Expenditure, except Capital Expenditures of the Borrower and its Subsidiaries in the ordinary course of business during any fiscal year not to exceed 80% of Consolidated EBITDA for the preceding fiscal year; provided, that
up to 50% of any such amount not so expended in the fiscal year for which it is permitted may be carried over for expenditure in the next succeeding fiscal year, and Capital Expenditures made pursuant to this Section during any fiscal year shall be
deemed made, first, in respect of amounts permitted for such fiscal year as provided above and, second, in respect of amounts carried over from the prior fiscal year. 
 7.14 GroupEx Acquisition. Amend or modify the acquisition agreement relating to the GroupEx acquisition in any respect that could reasonably be expected to have a Material Adverse Effect or that could
reasonably be expected to be materially adverse to the interests of the Administrative Agent and the Lenders, or cause or permit the acquisition of GroupEx to be consummated except upon the terms and conditions of the acquisition agreement
heretofore delivered to the Administrative Agent and the Lenders, as such acquisition agreement may be amended or modified as permitted by this Section 7.14. 
 7.15 Amendment of Certain Agreements. Amend or modify any agreement or instrument entered into in connection with the Indebtedness permitted by Section 7.03(h) in a manner that causes such agreement
or instrument to have terms or conditions that are not permitted by Section 7.03(h). 
 ARTICLE VIII. 
 EVENTS OF DEFAULT AND REMEDIES 
 8.01 Events of Default. Any of the following shall constitute an Event of Default: 
 (a) Non-Payment. The Borrower or
any other Loan Party fails to pay (i) when and as required to be paid herein, any amount of principal of any Loan or any L/C Obligations, (ii) within one day after the same becomes due any principal of any L/C Obligation or
(ii) within five days after the same becomes due, any interest on any Loan or on any L/C Obligation, or any fee due hereunder, or (iii) within five days after the same becomes due, any other amount payable hereunder or under any other Loan
Document; or 
 (b) Specific Covenants. The Borrower fails to perform or observe any term, covenant or agreement contained in any of
Section 6.03(a), Section 6.04(a) or (b), or Section 6.10 or Article VII, or any “Event of Default” under and as defined in any Collateral Document shall have occurred and be continuing; or

  

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 (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or agreement
(not specified in subsection (a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days after written notice from the Administrative Agent or the Required Lenders; or

 (d) Representations and Warranties. Any representation, warranty, certification or statement of fact made or deemed made by or on
behalf of the Borrower or any other Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall be incorrect in any material respect or misleading in any material respect when made or deemed
made; or 
 (e) Cross-Default. (i) The Borrower or any Subsidiary (A) fails to make any payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including
amounts owing to all creditors under any combined or syndicated credit arrangement) of more than the Threshold Amount, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or
contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or
beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased,
prepaid, defeased or redeemed (automatically or otherwise), prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap Contract an Early
Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which the Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any
Termination Event (as so defined) under such Swap Contract as to which the Borrower or any Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination Value owed by the Borrower or such Subsidiary as a result thereof
is greater than the Threshold Amount; or 
 (f) Insolvency Proceedings, Etc. Any Loan Party institutes or consents to the institution
of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it
or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged
or unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for 60
calendar days, or an order for relief is entered in any such proceeding; or 
 (g) Inability to Pay Debts; Attachment. (i) Any
Loan Party becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part
of the property of any such Person and is not released, vacated or fully bonded within 30 days after its issue or levy; or 
  

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 (h) Judgments. There is entered against any Loan Party (i) one or more final judgments or
orders for the payment of money in an aggregate amount (as to all such judgments or orders) exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage), or
(ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any
creditor upon such judgment or order, or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or 
 (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected
to result in liability of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of the Threshold Amount, or (ii) the Borrower or any ERISA Affiliate fails to pay when due,
after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or

 (j) Invalidity of Loan Documents. Any Loan Party contests in any manner the validity or enforceability of any provision of any Loan
Document; or any Loan Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan Document, except because of payment or performance; or 

(k) Change of Control. There occurs any Change of Control; or 
 (l) Collateral Documents. Any Collateral Document after delivery thereof pursuant to Section 4.01 or 6.12 shall for any reason (other than pursuant to the terms thereof) cease to create a
valid and perfected first priority Lien (subject to Liens permitted by Section 7.01) on the Collateral purported to be covered thereby (except to the extent the Administrative Agent has agreed not to require perfection of any such Lien),
and such condition continues for ten (10) days after written notice from the Administrative Agent or the Required Lenders. 
 8.02
Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions: 
 (a) declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon
such commitments and obligation shall be terminated; 
 (b) declare the unpaid principal amount of all outstanding Loans, all interest
accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Borrower; 
  

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 (c) require that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to the then
Outstanding Amount thereof); and 
 (d) exercise on behalf of itself, the Lenders and the L/C Issuer all rights and remedies available to it,
the Lenders and the L/C Issuer under the Loan Documents; 
 provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid
principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, and the obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically
become effective, in each case without further act of the Administrative Agent or any Lender. 
 8.03 Application of Funds. After the
exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable and the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the proviso to
Section 8.02), any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order: 
 First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including reasonable fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under
Article III) payable to the Administrative Agent in its capacity as such; 
 Second, to payment of that portion of the
Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders and the L/C Issuer (including reasonable fees, charges and disbursements of counsel to the respective
Lenders and the L/C Issuer (including fees and time charges for attorneys who may be employees of any Lender or the L/C Issuer) and amounts payable under Article III), ratably among them in proportion to the respective amounts described in
this clause Second payable to them; 
 Third, to payment of that portion of the Obligations constituting accrued and unpaid
Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations, ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Third payable to them; 
 Fourth, ratably (a) to payment of that portion of the Obligations constituting unpaid principal of the Loans and L/C Borrowings, ratably
among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Fourth held by them, (b) to the Administrative Agent for the account of the L/C Issuer, to Cash Collateralize that portion of L/C
Obligations comprised of the aggregate undrawn amount of Letters of Credit and (c) to payment of unpaid Obligations then due under Lender Swap Contracts and Cash Management Agreements, ratably among the Lender Swap Providers and the Cash
Management Banks in proportion to the respective amounts described in this clause Fourth owed to them; and 
  

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 Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to
the Borrower or as otherwise required by Law. 
 Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate
undrawn amount of Letters of Credit pursuant to clause Fourth above shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either
been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above. 
 ARTICLE IX. 
 ADMINISTRATIVE AGENT 
 9.01 Appointment and Authority. 
 (a) Each of the Lenders and the L/C Issuer hereby irrevocably
appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the L/C Issuer,
and the Borrower shall not have rights as a third party beneficiary of any of such provisions. 
 (b) The Administrative Agent shall also act
as the “collateral agent” under the Loan Documents, and each of the Lenders (in its capacities as a Lender, Swing Line Lender (if applicable, potential Lender Swap Provider and potential Cash Management Bank), and the L/C Issuer
hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender and the L/C Issuer for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure
any of the Obligations, together with such powers and discretion as are reasonably incidental thereto. In this connection, the Administrative Agent, as “collateral agent” and any co-agents, sub-agents and attorneys-in-fact appointed by the
Administrative Agent pursuant to Section 9.05 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the
direction of the Administrative Agent), shall be entitled to the benefits of all provisions of this Article IX and Article XI (including Section 10.04(c), as though such co-agents, sub-agents and attorneys-in-fact were the
“collateral agent” under the Loan Documents) as if set forth in full herein with respect thereto. 
 9.02 Rights as a
Lender. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term
“Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were
not the Administrative Agent hereunder and without any duty to account therefor to the Lenders. 
  

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 9.03 Exculpatory Provisions. The Administrative Agent shall not have any duties or obligations
except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent: 
 (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing; 
 (b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required
to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be
required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law; and 
 (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity. 
 The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders
(or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 10.01 and 8.02) or (ii) in
the absence of its own gross negligence or willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by the Borrower, a
Lender or the L/C Issuer. 
 The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or
therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness
of this Agreement, any other Loan Document or any other agreement, instrument or document, or the creation, perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the value or the sufficiency of any
Collateral, or (vi) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 
  

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 9.04 Reliance by Administrative Agent. 
 The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper
Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any
condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to
such Lender or the L/C Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may
consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel,
accountants or experts. 
 9.05 Delegation of Duties. The Administrative Agent may perform any and all of its duties and exercise its
rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The 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 Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 
 9.06 Resignation of Administrative Agent. The Administrative Agent may at any time give notice of its resignation to the Lenders, the L/C Issuer and the Borrower. Upon receipt of any such notice of resignation,
the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such
successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf
of the Lenders and the L/C Issuer, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that if the Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted
such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (1) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents
and (2) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the L/C Issuer directly, until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this Section. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan 

  

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Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrower to a successor Administrative Agent shall
be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article
and Section 10.04 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the
retiring Administrative Agent was acting as Administrative Agent. 
 Any resignation by Bank of America as Administrative Agent pursuant to
this Section shall also constitute its resignation as L/C Issuer and Swing Line Lender. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring L/C Issuer and Swing Line Lender, (b) the retiring L/C Issuer and Swing Line Lender shall be discharged from all of their respective duties and obligations hereunder or under the other
Loan Documents, and (c) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to the retiring L/C Issuer to
effectively assume the obligations of the retiring L/C Issuer with respect to such Letters of Credit. 
 9.07 Non-Reliance on
Administrative Agent and Other Lenders. Each Lender and the L/C Issuer acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender and the L/C Issuer also acknowledges that it will, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other
Loan Document or any related agreement or any document furnished hereunder or thereunder. 
 9.08 No Other Duties, Etc. Anything
herein to the contrary notwithstanding, none of the Bookrunners, Arrangers or other agents listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its
capacity, as applicable, as the Administrative Agent, a Lender or the L/C Issuer hereunder. 
 9.09 Administrative Agent May File Proofs
of Claim. In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then
be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise

 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations
and all other Obligations (other than Obligations under any Lender Swap Contract or Cash Management 

  

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Agreement) that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the L/C
Issuer and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and the Administrative Agent and their respective agents and counsel and all other amounts
due the Lenders, the L/C Issuer and the Administrative Agent under Sections 2.03(i) and (j), 2.09 and 10.04) allowed in such judicial proceeding; and 
 (b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; 
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender
and the L/C Issuer to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the Administrative Agent any
amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.09 and 10.04. 
 Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or
the L/C Issuer any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the L/C Issuer to authorize the Administrative Agent to vote in respect of the claim of any Lender or the L/C
Issuer in any such proceeding. 
 9.10 Collateral and Guaranty Matters. The Lenders and the L/C Issuer irrevocably authorize the
Administrative Agent, at its option and in its discretion, 
 (a) to release any Lien on any property granted to or held by the Administrative
Agent under any Loan Document (i) upon termination of the Aggregate Commitments and payment in full of all Obligations (other than contingent indemnification obligations) and the expiration or termination of all Letters of Credit,
(ii) that is sold or to be sold as part of or in connection with any sale permitted hereunder or under any other Loan Document, or (iii) subject to Section 10.01, if approved, authorized or ratified in writing by the Required
Lenders; 
 (b) to subordinate any Lien on any property granted to or held by the Administrative Agent under any Loan Document to the holder
of any Lien on such property that is permitted by Section 7.01(i); and 
 (c) to release any Guarantor from its obligations under
the Guarantee and Collateral Agreement if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder. 
 Upon
request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from
its obligations under the Guarantee and Collateral Agreement pursuant to this Section 9.10. In each case as specified in 

  

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this Section 9.10, the Administrative Agent will, at the Borrower’s expense, execute and deliver to the applicable Loan Party such documents
as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral Documents or to subordinate its interest in such item, or to release such Guarantor
from its obligations under the Guarantee and Collateral Agreement, in each case in accordance with the terms of the Loan Documents and this Section 9.10. 
 ARTICLE X. 
 MISCELLANEOUS 
 10.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by
the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower or the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each such waiver
or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall: 
 (a) waive any condition set forth in Section 4.01(a) without the written consent of each Lender; 
 (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.02) without the written
consent of such Lender; 
 (c) postpone any date fixed by this Agreement or any other Loan Document for any payment of principal, interest,
fees or other amounts due to the Lenders (or any of them) or any scheduled or mandatory reduction of the Aggregate Commitments hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby;

 (d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to clause (iv) of
the second proviso to this Section 10.01) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, however, that only the
consent of the Required Lenders shall be necessary to (i) amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest or Letter of Credit Fees at the Default Rate, or (ii) to amend any
financial covenant hereunder (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or L/C Borrowing or to reduce any fee payable hereunder; 
 (e) change Section 2.13 or Section 8.03 in a manner that would alter the pro rata sharing of payments required thereby without
the written consent of each Lender; 
 (f) change any provision of this Section or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder without the written consent of each Lender; 

 

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 (g) release all or substantially all of the value of the Guarantee and Collateral Agreement without the
written consent of each Lender, except to the extent the release of any Guarantor is permitted pursuant to Section 9.10 (in which case such release may be made by the Administrative Agent acting alone); or 
 (h) release all or substantially all of the Collateral in any transaction or series of related transactions, without the written consent of each Lender,
except to the extent the release of any Collateral is permitted pursuant to Section 9.10 (in which case such release may be made by the Administrative Agent acting alone); 
 and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the L/C Issuer in addition to the Lenders required above, affect the rights or duties of the
L/C Issuer under this Agreement or any Issuer Document relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swing Line Lender in addition to the Lenders
required above, affect the rights or duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect
the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; and (iv) each Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the
consent of such Lender. 
 10.02 Notices; Effectiveness; Electronic Communication. 
 (a) Notices Generally. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided
in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier as follows, and all
notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: 
 (i) if to the Borrower, the Administrative Agent, the L/C Issuer or the Swing Line Lender, to the address, telecopier number, electronic mail address or telephone number specified for such Person on Schedule
10.02; and 
 (ii) if to any other Lender, to the address, telecopier number, electronic mail address or telephone number
specified in its Administrative Questionnaire. 
 Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be
deemed to have been given when received; notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business
on the next business day for the recipient). Notices delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b). 
  

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 (b) Electronic Communications. Notices and other communications to the Lenders and the L/C Issuer
hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to
any Lender or the L/C Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. The
Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be
limited to particular notices or communications. 
 Unless the 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. 
 (c) The
Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM
LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. 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 ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”)
have any liability to the Borrower, any Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative
Agent’s transmission of Borrower Materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to the Borrower, any Lender, the L/C Issuer or any other Person for indirect,
special, incidental, consequential or punitive damages (as opposed to direct or actual damages). 
 (d) Change of Address, Etc. Each
of the Borrower, the Administrative Agent, the L/C Issuer and the Swing Line Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may
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communications hereunder by notice to the Borrower, the Administrative Agent, the L/C Issuer and the Swing Line Lender. In addition, each Lender agrees to
notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side
Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law, including United
States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Platform and that may contain material non-public information with respect
to the Borrower or its securities for purposes of United States Federal or state securities laws. 
 (e) Reliance by Administrative Agent,
L/C Issuer and Lenders. The Administrative Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices and Swing Line Loan Notices) purportedly given by or on
behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the
recipient, varied from any confirmation thereof. The Borrower shall indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance
by such Person on each notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto
hereby consents to such recording. 
 10.03 No Waiver; Cumulative Remedies. No failure by any Lender, the L/C Issuer or the
Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law. 
 10.04 Expenses; Indemnity; Damage Waiver. 
 (a) Costs and Expenses. The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and its
Affiliates (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all
reasonable out-of-pocket expenses incurred by the L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred by the
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(including the reasonable fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or the L/C Issuer), and shall pay all fees
and time charges for attorneys who may be employees of the Administrative Agent, any Lender or the L/C Issuer, in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such
Loans or Letters of Credit. 
 (b) Indemnification by the Borrower. The Borrower shall indemnify the Administrative Agent (and any
sub-agent thereof), each Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may
be employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Loan Party arising out of, in connection with, or as a result of (i) the execution or delivery of
this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder, the consummation of the transactions contemplated
hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents, (ii) any Loan or Letter of Credit or the use or proposed
use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit),
(iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any
other Loan Party, and regardless of whether any Indemnitee is a party thereto, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to
have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower or any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document, if the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction. 
 (c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under
subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or
any such sub-agent), the L/C Issuer or such Related Party, as the case may be, such Lender’s 

  

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Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount,
provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the L/C Issuer in its
capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or L/C Issuer in connection with such capacity. The obligations of the Lenders under this subsection (c) are
subject to the provisions of Section 2.12(d). 
 (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted
by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No
Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through
telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the
gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent jurisdiction. 
 (e) Payments. All amounts due under this Section shall be payable not later than ten Business Days after demand therefor. 
 (f) Survival. The agreements in this Section shall survive the resignation of the Administrative Agent, the L/C Issuer and the Swing Line Lender, the replacement of any Lender, the termination of the Aggregate Commitments and the
repayment, satisfaction or discharge of all the other Obligations. 
 10.05 Payments Set Aside. To the extent that any payment by or
on behalf of the Borrower is made to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent, the L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof
is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent, the L/C Issuer or such Lender in its discretion) to be repaid to a trustee,
receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of
any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations
of the Lenders and the L/C Issuer under clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement. 
  

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 10.06 Successors and Assigns. 
 (a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no
Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the
provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party
hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent
provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement. 
 (b) Assignments by Lenders. Any Lender may at any time assign to one or more assignees all or a portion
of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans (including for purposes of this subsection (b), participations in L/C Obligations and in Swing Line Loans) at the time owing to it);
provided that any such assignment shall be subject to the following conditions: 
 (i) Minimum Amounts.

 (A) in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and 
 (B) in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect,
the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if
“Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000 unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower
otherwise consents (each such consent not to be unreasonably withheld or delayed); provided, however, that concurrent assignments to members of an Assignee Group and concurrent assignments from members of an Assignee Group to a single
Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of determining whether such minimum amount has been met. 
  

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 (ii) Proportionate Amounts. Each partial assignment shall be made as an assignment
of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned, except that this clause (ii) shall not apply to the Swing Line Lender’s rights and
obligations in respect of Swing Line Loans; 
 (iii) Required Consents. No consent shall be required for any assignment
except to the extent required by subsection (b)(i)(B) of this Section and, in addition: 
 (A) the consent of the Borrower
(such consent not to be unreasonably withheld or delayed) shall be required unless (1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an
Approved Fund; 
 (B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall
be required if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender; 
 (C) the consent of the L/C Issuer (such consent not to be unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of the assignee to participate in exposure under one or
more Letters of Credit (whether or not then outstanding); and 
 (D) the consent of the Swing Line Lender (such consent not to
be unreasonably withheld or delayed) shall be required for any assignment. 
 (iv) Assignment and Assumption. The
parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500, which fee the Borrower shall not be responsible to pay except as
provided in Section 10.13; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender,
shall deliver to the Administrative Agent an Administrative Questionnaire. 
 (v) No Assignment to Borrower. No such
assignment shall be made to the Borrower or any of the Borrower’s Affiliates or Subsidiaries. 
 (vi) No Assignment to
Natural Persons. No such assignment shall be made to a natural person. 
 Subject to acceptance and recording thereof by the Administrative Agent
pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the assigning 

  

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Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of
Sections 3.01, 3.04, 3.05, and 10.04 with respect to facts and circumstances occurring prior to the effective date of such assignment. Upon request, the Borrower (at its expense) shall execute and deliver a Note to the
assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with subsection (d) of this Section. 
 (c) Register. The Administrative Agent, acting
solely for this purpose as an agent of the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and
the Commitments of, and principal amounts of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
 (d)
Participations. Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s
Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans (including such
Lender’s participations in L/C Obligations and/or Swing Line Loans) owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent, the Lenders and the L/C Issuer shall continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. 
 Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender
will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 10.01 that affects such Participant. Subject to subsection (e) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of
this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.13 as
though it were a Lender. 
 (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater
payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the 

  

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participation to such Participant is made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender
shall not be entitled to the benefits of Section 3.01 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 3.01(e)
as though it were a Lender. 
 (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment
shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
 (g) Electronic Execution of Assignments. The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption 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.

 (h) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding anything to the contrary contained herein, if
at any time Bank of America assigns all of its Commitment and Loans pursuant to subsection (b) above, Bank of America may, (i) upon 30 days’ notice to the Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon 30
days’ notice to the Borrower, resign as Swing Line Lender. In the event of any such resignation as L/C Issuer or Swing Line Lender, the Borrower shall be entitled to appoint from among the Lenders a successor L/C Issuer or Swing Line Lender
hereunder; provided, however, that no failure by the Borrower to appoint any such successor shall affect the resignation of Bank of America as L/C Issuer or Swing Line Lender, as the case may be. If Bank of America resigns as L/C
Issuer, it shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with respect
thereto (including the right to require the Lenders to make Base Rate Committed Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)). If Bank of America resigns as Swing Line Lender, it shall retain all
the rights of the Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Base Rate Committed Loans or fund
risk participations in outstanding Swing Line Loans pursuant to Section 2.04(c). Upon the appointment of a successor L/C Issuer and/or Swing Line Lender, (a) such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as the case may be, and (b) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of America with respect to such Letters of Credit. 
  

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 10.07 Treatment of Certain Information; Confidentiality. Each of the Administrative Agent, the
Lenders and the L/C Issuer agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors,
officers, employees, agents, advisors and representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential),
(b) to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in,
or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or any Eligible Assignee invited to be a Lender pursuant to Section 2.14(c) or (ii) any actual or prospective counterparty (or
its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the extent such Information (x) becomes publicly available other than as a result of a
breach of this Section or (y) becomes available to the Administrative Agent, any Lender, the L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower. 
 For purposes of this Section, “Information” means all information received from the Borrower or any Subsidiary relating to the Borrower
or any Subsidiary or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by the Borrower or any Subsidiary,
provided that, in the case of information received from the Borrower or any Subsidiary after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality
of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its
own confidential information. 
 Each of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the Information
may include material non-public information concerning the Borrower or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding the use of material non-public information and (c) it will handle such material
non-public information in accordance with applicable Law, including United States Federal and state securities Laws. 
 10.08 Right of
Setoff. If an Event of Default shall have occurred and be continuing, each Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law,
to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the L/C Issuer or any such
Affiliate to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or the L/C Issuer, irrespective of 

  

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whether or not such Lender or the L/C Issuer shall have made any demand under this Agreement or any other Loan Document and although such obligations of the
Borrower may be contingent or unmatured or are owed to a branch or office of such Lender or the L/C Issuer different from the branch or office holding such deposit or obligated on such indebtedness. The rights of each Lender, the L/C Issuer and
their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the L/C Issuer or their respective Affiliates may have. Each Lender and the L/C Issuer agrees to notify
the Borrower and the Administrative Agent promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application. 
 10.09 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid
under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the
Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged, or received by the Administrative Agent
or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and
the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder. 
 10.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature
page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
 10.11 Survival
of Representations and Warranties. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and
delivery hereof and thereof. Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and
notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall
remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding. 
  

 95 

 10.12 Severability. If any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in
good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a
provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 10.13
Replacement of Lenders. If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 3.01, or if any Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in, and consents required by, Section 10.06), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that: 
 (a) the Borrower shall
have paid to the Administrative Agent the assignment fee specified in Section 10.06(b); 
 (b) such Lender shall have received payment
of an amount equal to the outstanding principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under
Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts); 
 (c) in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to
Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; and 
 (d) such assignment
does not conflict with applicable Laws. 
 A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 
 10.14 Governing Law; Jurisdiction; Etc. 
 (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 (b) SUBMISSION TO JURISDICTION. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK, NEW YORK AND OF THE UNITED STATES DISTRICT 

  

 96 

 
COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN
SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 
 (c) WAIVER OF VENUE. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. 
 (d) SERVICE OF
PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW. 
 10.15 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION. 
  

 97 

 10.16 No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction
contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that:
(i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Arrangers are arm’s-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the
Administrative Agent and the Arrangers, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and
understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative Agent and the Arrangers each are and have been acting solely as a principal and,
except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B) neither the Administrative
Agent nor the Arrangers have any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the
Administrative Agent and the Arranger and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and neither the Administrative Agent nor the
Arrangers have any obligation to disclose any of such interests to the Borrower or its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that it may have against the Administrative Agent and the
Arrangers with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby. 
 10.17 USA PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant
to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrower in accordance with the Act. 
 10.18 ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 
 Remainder of page intentionally left blank 
 signature pages follow. 
  

 98 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the
date first above written. 
  

					
	COINSTAR, INC.
		
	By:	 	/s/ Brian V. Turner
		 	Name:	 	Brian V. Turner
		 	Title:	 	Chief Financial Officer

					
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	/s/ Rosanne Parsill
		 	Name:	 	Rosanne Parsill
		 	Title:	 	Assistant Vice President

					
	BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender
		
	By:	 	/s/ Gary L. Mingle
		 	Name:	 	Gary L. Mingle
		 	Title:	 	Senior Vice-President

					
	JPMORGAN CHASE BANK, N.A., as a Lender
		
	By:	 	/s/ Clara Sohan
		 	Name:	 	Clara Sohan
		 	Title:	 	Vice President

					
	U.S. BANK NATIONAL ASSOCIATION, as a Lender
		
	By:	 	/s/ William A. Weiand
		 	Name:	 	William A. Weiand
		 	Title:	 	Senior Vice President

					
	KEYBANK NATIONAL ASSOCIATION, as a Lender
		
	By:	 	/s/ Larsen Mettler
		 	Name:	 	Larsen Mettler
		 	Title:	 	Associate

					
	WELLS FARGO BANK, N.A., as a Lender
		
	By:	 	/s/ Benjamin Leonard
		 	Name:	 	Benjamin Leonard
		 	Title:	 	Relationship Manager, VP

					
	HSBC BANK USA, N.A., as a Lender
		
	By:	 	/s/ Leslie T. Chang
		 	Name:	 	Leslie T. Chang
		 	Title:	 	Vice President

					
	UNION BANK OF CALIFORNIA, N.A., as a Lender
		
	By:	 	/s/ Ray Ward
		 	Name:	 	Ray Ward
		 	Title:	 	Vice President

					
	COMERICA BANK, as a Lender
		
	By:	 	/s/ Jeffrey Roberts
		 	Name:	 	Jeffrey Roberts
		 	Title:	 	SVP

					
	RAYMOND JAMES BANK, FSB, as a Lender
		
	By:	 	/s/ Garrett T McKinnon
		 	Name:	 	Garrett T McKinnon
		 	Title:	 	Vice President

					
	COLUMBIA STATE BANK, as a Lender
		
	By:	 	/s/ Kevin N. Meabon
		 	Name:	 	Kevin N. Meabon
		 	Title:	 	Vice President

					
	BANK OF THE WEST, as a Lender
		
	By:	 	/s/ Bruce Kendrex
		 	Name:	 	Bruce Kendrex
		 	Title:	 	Regional Vice President

					
	ALLIED IRISH BANKS, p.l.c., as a Lender
		
	By:	 	/s/ Joseph Augustini
		 	Name:	 	Joseph Augustini
		 	Title:	 	Vice President
		
	By:	 	/s/ Gregory J. Wiske
		 	Name:	 	Gregory J. Wiske
		 	Title:	 	Vice PresidentDebtor-in-Possession Credit and Security Agreement

 Exhibit 4.1 
 EXECUTION COPY 
 DEBTOR-IN-POSSESSION CREDIT AND SECURITY AGREEMENT 
 among 
 POPE & TALBOT,
INC., 
 as a Debtor and Debtor-in-Possession 
 under Chapter 11 of the United States Bankruptcy Code, 
 and as a debtor company under the

 Companies’ Creditors Arrangement Act (Canada), 
 POPE & TALBOT LTD., 
 as a Debtor and Debtor in Possession 
 under Chapter 11 of the United States Bankruptcy Code, 
 and as a debtor company under the 
 Companies’ Creditors Arrangement Act (Canada),

 as Borrower, 
 The Guarantors Listed on the Signature Pages Hereto, 
 The Several Lenders 
 from Time to Time Parties Hereto, 
 WELLS FARGO FINANCIAL CORPORATION CANADA, 
 as Administrative Agent, 
 ABLECO FINANCE LLC, 
 as Collateral
Agent, 
 and 
 ABLECO FINANCE LLC, 
 as Term Loan B Agent 
 Dated as of November 19, 2007 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
	SECTION 1	 	DEFINITIONS	  	1
			
	            1.1	 	Defined Terms	  	1
	            1.2	 	Other Definitional Provisions	  	40
			
	SECTION 2	 	AMOUNT AND TERMS OF COMMITMENTS	  	41
			
	            2.1	 	Term Loan B Commitments	  	41
	            2.2	 	Reserved	  	41
	            2.3	 	Procedure for Term Loan Borrowing	  	41
	            2.4	 	Repayment of Term Loans	  	42
	            2.5	 	Revolving Credit Commitments	  	42
	            2.6	 	Procedure for Revolving Credit Borrowing	  	44
	            2.7	 	Swing Line Commitment	  	44
	            2.8	 	Procedure for Swing Line Borrowing; Refunding of Swing Line Loans	  	45
	            2.9	 	Repayment of Loans; Evidence of Debt	  	46
	            2.10	 	Fees	  	47
	            2.11	 	Termination or Reduction of Commitments	  	48
	            2.12	 	Optional Prepayments	  	49
	            2.13	 	Mandatory Prepayments	  	50
	            2.14	 	Conversion and Continuation Options	  	53
	            2.15	 	Minimum Amounts and Maximum Number of Eurodollar Tranches	  	53
	            2.16	 	Interest Rates and Payment Dates	  	53
	            2.17	 	Computation of Interest and Fees	  	54
	            2.18	 	Inability to Determine Interest Rate	  	55
	            2.19	 	Application and Allocation of Payments	  	56
	            2.20	 	Loan Account and Accounting	  	61
	            2.21	 	Requirements of Law	  	61
	            2.22	 	Taxes	  	63
	            2.23	 	Indemnity	  	65
	            2.24	 	Illegality	  	65
	            2.25	 	Change of Lending Office	  	65
			
	SECTION 3	 	LETTERS OF CREDIT	  	66
			
	            3.1	 	L/C Commitment	  	66
	            3.2	 	L/C Disbursement	  	67
	            3.3	 	Direction	  	68
	            3.4	 	Change in Law	  	68
	            3.5	 	Charges; Fees	  	69
	            3.6	 	Cash Collateral	  	69
	            3.7	 	Indemnity	  	69
	            3.8	 	Pre-Petition Letters of Credit	  	69

  

 i 

					
	SECTION 4	 	REPRESENTATIONS AND WARRANTIES	  	70
			
	            4.1	 	Financial Condition	  	70
	            4.2	 	No Change	  	71
	            4.3	 	Existence; Compliance with Law	  	71
	            4.4	 	Power; Authorization; Enforceable Obligations	  	71
	            4.5	 	No Legal Bar	  	71
	            4.6	 	No Material Litigation	  	72
	            4.7	 	No Default	  	72
	            4.8	 	Ownership of Property; Liens	  	72
	            4.9	 	Intellectual Property	  	72
	            4.10	 	Taxes	  	73
	            4.11	 	Federal Regulations	  	73
	            4.12	 	Labor Matters	  	73
	            4.13	 	ERISA	  	74
	            4.14	 	Canadian Benefit and Pension Plans	  	74
	            4.15	 	Investment Company Act; Other Regulations	  	75
	            4.16	 	Subsidiaries	  	75
	            4.17	 	Use of Proceeds	  	76
	            4.18	 	Environmental Matters	  	76
	            4.19	 	Accuracy of Information, etc	  	78
	            4.20	 	Security Documents	  	78
	            4.21	 	Administrative Priority; Lien Priority	  	79
	            4.22	 	Appointment of Trustee or Examiner; Liquidation	  	79
	            4.23	 	Insurance	  	79
	            4.24	 	Real Estate	  	80
	            4.25	 	Location of Bank Accounts	  	80
	            4.26	 	Name; Jurisdiction of Organization; Organizational ID Number; Chief Place of Business; Chief Executive Office; FEIN	  	80
	            4.27	 	Canadian Loan Parties	  	80
			
	SECTION 5	 	CONDITIONS PRECEDENT	  	80
			
	            5.1	 	Conditions to Interim Facility Effectiveness	  	80
	            5.2	 	Conditions to Final Facility Effectiveness	  	84
	            5.3	 	Conditions to Each Extension of Credit	  	85
			
	SECTION 6	 	AFFIRMATIVE COVENANTS	  	86
			
	            6.1	 	Financial Statements	  	86
	            6.2	 	Certificates; Other Information	  	87
	            6.3	 	Reserved	  	89
	            6.4	 	Conduct of Business and Maintenance of Existence, etc	  	89
	            6.5	 	Maintenance of Property; Insurance	  	90
	            6.6	 	Inspection of Property; Books and Records; Discussions	  	90
	            6.7	 	Notices	  	91
	            6.8	 	Environmental Laws	  	92
	            6.9	 	Reserved	  	92

  

 ii 

					
	            6.10	 	Additional Collateral, etc	  	93
	            6.11	 	Borrowing Base Certificate	  	94
	            6.12	 	Use of Proceeds	  	94
	            6.13	 	Pension and Benefit Plans	  	94
	            6.14	 	Payment of Taxes	  	96
	            6.15	 	Further Assurances	  	96
	            6.16	 	Change in Collateral; Collateral Records; Post Closing Collateral	  	96
	            6.17	 	Sale Procedure	  	97
			
	SECTION 7	 	NEGATIVE COVENANTS	  	98
			
	            7.1	 	Reserved	  	98
	            7.2	 	Limitation on Indebtedness	  	98
	            7.3	 	Limitation on Liens	  	99
	            7.4	 	Limitation on Fundamental Changes	  	101
	            7.5	 	Limitation on Disposition of Property	  	101
	            7.6	 	Limitation on Restricted Payments	  	103
	            7.7	 	Limitation on Capital Expenditures	  	103
	            7.8	 	Limitation on Investments	  	103
	            7.9	 	Limitation on Optional Payments and Modifications of Debt Instruments, etc	  	104
	            7.10	 	Limitation on Transactions with Affiliates	  	104
	            7.11	 	Limitation on Sales and Leasebacks	  	104
	            7.12	 	Limitation on Changes in Fiscal Periods	  	105
	            7.13	 	Limitation on Negative Pledge Clauses	  	105
	            7.14	 	Limitation on Restrictions on Subsidiary Distributions	  	105
	            7.15	 	Limitation on Lines of Business	  	105
	            7.16	 	Limitation on Hedge Agreements	  	105
	            7.17	 	Deposit Accounts and Securities Accounts	  	106
	            7.18	 	Bankruptcy Court Orders; Administrative Priority; Lien Priority; Payment of Claims	  	106
	            7.19	 	Payments	  	106
			
	SECTION 8	 	EVENTS OF DEFAULT	  	107
			
	SECTION 9	 	THE AGENTS; THE ARRANGER	  	112
			
	            9.1	 	Appointment	  	112
	            9.2	 	Delegation of Duties	  	112
	            9.3	 	Exculpatory Provisions	  	113
	            9.4	 	Reliance by Agents	  	113
	            9.5	 	Notice of Default	  	113
	            9.6	 	Non Reliance on the Arranger, the Syndication Agent, the Agents and Other Lenders	  	114
	            9.7	 	Indemnification	  	114
	            9.8	 	Arranger, the Syndication Agent and Agents in their Individual Capacities	  	115
	            9.9	 	Successor Agent	  	115

  

 iii 

					
	            9.10	 	Authorization to Release Liens and Guarantees	  	116
	            9.11	 	Reserved	  	116
	            9.12	 	Collateral Matters	  	116
	            9.13	 	Agency for Perfection	  	118
	            9.14	 	Withholding Tax	  	118
	            9.15	 	Bank Product Provider	  	119
	            9.16	 	USA Patriot Act	  	119
			
	SECTION 10	 	MISCELLANEOUS	  	119
			
	            10.1	 	Amendments and Waivers	  	119
	            10.2	 	Notices	  	121
	            10.3	 	No Waiver; Cumulative Remedies	  	123
	            10.4	 	Survival of Representations and Warranties	  	123
	            10.5	 	Payment of Expenses	  	123
	            10.6	 	Successors and Assigns; Participations and Assignments	  	125
	            10.7	 	Adjustments; Set-off	  	129
	            10.8	 	Reserved	  	129
	            10.9	 	Counterparts	  	129
	            10.10	 	Severability	  	129
	            10.11	 	Integration	  	130
	            10.12	 	GOVERNING LAW	  	130
	            10.13	 	Submission To Jurisdiction; Waivers	  	130
	            10.14	 	Acknowledgments	  	130
	            10.15	 	Confidentiality	  	131
	            10.16	 	Accounting Changes	  	131
	            10.17	 	WAIVERS OF JURY TRIAL	  	132
	            10.18	 	Determinations; Judgment Currency	  	132
	            10.19	 	Consultation by WFF	  	132
	            10.20	 	Collateral Agent, Administrative Agent and Documentation Agent as Party-in-Interest	  	133
			
	SECTION 11	 	SECURITY AND ADMINISTRATIVE PRIORITY	  	133
			
	            11.1	 	Pre-Petition Obligations	  	133
	            11.2	 	Acknowledgment of Security Interests	  	133
	            11.3	 	Binding Effect of Documents	  	134
	            11.4	 	Collateral; Grant of Lien and Security Interest	  	134
	            11.5	 	Administrative Priority	  	135
	            11.6	 	Grants, Rights and Remedies	  	135
	            11.7	 	No Filings Required	  	135
	            11.8	 	Survival	  	136

  

 iv 

			
	SCHEDULES:	 	
		
	A-1	 	Administrative Agent’s Account
	C-1	 	Commitments
	C-2	 	Canadian Security Documents
	C-3	 	Collateral Agent’s Account
	D-1	 	Designated Accounts
	E-1	 	Eligible Inventory
	E-2	 	Pre-Petition Letters of Credit
	I-1	 	Initial Budget
	M-1	 	Midway Facility
	P-1	 	Pre-Petition Bank Product Agreements
	2.5(A)	 	Other Statutory Liabilities Reserve
	4.1(b)	 	Contingent Obligations and Dispositions since December 31, 2006
	4.10	 	Taxes
	4.13	 	ERISA
	4.14	 	Canadian Pension Plan Liabilities
	4.16	 	Subsidiaries; Outstanding Options, etc.
	4.18	 	Environmental Matters
	4.20	 	PPSA Filing Jurisdictions
	4.23	 	Insurance Maintained
	4.24	 	Owned and Leased Property
	4.25	 	Location of Bank Accounts
	4.26	 	Loan Party Identification
	4.27	 	Property located in the United States and owned by a Canadian Loan Party
	6.2(h)	 	Collateral Reporting and Foreign Credit Insurance Reporting
	6.16	 	Change in Collateral
	7.3(f)	 	Existing Liens
	7.8	 	Existing Investments
	7.17	 	Deposit Accounts and Securities Accounts
		
	EXHIBITS:	 	
		
	A	 	Form of Compliance Certificate
	B	 	Form of Closing Certificate
	C	 	Form of Assignment and Acceptance
	D	 	Reserved
	E	 	Form of Guaranty
	F	 	Reserved
	G	 	Form of Borrowing Notice
	H-1	 	Form of Interim US Bankruptcy Court Order
	H-2	 	Form of Interim Canadian Bankruptcy Court Order
	I	 	Form of Borrowing Base Certificate
	J	 	Form of Eurodollar Notice

  

 v 

 CREDIT AGREEMENT, dated as of November 19, 2007, among POPE & TALBOT, INC., a Delaware
corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code (as defined below) and as a debtor company under the CCAA (as defined below) (the “Parent”), POPE & TALBOT LTD., a Canadian corporation, as a
debtor and debtor-in-possession under the US Bankruptcy Code, and as a debtor company under the CCAA (the “Borrower”), the Guarantors (as defined below) set forth on the signature pages hereto, the several banks and other financial
institutions or entities from time to time parties to this Agreement (the “Lenders”), WELLS FARGO FINANCIAL CORPORATION CANADA, a Nova Scotia unlimited liability company, as administrative agent (in such capacity, together with its
permitted successors and assigns, the “Administrative Agent”), ABLECO FINANCE LLC, as Collateral Agent (in such capacity, together with its permitted successors and assigns, the “Collateral Agent”), and ABLECO
FINANCE LLC, as Term Loan B Agent (in such capacity, together with its permitted successors and assigns, the “Term Loan B Agent”). 
 WITNESSETH: 
 WHEREAS, each of the Loan Parties (as hereinafter defined) has commenced a case (the “Chapter 11
Cases”) under Chapter 11 of Title 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “US Bankruptcy Court”), and proceedings (the “CCAA Proceedings”) in
Canada under the Companies’ Creditors Arrangement Act (Canada) in the Superior Court of Justice (Commercial List) for the Province of Ontario, and, in each case, the Loan Parties have retained possession of their assets and are authorized under
each applicable Bankruptcy Code (as hereinafter defined) to continue the operation of their businesses as debtors and debtors-in-possession under the US Bankruptcy Code and as debtor companies under the CCAA; and 
 WHEREAS, the Loan Parties have asked the Lenders to make post-petition extensions of credit, loans and advances to the Borrower consisting of (a) a
revolving credit facility in an aggregate principal amount not to exceed $71,062,301.57 at any time outstanding, which revolving credit facility will include a letter of credit subfacility for the issuance of letters of credit, and (b) a
multi-draw term loan B credit facility in the aggregate principal amount of $18,000,000. The Lenders have severally, and not jointly, agreed to extend such credit to the Borrower subject to the terms and conditions hereinafter set forth. 

NOW, THEREFORE, in consideration of the premises and the agreements hereinafter set forth, the parties hereto hereby agree as follows: 
 SECTION 1    DEFINITIONS 
 1.1 Defined Terms. As used in this Agreement, the terms listed in this Section 1.1 shall have the respective meanings set forth in this Section 1.1. 
 “Ableco”: Ableco Finance LLC, a Delaware limited liability company. 
 “Acceleration Date”: as defined in Section 8. 

 “Acceptable Backup Letter of Credit”: a backup letter of credit, in form and substance
reasonably satisfactory to the Administrative Agent, issued by a financial institution reasonably acceptable to the Administrative Agent, in a stated amount of 105% of the Letter of Credit Usage. 
 “Account”: with respect to any Person, any and all rights of such Person to payment for goods sold and/or services rendered, including,
without limitation, General Intangibles and any and all such rights evidenced by chattel paper, instruments or documents, whether due or to become due and whether or not earned by performance, and whether now or hereafter acquired or arising in the
future, and any proceeds arising therefrom or relating thereto, and includes any and all accounts (as that term is defined in the UCC). 
 “Account Debtor”: any Person who is or who may become obligated under, with respect to, or on account of, an Account. 
 “ACH Transactions”: any cash management or related services (including the Automated Clearing House processing of electronic fund transfers through the direct Federal Reserve Fedline system) provided by a Bank Product
Provider for the account of the Parent or its Subsidiaries. 
 “Adequate Protection Stipulation”: any stipulation entered
into by and among the Borrower, the Guarantors and the Pre-Petition Agents pursuant to which (a) the Pre-Petition Agents consent to (i) the grant of liens to the Collateral Agent on behalf of the Agents and Lenders hereunder and
(ii) the use of Collateral, including, without limitation, cash collateral, in which the Pre-Petition Collateral Agent has, for the benefit of the Pre-Petition Lenders, been granted a security interest by the Borrower and the Guarantors and
(b) the Pre-Petition Collateral Agent and the Pre-Petition Lenders are granted “adequate protection” within the meaning of that term as used in Section 361 of the US Bankruptcy Code. The Adequate Protection Stipulation may be
included as a provision within the Bankruptcy Court Orders. 
 “Administration Charge Expenses”: without duplication
(a) the Administration Charge provided in the Canadian DIP Order, and (b) those unpaid fees, disbursements and expenses, incurred or accrued prior to the Acceleration Date or the Final Maturity Date, as applicable, of (i) the Monitor,
(ii) the United States and Canadian legal counsel to the Monitor and (iii) the Canadian legal counsel to the Loan Parties, in each case of this subparagraph (b), in an amount not to exceed the amount set forth opposite the relevant line
item in the Initial Budget (subject to deviations that would not constitute Material Adverse Deviations). 
 “Administrative
Agent”: as defined in the preamble hereto. 
 “Administrative Agent’s Account”: with respect to Dollars, the
deposit account of the Administrative Agent identified on Schedule A-1 as the Administrative Agent’s Dollar deposit account, and with respect to Canadian Dollars, the deposit account of the Administrative Agent identified on Schedule A-1 as the
Administrative Agent’s Canadian Dollar deposit account. 
 “Affiliate”: as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this 

  

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definition, “control” of a Person means the power, directly or indirectly, either to (a) vote 10% or more of the securities having ordinary
voting power for the election of directors (or persons performing similar functions) of such Person or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise. Notwithstanding anything
herein to the contrary, in no event shall any Agent or any Lender be considered an “Affiliate” of any Loan Party. 
 “Agent’s Lien”: Lien granted by the Parent and its Subsidiaries to the Collateral Agent under the Loan Documents. 
 “Agents”: the collective reference to the Administrative Agent, the Collateral Agent and the Term Loan B Agent, and “Agent” means any one of them. 
 “Agreed Administrative Expense Priorities”: administrative expenses with respect to the Loan Parties and, with respect to sub-clause
(iii) of clause “first”, any Official Committee, which shall have the following order of priority: 
 first, without duplication (i) the Canadian Carve-Out Expenses, (ii) the US Carve-Out Expenses, (iii) the Wind-Down Costs, (iv) accrued and unpaid disbursements up to the aggregate of the amounts set forth
opposite each line item in the Initial Budget (subject only to deviations that would not constitute Material Adverse Deviations), including, trade and utility expenses, in each case, for the period from the Filing Date through the earlier to occur
of the Acceleration Date and the Final Maturity Date, and (v) accrued and unpaid payroll, payroll taxes and benefits as set forth opposite each such line item in the Initial Budget not to exceed the aggregate amount for the two week period
immediately preceding such Acceleration Date or Final Maturity Date, as applicable; provided, that, the aggregate amount payable pursuant to clauses (i), (ii), (iv) and (v) above (other than with respect to the Directors’
Charge), shall not exceed the sum of (without duplication) (a) (i) the cumulative aggregate principal amount of the Loans projected to have been incurred for payment of such disbursements as of the Acceleration Date or the Final Maturity
Date, as applicable, under the Initial Budget (plus any deviation from the Initial Budget that does not constitute a Material Adverse Deviation), minus (ii) the cumulative aggregate principal amount of the Loans actually
outstanding as of the Acceleration Date or Final Maturity Date, as applicable (without giving effect to any Loans incurred to repay Pre-Petition Revolving Loan Obligations) plus (b) accrued and unpaid payroll, payroll taxes and benefits
as set forth opposite each such line item in the Initial Budget not to exceed the aggregate amount for the two week period immediately preceding such Acceleration Date or Final Maturity Date (which amount may only be used to fund such disbursements)
plus (c) an amount not to exceed $5,000,000 for accrued and unpaid professional fees through such Acceleration Date or Final Maturity Date, as applicable (which amount may only be used to fund such disbursements); provided,
further, that, in the case of clauses (i), (ii), (iii) and (iv) above, such disbursements, expenses and fees shall not include any disbursements, expenses or fees (1) in excess of $100,000 incurred by the Official Committee
related to the investigation of any claims against (x) the Agents or any Lender or their claims or security interests in or Liens on, the Collateral whether under this Agreement or any other Loan Document and (y) any Pre-Petition Agent or
any Pre-Petition Lender under the Pre-Petition 

  

 3 

 
Credit Agreement or their claims or security interests in connection with the Pre-Petition Credit Agreement or any of the other loan documents or instruments
entered into in connection therewith, (2) in connection with using or seeking to use cash collateral without the consent of the Agents, (3) in connection with using or seeking to use any insurance proceeds related to the Collateral without
the consent of the Agents, (4) in connection with incurring Indebtedness other than in accordance with the Initial Budget or other than as expressly permitted herein, (5) in connection with any other action contrary to the Bankruptcy Court
Orders or this Agreement, or (6) incurred by the Official Committee or the Monitor, in each case, in respect of any Avoidance Action or otherwise related to the preparation for, or commencement or prosecution of, any claims or proceedings
against (x) the Agents or any Lender or their claims or security interests in or Liens on, the Collateral whether under this Agreement or any other Loan Document and (y) any Pre-Petition Agent or any Pre-Petition Lender under the
Pre-Petition Credit Agreement or their claims or security interests in connection with the Pre-Petition Credit Agreement or any of the other loan documents or instruments entered into in connection therewith. 
 second, all Obligations in accordance with Section 11.5, 
 third, the junior superpriority administrative claims of the Pre-Petition Lenders under Section 507(b) of the US Bankruptcy
Code, and 
 fourth, all other allowed administrative expenses under Section 503(b) of the US Bankruptcy Code.

 “Aggregate Exposure”: with respect to any Lender at any time, an amount equal to (a) until the Interim Facility
Effective Date, the aggregate amount of such Lender’s Commitments at such time and (b) thereafter, the sum of (i) the amount of such Lender’s Term Loan B Commitments then in effect plus the aggregate then unpaid principal amount
of such Lender’s Term Loans, and (ii) the amount of such Lender’s Revolving Credit Commitment then in effect or, if the Revolving Credit Commitments have been terminated, the amount of such Lender’s Revolving Extensions of Credit
then outstanding. 
 “Aggregate Exposure Percentage”: with respect to any Lender at any time, the ratio (expressed as a
percentage) of such Lender’s Aggregate Exposure at such time to the sum of the Aggregate Exposures of all Lenders at such time. 
 “Agreement”: this Credit Agreement, as amended, restated, supplemented, replaced or otherwise modified from time to time. 
 “Applicable Currency”: with respect to any Obligation, the currency in which such Obligation is denominated. 
 “Applicable Jurisdiction”: with respect to any Loan Party, the states or provinces in which such Loan Party does a material amount of business or has material operations, as determined on the Interim Facility Effective Date
by the Borrower, in consultation with the Agents. 
  

 4 

 “Applicable Margin”: the Applicable Revolver Margin or the Applicable Term Margin as the
context allows. 
 “Applicable Prepayment Premium”: shall mean the Applicable Prepayment Premium (as defined in the
Pre-Petition Credit Agreement) to the extent that it is or becomes due and payable under the Pre-Petition Credit Agreement. 
 “Applicable Revolver Margin”: with respect to each Revolving Credit Loan that is a (i) Eurodollar Loan, 5.00%, and (ii) Base Rate Loan, 4.00%. 
 “Applicable Term Margin”: with respect to each Term Loan that is a (i) Eurodollar Loan, 9.75%, and (ii) Base Rate Loan, 8.75%.

 “Arranger”: shall have no meaning for purposes of this Agreement. 
 “Asset Sale”: any Disposition of Property or series of related Dispositions of Property (x) with respect to which the aggregate
amount of Net Cash Proceeds received by the Parent or any of its Subsidiaries exceeds $25,000 and (y) that is not a Disposition permitted by any of clauses (b), (c), (d), (e), (g), (i), (j), (k) or (l) of Section 7.5. 

“Assignment and Acceptance”: as defined in Section 10.6(b). 
 “Availability”: as of any date of determination, the amount that the Borrower is entitled to borrow as Revolving Credit Loans and/or
request as Letters of Credit under this Agreement (after giving effect to all then outstanding Obligations (other than Bank Product Obligations) and all sublimits and reserves then applicable hereunder). 
 “Available Revolving Credit Commitment”: with respect to any Revolving Credit Lender at any time, an amount equal to the excess, if any,
of (a) such Lender’s Revolving Credit Commitment then in effect over (b) such Lender’s Revolving Extensions of Credit then outstanding; provided, that in calculating any Lender’s Revolving Extensions of Credit
for the purpose of determining such Lender’s Available Revolving Credit Commitment pursuant to Section 2.10(a), but not for any other purpose (including Section 2.8), the aggregate principal amount of Swing Line Loans then outstanding
shall be deemed to be zero. 
 “Avoidance Actions:” all causes of action arising under Sections 542, 544, 545, 547,
548, 549, 550, 551, 553(b) or 724(a) of the US Bankruptcy Code, or any similar causes of action arising under the CCAA, BIA or other federal or provincial statute in Canada, together with any proceeds therefrom. 
 “Avoided Payments”: as defined in Section 2.13(g). 
 “Bank Product”: any financial accommodation extended to Parent and/or its Subsidiaries by a Bank Product Provider (other than pursuant to the Agreement) including: (a) credit cards,
(b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions, and/or (f) cash management, including controlled disbursement, accounts or services. 
  

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 “Bank Product Agreements”: the Pre-Petition Bank Product Agreements and from and after
the Interim Facility Effective Date, those agreements entered into from time to time by Parent and/or its Subsidiaries with a Bank Product Provider in connection with the obtaining of any of the Bank Products. 
 “Bank Product Obligations”: the Pre-Petition Bank Product Obligations and from and after the Interim Facility Effective Date, all
obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by the Parent and/or its Subsidiaries to any Bank Product Provider pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the
payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all such amounts that Parent and/or its Subsidiaries are obligated to reimburse to any Agent or any Lender
as a result of such Agent or such Lender purchasing participations from, or executing indemnities or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided by such Bank Product Provider to the Parent or its
Subsidiaries. 
 “Bank Product Provider”: Wells Fargo, any other Person that is or becomes a Revolving Credit Lender
hereunder and/or any of their respective Affiliates. 
 “Bank Product Reserve”: as of any date of determination, the lesser
of (a) $25,000,000, and (b) the amount of reserves that the Administrative Agent has established (based upon the Bank Product Providers’ reasonable determination of the credit exposure of Parent and its Subsidiaries in respect of Bank
Products) in respect of (x) Bank Products then provided or outstanding and (y) Bank Products provided pursuant to the terms of the Pre-Petition Bank Product Agreements, provided, however, that in order to qualify as a Bank
Product Reserve, (i) such reserve must be established (x) in the case of Bank Products provided pursuant to the Pre-Petition Bank Product Agreements, in accordance with the terms of the Pre-Petition Credit Agreement and (y) in the
case of Bank Products provided under this Agreement, at or about the time the Bank Product Provider first provides the applicable Bank Product and (ii) such reserve may only be established with respect to a Bank Product being provided by Wells
Fargo or one of its Affiliates; provided, further that any Bank Products that terminate and are charged to the Loan Account shall no longer be the subject of any Bank Product Reserve; provided, further however, to the extent
that the Bank Product Obligations do not materially change or increase from the Bank Products Obligations in existence on the Interim Facility Effective Date, then the Bank Product Reserve shall not exceed $250,000. 
 “Bankruptcy Code”: (a) the US Bankruptcy Code or (b) the Canadian Bankruptcy Statutes, in each case as applicable. 

“Bankruptcy Court”: (a) individually, the US Bankruptcy Court or the Canadian Bankruptcy Court, as applicable and
(b) collectively, the US Bankruptcy Court and the Canadian Bankruptcy Court, as the context allows. 
 “Bankruptcy Court
Orders”: the Interim Bankruptcy Court Orders and the Final Bankruptcy Court Orders. 
 “Base Rate”: the US Base
Rate or the Canadian Base Rate, as applicable. 
  

 6 

 “Base Rate Loans”: Loans (or any portion thereof) for which the applicable rate of
interest is based upon the Base Rate. 
 “Benefited Lender”: as defined in Section 10.7(a). 
 “BIA”: the Bankruptcy and Insolvency Act (Canada), as amended and in effect from time to time, and any successor statutes. 

“Board”: the Board of Governors of the Federal Reserve System of the United States (or any successor). 
 “Borrower”: as defined in the preamble hereto. 
 “Borrowing Base”: as of any date of determination, the result of: 
 (a) (i) 85% of the
amount of Eligible Domestic Accounts, plus  
 (ii) the lower of 
 (A) $35,000,000 or such lesser amount as may represent the limits of liability of Eligible Foreign Accounts Credit Insurance; or

 (B) 75% of the amount of Eligible Foreign Accounts, less the amount of the deductible under Eligible Foreign
Account Credit Insurance; 
 less the amount, if any, of the Dilution Reserve, plus 
 (b) the lowest of  
 (i) $37,500,000, 
 (ii) 50% of the value of Eligible Inventory, 
 (iii) 75% times the most recently determined Net Liquidation Percentage times the book value of the Borrowing Base
Parties’ Inventory, and 
 (iv) 75% of the amount of credit availability created by clause (a) above, minus

 (c) the sum of (without duplication) (i) the Bank Product Reserve, (ii) the Carve-Out Expense Reserve and (iii) the
aggregate amount of reserves, if any, established by the Administrative Agent under Section 2.5(c). 
 “Borrowing Base
Certificate”: a certificate signed by a Responsible Officer of the Parent, substantially in the form of Exhibit I. 
  

 7 

 “Borrowing Base Parties”: Parent, Borrower, Pope & Talbot Pulp Sales U.S.,
Inc., Pope & Talbot Lumber Sales, Inc., P&T Factoring Ltd. Partnership, P&T Finance Three LLC and such other Loan Parties as are designated by the Borrower from time to time, subject to completion of a collateral audit with respect
to such other Loan Parties, the results of which shall be reasonably satisfactory to the Administrative Agent, and “Borrowing Base Party” means any one of them. 
 “Borrowing Date”: any Business Day specified by the Borrower in a Borrowing Notice in accordance with Section 2.3 and Section 2.6 as a date on which the relevant Lenders are requested to
make Loans hereunder. 
 “Borrowing Notice”: with respect to any request for borrowing of Loans hereunder, a notice from the
Borrower, substantially in the form of, and containing the information prescribed by, Exhibit G, delivered to the Administrative Agent. 
 “Budget Carryover Amount” for any week period (ending on a Friday of each week), (a) in the case of disbursements, the excess of (i) the cumulative aggregate disbursements projected under the Initial Budget to
have been made in all weeks ending prior to such week, over (ii) the cumulative aggregate disbursements actually made in all such prior weeks, and (b) in the case of collections, the excess of (i) the cumulative aggregate collections
actually received in all weeks ending prior to such week over (ii) the cumulative aggregate collections projected under the Initial Budget to have been received in all such prior weeks. The amount of the Budget Carryover Amount for any week
shall be itemized in the Variance Report. Notwithstanding the foregoing, (x) any amount included in any disbursement line item in the Initial Budget in respect of any pre-petition obligations of the Loan Parties that were incurred prior to the
CCAA Filing Date and which the Initial Budget provides are payable prior to December 31, 2007, must be paid prior to such date and may not be carried over past December 31, 2007 without the Agents’ written consent, and (y) upon
the earlier to occur of the Acceleration Date and the Final Maturity Date, the Budget Carryover Amount shall be deemed to be zero. 
 “Business Day”: (a) for all purposes other than as covered by clause (b) below, a day other than a Saturday, Sunday or other day on which commercial banks in New York City, New York, Los Angeles, California and
Toronto, Canada are authorized or required by law to close and (b) with respect to all notices and determinations in connection with, and payments of principal and interest on, Eurodollar Loans, any day which is a Business Day described in
clause (a) and which is also a day for trading by and between banks in Dollar deposits or Canadian Dollar deposits in the interbank eurodollar market. 
 “Canadian Bankruptcy Court”: the Ontario Court, or, following the transfer of the CCAA Proceedings to British Columbia, the Supreme Court of British Columbia, as the context may require. 

“Canadian Bankruptcy Statutes”: the CCAA or the BIA, in each case as applicable. 
  

 8 

 “Canadian Base Rate”: the rate of interest announced, from time to time, by Bank of
Montreal as its “prime rate”, with the understanding that the “prime rate” is one of such bank’s base rates (not necessarily the lowest of such rates) and serves as the basis upon which effective rates of interest are
calculated for those loans making reference thereto. 
 “Canadian Benefit Plans”: all employee benefit plans maintained or
contributed to by any Loan Party that are not Canadian Pension Plans including, without limitation, all profit sharing, savings, supplemental retirement, retiring allowance, severance, pension, deferred compensation, welfare, bonus, incentive
compensation, phantom stock, supplementary unemployment benefit plans or arrangements and all life, health, dental and disability plans and arrangements in which the employees or former employees of any Loan Party employed in Canada participate or
are eligible to participate, but excluding all stock option or stock purchase plans. 
 “Canadian Carve-Out Expenses”: the
Administration Charge Expenses and the Directors’ Charge Expenses to the extent that such expenses are secured by charges that have priority over the Obligations and the DIP Lenders Charge as provided for in the definition of Agreed
Administrative Expense Priorities and subject to the terms of the Canadian DIP Order. 
 “Canadian Collateral”: all Property
of the Loan Parties, now owned or hereafter acquired, upon which a Lien is purported to be created by this Agreement and the Canadian Security Documents. 
 “Canadian DIP Order”: collectively, the amended and restated Initial Order of the Canadian Bankruptcy Court issued in the CCAA Proceedings, which, among other matters but not by way of limitation,
authorizes the Loan Parties to obtain credit, incur (or guarantee) Indebtedness, and grant Liens under this Agreement and the other Loan Documents and provides for the super-priority of the Collateral Agent’s and the Lenders’ claims,
subject only to the exceptions as to priority provided therein and which order shall be satisfactory in form and substance to the Agents and Lenders, together with all extensions, modifications and amendments thereto, in form and substance
satisfactory to the Agents and Lenders. 
 “Canadian DIP Order Entry Date”: the date on which the Canadian DIP Order shall
have been made by the Canadian Bankruptcy Court. 
 “Canadian Dollars” and “CDN$”: the lawful currency of
Canada. 
 “Canadian Eurodollar Rate”: the rate per annum, determined by the Administrative Agent in accordance with its
customary procedures, and utilizing such electronic or other quotation sources as it considers appropriate (rounded upwards, if necessary, to the next 1/100%), to be the rate at which Canadian Dollar deposits (for delivery on the first day of the
requested Interest Period) are offered to major banks in the London interbank market 2 Business Days prior to the commencement of the requested Interest Period, for a term and in an amount comparable to the Interest Period and the amount of the
Eurodollar Loan requested (whether as an initial Eurodollar Loan or as a continuation of an existing Eurodollar Loan or as a conversion of a Base Rate Loan to a Eurodollar Loan) by the Borrower in accordance with this Agreement, which determination
shall be conclusive in the absence of manifest error. 
  

 9 

 “Canadian General Security Agreement”: the Pre-Petition Canadian General Security
Agreements and each Canadian general security agreement or similar agreement or instrument executed and delivered by the Canadian Loan Parties in favor of the Collateral Agent, for the benefit of the Secured Parties, in each case in form and
substance reasonably satisfactory to the Collateral Agent as the same may be amended, supplemented, replaced, restated or otherwise modified from time to time. 
 “Canadian Loan Parties”: all Loan Parties organized under the law of Canada or any province thereof. 
 “Canadian Pension Plans”: any plan which is considered to be a pension plan for the purposes of any applicable pension benefits standards statute and/or regulation in Canada established, maintained or
contributed to by any Loan Party, their respective employees or former employees. 
 “Canadian Security Documents”: the
Pre-Petition Canadian Security Documents and the documents set forth on Schedule C-2 hereto and each other document designated as such by the Collateral Agent. 
 “Capital Expenditures”: for any period, with respect to any Person, the aggregate of all expenditures (whether paid in cash or financed) by such Person for the acquisition or leasing (pursuant to a
capital lease) of Capital Stock or fixed or capital assets or additions to equipment (including replacements, capitalized repairs and improvements during such period) which are required to be capitalized under GAAP on a balance sheet of such Person
and whether such expenditures are paid or payable during such period. 
 “Capital Lease Obligations”: with respect to any
Person, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which (i) obligations are required to be classified
and accounted for as capital leases on a balance sheet of such Person under GAAP or (ii) transaction is of a type commonly known as a “synthetic lease” (i.e., a lease transaction that is treated as an operating lease for accounting
purposes but with respect to which payments of rent are intended to be treated as payments of principal and interest on a loan for United States federal income tax purposes); and, for the purposes of this Agreement, the amount of such obligations at
any time shall be the capitalized amount thereof at such time determined in accordance with GAAP. 
 “Capital Stock”: 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) and any and all warrants, rights or options to
purchase any of the foregoing. 
 “Capital Stock Issuance Proceeds”: as of any date of determination, 100% of the Net Cash
Proceeds received on such date from the issuance of any Capital Stock of Parent or any of its Subsidiaries. 
  

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 “Carve-Out”: individually and collectively, the amounts described in clause
“first” of the definition of “Agreed Administrative Expense Priorities” in the amounts allowed by the applicable Bankruptcy Court. 
 “Carve-Out Expense Reserve”: as of any date of determination, a reserve amount not to exceed $5,000,000 in connection with the aggregate amount of the Carve-Out, Other Statutory Liabilities and the
Directors’ Charge; provided, that the Carve-Out Expense Reserve may be adjusted in accordance with Section 2.5(c). 
 “Cash Equivalents”: (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States of America or Canada or issued by any agency thereof and backed by the full faith and credit of the
United States of America or Canada or any agency, state, province or territory thereof, in each case maturing within one year from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank
deposits having maturities of one year or less from the date of acquisition issued by any Lender or by any commercial bank organized under the laws of the United States or any state thereof (including any foreign bank which is a Subsidiary of a
commercial bank or holding company thereof which is organized under any such laws) or is a bank listed in Schedule I or II of the Bank Act (Canada), in each case having combined capital and surplus of not less than $250,000,000;
(c) commercial paper of an issuer rated at least A-1 by S&P or P-1 by Moody’s or carrying an equivalent rating by an United States nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings
of commercial paper issuers generally, and maturing within 270 days from the date of acquisition; (d) repurchase obligations of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more
than 30 days with respect to securities issued or fully guaranteed or insured by the United States or Canada; (e) securities with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state,
province, commonwealth or territory of the United States or Canada, by any political subdivision or taxing authority of any such state, province, commonwealth or territory or by any foreign government, the securities of which state, commonwealth,
territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least A by S&P or A by Moody’s; (f) securities with maturities of six months or less from the date of acquisition backed by
standby letters of credit issued by any commercial bank satisfying the requirements of clause (b) of this definition; and (g) shares of money market mutual or similar funds which invest primarily in assets satisfying the requirements of
clauses (a) through (f) of this definition. 
 “CCAA”: the Companies’ Creditors Arrangement Act (Canada), as
amended and in effect from time to time, and any successor statutes. 
 “CCAA Filing Date”: October 29, 2007

 “CCAA Proceedings”: as defined in the recitals hereto. 
 “Change in Law”: as defined in Section 2.21(a). 
 “Change of Control”: the occurrence of any of the following events: (a) the Parent shall cease to own and control, directly or indirectly, all of the economic and voting rights 

  

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associated with all of the outstanding Capital Stock of the Borrower and each Guarantor (other than Parent) free and clear of all Liens (other than Liens in
favor of the Collateral Agent and other than non consensual Liens permitted by Section 7.3 and arising by operation of law); or (b) the board of directors of the Parent shall cease to consist of a majority of Continuing Directors.

 “Chapter 11 Cases”: as defined in the recitals hereto. 
 “Chapter 11 Filing Date”: the date of filing of the Chapter 11 Cases. 
 “Code”: the United States Internal Revenue Code of 1986, as amended from time to time (or any successor statute thereto) and the
regulations thereunder. 
 “Collateral”: all Property of the Loan Parties as further described in Section 11.4, now
owned or hereafter acquired, upon which a Lien is, or is purported to be, created by this Agreement, any Security Document, including, without limitation, the Canadian Collateral under the Canadian Security Documents. 
 “Collateral Access Agreement”: a landlord waiver, bailee letter or acknowledgement agreement of a lessor, warehouseman, processor,
consignee or other Person in possession of, having a Lien upon, or having rights or interest in the Loan Parties’ books and records or Inventory, executed in connection with the Pre-Petition Credit Agreement. 
 “Collateral Agent”: as defined in the preamble hereto. 
 “Collateral Agent Advances”: as defined in Section 9.12(a). 
 “Collateral
Agent’s Account”: the deposit account of the Collateral Agent identified on Schedule C-3. 
 “Commitment”:
with respect to any Lender, the sum of the Term Loan B Commitment and the Revolving Credit Commitment of such Lender. 
 “Commitment Fee Rate”: with respect to the Revolving Credit Commitments, 0.50% per annum. 
 “Commonly
Controlled Entity”: an entity, whether or not incorporated, that is under common control with the Parent within the meaning of Section 4001 of ERISA or is part of a group that includes the Parent and that is treated as a single
employer under Section 414 of the Code. 
 “Compliance Certificate”: a certificate duly executed by a Responsible
Officer, substantially in the form of Exhibit A. 
 “Constituent Documents”: with respect to any Person, (a) the
articles or deed of incorporation, certificate of incorporation, memorandum and articles of association, or certificate of formation (or the equivalent organizational documents) of such Person, (b) the by-laws, articles of association,
operating agreement (or the equivalent governing documents) of such Person and (c) any document setting forth the manner of election and duties of the directors or managing members of such Person (if any) and the designation, amount or relative
rights, limitations and preferences of any class or series of such Person’s Capital Stock. 
  

 12 

 “Continuing Directors”: the directors of the Parent on the Interim Facility Effective
Date and each other director of the Parent, if, in each case, such other director’s nomination for election to the board of directors of the Parent is recommended by at least a majority of the then Continuing Directors. 
 “Contractual Obligation”: with respect to any Person, any provision of any security issued by such Person or of any agreement,
instrument or other undertaking to which such Person is a party or by which it or any of its Property is bound. 
 “Currency
Due”: as defined in Section 10.18. 
 “Currency Exchange Rate”: with respect to a currency, the rate quoted by
Wells Fargo Bank, National Association as the spot rate for the purchase by it of such currency with another currency at approximately 10:00 a.m. (California time) on the date as of which the foreign exchange computation is made. 
 “Default”: any of the events specified in Section 8, whether or not any requirement for the giving of notice, the lapse of time, or
both, has been satisfied. 
 “Derivatives Counterparty”: as defined in Section 7.6. 
 “Designated Account”: with respect to Dollars, the deposit account of the Borrower identified on Schedule D-1 as the Designated Account
for Dollars and, with respect to Canadian Dollars, the deposit account of the Borrower identified on Schedule D-1 as the Designated Account for Canadian Dollars. 
 “Dilution”: as of any date of determination, a percentage, based upon the experience of the immediately prior 90 consecutive days, that is the result of dividing the Dollar Equivalent of (a) bad
debt write-downs, discounts, advertising allowances, credits, or other dilutive items with respect to the Borrowing Base Parties’ Accounts during such period, by (b) the Borrowing Base Parties’ billings with respect to Accounts during
such period. 
 “Dilution Reserve”: as of any date of determination, an amount sufficient to reduce the advance rate against
Eligible Accounts by 1 percentage point for each percentage point by which Dilution is in excess of 5%. 
 “DIP Lenders
Charge”: as defined in the Canadian DIP Order. 
 “Directors’ Charge”: a charge not to exceed CDN$ 13,000,000
to secure the Directors’ Charge Expenses. 
 “Directors’ Charge Expenses”: those disbursements, expenses and fees
secured by the Directors’ Charge, subject to and in accordance with the terms of paragraphs 21 through 23 of the Canadian DIP Order. 
  

 13 

 “Disposition”: with respect to any Property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof; and the terms “Dispose” and “Disposed of” shall have correlative meanings. 
 “Dollar Equivalent”: at any time, (a) as to any amount denominated in Dollars, the amount thereof at such time, and (b) as to
any amount denominated in a currency other than Dollars, the equivalent amount in Dollars as determined by the Administrative Agent at such time on the basis of the Currency Exchange Rate for the purchase of Dollars with such currency. 

“Dollars” and “$”: lawful currency of the United States. 
 “Duty Refunds”: refunds of countervailing and/or anti-dumping duties with respect to softwood lumber or other similar customs duties, in
each case on deposit with the U.S. Treasury Department paid by a U.S. Governmental Authority to Parent, Borrower or any of their Subsidiaries. 
 “EDC”: Export Development Canada, a corporation established by an act of the Parliament of Canada. 
 “Eligible Accounts”: all Eligible Domestic Accounts and all Eligible Foreign Accounts. 
 “Eligible
Domestic Accounts”: those Accounts created by any Borrowing Base Party in the ordinary course of its business, that arise out of the sale of goods or rendition of services, that comply with each of the representations and warranties
respecting Eligible Domestic Accounts made in the Loan Documents, and that are not excluded as ineligible by virtue of one or more of the excluding criteria set forth below; provided, however, that such criteria may be revised from
time to time by the Administrative Agent in its Permitted Discretion to address the results of any audit performed by the Administrative Agent from time to time after the Interim Facility Effective Date. In determining the amount to be included,
Eligible Domestic Accounts shall be calculated net of customer deposits and unapplied cash. Eligible Domestic Accounts shall not include the following: 
 (a) Accounts that the Account Debtor has failed to pay within 60 days of original invoice date or 30 days of due date, or Accounts with selling terms of more than 60 days, 
 (b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that Account Debtor (or its Affiliates) are deemed
ineligible under clause (a) above, 
 (c) Accounts with respect to which the Account Debtor is an Affiliate of any Borrowing Base Party
or any Guarantor or an employee or agent of any Borrowing Base Party or any Guarantor or any Affiliate of Parent, 
 (d) Accounts arising in
a transaction wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional,

  

 14 

 (e) Accounts that are not payable in Dollars or Canadian Dollars, 
 (f) Accounts with respect to which the Account Debtor either (i) does not maintain its chief executive office in the United States or Canada, or
(ii) is not organized under the laws of the United States or Canada or any state or province thereof, or (iii) is the government of any foreign country or sovereign state, or of any state, province, municipality, or other political
subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless (y) the Account is supported by an irrevocable letter of credit satisfactory to the Administrative Agent (as to form, substance, and
issuer or domestic confirming bank) that has been delivered to the Administrative Agent and is directly drawable by the Administrative Agent or (z) the Account is covered by credit insurance in form, substance, and amount, and by an insurer,
satisfactory to the Administrative Agent, 
 (g) Accounts with respect to which the Account Debtor is either (i) the United States or
Canada or any department, agency, or instrumentality of the United States or Canada (exclusive, however, of Accounts with respect to which the Account Debtor is the United States or Canada or any department, agency or instrumentality of the United
States or Canada and the applicable Borrowing Base Party has complied, to the reasonable satisfaction of the Administrative Agent, with the Assignment of Claims Act, 31 USC §3727 or the Financial Administration Act (Canada), as the case may
be), or (ii) any state of the United States, 
 (h) Accounts with respect to which the Account Debtor is a creditor of a Borrowing Base
Party or has or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of the Account, to the extent of such claim, right of setoff, or dispute, 
 (i) Accounts with respect to an Account Debtor whose total obligations owing to the Borrowing Base Parties exceed 10% (or, in the case of Cartiere Burgo
spa and its Subsidiaries, 15%; such percentage, as applied to a particular Account Debtor, being subject to reduction by the Administrative Agent in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates) of all
Eligible Accounts (including all Eligible Foreign Accounts), to the extent of the obligations owing by such Account Debtor in excess of the applicable percentage; provided, however, that, in each case, the amount of Eligible Accounts
that are excluded because they exceed the foregoing percentages shall be determined by the Administrative Agent based on all of the otherwise Eligible Accounts prior to giving effect to any eliminations based upon the foregoing concentration limits,

 (j) Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, is not Solvent, has gone out of business, or
as to which any Borrowing Base Party has received notice of an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account Debtor, 
 (k) Accounts with respect to which the Account Debtor is located in a state or jurisdiction (e.g., New Jersey, Minnesota, and West Virginia) that requires, as a condition to access to the courts of such jurisdiction,
that a creditor qualify to transact business, file a 

  

 15 

 
business activities report or other report or form, or take one or more other actions, unless the Borrowing Base Party that owns the Account has so
qualified, filed such reports or forms, or taken such actions (and, in each case, paid any required fees or other charges), except to the extent that such Borrowing Base Party may qualify subsequently as a foreign entity authorized to transact
business in such state or jurisdiction and gain access to such courts, without incurring any cost or penalty viewed by the Administrative Agent to be significant in amount, and such later qualification cures any access to such courts to enforce
payment of such Account, 
 (l) Accounts, the collection of which, the Administrative Agent, in its Permitted Discretion, believes to be
doubtful by reason of the Account Debtor’s financial condition, 
 (m) Accounts that are not subject to a valid and perfected first
priority Agent’s Lien; provided, that Accounts that are subject only to the Administration Charge (as defined in the Canadian DIP Order) and the Directors’ Charge shall not be excluded as Eligible Domestic Accounts solely by reason
of this clause (m), 
 (n) Accounts with respect to which (i) the goods giving rise to such Account have not been shipped and billed to
the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor, or 
 (o)
Accounts that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by any Borrowing Base Party of the subject contract for goods or services. 
 “Eligible Foreign Accounts”: those Accounts created by any Borrowing Base Party in the ordinary course of its business, that arise out
of the sale of goods or rendition of services, that would constitute Eligible Domestic Accounts with the following exceptions: (a) the selling terms set forth in clause (a) of the definition of Eligible Domestic Accounts shall not be more
than 145 days, and the number of days within the original invoice date in which the Account Debtor must make payment set forth in clause (a) of the definition of Eligible Domestic Accounts shall not be more than 145 days, and (b) the
exclusionary provisions of clause (f) of the definition of Eligible Domestic Accounts shall not apply so long as the Accounts are insured by Eligible Foreign Accounts Credit Insurance. In determining the amount to be included, Eligible Foreign
Accounts shall be calculated net of customer deposits and unapplied cash. 
 “Eligible Foreign Accounts Credit Insurance”:
that certain policy number DC/08800108/AE issued by QBE Insurance Corporation, or such other credit insurance in form, substance, and amount, and by an insurer, reasonably satisfactory to the Administrative Agent, insuring the Accounts of the
Borrowing Base Parties owed by Account Debtors located outside of Canada or the United States, which policy has been collaterally assigned to the Administrative Agent for the benefit of the Agents and the Lenders. 
 “Eligible Inventory”: Inventory consisting of finished goods held for sale in the ordinary course of the Borrowing Base Parties’
business and raw materials, that complies with each of the representations and warranties respecting Eligible Inventory made in the Loan Documents, and that is not excluded as ineligible by virtue of one or more of the excluding 

  

 16 

 
criteria set forth below; provided, however, that such criteria may be revised from time to time by the Administrative Agent in its Permitted
Discretion to address the results of any audit or appraisal performed by the Administrative Agent from time to time after the Interim Facility Effective Date. In determining the amount to be so included, Inventory shall be valued at the lower of
cost or market on a basis consistent with the Borrowing Base Parties’ historical accounting practices. An item of Inventory shall not be included in Eligible Inventory if: 
 (a) the Borrowing Base Party does not have good, valid, and marketable title thereto, 
 (b) it is not located at one of the locations in the continental United States or Canada set forth on Schedule E-1 (as such schedule may be amended from
time to time with the consent of the Administrative Agent, which consent shall not be unreasonably withheld or delayed), 
 (c) it is located
on real property leased by a Borrowing Base Party or in a contract warehouse or in another location not owned by a Borrowing Base Party, in each case, unless (i) it is subject to a Collateral Access Agreement or the Administrative Agent, in its
Permitted Discretion, has established a reserve under Section 2.5(c), and (ii) it is segregated or otherwise separately identifiable from goods of others, if any, stored on the premises, or it is located on the property of a customer of a
Borrowing Base Party. 
 (d) it is not subject to a valid and perfected first priority Agent’s Lien; provided, that Inventory
that is subject only to the Administration Charge (as defined in the Canadian DIP Order) and the Directors’ Charge shall not be excluded as Eligible Inventory solely by reason of this clause (d), 
 (e) it consists of goods returned or rejected by the applicable Borrowing Base Party’s customers, or 
 (f) it consists of goods that are obsolete or slow moving, restrictive or custom items, work-in-process or goods that constitute spare parts, packaging
and shipping materials, supplies used or consumed in a Borrowing Base Party’s business, bill and hold goods, defective goods, “seconds,” or Inventory acquired on consignment. 
 “Environmental Actions”: refers to any complaint, summons, citation, notice, directive, order, claim, litigation, investigation, notice
of violation, judicial or administrative proceeding, judgment, letter or other written communication from any Governmental Authority, or any third party involving violations of Environmental Laws or Releases of Materials of Environmental Concern
from (i) any assets, properties or businesses of the Parent, its Subsidiaries or any predecessor in interest; (ii) adjoining properties or businesses; or (iii) or onto any facilities which received Materials of Environmental Concern
generated by the Parent, its Subsidiaries or any predecessor in interest. 
 “Environmental Costs”: any monetary
obligations, losses, liabilities (including strict liability), damages, punitive damages, consequential damages, treble damages, costs and expenses (including all reasonable out-of-pocket fees, disbursements and expenses of counsel, out-of-pocket
expert and consulting fees and out-of-pocket costs for environmental site 

  

 17 

 
assessments, remedial investigation and feasibility studies), fines, penalties, sanctions and interest incurred as a result of any Environmental Action filed
against the Parent or any of its Subsidiaries by any Governmental Authority or any third party which relate to any violations of Environmental Laws, Remedial Actions, Releases or threatened Releases from or onto any property presently or formerly
owned by the Parent or any of its Subsidiaries or a predecessor in interest, or any facility which received Materials of Environmental Concern generated by the Parent, any of its Subsidiaries or a predecessor in interest. 
 “Environmental Laws”: any and all laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or other legally enforceable
requirements (including, without limitation, common law) of any international authority, foreign government, the United States, Canada, or any state, provincial, local, municipal or other governmental authority, regulating, relating to or imposing
liability or standards of conduct concerning protection of the environment or of human health, or employee health and safety as it relates to exposure to Materials of Environmental Concern, as has been, is now, or may at any time hereafter be, in
effect. 
 “Environmental Lien”: any Lien, for any liabilities, obligations or costs incurred by a Government Authority
under or pursuant to any Environmental Laws. 
 “Environmental Permits”: any and all permits, licenses, approvals,
registrations, notifications, exemptions and other authorizations required under any Environmental Law. 
 “ERISA”: the
United States Employee Retirement Income Security Act of 1974, as amended from time to time. 
 “Eurocurrency Reserve
Requirements”: for any day, the aggregate (without duplication) of the maximum rates (expressed as a decimal fraction) of reserve requirements in effect on such day (including, without limitation, basic, supplemental, marginal and emergency
reserves) under any regulations of the Board or other Governmental Authority having jurisdiction with respect thereto dealing with reserve requirements prescribed for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board) maintained by a member bank of the Federal Reserve System. 
 “Eurodollar
Loans”: Loans (or any portion thereof) for which the applicable rate of interest is based upon the Eurodollar Rate. 
 “Eurodollar Notice”: a notice signed by a Responsible Officer of the Borrower, substantially in the form of Exhibit I. 
 “Eurodollar Rate”: the US Eurodollar Rate or the Canadian Eurodollar Rate, as applicable. 
 “Eurodollar Tranche”: the collective reference to Eurodollar Loans the then current Interest Periods with respect to all of which begin on the same date and end on the same later date (whether or not such Loans shall
originally have been made on the same day). 
  

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 “Event of Default”: any of the events specified in Section 8, provided, that
any requirement for the giving of notice, the lapse of time, or both, has been satisfied. 
 “Existing Indentures”:
(i) the indenture dated June 2, 1993, between the Parent and Chemical Trust Company of California, as Trustee, and (ii) the indenture dated July 30, 2002, between the Parent and J.P. Morgan Trust Company, National
Association, as Trustee. 
 “Extraordinary Receipts”: any cash received by the Parent or any of its Subsidiaries net of any
expenses incurred in the receipt or collection thereof, in respect of (i) refunds of United States, Canadian, state, provincial, local or other foreign taxes other than Ordinary Refunds, Duty Refunds and refunds of GST, (ii) pension plan
reversions, (iii) judgments or proceeds of settlements in connection with any legal action (including, without limitation, the proceeds of any judgment, settlement or other consideration of any kind in connection with any cause of action
arising under any applicable Bankruptcy Code or otherwise (including Avoidance Actions but excluding any Avoided Payments) other than in connection with any Recovery Event, (iv) condemnation awards (and payments in lieu thereof) other than in
connection with any Recovery Event, (v) insurance proceeds received in connection with any event other than any Recovery Event and other than proceeds of business interruption insurance, and (vi) indemnity payments and purchase price
adjustments received under any asset or stock purchase agreement that do not constitute Net Cash Proceeds subject to Section 2.13(a). 
 “Facility”: each of (a) the Term Loan B Commitments and the Term Loans B made hereunder (the “Term Loan B Facility”), and (b) the Revolving Credit Commitments and the extensions of credit
made hereunder (the “Revolving Credit Facility”). 
 “Fair Market Value”: with respect to any asset or
property, the sale value that would be obtained in an arm’s length transaction between an informed and willing seller under no compulsion to sell and an informed and willing buyer, determined in good faith by (a) a Responsible Officer of
the Parent if the value of such non-cash proceeds is equal to or less than $2,500,000 and (b) in all other circumstances by the independent members of the board of directors of the Parent. 
 “Federal Funds Effective Rate”: for any day, the weighted average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the
quotations for the day of such transactions received by the Administrative Agent from three federal funds brokers of recognized standing selected by it. 
 “Fee Letter”: that certain fee letter between the Borrower and the Agents, in form and substance satisfactory to the Agents. 
 “Filing Date”: shall mean (a) in the case of the CCAA Proceedings, October 29, 2007, and (b) in the case of the Chapter
11 Cases, the date of the filing of and the commencement of the Chapter 11 Cases, which such date shall be no later than November 21, 2007. 
  

 19 

 “Final Bankruptcy Court Orders”: individually and collectively as the context allows
(a) in the case of the Chapter 11 Cases, the final order of the US Bankruptcy Court substantially in the form of the applicable Interim Bankruptcy Court Order, and (b) in the case of the CCAA Proceedings, the Canadian DIP Order, in each
case, as the same may be amended, modified or supplemented from time to time with the express written joinder or consent of the Agents, the Lenders and the Borrower. 
 “Final Bankruptcy Court Order Entry Date”: the date on which each of the applicable Final Bankruptcy Court Orders shall have been entered by the appropriate Bankruptcy Court. 
 “Final Facility Effective Date”: the date on or before 30 days after the Interim Facility Effective Date, on which all of the conditions
precedent set forth in Section 5.2 shall have been satisfied or waived, in accordance with Section 10.1. 
 “Final Maturity
Date”: the date which is the earliest of (i) February 15, 2008, (ii) the date of both (A) the earlier of the effective date and the substantial consummation (as defined in Section 1101(2) of the US Bankruptcy Code),
in each case, of a plan of reorganization in the Chapter 11 Cases that shall have been confirmed by an order entered by the US Bankruptcy Court and (B) the earlier of the effective date and the substantial implementation, in each case, of a
plan of compromise or arrangement in the CCAA Proceedings that shall have been sanctioned by an order entered by the Canadian Bankruptcy Court, (iii) the date which is 30 days following the date of entry of the applicable Interim Bankruptcy
Court Order if the applicable Final Bankruptcy Court Orders has not been entered by the US Bankruptcy Court and if the Canadian DIP Order has not been made by the Canadian Bankruptcy Court, in each case, on or prior to such date, (iv) the date
upon which the Stay of Proceedings expires, (v) the date of the closing of a sale of all or substantially all of the Loan Parties’ assets (which shall include a sale of both the lumber and pulp divisions of the Loan Parties) pursuant to
Section 363 of the US Bankruptcy Code and the CCAA, and (vi) such earlier date on which all Loans and other extensions of credit shall become due and payable in accordance with the terms of this Agreement and the other Loan Documents.

 “Final Period”: the period commencing on the Final Facility Effective Date and ending on the Final Maturity Date.

 “GAAP”: generally accepted accounting principles in the United States as in effect from time to time applied on a
consistent basis. 
 “General Intangibles”: all of each Loan Party’s now owned and/or hereafter acquired right, title
and interest with respect to general intangibles (as that term is defined in the UCC). 
 “Governmental Authority”: any
nation or government, any Federal, state, province, city, town, municipality, county, local or other political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. 
  

 20 

 “GST”: all amounts payable under Part IX of the Excise Tax Act (Canada) or any similar
legislation in any other jurisdiction of Canada, including, without limitation (i) all harmonized sales tax in the Provinces of Nova Scotia, Newfoundland and Labrador and New Brunswick under the Excise Tax Act and (ii) the Quebec sales tax
imposed pursuant to an Act respecting the Quebec sales tax. 
 “Guarantee Obligation”: with respect to any Person (the
“guaranteeing person”), any obligation of (a) the guaranteeing person or (b) another Person (including any bank under any letter of credit), if to induce the creation of which the guaranteeing person has issued a
reimbursement, counterindemnity or similar obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the
“primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any Property
constituting direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise
to maintain the net worth or solvency of the primary obligor, (iii) to purchase Property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make
payment of such primary obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or determinable
amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation,
unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably
anticipated liability in respect thereof as determined by such Person in good faith. 
 “Guarantor”: the Parent and each
Subsidiary of the Parent (other than the Borrower and Pope & Talbot Pulp Sales Europe LLC). 
 “Guaranty”: the
Guaranty to be executed and delivered by each Guarantor, substantially in the form of Exhibit E, as the same may be amended, supplemented, replaced, restated or otherwise modified from time to time. 
 “Hedge Agreements”: all interest rate or currency swaps, caps or collar agreements, foreign exchange agreements, commodity contracts or
similar arrangements entered into by the Parent or its Subsidiaries providing for protection against fluctuations in interest rates, currency exchange rates, commodity prices or the exchange of nominal interest obligations, either generally or under
specific contingencies. 
 “Indebtedness”: of any Person at any date, without duplication, (a) all indebtedness of such
Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of Property or services (other than (x) trade payables incurred in the 

  

 21 

 
ordinary course of such Person’s business and not outstanding for more than 150 days after the date such payable was created and (y) accrued
expenses), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to
Property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such Property), (e) all Capital Lease Obligations of such Person,
(f) all obligations of such Person, contingent or otherwise, as an account party or applicant under acceptance, letter of credit or similar facilities, (g) all obligations of such Person, contingent or otherwise, to purchase, redeem,
retire or otherwise acquire for value any Capital Stock of such Person, (h) all Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (g) above, (i) all obligations and
liabilities, calculated on a basis satisfactory to the Collateral Agent and the Administrative Agent and in accordance with accepted practice, of such Person under Hedge Agreements, (j) all monetary obligations under any receivable factoring,
receivable sales or similar transactions and all monetary obligations under any synthetic lease, tax ownership/operating lease, off-balance sheet financing or similar financing, and (k) all obligations of the kind referred to in clauses
(a) through (j) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on Property owned by such Person, whether or not such Person has assumed or become
liable for the payment of such obligation. The Indebtedness of any Person shall include the Indebtedness of any partnership of or a joint venture in which such Person is a general partner or a joint venturer. 
 “Indemnified Liabilities”: as defined in Section 10.5. 
 “Indemnitee”: as defined in Section 10.5. 
 “Initial Budget”: the cash requirement forecast setting forth cash collections and disbursements of the Loan Parties for the periods covered thereby (which forecast shall include a calculation of
Availability during such period, identify the amount of financing that will be required during each week of such period and identify, on a schedule thereto, the professionals and the projected professional fees and disbursements expected to be paid
to such professionals as Administration Charge Expenses and US Carve-Out Expenses during such period) prepared on a weekly basis by or on behalf of the Borrower and delivered by the Borrower to the Agents and the Lenders on or before the Interim
Facility Effective Date pursuant to Section 5.1(v) hereto and in the form attached hereto as Schedule I-1, together with and as superseded and replaced by the Updated Budget that is required to be delivered by the Borrower to the Agents and the
Lenders, in accordance with Section 6.2(g). 
 “Initial Order”: collectively, the initial order of the Ontario Court
issued in the CCAA Proceedings on October 29, 2007, together with all extensions, modifications and amendments thereto, in form and substance satisfactory to the Agents and Lenders. 
 “Insolvency”: with respect to any Multiemployer Plan, the condition that such Plan is insolvent within the meaning of Section 4245
of ERISA. 
  

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 “Insolvency Proceeding”: any proceeding commenced by or against any Person under any
provision of the Bankruptcy Code or under any other bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, or extensions generally with creditors, or proceedings seeking reorganization,
arrangement, or other similar relief. 
 “Insolvent”: pertaining to a condition of Insolvency. 
 “Intellectual Property”: the collective reference to all rights, priorities and privileges relating to intellectual property, whether
arising under United States, Canada, state, provincial, multinational or foreign laws or otherwise, including, without limitation, copyrights, copyright licenses, patents, patent licenses, trademarks, service-marks, trademark and service-mark
licenses, domain names, data technology, know-how and processes, recipes, formulas, trade secrets, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages
therefrom. 
 “Interest Payment Date”: the first day of each month commencing December 1, 2007. 
 “Interest Period”: with respect to any Eurodollar Loan, (a) initially, the period commencing on the borrowing or conversion date,
as the case may be, with respect to such Eurodollar Loan and ending one month thereafter, as selected by the Borrower in its Borrowing Notice or Eurodollar Notice, as the case may be, given with respect thereto; and (b) thereafter, each period
commencing on the last day of the immediately preceding Interest Period applicable to such Eurodollar Loan and ending one month thereafter, as selected by the Borrower by irrevocable notice to the Administrative Agent not less than three Business
Days prior to the last day of the then current Interest Period with respect thereto; provided, that all of the foregoing provisions relating to Interest Periods are subject to the following: 
 (1) if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Business Day; 
 (2) any Interest Period that would otherwise extend beyond the Final Maturity Date or beyond the date final payment is due on any Term
Loan shall end on the Final Maturity Date or such due date, as applicable; and 
 (3) 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 end on the last Business Day of the calendar month at the end of such Interest
Period. 
 “Interim Bankruptcy Court Orders”: individually and collectively as the context allows, (a) in the case of
the Chapter 11 Cases, the interim order of the US Bankruptcy Court substantially in the form of Exhibit H-1 hereto, and (b) in the case of the CCAA Proceedings, the Canadian DIP Order substantially in the form of Exhibit H-2 hereto, in each
case, as the same may be amended, modified or supplemented from time to time with the express written joinder or consent of the Agents, the Lenders and the Borrower. 
  

 23 

 “Interim Bankruptcy Court Order Entry Date”: the date on which each of the applicable
Interim Bankruptcy Court Orders shall have been entered by the appropriate Bankruptcy Court. 
 “Interim Facility Effective
Date”: the date on which all of the conditions precedent set forth in Section 5.1 shall have been satisfied or waived. 
 “Interim Period”: means the period commencing on the Interim Facility Effective Date and ending on the earlier to occur of (i) the Final Facility Effective Date and (ii) the Final Maturity Date. 
 “Inventory”: all of each Loan Party’s now owned and/or hereafter acquired right, title, and interest with respect to inventory (as
that term is defined in the UCC); such term to include returned, repossessed and reclaimed goods and timber which is severed from the ground. 
 “Investments”: as defined in Section 7.8. 
 “Issuing Lender”: any Revolving Credit Lender
that, at the request of the Borrower and with the consent of the Administrative Agent (not to be unreasonably withheld or delayed), agrees, in such Revolving Credit Lender’s sole discretion, to become an Issuing Lender for the purpose of
issuing Letters of Credit under the Revolving Credit Facility. 
 “IT Systems”: all electronic data processing, information,
record-keeping, communications, telecommunications, account management, inventory management, and other computer systems (including all computer programs, software, databases, firmware, hardware and related documentation) and related content.

 “Judgment Currency”: as defined in Section 10.18. 
 “L/C”: as defined in Section 3.1. 
 “L/C Disbursement”: a payment made by the Issuing Lender pursuant to a Letter of Credit. 
 “L/C Undertaking”: as defined in Section 3.1. 
 “Lenders”: as defined in the preamble hereto
and specifically includes each Issuing Lender and the Swing Line Lender. 
 “Letter of Credit”: an L/C or an L/C
Undertaking, as the context requires. 
 “Letter of Credit Usage”: as of any date of determination, the aggregate undrawn
amount of all outstanding Letters of Credit. 
  

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 “Lien”: any mortgage, pledge, deed of trust, hypothecation, encumbrance, lien (statutory
or other), charge or other security interest or other security agreement or preferential arrangement of any kind or nature whatsoever and any assignment or deposit arrangement intended as, or having the effect of, security (including, without
limitation, any conditional sale or other title retention agreement and any capital lease having substantially the same economic effect as any of the foregoing). 
 “Loan”: any loan made by any Agent or any Lender pursuant to this Agreement. 
 “Loan Account”: as defined in Section 2.20. 
 “Loan Documents”: this Agreement, any Notes,
the Interim Bankruptcy Court Orders, the Final Bankruptcy Court Orders, the Security Documents, the Canadian Security Documents, the Fee Letter, the Bank Product Agreements, the Letters of Credit and any other agreement, instrument, and other
document executed and delivered pursuant hereto or thereto or otherwise evidencing or securing any Loan, any contingent reimbursement obligations with respect to the Letter of Credit Usage or any other Obligation. 
 “Loan Parties”: the Borrower, the Parent and each Subsidiary of the Parent that is a party to a Loan Document, and “Loan
Party” means any one of them. 
 “Majority Facility Lenders”: with respect to any Facility, the holders of more
than 50% of the aggregate outstanding Commitments for and extensions of credit under such Facility. 
 “Majority Revolving Credit
Facility Lenders”: the Majority Facility Lenders in respect of the Revolving Credit Facility; provided, that at any time that there is more than one Revolving Credit Lender, “Majority Revolving Credit Facility Lenders”
shall include at least two Revolving Credit Lenders. 
 “Material Adverse Deviation”: as of any period, a negative deviation
(downward, in the case of collections, and upward, in the case of disbursements) of more than (i) 15% in the case of any single line item set forth in the Initial Budget for the applicable period or (ii) 10% in the aggregate with respect
to all items set forth in the Initial Budget for the applicable period, calculated (A) for the period from the Filing Date to and including December 3, 2007, on a bi-weekly basis and (B) for the period from December 3, 2007 to
and including the Final Maturity Date, on a weekly basis; provided, that, in the case of clause (i) and (ii) above, no amounts shall be included in the calculation of the deviation for (x) any portion of the Budget Carryover
Amount that constitutes a disbursement or payments during such period, and (y) disbursements that constitute the professional fees of the Lenders; provided, further, that (A) in the case of disbursements, the deviation in
disbursements from the Initial Budget for any weekly period shall be calculated as a percentage of, and by reference to, the disbursements set forth in the Initial Budget for such period, without giving effect to any Budget Carryover Amount
permitted to be used for such period and (B) in the case of collections, the Budget Carryover Amount shall be added to the actual collections in any given period to determine whether there has been a Material Adverse Deviation in collections
for such period. For the avoidance of doubt the first proviso and the second proviso of the foregoing definition shall be read to together. 
  

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 “Material Adverse Effect”: a material adverse effect on (a) the financial
condition, results of operations, assets or liabilities of the Parent and its Subsidiaries, taken as a whole or the Loan Parties, taken as a whole, except for (i) the commencement of the Chapter 11 Cases and the CCAA Proceedings and events that
would typically result from the commencement of the Chapter 11 Cases and/or the CCAA Proceedings, and (ii) any event, circumstance or condition resulting from matters disclosed in writing to the Lenders prior to the date hereof, (b) the
ability of the Borrower or the Loan Parties, taken as a whole, to perform their obligations under the Loan Documents, (c) the legality, validity or enforceability of this Agreement or any other Loan Document or (d) the rights and remedies
of any Agent or any Lender under the Loan Documents. 
 “Materials of Environmental Concern”: shall include, without regard
to amount and/or concentration (a) any element, compound, or chemical that is defined, listed or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic or hazardous substance, extremely hazardous substance or chemical,
hazardous waste, medical waste, biohazardous or infectious waste, special waste, or solid waste pursuant to or could give rise to liability under any Environmental Law; (b) any substance exhibiting a hazardous waste characteristic including but
not limited to corrosivity, ignitibility, toxicity or reactivity as well as any radioactive or explosive materials; (c) any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products, (d) polychlorinated
biphenyls, urea-formaldehyde insulation or, asbestos, pollutants, contaminants, radioactivity, and any other substances or forces of any kind, whether or not any such substance or force is defined as hazardous or toxic under any Environmental Law,
that is regulated pursuant to or could give rise to liability under any Environmental Law. 
 “Maximum Revolving Credit Cash
Amount”: $54,000,000; provided, that the Maximum Revolving Credit Cash Amount shall be increased to the extent that (i) the amount of an L/C Disbursement with respect to any Letter of Credit would give rise to outstanding
Revolving Credit Loans in excess of the then-applicable Maximum Revolving Credit Cash Amount or (ii) any Bank Product for which a Bank Product Reserve has been established gives rise to a cash obligation the payment of which would cause the
outstanding Revolving Credit Loans to exceed the then-applicable Maximum Revolving Credit Cash Amount, in each case, up to the amount of Revolving Credit Loans outstanding after giving effect to such draw or the payment of such obligation, such
Maximum Revolving Credit Cash Amount not to exceed $71,062,301.57. 
 “Midway Facility”: the timber processing and
manufacturing facilities and related equipment located on the real property described in Schedule M-1 hereto, together with all present and after-acquired goods (other than inventory), chattel paper, documents of title, instruments and general
intangibles (other than accounts, accounts receivable and other debt, obligations or amounts owing to the Borrower with respect thereto and other than choses in action with respect thereto) situate on, arising from or relating to the real property
described in Schedule M-1 hereto. 
 “Monitor”: PricewaterhouseCoopers Inc., the monitor appointed by the Canadian
Bankruptcy Court in the CCAA Proceedings. 
 “Moody’s”: Moody’s Investor Services, Inc. and any successor thereto.

  

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 “Mortgages”: any and all mortgages or deeds of trust made by any Loan Party in favor of,
or for the benefit of, the Collateral Agent for the benefit of the Secured Parties, in a form as may be reasonably agreed by the Collateral Agent and the Loan Parties party thereto; provided, that it is understood and agreed that no Mortgages
will be required except on the Canadian Collateral. 
 “Multiemployer Plan”: a Plan that is a multiemployer plan as defined
in Section 4001(a)(3) of ERISA. 
 “Net Cash Proceeds”: (a) the amount of all proceeds constituting cash and Cash
Equivalents of any Asset Sale or Recovery Event received by Parent, the Borrower and/or their respective Subsidiaries (including any such proceeds received by way of deferred payment of principal pursuant to a note or installment receivable or
purchase price adjustment receivable or otherwise, but only as and when received) minus the sum of the following (which amounts may be paid out of the gross proceeds of any such Asset Sale or Recovery Event): (i) reasonable and customary
attorneys’ fees, accountants’ fees, investment banking fees (including, but not limited to, any Transaction Fee which is earned upon, and paid from the proceeds of any sale of the Loan Parties’ assets approved by the Bankruptcy Court
that gives rise to the obligation to pay such Transaction Fee), relocation expenses, consulting and appraisal fees and expenses, amounts required to be applied to the repayment of Indebtedness secured by a Lien expressly permitted hereunder on any
asset which is the subject of, or is owned by a Person that is the subject of, such Asset Sale or Recovery Event (other than any Lien pursuant to a Security Document) to the extent such Indebtedness is required to be, and is repaid in connection
with such Asset Sale or Recovery Event and reasonable and customary fees and expenses actually incurred in connection therewith and net of any income or transfer taxes paid or reasonably estimated to be payable as a result thereof (after taking into
account any available tax credits or deductions and any tax sharing arrangements) and (ii) solely in connection with any such Asset Sale, any reserve established in accordance with GAAP, provided, that any such reserved amount shall be
Net Cash Proceeds to the extent and at the time such reserve is no longer required in accordance with GAAP, and (b) the amount of proceeds constituting cash and Cash Equivalents received by the Parent, the Borrower and/or any of their
respective Subsidiaries from the issuance or sale of equity securities or debt securities or instruments or the incurrence of Indebtedness, in each case net of reasonable and customary attorneys’ fees, investment banking fees, accountants’
fees, underwriting discounts and commissions and other customary fees and expenses actually incurred in connection therewith; in each case of clause (a) and (b) to the extent, but only to the extent, that the amounts so deducted are
(x) actually paid or required to be paid to a Person that, except in the case of reasonable out-of-pocket expenses, is not an Affiliate of such Person or any of its Subsidiaries and (y) properly attributable to such transaction or to the
asset that is the subject thereof. 
 “Net Liquidation Percentage”: the percentage of the book value of the Borrowing Base
Parties’ Inventory that is estimated to be recoverable in an orderly liquidation of such Inventory net of all associated costs and expenses of such liquidation, such percentage to be as determined from time to time by an appraisal company
selected by the Administrative Agent. 
 “Net Pre-Petition Revolving Loan Amount”: $45,000,234.74 as of the Interim Facility
Effective Date, as such amount may thereafter be reduced from time to time by an amount equal to the collections and other payments applied to the repayment of the Pre-Petition Revolving Loan Obligations. 
  

 27 

 “Non-Excluded Taxes”: as defined in Section 2.22(a). 
 “Note”: any promissory note evidencing any Loan. 
 “Obligations”: the unpaid principal of and interest on (including, without limitation, interest accruing after the maturity of the Loans and including the Term Loan B PIK Amount) the Loans, the
contingent reimbursement obligations with respect to outstanding Letters of Credit and all other obligations and liabilities of the Loan Parties to any of the Agents, the Collateral Agent, any Issuing Lender, any Lender or any Bank Product Provider,
whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this Agreement, any other Loan Document, the Letters of Credit, any Bank Product
Agreement or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest (including the Term Loan B PIK Amount), reimbursement obligations, fees, indemnities, costs, expenses (including,
without limitation, all fees, charges and disbursements of counsel to the Arranger, the Syndication Agent, each Agent or to any Lender that are required to be paid by the Loan Parties pursuant to the Loan Documents) (including, without limitation,
any fees or expenses accruing after the maturity of the Loans) or otherwise, and all Bank Product Obligations; provided, that (a) obligations of any Loan Party under any Bank Product Agreement shall be secured and guaranteed pursuant to
the Security Documents only to the extent that, and for so long as, the other Obligations are so secured and guaranteed and (b) any release of Collateral or Guarantors effected in the manner permitted by this Agreement shall not require the
consent of holders of obligations under Bank Product Agreements; provided, further, that from and after such time as all then outstanding Pre-Petition Revolving Credit Loans are repaid in full, in accordance with the applicable
Bankruptcy Court Orders, then, any thereafter unsatisfied Pre-Petition Revolving Loan Obligations, including without limitation, any contingent unpaid indemnification obligations and claims for reimbursement of professional fees and expenses owing
to or incurred by the Pre-Petition Revolving Credit Lenders under the Pre-Petition Credit Agreement shall be deemed to constitute “Obligations” of the Loan Parties to the Agents and the Lenders hereunder. 
 “Official Committee”: means any statutory committee appointed in the Chapter 11 Cases. 
 “Ontario Court”: the Superior Court of Justice (Commercial List) of the Province of Ontario. 
 “Ordinary Refund”: a refund of United States, Canadian, state, provincial or local or other foreign taxes where such refund relates to a
tax obligation that was paid in respect of a fiscal year ending prior to the Interim Facility Effective Date. For the avoidance of doubt, Ordinary Refunds shall not include Duty Refunds. 
 “Other Statutory Liabilities”: as defined in Section 2.5(c). 
 “Other Taxes”: 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, registration or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 
  

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 “Parent”: as defined in the preamble hereto. 
 “Participant Register”: as defined in Section 10.6(f). 
 “PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA (or any successor).

 “Pension Plan Termination Event”: means an event which would entitle a Person (without the consent of any Loan Party) to
wind- up or terminate a Canadian Pension Plan in full or in part, or the institution of any steps by any Person to terminate or order the termination or wind-up of, in full or in part, any Canadian Pension Plan, or the receipt by any Loan Party of
material correspondence from a Governmental Authority relating to a potential or actual, partial or full, termination or wind-up of any Canadian Pension Plan, or an event respecting any Canadian Pension Plan or which could otherwise reasonably be
expected to adversely affect the tax status of any such Canadian Pension Plan maintained and sponsored by the Loan Parties. 
 “Period”: the Interim Period or the Final Period. 
 “Permits”: the collective reference to
(a) Environmental Permits, and (b) any and all other franchises, licenses, leases, permits, approvals, notifications, certifications, registrations, authorizations, exemptions, easements, and rights of way. 
 “Permitted Discretion”: a determination made in the exercise of reasonable (from the perspective of a secured asset-based lender)
business judgment. 
 “Permitted Liens”: the collective reference to (a) in the case of Collateral other than Capital
Stock pledged to secure the Obligations, Liens permitted by Section 7.3 and (b) in the case of Collateral consisting of Capital Stock pledged to secure the Obligations, non-consensual Liens permitted by Section 7.3 to the extent
arising by operation of law, including without limitation, Liens described in clause (j) of Section 7.3. 
 “Permitted
Priority Liens”: all Permitted Liens other than Liens permitted under clauses (a), (b) and (j) of Section 7.3, provided, that any Liens listed on Schedule 7.3(f) or any annexes thereto shall only constitute Permitted
Priority Liens to the extent that such Liens are valid, perfected and non-avoidable. 
 “Person”: an individual,
partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature. 
 “Plan”: at a particular time, any employee benefit plan that is covered by Title IV of ERISA and in respect of which the Borrower or a
Commonly Controlled Entity is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
  

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 “Pledge and Security Agreement”: any pledge and security agreement or similar agreement
or instrument executed and delivered by the Loan Parties in favor of the Collateral Agent, for the benefit of the Secured Parties, in each case in form and substance satisfactory to the Collateral Agent, as the same may be amended, supplemented,
replaced, restated or otherwise modified from time to time. 
 “PPSA”: Personal Property Security Act (British Columbia) or
the equivalent in any other province or territory of Canada, as in effect from time to time. 
 “Pre-Petition Agents”: the
Pre-Petition Collateral Agent; Wells Fargo in its capacity as the administrative agent to the Pre-Petition Lenders; Ableco, in its capacity as the term loan B agent; Lehman Brothers Inc., as sole arranger and sole bookrunner; and Lehman Commercial
Paper Inc., as syndication agent. 
 “Pre-Petition Bank Product Obligations”: has the meaning ascribed to the term
“Bank Product Obligations” as defined in the Pre-Petition Credit Agreement. 
 “Pre-Petition Bank Product
Agreements”: those agreements listed on Schedule P-1 and entered into in accordance with the terms of the Pre-Petition Credit Agreement. 
 “Pre-Petition Canadian General Security Agreement”: the Canadian General Security Agreement (as defined in the Pre-Petition Credit Agreement) executed and delivered by the Loan Parties pursuant to the Pre-Petition Credit
Agreement. 
 “Pre-Petition Canadian Security Documents”: the Canadian Security Documents (as defined in the Pre-Petition
Credit Agreement) executed and delivered by the Loan Parties pursuant to the Pre-Petition Credit Agreement as amended or otherwise modified from time to time. 
 “Pre-Petition Collateral Agent”: Ableco, in its capacity as the collateral agent to the Pre-Petition Agents and the Pre-Petition Lenders. 
 “Pre-Petition Credit Agreement”: the Credit Agreement, dated as of June 28, 2006, as amended prior to the date hereof, among
Pope & Talbot, Inc., a Delaware corporation as the parent, Pope & Talbot Ltd., a Canadian corporation as the borrower, the Pre-Petition Lenders, and the Pre-Petition Agents. 
 “Pre-Petition Lenders”: Pre-Petition Revolving Credit Lenders and the Pre-Petition Term Loan Lenders. 
 “Pre-Petition Letter of Credit”: has the meaning specified therefor in Section 3.8. 
 “Pre-Petition Loan Parties”: each of the Loan Parties that are party to the Pre-Petition Credit Agreement. 
 “Pre-Petition Revolving Loan Obligations”: all indebtedness, obligations (including obligations in respect of any letters of credit) and
liabilities of the Borrower and the Guarantors incurred prior to the Chapter 11 Filing Date arising from or related to the Pre-Petition 

  

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Revolving Credit Facility, plus fees, expenses, costs and other charges, indemnities and reimbursement obligations due thereunder and interest thereon
accruing both before and after the Chapter 11 Filing Date, whether such indebtedness, obligations or liabilities are direct or indirect, joint or several, absolute or contingent, due or to become due, whether for payment or performance, now existing
or hereafter arising. 
 “Pre-Petition Revolving Credit Loans”: the “Revolving Credit Loans” as defined in the
Pre-Petition Credit Agreement. 
 “Pre-Petition Term Loan Obligations”: all indebtedness, obligations and liabilities of the
Borrower and the Guarantors incurred prior to the Chapter 11 Filing Date arising from or related to the Pre-Petition Term Loan Facilities, plus fees, expenses, costs and other charges, indemnities and reimbursement obligations due thereunder and
interest thereon accruing both before and after the Chapter 11 Filing Date, whether such indebtedness, obligations or liabilities are direct or indirect, joint or several, absolute or contingent, due or to become due, whether for payment or
performance, now existing or hereafter arising. 
 “Pre-Petition Term Loans”: the “Term Loan B” and the “Term
Loan C” as each such term is defined in the Pre-Petition Credit Agreement. 
 “Pre-Petition Revolving Credit Facility”:
the “Revolving Credit Facility” under the Pre-Petition Credit Agreement. 
 “Pre-Petition Revolving Credit
Lenders”: the several banks and other financial institutions or entities from time to time that made revolving credit loans and other extensions of credit loans under the Pre-Petition Revolving Credit Facility to the Borrower under the
Pre-Petition Credit Agreement. 
 “Pre-Petition Term Loan Facilities”: the “Term Loan B Facility” and the
“Term Loan C Facility” under the Pre-Petition Credit Agreement. 
 “Pre-Petition Term Loan Lenders”: the several
banks and other financial institutions or entities from time to time that made loans under the Pre-Petition Term Loan Facilities to the Borrower under the Pre-Petition Credit Agreement. 
 “Prime Rate”: the rate of interest announced, from time to time, within Wells Fargo Bank, National Association at its principal office
in San Francisco as its “prime rate”, with the understanding that the “prime rate” is one of Wells Fargo Bank, National Association’s base rates (not necessarily the lowest of such rates) and serves as the basis upon which
effective rates of interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its announcement in such internal publications as Wells Fargo Bank, National Association may designate. 

“Proceeds”: (a) all “proceeds” (as defined in Article 9 of the UCC) with respect to the Collateral and
(b) whatever is recoverable or recovered when any Collateral is sold, exchanged, collected, or disposed of, whether voluntarily or involuntarily. 
  

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 “Pro Rata Share”: 
 (a) with respect to a Lender’s obligation to make Revolving Credit Loans and receive payments of interest, fees, and principal with respect thereto,
the percentage obtained by dividing (i) such Lender’s Revolving Credit Commitment, by (ii) the Total Revolving Credit Commitment, provided, that, if the Total Revolving Credit Commitment has been terminated or reduced to zero,
the numerator shall be the aggregate unpaid principal amount of such Lender’s Revolving Credit Loans and the denominator shall be the aggregate unpaid principal amount of all Revolving Credit Loans; 
 (b) with respect to a Lender’s obligation to participate in Letters of Credit, to reimburse the Issuing Lender, and right to receive payments of
fees with respect thereto, the percentage obtained by dividing (i) such Lender’s Revolving Credit Commitment, by (z) the Total Revolving Credit Commitment, provided, that, if the Total Revolving Credit Commitment has been terminated
or reduced to zero, the numerator shall be the aggregate unpaid principal amount of such Lender’s Revolving Credit Loans and the denominator shall be the aggregate unpaid principal amount of all Revolving Credit Loans, 
 (c) with respect to a Lender’s obligation to make a Term Loan B and receive payments of interest, fees, and principal with respect thereto, the
percentage obtained by dividing (i) such Lender’s Term Loan B Commitment, by (ii) the Total Term Loan B Commitment, provided, that if the Total Term Loan B Commitment has been reduced to zero, the numerator shall be the
aggregate unpaid principal amount of such Lender’s portion of the Term Loan B and the denominator shall be the aggregate unpaid principal amount of the Term Loan B; and 
 (e) with respect to all other matters (including, without limitation, the indemnification obligations arising under Sections 9.7 and 10.5), the
percentage obtained by dividing (i) the sum of such Lender’s Revolving Credit Commitment, Term Loan B Commitment and the unpaid principal amount of such Lender’s portion of the Term Loan B, by (ii) the sum of the Total Revolving
Credit Commitment, the Total Term Loan B Commitment, and the aggregate unpaid principal amount of the Term Loans, provided, that, if such Lender’s Revolving Credit Commitment shall have been terminated or reduced to zero, (y) such
Lender’s Revolving Credit Commitment shall be deemed to be the aggregate unpaid principal amount of such Lender’s Revolving Credit Loans plus such Lender’s ratable portion of the Risk Participation Liability with respect to
outstanding Letters of Credit and (y) the Total Revolving Credit Commitment shall be deemed to be the aggregate unpaid principal amount of all Revolving Credit Loans plus the aggregate amount of the Risk Participation Liability with respect to
outstanding Letters of Credit. 
 “Property”: any right or interest in or to property of any kind whatsoever, whether real,
personal or mixed and whether tangible or intangible, including, without limitation, Capital Stock. 
 “Rating Agencies”: as
defined in Section 10.6(c). 
 “Recovery Event”: any settlement of or payment in respect of, or series of settlements
or payments in respect of, any property or casualty insurance claim or any condemnation proceeding relating to any asset of the Parent or any of its Subsidiaries. 
  

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 “Refunded Swing Line Loans”: as defined in Section 2.8(b). 
 “Refunding Date”: as defined in Section 2.8(c). 
 “Register”: as defined in Section 2.9(c). 
 “Registered Loan”: as
defined in Section 2.9(c). 
 “Regulation D”: Regulation D of the Board as in effect from time to time. 
 “Regulation U”: Regulation U of the Board as in effect from time to time. 
 “Regulation X”: Regulation X of the Board as in effect from time to time. 
 “Reinstated Pre-Petition Revolving Loan Obligations”: any Pre-Petition Revolving Loan Obligations constituting an Avoided Payment, to
the extent such obligations have been reinstated, in each case, pursuant to, and subject to the requirements and terms of the final and nonappealable order of the Bankruptcy Court. 
 “Related Fund”: with respect to any Person, an Affiliate of such Person, or a fund or account managed by such Person or an Affiliate of
such Person. 
 “Related Party Assignment”: as defined in Section 10.6(b). 
 “Related Party Register”: as defined in Section 10.6(b). 
 “Release”: any spilling, leaking, pumping, emitting, emptying, discharging, injecting, escaping, leaching, migrating, dumping, or
disposing of Materials of Environmental Concern (including the abandonment or discarding of barrels, containers or other closed receptacles containing Materials of Environmental Concern) into the environment. 
 “Remedial Action”: all actions taken to (i) clean up, remove, remediate, contain, treat, monitor, assess or evaluate Materials of
Environmental Concern in the indoor or outdoor environment; (ii) prevent or minimize a Release or threatened Release of Materials of Environmental Concern so they do not migrate or endanger or threaten to endanger public health or welfare or
the indoor or outdoor environment; (iii) perform pre-remedial studies and investigations and post-remedial operation and maintenance activities; or (iv) other similar actions authorized by any Environmental Law to respond to Materials of
Environmental Concern. 
 “Reorganization”: with respect to any Multiemployer Plan, the condition that such Plan is in
reorganization within the meaning of Section 4241 of ERISA. 
 “Reportable Event”: with respect to any Single Employer
Plan, any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the thirty day notice period is waived under PBGC Reg. § 4043 and other than the commencement of the Chapter 11 Cases and the CCAA
Proceedings. 
  

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 “Required Lenders”: the Majority Facility Lenders in respect of the Term Loan Facility;
provided, that if (i) the Borrower’s Revolving Credit Loan Availability is less than $10,000,000, (ii) the Borrower’s Availability is less than $20,000,000, or (iii) the aggregate outstanding principal amount of the
Term Loans plus the aggregate amount of the Pre-Petition Term Loan Obligations is less than $75,000,000, then “Required Lenders” shall mean (x) the Majority Revolving Credit Facility Lenders and (y) the Majority Facility Lenders
in respect of the Term Loan Facility. 
 “Requirement of Law”: as to any Person, the Constituent Documents of such Person,
and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its Property or to which such Person or any of its Property is
subject. 
 “Responsible Officer”: as to any Person, the chief executive officer, chief operating officer, chief accounting
officer, president, chief financial officer or treasurer of such Person, but in any event, with respect to financial matters, the chief accounting officer or the chief financial officer of such Person. Unless otherwise qualified, all references to a
“Responsible Officer” shall refer to a Responsible Officer of the Parent. 
 “Restricted Payments”: as defined in
Section 7.6. 
 “Returns”: as defined in Section 4.10. 
 “Revolving Credit Commitment”: with respect to each Lender, its Revolving Credit Commitment, and, with respect to all Lenders, their
Revolving Credit Commitments, in each case, as such Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule C-1, less, the amount of each such Lender’s Pro Rata Share (as defined in the
Pre-Petition Credit Agreement) of the Net Pre-Petition Revolving Loan Amount at any time outstanding or in the Assignment and Acceptance pursuant to which such Lender became a Lender hereunder, in each case, as such amounts may be reduced or
increased from time to time pursuant to assignments and commitment reductions made in accordance with the provisions hereof. 
 “Revolving Credit Commitment Period”: the period from and including the Interim Facility Effective Date to the Final Maturity Date. 
 “Revolving Credit Facility”: as defined in the definition of “Facility” in this Section 1.1. 
 “Revolving Credit Lender”: each Lender that has a Revolving Credit Commitment or holds Revolving Extensions of Credit; provided, that any such Lender shall be required to be resident in Canada
for purposes of the Income Tax Act (Canada) and not subject to tax under Part XIII of the Income Tax Act (Canada). 
 “Revolving
Credit Loan Availability”: as of any date of determination, the amount that the Borrower is entitled to borrow as Revolving Credit Loans under Section 2.5 of this Agreement (after giving effect to all then outstanding Obligations
(other than Bank Product Obligations) and all sublimits and reserves then applicable hereunder). 
  

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 “Revolving Credit Loans”: as defined in Section 2.5. 
 “Revolving Extensions of Credit”: as to any Revolving Credit Lender at any time, an amount equal to the sum of (a) the aggregate
principal amount of all Revolving Credit Loans then outstanding of such Lender, (b) such Lender’s Pro Rata Share of the Letter of Credit Usage then outstanding, and (c) such Lender’s Swing Line Participation Amount. 

“Revolving Loan Intangibles”: any now owned or hereafter acquired (a) General Intangibles to the extent relating to the
Revolving Priority Borrowing Base Collateral, including, without limitation, all contracts, contract rights (including agreements or arrangements with consignees, distributors, warehouses or other third persons in possession of Inventory), rights of
reclamation and stoppage in transit, licenses, customer lists, and all tax refund rights for sales, value added, goods or services taxes, in each case to the extent relating to the Revolving Priority Borrowing Base Collateral, (b) commercial
tort claims, causes of action or other claims to the extent arising out of or with respect to the Revolving Priority Borrowing Base Collateral, including any and all insurance, guaranty or warranty claims relating thereto, and (c) all
documents, chattel paper, instruments, bankers acceptances, letters of credit, letter of credit rights and any other Liens or obligations, in each case as each of those terms is defined in the UCC (if so defined) and in each case which support,
evidence or relate to Revolving Priority Borrowing Base Collateral and in the case of each of (a), (b) and (c) above, excluding all Duty Refunds and all rights thereto. 
 “Revolving Loan Records”: any now owned or hereafter acquired (a) books of account, ledger entries, ledger cards and
journals, (b) purchase agreements, sales agreements, invoices, purchase orders, receipts and statements, (c) bills of lading, documents of title, and evidences of shipment or storage, and (d) all data and means of storing data whether
tangible, intangible, electronic or recorded on tapes, disks, diskettes, and all other data and software storage media and devices, file cabinets, computers and containers in which or on which any information is stored or maintained (including all
rights of access of any Loan Party where maintained by or with any other person), in each case relating to Collateral that falls within clauses (a), (b), (d) or (e) of the definition of Revolving Priority Collateral. 
 “Revolving Priority Borrowing Base Collateral”: (a) Inventory of a Loan Party; and (b) Accounts arising out of or related to
the Disposition of Inventory or rendition of services by a Loan Party. 
 “Revolving Priority Collateral”:
(a) Revolving Priority Borrowing Base Collateral; (b) Revolving Loan Intangibles; (c) Revolving Loan Records; (d) all insurance policies, claims under and proceeds of insurance covering any Collateral described in any of
clauses (a) through (c) of this definition, including, without limitation, the proceeds of Eligible Foreign Accounts Credit Insurance; and (e) all Proceeds and products of any of the foregoing. 
 “Risk Participation Liability”: as to each Letter of Credit, all reimbursement obligations of the Borrower to the Issuing Lender with
respect to an L/C or an L/C Undertaking, as applicable, consisting of (a) the amount available to be drawn or which may become available to be drawn, (b) all amounts that have been paid by the Issuing Lender to the Underlying Issuer to the
extent not reimbursed by the Borrower, whether by the making of a Revolving Credit Loan or otherwise, and (c) all accrued and unpaid interest, fees, and expenses payable with respect thereto. 
  

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 “S&P”: Standard & Poor’s Ratings Services, a Division of The
McGraw-Hill Companies and any successor thereto. 
 “SEC”: the Securities and Exchange Commission (or successors thereto or
an analogous Governmental Authority). 
 “Secured Parties”: the collective reference to the Agents, the Lenders and the Bank
Product Providers. 
 “Securitization”: as defined in Section 10.6(g). 
 “Securitization Parties”: as defined in Section 10.6(g). 
 “Security Documents”: collective reference to the provisions of Section 11.4 of this Agreement, the Guaranty, each Pledge and
Security Agreement, each Canadian General Security Agreement, the other Canadian Security Documents, the Mortgages, any aircraft mortgage, any intellectual property grant of security interest or control account agreements that may be required to be
delivered pursuant to any Loan Document and all other security documents hereafter delivered to the Collateral Agent granting a Lien on any Property of any Person to secure the Obligations of any Loan Party under any Loan Document. 
 “Single Employer Plan”: any Plan that is covered by Title IV of ERISA, but which is not a Multiemployer Plan. 
 “Solvent”: with respect to any Person, as of any date of determination, (a) the amount of the “present fair saleable
value” of the assets of such Person will, as of such date, exceed the amount of all “liabilities of such Person, contingent or otherwise”, as of such date, as such quoted terms are determined in accordance with applicable federal,
provincial and state laws governing determinations of the insolvency of debtors, (b) the present fair saleable value of the assets of such Person will, as of such date, be greater than the amount that will be required to pay the probable
liability of such Person on its debts as such debts become absolute and matured, (c) such Person will not have, as of such date, an unreasonably small amount of capital with which to conduct its business, and (d) such Person will be able
to pay its debts as they mature. For purposes of this definition, (i) “debt” means liability on a “claim”, and (ii) “claim” means any (x) right to payment, whether or not such a right is reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an equitable remedy for breach of performance if such breach gives rise to a right to
payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured. 
 “Stay of Proceedings” means the stay of proceedings against the Canadian Loan Parties and their property and assets and the stay of the exercise of rights and remedies against the Canadian Loan
Parties and their Property contained in the Initial Order, as it may be extended or amended by any other order issued by the Canadian Bankruptcy Court in the CCAA Proceedings. 
  

 36 

 “Subsidiary”: as to any Person, a corporation, partnership, limited liability company or
other entity (i) of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of
the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person
or (ii) the accounts of which would be consolidated with those of such Person in such Person’s consolidated financial statements if such financial statements were prepared in accordance with GAAP. Unless otherwise qualified, all references
to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Parent, including the Borrower. 
 “Swing Line Commitment”: the obligation of the Swing Line Lender to make Swing Line Loans pursuant to Section 2.7 in an aggregate principal amount at any one time outstanding not to exceed
$10,000,000, or such greater amount as the Swing Line Lender, in its sole discretion, may agree to advance as Swing Line Loans pursuant to Section 2.7. 
 “Swing Line Lender”: Wells Fargo, in its capacity as the lender of Swing Line Loans; provided, that any successor to Wells Fargo in such capacity shall be required to be resident in Canada for
purposes of the Income Tax Act (Canada) and not subject to tax under Part XIII of the Income Tax Act (Canada). 
 “Swing Line
Loans”: as defined in Section 2.7. 
 “Swing Line Participation Amount”: as defined in Section 2.8(c).

 “Syndication Agent”: shall have no meaning for purposes of this Agreement. 
 “Term Loan B”: as defined in Section 2.1. 
 “Term Loan B Agent”: as defined in the preamble hereto. 
 “Term Loan B
Commitment”: as to any Lender, the obligation of such Lender, if any, to make a Term Loan B to the Borrower hereunder in a principal amount not to exceed the amount set forth under the heading “Term Loan B Commitment” opposite
such Lender’s name on Schedule C-1, or, as the case may be, in the Assignment and Acceptance pursuant to which such Lender became a party hereto, as such amount shall be deemed to be reduced from time to time on any Interest Payment Date
by such Lender’s Pro Rata Share of the aggregate outstanding Term Loan B PIK Amount as of such date and as the same may be changed from time to time pursuant to the terms hereof. The original aggregate amount of the Term Loan B Commitments is
$18,000,000. 
 “Term Loan B Facility”: as defined in the definition of “Facility” in this Section 1.1.

 “Term Loan B Lenders”: those Lenders having Term Loan B Commitments. 
  

 37 

 “Term Loan PIK Amount” means, as of any date of determination, the amount of all
interest accrued with respect to the Term Loan B that has been paid in kind by being added to the principal balance of the Term Loan B in accordance with Section 2.16(e). 
 “Term Loan Facility”: the Term Loan B Facility. 
 “Term Loan Lenders”: collectively, the Term Loan B Lenders. 
 “Term
Loans”: collectively, Term Loans B. 
 “Term Priority Collateral”: all Collateral other than Revolving Priority
Collateral. 
 “Total Revolving Credit Commitment”: at any time during any Period, the aggregate amount of the Revolving
Credit Commitments then in effect for such Period, less, the Net Pre-Petition Revolving Loan Amount at any time outstanding during such Period. 
 “Total Revolving Extensions of Credit”: at any time during any Period, the aggregate amount of the Revolving Extensions of Credit of the Revolving Credit Lenders outstanding at such time for such
Period. 
 “Total Term Loan B Commitment”: at any time during any Period, the aggregate amount of the Term Loan B
Commitments then in effect for such Period. 
 “Transaction Fee”: any “Completion Fee,” “Financing Fee”
or “Initial Sale Fee” payable to Rothschild, Inc. pursuant to the terms of that certain engagement letter between Parent and Rothschild, Inc. dated as of June 15, 2007, as amended by that certain amendment dated as of
November 16, 2007, or any similar fee that is or may be payable to any other investment advisor, consultant or agent at any time retained by any Loan Party with the consent of the Agents. 
 “Transferee”: as defined in Section 2.22. 
 “Type”: as to any Loan, its nature as a Base Rate Loan or a Eurodollar Loan. 
 “UCC”: the Uniform Commercial Code, as in effect from time to time in the State of New York. 
 “Unasserted
Contingent Obligations”: means obligations for taxes, costs, indemnifications, reimbursements, and damages in respect of which no assertion of liability (whether oral or written) and no claim or demand of payment (whether oral or written)
has been made (and, in the case of obligations for indemnification, no notice for indemnification has been issued by the indemnitee) at such time. 
 “Underlying Issuer”: a third Person which is the beneficiary of an L/C Undertaking and which has issued a letter of credit at the request of the Issuing Lender for the benefit of the Borrower. 
  

 38 

 “Underlying Letter of Credit”: a letter of credit that has been issued by an Underlying
Issuer. 
 “United States”: the United States of America and District of Columbia. 
 “Updated Budget”: as defined in Section 6.2(g). 
 “US Bankruptcy Code”: the United States Bankruptcy Code (11 U.S.C. § 101, et seq.), as amended and in effect from time to time, and any successor statute. 
 “US Bankruptcy Court”: as defined in the recitals hereto. 
 “US Base Rate”: for any day, a rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal
Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective as of the opening of business on the effective day of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively. 
 “US Carve-Out Expenses”: (a) all fees required to be
paid to the Clerk of the US Bankruptcy Court and to the Office of the United States Trustee under Section 1930(a) of title 28 of the US Bankruptcy Code; (b) all unpaid professional fees and disbursements incurred prior to the Acceleration
Date or the Final Maturity Date, as applicable, as allowed under Sections 330 and 331 of the US Bankruptcy Code in an amount not to exceed the amount set forth opposite the relevant line item in the Initial Budget (subject to deviations that would
not constitute Material Adverse Deviations); provided, that any Transaction Fee payable shall not be included as a fee or disbursement that constitutes a US Carve-Out Expense, and shall instead only be paid to the extent earned upon, and
payable from the proceeds of, any sale of the Loan Parties’ assets consented to by the Bankruptcy Court that gives rise to the obligation to pay such Transaction Fee, and (c) the reimbursement of expenses incurred by Official Committee
members in the performance of their duties that are allowed by the US Bankruptcy Court; and provided further that nothing herein shall be construed to impair the ability of any party to object to any of the fees, expenses,
reimbursement or compensation described in clauses (b) and (c) above. 
 “US Eurodollar Base Rate”: the rate per
annum, determined by the Administrative Agent in accordance with its customary procedures, and utilizing such electronic or other quotation sources as it considers appropriate (rounded upwards, if necessary, to the next 1/100%), to be the rate at
which Dollar deposits (for delivery on the first day of the requested Interest Period) are offered to major banks in the London interbank market 2 Business Days prior to the commencement of the requested Interest Period, for a term and in an amount
comparable to the Interest Period and the amount of the Eurodollar Loan requested (whether as an initial Eurodollar Loan or as a continuation of a Eurodollar Loan or as a conversion of a Base Rate Loan to a Eurodollar Loan) by the Borrower in
accordance with the Agreement, which determination shall be conclusive in the absence of manifest error. 
 “US Eurodollar
Rate”: for each Interest Period for each Eurodollar Loan denominated in Dollars, the rate per annum determined by the Administrative Agent (rounded upwards, if necessary, to the next 1/100%) by dividing (a) the US Eurodollar Base Rate
for such 

  

 39 

 
Interest Period, by (b) 1.00 minus the Eurocurrency Reserve Requirements. The US Eurodollar Rate shall be adjusted on and as of the effective day of any
change in the Eurocurrency Reserve Requirements. 
 “Variance Report”: as defined in Section 6.2(l). 
 “Wells Fargo”: Wells Fargo Financial Corporation Canada, a Nova Scotia unlimited liability company. 
 “WFF”: Wells Fargo Foothill, Inc., a California corporation. 
 “Wholly Owned Guarantor”: any Guarantor that is a Wholly Owned Subsidiary of the Parent or the Borrower. 
 “Wholly Owned Subsidiary”: as to any Person, any other Person all of the Capital Stock of which (other than directors’ qualifying
shares required by law) is owned by such Person directly and/or through other Wholly Owned Subsidiaries. 
 “Wind-Down
Costs”: an amount not exceeding $1,000,000 in the aggregate, which amount may be used after the Acceleration Date or Final Maturity Date, as applicable, to pay professional fees and expenses incurred by the Borrower and Guarantors, any
Official Committee, the Monitor, or any receiver or trustee (as the case maybe) in respect of allowances of compensation for services rendered or reimbursement or expenses incurred to the extent allowed by the US Bankruptcy Court or authorized for
payment by the Canadian Bankruptcy Court. 
 1.2 Other Definitional Provisions. (a) Unless otherwise specified therein, all terms
defined in this Agreement shall have the defined meanings when used in the other Loan Documents or any certificate or other document made or delivered pursuant hereto or thereto. 
 (b) As used herein and in the other Loan Documents, and any certificate or other document made or delivered pursuant hereto or thereto, accounting terms
relating to the Parent, Borrower and the Subsidiaries not defined in Section 1.1 and accounting terms partly defined in Section 1.1, to the extent not defined, shall have the respective meanings given to them under GAAP. 
 (c) The words “hereof”, “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise specified. 
 (d) The terms “includes” and “including” are not limiting. 
 (e) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 
 (f) Reserved. 
  

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 (g) The expressions “payment in full,” “paid in full” and any other
similar terms or phrases when used herein (i) with respect to the Obligations shall mean the payment in full, in immediately available funds in the Applicable Currency (or cash collateralization in the Applicable Currency in accordance with the
terms of this Agreement), of all of the Obligations (other than Unasserted Contingent Obligations) and (ii) for the purposes of Section 2.19(a), payment in cash of all amounts owing under the Loan Documents according to the terms thereof,
including loan fees, service fees, professional fees, interest, default interest, interest on interest, expense reimbursements and indemnity payments then due and payable, whether or not any of the foregoing would be or is allowed or allowable in
whole or in part in any Insolvency Proceeding. 
 (h) Except as otherwise expressly set forth in this Agreement, all amounts referred to
hereunder and the value of any amounts paid or payable pursuant to this Agreement shall be based on the Dollar Equivalent. 
 SECTION 2    AMOUNT AND TERMS OF COMMITMENTS 
 2.1 Term Loan B Commitments. (a) Subject to the
terms and conditions hereof and subject to the Bankruptcy Court Orders, the Term Loan B Lenders severally agree to make term loans (each, a “Term Loan B”) to the Borrower at any time and from time to time, or until the earlier
reduction of its Term Loan B Commitment to zero in accordance with the terms hereof, (i) in a principal amount for each Term Loan B not to exceed such Lender’s unused Term Loan B Commitment at such time and (ii) in an aggregate
principal amount for each Lender not to exceed the amount of the initial Term Loan B Commitment of such Lender on the Interim Facility Effective Date. The Term Loan B may from time to time be Eurodollar Loans or Base Rate Loans, as determined by the
Borrower and notified to the Administrative Agent in accordance with Section 2.3. The Term Loan B shall be denominated in Dollars. 
 (b) Notwithstanding the foregoing, (i) the aggregate principal amount of each Term Loan B made at any time during the Final Period shall not exceed the unused Total Term Loan B Commitment at such time, and (ii) the aggregate
principal amount of the Term Loan B outstanding at any time during the Final Period shall not exceed the lesser of (A) the initial Total Term Loan B Commitment on the Interim Facility Effective Date, and (B) for any week, the aggregate
principal amount of the Term Loan B projected to be outstanding at such time as set forth in the Initial Budget for such period and all prior periods. Any principal amount of the Term Loan B which is repaid or prepaid may not be reborrowed.
Notwithstanding any provision to the contrary contained in this Agreement, the Borrower shall not borrow, and the Term Loan B Lenders shall not be obligated to make, a Term Loan B to the extent that the sum of the aggregate principal amount of the
Revolving Loans outstanding and the Letter of Credit Usage is less than the amount of Revolving Loans available to be borrowed in accordance with the terms of Section 2.5. 
 2.2 Reserved. 
 2.3 Procedure for
Term Loan Borrowing. Subject to Section 2.1 and the Initial Budget (and after giving effect to any Budget Carryover Amount (as calculated and applied as set forth in the definition of such term in Section 1.1)), the Borrower may borrow

  

 41 

 
under the Term Loan B Commitments on any Business Day during any Period, provided, that the Borrower shall deliver to the Administrative Agent and the
Collateral Agent a Borrowing Notice (which Borrowing Notice must be received by the Administrative Agent and the Collateral Agent prior to 2:00 P.M., California time, (a) five Business Days prior to the requested Borrowing Date, in the case of
Eurodollar Loans, or (b) three Business Day prior to the requested Borrowing Date, in the case of Base Rate Loans). Each borrowing of a Term Loan B under the Term Loan B Commitments shall be in the amount required to be paid by the Borrower in
accordance with the Initial Budget or otherwise in accordance with Section 4.17(b). Upon receipt of such Borrowing Notice, the Collateral Agent shall promptly notify each Term Loan B Lender thereof. Not later than 9:00 A.M., California time, on
the date of each borrowing of a Term Loan B, each Term Loan B Lender shall make available to the Collateral Agent to the Collateral Agent’s Account an amount in immediately available funds in Dollars equal to the Term Loan to be made by such
Term Loan B Lender. The Collateral Agent shall make available to the Borrower the aggregate of the amounts made available to the Collateral Agent by the Term Loan B Lenders, in like funds as received by the Collateral Agent. 
 2.4 Repayment of Term Loans. The Term Loan B of each Term Loan B Lender (including the outstanding Term Loan B PIK Amount) shall mature on the
Final Maturity Date (or such earlier date on which the Loans become due and payable pursuant to Section 8). 
 2.5 Revolving Credit
Commitments. (a) Subject to the terms and conditions hereof and subject to the Bankruptcy Court Orders, the Revolving Credit Lenders severally agree to make revolving credit loans (“Revolving Credit Loans”) to the Borrower
from time to time during the Revolving Credit Commitment Period in an aggregate principal amount at any one time outstanding for each Revolving Credit Lender which, when added to such Lender’s Pro Rata Share of the sum of (i) the Letter of
Credit Usage then outstanding and (ii) the aggregate principal amount of the Swing Line Loans then outstanding, does not exceed the amount of such Lender’s Revolving Credit Commitment; provided, that after giving effect to the
making of each Revolving Credit Loan and the immediate application of the proceeds thereof (x) the aggregate principal amount of the Revolving Credit Loans (including any Reinstated Pre-Petition Revolving Loan Obligations and the Net
Pre-Petition Revolving Loan Amount then outstanding) and Swing Line Loans shall not exceed the lesser of (1) the Maximum Revolving Credit Cash Amount and (2) for any week, the principal amount of the Revolving Credit Loans projected to be
outstanding during such week as set forth in the Initial Budget for such week plus the Budget Carryover Amount (to be calculated and applied as set forth in the definition of such term in Section 1.1), and (y) the Total Revolving
Extensions of Credit shall not exceed the least of (1) the Total Revolving Credit Commitments, (2) the then current Borrowing Base, less the amount of any Reinstated Pre-Petition Revolving Loan Obligations, and (3) for any week, the
principal amount of the Total Revolving Extensions of Credit projected to be outstanding at such time as set forth in the Initial Budget for such period plus, the Budget Carryover Amount (to be calculated and applied as set forth in the definition
of such term in Section 1.1), less the amount of any Reinstated Pre-Petition Revolving Loan Obligations and the Net Pre-Petition Revolving Loan Amount then outstanding. During the Revolving Credit Commitment Period, the Borrower may use the
Revolving Credit Commitments by borrowing, prepaying the Revolving Credit Loans in whole or in part, and reborrowing, all in accordance with the terms and conditions hereof. The Revolving Credit Loans may from time to time be Eurodollar Loans or
Base Rate Loans, as determined by the Borrower and notified to the Administrative Agent in accordance 

  

 42 

 
with Sections 2.6 and 2.14, provided, that no Revolving Credit Loan shall be made as a Eurodollar Loan after the day that is one month prior to the
Final Maturity Date. Each Revolving Credit Loan shall be denominated in either Dollars or Canadian Dollars at the option of the Borrower on the Borrowing Date with respect thereto. 
 (b) The Borrower shall repay all outstanding Revolving Credit Loans on the Final Maturity Date (or such earlier date on which the Loans become due and
payable pursuant to Section 8). 
 (c) Anything to the contrary in this Agreement notwithstanding, the Administrative Agent shall have
the right to establish reserves against the Borrowing Base in such amounts, and with respect to such matters, as the Administrative Agent in its Permitted Discretion shall deem necessary or appropriate, including reserves with respect to, without
duplication, (i) sums that the Borrower, the Parent or its Subsidiaries are required to pay under any Section of this Agreement or any other Loan Document (such as taxes, assessments, insurance premiums, or, in the case of leased assets, rents
or other amounts payable under such leases) and have failed to pay, (ii) accrued and unpaid statutory liabilities of the Loan Parties which may result in claims that have lien priority or priority of payment over all or any portion of the
Obligations (including, without limitation, woodworkers’ liens), are a statutory trust and/or which are legally required to be paid prior to the repayment in full of such Obligations, other than the amount of those liabilities included in the
Carve-Out (the “Other Statutory Liabilities”) (a calculation of the reserve relating to the Other Statutory Liabilities including the components and the related amounts that constitute such claims and liabilities as of the Interim
Facility Effective Date is attached hereto as Schedule 2.5(A)) and (iii) amounts owing by the Borrower, the Parent or its Subsidiaries to any Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than a
Permitted Lien), which Lien or trust, in the Permitted Discretion of the Administrative Agent likely would have a priority superior to the Agent’s Liens (such as Liens or trusts in favor of landlords, warehousemen, carriers, mechanics,
materialmen, laborers, suppliers (including rights to repossess) liens or claims for unpaid stumpage charges or royalties or Liens in favor of parties that fell or transport lumber or raw materials, or Liens or trusts for ad valorem, excise,
sales, or other taxes where given priority under applicable law or other amounts payable in priority to the Agent’s Liens) in and to such item of the Collateral; provided, that prior to the earlier to occur of the consummation of a sale
of the assets constituting the lumber division or the pulp division (as the case may be) of the Loan Parties, the aggregate amount of the reserves established by the Administrative Agent in connection with the Carve-Out, Other Statutory Liabilities
and the Directors’ Charge shall not exceed $5,000,000 in the aggregate. Any reserves (including the amounts thereof) that may be established by the Administrative Agent pursuant to this Section 2.5(c) shall be subject to the determination
of the Administrative Agent in its Permitted Discretion. In the event that the Loan Parties did not obtain Collateral Access Agreements pursuant to the Pre-Petition Credit Agreement, the Administrative Agent may, in its Permitted Discretion,
establish such reserves against the Borrowing Base as it deems necessary with respect to the Collateral, which reserves shall, in the case of Inventory at any location for which a Collateral Access Agreement had not been obtained, be for 100% of the
Eligible Inventory at any such location. The Administrative Agent shall be entitled to establish a reserve against the Borrowing Base in an amount necessary to repay in full in cash the Net Pre-Petition Revolving Loan Amount then outstanding. A
calculation of the Borrowing Base as of November 15, 2007 (including a calculation of all reserves against the Borrowing Base established by the Administrative Agent as of such date) has been delivered to the Lenders prior to the date hereof.

  

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 2.6 Procedure for Revolving Credit Borrowing. Subject to Section 2.5 and the Initial Budget
(and after giving effect to any Budget Carryover Amount (as calculated and applied as set forth in the definition of such term in Section 1.1)), the Borrower may borrow under the Revolving Credit Commitments on any Business Day during the
Revolving Credit Commitment Period, provided, that the Borrower shall deliver to the Administrative Agent a Borrowing Notice (which Borrowing Notice must specify the currency in which such borrowing is to be made and be received by the
Administrative Agent prior to 12:00 noon, California time, (a) three Business Days prior to the requested Borrowing Date, in the case of Eurodollar Loans, or (b) one Business Day prior to the requested Borrowing Date, in the case of
Base Rate Loans). Each borrowing of Revolving Credit Loans under the Revolving Credit Commitments shall be in a minimum amount equal to (x) in the case of Base Rate Loans, $100,000 or a whole multiple of $50,000 in excess thereof (or, if the
then aggregate Available Revolving Credit Commitments are less than $100,000, such lesser amount) and (y) in the case of Eurodollar Loans, $100,000 or a whole multiple of $50,000 in excess thereof; provided, that the Swing Line Lender
may request, on behalf of the Borrower, borrowings of Base Rate Loans under the Revolving Credit Commitments in other amounts pursuant to Section 2.8. Upon receipt of any such Borrowing Notice from the Borrower, the Administrative Agent shall
promptly notify each Revolving Credit Lender thereof. During any Period, each Revolving Credit Lender will make its Pro Rata Share of the amount of each borrowing of Revolving Credit Loans available to the Administrative Agent for the account of the
Borrower to the applicable Administrative Agent’s Account prior to 10:00 A.M., California time, on the Borrowing Date requested by the Borrower in funds immediately available to the Administrative Agent in the Applicable Currency. Such
borrowing will then be made available to the Borrower by the Administrative Agent in like funds as received by the Administrative Agent to the applicable Designated Account. 
 2.7 Swing Line Commitment. (a) Subject to the terms and conditions hereof, the Swing Line Lender agrees that, during the Revolving Credit
Commitment Period, it will make available to the Borrower in the form of swing line loans (“Swing Line Loans”) a portion of the credit otherwise available to the Borrower under the Revolving Credit Commitments; provided, that
(i) the aggregate principal amount of Swing Line Loans outstanding at any time shall not exceed the Swing Line Commitment then in effect (notwithstanding that the Swing Line Loans outstanding at any time, when aggregated with the Swing Line
Lender’s other outstanding Revolving Credit Loans hereunder, may exceed the Swing Line Commitment then in effect or the Swing Line Lender’s Revolving Credit Commitment then in effect), (ii) the Total Revolving Extensions of Credit
shall not exceed the least of (x) the Total Revolving Credit Commitments, (y) the then current Borrowing Base, less the amount of any Reinstated Pre-Petition Revolving Loan Obligations, and (z) for any week, the principal amount of
the Total Revolving Extensions of Credit projected to be outstanding during such week as set forth in the Initial Budget for such week plus the Budget Carryover Amount (to be calculated and applied as set forth in the definition of such term in
Section 1.1), less the amount of any Reinstated Pre-Petition Revolving Loan Obligations and the Net Pre-Petition Revolving Loan Amount then outstanding, (iii) the Borrower shall not request, and the Swing Line Lender shall not knowingly
and intentionally make, any Swing Line Loan if, after giving effect to the making of such Swing Line Loan, the aggregate amount of the Available Revolving Credit Commitments would be less than zero, and 

  

 44 

 
(iv) the aggregate principal amount of the Revolving Credit Loans and Swing Line Loans then outstanding, does not exceed the Maximum Revolving Credit Cash
Amount. During the Revolving Credit Commitment Period, the Borrower may use the Swing Line Commitment by borrowing, repaying and reborrowing, all in accordance with the terms and conditions hereof. Swing Line Loans shall be Base Rate Loans only. The
Swing Line Loans shall be denominated in either Dollars or Canadian Dollars at the option of the Borrower. 
 (b) The Borrower shall repay
all outstanding Swing Line Loans on the Final Maturity Date. 
 2.8 Procedure for Swing Line Borrowing; Refunding of Swing Line Loans.
(a) The Borrower may borrow under the Swing Line Commitment on any Business Day during the Revolving Credit Commitment Period, provided the Borrower shall give the Swing Line Lender irrevocable telephonic notice confirmed promptly in
writing (which telephonic notice must be received by the Swing Line Lender not later than 12:00 noon, California time, on the Business Day immediately preceding the proposed Borrowing Date), specifying (i) the amount to be borrowed and the
currency in which such borrowing is to be made, and (ii) the requested Borrowing Date. Each borrowing under the Swing Line Commitment shall be in an amount equal to $50,000 or a whole multiple of $50,000 in excess thereof. Not later than 10:00
A.M., California time, on the Borrowing Date specified in the Borrowing Notice in respect of any Swing Line Loan, the Swing Line Lender shall make available to the Administrative Agent to the applicable Administrative Agent’s Account an amount
in immediately available funds equal to the amount of such Swing Line Loan in the Applicable Currency. The Administrative Agent shall make the proceeds of such Swing Line Loan available to the Borrower on such Borrowing Date in like funds as
received by the Administrative Agent to the applicable Designated Account. 
 (b) The Swing Line Lender, at any time and from time to time in
its sole and absolute discretion may, on behalf of the Borrower (which hereby irrevocably directs the Swing Line Lender to act on its behalf), on one Business Day’s notice given by the Swing Line Lender no later than 2:00 P.M., California
time, request each Revolving Credit Lender to make, and each Revolving Credit Lender hereby agrees to make, a Revolving Credit Loan in the Applicable Currency (which shall initially be a Base Rate Loan), in an amount equal to such Revolving Credit
Lender’s Pro Rata Share of the aggregate amount of the Swing Line Loans (the “Refunded Swing Line Loans”) outstanding on the date of such notice, to repay the outstanding Swing Line Loans. Each Revolving Credit Lender shall
make the amount of such Revolving Credit Loan available to the Administrative Agent to the Applicable Administrative Agent’s Account in the Applicable Currency in immediately available funds, not later than 12:00 noon, California time, one
Business Day after the date of such notice. The proceeds of such Revolving Credit Loans shall be made immediately available by the Administrative Agent to the Swing Line Lender for application by the Swing Line Lender to the repayment of the
Refunded Swing Line Loans. 
 (c) If prior to the time a Revolving Credit Loan would have otherwise been made pursuant to
Section 2.8(b), for any reason, as determined by the Swing Line Lender in its sole discretion, Revolving Credit Loans may not be made as contemplated by Section 2.8(b), each Revolving Credit Lender shall, on the date such Revolving Credit
Loan was to have been made pursuant to the notice referred to in Section 2.8(b) (the “Refunding Date”), purchase for 

  

 45 

 
cash in the Applicable Currency an undivided participating interest in the then outstanding Swing Line Loans by paying to the Swing Line Lender an amount
(the “Swing Line Participation Amount”) equal to such Revolving Credit Lender’s Pro Rata Share of the sum of the aggregate principal amount of Swing Line Loans then outstanding which were to have been repaid with such Revolving
Credit Loans. 
 (d) Whenever, at any time after the Swing Line Lender has received from any Revolving Credit Lender such Lender’s Swing
Line Participation Amount, the Swing Line Lender receives any payment on account of the Swing Line Loans, the Swing Line Lender will distribute to such Lender its Swing Line Participation Amount in the Applicable Currency (appropriately adjusted, in
the case of interest payments, to reflect the period of time during which such Lender’s participating interest was outstanding and funded and, in the case of principal and interest payments, to reflect such Lender’s pro rata
portion of such payment if such payment is not sufficient to pay the principal of and interest on all Swing Line Loans then due); provided, however, that in the event that such payment received by the Swing Line Lender is required to
be returned, such Revolving Credit Lender will return to the Swing Line Lender any portion thereof previously distributed to it by the Swing Line Lender in the Applicable Currency. 
 (e) Each Revolving Credit Lender’s obligation to make the Loans referred to in Section 2.8(b) and to purchase participating interests pursuant
to Section 2.8(c) shall be absolute and unconditional and shall not be affected by any circumstance, including, without limitation, (i) any setoff, counterclaim, recoupment, defense or other right which such Revolving Credit Lender or the
Borrower may have against the Swing Line Lender, the Borrower or any other Person for any reason whatsoever; (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other conditions specified
in Section 5; (iii) any adverse change in the condition (financial or otherwise) of the Borrower; (iv) any breach of this Agreement or any other Loan Document by the Borrower, any other Loan Party or any other Revolving Credit Lender;
or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. 
 2.9 Repayment of
Loans; Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay to the Administrative Agent in the Applicable Currency to the applicable Administrative Agent’s Account for the account of the appropriate Lender,
(i) the then unpaid principal amount of each Revolving Credit Loan of such Revolving Credit Lender on the Final Maturity Date, (ii) the then unpaid principal amount of each Swing Line Loan of such Swing Line Lender on the Final Maturity
Date, and (iii) the then unpaid principal amount of each Term Loan B (including the outstanding Term Loan B PIK Amount) on the Final Maturity Date. The Borrower hereby further agrees to pay interest on the unpaid principal amount of the Loans
from time to time outstanding from the date hereof until payment in full thereof at the rates per annum, and on the dates, set forth in Section 2.16. 
 (b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of the Borrower to such Lender resulting from each Loan of such Lender from time to time, including
the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement. 
  

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 (c) The Administrative Agent shall maintain a register and a subaccount therein for each Lender, in which
shall be recorded (i) the amount of each Loan made hereunder (the “Registered Loans”) and any Note evidencing such Loan, the Type of such Loan and each Interest Period applicable thereto, (ii) the amount of any principal
or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) both the amount of any sum received by such Agent hereunder from the Borrower and each Lender’s share thereof (the
“Register”). 
 (d) The entries made in the Register and the accounts of each Lender maintained pursuant to
Section 2.9(c) shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided, however, that the failure of any
Lender or the Administrative Agent to maintain the Register or any such account, or any error therein, shall not in any manner affect the obligation of the Borrower to repay (with applicable interest) the Loans made to the Borrower by such Lender in
accordance with the terms of this Agreement. 
 (e) The Borrower agrees that, upon request to the Administrative Agent by any Lender, the
Borrower will promptly execute and deliver to such Lender (or, if requested by such Lender, to such Lender and its registered assigns) a promissory note of the Borrower evidencing any Term Loans, Revolving Credit Loans or Swing Line Loans, as the
case may be, of such Lender, in form and substance reasonably satisfactory to the Agents and the applicable Lender; provided, that delivery of Notes shall not be a condition precedent to the occurrence of the Interim Facility Effective Date
or the making of the Loans on the Interim Facility Effective Date and the obligations of the Borrower in respect of each Loan shall be enforceable in accordance with the provisions of the Loan Documents whether or not evidenced by any Note.

 (f) If, notwithstanding the terms of this Agreement, any Agent receives any payment from or on behalf of the Borrower in a currency other
than the Applicable Currency, such Agent may convert the payment (including, without limitation, the monetary proceeds of any realization upon any Collateral and any funds then held in a cash collateral account) into the Applicable Currency at the
Currency Exchange Rate in the manner contemplated by Section 10.18. To the extent permitted by law, the obligation shall be satisfied only to the extent of the amount actually received by such Agent upon such conversion. 
 2.10 Fees. 
 (a) The Borrower shall
pay to the Administrative Agent, for the account of each Revolving Credit Lender, a commitment fee in Dollars for the period from and including the date hereof to the last day of the Revolving Credit Commitment Period, computed at the Commitment Fee
Rate, on the average daily amount of the Available Revolving Credit Commitment of such Lender during the period for which payment is made, payable monthly in arrears on the first day of each month and on the Final Maturity Date, commencing on the
first of such dates to occur after the date hereof. 
 (b) On the Interim Facility Effective Date, the Borrower shall pay to the
Administrative Agent, for the account of the Lenders, in accordance with their Pro Rata Shares (assuming for the purposes of this Section 2.10(b) that the Total Revolving Credit Commitment of the Revolving Credit Lenders is $4,000,000) a
non-refundable closing fee (the “Closing Fee”) in an amount equal to $600,000, which shall be deemed fully earned when paid. 
  

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 (c) The Borrower shall pay, in accordance with the terms of the Fee Letter, the fees set forth in the Fee
Letter, in Dollars, as and when due and payable under the terms of the Fee Letter. 
 (d) From and after the Interim Facility Effective Date
and until the Final Maturity Date, the Borrower shall pay the Administrative Agent (for the ratable benefit of the Lenders with a Revolving Credit Commitment, subject to any agreements between the Administrative Agent and individual Lenders), a
monthly Letter of Credit fee in Dollars (in addition to the charges, commissions, fees, and costs set forth in Section 3.5) computed at a rate per annum equal to the Applicable Revolver Margin in effect on the first day of such month with
respect to Eurodollar Loans times the average daily amount of the Letter of Credit Usage during the preceding month, such fee to be payable in arrears on the first day of each calendar month. 
 2.11 Termination or Reduction of Commitments. (a) The Borrower shall have the right, upon not less than three Business Days’ written
notice to the Administrative Agent, to terminate the Revolving Credit Commitments or, from time to time, to reduce the aggregate amount of the Revolving Credit Commitments; provided, that no such termination or reduction of Revolving Credit
Commitments shall be permitted if, after giving effect thereto and to any prepayments of the Revolving Credit Loans and Swing Line Loans made on the effective date thereof, the Total Revolving Extensions of Credit would exceed the Total Revolving
Credit Commitments. Any such reduction shall be in an amount equal to $500,000, or a whole multiple of $50,000 in excess thereof, and shall reduce permanently the Revolving Credit Commitments then in effect. Each notice delivered by the Borrower
pursuant to this Section shall be irrevocable; provided, that a notice of termination of the Revolving Credit Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities,
in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition in not satisfied. 
 (b) The Revolving Loan Commitment shall automatically reduce by the amount of Net Cash Proceeds applied to repay Revolving Credit Loans under
Section 2.19(a)(iii) and shall be reduced to zero at 12:00 Noon California Time on the Final Maturity Date. Once reduced the Revolving Loan Commitment may not be increased. Each such reduction of the Revolving Loan Commitment shall reduce the
Revolving Loan Commitment of each Lender proportionately in accordance with its Pro Rata Share thereof. 
 (c) The Term Loan B Commitment
shall automatically reduce by the amount of each Term Loan B made in accordance with Section 2.1 and shall be reduced to zero at 12:00 Noon California Time on the Final Maturity Date. Once reduced the Term Loan B Commitments may not be
increased. Each such reduction of the Total Term Loan B Commitment shall reduce the Term Loan B Commitment of each Lender proportionately in accordance with its Pro Rata Share thereof. 
  

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 2.12 Optional Prepayments. 
 (a) Subject to Section 2.12(c), the Borrower may at any time and from time to time prepay the Revolving Credit Loans or Swing Line Loans, in whole or
in part, in the Applicable Currency without premium or penalty (except as otherwise provided herein), upon, in the case the Revolving Credit Loans, (x) irrevocable written notice (except as provided below) delivered to the Administrative Agent
at least three Business Days prior thereto, in the case of Revolving Credit Eurodollar Loans, and (y) irrevocable written notice (except as provided below) delivered to the Administrative Agent at least one Business Day prior thereto, in the
case of Revolving Credit Base Rate Loans, which notice shall specify the date and amount of such prepayment and whether such prepayment is of Eurodollar Loans or Base Rate Loans; provided, that if a Eurodollar Loan is prepaid on any day other
than the last day of the Interest Period applicable thereto, the Borrower shall also pay, in Dollars, any amounts owing pursuant to Section 2.23. No prior notice is required for the prepayment of Swing Line Loans. Upon receipt of any such
notice the Administrative Agent shall promptly notify each relevant Lender thereof. Except as provided below, if any such notice is given, the amount specified in such notice shall be due and payable, in the Applicable Currency, on the date
specified therein, together with (except in the case of Revolving Credit Loans that are Base Rate Loans and Swing Line Loans) accrued interest to such date on the amount prepaid. Each notice delivered by the Borrower pursuant to this Section shall
be irrevocable; provided, that a notice of prepayment delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice
to the Administrative Agent on or prior to the specified effective date) if such condition in not satisfied. Partial prepayments of Revolving Credit Loans shall be in an aggregate principal amount of $100,000 or a whole multiple of $50,000 in excess
thereof. Partial prepayments of Swing Line Loans shall be in an aggregate principal amount of $50,000 or a whole multiple of $50,000 in excess thereof. 
 (b) Subject to Section 2.12(c), the Borrower may at any time and from time to time prepay the Term Loan B (including the outstanding Term Loan B PIK Amount), in whole or in part, upon irrevocable written notice
(except as provided below) delivered to the Administrative Agent, at least three Business Days prior thereto in the case of Eurodollar Loans and at least one Business Day prior thereto in the case of Base Rate Loans, which notice shall specify the
date and amount of such prepayment, and whether such prepayment is of Eurodollar Loans or Base Rate Loans; provided (i) the Availability is not less than $25,000,000 after giving effect to such prepayment, and (ii) that if a
Eurodollar Loan is prepaid on any day other than the last day of the Interest Period applicable thereto, the Borrower shall also pay in Dollars any amounts owing pursuant to Section 2.23. Upon receipt of any such notice the Administrative Agent
shall promptly notify each relevant Lender thereof. Except as provided below, if any such notice is given, the amount specified in such notice shall be due and payable in Dollars on the date specified therein, together with accrued interest to such
date on the amount prepaid. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided, that a notice of prepayment delivered by the Borrower may state that such notice is conditioned upon the effectiveness
of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition in not satisfied. Partial prepayments of Term Loan B
(including the outstanding Term Loan B PIK Amount) shall be in an aggregate principal amount of $500,000 or a whole multiple of $50,000 in excess thereof. 
  

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 (c) All payments under this Agreement and all proceeds of Collateral shall be applied to the Obligations
pursuant to Section 2.19. 
 2.13 Mandatory Prepayments. 
 (a) On the date of any Asset Sale or Recovery Event by the Parent or any of its Subsidiaries, the Borrower shall prepay the outstanding principal amount
of the Loans (including the outstanding Term Loan B PIK Amount) (such payments to be applied as set forth in Section 2.19 in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection with such Asset Sale or Recovery
Event. Nothing contained in this subsection (a) shall permit the Parent or any of its Subsidiaries to make an Asset Sale of any property other than in accordance with Section 7.5. 
 (b) If on any date any Capital Stock shall be issued by the Parent or any of its Subsidiaries, then on the date of such issuance, the Borrower shall
prepay the Loans (including the outstanding Term Loan B PIK Amount) by an amount equal to the Capital Stock Issuance Proceeds, such amount to be applied as set forth in Section 2.19. If on any date any Indebtedness (other than Indebtedness
permitted under Section 7.2) shall be incurred by the Parent or any of its Subsidiaries, then on the date of such incurrence, the Loans (including the outstanding Term Loan B PIK Amount) shall be prepaid by an amount equal to 100% of the amount
of the proceeds of such incurrence (such amount to be applied as set forth in Section 2.19). 
 (c) During the Interim Period, on any
date upon which the Parent or any of its Subsidiaries shall receive any Net Cash Proceeds of any Revolving Priority Borrowing Base Collateral, then, in such event, the Borrower shall, first repay the outstanding principal amount of the
Pre-Petition Revolving Loan Obligations in an amount equal to 100% of such Net Cash Proceeds immediately upon receipt thereof by the Borrower or any representative of the Borrower’s estate to the extent of the aggregate outstanding amount of
Pre-Petition Revolving Loan Obligations in accordance with the terms of the Interim Bankruptcy Court Orders (and such amounts shall be applied in accordance with Section 2.19). 
 (d) If at any time during the Revolving Credit Commitment Period (i) the amount of the Total Revolving Extensions of Credit exceeds the lesser of
(x) the then current Borrowing Base, less the amount of any Reinstated Pre-Petition Revolving Loan Obligations, and (y) the Total Revolving Credit Commitments, or (ii) the Revolving Credit Loans (including any Reinstated Pre-Petition
Revolving Loan Obligations and the Net Pre-Petition Revolving Loan Amount then outstanding) and Swing Line Loans exceeds the Maximum Revolving Credit Cash Amount, the Borrower shall, without notice or demand, prepay, the Revolving Credit Loans and
Swing Line Loans in an aggregate principal amount equal to such excess; provided, that if the aggregate principal amount of such Revolving Credit Loans and Swing Line Loans then outstanding is less than the amount of such excess (because
Letter of Credit Usage constitutes a portion thereof), the Borrower shall, to the extent of the balance of such excess, cash collateralize such Letters of Credit in the Applicable Currency in an amount equal to 105% of the Letter of Credit Usage.

  

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 (e) On the date upon which the Parent or any of its Subsidiaries shall receive any
Extraordinary Receipt, the Borrower shall prepay the Loans (including the outstanding Term Loan B PIK Amount) in an amount equal to the amount of such Extraordinary Receipt (such amount to be applied as set forth in Section 2.19. 
 (f) If, during any month the Parent or any of its Subsidiaries shall receive any Duty Refunds, then, on the date of receipt of such Duty Refunds, the
Borrower shall prepay the Loans (including the outstanding Term Loan B PIK Amount) in an amount equal to 100% of the amount of all such Duty Refunds received during such month, net of any reasonable expenses incurred in collection thereof and net of
any Canadian federal and provincial income taxes incurred in connection therewith calculated at the applicable Canadian statutory rate (such amount to be applied as set forth in Section 2.19). 
 (g) In the event that the Lenders are required to repay or disgorge to the Borrower, or any representatives of the Borrower’s estate, and have
repaid, all or any portion of the Pre-Petition Revolving Loan Obligations authorized and directed to be repaid pursuant to the Interim Facility Bankruptcy Court Orders or the Final Facility Bankruptcy Court Orders, as the case may be, or any payment
on account of the Pre-Petition Revolving Loan Obligations or the Pre-Petition Term Loan Obligations made to any Lender is rescinded for any reason whatsoever, including, but not limited to, as a result of any Avoidance Action, or any other action,
suit, proceeding or claim brought under any other provision of any applicable Bankruptcy Code or any applicable state or provincial law, or any other similar provisions under any other state, federal or provincial statutory or common law (all such
amounts being hereafter referred to as the “Avoided Payments”), then, in such event, the Borrower shall prepay the outstanding principal amount of the Loans in an amount equal to 100% of such Avoided Payments immediately upon
receipt of the Avoided Payments by the Borrower or any representative of the Borrower’s estate (such amounts to be applied as set forth in Section 2.19); provided, however that any proceeds of any Avoided Payments
(i) constituting Reinstated Pre-Petition Revolving Loan Obligations, shall first be used to repay the principal amount of the Revolving Credit Loans (and shall permanently reduce the Total Revolving Credit Commitment in the amount of such
prepayment) to the extent that proceeds of the Revolving Loans made hereunder were used to repay the Pre-Petition Revolving Loan Obligations in accordance with the terms of the Final Bankruptcy Court Orders, and (ii) that reinstate any
Pre-Petition Term Loan Obligations that had been repaid, shall first be used to repay the principal amount of the Term Loan B; and provided further, that subject to the terms of the applicable order of the Bankruptcy Court relating to
the Reinstated Pre-Petition Revolving Loan Obligations, such Reinstated Pre-Petition Revolving Loan Obligations shall share a pari passu right of repayment with the Revolving Credit Loans hereunder as set forth in Section 2.19 as if the
Reinstated Pre-Petition Revolving Loan Obligations were Revolving Loans made hereunder. 
 (h) Without limiting any other provision of this
Agreement or any other Loan Document permitting or requiring prepayment of the Loans (including the outstanding Term Loan B PIK Amount) in whole or in part, the Borrower shall prepay the Loans (including the outstanding Term Loan B PIK Amount) in
full on the date which is the thirtieth (30th) day following the Interim Facility Effective Date in the event the Final Bankruptcy Court Orders shall not have been entered on or before such date. 
  

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 (i) At any time when the aggregate principal amount of all Loans (including the outstanding Term Loan B
PIK Amount), the Net Pre-Petition Revolving Loan Amount then outstanding and the Reinstated Pre-Petition Revolving Loan Obligations exceeds the maximum principal amount of Loans (including the outstanding Term Loan B PIK Amount) projected to be
outstanding at such time as set forth in the Initial Budget, plus the Budget Carryover Amount (to be calculated and applied as set forth in the definition of such term in Section 1.1), the Borrower will immediately prepay the Loans (including
the outstanding Term Loan B PIK Amount) to the full extent of any such excess. On each day that any Loans (including the outstanding Term Loan B PIK Amount) are outstanding and not prepaid, the Borrower shall hereby be deemed to represent and
warrant to the Agents and the Lenders that the aggregate principal amount of all Loans (including the outstanding Term Loan B PIK Amount) outstanding on such day does not exceed the maximum principal amount of Loans (including the outstanding Term
Loan B PIK Amount) projected to be outstanding at such time as set forth in the Initial Budget, plus the Budget Carryover Amount (to be calculated and applied as set forth in the definition of such term in Section 1.1) (such amounts to be
applied as set forth in Section 2.19). 
 (j) Notwithstanding any other provision of this Agreement, upon the date of the closing of a
sale of all or substantially all of the Loan Parties’ assets (which shall include a sale of both the lumber and pulp divisions of the Loan Parties) pursuant to Section 363 of the US Bankruptcy Code and the CCAA, whether or not at such time
an Event of Default has occurred and is continuing, the Net Cash Proceeds shall (to the extent of such proceeds) be deposited in a segregated interest bearing account to be established pursuant to and subject to the terms of an order of the
applicable Bankruptcy Court for the purposes of satisfying any amount which is determined to be due and owing in respect of the Carve-Out as of such Acceleration Date or Final Maturity Date, as applicable. All Net Cash Proceeds in excess of the
amount necessary to satisfy the Carve-Out shall be distributed in accordance with Section 2.13. If after the final Disposition of all or substantially all of the Collateral, there are insufficient Net Cash Proceeds held in any such segregated
account to satisfy all of the obligations of the Loan Parties that are due and owing under the Carve-Out, the Lenders hereby severally agree to, first, return to the Borrower any Net Cash Proceeds previously received by them in connection with any
prior Asset Sale in an amount equal to such deficiency, and, second, to fund the deficiency to the extent that such amounts are included in clause “first” of the definition of the term “Agreed Administrative Expense
Priorities”, but in any event in an amount not to exceed (i) in the case of the Term Loan Lenders, the unfunded portion of such Lender’s Commitment (such amount to be determined based on the amount of such Commitment as in effect on
the Interim Facility Effective Date) and (ii) in the case of the Revolving Credit Lenders, an amount equal to the lesser of such Lender’s Pro Rata Share of (A) the Revolving Credit Loan Availability as of the date immediately
preceding the date of the closing of any such sale (assuming for the purposes of determining such amount, that any reserves that have been established in connection with liabilities under the Carve-Out have been released and the Revolving Credit
Loans that would not otherwise have been available as a result of such reserve will be funded), and (B) the unfunded portion of the Total Revolving Credit Commitment (such amount to be determined based on the amount of such Total Revolving
Credit Commitment as in effect on the Interim Facility Effective Date); provided, that in the event that the amount of Net Cash Proceeds held in any such segregated account shall exceed the amount required to satisfy amounts due and owing in
respect of the Carve-Out at any time, then any such excess amount shall be paid to the Administrative Agent to be applied in accordance with Section 2.19. 
  

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 (k) Each payment of the Loans under Sections 2.12 and 2.13 shall be made in the Applicable Currency and
shall be accompanied by accrued interest to the date of such payment on the amount paid. 
 2.14 Conversion and Continuation Options.
(a) The Borrower may elect from time to time to convert Eurodollar Loans to Base Rate Loans by giving the Administrative Agent at least one Business Day’s prior irrevocable notice of such election, provided, that any such conversion
of Eurodollar Loans may be made only on the last day of an Interest Period with respect thereto. The Borrower may elect from time to time to convert Base Rate Loans to Eurodollar Loans by giving the Administrative Agent at least three Business
Days’ prior irrevocable notice of such election by delivery to the Administrative Agent of a Eurodollar Notice (which notice shall specify the length of the initial Interest Period therefor), provided, that no Base Rate Loan under a
particular Facility may be converted into a Eurodollar Loan (i) when any Event of Default has occurred and is continuing and any Agent has, or the Majority Facility Lenders in respect of such Facility have, determined in its or their sole
discretion not to permit such conversions or (ii) after the date that is one month prior to the final scheduled termination or maturity date of such Facility. Upon receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof. 
 (b) The Borrower may elect to continue any Eurodollar Loan as such upon the expiration of the then current
Interest Period with respect thereto by giving irrevocable notice to the Administrative Agent in accordance with the applicable provisions of the term “Interest Period” set forth in Section 1.1, of the length of the next Interest
Period to be applicable to such Loans, provided, that no Eurodollar Loan under a particular Facility may be continued as such (i) when any Event of Default has occurred and is continuing and any Agent has, or the Majority Facility
Lenders in respect of such Facility have, determined in its or their sole discretion not to permit such continuations or (ii) after the date that is one month prior to the final scheduled termination or maturity date of such Facility, and
provided further that if the Borrower shall fail to give any required notice as described above in this paragraph or if such continuation is not permitted pursuant to the preceding proviso, such Loans shall be converted automatically
to Base Rate Loans on the last day of such then expiring Interest Period. Upon receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender thereof. 
 2.15 Minimum Amounts and Maximum Number of Eurodollar Tranches. Notwithstanding anything to the contrary in this Agreement, all borrowings,
conversions, continuations and optional prepayments of Eurodollar Loans and all selections of Interest Periods shall be in such amounts and be made pursuant to such elections so that (a) after giving effect thereto, the aggregate principal
amount of the Eurodollar Loans comprising each Eurodollar Tranche shall be equal to $1,000,000 or a whole multiple of $500,000 in excess thereof and (b) no more than ten Eurodollar Tranches shall be outstanding at any one time. 
 2.16 Interest Rates and Payment Dates. 
 (a) Each Eurodollar Loan that is denominated in Dollars shall bear interest for each day during each Interest Period with respect thereto at a rate per annum equal to the US Eurodollar Rate determined for such day plus the Applicable Margin
in effect for such day. Each Eurodollar Loan that is denominated in Canadian Dollars shall bear interest for each day during each Interest Period with respect thereto at a rate per annum equal to the Canadian Eurodollar Rate determined for such day
plus the Applicable Margin then in effect. 
  

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 (b) Each Base Rate Loan that is denominated in Dollars shall bear interest for each day on which it is
outstanding at a rate per annum equal to the US Base Rate in effect for such day plus the Applicable Margin in effect for such day. Each Base Rate Loan that is denominated in Canadian Dollars shall bear interest for each day on which it is
outstanding at a rate per annum equal to the Canadian Base Rate in effect for such day plus the Applicable Margin then in effect. 
 (c) Upon
the occurrence and during the continuation of an Event of Default (and at the election of any Agent or the Required Lenders) all Obligations (except for undrawn Letters of Credit and except for Bank Product Obligations) shall bear interest
(x) in the case of Loans, at a rate per annum that is equal to the rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this Section plus 2.0% per annum, (y) in the case of all other amounts
denominated in Dollars (other than Letter of Credit fees provided for in Section 2.10(d)), at a rate per annum equal to the rate then applicable to Term Loans that are Base Rate Loans plus 2% per annum, and (z) in the case of all
other amounts denominated in Canadian Dollars (other than Letter of Credit fees provided for in Section 2.10(d)), at a rate per annum equal to the rate then applicable to Revolving Credit Loans that are Base Rate Loans denominated in Canadian
Dollars plus 2% per annum, and the Letter of Credit fees provided for in Section 2.10(d) shall be increased 2 percentage points above the per annum rate otherwise applicable thereunder. 
 (d) Interest shall be payable in arrears on each Interest Payment Date in the Applicable Currency, provided, that interest accruing pursuant to
paragraph (c) of this Section shall be payable in the Applicable Currency from time to time on demand. 
 (e) Notwithstanding any
provision to the contrary contained in this Section 2.16, all interest that is payable with respect to the Term Loan B that has accrued during the period from the date of such Term Loan B until such principal amount is repaid, shall be
capitalized on each Interest Payment Date and added to the aggregate outstanding principal amount of the Term Loan B (inclusive of any Term Loan B PIK Amount theretofore so added). For purposes of this Agreement and the other Loan Documents, the
amounts so capitalized hereunder shall bear interest in accordance with Section 2.16 as though such amounts constituted a Term Loan B made by the Term Loan B Lenders hereunder on each Interest Payment Date for all purposes of this Agreement. On
each Interest Payment Date the Borrower shall elect to pay interest on the Term Loan B PIK Amount created on such date at either (i) a rate per annum equal to the US Eurodollar Rate determined for such day plus the Applicable Margin in effect
for such day, or (ii) at a rate per annum equal to the US Base Rate in effect for such day plus the Applicable Margin in effect for such day. To the extent that the Term Loan B PIK Amount exceeds the undrawn Total Term Loan B Commitment such
amount shall be paid in cash. 
 2.17 Computation of Interest and Fees. 
 (a) Interest, fees and commissions payable pursuant hereto shall be calculated on the basis of a 360-day year for the actual days elapsed (the yearly rate
of interest to which the 

  

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rate used in such calculation is equivalent is the rate so used multiplied by the actual number of days in the calendar year in which the same is to be
ascertained and (subject to the following proviso) divided by 360); provided, that, with respect to Base Rate Loans, the interest thereon shall be calculated on the basis of a 365- (or 366-, as applicable) day year for the actual days
elapsed. The Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of each determination of a Eurodollar Rate. Any change in the interest rate on a Loan resulting from a change in the Base Rate or the
Eurocurrency Reserve Requirements shall become effective as of the opening of business on the day on which such change becomes effective. The Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of the
effective date and the amount of each such change in interest rate. 
 (b) Each determination of an interest rate by the Administrative Agent
pursuant to any provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the absence of manifest error. 
 (c) Notwithstanding any provision hereof, in no event shall the aggregate “interest” (as defined in section 347 of the Criminal Code (Canada)) payable hereunder exceed the effective annual rate of interest on the “credit
advanced” (as defined in that section) hereunder lawfully permitted by that section and, if any payment, collection or demand pursuant to this Agreement in respect of that “interest” (as defined in that section) is determined to be
contrary to the provisions of that section, the amount of such payment, collection or demand in excess of that permitted under applicable law shall be deemed to have been made by mutual mistake of the Borrower and the applicable Lenders and the
amount of such excess payment or collection shall be refunded to the Borrower. For the purposes of this Agreement, the effective annual rate of interest shall be determined in accordance with generally accepted actuarial practices and principles
over the relevant term and, in the event of dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the Administrative Agent will, absent manifest error, be prima facie evidence of such rate. 
 (d) For the purpose of the Interest Act (Canada) and any other purpose, (i) the principle of deemed reinvestment of interest shall not apply to any
calculation under this Agreement, and (ii) the rates of interest and fees stipulated in this Agreement are intended to be nominal rates and not effective rates or yields. 
 2.18 Inability to Determine Interest Rate. If prior to the first day of any Interest Period: 
 (a) the Administrative Agent shall have reasonably determined (which determination shall be conclusive and binding upon the Borrower) that, by reason of
circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period, or 
 (b) the Administrative Agent shall have received notice from the Majority Facility Lenders in respect of the relevant Facility that the Eurodollar Rate determined or to be determined for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (as conclusively certified by such Lenders) of making or maintaining their affected Loans during such Interest Period, 

  

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the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and the relevant Lenders as soon as practicable thereafter. If such
notice is given (w) any Borrowing Notice or Eurodollar Notice given by the Borrower may be rescinded by the Borrower and, if not so rescinded, any Eurodollar Loans under the relevant Facility requested to be made on the first day of such
Interest Period shall be made as Base Rate Loans, (x) any Loans under the relevant Facility that were to have been converted on the first day of such Interest Period to Eurodollar Loans shall be continued as Base Rate Loans and (y) any
outstanding Eurodollar Loans under the relevant Facility shall be converted, on the last day of the then current Interest Period with respect thereto, to Base Rate Loans. Until such notice has been withdrawn by the Administrative Agent, no further
Eurodollar Loans under the relevant Facility shall be made or continued as such, nor shall the Borrower have the right to convert Loans under the relevant Facility to Eurodollar Loans. 
 2.19 Application and Allocation of Payments. (a) The Administrative Agent shall, apply all payments in respect of any Obligations and all
proceeds of the Collateral as follows: 
 (i) except as provided in Section 2.13(j) and in clause (iii) of this
Section 2.19(a), with respect to Revolving Priority Collateral and Proceeds thereof and payments made using Revolving Priority Collateral and Proceeds thereof (other than payments made using proceeds of Revolving Credit Loans), (1) first,
ratably to pay the Obligations in respect of any fees (including any fees or charges assessed by the Issuing Lender), expense reimbursements, indemnities and other amounts then due to the Pre-Petition Agents, Agents or the Issuing Lender until paid
in full; (2) second, ratably to pay the Obligations in respect of any fees (including Letter of Credit fees payable in connection with any Letters of Credit, but excluding any Applicable Prepayment Premium), expense reimbursements and
indemnities then due to the Revolving Credit Lenders until paid in full; (3) third, to pay interest due in respect of the Collateral Agent Advances then due to the Collateral Agent until paid in full; (4) fourth, to pay principal of the
Collateral Agent Advances then due to the Collateral Agent until paid in full; (5) fifth, (A) ratably to pay the Pre-Petition Revolving Loan Obligations until paid in full in cash (excluding any Applicable Prepayment Premium), and
thereafter (B) to pay interest due in respect of the Swing Line Loans to the Swing Line Lender until paid in full; (6) sixth, to pay principal of the Swing Line Loans to the Swing Line Lender until paid in full; (7) seventh, ratably
to pay interest due in respect of the Revolving Credit Loans (including any Reinstated Pre-Petition Revolving Loan Obligations) and unreimbursed L/C Disbursements then due to the Revolving Credit Lenders until paid in full; (8) eighth, ratably
to pay (x) principal of the Revolving Credit Loans (including any Reinstated Pre-Petition Revolving Loan Obligations) then due to the Revolving Credit Lenders until paid in full, (y) unreimbursed L/C Disbursements to the Issuing Lender
and/or the Revolving Credit Lenders, as applicable, until paid in full (or, to the extent such reimbursement obligations in respect of Letters of Credit are contingent, to provide cash collateral in an amount equal to 105% of the Letter of Credit
Usage to the Administrative Agent for the benefit of the Issuing Lender), and (z) to the Administrative Agent, for the benefit of the Bank Product Providers, to be held as cash collateral in an amount up to the amount of the Bank Product
Reserve established prior to the occurrence of, and not in contemplation of, the subject Event of Default; (9) ninth, ratably to pay the Pre-Petition Term Loan Obligations 

  

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in respect of any fees (excluding any Applicable Prepayment Premium), expense reimbursements and indemnities then due to the Pre-Petition Term Loan Lenders
until paid in full; (10) tenth, ratably to pay interest due in respect of the Pre-Petition Term Loan Obligations until paid in full; (11) eleventh, ratably to pay principal of the Pre-Petition Term Loan Obligations until paid in full;
(12) twelfth, ratably to pay the Obligations in respect of any fees, expense reimbursements and indemnities then due to the Term Loan Lenders until paid in full; (13) thirteenth, ratably to pay interest due in respect of the Term Loans
until paid in full; (14) fourteenth, ratably to pay principal of the Term Loans (including the outstanding Term Loan B PIK Amount) until paid in full; (15) fifteenth, to the Administrative Agent, to be held by it, for the benefit of the
Bank Product Providers, as cash collateral in an amount determined by the Administrative Agent in its Permitted Discretion as the amount necessary to secure the Loan Parties’ Obligations in respect of the then outstanding Bank Products;
(16) sixteenth, ratably to pay any Applicable Prepayment Premium then due and payable in respect of the Pre-Petition Revolving Credit Facility until paid in full; (17) seventeenth, ratably to pay any Applicable Prepayment Premium then due
and payable in respect of the Pre-Petition Term Loan Obligations until paid in full; and (18) eighteenth, to the ratable payment of all other Obligations then due and payable until paid in full; provided, that in the absence of an Event
of Default that has occurred and is continuing, any payments in respect of the Obligations and all proceeds of Revolving Priority Collateral shall only be applied to the items described in subclauses (4), (5)(A), (6), (8), (11), (14) and
(15) in the order in which they appear above in this clause (i); 
 (ii) except as provided in Section 2.13(j) and
in clause (iii) of this Section 2.19(a), with respect to Term Priority Collateral and Proceeds thereof and payments made using Term Priority Collateral and Proceeds thereof, (1) first, ratably to pay the Obligations in respect of any
fees (including any fees or charges assessed by the Issuing Lender), expense reimbursements, indemnities and other amounts then due to the Pre-Petition Agents, Agents or the Issuing Lender, until paid in full; (2) second, ratably to pay the
Pre-Petition Term Loan Obligations in respect of any fees (excluding any Applicable Prepayment Premium), expense reimbursements and indemnities then due to the Pre-Petition Term Loan Lenders until paid in full; (3) third, to pay interest due in
respect of the Collateral Agent Advances then due to the Collateral Agent until paid in full; (4) fourth, to pay principal of the Collateral Agent Advances then due to the Collateral Agent until paid in full; (5) fifth, ratably to pay
interest due in respect of the Pre-Petition Term Loan Obligations until paid in full; (6) sixth, ratably to pay principal of the Pre-Petition Term Loan Obligations until paid in full; (7) seventh, ratably to pay the Obligations in respect
of any fees, expense reimbursements and indemnities then due to the Term Loan Lenders until paid in full; (8) eighth, ratably to pay interest due in respect of the Term Loans until paid in full; (9) ninth, ratably to pay principal of the
Term Loans (including the outstanding Term Loan B PIK Amount) until paid in full; (10) tenth, (A) ratably to pay the Pre-Petition Revolving Loan Obligations until paid in full in cash (excluding any Applicable Prepayment Premium) and
thereafter (B) ratably to pay the Obligations in respect of any fees (including Letter of Credit fees payable in connection with any Letters of Credit, but excluding any Applicable Prepayment Premium), expense reimbursements and indemnities
then due to the Revolving Credit Lenders until paid in full; (11) eleventh, ratably to pay interest due in respect of the Swing Line Loans to the Swing Line Lender 

  

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until paid in full; (12) twelfth, ratably to pay principal of the Swing Line Loans to the Swing Line Lender until paid in full; (13) thirteenth,
ratably to pay interest due in respect of the Revolving Credit Loans (including any Reinstated Pre-Petition Revolving Loan Obligations) and unreimbursed L/C Disbursements then due to the Revolving Credit Lenders until paid in full;
(14) fourteenth, ratably to pay (x) principal of the Revolving Credit Loans (including any Reinstated Pre-Petition Revolving Loan Obligations) then due to the Revolving Credit Lenders until paid in full, (y) unreimbursed L/C
Disbursements to the Issuing Lender and/or the Revolving Credit Lenders, as applicable, until paid in full (or, to the extent such reimbursement obligations in respect of Letters of Credit are contingent, to provide cash collateral in an amount
equal to 105% of the Letter of Credit Usage to the Administrative Agent for the benefit of the Issuing Lender), and (z) to the Administrative Agent, for the benefit of the Bank Product Providers, to be held as cash collateral in an amount up to
the amount of the Bank Product Reserve established prior to the occurrence of, and not in contemplation of, the subject Event of Default; (15) fifteenth, ratably to pay any Applicable Prepayment Premium then due and payable in respect of the
Pre-Petition Term Loan Obligations until paid in full; (16) sixteenth, ratably to pay any Applicable Prepayment Premium then due and payable in respect of the Pre-Petition Revolving Credit Facility until paid in full; (17) seventeenth, to
the ratable payment of all other Obligations (other than Bank Product Obligations) then due and payable until paid in full; and (18) eighteenth, to the Administrative Agent, to be held by it, for the benefit of the Bank Product Providers, as
cash collateral in an amount determined by the Administrative Agent in its Permitted Discretion as the amount necessary to secure the Loan Parties’ Obligations in respect of the then outstanding Bank Products; provided, that in the
absence of an Event of Default that has occurred and is continuing, any payments in respect of the Obligations and all proceeds of Term Priority Collateral shall only be applied to the items described in subclauses (4), (6), (9), (10)(A), (12), and
(14) in the order in which they appear above in this clause (ii); and 
 (iii) with respect to the Proceeds of any Asset
Sale of all or substantially all of the assets or any Asset Sale pursuant to Section 6.17 or Capital Stock of any Person or any Recovery Event or any Extraordinary Receipt which Asset Sale or Recovery Event or Extraordinary Receipt includes
both (x) Revolving Priority Collateral and (y) Term Priority Collateral, then, except as otherwise provided in Section 2.13(j), such Proceeds and payments using such Proceeds shall be applied as follows: (1) first, ratably to pay
the Obligations in respect of any fees (including any fees or charges assessed by the Issuing Lender), expense reimbursements, indemnities and other amounts then due to the Pre-Petition Agents, Agents or the Issuing Lender until paid in full;
(2) second, ratably to pay interest due in respect of the Collateral Agent Advances then due to the Collateral Agent until paid in full; (3) third, ratably to pay principal of the Collateral Agent Advances then due to the Collateral Agent
until paid in full; (4) fourth, an amount equal to the net book value of the Revolving Priority Borrowing Base Collateral that is the subject of such Asset Sale or Recovery Event (including any Revolving Priority Borrowing Base Collateral owned
by a Person whose Capital Stock is the subject of such Asset Sale) (determined at the time of such Asset Sale or Recovery Event) or any Extraordinary Receipt constituting Revolving Priority Collateral shall be applied in accordance with
(x) first, subclause (2) of clause (i) above, and (y) second, subclauses (5) through (18) of clause (i) above, in each case, until paid in full; and (5) fifth, the remaining Proceeds 

  

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shall be applied in accordance with (x) first, subclause (2) of clause (ii) above, and (y) second, to subclauses (5) through
(18) of clause (ii) above, in each case, until paid in full; provided, that in the absence of an Event of Default that has occurred and is continuing, any payments in respect of the Obligations and all proceeds of Collateral shall
only be applied as follows: (x) first, to the item described in subclause (3) in this clause (iii), (y) second, an amount equal to the net book value of the Revolving Priority Borrowing Base Collateral that is the subject of such
Asset Sale or Recovery Event (including any Revolving Priority Borrowing Base Collateral owned by a Person whose Capital Stock is the subject of such Asset Sale) (determined at the time of such Asset Sale or Recovery Event) or any Extraordinary
Receipt constituting Revolving Priority Collateral shall be applied to the items described in subclauses (4), (5)(A), (6), (8), (11), (14) and (15) in the order in which they appear in clause (i) above, and (z) third, the
remaining Proceeds shall be applied to the items described in subclauses (4), (6), (9), (10)(A), (12), and (14) in the order in which they appear in clause (ii) above. 
 (b) Except as otherwise expressly provided in this Agreement, the Bankruptcy Court Orders or the Security Documents with respect to money to be held by
the Collateral Agent for a specific purpose, the Collateral Agent shall promptly forward to the Administrative Agent any proceeds of Collateral received by the Collateral Agent to be applied in accordance with the terms of this Agreement.

 (c) The Lenders and the Borrower hereby authorize the Administrative Agent to, and the Administrative Agent may, from time to time, charge
the Loan Account of the Borrower with any amount due and payable by the Loan Parties under any Loan Document. Each of the Lenders and the Borrower agrees that the Administrative Agent shall have the right to make such charges whether or not any
Default or Event of Default shall have occurred and be continuing or whether any of the conditions precedent in Sections 5.1, 5.2 or 5.3 have been satisfied. Any amount charged to the Loan Account of the Borrower shall be deemed a Revolving Credit
Loan hereunder made by the Revolving Credit Lenders to the Borrower, funded by the Administrative Agent on behalf of the Revolving Credit Lenders and subject to Section 2.5 of this Agreement. The Lenders and the Borrower confirm that any
charges which the Administrative Agent may so make to the Loan Account of the Borrower as herein provided will be made as an accommodation to the Borrower and at the Administrative Agent’s sole discretion, provided, that, (i) so
long as no Event of Default has occurred and is continuing or would result therefrom and (ii) to the extent that such charge does not exceed the then current Availability, the Administrative Agent shall from time to time upon the written
request of the Collateral Agent, charge the Loan Account of the Borrower with any amount due and payable under any Loan Document. 
 (d) Each
borrowing by the Borrower from the Lenders hereunder, each payment by the Borrower on account of any commitment fee or Letter of Credit fee (except as otherwise provided in Section 2.10), and any reduction of the Commitments of the Lenders,
shall be made pro rata according to the respective Pro Rata Shares of the relevant Lenders. Each payment in respect of fees or expenses payable to the Lenders hereunder shall be applied to the amounts of such obligations owing to the
applicable Lenders pro rata according to the respective amounts then due and owing to the applicable Lenders. 
  

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 (e) Each payment (including each prepayment) of the Term Loans B outstanding under the Term Loan B
Facility and interest thereon shall be allocated among the Term Loan B Lenders holding such Term Loans B pro rata based on the principal amount of such Term Loans B held by such Term Loan B Lenders. Amounts prepaid on account of the
Term Loans B may not be reborrowed. 
 (f) Reserved. 
 (g) Each payment (including each prepayment) by the Borrower on account of principal of and interest on the Revolving Credit Loans shall be made pro rata according to the respective outstanding principal
amounts of the Revolving Credit Loans then held by the Revolving Credit Lenders. 
 (h) Reserved. 
 (i) The application of any payment of Loans under any Facility (including optional and mandatory prepayments) shall be made, first, to Base Rate
Loans under such Facility and, second, to Eurodollar Loans under such Facility. Each payment of the Loans (except in the case of Swing Line Loans and Revolving Credit Loans that are Base Rate Loans) shall be accompanied by accrued interest to
the date of such payment on the amount paid. 
 (j) All payments (including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, fees or otherwise shall be made without setoff or counterclaim (irrespective of whether any such amounts are included in or excluded from the Initial Budget) and shall be made prior to 11:00 A.M, California time,
on the due date thereof to the Administrative Agent for the account of the relevant Lenders, to the applicable Administrative Agent’s Account, in the Applicable Currency and in immediately available funds. Any payment made by the Borrower after
11:00 A.M., California time, on any Business Day shall be deemed to have been on the next following Business Day. The Administrative Agent shall distribute such payments to the Lenders promptly upon receipt in like funds as received. If any
payment hereunder (other than payments on the Eurodollar Loans) becomes due and payable on a day other than a Business Day, such payment shall be extended to the next succeeding Business Day. If any payment on a Eurodollar Loan becomes due and
payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day unless the result of such extension would be to extend such payment into another calendar month, in which event such payment shall
be made on the immediately preceding Business Day. In the case of any extension of any payment of principal pursuant to the preceding two sentences, interest thereon shall be payable at the then applicable rate during such extension. 
 (k) Unless the Administrative Agent shall have been notified in writing by any Lender prior to a borrowing that such Lender will not make the amount that
would constitute its share of such borrowing available to the Administrative Agent, the Administrative Agent may assume that such Lender is making such amount available to the Administrative Agent and the Administrative Agent may, in reliance upon
such assumption, make available to the Borrower a corresponding amount. If such amount is not made available to the Administrative Agent by the required time on the Borrowing Date therefor, such Lender shall pay to the Administrative Agent, on
demand, such amount with interest thereon at a rate equal to the daily average Federal 

  

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Funds Effective Rate for the period until such Lender makes such amount immediately available to the Administrative Agent. A certificate of the
Administrative Agent submitted to any Lender with respect to any amounts owing under this paragraph shall be conclusive in the absence of manifest error. If such Lender’s share of such borrowing is not made available to the Administrative Agent
by such Lender within three Business Days after such Borrowing Date, the Administrative Agent shall also be entitled to recover such amount with interest thereon at the rate per annum applicable to the applicable Loans under the relevant Facility,
on demand, from the Borrower. 
 (l) Unless the Administrative Agent shall have been notified in writing by the Borrower prior to the date of
any payment due to be made by the Borrower hereunder that the Borrower will not make such payment to the Administrative Agent, the Administrative Agent may assume that the Borrower is making such payment, and the Administrative Agent may, but shall
not be required to, in reliance upon such assumption, make available to the Lenders their respective Pro Rata Shares of a corresponding amount. If such payment is not made to the Administrative Agent by the Borrower within three Business Days after
such due date, the Administrative Agent shall be entitled to recover, on demand, from each Lender to which any amount which was made available pursuant to the preceding sentence, such amount with interest thereon at the rate per annum equal to the
daily average Federal Funds Effective Rate. Nothing herein shall be deemed to limit the rights of the Administrative Agent or any Lender against the Borrower. 
 2.20 Loan Account and Accounting. The Administrative Agent shall maintain a loan account (the “Loan Account”) on its books to record: all Revolving Credit Loans and the Term Loans (including
the outstanding Term Loan B PIK Amount), all payments made by the Borrower, and all other debits and credits as provided in this Agreement with respect to the Loans or any other Obligations. All entries in the Loan Account shall be made in
accordance with the Administrative Agent’s customary loan agency administration practices as in effect from time to time. The balance in the Loan Account, as recorded on the Administrative Agent’s most recent printout or other written
statement, shall, absent manifest error, be prima facie evidence of the amounts due and owing to the Agents and Lenders by the Borrower; provided, that any failure to so record or any error in so recording shall not limit or otherwise affect
the Borrower’s duty to pay the Obligations. The Administrative Agent shall render to the Borrower a monthly accounting of transactions with respect to the Loans setting forth the balance of the Loan Account. Unless the Borrower notifies the
Administrative Agent in writing of any objection to any such accounting (specifically describing the basis for such objection), within thirty (30) days after the date thereof, each and every such accounting shall (absent manifest error) be
deemed final, binding and conclusive upon the Borrower in all respects as to all matters reflected therein. Only those items expressly objected to in such notice shall be deemed to be disputed by the Borrower. 
 2.21 Requirements of Law. (a) If any Lender or any Agent shall have determined that the adoption or implementation of, or any change in, any
law, rule, treaty or regulation, or any policy, guideline or directive of, or any change in, the interpretation or administration thereof by, any court, central bank or other administrative or Governmental Authority, or compliance by any Lender or
any Agent or any Person controlling any such Agent or Lender with any directive of, or guideline from, any central bank or other Governmental 

  

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Authority or the introduction of, or change in, any accounting principles applicable to any Agent or any Lender or any Person controlling any such Agent or
any such Lender (in each case, whether or not having the force of law) made subsequent to the date hereof (each a “Change in Law”), shall (i) subject such Agent or such Lender, or any Person controlling such Agent or such
Lender to any tax, duty or other charge with respect to this Agreement or any Loan made by such Agent or such Lender or any Letter of Credit issued by a Lender, or change the basis of taxation of payments to such Agent or such Lender or any Person
controlling such Agent or such Lender of any amounts payable hereunder (except for Non-Excluded Taxes covered by Section 2.22 and changes in the rate of tax on the overall net income of such Agent or such Lender or any Person controlling such
Agent or such Lender), (ii) impose, modify or deem applicable any reserve, special deposit or similar requirement against any Loan, any Letter of Credit or against assets of or held by, or deposits with or for the account of, or credit extended
by, such Agent or such Lender or any Person controlling such Agent or such Lender or (iii) impose on such Agent or such Lender or any Person controlling such Agent or such Lender any other condition regarding this Agreement or any Loan or
Letter of Credit, and the result of any event referred to in clause (i), (ii) or (iii) above shall be to increase the cost to such Agent or such Lender of making any Loan, issuing, guaranteeing or participating in any Letter of
Credit, or agreeing to make any Loan or issue, guaranty or participate in any Letter of Credit, or to reduce any amount received or receivable by such Agent or such Lender hereunder, then, upon demand by such Agent or such Lender, the Borrower shall
pay to such Agent or such Lender such additional amounts as will compensate such Agent or such Lender for such increased costs or reductions in amount. 
 (b) If any Agent or any Lender shall have determined that any Change in Law either (i) affects or would affect the amount of capital required or expected to be maintained by such Agent or such Lender or any
Person controlling such Agent or such Lender, and such Agent or such Lender determines that the amount of such capital is increased as a direct or indirect consequence of any Loans made or maintained, Letters of Credit issued or any guaranty or
participation with respect thereto, such Agent’s or such Lender’s or such other controlling Person’s other obligations hereunder, or (ii) has or would have the effect of reducing the rate of return on such Agent’s or such
Lender’s or such other controlling Person’s capital to a level below that which such Agent or such Lender or such controlling Person could have achieved but for such circumstances as a consequence of any Loans made or maintained, Letters
of Credit issued, or any guaranty or participation with respect thereto or any agreement to make Loans, to issue Letters of Credit or such Agent’s or such Lender’s or such other controlling Person’s other obligations hereunder (in
each case, taking into consideration, such Agent’s or such Lender’s or such other controlling Person’s policies with respect to capital adequacy), then, upon demand by such Agent or such Lender, the Borrower shall pay to such Agent or
such Lender from time to time such additional amounts as will compensate such Agent or such Lender for such cost of maintaining such increased capital or such reduction in the rate of return on such Agent’s or such Lender’s or such other
controlling Person’s capital. 
 (c) All amounts payable under this Section 2.21 (except interest payable under this clause (c))
shall bear interest from the date that is ten (10) days after the date of demand by any Agent or any Lender until payment in full to such Agent or such Lender at the Base Rate. A certificate of such Agent or such Lender claiming compensation
under this Section 2.21, specifying the event hereinabove described and the nature of such event shall be submitted by such Agent or such Lender to the Administrative Agent and the Borrower, setting 

  

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forth the additional amount due and an explanation of the calculation thereof, and such Agent’s or such Lender’s reasons for invoking the
provisions of this Section 2.21, and shall be final and conclusive absent manifest error. 
 (d) The obligations of the Borrower
pursuant to this Section shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder. 
 (e) Notwithstanding anything to the contrary in this Section 2.21, the Borrower shall not be required to compensate a Lender pursuant to this Section 2.21 for any amounts incurred more than 180 days prior to the date that such
Lender notifies the Borrower of such Lender’s intention to claim compensation therefor; provided, that, if the circumstances giving rise to such claim have a retroactive effect, then such 180-day period shall be extended to include the
period of such retroactive effect. 
 2.22 Taxes. 
 (a) Any and all payments made by any Loan Party hereunder or under any other Loan Documents shall be made free and clear of, and without deduction or withholding for or on account of, any present or future taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, and all interest, penalties, additions to tax or other liabilities with respect
thereto, excluding net income taxes imposed on the Arranger, any Agent or any Lender (or any transferee or assignee thereof (any such entity, “Transferee”)) by the jurisdiction in which such Lender or Transferee is organized or has
its principal lending office. If any Loan Party shall be required to deduct any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions, withholdings or liabilities (“Non-Excluded Taxes”) or any Other Taxes from
or in respect of any sum payable hereunder to the Agent, any Lender or any Transferee, (i) the sum payable shall be increased by the amount (an “additional amount”) necessary so that after making all required deductions
(including deductions applicable to additional amounts payable under this Section 2.22(a)) the Agent, such Lender or such Transferee shall receive an amount equal to the sum it would have received had no such deductions been made,
(ii) such Loan Party shall make such deductions and (iii) such Loan Party shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable Requirements of Law. 
 (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 
 (c) Whenever any Non-Excluded Taxes or Other Taxes are payable by any Loan Party, as promptly as possible thereafter the Loan Party shall send to the
Administrative Agent for the account of the relevant Arranger, Agent or Lender, as the case may be, a certified copy of an original official receipt received by the Loan Party showing payment thereof. If the Loan Party fails to pay any Non-Excluded
Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to the Administrative Agent the required receipts or other required documentary evidence, the Loan Party shall indemnify the Arranger, the Agents and the Lenders for
any incremental taxes, interest or penalties that may become payable by the Arranger, any Agent or any Lender as a result of any such failure. The agreements in this Section shall survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder. 
  

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 (d) Each Loan Party hereby agrees to hold each Agent and each Lender harmless from and against
Non-Excluded Taxes and Other Taxes (including, without limitation, Non-Excluded Taxes and Other Taxes imposed on any amounts payable under this Section 2.22) paid by such Person, whether or not such Non-Excluded Taxes or Other Taxes were
correctly or legally asserted. Such indemnification shall be paid by a Loan Party within 10 days from the date on which any such Person makes written demand therefor, specifying in reasonable detail the nature and amount of such Taxes or Other
Taxes. 
 (e) Each Lender and Transferee agrees to file any certificate or document or to furnish to a Loan Party any information as
reasonably requested by a Loan Party that may be necessary to establish any available exemption from, or reduction in the amount of, any Non-Excluded Taxes or Other Taxes; provided, however, that nothing in this Section 2.22(e)
shall require a Lender or Transferee to disclose any confidential information (including, without limitation, its tax returns or other reports, disclosures or calculations) and would not, in the sole determination of such Lender or Transferee, be
otherwise disadvantageous to such Lender or Transferee. Notwithstanding the foregoing, a Lender or Transferee shall not be required to deliver any certificate or document pursuant to this Section 2.22(e) that such Non-U.S. Lender is not legally
able to deliver. 
 (f) If the Administrative Agent or any Lender becomes aware that it has received a refund of, or credit with respect to,
any Non-Excluded Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section 2.22 and the Administrative Agent or such Lender realizes such
refund or credit with respect to the taxable year that the additional amount is paid by the Borrower, it shall pay over such net benefit, after tax, of such refund or credit to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 2.22 with respect to the Non-Excluded Taxes or Other Taxes giving rise to such refund or credit), net of all out-of-pocket expenses of the Administrative Agent or such Lender and
without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund or credit) as determined in the Administrative Agent’s or such Lender’s sole discretion; provided, that the Borrower,
within 10 days after receipt of the request of the Administrative Agent or such Lender, shall repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund or credit to such Governmental Authority. This paragraph shall not be construed to require the Administrative Agent or any
Lender to make available its tax returns (or any other report, disclosure, calculation or information which it deems confidential) to the Borrower or any other Person. 
 (g) The obligations of the Loan Parties under this Section 2.22 shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder. 
  

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 2.23 Indemnity. The Borrower agrees to indemnify each Lender for, and to hold each of them
harmless from, any loss or reasonable out of pocket expense that such Lender may sustain or incur as a consequence of (a) default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar Loans after the Borrower
has given a notice requesting the same in accordance with the provisions of this Agreement (other than, in the case of a delivery of a Borrowing Notice or Eurodollar Notice by the Borrower, as a result of (i) a default by the Administrative
Agent or such Lender, (ii) the unavailability of Eurodollar Loans as a result of the application of Section 2.18 or Section 2.24 or (iii) the unavailability of Eurodollar Loans because the Administrative Agent or Majority
Facility Lenders in respect of the applicable Facility have determined not to permit additional Eurodollar Loans because an Event of Default shall have occurred and be continuing), (b) default by the Borrower in making any prepayment after the
Borrower has given a notice thereof in accordance with the provisions of this Agreement, or (c) the making of a prepayment or conversion of Eurodollar Loans on a day that is not the last day of an Interest Period with respect thereto including
as a result of an Event of Default. Such indemnification may include an amount equal to the excess, if any, of (i) the amount of interest that would have accrued on the amount so prepaid, or not so borrowed, converted or continued, for the
period from the date of such prepayment or of such failure to borrow, convert or continue to the last day of such Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date
of such failure) in each case at the applicable rate of interest for such Loans provided for herein (excluding, however, the Applicable Margin included therein, if any) over (ii) the amount of interest (as reasonably determined by such
Lender) that would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank Eurodollar market. A certificate setting forth in reasonable detail any amounts payable
pursuant to this Section submitted to the Borrower by any Lender shall be conclusive in the absence of manifest error. This covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable
hereunder. 
 2.24 Illegality. Notwithstanding any other provision herein, if the adoption of or any change in any Requirement of Law
or in the interpretation or application thereof shall make it unlawful for any Lender to make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall forthwith be canceled and (b) such Lender’s Loans then outstanding as Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans on the
respective last days of the then current Interest Periods with respect to such Loans or within such earlier period as required by law. If any such conversion of a Eurodollar Loan occurs on a day which is not the last day of the then current Interest
Period with respect thereto, the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Section 2.23. 
 2.25 Change of Lending Office. Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 2.21, 2.22 or 2.24 (except with respect to Canadian withholding taxes applicable to such Lender (or
any of its Transferees) as of the date of this Agreement) with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate another lending office for
any Loans affected by such event with the object of avoiding the consequences of such event; provided, that such designation is made on terms that, in the sole judgment of such 

  

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Lender, cause such Lender and its lending office(s) to suffer no economic, legal or regulatory disadvantage, and provided, further, that
nothing in this Section shall affect or postpone any of the obligations of any Borrower or the rights of any Lender pursuant to Section 2.21, 2.22 or 2.24. 
 SECTION 3    LETTERS OF CREDIT 
 3.1 L/C Commitment. Subject to the terms
and conditions of this Agreement, the Issuing Lender agrees to issue letters of credit for the account of the Borrower (each, an “L/C”) or to purchase participations or execute indemnities or reimbursement obligations (each such
undertaking, an “L/C Undertaking”) with respect to letters of credit issued by an Underlying Issuer (as of the Interim Facility Effective Date, the prospective Underlying Issuer is to be The Toronto-Dominion Bank) for the account of
the Borrower. Each request for the issuance of a Letter of Credit, or the amendment, renewal, or extension of any outstanding Letter of Credit, shall be made in writing by a Responsible Officer of the Borrower and delivered to the Issuing Lender and
the Administrative Agent via hand delivery, telefacsimile, or other electronic method of transmission reasonably in advance of the requested date of issuance, amendment, renewal, or extension. Each such request shall be in form and substance
satisfactory to the Issuing Lender in its Permitted Discretion and shall specify (i) the amount of such Letter of Credit, (ii) the currency in which amounts under such Letter of Credit shall be payable, (iii) the date of issuance,
amendment, renewal, or extension of such Letter of Credit, (iv) the expiration date of such Letter of Credit, (v) the name and address of the beneficiary thereof (or the beneficiary of the Underlying Letter of Credit, as applicable), and
(vi) such other information (including, in the case of an amendment, renewal, or extension, identification of the outstanding Letter of Credit to be so amended, renewed, or extended) as shall be necessary to prepare, amend, renew, or extend
such Letter of Credit. If requested by the Issuing Lender, the Borrower also shall be an applicant under the application with respect to any Underlying Letter of Credit that is to be the subject of an L/C Undertaking. It is hereby acknowledged and
agreed that each Pre-Petition Letter of Credit (including any extension thereof) which is to remain outstanding on the Interim Facility Effective Date shall constitute a “Letter of Credit” for all purposes under this Agreement and the
other Loan Documents. The Issuing Lender shall have no obligation to issue a Letter of Credit if any of the following would result after giving effect to the issuance of such requested Letter of Credit: 
 (i) the Letter of Credit Usage would exceed the lesser of (x) the then current Borrowing Base less the outstanding principal amount of
Revolving Credit Loans (including any Reinstated Pre-Petition Revolving Loan Obligations) and Swing Line Loans and (y) for any week, the Letter of Credit Usage projected to be outstanding at such time as set forth in the Initial Budget for such
period. 
 (ii) the Dollar Equivalent of the Letter of Credit Usage would exceed $17,062,301.57, plus any increase in such amount resulting
from any currency fluctuation); or 
 (iii) the Letter of Credit Usage would exceed the Total Revolving Credit Commitments less the
outstanding principal amount of Revolving Credit Loans less the outstanding principal amount of Swing Line Loans. 
  

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 Each Letter of Credit (and corresponding Underlying Letter of Credit) shall be in form and substance
acceptable to the Issuing Lender (in the exercise of its Permitted Discretion), including the requirement that the amounts payable thereunder must be payable in Dollars or Canadian Dollars. If the Issuing Lender is obligated to advance funds under a
Letter of Credit, the Borrower shall immediately reimburse such L/C Disbursement to the Issuing Lender by paying to the Administrative Agent an amount equal to such L/C Disbursement not later than 11:00 a.m., California time, on the date that such
L/C Disbursement is made, if the Borrower shall have received written or telephonic notice of such L/C Disbursement prior to 10:00 a.m., California time, on such date, or, if such notice has not been received by the Borrower prior to such time on
such date, then not later than 11:00 a.m., California time, on the Business Day that the Borrower receives such notice, if such notice is received prior to 10:00 a.m., California time, on the date of receipt, and, in the absence of such
reimbursement, the L/C Disbursement immediately and automatically shall be deemed to be a Revolving Credit Loan hereunder and, initially, shall bear interest at the rate then applicable to Revolving Credit Loans that are Base Rate Loans. To the
extent an L/C Disbursement is deemed to be a Revolving Credit Loan hereunder, the Borrower’s obligation to reimburse such L/C Disbursement shall be discharged and replaced by the resulting Revolving Credit Loan. Promptly following receipt by
the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Issuing Lender or, to the extent that Revolving Credit Lenders have made payments pursuant to
Section 3.2 to reimburse the Issuing Lender, then to such Revolving Credit Lenders and the Issuing Lender as their interests may appear. 
 3.2 L/C Disbursement. Promptly following receipt of a notice of L/C Disbursement pursuant to Section 3.1, each Lender with a Revolving Credit Commitment agrees to fund its Pro Rata Share of any Revolving Credit Loan deemed made
pursuant to the foregoing subsection on the same terms and conditions as if the Borrower had requested such Loan and the Administrative Agent shall promptly pay to the Issuing Lender the amounts so received by it from the Revolving Credit Lenders.
By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Lender or the Lenders with Revolving Credit Commitments, the Issuing Lender shall
be deemed to have granted to each Lender with a Revolving Credit Commitment, and each Lender with a Revolving Credit Commitment shall be deemed to have purchased, a participation in each Letter of Credit, in an amount equal to its Pro Rata Share of
the Risk Participation Liability of such Letter of Credit, and each such Lender agrees to pay to the Administrative Agent, for the account of the Issuing Lender, such Lender’s Pro Rata Share of any payments made by the Issuing Lender under such
Letter of Credit. In consideration and in furtherance of the foregoing, each Lender with a Revolving Credit Commitment hereby absolutely and unconditionally agrees to pay the Administrative Agent, for the account of the Issuing Lender, such
Lender’s Pro Rata Share of each L/C Disbursement made by the Issuing Lender and not reimbursed by the Borrower on the date due as provided in Section 3.1, or of any reimbursement payment required to be refunded to the Borrower for any
reason. Each Lender with a Revolving Credit Commitment acknowledges and agrees that its obligation to deliver to the Administrative Agent, for the account of the Issuing Lender, an amount equal to its respective Pro Rata Share of each L/C
Disbursement made by the Issuing Lender pursuant to this Section 3.2 shall be absolute and unconditional and such remittance shall be made notwithstanding the occurrence or continuation of an Event of Default or Default or the failure to
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Section 5.2 or Section 5.3. If any such Lender with a Revolving Credit Commitment fails to make available to the Administrative Agent the amount of
such Lender’s Pro Rata Share of each L/C Disbursement made by the Issuing Lender in respect of such Letter of Credit as provided in this Section, such Lender shall pay, and the Administrative Agent (for the account of the Issuing Lender) shall
be entitled to recover such amount on demand from such Lender together with interest thereon as provided in Section 2.16(c) until paid in full. 
 3.3 Direction. The Borrower hereby authorizes and directs any Underlying Issuer to deliver to the Issuing Lender all instruments, documents, and other writings and property received by such Underlying Issuer
pursuant to such Underlying Letter of Credit and to accept and rely upon the Issuing Lender’s instructions with respect to all matters arising in connection with such Underlying Letter of Credit and the related application. 
 3.4 Change in Law. Without duplication of any payments made under or pursuant to Section 2.21, if by reason of (a) any change after the
Interim Facility Effective Date in any applicable law, treaty, rule, or regulation or any change in the interpretation or application thereof by any Governmental Authority, or (b) compliance by the Underlying Issuer or the Lenders with any
direction, request, or requirement (irrespective of whether having the force of law) of any Governmental Authority or monetary authority, including, Regulation D of the Federal Reserve Board as from time to time in effect (and any successor
thereto): 
 (i) any reserve, deposit, or similar requirement is or shall be imposed or modified in respect of any Letter of
Credit issued hereunder, or 
 (ii) there shall be imposed on the Underlying Issuer or the Lenders or Agents any other
condition regarding any Underlying Letter of Credit or any Letter of Credit issued pursuant hereto, 
 and the result of the foregoing is to increase,
directly or indirectly, the cost to the Revolving Credit Lenders of issuing, making, guaranteeing, or maintaining any Letter of Credit or to reduce the amount received in respect thereof by the Lenders or the Administrative Agent, then, and in any
such case, the Administrative Agent may, at any time within a reasonable period after the additional cost is incurred or the amount received is reduced, notify the Borrower, and the Borrower shall pay on demand such amounts as the Administrative
Agent may specify to be necessary to compensate the Revolving Credit Lenders and the Administrative Agent for such additional cost or reduced receipt, together with interest on such amount from the date of such demand until payment in full thereof
at the rate then applicable to Base Rate Loans hereunder. The determination by the Administrative Agent of any amount due pursuant to this Section, as set forth in a certificate setting forth the calculation thereof in reasonable detail, shall, in
the absence of manifest or demonstrable error, be final and conclusive and binding on all of the parties hereto. Notwithstanding anything to the contrary in this Section 3.4, the Borrower shall not be required to compensate a Lender pursuant to
this Section 3.4 for any amounts incurred more than 180 days prior to the date that such Lender notifies the Borrower of such Lender’s intention to claim compensation therefor; provided, that, if the circumstances giving rise to
such claim have a retroactive effect, then such 180-day period shall be extended to include the period of such retroactive effect. 
  

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 3.5 Charges; Fees. Any and all issuance charges, commissions, fees, and costs incurred by the
Issuing Lender relating to Underlying Letters of Credit shall be reimbursable by the Borrower to the Administrative Agent for the account of the Issuing Lender; it being acknowledged and agreed by the Borrower that, as of the Interim Facility
Effective Date, the issuance charge imposed by the prospective Underlying Issuer is .825% per annum times the undrawn amount of each Underlying Letter of Credit, that such issuance charge may be changed from time to time, and that the
Underlying Issuer also imposes a schedule of charges for amendments, extensions, drawings, and renewals. 
 3.6 Cash Collateral. Any
cash collateral provided with respect to any Letter of Credit under this Agreement or any other Loan Document shall be provided (a) with respect to any Letter of Credit Usage denominated in Canadian Dollars, in Canadian Dollars, and
(b) with respect to any Letter of Credit Usage denominated in Dollars, in Dollars. 
 3.7 Indemnity. The Borrower hereby agrees
to indemnify, save, defend, and hold the Agents and the Lenders harmless from any loss, cost, expense, or liability, and reasonable attorneys fees incurred by any Agent or any Lender arising out of or in connection with any Letter of Credit;
provided, however, that the Borrower shall not be obligated hereunder to indemnify for any loss, cost, expense, or liability to the extent that it is caused by the gross negligence or willful misconduct of the Issuing Lender, any other
Lender or any Agent. The Borrower agrees to be bound by the Underlying Issuer’s regulations and interpretations of any Underlying Letter of Credit or by the Issuing Lender’s interpretations of any L/C issued by the Issuing Lender to or for
the Borrower’s account, even though this interpretation may be different from the Borrower’s own, and the Borrower understands and agrees that the Agents and the Lenders shall not be liable for any error, negligence, or mistake, whether of
omission or commission, in following the Borrower’s instructions or those contained in the Letter of Credit or any modifications, amendments, or supplements thereto except for gross negligence or willful misconduct or failure to pay a Letter of
Credit when required to be paid. The Borrower understands that the L/C Undertakings may require the Issuing Lender to indemnify the Underlying Issuer for certain costs or liabilities arising out of claims by the Borrower against such Underlying
Issuer. The Borrower hereby agrees to indemnify, save, defend, and hold the Agents and the Lenders harmless with respect to any loss, cost, expense (including reasonable attorneys fees), or liability incurred by any Agent or any Lender under any L/C
Undertaking as a result of any such Agent’s or Lender’s indemnification of any Underlying Issuer; provided, however, that the Borrower shall not be obligated hereunder to indemnify for any loss, cost, expense, or liability to
the extent that it is caused by the gross negligence or willful misconduct of the Issuing Lender, any other Lender or any Agent or the failure to pay a Letter of Credit when required to be paid. The Borrower hereby acknowledges and agrees that
neither the Agents and the Lenders nor the Issuing Lender shall be responsible for delays, errors, or omissions resulting from the malfunction of equipment in connection with any Letter of Credit except for gross negligence or willful misconduct or
failure to pay a Letter of Credit when required to be paid. 
 3.8 Pre-Petition Letters of Credit. Schedule E-2 hereto contains a list
of all letters of credit outstanding on the Chapter 11 Filing Date pursuant to the Pre-Petition Credit Agreement. For the period from and after the Interim Facility Effective Date, each such letter of credit set forth on Schedule E-2, including any
extension or renewal thereof that remains 

  

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outstanding on the Interim Facility Effective Date (each, as amended from time to time in accordance with the terms thereof and hereof, a
“Pre-Petition Letter of Credit”) shall constitute a “Letter of Credit” issued for the account of the Borrower, for all purposes of this Agreement, including, without limitation, calculations of Availability, the Borrowing
Base, Letter of Credit fees and Letter of Credit Usage. 
 SECTION 4    REPRESENTATIONS AND WARRANTIES 
 To induce the Arranger, the Agents and the Lenders to enter into this Agreement and to make the Loans and issue or participate in the Letters of Credit,
the Parent and the Borrower hereby jointly and severally represent and warrant to the Arranger, each Agent and each Lender that: 
 4.1
Financial Condition. 
 (a) Reserved. 
 (b) The audited consolidated balance sheet of the Parent and its Subsidiaries as at December 31, 2006 and the related consolidated statements of income and of cash flows for the fiscal year ended on such date,
present fairly in all material respects in accordance with GAAP the consolidated financial condition of the Parent and its Subsidiaries as at such date, and the consolidated results of its operations and its consolidated cash flows for the
respective fiscal years then ended. The unaudited consolidated balance sheet of the Parent and its Subsidiaries as at August 31, 2007, and the related unaudited consolidated statements of income and cash flows for the three-month period ended
on such date, present fairly in all material respects in accordance with GAAP the consolidated financial condition of the Parent and its consolidated Subsidiaries as at such date, and the consolidated results of its operations and its consolidated
cash flows for the three-month period then ended (subject to normal period-end adjustments). As of the Interim Facility Effective Date, the Parent and its Subsidiaries do not have any Guarantee Obligations, contingent liabilities and liabilities for
taxes, or any long-term leases or unusual forward or long-term commitments, including, without limitation, any interest rate or foreign currency swap or exchange transaction or other obligation in respect of derivatives, that are not reflected in
the most recent financial statements referred to in this paragraph (other than contingent liabilities arising in the ordinary course of business or as disclosed on Schedule 4.1(b)). Except as set forth on Schedule 4.1(b), during the period
from December 31, 2006 to and including the date hereof there has been no Disposition by the Parent or its consolidated Subsidiaries of any part of its business or Property with an aggregate Fair Market Value in excess of $2,000,000.

 (c) The Initial Budget, when delivered, shall be believed by the Borrower at the time furnished to be reasonable, shall have been prepared
on a reasonable basis and in good faith by the Parent and the Borrower, and shall have been based on assumptions believed by the Parent and the Borrower to be reasonable at the time made and is consistent with all information then reasonably
available to the Parent and the Borrower, and the Parent and the Borrower shall not be aware of any facts or information that would lead it to believe that such Initial Budget, is incorrect or misleading in any material respect. 
  

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 (d) The Loan Parties have no accrued and unpaid liabilities of the type described in
Section 2.5(c)(ii) or 2.5(c)(iii) of this Agreement, including Other Statutory Liabilities, other than those that (i) are provided for in the Initial Budget (subject to deviations that would not constitute Material Adverse Deviations),
(ii) have been disclosed in writing to the Agents (including pursuant to Schedule 2.5(A)) or (iii) do not materially increase the then current or accrued liabilities that have been previously disclosed to the Agents. 
 4.2 No Change. Other than as disclosed in the Parent’s public filings that have been filed prior to the Interim Facility Effective Date,
since December 31, 2006 there has been no development or event that has had or would reasonably be expected to have a Material Adverse Effect. 
 4.3 Existence; Compliance with Law. Each of the Parent, the Borrower and their respective Subsidiaries (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization,
(b) subject to the entry and the terms of the Bankruptcy Court Orders, has the power and authority, and the legal right, to own and operate its Property, to lease the Property it operates as lessee and to conduct the business in which it is
currently engaged, (c) is duly qualified as a foreign corporation and in good standing under the laws of each jurisdiction where its ownership, lease or operation of Property or the conduct of its business requires such qualification except to
the extent that the failure to be so qualified could not, in the aggregate, reasonably be expected to have a Material Adverse Effect and (d) is in compliance with all Requirements of Law except to the extent that the failure to comply therewith
would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 4.4 Power; Authorization;
Enforceable Obligations. Subject to the entry and the terms of the Bankruptcy Court Orders, each Loan Party has the power and authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a party and, in the case
of the Borrower, to borrow hereunder. Each Loan Party has taken all necessary action to authorize the execution, delivery and performance of the Loan Documents to which it is a party and, in the case of the Borrower, subject to the entry and the
terms of the Bankruptcy Court Orders to authorize the borrowings on the terms and conditions of this Agreement. Subject to the entry and the terms of the Bankruptcy Court Orders, no consent or authorization of, filing with, notice to or other act by
or in respect of, any Governmental Authority or any other Person is required in connection with the borrowings hereunder or the execution, delivery, performance, validity or enforceability of this Agreement or any of the other Loan Documents except
the filings referred to in Section 4.20 with respect to this Canadian Collateral. Each Loan Document has been duly executed and delivered on behalf of each Loan Party that is a party thereto. Subject to the entry and the terms of the Bankruptcy
Court Orders, this Agreement constitutes, and each other Loan Document upon execution will constitute, a legal, valid and binding obligation of each Loan Party that is a party thereto, enforceable against each such Loan Party in accordance with the
terms hereof or thereof. 
 4.5 No Legal Bar. The execution, delivery and performance of this Agreement and the other Loan Documents,
the issuance of Letters of Credit, the borrowings hereunder and the use of the proceeds thereof will not violate any Requirement of Law or any material Contractual Obligation of the Parent or any of its Subsidiaries and will not result in, or

  

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require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual
Obligation (other than the Liens created by the Security Documents, the Interim Bankruptcy Court Orders and/or the Final Bankruptcy Court Orders). No Requirement of Law or Contractual Obligation applicable to the Parent or any of its Subsidiaries
would reasonably be expected to have a Material Adverse Effect. 
 4.6 No Material Litigation. Except for any prepetition litigation
that is and remains stayed as to enforceability by the provisions of any applicable Bankruptcy Code, the Interim Bankruptcy Court Orders and/or the Final Bankruptcy Court Orders, on the Interim Facility Effective Date there is no litigation,
investigation or proceeding of or before any arbitrator or Governmental Authority pending or, to the knowledge of any Responsible Officer of the Parent or the Borrower, threatened by or against the Parent or any of its Subsidiaries, or against any
of their respective properties or revenues, (i) with respect to any of the Loan Documents or any of the transactions contemplated hereby or (ii) involving a claim for damages in excess of $100,000. 
 4.7 No Default. None of the Parent or any of its Subsidiaries is in default under or with respect to any of its Contractual Obligations in any
respect that would reasonably be expected to have a Material Adverse Effect other than defaults, the enforcement of which will be stayed by virtue of the filing of the Chapter 11 Cases and the CCAA Proceedings. No Default or Event of Default has
occurred and is continuing. 
 4.8 Ownership of Property; Liens. Each of the Parent and each of its Subsidiaries is the sole owner of,
legally and beneficially, and has good marketable and insurable title in fee simple to, or a valid leasehold interest in, all real property necessary for the operation of its business, and good title to, or a valid leasehold interest in, all other
Property necessary for the operation of its business, and none of its real property or other Property is subject to any Lien except for Permitted Liens. None of the Pledged Stock is subject to any Lien except for Permitted Liens. 
 4.9 Intellectual Property. 
 (a) The
Parent and each of its Subsidiaries owns, or holds valid rights to use, all Intellectual Property necessary for the conduct of its business as currently conducted and as currently contemplated to be conducted (the “Material Intellectual
Property”). All such rights are free and clear of all Liens (other than Permitted Liens) and are fully assignable by the Parent and each of its Subsidiaries to any Person without payment, consent of any Person or other condition or
restriction. No Material Intellectual Property has been abandoned, cancelled or adjudicated invalid or is subject to any decree restricting its use. No material claim, suit, action, reissue, interference, arbitration, mediation, opposition,
cancellation or other proceeding has been asserted, decided or is pending or, to the knowledge of any Responsible Officer of the Parent or the Borrower, is threatened, by any Person challenging or questioning the use of any Material Intellectual
Property or the validity or effectiveness of any Material Intellectual Property, nor does any Responsible Officer of the Parent or the Borrower know of any valid basis for any such claim except for claims that would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. The use of Intellectual Property necessary for the conduct of its business as currently conducted and as currently contemplated to be conducted by the Parent and its Subsidiaries
does not infringe on the rights of any Person in any material respect. 
  

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 (b) The Parent and each of its Subsidiaries, as the case may be, owns or has rights to access and use all
IT Systems used to process, store, maintain and operate data, information and functions used in connection with the business or otherwise necessary for the conduct of the business, including systems to operate payroll, accounting,
billing/receivables, payables, inventory, asset tracking, customer service and human resources functions. The IT Systems are adequate in all material respects for their intended use and for the operation of the business as currently operated and as
currently contemplated to be operated by the Parent and each of its Subsidiaries, and are in good working condition (normal wear and tear excepted). There has not been any malfunction with respect to any of the IT Systems since December 31,
2006 that has not been remedied or replaced in all material respects. 
 4.10 Taxes. Each Loan Party and each of its Subsidiaries has
filed or caused to be filed with the appropriate Governmental Authority all tax returns, statements, forms and reports for taxes (“Returns”) required to be filed and has paid all taxes shown to be due and payable on said Returns and
all other taxes, fees, assessments or other charges imposed on the income, operations or Property of each Loan Party or its Subsidiaries by any Governmental Authority (other than (a) any taxes, fees, assessments or other charges the amount or
validity of which are currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the Parent or its Subsidiaries, as the case may be,
(b) Returns required to be filed with respect to the payment of taxes and taxes, in each case, in an aggregate amount not in excess of $1,000,000 and (c) taxes set forth on Schedule 4.10); and no tax Lien (other than any tax Lien that is a
Permitted Lien) has been filed, and, to the knowledge of a Responsible Officer of a Loan Party or its Subsidiaries, no material claim is being asserted, with respect to any such tax, fee or other charge. No Loan Party and no Subsidiary thereof
(i) intends to treat the Loans or any other transaction contemplated hereby as being a “reportable transaction” (within the meaning of Treasury Regulation 1.6011-4) or (ii) is aware of any facts or events that would result in
such treatment. 
 4.11 Federal Regulations. No part of the proceeds of any Loans will be used for “purchasing” or
“carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U as now and from time to time hereafter in effect or for any purpose that violates the provisions of the Regulations of
the Board. If requested by any Lender, the Administrative Agent, the Parent or the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR
Form U 1 referred to in Regulation U. 
 4.12 Labor Matters. There are no strikes, stoppages or slowdowns or other labor disputes
against the Parent or any of its Subsidiaries pending or, to the knowledge of a Responsible Officer of the Parent or the Borrower, threatened that (individually or in the aggregate) would reasonably be expected to have a Material Adverse Effect.
Hours worked by and payment made to employees of the Parent and its Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable Requirement of Law dealing with such matters that (individually or in the aggregate)
would reasonably be expected to have a Material Adverse Effect. All payments due from the Parent or any of its Subsidiaries on account of 

  

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employee health and welfare insurance that (individually or in the aggregate) would reasonably be expected to have a Material Adverse Effect if not paid have
been paid or accrued as a liability on the books of the Parent or the relevant Subsidiary. 
 4.13 ERISA. (a) Neither a
Reportable Event nor an “accumulated funding deficiency” (within the meaning of Section 412 of the Code or Section 302 of ERISA) has occurred (whether or not waived) during the five year period prior to the date on which this
representation is made or deemed made with respect to any Single Employer Plan that would reasonably be expected to have a Material Adverse Effect, and each Single Employer Plan has been administered in compliance with its terms and the applicable
provisions of ERISA and the Code, except where the failure to so comply would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No termination of a Single Employer Plan has occurred that would
reasonably be expected to result in a liability to the Borrower or any Commonly Controlled Entity in excess of $1,000,000, and no Lien in favor of the PBGC or a Single Employer Plan has arisen on the assets of the Borrower or any Commonly Controlled
Entity during the five-year period prior to the date on which this representation is made or deemed made. The present value of all accrued benefits under each Single Employer Plan (based on those assumptions used to fund such Single Employer Plan)
did not, as determined as of the date of the last annual actuarial valuation prior to the date on which this representation is made or deemed made, exceed the value of the assets of such Single Employer Plan by an amount that would reasonably be
expected to have a Material Adverse Effect. Neither the Borrower nor any Commonly Controlled Entity has had a complete or partial withdrawal from any Multiemployer Plan that has resulted or would reasonably be expected to result in a Material
Adverse Effect. No Multiemployer Plan is in Reorganization or Insolvent which Reorganization or Insolvency could result in liability to the Borrower or any Commonly Controlled Entity in excess of $1,000,000 in the aggregate. Neither the Borrower nor
any Commonly Controlled Entity nor any fiduciary of any Plan has engaged in a nonexempt prohibited transaction described in Sections 406 of ERISA or Section 4975 of the Code with respect to any Single Employer Plan that could result in a
liability to the Borrower or any Commonly Controlled Entity in excess of $1,000,000. There are no pending or, to the knowledge of any Responsible Officer of the Parent or the Borrower, threatened claims, actions, proceedings or lawsuits (other than
claims for benefits in the normal course) asserted or instituted against (i) any Single Employer Plan or its assets, (ii) any fiduciary with respect to any Single Employer Plan, or (iii) the Borrower or any Commonly Controlled Entity
with respect to any Single Employer Plan, except any claim, action, proceeding or lawsuit described in clause (i), (ii) or (iii) that would not reasonably be expected to result in an aggregate liability for all such claims, actions,
proceedings or lawsuits in excess of $1,000,000. 
 (b) Schedule 4.13 sets forth (x) the current funding status of the Plans on an
ongoing and termination basis, including the projected accumulated benefit obligations as defined in FAS No. 87 and the market value of assets available for such benefits, and (y) post-retirement medical and life insurance benefit
liabilities for current and former U.S. employees of the Borrower. 
 4.14 Canadian Benefit and Pension Plans. To the knowledge of any
Responsible Officer of the Parent or the Borrower, the Canadian Pension Plans are duly registered with the applicable Governmental Authority under the Income Tax Act (Canada) and any other Requirement of Law which require registration and no event
has occurred which is 

  

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reasonably likely to cause the loss of such registered status. As of the date hereof, all material, if any, obligations of each Loan Party (including
fiduciary, funding, investment and administration obligations) required to be performed pursuant to a Requirement of Law in connection with the Canadian Pension Plans and the terms thereof and the funding agreements therefor have been performed in a
timely fashion. There have been no improper withdrawals or applications of the assets of the Canadian Pension Plans listed on Schedule 4.14 or the Canadian Benefit Plans maintained and sponsored by the Loan Parties. Except as would not reasonably be
expected to result in a Material Adverse Effect or as disclosed on Schedule 4.14 (i) there are no outstanding disputes concerning the assets held under the funding agreements for the Canadian Pension Plans or the Canadian Benefit Plans; and
(ii) each Canadian Pension Plan maintained and sponsored by the Loan Parties is fully funded both on an ongoing basis and on a solvency basis (using actuarial methods and assumptions which are consistent with the valuations last filed with the
applicable Governmental Authorities and which are consistent with generally accepted actuarial principles). Schedule 4.14 hereto sets forth as of the dates indicated on Schedule 4.14 (x) the funding status of the Canadian Pension Plans
maintained and sponsored by the Loan Parties that are defined benefit plans and that are not fully funded on a going concern or solvency basis based on generally accepted actuarial principles and (y) the payment schedule, where a payment
schedule is required at law to reduce the unfunded liabilities. No promises of benefit improvements under the Canadian Pension Plans or the Canadian Benefit Plans have been made except where such improvement would not have a Material Adverse Effect.
All employer contributions and premiums required to be made or paid by each Loan Party, if any, to the Canadian Pension Plans or the Canadian Benefit Plans have been made or paid in accordance with the terms of such plans and all Requirements of
Law. All employee contributions to the Canadian Pension Plans or the Canadian Benefit Plans by way of authorized payroll deduction or otherwise have been properly withheld or collected and fully paid into such plans by each Loan Party. All material
reports and disclosures relating to the Canadian Pension Plans maintained and sponsored by the Loan Parties required by such plans and any Requirement of Law to be filed or distributed have been filed or distributed in a timely manner. Each Loan
Party has withheld all employee withholdings and has made all employer contributions to be withheld and made by it pursuant to applicable law on account of the Canada Pension Plan, employment insurance and employee income taxes. No Pension Plan
Termination Event has occurred. 
 4.15 Investment Company Act; Other Regulations. No Loan Party is an “investment company”,
or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended. No Loan Party is subject to regulation under any Requirement of Law (other than Regulation X of the
Board) which limits its ability to incur Indebtedness. 
 4.16 Subsidiaries. (a) The Subsidiaries listed on Schedule 4.16
constitute all the Subsidiaries of the Parent as of the Interim Facility Effective Date. Schedule 4.16 sets forth as of the Interim Facility Effective Date, the exact legal name (as reflected on the certificate of incorporation (or formation)
and jurisdiction of incorporation (or formation)) of each Subsidiary of the Parent and, as to each such Subsidiary, the percentage and number of each class of Capital Stock owned by each Loan Party and its Subsidiaries. 
 (b) There are no outstanding subscriptions, options, warrants, calls, rights or other agreements or commitments (other than stock options granted to
employees or directors and directors’ qualifying shares) of any nature relating to any Subsidiary, except as disclosed on Schedule 4.16. 
  

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 4.17 Use of Proceeds. (a) Subject to the Borrowing Base and the Initial Budget (after giving
effect to any Budget Carryover Amount (and as calculated and applied as set forth in the definition of such term in Section 1.1)), the proceeds of the Revolving Credit Loans (including any Swing Line Loans) shall be used in accordance with the
expenditure line items in the Initial Budget to (i) on or before the Final Facility Effective Date, repay all Pre-Petition Revolving Loan Obligations in full; (ii) pay all accrued and unpaid interest and letter of credit fees in respect of
the Revolving Credit Facility; and (iii) to fund working capital needs and general corporate purposes of the Borrower and the Guarantors (and such other purposes as are consistent with the Initial Budget) (including, without limitation,
payments with respect to the Carve-Out to the extent consistent with Initial Budget (and not otherwise prohibited under this Agreement or under the Bankruptcy Court Orders), in each case, subject to the priorities set forth in the definition of
“Agreed Administrative Expense Priorities” herein). The Letters of Credit will be used for general corporate and working capital purposes and all Pre-Petition Letters of Credit shall be deemed reissued under this Agreement. Proceeds of
Revolving Credit Loans shall not be used to repay principal or interest in respect of the Term Loan B or the Pre-Petition Term Loan Facilities or fees and expenses of the Collateral Agent and/or the Term Loan Lenders. 
 (b) The proceeds of the Term Loans B shall be used (i) in accordance with the expenditure line items in the Initial Budget (after giving effect to
any Budget Carryover Amount (and as calculated and applied as set forth in the definition of such term in Section 1.1)), to fund working capital needs, pay all accrued and unpaid interest in respect of the Term Loan Facility, and general
corporate purposes of the Borrower and the Guarantors (and such other purposes as are consistent with the Initial Budget) (including, without limitation, payments with respect to the Carve-Out to the extent consistent with Initial Budget (and not
otherwise prohibited under this Agreement or under the Bankruptcy Court Orders), in each case, subject to the priorities set forth in the definition of “Agreed Administrative Expense Priorities” herein) in an aggregate principal amount not
to exceed $13,000,000, and (ii) pay fees and expenses of the Collateral Agent and the Term Loan Lenders in respect of this Agreement and the Pre-Petition Term Loan Facilities. Proceeds of Term Loan B shall not be used to repay principal or
interest in respect of the Revolving Credit Loans or the Pre-Petition Revolving Credit Facility or fees and expenses of the Administrative Agent and/or Revolving Credit Lenders. 
 4.18 Environmental Matters. Other than exceptions to any of the following (i) set forth on Schedule 4.18 or (ii) that would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect: 
 (a) The Parent and its Subsidiaries:
(i) are, and to the knowledge of the executive management of the Parent, within the period of all applicable statutes of limitation have been, in compliance with all applicable Environmental Laws; (ii) hold all Environmental Permits (each
of which is in full force and effect) required to be held by Parent and its Subsidiaries for any of their current or planned operation of their business or for any property owned, leased, or otherwise operated by any of them; (iii) are, and to
the knowledge of the executive management of the Parent, within the period of all applicable statutes of limitation 

  

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have been, in substantial compliance with all of their Environmental Permits; (iv) reasonably believe that each of their Environmental Permits will be
timely renewed, without material expense; and (v) do not own or operate any properties that are subject to any Environmental Lien. 
 (b) To the knowledge of the executive management of the Parent and its Subsidiaries, Materials of Environmental Concern generated by the Parent, or any of its Subsidiaries or any predecessor in interest, are not present at, on, under, in,
or about any real property now or formerly owned, leased or operated by the Parent or any of its Subsidiaries, or at any other location (including, without limitation, any location to which Materials of Environmental Concern have been sent for
re-use in recycling or for treatment, storage, or disposal) which is or would reasonably be expected to (i) give rise to liability of the Parent or any of its Subsidiaries under any applicable Environmental Law, or (ii) interfere with the
Parent’s or any of its Subsidiaries’ continued operations, or (iii) impair the fair saleable value of any real property owned or leased by the Parent or any of its Subsidiaries). 
 (c) There are no Environmental Actions asserted against the Parent or any of its Subsidiaries, or to the knowledge of the executive management of the
Parent or any of its Subsidiaries, any predecessor in interest, nor does the executive management of the Parent or any of its Subsidiaries have knowledge of any Environmental Actions that are pending or threatened against the Parent or any of its
Subsidiaries. 
 (d) Neither the Parent nor any of its Subsidiaries has received any written request for information, or been notified that
it is a potentially responsible party under or relating to the United States federal Comprehensive Environmental Response, Compensation, and Liability Act or any similar Environmental Law, or with respect to any Releases or for the generation,
treatment, storage and disposal of any Materials of Environmental Concern. 
 (e) Neither the Parent nor any of its Subsidiaries has entered
into or agreed to any consent decree, order, or settlement or other agreement, or is subject to any judgment, decree, or order or other agreement, in any judicial, administrative, arbitral, or other forum for dispute resolution, relating to
compliance with or liability under any Environmental Law. 
 (f) To the knowledge of the executive management of the Parent, neither the
Parent nor any of its Subsidiaries has assumed or retained, by contract or operation of law, any liabilities of any kind, fixed or contingent, known or unknown, under any Environmental Law, relating to any Releases or with respect to any Material of
Environmental Concern. 
 (g) There has been no Release (i) at any of the properties owned or operated by the Parent or any of its
Subsidiaries, or to the knowledge of the executive management of the Parent or any of its Subsidiaries, a predecessor in interest which could reasonably be expected to give rise to liability of the Parent or any of its Subsidiaries under applicable
Environmental Law, or (ii) to the knowledge of the executive management of the Parent or any of its Subsidiaries, at any disposal or treatment facility which received Materials of Environmental Concern generated by the Parent, any of its
Subsidiaries or any predecessor in interest, which would reasonably be expected to give rise to liability of the Parent or any of its Subsidiaries under applicable Environmental Law. 
  

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 (h) The Parent and its Subsidiaries have delivered to Lender true and complete copies of all
environmental reports, studies, investigations or material correspondence regarding any environmental liabilities of the Parent and its Subsidiaries or any environmental conditions at any of the properties which are in possession of the Parent, its
Subsidiaries or its agents. 
 4.19 Accuracy of Information, etc. No statement or information (other than projections, pro
forma financial information and “forward-looking” statements) contained in this Agreement, any other Loan Document or any other document, certificate, written statement or formal presentation furnished to the Arranger, the Agents or
the Lenders or any of them, by or on behalf of any Loan Party for use in connection with the transactions contemplated by this Agreement or the other Loan Documents, when taken as a whole, contained as of the date such presentation, statement,
information, document or certificate was so furnished, any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements contained herein or therein not misleading, in any material respect, in
light of the circumstances under which such statements were made. The projections, pro forma financial information and “forward-looking” statements contained in the materials referenced above are based upon good faith
estimates and assumptions believed by management of the Parent and the Borrower to be reasonable at the time made, it being recognized by the Lenders that such financial information as it relates to future events is not to be viewed as fact and that
actual results during the period or periods covered by such financial information may differ from the projected or anticipated results set forth therein by a material amount. As of the Interim Facility Effective Date, there is no fact known to any
Responsible Officer of any Loan Party that would reasonably be expected to have a Material Adverse Effect that has not been expressly disclosed herein, in the other Loan Documents or in other documents, certificates and statements furnished to the
Arranger, the Agents and the Lenders for use in connection with the transactions contemplated hereby and by the other Loan Documents. 
 4.20
Security Documents. (a) Each Canadian General Security Agreement is effective to create in favor of the Collateral Agent, for the benefit of the Secured Parties, an enforceable security interest in the Collateral described therein and
proceeds and products thereof. In the case of the Collateral described in the Canadian General Security Agreements, when financing statements in appropriate form are filed in the offices specified on Schedule 4.20 (which financing statements
have been duly completed and delivered to the Collateral Agent or are in electronic form and have been transmitted to the Collateral Agent) and such other filings and actions as are specified in the Canadian General Security Agreements have been
completed (all of which filings and actions have been duly completed), each Canadian General Security Agreement shall constitute a valid and fully perfected Lien on, and, as applicable, security interest in, all right, title and interest of the Loan
Parties in such Collateral and the proceeds and products thereof, as security for the Obligations, in each case prior and superior in right to any other Person (except Permitted Liens). 
 (b) Each of the Mortgages when delivered by the Loan Parties with respect to the Canadian Collateral will be effective to create in favor of the
Collateral Agent, for the benefit of the Secured Parties, an enforceable Lien on the mortgaged properties described therein and, when filed in the recording office designated by the Borrower, shall constitute a validly registered Lien on all right,
title and interest of the Loan Parties in the mortgaged properties described therein, as security for the Obligations, in each case prior and superior in right to any other Person (other than Persons holding Permitted Liens). 
  

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 4.21 Administrative Priority; Lien Priority. 
 (a) After the Interim Bankruptcy Court Order Entry Date or the Final Bankruptcy Court Order Entry Date, as the case may be, the Obligations of the
Borrower and the Guarantors will constitute allowed super-priority administrative expenses in the Chapter 11 Cases, having priority in payment over all other administrative expenses and unsecured claims against the Borrower and the Guarantors now
existing or hereafter arising, of any kind or nature whatsoever, including, without limitation, all administrative expenses of the kind specified in, or arising or ordered under, Sections 105, 326, 328, 503(b), 506(c), 507(a), 507(b), 546(c) and
1114 of the US Bankruptcy Code, subject, as to priority, only to the Carve-Out having priority of payment over the Obligations to the extent set forth in the definition of the term “Agreed Expense Priorities”. 
 (b) Upon entry of the Interim Bankruptcy Court Orders or the Final Bankruptcy Court Orders, as the case may be, the Lien and security interest of the
Collateral Agent on the Collateral shall be a valid and perfected first priority Lien, subject only to Permitted Priority Liens. 
 (c) On or
after the Interim Bankruptcy Court Order Entry Date and prior to the Final Bankruptcy Court Order Entry Date, the Interim Bankruptcy Court Orders are in full force and effect, are not subject to a pending appeal or motion for leave to appeal or to
challenge the jurisdiction of the Canadian Bankruptcy Court in the CCAA Proceedings or other proceeding to set aside such order and have not been reversed, modified, amended, stayed or vacated absent the written consent of the Agents, the Lenders
and the Borrower, and after the Final Bankruptcy Court Order Entry Date, the Final Bankruptcy Court Orders are in full force and effect, are not subject to appeal and have not been reversed, modified, amended, stayed or vacated absent the written
consent of the Agents, the Lenders and the Borrower. 
 4.22 Appointment of Trustee or Examiner; Liquidation. No order has been
entered in any Chapter 11 Case (i) for the appointment of a Chapter 11 trustee, (ii) for the appointment of an examiner with enlarged powers (beyond those set forth in Sections 1106(a)(3) and (4) of the US Bankruptcy Code) under
Section 1106(b) of the US Bankruptcy Code or (iii) to convert any Chapter 11 Case to a Chapter 7 case or to dismiss any Chapter 11 Case, and no trustee in bankruptcy, receiver, receiver and manager or interim receiver has been appointed
over any assets of any Canadian Loan Party. 
 4.23 Insurance. Each Loan Party keeps its property adequately insured and maintains
(i) insurance to such extent and against such risks, including fire, as is customary with companies in the same or similar businesses, (ii) workmen’s compensation insurance in the amount required by applicable law, (iii) general
liability insurance, which shall include product liability insurance, in the amount customary with companies in the same or similar business against claims for personal injury or death on properties owned, occupied or controlled by it, and
(iv) such other insurance as may be required by law (including, without limitation, against larceny, embezzlement or other criminal misappropriation). Schedule 4.23 sets forth a list of all insurance maintained by each Loan Party on the Interim
Facility Effective Date. 
  

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 4.24 Real Estate. As of the Interim Facility Effective Date, Schedule 4.24 sets forth a true,
complete and correct, in all material respects, list of all real property (i) owned by any Loan Party or its Subsidiaries in fee simple or (ii) leased or otherwise held by any Loan Party or its Subsidiaries. 
 4.25 Location of Bank Accounts. Schedule 4.25 sets forth a complete and accurate list as of the Interim Facility Effective Date of all deposit,
checking and other bank accounts, all securities and other accounts maintained with any broker dealer and all other similar accounts maintained by each Loan Party, together with a description thereof (i.e., the bank or broker dealer at which such
deposit or other account is maintained and the account number and the purpose thereof). 
 4.26 Name; Jurisdiction of Organization;
Organizational ID Number; Chief Place of Business; Chief Executive Office; FEIN. Schedule 4.26 sets forth a complete and accurate list as of the date hereof of (i) the exact legal name of each Loan Party, (ii) the jurisdiction of
organization of each Loan Party, (iii) the organizational identification number of each Loan Party (or indicates that such Loan Party has no organizational identification number), (iv) each place of business of each Loan Party,
(v) the chief executive office of each Loan Party and (vi) if applicable, the federal employer identification number of each Loan Party. 
 4.27 Canadian Loan Parties. On the Interim Facility Effective Date, immediately prior to giving effect to the transactions contemplated by this Agreement, no Canadian Loan Party owns or leases any property
which is located in the United States other than the property set forth on Schedule 4.27. 
 SECTION 5    CONDITIONS
PRECEDENT 
 5.1 Conditions to Interim Facility Effectiveness. The agreement of each Lender to make the initial Loans or any other
extension of credit requested to be made by it hereunder during the Interim Period is subject to the satisfaction, or waiver in accordance with Section 10.1, prior to or concurrently with the making of such extension of credit on the Interim
Facility Effective Date, of the following conditions precedent: 
 (a) Loan Documents. The Agents shall have received (i) this
Agreement, executed and delivered by a duly authorized officer of the Parent and the Borrower, respectively, (ii) signed counterpart signature pages (or facsimiled copies thereof, which shall be enforceable as an original) of this Agreement
delivered by each Agent and Lender listed on the signature pages hereof, (iii) the Fee Letter, executed and delivered by a duly authorized officer of the Borrower and each Agent, (iv) the Guaranty, executed and delivered by a duly
authorized officer of the Parent and each other Guarantor, executed and delivered by a duly authorized officer of the Borrower, the Parent and each other Guarantor, and each Canadian General Security Agreement, executed and delivered by a duly
authorized officer of the Parent, the Borrower and each other Canadian Loan Party, (v) each other Canadian Security Document, in each case executed and delivered by a duly authorized officer of each party thereto, and (vi) each other Loan
Document requested by the Agents and set forth in the closing list delivered to the Loan Parties prior to the date hereof. 
  

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 (b) Reserved. 
 (c) Approvals. Subject to the entry and the terms of the Interim Bankruptcy Court Orders, all governmental and third party approvals necessary in connection with the financing hereunder and the transactions
contemplated hereby shall have been obtained and be in full force and effect, and 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 financing contemplated hereby. 
 (d) Reserved. 
 (e) Fees. Subject to the next sentence the Lenders and the Agents shall have received all fees required to be paid (including, without limitation,
the fees set forth in the Fee Letter), and all expenses for which invoices have been presented (including reasonable fees, disbursements and other charges of counsel to each of the Agents), on or before the Interim Facility Effective Date. All such
amounts will be paid substantially simultaneously with the initial funding with proceeds of Loans made on the Interim Facility Effective Date and will be reflected in the funding instructions given by the Borrower to the Administrative Agent and the
Collateral Agent on or before the Interim Facility Effective Date. 
 (f) Interim Bankruptcy Court Orders. The Interim Bankruptcy
Court Orders shall have been signed, made and entered by each Bankruptcy Court as applicable and the Administrative Agent and the Collateral Agent shall have received a true and complete copy of each such order in form and substance satisfactory to
the Agents, and each such order shall be in full force and effect and shall not have been reversed, modified, amended, stayed or vacated and shall not be subject to a pending appeal or motion for leave to appeal or other proceeding to set aside any
such order or challenge to the jurisdiction of the Canadian Bankruptcy Court in the CCAA Proceedings absent prior written consent of the Agents, the Lenders and the Borrower. 
 (g) Lien Searches. The Agents shall have received the results of a recent lien search in each jurisdiction or office as reasonably determined by
the Agents, and the Agents shall be satisfied with the results of such lien searches, including with the fact that the Collateral is not subject to any Liens other than Permitted Liens or such Liens as the Lenders have approved prior to the date
hereof. 
 (h) Closing Certificate. The Agents shall have received a certificate of each Loan Party, dated the Interim Facility
Effective Date, substantially in the form of Exhibit B, with appropriate insertions and attachments. 
 (i) Other Certifications.
The Agents shall have received the following: 
 (i) a copy of the charter (or equivalent corporate organizational documents)
of each Loan Party and each amendment thereto, certified as of the date of the initial extension of credit as being a true and correct copy thereof by an officer of each such Loan Party and that, since the “Effective Date” as defined in
the Pre-Petition Credit 

  

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Agreement such charter (or equivalent corporate organizational documents) delivered pursuant to the terms of the Pre-Petition Credit Agreement, have not been
amended or otherwise modified; 
 (ii) a copy of a certificate of the Secretary of State or other applicable Governmental
Authority of the jurisdiction in which each Loan Party is organized, dated reasonably near the date of the initial extension of credit, listing the charter of such Loan Party and each amendment thereto on file in such office and, if available,
certifying that (A) such amendments are the only amendments to such Loan Party’s charter on file in such office, (B) such Loan Party has paid all franchise taxes to the date of such certificate (except in the case of the Canadian Loan
Parties with respect to which no such certification is available) and (C) such Loan Party is duly organized and in good standing under the laws of such jurisdiction; 
 (iii) an electronic confirmation (other than in the case of the Canadian Loan Parties with respect to which no such electronic
confirmation is available) from the Secretary of State or other applicable Governmental Authority of each jurisdiction in which each such Loan Party is organized certifying that such Loan Party is duly organized and in good standing under the laws
of such jurisdiction on the date of the initial extension of credit; prepared by, or on behalf of, a filing service reasonably acceptable to the Agents; and 
 (iv) a copy of a certificate of the Secretary of State or other applicable Governmental Authority of Applicable Jurisdictions dated
reasonably near the date of the initial extension of credit, stating that each Loan Party is duly qualified and in good standing as a foreign corporation or entity in each such jurisdiction and has filed all annual reports required to be filed to
the date of such certificate. 
 (j) Legal Opinions. The Agents shall have received the following executed legal opinions: 

(i) the legal opinion of Shearman & Sterling LLP, special counsel to the Parent and its Subsidiaries, in form and substance
reasonably satisfactory to the Agents and their counsel; and 
 (ii) the legal opinion of Borden Ladner Gervais LLP, Canadian
counsel to the Canadian Loan Parties, in form and substance reasonably satisfactory to the Agents and their counsel. 
 Each such legal opinion shall cover
such other matters customary and incident to the transactions contemplated by this Agreement as the Agents may reasonably require. 
 (k)
Material Adverse Effect. The Collateral Agent shall have determined, in its reasonable judgment, that no event or development which could have a Material Adverse Effect shall have occurred and be continuing since December 31, 2006.

  

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 (l) Priority. The Collateral Agent shall be satisfied that it has been granted, and holds for the
benefit of the Agents, Lenders and the L/C Issuer, a perfected, first priority Lien on, and security interest in, all of the Collateral, subject only to Permitted Priority Liens. 
 (m) Filings, Registrations, Recordings and Other Documents. Each document or electronic filing required by the Canadian Security Documents or
under law or reasonably requested by the Agents to be filed, registered or recorded in order to create in favor of the Collateral Agent, for the benefit of the Secured Parties, a perfected Lien on the Collateral described therein, prior and superior
in right to any other Person (other than with respect to Permitted Liens), shall have been filed, registered or recorded or shall have been delivered to the Collateral Agent in proper form for filing, registration or recordation. 
 (n) First Day Motions. The Agents shall have received on or before the Filing Date, copies of the first day motions to be filed by the Borrower
with the US Bankruptcy Court in the Chapter 11 Cases and the Canadian DIP Order to be requested from the Canadian Bankruptcy Court in the CCAA Proceedings, each of which shall be in form and substance satisfactory to the Agents. 
 (o) Insurance. The Agents shall have received insurance certificates satisfying the requirements of this Agreement or other evidence satisfactory
to the Agents, that insurance reasonably satisfactory to the Agents remains in effect. 
 (p) Reserved. 
 (q) No Proceedings. Except any pre-petition litigation that is stayed as to enforceability by any applicable Bankruptcy Code, on the Interim
Facility Effective Date there is no litigation, investigation or proceeding of or before any arbitrator or Governmental Authority pending or, to the knowledge of any Responsible Officer of the Parent or the Borrower, threatened by or against the
Parent or any of its Subsidiaries, or against any of their respective properties or revenues, (a) with respect to any of the Loan Documents or any of the transactions contemplated hereby or (b) except as set forth on Schedule 4.6,
involving a claim for damages in excess of $100,000. 
 (r) Cash Management System. Subject to Section 6.16(b), the Collateral
Agent and each Agent shall be satisfied in its reasonable discretion with, the cash management system of the Loan Parties. 
 (s)
Pre-Petition Revolving Credit Facility. The Interim Bankruptcy Court Orders shall authorize the partial repayment of Pre-Petition Revolving Loan Obligations with the Net Cash Proceeds of Revolving Priority Borrowing Base Collateral as they
are received. 
 (t) Commencement of Chapter 11 Cases and CCAA Proceedings. The Loan Parties shall have commenced the Chapter 11 Cases
and the CCAA Proceedings and no trustee, examiner or receiver shall have been appointed or designated with respect to the Loan Parties or their respective business, properties or assets and no motion shall be pending seeking any relief or seeking
any other relief in any Bankruptcy Court to exercise control over the Collateral. 
  

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 (u) Eligible Foreign Accounts Credit Insurance. The Administrative Agent shall have received
(i) a copy of the Eligible Foreign Accounts Credit Insurance policy, which policy shall be in full force and effect and shall provide that it is effective through at least September 14, 2008 and shall otherwise be in form and substance
reasonably satisfactory to the Administrative Agent, (ii) satisfactory evidence of the payment of the premiums for such policy, and (iii) a collateral assignment of such policy, or a loss payable endorsement with respect to such policy, in
each case reasonably acceptable to the Administrative Agent. 
 (v) Initial Budget. The Agents shall have received a copy of the
Initial Budget, together with a certificate of a duly authorized officer of the Borrower stating that such Initial Budget has been prepared on a reasonable basis and in good faith and is based on assumptions believed by the Borrower to be reasonable
at the time made and is consistent with all information then reasonably available to the Borrower, which Initial Budget shall be in form and substance satisfactory to the Agents. 
 (w) Motion for Approval of Sale. The Agents shall be satisfied in their Permitted Discretion that the Loan Parties shall have filed with the US
Bankruptcy Court one or more motions for approval of procedures for the sale of all or substantially all of the Loan Parties’ assets, each of which shall be in form and substance satisfactory to the Agents. 
 (x) Other Statutory Liabilities. The Agent shall have received a duly completed Schedule 2.5(A), which shall set forth the amount of the Other
Statutory Liabilities identified therein as of the CCAA Filing Date and be in form and substance satisfactory to the Agents. 
 (y)
Miscellaneous. The Agents shall have received such other documents, instruments, approvals, agreements, certificates and information as they shall reasonably request, each reasonably satisfactory in form and substance to the Lenders.

 Each Lender, by delivering its signature page to this Agreement or an Addendum and funding a Loan on the Interim Facility Effective Date,
shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other document required to be approved by any Agent, Required Lenders or Lenders, as applicable on the Interim Facility Effective Date.

 5.2 Conditions to Final Facility Effectiveness. The agreement of each Lender to make any Loan or other extension of credit
requested to be made by it hereunder during the Final Period is subject to the satisfaction, or waiver in accordance with Section 10.1, prior to or concurrently with the making of such Loan or other extension of credit on the Final Facility
Effective Date, of the following conditions precedent: 
 (a) Approvals. Subject to the entry and the terms of the Final Bankruptcy
Court Orders, all governmental and third party approvals necessary in connection with the financing hereunder and the transactions contemplated hereby shall have been obtained and be in full force and effect, and 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 financing contemplated hereby. 
  

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 (b) Fees. The Lenders and the Agents shall have received all fees required to be paid, and all
expenses for which invoices have been presented (including reasonable fees, disbursements and other charges of counsel to each of the Agents), on or before the Final Facility Effective Date. All such amounts will be paid with proceeds of Loans made
on the Final Facility Effective Date and will be reflected in the funding instructions given by the Borrower to the Administrative Agent and the Collateral Agent on or before the Final Facility Effective Date. 
 (c) Final Bankruptcy Court Orders. In the case of the Chapter 11 Cases, the Final Bankruptcy Court Order of the US Bankruptcy Court shall have
been signed and entered by the US Bankruptcy Court within a date that is 30 days following the Interim Bankruptcy Order Entry Date and the Administrative Agent and the Collateral Agent shall have received a true and complete copy of such order and,
in the case of the CCAA Proceedings, the further hearing date contemplated by the Canadian DIP Order shall have been held within 30 days following the Interim Bankruptcy Order Entry Date and no amendments or variations to the Canadian DIP Order
shall have been made, and the Final Bankruptcy Court Order of the US Bankruptcy Court and the Canadian DIP Order of the Canadian Bankruptcy Court shall both be in full force and effect and shall not have been reversed, modified, amended, stayed or
vacated or subject to a pending appeal or motion for leave to appeal absent prior written consent of the Agents, the Lenders and the Borrower. 
 (d) Pre-Petition Revolving Credit Facility. The Final Bankruptcy Court Orders shall authorize the repayment in full of all outstanding Pre-Petition Revolving Loan Obligations (together with all accrued and unpaid interest, fees,
costs and other charges with respect thereto), with the proceeds of Revolving Credit Loans made on the Final Facility Effective Date. 
 (e)
Material Adverse Effect. The Collateral Agent shall have determined, in its reasonable judgment, that no event or development which could have a Material Adverse Effect shall have occurred and be continuing since December 31, 2006.

 (f) Priority. The Collateral Agent shall be satisfied that it has been granted, and still continues to hold for the benefit of the
Agents, Lenders and the L/C Issuer, a perfected, first priority Lien on, and security interest in, all of the Collateral, subject only to Permitted Priority Liens. 
 Each Lender, by delivering its signature page to this Agreement or an Addendum and funding a Loan on or after the Final Facility Effective Date, shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan
Document and each other document required to be approved by any Agent, Required Lenders or Lenders, as applicable on the Final Facility Effective Date. 
 5.3 Conditions to Each Extension of Credit. The agreement of each Lender to make any extension of credit requested to be made by it hereunder on any date (including, without limitation, its initial extension of
credit) is subject to the satisfaction of the following conditions precedent: 
 (a) Representations and Warranties. Each of the
representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall be true and correct on and as of such date as if made on and as of such date, except for representations and warranties expressly stated to relate to a
specific earlier date, in which case such representations and warranties shall be true and correct as of such earlier date. 
  

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 (b) No Default. No Default or Event of Default shall exist and be continuing on such date or after
giving effect to the extensions of credit requested to be made on such date. 
 (c) Borrowing Base. In the case of each Revolving
Extension of Credit, the Administrative Agent shall be satisfied in its Permitted Discretion that, after giving effect thereto, the then current Borrowing Base less the amount of any Reinstated Pre-Petition Revolving Loan Obligations shall not be
less than the Total Revolving Extensions of Credit. 
 (d) Notices. The Agents shall have received a Borrowing Notice as required by
Section 2.3 and 2.6, as applicable. 
 (e) Initial Budget. In the case of any extension of credit, the Agents shall be satisfied
in their Permitted Discretion that any such extension of credit is in compliance with the Initial Budget after giving effect to any Budget Carryover Amount (to be calculated and applied as set forth in the definition of such term in
Section 1.1). 
 Each borrowing by and issuance of a Letter of Credit on behalf of the Borrower hereunder shall constitute a
representation and warranty by the Borrower as of the date of such extension of credit that the conditions contained in this Section 5.3 have been satisfied. 
 SECTION 6    AFFIRMATIVE COVENANTS 
 The Parent and the Borrower each hereby agrees
that, so long as the Commitments remain in effect, any Letter of Credit remains outstanding (other than any Letter of Credit that has been cash collateralized in accordance with the terms of this Agreement or as to which the Borrower has provided an
Acceptable Backup Letter of Credit to be held by the Administrative Agent for the benefit of the Issuing Bank and the Revolving Credit Lenders) or any Loan or other amount is owing to any Lender, any Agent or the Arranger hereunder, that it shall
and shall cause each of its Subsidiaries to: 
 6.1 Financial Statements. Furnish to each Agent and each Lender, from time to time:

 (a) [reserved]. 
 (b) as soon
as available, but in any event (i) in the case of the fiscal quarter of the Parent ending September 30, 2007, not later than November 30, 2007 and (ii) in the case of each fiscal quarter of the Parent ending thereafter, not later
than 45 days after the end of each such fiscal quarter, the unaudited consolidated and, with respect to the lumber and pulp divisions of the Parent and its Subsidiaries, consolidating balance sheets of the Parent and its Subsidiaries as at the end
of such quarter and the related unaudited consolidated and, with respect to the lumber and pulp divisions of the Parent and its Subsidiaries, consolidating statements of income 

  

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and of cash flows for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative form the
figures as of the end of and for the corresponding period in the previous year, certified by the chief financial officer of the Parent to present fairly in all material respects, in conformity with GAAP, the Parent’s consolidated and, with
respect to the lumber and pulp divisions of the Parent and its Subsidiaries, consolidating financial condition as of the date thereof and its consolidated and, with respect to the lumber and pulp divisions of the Parent and its Subsidiaries,
consolidating results of operations and cash flows for the period then ended (subject to year end audit adjustments and absence of footnotes); and 
 (c) as soon as available, and in any event within 30 days after the end of each fiscal month of the Parent and its Subsidiaries, internally prepared consolidated and, with respect to the lumber and pulp divisions of the Parent and its
Subsidiaries, consolidating balance sheets, consolidated and, with respect to the lumber and pulp divisions of the Parent and its Subsidiaries, consolidating statements of income and cash flows as at the end of such fiscal month, and for the period
commencing at the end of the immediately preceding fiscal year and ending with the end of such fiscal month, all in reasonable detail and be certified by the chief financial officer of the Parent as fairly presenting, in all material respects, its
consolidated and, with respect to the lumber and pulp divisions of the Parent and its Subsidiaries, consolidating financial condition as at the end of such fiscal month and its consolidated and, with respect to the lumber and pulp divisions of the
Parent and its Subsidiaries, consolidating results of operations and cash flows for such fiscal month, in accordance with GAAP applied in a manner consistent with that of the most recent audited financial statements furnished to the Agents and the
Lenders, subject to year-end audit adjustments and the absence of footnotes; 
 all such financial statements to be complete and correct in all material
respects and to be prepared in reasonable detail and in accordance with GAAP (subject, in the case of interim financial statements, to year-end audit adjustments and absence of footnotes) applied consistently throughout the periods reflected therein
and with prior periods (except as approved by such accountants or officer, as the case may be, and disclosed therein). 
 6.2
Certificates; Other Information. Furnish to each Agent and each Lender: 
 (a) [reserved]; 
 (b) concurrently with the delivery of any financial statements pursuant to Section 6.1, (i) a certificate of a Responsible Officer stating that
such Responsible Officer has obtained no knowledge of any Default or Event of Default except as specified in such certificate and (ii) (x) a Compliance Certificate containing all information necessary for determining compliance by the
Parent and its Subsidiaries with the provisions of this Agreement referred to therein as of the last day of the fiscal quarter or fiscal year of the Borrower, as the case may be, (y) to the extent not previously disclosed to the Agents, in
writing, a listing of any jurisdiction where any Loan Party keeps inventory or equipment with a Book Value in excess of $500,000 at any one location and of any registered Intellectual Property acquired by any Loan Party since the date of the most
recent list delivered pursuant to this clause (x) (or, in the case of the first such list so delivered, since the Interim Facility Effective Date) and (y) filings or other actions specified herein, in any Bankruptcy Court Order or in such
Compliance Certificate as being required to be delivered or taken therewith; 
  

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 (c) [reserved]; 
 (d) concurrently with the delivery of any financial statements pursuant to Section 6.1(b), a narrative discussion and analysis of the financial condition and results of operations of the Parent and its
Subsidiaries for such fiscal quarter and for the period from the beginning of the then current fiscal year to the end of such fiscal quarter, as compared to the comparable periods of the previous year; 
 (e) no later than five Business Days or such lesser period of time as the Agents may agree prior to the effectiveness thereof, copies of substantially
final drafts of any proposed amendment, supplement, waiver or other modification with respect to the governing documents of any Loan Party; 
 (f) within five Business Days after the same are sent, copies of all financial statements and reports that the Parent or any of its Subsidiaries sends to the holders of any class of its debt securities or public equity securities generally
and, within five days after the same are filed, copies of all financial statements and reports that the Parent or any of its Subsidiaries may make to, or file with, the SEC; 
 (g) no later than five (5) Business Days prior to the earlier to occur of (i) the date of the consummation of a sale of the assets constituting
the lumber division of the Loan Parties or (ii) the date of the consummation of a sale of the assets constituting the pulp division of the Loan Parties, a cash requirement forecast to update, supersede and replace the Initial Budget setting
forth cash collections and disbursements of the Loan Parties for the periods covered thereby through the Final Maturity Date (which forecast shall (w) include a calculation of Availability during such period, (x) include the amount of
financing that will be required during each week of such period, (y) include the application of the gross proceeds of such lumber or pulp division (as the case may be) sale, purchase price adjustments and deductions, and the related reduction
in expenses and other disbursements for the Loan Parties as a result of any such sale, and (z) identify, on a schedule thereto, the professionals and the professional fees and disbursements expected to be paid to such professionals as
Administration Charge Expenses and US Carve-Out Expenses during such period, prepared on a weekly basis by or on behalf of the Borrower, in form and substance satisfactory to the Agents and the Required Lenders (the “Updated
Budget”), which Updated Budget shall be (A) believed by the Borrower at the time furnished to be reasonable, (B) prepared on a reasonable basis and in good faith, and (C) based on assumptions believed by the Borrower to be
reasonable at the time made and consistent with information then reasonably available to the Borrower, and shall be accompanied by a certificate of a duly authorized officer of the Borrower certifying as to the matters set forth in subclauses (A),
(B), and (C). The Updated Budget shall become the Initial Budget for all purposes of this Agreement once approved by the Agents and the Required Lenders; 
 (h) provide the Agents with each of the reports set forth on Schedule 6.2(h) (collateral reporting and foreign credit insurance reporting) at the times specified therein. In addition, the Borrower agrees to cooperate
fully with the Agents to facilitate and implement a system of electronic collateral reporting in order to provide electronic reporting of each of the items set forth above; 
  

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 (i) promptly after the filing thereof, copies of all pleadings, motions, applications, financial
information and other papers and documents filed by any Loan Party in the Chapter 11 Cases and the CCAA Proceedings, which papers and documents shall also be given or served on the Collateral Agent’s and the Administrative Agent’s counsel;

 (j) promptly after the sending thereof, copies of all written reports given by any Loan Party to any official or unofficial
creditors’ committee in the Chapter 11 Cases or to the Monitor in the CCAA Proceedings, other than to the extent such reports are subject to privilege, provided, that such Person may redact any confidential information contained in any
such report if it provides a summary of the nature of the information redacted to the Collateral Agent and the Administrative Agent; 
 (k)
[reserved]; 
 (l) within three (3) Business Days after the end of each week, commencing with the week beginning November 26, 2007,
a reconciliation, in form and substance acceptable to the Agents, of the actual cash collections and disbursements of the Loan Parties for such week to the budgeted line item amounts set forth in the Initial Budget for such week together with a
written explanation of any material variances and a calculation of the Budget Carryover Amount for such week (a “Variance Report”); and 
 (m) promptly, any mark-ups and comments that the Loan Parties deliver to any proposed purchaser in connection with any written agreements for the sale of all or substantially all of the Loan Parties’ assets,
subject to higher and better offers; 
 (n) within two (2) Business Days after the end of each week, commencing with the week beginning
November 26, 2007, a summary of all activities that occurred during the preceding week relating to the negotiation and documentation of one or more agreements for the sale of all or substantially all of the Loan Parties’ assets or any
other offers to purchase any material portion of the Loan Parties’ assets or equity interests, in each case, occurring during the preceding week; 
 (o) promptly, such additional financial and other information as any Lender may from time to time reasonably request (including, without limitation, any diligence that may be required in connection with the
preparation of a credit bid for the Loan Parties’ assets). 
 6.3 Reserved. 
 6.4 Conduct of Business and Maintenance of Existence, etc. (a) (i) Preserve, renew and keep in full force and effect its corporate or
other existence and (ii) take all necessary action to maintain all rights, privileges, franchises, Permits and licenses necessary in the proper conduct of its business, except, in each case, as otherwise permitted by Section 7.4 and
except, in the case of clause (ii) above, to the extent the failure to do so would not reasonable be expected to have a Material Adverse Effect; and (b) to the extent not in conflict with this Agreement or the other Loan Documents, comply
with all Contractual Obligations and Requirements of Law, except to the extent that failure to comply therewith would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
  

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 6.5 Maintenance of Property; Insurance. (a) Keep all Property and systems necessary in its
business in good working order and condition, ordinary wear and tear excepted to the extent that payments required to be made in order to comply with this covenant can be made in accordance with the Initial Budget, and (b) maintain insurance
with financially sound and reputable insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business interruption insurance) with respect to its properties (including all real properties
leased or owned by it) and business, in such amounts and covering such risks as is required by any Governmental Authority having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies in
similar businesses similarly situated and in any event in amount, adequacy and scope reasonably satisfactory to the Agents; provided, that, such insurance shall be deemed to be satisfactory to the Agents, if the insurance maintained by the Parent
and its Subsidiaries is at least in substantially similar amounts and covering similar risks as the insurance maintained by the Loan Parties on the Interim Facility Effective Date. All policies covering the Collateral are to be made payable to the
Collateral Agent, or such other Person as the Collateral Agent may designate from time to time, for the benefit of the Lenders, as their interests may appear, in case of loss, under a standard non-contributory “lender” or “secured
party” clause. All certificates of insurance are to be delivered to the Collateral Agent and the policies are to be premium prepaid, with the loss payable and additional insured endorsement in favor of the Collateral Agent and such other
Persons as the Collateral Agent may designate from time to time, and shall provide for not less than 30 days’ prior written notice to the Collateral Agent of the exercise of any right of cancellation (or 10 days’ prior written notice in
the case of cancellation for failure to pay premium). If any Loan Party or any of its Subsidiaries fails to maintain such insurance, the Collateral Agent may arrange for such insurance, but at the Borrower’s expense and without any
responsibility on the Collateral Agent’s part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the collection of claims. Upon the occurrence and during the continuance of an Event of
Default, the Collateral Agent shall have the sole right, in the name of the Lenders, any Loan Party and its Subsidiaries, to file claims under any insurance policies, to receive, receipt and give acquittance for any payments that may be payable
thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies.

 6.6 Inspection of Property; Books and Records; Discussions. (a) Keep proper books of records and accounts in which entries, to
permit financial statements to be prepared in accordance with GAAP, shall be made of all dealings and transactions in relation to its business and activities and (b) permit representatives of any Lender to visit and inspect any of its
properties and examine and, at the Borrower’s expense, make abstracts from any of its books and records at any reasonable time and as often as may reasonably be desired to verify materials, leases, notes, accounts receivable, deposit accounts
and its other assets, to conduct audits, physical counts, valuations, appraisals, Phase I Environmental Site Assessments (and, if requested by the Collateral Agent based upon the results of any such Phase I Environmental Site Assessment, a
Phase II Environmental Site Assessment) or to discuss the business, operations, properties and financial and other condition of the Parent and its Subsidiaries with officers and 

  

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employees of the Parent and its Subsidiaries and with their respective independent certified public accountants; provided, that, in the absence of an
Event of Default, (i) each Agent shall provide the Borrower or Parent, as applicable, with reasonable written notice prior to any visit or inspection and (ii) a representative of the Loan Parties shall be given the opportunity to be
present for any discussion with their independent public accountants. The Borrower agrees to pay (a) $1,000 per day per examiner plus the examiner’s out-of-pocket costs and reasonable expenses incurred in connection with all such visits,
audits, inspections, valuations and field examinations and (b) the out-of-pocket cost of all visits, audits, inspections, valuations and field examinations conducted by a third party on behalf of the Agents; provided, that, in the
absence of an Event of Default, the Borrower shall not be obligated to pay for more than two audits, and one other visit during the term of this Agreement; provided, however, that after the occurrence and during the continuance of an
Event of Default, the Borrower shall pay for all audits, valuations and visits. Upon the request of the Borrower, the Administrative Agent shall provide the Borrower with a reasonably detailed report of any expenses or costs referred to in this
Section 6.6, provided, that Administrative Agent shall have the right to charge the Loan Account prior to giving such invoice to the Borrower. 
 6.7 Notices. Promptly give notice to the Agents and each Lender of: 
 (a) the occurrence of any
Default or Event of Default; 
 (b) any litigation or proceeding affecting the Parent or any of its Subsidiaries in which the amount involved
is at least $1,500,000 or in which injunctive or similar relief is sought and such injunctive relief, if granted, would reasonably be expected to have a Material Adverse Effect; 
 (c) the following events, as soon as possible and in any event within 15 days after a Responsible Officer of the Borrower or the Parent knows or has
reason to know thereof: (i)(A) the occurrence of any Reportable Event with respect to any Single Employer Plan or any similar or analogous event with respect to any Canadian Benefit Plan or Canadian Pension Plan, (B) a failure by the Borrower
or any Commonly Controlled Entity to make any required contribution to a Plan, a Canadian Benefit Plan or a Canadian Pension Plan, (C) the creation of any Lien on assets of the Borrower or any Commonly Controlled Entity in favor of the PBGC or
a Single Employer Plan or any similar or analogous event with respect to any Canadian Benefit Plan or Canadian Pension Plan or (D) any complete or partial withdrawal by the Borrower or any Commonly Controlled Entity from, or the termination,
Reorganization or Insolvency of, any Multiemployer Plan, or any similar or analogous event with respect to any Canadian Benefit Plan or Canadian Pension Plan, (ii) the institution of proceedings or the taking of any other action by the PBGC or
the Borrower or any Commonly Controlled Entity to terminate any Plan or any similar or analogous event with respect to any Canadian Benefit Plan or Canadian Pension Plan, (iii) any notice and demand of withdrawal liability from any
Multiemployer Plan with respect to the complete or partial withdrawal by the Borrower or any Commonly Controlled Entity from any Multiemployer Plan, or any notice from any Multiemployer Plan of the termination, Reorganization or Insolvency of such
Multiemployer Plan or any similar or analogous event with respect to any Canadian Benefit Plan or Canadian Pension Plan, or (iv) an accumulated funding deficiency has been incurred by the Borrower or any Commonly Controlled Entity or an
application has been made by the Borrower or any Commonly Controlled Entity to the Secretary 

  

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of the Treasury for a waiver or modification of the minimum funding standard (including installment payments) or an extension of any amortization period
under Section 412 of the Code with respect to a Single Employer Plan or any similar or analogous event or application has occurred or been made with respect to any Canadian Benefit Plan or Canadian Pension Plan; 
 (d) as soon as possible and in any event within 15 days of obtaining knowledge thereof: any notice that any Governmental Authority may deny any
application for an Environmental Permit sought by, or revoke or refuse to renew any Environmental Permit held by, a Loan Party; and 
 (e)
any development or event that has had or would reasonably be expected to have a Material Adverse Effect. 
 Each notice pursuant to this Section shall be
accompanied by a statement of a Responsible Officer setting forth details of the occurrence referred to therein and stating what action the Borrower or the relevant Subsidiary proposes to take with respect thereto. 
 6.8 Environmental Laws. (a) Comply with, and ensure compliance in all material respects by all tenants and subtenants, if any, with, all
applicable Environmental Laws and Environmental Permits, and obtain, maintain and comply with, and ensure that all tenants and subtenants obtain, maintain and comply in all material respects with, any and all Environmental Permits, and shall provide
to the Agents documentation of such compliance which any Agent reasonably requests; 
 (b) Conduct and complete all investigations, studies,
sampling and testing, and all Remedial Actions reasonably required of the Parent or any of its Subsidiaries under Environmental Laws and promptly respond to all Environmental Actions by any Governmental Authorities; 
 (c) Promptly notify the Agents of any Release of a Material of Environmental Concern in excess of any reportable quantity and requiring a Remedial
Action, and take such Remedial Actions reasonably required under Environmental Laws to abate said Release; and 
 (d) Promptly provide the
Agents with written notice within ten (10) days of the receipt of any: 
 (i) notice that an Environmental Lien has been
filed against real or personal property of the Parent or Subsidiary; 
 (ii) a notice of any Environmental Action which would
be reasonably be expected to subject the Borrower to Environmental Costs of $1,500,000 or more; and 
 (iii) commencement of
an Environmental Action or written notice that an Environmental Action will be filed against the Parent or its Subsidiaries which is reasonably expected to have a Material Adverse Effect on the Parent or its Subsidiaries. 
 6.9 Reserved. 
  

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 6.10 Additional Collateral, etc. (a) With respect to any Property acquired after the Interim
Facility Effective Date by any Loan Party (other than any Property subject to a Lien permitted by Section 7.3(f) or Section 7.3(g)) as to which the Collateral Agent, for the benefit of the Secured Parties, does not have a perfected Lien,
promptly (i) execute and deliver to the Collateral Agent Pledge and Security Agreements, the Canadian General Security Agreements or such other documents as the Collateral Agent deems necessary to grant to the Collateral Agent, for the benefit
of the Secured Parties, a security interest in such Property and (ii) take all actions necessary to grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected first priority security interest (subject to Permitted Liens)
in such Property, including without limitation, the filing of financing statements in such jurisdictions as may be required by any Pledge and Security Agreement and any Canadian General Security Agreement or by law or as may be reasonably requested
by the Collateral Agent. 
 (b) With respect to any fee interest in any real property having a value (together with improvements thereof) of
at least $1,000,000 acquired after the Interim Facility Effective Date by a Loan Party (other than any real property subject to a Lien permitted by Section 7.3(f) or Section 7.3(g)), promptly, and in any event within 30 days after the
acquisition thereof, (i) execute and deliver a first priority Mortgage (subject to Permitted Liens) in favor of the Collateral Agent, for the benefit of the Secured Parties, covering such real property, (ii) if requested by the Collateral
Agent, provide the Lenders with (x) title and extended coverage insurance covering such real property in an amount at least equal to the purchase price of such real property (or such other amount as shall be reasonably specified by the
Collateral Agent) and (y) any consents or estoppels reasonably deemed necessary by the Collateral Agent in connection with such Mortgage, each of the foregoing in form and substance reasonably satisfactory to the Collateral Agent and
(iii) if requested by the Collateral Agent, deliver to the Collateral Agent legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Collateral
Agent. 
 (c) With respect to any new U.S. or Canadian Subsidiary created or acquired after the Interim Facility Effective Date, by any Loan
Party, promptly, and in any event within 15 days after such creation or acquisition, (i) execute and deliver to the Collateral Agent such Pledge and Security Agreements as the Collateral Agent deems necessary or advisable to grant to the
Collateral Agent, for the benefit of the Secured Parties, a perfected first priority security interest in the Capital Stock of such new Subsidiary that is owned directly by a Loan Party, (ii) deliver to the Collateral Agent the certificates
representing such Capital Stock, together with undated stock powers, in blank, executed and delivered by a duly authorized officer of the applicable Loan Party, (iii) cause such new Subsidiary (A) to become a party to the Guaranty and a
Pledge and Security Agreement and/or to execute a Canadian General Security Agreement, as required by the Collateral Agent and (B) to take such actions necessary to grant to the Collateral Agent for the benefit of the Secured Parties a
perfected first priority security interest in the Collateral described in the Security Documents with respect to such new Subsidiary, including, without limitation, the filing of Uniform Commercial Code financing statements in such jurisdictions as
may be required by any Security Document or by law or as may be requested by the Collateral Agent, and (iv) if requested by the Collateral Agent, deliver to the Collateral Agent legal opinions relating to the matters described above, which
opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Collateral Agent. 
  

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 (d) With respect to any new Subsidiary of the Parent organized in a jurisdiction other than the United
States or Canada that is created or acquired after the Interim Facility Effective Date by a Loan Party, promptly, and in any event within 15 days after such creation or acquisition, (i) execute and deliver to the Collateral Agent such Pledge
and Security Agreements as the Collateral Agent deems necessary to grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected first priority security interest in the Capital Stock of such new Subsidiary that is owned directly
by a Loan Party, (ii) deliver to the Collateral Agent the certificates representing such Capital Stock, together with undated stock powers, in blank, executed and delivered by a duly authorized officer of the applicable Loan Party, and take
such other action as may be necessary or, in the opinion of the Collateral Agent, desirable to perfect the Lien of the Collateral Agent thereon, and (iii) if requested by the Collateral Agent, deliver to the Collateral Agent legal opinions
relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Collateral Agent. 
 6.11 Borrowing Base Certificate. In the case of the Borrower, deliver or cause to be delivered to the Administrative Agent and Collateral Agent, at the Borrower’s expense, the Borrowing Base Certificate on
a weekly basis and in no event later than 3 Business Days after the end of each week (commencing with the week beginning November 26, 2007) or more frequently as the Administrative Agent may reasonably request, in each case supported by
schedules showing the derivation thereof and containing such detail and other information as any Agent may reasonably request from time to time, provided, that (i) the Borrowing Base set forth in the Borrowing Base Certificate shall be
effective from and including the date such Borrowing Base Certificate is duly received by the Agents to but not including the date on which a subsequent Borrowing Base Certificate is received by the Agents, unless any Agent disputes the eligibility
of any property included in the calculation of the Borrowing Base or the valuation thereof by notice of such dispute to the Borrower and (ii) in the event of any dispute about the eligibility of any property included in the calculation of the
Borrowing Base or the valuation thereof, such Agent’s Permitted Discretion shall control. The Borrower shall also deliver to the Administrative Agent and Collateral Agent such other reports, statements and reconciliations with respect to the
Borrowing Base or the Collateral as either of them shall from time to time request in its reasonable discretion. 
 6.12 Use of
Proceeds. Use the proceeds of the Loans only for the purposes specified in Section 4.17 and in accordance with the expenditure line items in the Initial Budget (after giving effect to the Budget Carryover Amount (to be calculated and
applied as set forth in the definition of such term in Section 1.1) and subject to the terms, conditions and limitations of this Agreement and the Bankruptcy Court Orders. 
 6.13 Pension and Benefit Plans. 
 (a)
ERISA. The Parent and the Borrower will cause to be delivered to the Agents, promptly upon the Agents’ written request, any or all of the following: (i) a copy of each material Plan and, if applicable, related trust agreements or
other funding instruments and all amendments thereto, and the most recent summary plan description (and any summaries of material modifications) thereof that have been distributed to employees or former employees of the Parent or any of its
Subsidiaries; (ii) the most recent determination letter issued by the Internal Revenue Service with respect to each Single Employer Plan; (iii) for the three most 

  

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recent plan years preceding the Agents’ request, Annual Reports on Form 5500 Series required to be filed with any governmental agency for each Plan;
(iv) a listing of all Multiemployer Plans, with the aggregate amount of the most recently completed twelve (12) calendar months of contributions required to be made by the Borrower or any Commonly Controlled Entity to each such Plan and
copies of the collective bargaining agreements requiring such contributions; (v) any written information that has been provided to the Borrower or any Commonly Controlled Entity regarding withdrawal liability under any Multiemployer Plan;
(vi) the aggregate amount of payments made by the Borrower or any Commonly Controlled Entity under any employee welfare benefit plan (as defined in Section 3(1) of ERISA) to any retired employees of the Parent or any of its Subsidiaries
(or any dependents thereof) during the most recently completed fiscal year of the Borrower; and (vii) documents reflecting any agreements between the PBGC and the Borrower or any Commonly Controlled Entity with respect to any Plan. 

(b) Canadian Benefit and Pension Plans.  
 (i) The Parent and the Borrower will cause to be delivered to the Agents, promptly upon the Agents’ written request, a copy of each Canadian Benefit Plan and Canadian Pension Plan (or, where any such Canadian
Benefit Plan or Canadian Pension Plan is not in writing, a complete description of all material terms thereof) and, if applicable, related trust agreements or other funding instruments and all amendments thereto, and all written interpretations
thereof and written descriptions thereof that have been distributed to employees or former employees of the Loan Parties. 
 (ii) The Parent and the Borrower shall obtain and to provide the Agents upon their request with written confirmation from the applicable Governmental Authorities that each Canadian Pension Plan maintained and sponsored by the Loan Parties
which is required to be registered with any Governmental Authority under the Income Tax (Canada) or under any other Requirement of Law has been registered. Each Loan Party shall ensure that the Canadian Pension Plans maintained and sponsored by the
Loan Parties retain their registered status under and are administered in all material respects in accordance with the applicable pension plan text, funding agreement, the Income Tax Act (Canada) and all other Requirements of Law. 
 (iii) The Parent and the Borrower shall cause all reports and disclosures relating to any Canadian Pension Plans maintained or sponsored
by a Loan Party that are required by the plan or any Requirement of Law to be filed or distributed in a timely manner and shall promptly notify the Agents on becoming aware of any Pension Plan Termination Event. 
 (iv) The Parent and the Borrower shall cause each Loan Party to perform in all material respects all obligations (including (if
applicable), funding, investment and administration obligations) required to be performed by it in connection with each Canadian Pension Plan and Canadian Benefit Plan and the funding therefor; make and pay all employer contributions and premiums
required to be made or paid by it in accordance with the terms of the applicable Canadian Pension Plan and Canadian Benefit Plan and all Requirements of Law and withhold by way of authorized payroll deductions or otherwise collect and pay into the
plan all employee contributions required to be withheld or collected by it in accordance with the terms of the applicable Canadian Pension Plan and Canadian Benefit Plan and all Requirements of Law. 
  

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 6.14 Payment of Taxes. Each Loan Party and each of its Subsidiaries will pay and discharge all
taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits, or Properties, in each case on a timely basis (after taking into account all extensions or grace periods with respect thereto, if any, under
applicable law), and all lawful claims which, if unpaid, might become a Lien or charge upon any properties of a Loan Party or its Subsidiaries; provided, however, that neither a Loan Party nor its Subsidiaries shall be required to pay
any such tax, assessment charge, levy or claim (i) which is being contested in good faith by proper proceeding if adequate reserves with respect thereto are maintained on the books of the Loan Party or its Subsidiaries in accordance with GAAP,
(ii) which, together with all other unpaid taxes, assessments, charges, levies or claims, does not exceed $1,000,000 in the aggregate or (iii) to the extent that such compliance or payment or any enforcement action is stayed as a result of
the Chapter 11 Cases. 
 6.15 Further Assurances. Subject to the terms of the Bankruptcy Orders, from time to time execute and
deliver, or cause to be executed and delivered, such additional instruments, certificates or documents, and take all such actions, as the Administrative Agent or the Collateral Agent, as applicable, may reasonably request for the purposes of
implementing or effectuating the provisions of this Agreement and the other Loan Documents, or of more fully perfecting or renewing the rights of the Collateral Agent and the Secured Parties with respect to the Collateral (or with respect to any
additions thereto or replacements or proceeds or products thereof or, to the extent provided in Section 6.10, with respect to any other property or assets hereafter acquired by any Loan Party which may be deemed to be part of the Collateral)
pursuant hereto or thereto. Upon the exercise by any Agent or any Lender of any power, right, privilege or remedy pursuant to this Agreement or the other Loan Documents which requires any consent, approval, recording, qualification or authorization
of any Governmental Authority, the Borrower will execute and deliver, or will cause the execution and delivery of, all applications, certifications, instruments and other documents and papers that such Agent or such Lender may be required to obtain
from the Parent or any of its Subsidiaries for such governmental consent, approval, recording, qualification or authorization. The assurances contemplated by this Section 6.15 shall be given under applicable non-bankruptcy law (to the extent
not inconsistent with any applicable Bankruptcy Code and the Bankruptcy Court Orders) as well as each applicable Bankruptcy Code, it being the intention of the parties that the Collateral Agent may request assurances under applicable non-bankruptcy
law, and such request shall be complied with (if otherwise made in good faith by the Collateral Agent) whether or not any of the Bankruptcy Court Orders are in force and whether or not dismissal of the Chapter 11 Cases or the CCAA Proceedings or any
other action by any Bankruptcy Court is imminent, likely or threatened. 
 6.16 Change in Collateral; Collateral Records; Post Closing
Collateral. (a) Give the Collateral Agent written notice (i) not less than 10 Business Days prior to any change in the location of any Collateral, other than to locations with respect to which the Collateral Agent has filed financing
statements or otherwise has fully perfected its Liens thereon, and (ii) promptly, and in any event no later than 5 Business Days after any change in the location of any Collateral to locations with respect to which the Collateral Agent has not
filed financing statements or otherwise has fully perfected its Lien thereon, other than to locations set forth on Schedule 6.16. 
  

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 (b) Deliver to the Collateral Agent no later than the date that is 10 Business Days after the Interim
Facility Effective Date (as such date may be extended by the Collateral Agent in its reasonable discretion), an account control agreement substantially in the form of those in existence for other accounts on the Interim Facility Effective Date with
respect to account number 7323416 held by Penn Timber, Inc. at The Toronto Dominion Bank. 
 6.17 Sale Procedure. 
 (a) On or before the Interim Facility Effective Date, the Agents shall be satisfied in their Permitted Discretion that the Loan Parties shall have filed
with the Bankruptcy Courts one or more motions for approval of procedures for the sale of all or substantially all of the Loan Parties’ assets, each of which shall be in form and substance satisfactory to the Agents. 
 (b) In the case of the wood products business of the Parent and its Subsidiaries: 
 (i) On or before November 30, 2007, obtain the entry of one or more orders of the Bankruptcy Courts in form and substance reasonably
satisfactory to the Agents approving the procedures for sale of all or substantially all of the assets of the wood products business; 
 (ii) On or before December 20, 2007, conduct one or more auctions for the sale of all or substantially all of the assets of the wood products business; 
 (iii) On or before January 8, 2008, obtain the entry of one or more orders of the Bankruptcy Courts approving the sale of all or
substantially all of the assets of the wood products business; and 
 (iv) Consummate, as soon as practicable after the
conditions to closing as set forth in the relevant asset purchase agreement are satisfied and/or waived, but in any event no later than January 31, 2008, one or more sales of all or substantially all of the assets of the wood products business.

 (c) In the case of the pulp business of the Parent and its Subsidiaries: 
 (i) On or before December 7, 2007, obtain the entry of one or more orders of the Bankruptcy Courts in form and substance reasonably
satisfactory to the Agents approving the procedures for sale of all or substantially all of the assets of the pulp business; 
 (ii) On or before January 22, 2008, conduct one or more auctions for the sale of all or substantially all of the assets of the pulp business; 
  

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 (iii) On or before January 28, 2008, obtain the entry of one or more orders of the
Bankruptcy Courts approving the sale of all or substantially all of the assets of the pulp business; and 
 (iv) Consummate,
as soon as practicable after the conditions to closing as set forth in the relevant asset purchase agreement are satisfied and/or waived, but in any event no later than the Final Maturity Date, one or more sales of all or substantially all of the
assets of the pulp business. 
 SECTION 7    NEGATIVE COVENANTS 
 The Parent and the Borrower each hereby agrees that, so long as the Commitments remain in effect, any Letter of Credit (other than any Letter of Credit
that has been cash collateralized in accordance with the terms of this Agreement or as to which the Borrower has provided an Acceptable Backup Letter of Credit to be held by the Administrative Agent for the benefit of the Issuing Bank and the
Revolving Credit Lenders) remains outstanding or any Loan or other amount is owing to any Lender, any Agent or the Arranger hereunder, each of the Parent and the Borrower shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly: 
 7.1 Reserved. 
 7.2 Limitation on Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except: 
 (a) Indebtedness of any
Loan Party pursuant to any Loan Document or any Obligation of the Borrower under any Bank Product Agreement; 
 (b) Indebtedness (i) of
the Borrower to the Parent or any other Loan Party, (ii) of any Guarantor (other than the Parent) to the Borrower, the Parent or any other Loan Party and (iii) of the Parent to any other Loan Party, which Indebtedness shall be deemed to
constitute a Restricted Payment subject to the limitations set forth in Sections 7.6(d), provided, that with respect to each of clauses (i), (ii) and (iii) above, (x) such Indebtedness is evidenced by an intercompany note, in
form and substance reasonably satisfactory to the Collateral Agent, and subject to the first priority security interest of the Collateral Agent, and (y) such intercompany note is delivered (together with an endorsement allonge) to the
Collateral Agent; 
 (c) Indebtedness (including, without limitation, Capital Lease Obligations) secured by Liens permitted by
Section 7.3(g) in an aggregate principal amount not to exceed at any one time outstanding the aggregate amounts contemplated in the Initial Budget for such Indebtedness. 
 (d) Any Indebtedness existing on October 29, 2007, including any Indebtedness owing to the Pre-Petition Term Loan Lenders with respect to the
Pre-Petition Term Loan Documents and any Indebtedness reinstated by the Bankruptcy Court and constituting Reinstated Pre-Petition Revolving Loan Obligations; 
  

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 (e) Guarantee Obligations made in the ordinary course of business by the Parent or any of its
Subsidiaries of obligations of the Borrower or any Guarantor permitted hereunder; 
 (f) Indebtedness with respect to cash management
arrangements in the ordinary course of business of the Parent or any of its Subsidiaries; 
 (g) Indebtedness issued to insurance companies,
or their Affiliates, to finance insurance premiums payable to such insurance companies in connection with insurance policies purchased by a Loan Party in the ordinary course of business; 
 (h) [reserved]; and 
 (i) Indebtedness
arising under any performance or surety bond or arising under any indemnity agreement relating thereto that exists on the Interim Facility Effective Date, and any renewal or replacement thereof so long as the amount of Indebtedness arising
thereunder does not increase in connection with any such renewal or replacement. 
 7.3 Limitation on Liens. Create, incur, assume or
suffer to exist any Lien upon any of its Property, whether now owned or hereafter acquired, except for: 
 (a) (i) Liens for taxes not yet due
or which are being contested in good faith by appropriate proceedings, provided, that adequate reserves with respect thereto are maintained on the books of a Loan Party or its Subsidiaries, as the case may be, in conformity with GAAP and
(ii) Other Statutory Liabilities (including, without limitation, all Other Statutory Liabilities relating to wage claims and unpaid stumpage charges or royalties) that have lien priority or priority of payment over all or any portion of the
Collateral or that are constitute a statutory trust with respect to any portion of the Collateral; 
 (b) carriers’,
warehousemen’s, mechanics’, builders’, materialmen’s, repairmen’s, woodworkers’ or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 30 days or that are
being contested in good faith by appropriate proceedings or as to which payment and enforcement is stayed under any applicable Bankruptcy Code or pursuant to orders of any Bankruptcy Court; provided, that adequate reserves with respect
thereto are maintained in the books of the applicable Loan Party, in conformity with GAAP; 
 (c) pledges or deposits in connection with
workers’ compensation, unemployment insurance and other social security legislation; 
 (d) deposits by or on behalf of the Parent or
any of its Subsidiaries, to secure the performance of bids, trade contracts (other than for the payment of money), leases, statutory obligations, appeal bonds, utilities and other obligations of a like nature incurred in the ordinary course of
business and secure obligations not past due (or as to which payment and enforcement is stayed under any Bankruptcy Code or pursuant to orders of the Bankruptcy Court), so long as the aggregate amount of all such deposits (excluding the deposits
permitted by clause (q) below) at any one time outstanding does not exceed the aggregate amounts contemplated in the Initial Budget for such deposits (or payments in respect of such obligations to the extent that they are contemplated in the
Initial Budget, which may, at the Borrower’s option, be made in the form of deposits); 
  

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 (e) reservations in original grants from the Crown, easements, licenses and other arrangements with
respect to rights-of-way, restrictions, water rights and other similar encumbrances incurred in the ordinary course of business that, in the aggregate, are not substantial in amount, do not secure obligations for the payment of money and which do
not in any case materially detract from the value of the Property subject thereto or materially interfere with the ordinary conduct of the business of the Parent or any of its Subsidiaries; 
 (f) Liens in existence on October 29, 2007 listed on Schedule 7.3(f) (other than Liens described in and clause (k) below); provided, that
to the extent that such Liens secure Indebtedness such Indebtedness shall be permitted by Section 7.2(d), provided, that no such Lien is spread to cover any additional Property after the Interim Facility Effective Date and that the
amount of Indebtedness secured thereby is not increased; 
 (g) Liens securing Indebtedness of the Parent or any of its Subsidiaries incurred
pursuant to Section 7.2(c) to finance the acquisition of fixed or capital assets, provided, that (i) such Liens shall be created within 90 days after the acquisition of such fixed or capital assets, (ii) such Liens do not
at any time encumber any Property other than the Property financed by such Indebtedness, and (iii) the amount of Indebtedness initially secured thereby is not more than 100% of the purchase price of such fixed or capital asset; 
 (h) Liens securing the Obligations; 
 (i)
any interest or title of a lessor under any lease entered into by the Parent or any of its Subsidiaries in the ordinary course of its business and covering only the assets so leased; 
 (j) existing Liens on the assets of the Loan Parties in favor of the Pre-Petition Collateral Agent (x) for the benefit of the Pre-Petition Term Loan
Lenders to secure the Pre-Petition Term Loan Obligations (including any replacement Liens granted pursuant to the Adequate Protection Stipulation), (y) for the benefit of the Pre-Petition Revolving Loan Lenders to secure the Pre-Petition
Revolving Loan Obligations, and (z) any Liens reinstated by the Bankruptcy Court to secure the Reinstated Pre-Petition Revolving Loan Obligations; 
 (k) Liens arising by operation of law consisting of customary and ordinary course rights of setoff upon deposits of cash in favor of banks or other depository institutions in the ordinary course of business;

 (l) Liens on unearned premiums in respect of insurance policies securing insurance premium financing permitted under Section 7.2(g);

 (m) assignments of insurance or condemnation proceeds to landlords (or their mortgagees) pursuant to the terms of any lease and Liens or
rights reserved in any lease for rent or for compliance with the terms of such lease, in each case to the extent made or incurred in the ordinary course of business; 
  

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 (n) deposits with suppliers in the ordinary course of business in an aggregate amount not to exceed the
aggregate amounts contemplated in the Initial Budget for such deposits (or for payments to such suppliers to the extent that they are contemplated in the Initial Budget, which may, at the Borrower’s option, be made in the form of deposits) at
any time; 
 (o) 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; 
 (p) deposits and letters of credit securing cash management arrangements permitted by
Section 7.2(f); 
 (q) obligations in respect of the Carve-Out to the extent provided by any Bankruptcy Court Order; and 
 (r) deposits (excluding the deposits permitted by clause (d) above) by or on behalf of the Parent or any of its Subsidiaries, to secure Indebtedness
permitted by Section 7.2(i). 
 7.4 Limitation on Fundamental Changes. Enter into any merger, consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of all or substantially all of its Property or business, except that: 
 (a) any Subsidiary of the Parent (other than the Borrower) may be merged, amalgamated or consolidated with or into the Borrower (provided, that the Borrower shall be the continuing or surviving corporation) or
with or into any Wholly Owned Guarantor (provided, that (i) such Guarantor shall be the continuing or surviving corporation or (ii) simultaneously with such transaction, the continuing or surviving corporation shall become a
Guarantor and the Borrower shall comply with Section 6.10 in connection therewith); 
 (b) any Subsidiary that is not a Guarantor may be
merged or consolidated with or into any other Subsidiary that is not a Guarantor; 
 (c) any Subsidiary of the Parent may Dispose of any or
all of its assets (upon voluntary liquidation or otherwise) to the Borrower or any Guarantor; 
 (d) any Investment expressly permitted by
Section 7.8 may be structured as a merger, consolidation or amalgamation to the extent that such structuring would not otherwise violate the terms of this Agreement; and 
 (e) the sales required by Section 6.17. 
 7.5 Limitation on Disposition of Property. Dispose of any of its Property (including, without limitation, receivables and leasehold interests), whether now owned or hereafter acquired, or, in the case of any Subsidiary of the Parent,
issue or sell any shares of such Subsidiary’s Capital Stock to any Person, except: 
 (a) the Disposition of obsolete, worn out or
surplus Property (other than surplus real property and other than surplus inventory) in the ordinary course of business (including the abandonment or termination of leasehold interests in the ordinary course of business); 
  

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 (b) the sale of inventory in the ordinary course of business; 
 (c) Dispositions permitted by Section 7.4 (other than clause (e) of Section 7.4); 
 (d) the sale or issuance of any Subsidiary’s Capital Stock to the Borrower or any Guarantor; 
 (e) the Disposition of property or assets from one Loan Party to another Loan Party; provided, that prior to or simultaneously with any such
Dispositions, all actions (including all actions required by the Collateral Agent) shall be taken to insure the continued perfection and priority of the Liens created hereunder and by the Security Documents on such property and assets; 

(f) the Disposition of any assets (other than Capital Stock of Subsidiaries of the Parent); provided, that (i) such sale, lease or other
disposition shall be for Fair Market Value, (ii) the cash consideration to be received in respect thereof shall be not less than 100% of such Fair Market Value and shall not exceed $750,000 with respect to any single transaction or series of
related transactions or $5,000,000 in the aggregate, in each case, without the consent of the Agents, and (iii) the Net Cash Proceeds received from all assets so sold, leased or disposed of are applied to repay the Obligations hereunder in
accordance with Section 2.13; 
 (g) Dispositions of Property constituting investments permitted under Section 7.8 and Dispositions
of Property constituting Restricted Payments permitted by Section 7.6; 
 (h) any Recovery Event; 
 (i) leases or subleases of real property owned or leased by any Loan Party to the extent such real property is not necessary or material to the business
of the Loan Parties, entered into in the ordinary course of such Loan Party’s business in an arms length transaction and provided, that any such lease shall expressly provide, pursuant to terms either (i) acceptable to the
Collateral Agent in its reasonable discretion or (ii) previously provided to the Borrower and approved by the Collateral Agent, in each case, with the effect that such lease, and the tenant’s rights thereunder, are subject and subordinate
in all respects to any Mortgage thereon and to the Lien thereof; 
 (j) Dispositions of cash and Cash Equivalents in the ordinary course of
business and in a manner not otherwise prohibited by the terms of this Agreement or any other Loan Document; 
 (k) assignments of contract
rights to purchase logs and chips in the ordinary course of business consistent with past practice; 
  

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 (l) discounts or forgiveness of accounts receivable in the ordinary course of business or in connection
with collection or compromise thereof (excluding credit memos) made or granted in the ordinary course of business consistent with past practice) in an aggregate amount not to exceed an amount equal to the amount of the deductible under the Loan
Parties’ credit insurance policies then in effect as reduced by any amounts applied to such deductible plus $500,000 in any fiscal year; 
 (m) the sale, lease or other disposition of any portion of the Midway Facility from time to time; provided, that such sale, lease or other disposition shall be for Fair Market Value; and 
 (n) the Dispositions required by Section 6.17. 
 7.6 Limitation on Restricted Payments. Declare or pay any dividend on, or make any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or other
acquisition of, any of its Capital Stock, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of the Parent, the Borrower or any of
their Subsidiaries, or enter into any derivatives or other transaction with any financial institution, commodities or stock exchange or clearinghouse (a “Derivatives Counterparty”) obligating the Parent, the Borrower or any
Subsidiary to make payments to such Derivatives Counterparty as a result of any change in market value of any such Capital Stock (collectively, “Restricted Payments”), except that: 
 (a) any Subsidiary may make Restricted Payments to the Borrower or any Guarantor; 
 (b) the Parent, the Borrower and any of their respective Subsidiaries may make Restricted Payments in the form of such Person’s common stock;
provided, that, in the case of the Borrower and its Subsidiaries, such Restricted Payments shall be made to a Loan Party; and 
 (c)
the Borrower may make distributions to the Parent in the form of loans, advances or dividends (i) to enable the Parent to pay, and the Parent may pay, any taxes that are due and payable by the Parent and its Subsidiaries as part of a
consolidated group, and (ii) to pay corporate overhead expenses, other than amounts payable pursuant to clause (i) above, payable by the Parent and incurred in the ordinary course of business consistent with past practice. 
 7.7 Limitation on Capital Expenditures. Make or commit to make any Capital Expenditure, except Capital Expenditures of the Parent and its
Subsidiaries to the extent contemplated in the Initial Budget. 
 7.8 Limitation on Investments. Make any advance, loan, extension of
credit (by way of guaranty or otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes, debentures or other debt securities of, or any assets constituting an ongoing business from, or make any other investment in, any other
Person (all of the foregoing, “Investments”), except: 
 (a) extensions of trade credit in the ordinary course of business;

  

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 (b) investments in Cash Equivalents; 
 (c) Investments arising in connection with the incurrence of Indebtedness permitted by Section 7.2(b) and (e); 
 (d) Investments (other than those relating to the incurrence of Indebtedness permitted by Section 7.8(c)) by the Parent or any of its Subsidiaries
in (i) the Borrower or any Person that is a Wholly Owned Guarantor or (ii) in the Parent to enable it to make a Restricted Payment permitted by Section 7.6; 
 (e) Investments (including Indebtedness and other obligations) received in connection with the bankruptcy or reorganization of suppliers and customers
and in settlement of delinquent obligations of, and other disputes with, customers and suppliers in the ordinary course of business; and 
 (f) existing Investments described on Schedule 7.8. 
 7.9 Limitation on Optional Payments and Modifications of Debt Instruments,
etc. Amend its Constituent Documents in any manner determined by any of the Agents to be adverse to the Lenders,. 
 7.10 Limitation
on Transactions with Affiliates. Enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property, the rendering of any service or the payment of any management, advisory or similar fees, with any
Affiliate (other than the Parent, the Borrower or any other Loan Party) unless such transaction is (a) otherwise permitted under this Agreement, (b) in the ordinary course of business of the Parent, the Borrower or such Subsidiary, as the
case may be, and (c) upon fair and reasonable terms no less favorable to the Parent, the Borrower or such Subsidiary, as the case may be, than it would obtain in a comparable arm’s length transaction with a Person that is not an Affiliate.
Notwithstanding the foregoing, the Parent, the Borrower and their Subsidiaries may, subject to the approval of the appropriate Bankruptcy Court (i) pay reasonable and customary fees to members of their respective boards of directors,
(ii) pay reasonable compensation and benefits (including, without limitation, permitted incentive stock plans) to officers, (iii) enter into compensation arrangements for officers and other employees of the Parent and its Subsidiaries in
the ordinary course of business, (iv) issue Capital Stock of the Parent to directors and management of the Parent and its Subsidiaries, and (v) make Restricted Payments to the extent permitted by Section 7.6. 
 7.11 Limitation on Sales and Leasebacks. Enter into any arrangement with any Person providing for the leasing by the Parent or any of its
Subsidiaries of real or personal property which has been or is to be sold or transferred by the Parent or such Subsidiary to such Person or to any other Person to whom funds have been or are to be advanced by such Person on the security of such
property or rental obligations of the Borrower or such Subsidiary. 
  

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 7.12 Limitation on Changes in Fiscal Periods. Permit the fiscal year of the Parent or the Borrower
to end on a day other than December 31 or change the Parent’s or the Borrower’s method of determining fiscal quarters. 
 7.13
Limitation on Negative Pledge Clauses. Enter into or suffer to exist or become effective any agreement that prohibits or limits the ability of the Parent or any of its Subsidiaries to create, incur, assume or suffer to exist any Lien upon any
of its Property or revenues, whether now owned or hereafter acquired, to secure the Obligations or, in the case of any guarantor, its obligations under the Guaranty, other than (a) this Agreement and the other Loan Documents, the Pre-Petition
Loan Documents and the Existing Indentures, (b) any agreements governing any purchase money Liens or Capital Lease Obligations otherwise permitted hereby (in which case, any prohibition or limitation shall only be effective against the assets
financed thereby), (c) restrictions in agreements entered into in connection with any Disposition required by Section 6.17 and (d) restrictions by reason of customary provisions restricting assignments, subletting or other transfers
contained in leases, licenses, joint venture agreements and similar agreements entered into in the ordinary course of business; provided, that such restrictions are (i) limited to the property or assets subject to such leases, licenses,
joint venture agreements or similar agreements, as the case may be and (ii) enforceable under applicable law. 
 7.14 Limitation on
Restrictions on Subsidiary Distributions. Enter into or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any Subsidiary to (a) make Restricted Payments in respect of any Capital Stock of such
Subsidiary held by, or pay any Indebtedness owed to, the Parent, the Borrower or any other Subsidiary, (b) make Investments in the Parent, the Borrower or any other Subsidiary or (c) transfer any of its assets to the Parent, the Borrower
or any other Subsidiary, except for such encumbrances or restrictions existing under or by reason of (i) any restrictions existing under the Loan Documents, the Pre-Petition Loan Documents and the Existing Indentures, (ii) any restrictions
with respect to a Subsidiary imposed pursuant to an agreement that has been entered into in connection with the Disposition of all or substantially all of the Capital Stock or assets of such Subsidiary (and any restrictions contained in agreements
entered into in connection with any Disposition required by Section 6.17), (iii) restrictions on transfers of assets subject to Liens permitted by Section 7.3(g) and (iv) customary provisions restricting assignments, subletting
or other transfers contained in leases, licenses, joint venture agreements and similar agreements entered into in the ordinary course of business; provided, that such restrictions are (i) limited to the property or assets subject to such
leases, licenses, joint venture agreements or similar agreements, as the case may be and (ii) enforceable under applicable law. 
 7.15
Limitation on Lines of Business. Enter into any business, either directly or through any Subsidiary, except for those businesses in which the Parent and its Subsidiaries are engaged on the date of this Agreement and those that are reasonably
related thereto; provided, that Pope & Talbot Pulp Sales Europe LLC shall not own any assets with a fair market value in excess of $100,000 in aggregate or incur any liabilities and shall only continue to conduct its business as a
European sales office in a manner consistent with past practice as of the date of this Agreement. 
 7.16 Limitation on Hedge
Agreements. Enter into any Hedge Agreement. 
  

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 7.17 Deposit Accounts and Securities Accounts. Except for the account set forth on Schedule 7.17,
but subject to the terms of Section 6.16(b), maintain any balance in any account at any time for all deposit, checking, operating, securities and other similar accounts of the Loan Parties (other than accounts which are used to support customs
bonds, workers’ compensation obligations, timber purchase contracts, surety and performance bonds, and other similar bonds, in each case to the extent permitted by the terms of this Agreement, which accounts contain an aggregate amount not to
exceed $3,000,000 at any time and other than accounts of the Borrower to the extent that the funds in such accounts are owned by a Governmental Authority) that are not subject to control agreements, in form and substance reasonably satisfactory to
the Agents and in favor of the Administrative Agent, as sub-agent of the Collateral Agent. 
 7.18 Bankruptcy Court Orders; Administrative
Priority; Lien Priority; Payment of Claims. 
 (a) At any time, seek, consent to or suffer to exist any reversal, modification, amendment,
stay or vacation of any of the Bankruptcy Court Orders or the Adequate Protection Stipulation, except for modifications and amendments agreed to by the Agents and the Lenders; 
 (b) at any time, suffer to exist a priority for any administrative expense or unsecured claim against any of the Borrower or the Guarantors (now existing
or hereafter arising of any kind or nature whatsoever, including without limitation any administrative expenses of the kind specified in, or arising or ordered under, Sections 105, 326, 328, 503(b), 506(c), 507(a), 507(b), 546(c) 726 and 1114 of the
US Bankruptcy Code or any super priority claim which is equal or superior to the priority of the Agent and the Lenders in respect of the Obligations, except as provided in Section 11.5 and for the expenses having priority of payment over the
Obligations to the extent set forth in clause “first” of the definition of the term “Agreed Administrative Expense Priorities”; 
 (c) at any time, suffer to exist any Lien on the Collateral having a priority equal or superior to the Lien in favor of the Collateral Agent for the benefit of the Agents and the Lenders in respect of the Collateral,
except for Permitted Priority Liens; and 
 (d) prior to the date on which the Obligations have been paid in full, the Borrower and the
Guarantors shall not pay any administrative expense claims except (i) payments pursuant to sub-clauses (i) and (ii) of clause “first” of the definition of the term “Agreed Administrative Expense Priorities”,
(ii) Obligations due and payable hereunder, and (iii) other administrative expense and professional claims incurred in the ordinary course of the business of the Borrower and the Guarantors or their respective Chapter 11 Cases or their
respective CCAA Proceedings, in each case, to the extent and having the order of priority set forth in the definition of the term “Agreed Administrative Expense Priorities”. 
 7.19 Payments. Make any payment of principal or interest or otherwise on account of any Indebtedness or trade payable incurred prior to the CCAA
Filing Date, other than in accordance with the Initial Budget (after giving effect to the Budget Carryover Amount (and as calculated and applied as set forth in the definition of such term in Section 1.1)) , in each case, after prior written
notice of such payment has been given by the Borrower to the Agents and subject to approval of the Bankruptcy Courts. 
  

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 SECTION 8    EVENTS OF DEFAULT 
 If any of the following events shall occur and be continuing: 
 (a) (i) The Borrower shall fail to pay any principal of any Loan, reimbursement obligations in respect of Letters of Credit or Collateral Agent Advance when due in accordance with the terms hereof, or (ii) the
Borrower shall fail to pay any interest on any Loan or reimbursement obligations in respect of Letters of Credit, or (iii) any Loan Party shall fail to pay any other amount payable hereunder or under any other Loan Document or Bank Product
Agreement, when due in accordance with the terms hereof or thereof; or 
 (b) Any representation or warranty made or deemed made by any Loan
Party herein or in any other Loan Document or that is contained in any certificate, document or financial or other statement furnished by it at any time under or in connection with this Agreement or any such other Loan Document shall prove to have
been inaccurate in any material respect (except that such materiality qualifier shall not be applicable to any representations and warranties that are already qualified or modified by materiality in the text thereof) on or as of the date made or
deemed made or furnished; or 
 (c) (i) Any Loan Party shall default in the observance or performance of any agreement contained in
Sections 6.1, 6.2 (other than Sections 6.2(e) and 6.2(f)), 6.4, 6.5, 6.6, 6.7(a), 6.11, 6.12, 6.13, 6.14, 6.17 or Section 7, in Section 6 of any Pledge and Security Agreement, or in Section 6 of any Canadian General Security
Agreement, or (ii) an “Event of Default” under and as defined in any Mortgage shall have occurred and be continuing; or 
 (d)
Any Loan Party shall default in the observance or performance of any agreement contained in Sections 6.2(e) or 6.2(f), and such default shall continue unremedied for a period of 15 days; or 
 (e) Any Loan Party shall default in the observance or performance of any other agreement contained in this Agreement or any other Loan Document (other
than as provided in paragraphs (a) through (d) of this Section), and such default shall continue unremedied for a period of 30 days; or 
 (f) Reserved; or 
 (g) Reserved; or 
 (h)(i) any Loan Party shall engage in any nonexempt prohibited transaction described in Section 406 of ERISA or Section 4975 of the Code
involving any Plan that could reasonably be expected to result in liability to the Borrower or any Commonly Controlled Entity in excess of $1,000,000, (ii) any “accumulated funding deficiency” (as defined in Section 302 of
ERISA), whether or not waived, shall exist with respect to any Single Employer Plan that could reasonably be expected to result in liability to the Borrower or any Commonly Controlled Entity in excess of $1,000,000, or any Lien in favor of the PBGC
or a Single Employer Plan shall arise 

  

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on the assets of the Borrower or any Commonly Controlled Entity, (iii)(A) a Reportable Event shall occur with respect to any Single Employer Plan that could
reasonably be expected to result in liability to the Borrower or any Commonly Controlled Entity in excess of $1,000,000, or (B) the PBGC shall commence proceedings under Section 4042 of ERISA to have a trustee appointed, or a trustee shall
be appointed under Section 4042 of ERISA, to administer or to terminate any Single Employer Plan, which Reportable Event or commencement of proceedings or appointment of a trustee is reasonably likely to result in the termination of such Single
Employer Plan for purposes of Title IV of ERISA, (iv) any Single Employer Plan shall terminate, which termination could reasonably be expected to result in liability to the Borrower or any Commonly Controlled Entity in excess of $1,000,000,
(v) the Borrower or any Commonly Controlled Entity shall incur any liability in connection with a withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan that could reasonably be expected to exceed $1,000,000,
(vi) the Borrower, or any of its Subsidiaries or any Commonly Controlled Entity shall be required to make during any fiscal year of the Borrower payments pursuant to any employee welfare benefit plan (as defined in Section 3.1 of ERISA)
that provides benefits to retired employees (or their dependents) that, in the aggregate, would exceed $2,500,000, with respect to such fiscal year, (vii) the Borrower, or any of its Subsidiaries or any Commonly Controlled Entity shall be
required to make during any fiscal year of the Borrower contributions to any defined benefit pension plan subject to Title IV of ERISA (including any Multiemployer Plan) that, in the aggregate, would exceed $3,000,000, with respect to such fiscal
year, (viii) any other similar event or condition shall occur or exist with respect to a Plan, a Canadian Benefit Plan or Canadian Pension Plan if such event or condition would reasonably be expected to have a Material Adverse Effect; or
(ix) a Pension Plan Termination Event occurs or any Loan Party fails to make a required contribution to or payment under any Canadian Pension Plan when due; or 
 (i) one or more judgments, orders, awards or decrees (or any settlement of any claim that, if breached, results in a judgment, order, award or decree) shall be entered against the Parent or any of its Subsidiaries
involving for the Parent and its Subsidiaries, taken as a whole, a liability (not paid or fully covered by insurance as to which the relevant insurance company has acknowledged coverage or as to which payment and enforcement is not stayed under any
Bankruptcy Code or pursuant to orders of the Bankruptcy Court) of $100,000, or more and shall remain unsatisfied, and (i) enforcement proceedings shall have been commenced by any creditor upon any such judgment, order, award or settlement,
(ii) there shall be a period of 30 consecutive days after entry thereof during which a stay of enforcement of any such judgment, order, award or settlement, by reason of a pending appeal or otherwise, shall not be in effect, or (iii) at
any time during which a stay of enforcement of any such judgment, order, award or settlement, by reason of a pending appeal or otherwise, is in effect, such judgment, order, award or settlement is not bonded in the full amount of such judgment,
order, award or settlement; or 
 (j) any of the Security Documents shall cease, for any reason (other than by reason of the express release
thereof pursuant to Section 9.12), to be in full force and effect, or any Loan Party or any Affiliate of any Loan Party shall so assert, or any Lien on Property with an aggregate value of $100,000 or more created by any of the Security
Documents shall cease to be enforceable and of the same effect and priority purported to be created thereby, subject in the case of priority, to the Carve-Out; or 
  

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 (k) the Guaranty shall cease, for any reason (other than by reason of the express release thereof
pursuant to Section 9.12), to be in full force and effect or any Loan Party or any Affiliate of any Loan Party shall so assert; or 
 (l) the Parent, the Borrower or any of their Subsidiaries is enjoined, restrained or in any way prevented (including, without limitation, by expropriation, confiscation, involuntary purchase, sale, or other taking, whether or not with
compensation, of all or substantially all of the property and assets of the Parent, the Borrower and their Subsidiaries, taken as a whole) by the order of any court or any Governmental Authority from conducting all or any material part of the
business of the Parent, the Borrower and their Subsidiaries, taken as a whole, for more than 15 days; or 
 (m) any strike, lockout or
labor dispute, which causes, for more than 15 days, the cessation or substantial curtailment of revenue producing activities of the Parent, the Borrower and their Subsidiaries, taken as a whole, if any such strike, lockout or labor dispute
would reasonably be expected to result in a Material Adverse Effect; or 
 (n) any Change of Control shall occur; or 
 (o) an order with respect to any of the Chapter 11 Cases shall be entered by any Bankruptcy Court appointing, or any Loan Party shall file an application
for an order with respect to any Chapter 11 Case seeking the appointment of, (i) a trustee under Section 1104 of the US Bankruptcy Code, or (ii) an examiner with enlarged powers relating to the operation of the business (powers
beyond those set forth in Section 1106(a)(3) and (4) of the US Bankruptcy Code) under Section 1106(b) of the US Bankruptcy Code; or 
 (p) (i) an order with respect to the Chapter 11 Cases shall be entered by the US Bankruptcy Court converting any such Chapter 11 Case to a Chapter 7 case or (ii) a trustee in bankruptcy, receiver, receiver and manager or interim
receiver is appointed of any Canadian Loan Party or any material assets of any Canadian Loan Party; or 
 (q) an order shall be entered by
any Bankruptcy Court confirming a plan of reorganization in any of the Chapter 11 Cases or sanctioning a plan of compromise or arrangement in the CCAA Proceedings which does not (i) contain a provision for termination of the Total Commitment
and payment in full in cash of all Obligations of the Borrower hereunder and under the other Loan Documents and all Pre-Petition Term Loan Obligations and the termination or cash collateralization of the outstanding Letters of Credit on or before
the effective date of such plan or plans upon entry thereof and (ii) in the case of the Chapter 11 Cases, provide for the continuation of the Liens and security interests granted to the Collateral Agent for the benefit of the Agents and the
Lenders and priorities until such plan effective date; or 
 (r) an order shall be entered by any Bankruptcy Court dismissing any of the
Chapter 11 Cases or the CCAA Proceedings which does not contain a provision for termination of the Total Commitment, and payment in full in cash of all Obligations of the Borrower hereunder and under the other Loan Documents and all
Pre-Petition Term Loan Obligations upon entry thereof and the termination or cash collateralization of outstanding Letters of Credit in an amount equal to 105% of the aggregate undrawn amount of all outstanding Letters of Credit; or 
  

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 (s) an order with respect to any of the Chapter 11 Cases or the CCAA Proceedings shall be entered by a
Bankruptcy Court without the express prior written consent of the Agents and the Lenders, (i) to revoke, reverse, stay, modify, supplement or amend the Loan Documents or any of the Bankruptcy Court Orders, (ii) to permit any administrative
expense or any claim (now existing or hereafter arising, of any kind or nature whatsoever) to have administrative priority as to any Borrower or any Guarantor equal or superior to the priority of the Agents and the Lenders in respect of the
Obligations, except for allowed administrative expenses having priority over the Obligations to the extent set forth in the definition of the term “Agreed Administrative Expense Priorities”, or (iii) to grant or permit the grant of a
Lien on the Collateral other than a Permitted Lien; or 
 (t) an order shall be entered by any Bankruptcy Court that is not stayed pending
appeal granting relief from the automatic stay or the Stay of Proceedings (i) to any creditor of any Loan Party with respect to any claim in an amount equal to or exceeding $100,000 in the aggregate and (ii) with respect to any Lien of or
the granting of any Lien on any Collateral to any environmental or regulatory agency or authority, which would have a Material Adverse Effect; or 
 (u) the expiry or termination of the Stay of Proceedings without payment in full in cash of all Obligations of the Borrower hereunder and under the other Loan Documents and all Pre-Petition Term Loan Obligations upon expiry or termination
thereof and the termination or cash collateralization of outstanding Letters of Credit in an amount equal to 105% of the aggregate undrawn amount of all outstanding Letters of Credit and cash collateral in an amount determined by the Administrative
Agent in its Permitted Discretion as the amount necessary to secure the Loan Parties Obligations in respect of the then outstanding Bank Products; or 
 (v) the entry of an order in the CCAA Proceedings or the Chapter 11 Cases avoiding or requiring repayment of any portion of the payments made on account of the Obligations owing under this Agreement or the other Loan
Documents; or 
 (w) (i) any Loan Party shall attempt to invalidate, reduce or otherwise impair the Liens or security interests of any
Agent and/or the Lenders, claims or rights against such Person, or to subject any Collateral to assessment pursuant to Section 506(c), 552 or 105 of the US Bankruptcy Code, (ii) any Lien or security interest created by this Agreement or
the Bankruptcy Court Orders securing all or any part of the Collateral with a value in excess of $1,000,000 in the aggregate shall, for any reason, cease to be valid or (iii) any action is commenced by any Loan Party which contests the
validity, perfection or enforceability of any of the Liens and security interests of any Agent and/or the Lenders created by any of the Bankruptcy Court Orders, this Agreement, any Mortgage, or any other Security Document; or 
 (x) an application for any of the orders described in clauses (o) through (w) above shall be made by a Person other than the Borrower and such
application is not contested by the Borrower in good faith and the relief requested is granted in an order that is not stayed pending appeal; or 
  

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 (y) the failure of any Loan Party to perform any of its obligations under any of the orders of any
Bankruptcy Court made in the CCAA Proceedings or the Chapter 11 Cases; or 
 (z) the bringing of a motion, or the execution of a written
agreement, or the filing of any plan of compromise or arrangement or the issuance of any information circular or other comparable document with respect thereto by the Borrower in the CCAA Proceedings or the Chapter 11 Cases: (i) to obtain
additional “debtor-in-possession” financing not otherwise permitted pursuant to this Agreement; (ii) to grant any Lien other than Permitted Liens upon or affecting any Collateral; (iii) except as provided in the Bankruptcy Court
Orders, to use cash collateral of Agents without the prior written consent of the Agents and the Lenders; or (iv) any other action or actions materially adverse to the Agents and the Lenders or their rights and remedies hereunder or their
interest in the Collateral; or 
 (aa) a Material Adverse Deviation shall have occurred; or 
 (bb) any provision of any Loan Document shall at any time for any reason (other than pursuant to the express terms thereof) cease to be valid and binding
on or enforceable against any Loan Party intended to be a party thereto, or the validity or enforceability thereof shall be contested by any party thereto, or a proceeding shall be commenced by any Loan Party or any Governmental Authority having
jurisdiction over any of them, other than the US Trustee for the Chapter 11 Cases, seeking to establish the invalidity or unenforceability thereof, or any Loan Party shall deny in writing that it has any liability or obligation purported to be
created under any Loan Document; 
 then, and in any such event, any or all of the following actions may be taken: with the consent of the Majority Revolving
Credit Facility Lenders or the Majority Facility Lenders in respect of the Term Loan B Facility, the Collateral Agent may, or upon the request of the Majority Revolving Credit Facility Lenders or the Majority Facility Lenders in respect of the Term
Loan B Facility, the Collateral Agent shall, by notice to the Borrower, declare without further order of, or application to, any Bankruptcy Court (i) the Loans hereunder (with accrued interest thereon), and all other amounts owing under this
Agreement and the other Loan Documents (including, without limitation, all amounts of obligations in respect of Letters of Credit, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required
thereunder) to be due and payable forthwith, whereupon the same shall immediately become due and payable, and (ii) the Revolving Credit Commitments to be terminated forthwith (whereupon the Revolving Credit Commitments shall immediately
terminate) (the date on which any of the actions described in the foregoing clauses (i) and (ii) are taken being referred to herein as the “Acceleration Date”). In the case of all Letters of Credit with respect to which
presentment for honor shall not have occurred at the time of an acceleration pursuant to this paragraph, the Borrower shall at such time deposit in a cash collateral account opened by the Administrative Agent an amount in immediately available funds
equal to 105% of the aggregate then undrawn and unexpired amount of such Letters of Credit (and the Borrower hereby grants to the Administrative Agent, for the ratable benefit of the Secured Parties, a continuing security interest in all amounts at
any time on deposit in such cash collateral account to secure the 

  

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undrawn and unexpired amount of such Letters of Credit and all other Obligations). If at any time the Administrative Agent determines that any funds held in
such cash collateral account are subject to any right or claim of any Person other than the Collateral Agent and the Secured Parties or that the total amount of such funds is less than the aggregate undrawn and unexpired amount of outstanding
Letters of Credit, the Borrower shall, forthwith upon demand by the Administrative Agent, pay to the Collateral Agent, as additional funds to be deposited and held in such cash collateral account, an amount equal to the excess of (a) such
aggregate undrawn and unexpired amount over (b) the total amount of funds, if any, then held in such cash collateral account that the Administrative Agent determines to be free and clear of any such right and claim. Amounts held in such cash
collateral account shall be applied by the Administrative Agent to the payment of drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall have expired or been fully drawn upon, if any, shall
be applied to repay other obligations of the Borrower hereunder and under the other Loan Documents. After all such Letters of Credit shall have expired or been fully drawn upon, all reimbursement obligations in respect of Letters of Credit shall
have been satisfied and all other obligations of the Borrower hereunder and under the other Loan Documents shall have been paid in full, the balance, if any, in such cash collateral account shall be returned to the Borrower (or such other Person as
may be lawfully entitled thereto). With respect to the Revolver Priority Collateral, the Collateral Agent shall not be required to exercise such enforcement rights and remedies so long as the Collateral Agent shall irrevocably appoint the
Administrative Agent, in writing, as an agent of the Collateral Agent for purposes of exercising such enforcement rights and remedies with respect to the Revolver Priority Collateral. All such actions shall be taken by the Collateral Agent or the
Administrative Agent, as applicable, to realize a commercially reasonable value from the Collateral within a commercially reasonable time. For the avoidance of doubt, the Administrative Agent shall have the benefit of the provisions of
Section 9.3 in acting as an appointee of the Collateral Agent hereunder. 
 SECTION 9    THE AGENTS; THE
ARRANGER 
 9.1 Appointment. Each Lender hereby irrevocably designates and appoints the Agents as the agents of such Lender under this
Agreement and the other Loan Documents, and each Lender irrevocably authorizes each Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents (including, but without limitation, to
make the Loans and Collateral Agent Advances, for such Agent or on behalf of the applicable Lenders as provided in this Agreement or any other Loan Document) and to exercise such powers and perform such duties as are expressly delegated to such
Agent by the terms of this Agreement and the other Loan Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, no Agent shall have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan
Document or otherwise exist against any Agent. 
 9.2 Delegation of Duties. Each Agent may execute any of its duties under this
Agreement and the other Loan Documents by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No Agent shall be responsible for the negligence or misconduct of any
agents or attorneys-in-fact selected by it with reasonable care. 
  

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 9.3 Exculpatory Provisions. Neither the Arranger, any Agent nor any officers, directors,
employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement or any other Loan Document (except to the extent that
any of the foregoing are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted solely and proximately from its or such Person’s own gross negligence or willful misconduct) or (ii) responsible in
any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other
document referred to or provided for in, or received by the Arranger, the Syndication Agent, or the Agents under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party to perform its obligations hereunder or thereunder. The Agents shall not be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party. 
 9.4 Reliance by Agents. Each Agent shall be entitled to rely, and shall be fully protected in relying, upon any instrument, writing, resolution,
notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including, without limitation, counsel to the Loan Parties), independent accountants and other experts selected by such Agent. The Agents may deem and treat the payee (or the registered assigns) of
any Note as the owner thereof for all purposes unless such Note shall have been transferred in accordance with Section 10.6 and all actions required by such Section in connection with such transfer shall have been taken. Each Agent shall be
fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders (or, if so specified by this Agreement, all Lenders or any
other instructing group of Lenders specified by this Agreement) as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or
continuing to take any such action. Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if so specified
by this Agreement, all Lenders or any other instructing group of Lenders specified by this Agreement), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the
Loans. 
 9.5 Notice of Default. No Agent shall be deemed to have knowledge or notice of the occurrence of any Default or Event of
Default hereunder unless such Agent shall have received notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. In the event that
any Agent shall receive such a notice, such Agent shall notify the Administrative Agent who, 

  

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promptly upon receipt of such notification, shall give notice thereof to the Lenders. The Collateral Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Majority Revolving Credit Facility Lenders or the Majority Facility Lenders in respect of the Term Loan B Facility (or, if so specified by this Agreement, all Lenders or any other
instructing group of Lenders specified by this Agreement); provided, that (i) unless and until the Collateral Agent shall have received such directions or (ii) subject to Section 8, if the Collateral Agent shall receive
conflicting directions, the Collateral Agent may (but shall not be obligated to) take such action, or refrain from taking such action with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders.

 9.6 Non Reliance on the Arranger, the Syndication Agent, the Agents and Other Lenders. Each Lender expressly acknowledges that
neither the Arranger, the Syndication Agent, any of the Agents nor any of their respective officers, directors, employees, agents, attorneys and other advisors, partners, attorneys-in-fact or affiliates have made any representations or warranties to
it and that no act by any Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate of a Loan Party, shall be deemed to constitute any representation or warranty by the Arranger or any Agent to any Lender. Each
Lender represents to the Agents, the Syndication Agent and the Arranger that it has, independently and without reliance upon the Arranger, the Syndication Agent, any Agent or any other Lender, and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates and made its own decision to make its Loans (and in
the case of any the Issuing Lender, to issue its Letters of Credit) hereunder and enter into this Agreement. Each Lender also represents that it will, independently and without reliance upon the Arranger, the Syndication Agent, any Agent or any
other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, none of the Arranger, the Syndication Agent or any Agent shall have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a Loan Party that may come into the possession of the Arranger, the Syndication Agent
or any Agent or any of its officers, directors, employees, agents, attorneys and other advisors, partners, attorneys-in-fact or affiliates. 
 9.7 Indemnification. The Lenders agree to indemnify the Arranger, the Syndication Agent and each Agent in its capacity as such (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do
so), ratably according to their respective Aggregate Exposure Percentages in effect on the date on which indemnification is sought under this Section (or, if indemnification is sought after the date upon which the Commitments shall have terminated
and the Loans shall have been paid in full, ratably in accordance with such Aggregate Exposure Percentages immediately prior to such date), for, and to save the Arranger, the Syndication Agent and each Agent harmless from and against, any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or 

  

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disbursements of any kind whatsoever that may at any time (including, without limitation, at any time following the payment of the Loans) be imposed on,
incurred by or asserted against the Arranger, the Syndication Agent or such Agent in any way relating to or arising out of, the Commitments, this Agreement, any of the other Loan Documents, or any documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby or any action taken or omitted by the Arranger, the Syndication Agent or such Agent under or in connection with any of the foregoing; provided, that no Lender shall be liable for the
payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have
resulted solely and proximately from the Arranger’s or such Agent’s gross negligence or willful misconduct. The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder. 
 9.8 Arranger, the Syndication Agent and Agents in their Individual Capacities. The Arranger, the Syndication Agent and each Agent and its
affiliates may make loans to, accept deposits from and generally engage in any kind of business with any Loan Party as though the Arranger, the Syndication Agent or such Agent were not an Arranger or a Syndication Agent or an Agent. With respect to
its Loans made or renewed by it and with respect to any Letter of Credit issued or participated in by it, the Arranger, the Syndication Agent and each Agent shall have the same rights and powers under this Agreement and the other Loan Documents as
any Lender and may exercise the same as though it were not an Arranger or a Syndication Agent or an Agent, and the terms “Lender” and “Lenders” shall include the Arranger, the Syndication Agent, and the Agents in their individual
capacities. 
 9.9 Successor Agent. The Administrative Agent, the Collateral Agent and the Term Loan B Agent may resign as such agent
upon 30 days’ notice (or such shorter notice as the Required Lenders may agree) to the Lenders and the Borrower. If the Administrative Agent, Collateral Agent or the Term Loan B Agent shall resign as Administrative Agent, Collateral Agent
or Term Loan B Agent, respectively, under this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall (unless an Event of Default under
Section 8(a) with respect to the Borrower shall have occurred and be continuing) be subject to approval by the Borrower (which approval shall not be unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights,
powers and duties of the Administrative Agent, Collateral Agent or Term Loan B Agent, as applicable, and the terms “Administrative Agent”, “Collateral Agent” and “Term Loan B Agent”, as applicable, shall mean such
successor agent effective upon such appointment and approval, and the former Administrative Agent’s, Collateral Agent’s or Term Loan B Agent’s, as applicable, rights, powers and duties as Administrative Agent, Collateral Agent or Term
Loan B Agent, respectively, shall be terminated, without any other or further act or deed on the part of such former Administrative Agent, Collateral Agent or Term Loan B Agent, as applicable, or any of the parties to this Agreement or any holders
of the Loans or issuers of Letters of Credit. If no successor agent has accepted appointment as Administrative Agent, Collateral Agent or Term Loan B Agent, as applicable, by the date that is 30 days following a retiring Administrative
Agent’s, Collateral Agent’s or Term Loan B Agent’s, as applicable, notice of resignation, the retiring Administrative Agent’s, Collateral Agent’s or Term Loan B Agent’s, as applicable, resignation shall nevertheless
thereupon become effective, and the Lenders shall assume and perform all of the duties of the Administrative Agent, 

  

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Collateral Agent or Term Loan B Agent, as applicable, hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for
above. After any retiring Agent’s resignation as 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 Agent under this Agreement and the other Loan Documents.

 9.10 Authorization to Release Liens and Guarantees. The Collateral Agent is hereby irrevocably authorized by each of the Lenders to
effect any release of Liens or guarantee obligations contemplated by Section 9.12. 
 9.11 Reserved. 
 9.12 Collateral Matters. 
 (a) The
Collateral Agent may from time to time make such disbursements and advances (“Collateral Agent Advances”) which the Collateral Agent, in its sole discretion, deems necessary or desirable to preserve, protect, prepare for sale or
lease or dispose of the Collateral or any portion thereof, to enhance the likelihood or maximize the amount of repayment by the Borrower of the Loans, contingent reimbursement obligations with respect to outstanding Letters of Credit, and other
Obligations or to pay any other amount chargeable to the Borrower pursuant to the terms of this Agreement, including, without limitation, costs, fees and expenses as described in Section 10.5. The Collateral Agent Advances shall be repayable on
demand and be secured by the Collateral. The Collateral Agent Advances shall constitute Obligations hereunder which may be charged to the Loan Account. The Collateral Agent shall notify each Lender and the Borrower in writing of each such Collateral
Agent Advance, which notice shall include a description of the purpose of such Collateral Agent Advance. Without limitation to its obligations pursuant to Section 9.7, each Lender agrees that it shall make available to the Collateral Agent,
upon the Collateral Agent’s demand, in Dollars in immediately available funds, the amount equal to such Lender’s Pro Rata Share of each such Collateral Agent Advance. If such funds are not made available to the Collateral Agent by such
Lender, the Collateral Agent shall be entitled to recover such funds on demand from such Lender, together with interest thereon for each day from the date such payment was due until the date such amount is paid to the Collateral Agent, at the
Federal Funds Effective Rate for three Business Days and thereafter at the rate in effect for Term Loans that are Base Rate Loans. 
 (b) The
Lenders hereby irrevocably authorize the Collateral Agent, at its option and in its sole discretion (without notice to, or vote or consent of any other Agent, any Lender or any affiliate of any Lender that is a party to any Bank Product Agreement),
to release any Lien on any Collateral and to release any guarantee obligations of any Person (i) upon the termination of the Commitments and payment and satisfaction in full by Borrower of all Obligations, (ii) constituting property being
sold or disposed of if a release is required or desirable in connection therewith and if the Borrower certifies to the Collateral Agent that the sale or disposition is permitted under this Agreement or the other Loan Documents and that the proceeds
thereof will be applied as required under this Agreement (and the Collateral Agent may rely conclusively on any such certificate, without further inquiry), or (iii) constituting property not then or at any time previously owned by a Loan Party
or leased by a Loan Party under a lease that has expired or is terminated in a transaction permitted under this Agreement. Upon request by the Collateral Agent at any time, the Lenders will confirm in writing the Collateral Agent’s
authority to release particular types or items of Collateral pursuant to this Section 9.12(b). 
  

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 (c) Without in any manner limiting the Collateral Agent’s authority to act without any specific or
further authorization or consent by the Lenders (as set forth in Section 9.12(b)), each Lender agrees to confirm in writing, upon request by the Collateral Agent, the authority to release Collateral conferred upon the Collateral Agent under
Section 9.12(b). If so requested, upon receipt by the Collateral Agent of confirmation from the Lenders of its authority to release any particular item or types of Collateral, and upon prior written request by any Loan Party, the Collateral
Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such documents as may be necessary to evidence the release of the Liens granted to the Collateral Agent for the benefit of the Lenders upon such Collateral;
provided, however, that (i) the Collateral Agent shall not be required to execute any such document on terms which, in the Collateral Agent’s opinion, would expose the Collateral Agent to liability or create any obligations
or entail any consequence other than the release of such Liens without recourse or warranty, and (ii) such release shall not in any manner discharge, affect or impair the Obligations or any Lien upon (or obligations of any Loan Party in respect
of) all interests in the Collateral retained by any Loan Party. 
 (d) Notwithstanding anything to the contrary contained herein or any other
Loan Document (i) when all Obligations (other than obligations in respect of any Bank Product Agreement) have been paid in full, all Commitments have terminated or expired and no Letter of Credit shall be outstanding (other than any Letter of
Credit that has been cash collateralized in accordance with the terms of this Agreement), upon request of the Borrower, the Collateral Agent shall (without notice to, or vote or consent of, any Lender, or any affiliate of any Lender that is a party
to any Bank Product Agreements) take such actions as shall be required to release its security interest in all Collateral, and to release all guarantee obligations provided for in any Loan Document, whether or not on the date of such release there
may be outstanding Obligations in respect of Bank Product Agreements, and (ii) if any Loan Party Disposes of any Collateral in a transaction not prohibited by this Agreement or the other Loan Documents, upon request of the Borrower, the
Collateral Agent shall (without notice to, or vote or consent of, any Lender, or any affiliate of any Lender that is a party to any Bank Product Agreements) take such actions as shall be required to release its security interest in the Collateral
being Disposed of (including all proceeds thereof other than Net Cash Proceeds required to be applied to prepay the Obligations pursuant to Section 2.13) and release any guarantee obligations of any Person being Disposed of to the extent that
any such Disposition of Collateral results in the Disposition of a Guarantor, in each case if the Borrower certifies to the Collateral Agent that the Disposition is permitted under this Agreement or the other Loan Documents and that the Net Cash
Proceeds thereof will be applied as required under this Agreement (and the Collateral Agent may rely conclusively on any such certificate, without further inquiry). Any such release of guarantee obligations shall be deemed subject to the provision
that such guarantee obligations shall be reinstated if after such release any portion of any payment in respect of the Obligations guaranteed thereby shall be rescinded or must otherwise be restored or returned upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower or any Guarantor or any substantial
part of its property, or otherwise, all as though such payment had not been made. 
  

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 (e) The Collateral Agent shall have no obligation whatsoever to any Lender to assure that the Collateral
exists or is owned by the Loan Parties or is cared for, protected or insured or has been encumbered or that the Lien granted to the Collateral Agent pursuant to this Agreement or any other Loan Document has been properly or sufficiently or lawfully
created, perfected, protected or enforced or is entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and
powers granted or available to the Collateral Agent in this Section 9.12 or in any other Loan Document, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Collateral Agent may
act in any manner it may deem appropriate, in its sole discretion, given the Collateral Agent’s own interest in the Collateral as one of the Lenders and that the Collateral Agent shall have no duty or liability whatsoever to any other Lender,
except as otherwise provided herein. 
 9.13 Agency for Perfection. Each Agent and each Lender hereby appoints each other Agent and
each other Lender as agent and bailee for the purpose of perfecting the security interests in and liens upon the Collateral in assets which, in accordance with Article 9 of the UCC, the PPSA or other applicable law, can be perfected only by
possession or control (or where the security interest of a secured party with possession or control has priority over the security interest of another secured party) and each Agent and each Lender hereby acknowledges that it holds possession of or
otherwise controls any such Collateral for the benefit of the Agents and the Lenders as secured party. Should any Agent (other than the Collateral Agent) or any Lender obtain possession or control of any such Collateral, such Agent or such Lender
shall notify the Collateral Agent thereof, and, promptly upon the Collateral Agent’s request therefor shall deliver such Collateral to the Collateral Agent or in accordance with the Collateral Agent’s instructions. In addition, the
Collateral Agent shall also have the power and authority hereunder to appoint such other sub-agents as may be necessary or required under applicable law or otherwise to perform its duties and enforce its rights with respect to the Collateral and
under the Loan Documents. Each Loan Party by its execution and delivery of this Agreement hereby consents to the foregoing. 
 9.14
Withholding Tax. (a) To the extent required by any applicable law, the Administrative Agent may withhold from any interest payment to any Lender an amount equivalent to any applicable withholding tax. 
 (b) If (i) a Loan Party requests a Lender or Transferee to file a certificate or document pursuant to Section 2.22(e) establishing an exemption
from, or reduction of, Non-Excluded Taxes or Other Taxes, (ii) such Lender or Transferee is legally able to deliver such certificate or document at the time of such request and complies with the Loan Party’s request and (iii) the
Internal Revenue Service, the Canada Revenue Agency or any authority of the United States of America, Canada or other jurisdiction asserts a claim that the Administrative Agent did not properly withhold tax from amounts paid to or for the account of
any Lender because (a) the appropriate form was not properly executed, or (b) such Lender failed to notify the Administrative Agent of a change in circumstances which rendered the information contained in such form with respect to such
Lender inaccurate or incorrect, such Lender shall indemnify the Administrative Agent fully for all amounts paid, directly or indirectly, by the Administrative Agent as tax, including penalties, additions to tax and interest. 
  

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 (c) If any Lender sells, assigns, grants a participation in, or otherwise transfers its rights under this
Agreement, the purchaser, assignee, participant or transferee, as applicable, shall comply and be bound by the terms of this Section 9.14. If any Lender grants a participation in its rights under this Agreement, the participant shall comply
with Section 2.22(e) at the time such participant seeks to obtain the benefits of Section 2.22. 
 9.15 Bank Product
Provider. Each Bank Product Provider shall be deemed a party hereto for purposes of any reference in a Loan Document to the parties for whom the Agents are acting; it being understood and agreed that the rights and benefits of a Bank Product
Provider under the Loan Documents consist exclusively of a Bank Product Provider’s right to share in payments and collections out of the Collateral as more fully set forth herein. In connection with any distribution of such payments and
collections, the Agents shall be entitled to assume that no amounts are due to any Bank Product Provider unless such Bank Product Provider has notified the Administrative Agent in writing of the amount of any such liability owed to it prior to such
distribution. 
 9.16 USA Patriot Act. Each Lender that is subject to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act. 
 SECTION 10    MISCELLANEOUS 
 10.1 Amendments and Waivers. Neither this
Agreement or any other Loan Document, nor any terms hereof or thereof may be amended, supplemented or modified except in accordance with the provisions of this Section 10.1. The Required Lenders and each Loan Party which is party to the
relevant Loan Document may, or (with the consent of the Required Lenders) the Collateral Agent and each Loan Party which is party to the relevant Loan Document may, from time to time, (a) enter into written amendments, supplements or
modifications hereto and to the other Loan Documents (including amendments and restatements hereof or thereof) for the purpose of adding any provisions to this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders
or of the Loan Parties hereunder or thereunder or (b) waive, on such terms and conditions as may be specified in the instrument of waiver, any of the requirements of this Agreement or the other Loan Documents or any Default or Event of Default
and its consequences; provided, however, that no such waiver and no such amendment, supplement or modification shall: 
 (i) forgive the principal amount or extend the final scheduled date of maturity of any Loan or reimbursement obligations in respect of Letters of Credit, reduce the stated rate of any interest or fee payable hereunder (except the waiver of
any applicable post-default increase in interest rates in the case where the waiver of the breach giving rise to the post-default increase in the interest rate can be effective with the consent of the Required Lenders of this Agreement shall not
constitute a reduction in the rate of interest or fees for purposes of this clause (i)) or extend the scheduled date of any payment thereof, or increase the amount or extend the expiration date of any Commitment of any Lender, or permit an Interest
Period with a duration in excess of six months, in each case without the consent of each Lender directly affected thereby; 
  

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 (ii) amend, modify or waive any provision of this Section or reduce any percentage
specified in the definition of Required Lenders, consent to the assignment or transfer by the Borrower or any Loan Party of any of its rights and obligations under this Agreement and the other Loan Documents, release all or substantially all of the
Collateral or release all or substantially all of the Guarantors from their guarantee obligations under the Guaranty, in each case without the consent of all Lenders; 
 (iii) reduce the percentage specified in the definition of Majority Facility Lenders with respect to any Facility without the written
consent of all Lenders under such Facility; 
 (iv) amend, modify or waive any provision of Section 9 or any other
provision affecting the rights, duties and obligations of the Arranger or any Agent without the consent of the Arranger or Agent directly affected thereby; 
 (v) amend, modify or waive any provision of Section 2.7 or 2.8 without the written consent of the Swing Line Lender; 
 (vi) amend, modify or waive any provision of Section 2.13 (or any definition solely as used therein) or Section 2.19 without the written consent of the Majority Facility Lenders with respect to the Term Loan
B Facility and the Majority Revolving Facility Lenders; 
 (vii) amend, modify or waive the pro rata provisions of
Section 2.19 without the consent of each Lender directly affected thereby; 
 (viii) amend, modify or waive any provision
of Section 3 without the consent of each Lender; 
 (ix) impose restrictions on assignments and participations that are
more restrictive than, or additional to, those set forth in Section 10.6 without the consent of each Lender; or 
 (x)
release or subordinate the super priority claim status of the Obligations (except as otherwise permitted by this Agreement). 
 Any such waiver and any such
amendment, supplement or modification shall apply equally to each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the Arranger, the Agents and all future holders of the Loans. In the case of any waiver, the Loan Parties, the
Lenders, the Arranger and the Agents shall be restored to their former position and rights hereunder and under the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver
shall extend to any subsequent or other Default or Event of Default, or impair any right consequent thereon. Any such waiver, amendment, supplement or modification shall be effected by a written instrument signed by the parties required to sign
pursuant to the foregoing provisions of this Section; provided, that delivery of an executed signature page of any such instrument by facsimile transmission shall be effective as delivery of a manually executed counterpart thereof.

  

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 10.2 Notices. All notices, requests and demands to or upon the respective parties hereto to be
effective shall be in writing (including by telecopy or electronic mail (at such e-mail address as the Parent, the Borrower and the Agents may designate to each other in accordance herewith)), and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made when delivered, or three Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy or electronic mail notice, when received, addressed (a) in the case of the Parent,
the Borrower, the Arranger and the Agents, as follows and (b) in the case of the Lenders, as set forth in an administrative questionnaire delivered to the Administrative Agent or, in the case of a Lender which becomes a party to this Agreement
pursuant to an Assignment and Acceptance, in such Assignment and Acceptance or (c) in the case of any party, to such other address as such party may hereafter notify to the other parties hereto: 
  

			
	The Parent and the Borrower:	  	Pope & Talbot Ltd.
		  	c/o Pope & Talbot, Inc.
		  	1500 S.W. First Avenue, Suite 200
		  	Portland, Oregon 97201
		  	Attention: Chief Financial Officer
		  	Telecopy: (503) 220-2758
		  	Telephone: (503) 220-5526
		  	e-mail: neil_stuart@poptal.com
		
	with copies to:	  	Shearman & Sterling LLP
		  	599 Lexington Avenue
		  	New York, New York 10022
		  	Attention: Fredric Sosnick
		  	Telecopy: (212) 848-7179
		  	Telephone: (212) 848-4000
		  	e-mail: fsosnick@shearman.com
		
		  	Stikeman Elliott LLP
		  	5300 Commerce Court West
		  	199 Bay Street
		  	Toronto, Ontario M5L 1B9
		  	Attention: Sean Dunphy
		  	Telecopy: (416) 947-0866
		  	Telephone: (416) 869-5500
		  	email: sdunphy@stikeman.com
		
	The Administrative Agent:	  	Wells Fargo Financial Corporation Canada
		  	55 Standish Court, Suite 400
		  	Mississauga, Ontario L5R 4J4
		  	Attention: Nick Scarfo
		  	Telecopy: (905) 755-7106
		  	Telephone: (905) 755-7051
		  	e-mail: nickscarfo@financial.wellsfargo.com

  

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	with copies to:	  	Wells Fargo Foothill, Inc.
		  	2450 Colorado Avenue, Suite 3000 West
		  	Santa Monica, California 90404
		  	Attention: Business Finance Manager
		  	Telecopy: (310) 453-7413
		  	Telephone: (310) 453-7311
		  	e-mail: Stacy.yucht@wellsfargo.com
		
		  	Goldberg Kohn
		  	55 East Monroe Street, Suite 3300
		  	Chicago, Illinois 60603-5792
		  	Attention: Randall L. Klein
		  	Telecopy: (312) 332-2196
		  	Telephone: (312) 201-4000
		  	e-mail: randall.klein@goldbergkohn.com
		
	The Collateral Agent:	  	Ableco Finance LLC
		  	299 Park Avenue
		  	Floors 21-23
		  	New York, New York 10171
		  	Attention: Mr. Kevin P. Genda
		  	Telecopy: (212) 891-1541
		  	Telephone: (212) 891-2117
		  	e-mail: kgenda@cerberuspartners.com
		
	with a copy to:	  	Schulte Roth & Zabel LLP
		  	919 Third Avenue
		  	New York, New York 10022
		  	Attention: Frederic L. Ragucci, Esq.
		  	Telecopy: (212) 593-5955
		  	Telephone: (212) 756-2000
		  	e-mail: frederic.ragucci@srz.com
		
	The Term Loan B Agent:	  	Ableco Finance LLC
		  	299 Park Avenue
		  	Floors 21-23
		  	New York, New York 10171
		  	Attention: Mr. Kevin P. Genda
		  	Telecopy: (212) 891-1541
		  	Telephone: (212) 891-2117
		  	e-mail: kgenda@cerberuscapital.com
		
	with a copy to:	  	Schulte Roth & Zabel LLP
		  	919 Third Avenue
		  	New York, New York 10022
		  	Attention: Frederic L. Ragucci, Esq.
		  	Telecopy: (212) 593-5955
		  	Telephone: (212) 756-2000
		  	e-mail: frederic.ragucci@srz.com
		
	Issuing Lender:	  	As notified by such Issuing Lender to the Administrative Agent and the Borrower

  

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 Provided, that any notice, request or demand to or upon the Arranger, any Agent, the Issuing Lender or any Lender
shall not be effective until received. 
 Nothing in this Agreement or in any other Loan Document shall be construed to limit or affect the obligation of the
Borrower or any other Person to serve upon the Agents and the Lenders in the manner prescribed by each applicable Bankruptcy Code any pleading or notice required to be given to the Agents and the Lenders pursuant to any such Bankruptcy Code.

 10.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of any Agent or any Lender, any
right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 
 10.4 Survival of Representations and Warranties. All representations and warranties made herein, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the making of the Loans and other extensions of credit hereunder. 
 10.5 Payment of Expenses. The Loan Parties agree (on behalf of themselves and their Subsidiaries) (a) to pay or reimburse the Arranger, each
Lender providing a Revolving Credit Commitment as of the date hereof, each Agent and the Syndication Agent for all their reasonable out of pocket costs and expenses incurred in connection with the syndication of the Facilities (other than fees
payable to syndicate members) and the development, preparation and execution of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection herewith or therewith, and
the consummation and administration of the transactions contemplated hereby and thereby, including, without limitation, the reasonable fees and disbursements and other charges of counsel to each Agent and the charges of Intralinks, and the
reasonable fees and disbursement of one financial advisor to the Administrative Agent (for itself and on behalf of all the Lenders) (provided, that such advisor shall have no direct access to the Loan Parties without such Person’s
consent and the fees and expenses of such advisor shall not exceed $20,000 per month), (b) to pay or reimburse each Lender, each Agent, the Arranger and the Syndication Agent for all their costs and expenses incurred in connection with any
restructuring or “work-out” of the Loans hereunder or the enforcement or preservation of any rights under this Agreement, the other Loan Documents and any other documents prepared in connection herewith or therewith, including, 

  

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without limitation, the reasonable fees and disbursements of counsel (including the allocated fees and disbursements and other charges of in-house counsel)
to each Lender and of counsel to each Agent and the Syndication Agent, (c) to pay, indemnify, or reimburse each Lender, the Arranger, the Agents and the Syndication Agent for, and hold each Lender, the Arranger, the Agents and the Syndication
Agent harmless from, any and all recording and filing fees and any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise and other taxes, if any, which may be payable or determined to be payable in connection with
the execution and delivery of, or consummation or administration of any of the transactions contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the other Loan Documents
and any such other documents, and (d) to pay, indemnify or reimburse each Lender, the Arranger, each Agent, the Syndication Agent, their respective affiliates, and their respective officers, directors, trustees, employees, affiliates,
shareholders, attorneys and other advisors, agents and controlling persons (each, an “Indemnitee”) for, and hold each Indemnitee harmless from and against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Loan Documents and any such other
documents, including, without limitation, any of the foregoing relating to the use of proceeds of the Loans or the violation of, noncompliance with or liability under, any Environmental Law applicable to the operations of the Borrower, any of its
Subsidiaries or any of the Properties or the use by unauthorized persons of information or other materials sent through electronic, telecommunications or other information transmission systems that are intercepted by such persons and the fees and
disbursements and other charges of legal counsel in connection with claims, actions or proceedings by any Indemnitee against the Borrower hereunder (all the foregoing in this clause (d), collectively, the “Indemnified Liabilities”),
provided, that the Borrower shall have no obligation hereunder to any Indemnitee with respect to Indemnified Liabilities to the extent such Indemnified Liabilities are (i) found by a final and nonappealable decision of a court of
competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnitee or (ii) resulted solely from the failure of the Loan Parties to reimburse any Agent or any Lender for expenses that the Loan Parties are
not required to reimburse under clause (a) of this Section 10.5. No Indemnitee shall be liable for any damages arising from the use by unauthorized persons of Information or other materials sent through electronic, telecommunications or
other information transmission systems that are intercepted by such persons or for any special, indirect, consequential or punitive damages in connection with the Facilities. Without limiting the foregoing, and to the extent permitted by applicable
law, the Parent agrees not to assert and to cause its Subsidiaries not to assert, and hereby waives and agrees to cause its Subsidiaries so to waive, all rights for contribution or any other rights of recovery with respect to all claims, demands,
penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature, under or related to Environmental Laws, that any of them might have by statute or otherwise against any Indemnitee; provided, that the
Borrower does not waive any such right with respect to matters that were found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnitee. All
amounts due under this Section may be charged to the Loan Account pursuant to Sections 2.19(c) and 2.20 and, upon request, the Borrower shall be entitled to receive a reasonably detailed written invoice for such amounts. Statements payable by the
Borrower pursuant to this Section shall be 

  

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submitted to the address of the Borrower set forth in Section 10.2, or to such other Person or address as may be hereafter designated by the Borrower in
a notice to the Administrative Agent. The agreements in this Section shall survive repayment of the Loans and all other amounts payable hereunder. 
 10.6 Successors and Assigns; Participations and Assignments. (a) This Agreement shall be binding upon and inure to the benefit of the Borrower, the Lenders, the Arranger, the Agents, all future holders of the Loans and their
respective successors and assigns (including, except for the right to request Loans, Letters of Credit or Bank Products, any trustee succeeding to the rights of the Loan Parties pursuant to Chapter 11 of the US Bankruptcy Code or any trustee in
bankruptcy succeeding to the rights of any of the Loan Parties under the BIA or pursuant to any conversion to a case under Chapter 7 of the US Bankruptcy Code), except that the Loan Parties may not assign or transfer any of their rights or
obligations under this Agreement without the prior written consent of the Arranger, the Agents and each Lender. 
 (b) Any Lender may
(x) with the written consent of the Collateral Agent and Term Loan B Agent, assign to one or more other lenders or other entities all or a portion of its rights and obligations under this Agreement with respect to all or a portion of its Term
Loan Commitment and any Term Loan made by it and (y) with the written consent of the Issuing Lender, the Swing Line Lender and the Agents, assign to one or more other lenders or other entities all or a portion of its rights and obligations
under this Agreement with respect to all or a portion of its Revolving Credit Commitment and the Revolving Credit Loans made by it; provided, however, that (i) such assignment is in an amount which is at least $5,000,000 or a
multiple of $1,000,000 in excess thereof (or the remainder of such Lender’s Commitment) (except such minimum amount shall not apply to an assignment by a Lender to (x) a Lender, an Affiliate of a Lender or a Related Fund of a Lender or
(y) a group of new Lenders, each of whom is an Affiliate or Related Fund of each other to the extent the aggregate amount to be assigned to all such new Lenders is at least $5,000,000 or a multiple of $1,000,000 in excess thereof),
(ii) except as provided in the last sentence of this Section 10.6(b), the parties to each such assignment shall execute and deliver with any of the consents required pursuant to this Section to the Administrative Agent an Assignment and
Acceptance substantially in the form of Exhibit C (an “Assignment and Acceptance”), together with any promissory note subject to such assignment and such parties shall deliver to the Administrative Agent, for the benefit of the
Administrative Agent, a processing and recordation fee of $3,500 (except the payment of such fee shall not be required in connection with an assignment by a Lender to a Lender, an Affiliate of a Lender or a Related Fund of a Lender) and
(iii) no written consent of the Issuing Lender, the Swing Line Lender or any Agent shall be required (1) in connection with any assignment by a Lender to a Lender, an Affiliate of a Lender or a Related Fund of such Lender or (2) if
such assignment is in connection with any merger, consolidation, sale, transfer, or other disposition of all or any substantial portion of the business or loan portfolio of such Lender. Except as provided in the third to last sentence of this
Section 10.6(b), upon such execution, delivery and acceptance, from and after the effective date specified in each Assignment and Acceptance, which effective date shall be at least 3 Business Days after the delivery thereof to the
Administrative Agent (or such shorter period as shall be agreed to by the Administrative Agent and the parties to such assignment), (A) the assignee thereunder shall become a “Lender” hereunder and, in addition to the rights and
obligations hereunder held by it immediately prior to such effective date, have the rights and obligations hereunder that have been assigned to it 

  

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pursuant to such Assignment and Acceptance and (B) the assigning Lender thereunder shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto). Notwithstanding anything to the contrary contained in this Section 10.6(b), a Lender may assign any or all of its rights under the Loan
Documents to an Affiliate of such Lender or a Related Fund with respect to such Lender without delivering an Assignment and Acceptance to the Agents or to any other Person (a “Related Party Assignment”); provided, however, that
(I) the Borrower and the Administrative Agent may continue to deal solely and directly with such assigning Lender in connection with the interest so assigned until an Assignment and Acceptance has been delivered to the Administrative Agent for
recordation on the Register, (II) the Collateral Agent may continue to deal solely and directly with such assigning Lender until receipt by the Collateral Agent of a copy of the fully executed Assignment and Acceptance pursuant to
Section 10.6(e), (III) the failure of such assigning Lender to deliver an Assignment and Acceptance to the Agents shall not affect the legality, validity, or binding effect of such assignment, (IV) an Assignment and Acceptance between
the assigning Lender and an Affiliate of such Lender or a Related Fund of such Lender shall be effective as of the date specified in such Assignment and Acceptance and recorded on the Related Party Register (as defined below), and (V) the
assigning Lender shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, keep a register of such assignment comparable to the Register (the “Related Party Register”). The Related Party Register shall be
available for inspection by the Borrower from time to time upon reasonable notice. So long as no Event of Default exists, any Lender making an assignment under this Section 10.6 shall use reasonable efforts to make such assignment to an
assignee that would not be entitled to any additional amounts under Section 2.22 to which the assigning Lender would not be entitled. 
 (c) By executing and delivering an Assignment and Acceptance, the assigning Lender and the assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment
and Acceptance, the assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or any other Loan Document or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto; (ii) the assigning Lender makes no representation or warranty and assumes no responsibility
with respect to the financial condition of any Loan Party or any of its Subsidiaries or the performance or observance by any Loan Party of any of its obligations under this Agreement or any other Loan Document furnished pursuant hereto;
(iii) such assignee confirms that it has received a copy of this Agreement and the other Loan Documents, together with such other documents and information it has deemed appropriate to make its own credit analysis and decision to enter into
such Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon the assigning Lender, any Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue
to make its own credit decisions in taking or not taking action under this Agreement and the other Loan Documents; (v) such assignee appoints and authorizes the Agents to take such action as agents on its behalf and to exercise such powers
under this Agreement and the other Loan Documents as are delegated to the Agents by the terms hereof and thereof, together with such powers as are reasonably 

  

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incidental hereto and thereto; and (vi) such assignee agrees that it will perform in accordance with their terms all of the obligations which by the
terms of this Agreement and the other Loan Documents are required to be performed by it as a Lender. 
 (d) The Administrative Agent shall
maintain, or cause to be maintained at its office, a copy of each Assignment and Acceptance delivered to and accepted by it. The Borrower, the Agents and the Lenders shall treat each Person whose name is recorded in the Register (and any Lender that
makes a Related Party Assignment shall treat each Person whose name is recorded in the Related Party Register) as a Lender hereunder for all purposes of this Agreement. In the case of any assignment or transfer of all or part of a Loan evidenced by
a Note, Borrower shall issue one or more new Notes in the same aggregate principal amount to the designated assignee, and the old Notes shall be returned by the Administrative Agent to the Borrower marked “canceled.” 
 (e) Upon receipt by the Administrative Agent of a completed Assignment and Acceptance, and subject to any consent required from the Administrative Agent,
the Collateral Agent, the Term Loan B Agent, the Issuing Lender or the Swing Line Lender pursuant to Section 10.6(b) (which consent of the Collateral Agent, the Term Loan B Agent, the Issuing Lender and the Swing Line Lender, as applicable,
must be evidenced by the Collateral Agent’s, the Term Loan B Agent’s, the Issuing Lender’s and the Swing Line Lender’s execution of an acceptance to such Assignment and Acceptance), the Administrative Agent shall accept such
assignment, record the information contained therein in the Register and provide to the Collateral Agent a copy of the fully executed Assignment and Acceptance. 
 (f) Each Lender may sell participations to one or more banks or other entities in or to all or a portion of its rights and obligations under this Agreement and the other Loan Documents (including, without limitation,
all or a portion of its Commitments, the Loans made by it and its Pro Rata Share of the Letter of Credit Usage); provided, that (i) such Lender’s obligations under this Agreement (including without limitation, its Commitments
hereunder) and the other Loan Documents shall remain unchanged; (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and the Borrower, the Agents and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and the other Loan Documents; and (iii) a participant shall not be entitled to require such Lender to take
or omit to take any action hereunder except (A) action directly effecting an extension of the maturity dates or decrease in the principal amount of the Loans or the reimbursement obligations with respect to Letters of Credit, (B) action
directly effecting an extension of the due dates or a decrease in the rate of interest payable on the Loans or the fees payable under this Agreement, or (C) actions directly effecting a release of all or a substantial portion of the Collateral
or any Loan Party (except as set forth in Section 9.12 of this Agreement or any other Loan Document). The Loan Parties agree that each participant shall be entitled to the benefits of Section 2.21 and Section 2.22 of this Agreement
with respect to its participation in any portion of the Commitments and the Loans as if it was a Lender; provided, that a participant shall not be entitled to receive any greater payment under Section 2.21 or 2.22 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such participant, unless the sale of the participation to such participant is made with the Borrower’s prior written consent. In the event that any Lender sells
participations in a Registered Loan, such Lender shall 

  

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maintain a register, acting for this purpose as a non-fiduciary agent of the Borrower, on which it enters the name of all participants in the Registered
Loans held by it and the principal amount (and stated interest thereon) of the portion of the Registered Loan that is the subject of the participation (the “Participant Register”). A Registered Loan (and the registered note, if any,
evidencing the same) may be participated in whole or in part only by registration of such participation on the Participant Register (and each registered note shall expressly so provide). Any participation of such Registered Loan (and the registered
note, if any, evidencing the same) may be effected only by the registration of such participation on the Participant Register. The Participant Register shall be available for inspection by the Borrower from time to time upon reasonable prior notice.

 (g) The Loan Parties hereby acknowledge that the Lenders and their Affiliates may sell or securitize the Loans
(a “Securitization”) through the pledge of the Loans as collateral security for loans to the Lenders or their Affiliates or through the sale of the Loans or the issuance of direct or indirect interests in the Loans, which loans
to the Lenders or their Affiliates or direct or indirect interests will be rated by Moody’s, Standard & Poor’s or one or more other rating agencies (the “Rating Agencies”). The Loan Parties shall cooperate with
the Lenders and their Affiliates to effect the Securitization including, without limitation, by (a) amending this Agreement and the other Loan Documents, and executing such additional documents, as reasonably requested by the Lenders in
connection with the Securitization, provided, that (i) any such amendment or additional documentation does not impose material additional costs on the Loan Parties and (ii) any such amendment or additional documentation does not
materially adversely affect the rights, or materially increase the obligations, of the Loan Parties under the Loan Documents or change or affect in a manner adverse to the Loan Parties the financial terms of the Loans, (b) providing such
information as may be reasonably requested by the Lenders in connection with the rating of the Loans or the Securitization, and (c) providing in connection with any rating of the Loans a certificate (i) agreeing to indemnify the Lenders
and their Affiliates, any of the Rating Agencies, or any party providing credit support or otherwise participating in the Securitization (collectively, the “Securitization Parties”) for any losses, claims, damages or liabilities
(the “Liabilities”) to which the Lenders, their Affiliates or such Securitization Parties may become subject insofar as the Liabilities arise out of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in any Loan Document or in any writing delivered by or on behalf of any Loan Party to the Lenders in connection with any Loan Document or arise out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein, or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, and such indemnity shall survive any transfer by the Lenders or their
successors or assigns of the Loans and (ii) agreeing to reimburse the Lenders and their Affiliates for any legal or other reasonable out of pocket expenses reasonably incurred by such Persons in connection with defending the Liabilities.

 (h) For the avoidance of doubt, the parties to this Agreement acknowledge that the provisions of this Section concerning assignments of
Loans and Notes relate only to absolute assignments and that such provisions do not prohibit assignments creating security interests in Loans and Notes, including, without limitation, any pledge or assignment by a Lender of any Loan or Note to any
Federal Reserve Bank in accordance with applicable law. 
  

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 (i) For the avoidance of doubt, no assignment shall be or shall be deemed to be a discharge, rescission,
extinguishment, novation or substitution of any Loan and any Loan so assigned shall continue to be the same obligation and not a new obligation. 
 10.7 Adjustments; Set-off. (a) Except to the extent that this Agreement provides for payments to be allocated to a particular Lender or to the Lenders under a particular Facility, if any Lender (a “Benefited
Lender”) shall at any time receive any payment of all or part of the Obligations owing to it, or receive any collateral in respect thereof (whether voluntarily or involuntarily, by set-off, or otherwise), in a greater proportion than any
such payment to or collateral received by any other Lender, if any, in respect of the Obligations owing to such other Lender, such Benefited Lender shall purchase for cash from the other Lenders a participating interest in such portion of the
Obligations owing to such other Lender, or shall provide such other Lenders with the benefits of any such collateral, as shall be necessary to cause such Benefited Lender to share the excess payment or benefits of such collateral ratably with each
of the Lenders; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefited Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the
extent of such recovery, but without interest. 
 (b) If an Event of Default shall have occurred and is continuing, in addition to any rights
and remedies of the Lenders provided by law, each Lender shall have the right, without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable law, upon any amount becoming due and
payable by the Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set-off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final, but excluding
designated accounts held in trust for the benefit of a third party or for the payment of withholding taxes, in each case, to the extent such accounts are identified as such to the Agents by the Borrower), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the account of the
Borrower. Each Lender agrees to notify promptly the Borrower and the Administrative Agent after any such setoff and application made by such Lender, provided, that the failure to give such notice shall not affect the validity of such setoff
and application. 
 10.8 Reserved. 
 10.9 Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof. A set of the copies of this Agreement signed by all
the parties shall be lodged with the Borrower and the Administrative Agent. 
 10.10 Severability. Any provision of this Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  

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 10.11 Integration. This Agreement and the other Loan Documents represent the entire agreement of
the Borrower, the Agents, the Arranger and the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Arranger, any Agent or any Lender relative to the subject
matter hereof not expressly set forth or referred to herein or in the other Loan Documents. 
 10.12 GOVERNING LAW. THIS AGREEMENT AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, EXCEPT AS GOVERNED BY THE US BANKRUPTCY CODE OR AS OTHERWISE PROVIDED BY THE
CANADIAN BANKRUPTCY STATUTES AND EXCEPT AS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT. 
 10.13 Submission To Jurisdiction; Waivers. The Borrower hereby irrevocably and unconditionally: 
 (a) submits for itself and
its Property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non exclusive general jurisdiction of each
of the Bankruptcy Courts and appellate courts from any thereof; 
 (b) consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

 (c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to the Borrower at its address set forth in Section 10.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto; 
 (d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue
in any other jurisdiction; and 
 (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any
legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages. 
 10.14
Acknowledgments. The Borrower hereby acknowledges that: 
 (a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents; 
  

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 (b) neither the Arranger, any Agent nor any Lender has any fiduciary relationship with or duty to the
Borrower arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Arranger, the Agents and the Lenders, on one hand, and the Borrower, on the other hand, in connection herewith or
therewith is solely that of debtor and creditor; and 
 (c) no joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Arranger, the Agents and the Lenders or among the Borrower and the Lenders. 
 10.15 Confidentiality. Each of the Arranger, the Agents, the Syndication Agent and the Lenders agrees to keep confidential all non-public information provided to it by any Loan Party pursuant to this Agreement that is designated by
such Loan Party as confidential; provided, that nothing herein shall prevent the Arranger, any Agent, the Syndication Agent or any Lender from disclosing any such information (a) to the Arranger, any Agent, the Syndication Agent, any
other Lender or any Affiliate or Related Fund of any thereof, (b) to any transferee or assignee or prospective assignee or transferee referred to in Section 10.6 that agrees to comply with the provisions of this Section or substantially
equivalent provisions, (c) to any of its employees, directors, agents, attorneys, accountants and other professional advisors who have been instructed to keep such information confidential in accordance with this Section 10.15, (d) to
any financial institution that is a direct or indirect contractual counterparty in swap agreements or such contractual counterparty’s professional advisor (so long as such contractual counterparty or professional advisor to such contractual
counterparty agrees to be bound by the provisions of this Section), (e) upon the request or demand of any Governmental Authority having jurisdiction over it, (f) in response to any order of any court or other Governmental Authority or as
may otherwise be required pursuant to any Requirement of Law; provided, that the disclosing party will give the Borrower prompt notice of such disclosure to the extent permitted by applicable law, (g) if requested or required to do so in
connection with any litigation or similar proceeding; provided, that the disclosing party will give the Borrower prompt notice of such disclosure to the extent permitted by applicable law, (h) that has been publicly disclosed other than
in breach of this Section, (i) to the National Association of Insurance Commissioners or any similar organization or any nationally recognized rating agency that requires access to information about a Lender’s investment portfolio in
connection with ratings issued with respect to such Lender or (j) in connection with the exercise of any remedy hereunder or under any other Loan Document. Notwithstanding anything to the contrary in the foregoing sentence or any other express
or implied agreement, arrangement or understanding, the parties hereto hereby agree that, from the commencement of discussions with respect to the financing provided hereunder, any party hereto (and each of its employees, representatives, or agents)
is permitted to disclose to any and all persons, without limitation of any kind, the tax structure and tax aspects of the transactions contemplated hereby, and all materials of any kind (including opinions or other tax analyses) related to such tax
structure and tax aspects. 
 10.16 Accounting Changes. In the event that any “Accounting Change” (as defined below) shall
occur and such change results in a change in the method of calculation of financial covenants, standards or terms in this Agreement, then the Parent, the Borrower and the Agents agree to enter into negotiations in order to amend such provisions of
this Agreement so as to equitably reflect such Accounting Change with the desired result that the criteria for 

  

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evaluating the Parent’s or the Borrower’s financial condition shall be the same after such Accounting Change as if such Accounting Change had not
been made. Until such time as such an amendment shall have been executed and delivered by the Parent, the Borrower, the Agents and the Required Lenders, all financial covenants, standards and terms in this Agreement shall continue to be calculated
or construed as if such Accounting Change had not occurred. “Accounting Change” refers to any change in accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting
Standards Board of the American Institute of Certified Public Accountants or, if applicable, the SEC. 
 10.17 WAIVERS OF JURY TRIAL.
THE PARENT, THE BORROWER, THE ARRANGER, THE AGENTS AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 10.18 Determinations; Judgment Currency. If, for the purposes of obtaining or enforcing judgment in any court in any jurisdiction
with respect to this Agreement or any other Loan Document, it becomes necessary to convert into the currency of such jurisdiction (the “Judgment Currency”) any amount due under this Agreement or under any other Loan Document in any
currency other than the Judgment Currency (the “Currency Due”) (or for the purposes of Section 2.9(f)), then, to the extent permitted by law, conversion shall be made at the Currency Exchange Rate on the Business Day before the
day on which judgment is given (or for the purposes of Section 2.9(f), on the Business Day on which the payment was received by the Administrative Agent). In the event that there is a change in the Currency Exchange Rate between the Business
Day before the day on which the judgment is given and the date of receipt by the Administrative Agent of the amount due, the Borrower shall to the extent permitted by law, on the date of receipt by the Administrative Agent, pay such additional
amounts, if any, or be entitled to receive reimbursement of such amount, if any as may be necessary to ensure that the amount received by the Administrative Agent on such date is the amount in the Judgment Currency which (when converted at the
Currency Exchange Rate on the date of receipt by the Administrative Agent in accordance with normal banking procedures in the relevant jurisdiction) is the amount then due under this Agreement or such other Loan Document in the Currency Due. If the
amount of the Currency Due (including any Currency Due for purposes of Section 2.9) from the Borrower which the Administrative Agent is so able to purchase is less than the amount of the Currency Due (including any Currency Due for purposes of
Section 2.9) originally due to it, the Borrower shall indemnify and save the Agents and Lenders harmless from and against loss or damage arising as a result of such deficiency. This indemnity shall (i) constitute an obligation separate and
independent from the other obligations contained in this Agreement and the other Loan Documents, (ii) give rise to a separate and independent cause of action, (iii) apply irrespective of any indulgence granted by any Agent or any Lender
from time to time, (iv) survive the payment in full of the Obligations and the termination of this Agreement, and (v) continue in full force and effect notwithstanding any judgment or order for a liquidated sum in respect of an amount due
under this Agreement or any other Loan Document or under any judgment or order. 
 10.19 Consultation by WFF. Each Agent, each Lender,
the Parent and the Borrower hereby acknowledge that (i) Wells Fargo, in its capacity as the Administrative Agent, 

  

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may consult with WFF with respect to matters relating to this Agreement and the other Loan Documents and (ii) the exercise of Wells Fargo’s
discretion under this Agreement and the other Loan Documents (including the exercise of its Permitted Discretion) may be based solely on the advice and/or direction of WFF. 
 10.20 Collateral Agent, Administrative Agent and Documentation Agent as Party-in-Interest. The Borrower and Guarantors hereby stipulate and agree
that each of the Collateral Agent, Administrative Agent and Documentation Agent is and shall remain a party in interest in the Chapter 11 Cases and the CCAA Proceedings and shall have the right to participate, object and be heard in any motion or
proceeding in connection therewith. Nothing in this Agreement or any other Loan Document shall be deemed to be a waiver of any of such Agent’s rights or remedies under applicable law or documentation. Without limitation of the foregoing, each
Agent shall have the right to make any motion or raise any objection it deems to be in its interest (specifically including but not limited to objections to use of proceeds of the Loans, to payment of professional fees and expenses or the amount
thereof, to sales or other transactions outside the ordinary course of business or to assumption or rejection of any executory contract or lease), provided, that no Agent will exercise such right if the action or inaction by the Borrower or
the Guarantors which is the subject of such motion or objection is expressly permitted by any covenant or provision of this Agreement. 
 SECTION 11    SECURITY AND ADMINISTRATIVE PRIORITY 
 11.1 Pre-Petition Obligations. Each of the
Pre-Petition Loan Parties hereby acknowledges, confirms and agrees that the Pre-Petition Loan Parties are indebted to the Pre-Petition Agents and the Pre-Petition Lenders for the Pre-Petition Revolving Obligations and the Pre-Petition Term Loan
Obligations, as of October 29, 2007 and immediately prior to giving effect to any Loans or other extensions of Credit under this Agreement, (a) in the aggregate principal amount of $37,196,614.97 in respect of Pre-Petition Revolving Loan
Obligations under the Pre-Petition Credit Agreement, (b) in the aggregate principal amount of $185,440,383.17 in respect of Pre-Petition Term Loan Obligations under the Pre-Petition Credit Agreement, (c) in the aggregate amount of
$17,155,183.42 in respect of obligations related to the Pre-Petition Letters of Credit and (d) in the aggregate amount of $7,944,908.25 in respect of Pre-Petition Bank Product Obligations, in each case, together with interest accrued and
accruing thereon in respect of such loans, and costs, expenses, fees (including attorneys’ fees), indemnities, reimbursement obligations and other charges now or hereafter owed by the Pre-Petition Loan Parties to the Pre-Petition Agents and the
Pre-Petition Lenders, all of which are unconditionally owing by the Pre-Petition Loan Parties to the Pre-Petition Agents and the Pre-Petition Lenders, without offset, defense or counterclaim of any kind, nature and description whatsoever.

 11.2 Acknowledgment of Security Interests. As of the Chapter 11 Filing Date, each of the Loan Parties hereby acknowledges, confirms
and agrees that the Pre-Petition Agents and the Pre-Petition Lenders have valid, enforceable and perfected first priority and senior liens upon and security interests in all of the Collateral (as defined in the Pre-Petition Credit Agreement)
pursuant to the Pre-Petition Credit Agreement and the other Loan Documents (as defined in the Pre-Petition Credit Agreement) as in effect on the Chapter 11 Filing Date to secure all of the Pre-Petition Term Loan Obligations and Pre-Petition
Revolving Loan Obligations. 
  

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 11.3 Binding Effect of Documents. Each of the Loan Parties hereby acknowledges, confirms and
agrees that: (a) each of the Pre-Petition Credit Agreement and the other Loan Documents (as defined in the Pre-Petition Credit Agreement) to which it is a party is in full force and effect as of the date hereof, (b) the agreements and
obligations of each of the Pre-Petition Loan Parties contained in the Pre-Petition Credit Agreement and the other Loan Documents (as defined in the Pre-Petition Credit Agreement) constitute the legal, valid and binding obligations of each of the
Pre-Petition Loan Parties enforceable against it in accordance with their respective terms and the Pre-Petition Loan Parties have no valid defense, offset or counterclaim to the enforcement of such obligations and (c) the Pre-Petition Agents
and the Pre-Petition Lenders are and shall be entitled to all of the rights, remedies and benefits provided for in the Pre-Petition Credit Agreement and the other Loan Documents (as defined in the Pre-Petition Credit Agreement), except as clauses
(b) and (c) above are subject to the automatic stay under each applicable Bankruptcy Code upon commencement of the Chapter 11 Cases and the CCAA Proceedings. 
 11.4 Collateral; Grant of Lien and Security Interest. 
 (a) As security for the full and timely
payment and performance of all of the Obligations, each of the Loan Parties hereby, as of the Interim Bankruptcy Court Order Entry Date, assigns, pledges and grants (or causes the assignment, pledge and grant in respect of any indirectly owned
assets) to the Collateral Agent, for the benefit of the Lenders, a security interest in and to and Lien on all of the property, assets or interests in property or assets of such Person, of any kind or nature whatsoever, real or personal, now
existing or hereafter acquired or created, including, without limitation, all property of the “estate” (within the meaning of the US Bankruptcy Code) and all accounts, inventory, goods, contract rights, instruments, documents, chattel
paper, general intangibles, payment intangibles, letters of credit, letter-of-credit rights, supporting obligations, machinery and equipment, real property, fixtures, leases, all of the Capital Stock (whether such Capital Stock is voting or
non-voting Capital Stock) in any of its direct Subsidiaries, all of its Capital Stock or other equity interests in all joint venture, partnership or limited liability company interests or other similar interests of such Loan Party in Persons that
are not its Subsidiaries directly owned by such Loan Party, money, investment property, deposit accounts, all commercial tort claims and all causes of action arising under the applicable Bankruptcy Code or otherwise (including, without limitation,
all Avoidance Actions and the proceeds thereof and all Avoided Payments), and all cash and non-cash proceeds, rents, products and profits of any of collateral described above (all property of the Loan Parties subject to the security interest
referred to in this Section 11.4(a) being hereafter collectively referred to as the “Collateral”). 
 (b) Upon entry of
the Interim Bankruptcy Court Orders or Final Bankruptcy Court Orders, as the case may be, the Liens and security interests in favor of the Collateral Agent referred to in Section 11.4(a) hereof shall be valid and perfected Liens and security
interests in the Collateral, prior to all other Liens and security interests in the Collateral, other than for the Permitted Priority Liens. Such Liens and security interests and their priority shall remain in effect until the Total Commitment shall
have been terminated and all Obligations and all Pre-Petition Term Loan Obligations shall have been paid in cash in full and the outstanding Letters of Credit have been terminated or cash collateralized (other than indemnification obligations for
which no claim has been asserted). 
  

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 (c) Notwithstanding anything herein to the contrary (i) all proceeds received by the Agents and the
Lenders from the Collateral subject to the Liens granted in this Section 11.4 and in each other Loan Document and by the Bankruptcy Court Orders shall be subject to the prior payment of amounts owing in respect of the Carve-Out to the extent
set forth in clause “first” of the definition of the term “Agreed Administrative Expense Priorities”, and (ii) no Person entitled to such expenses shall be entitled to sell or otherwise dispose of any Collateral.

 (d) Each of the Loan Parties hereby agrees that the Lien and security interests created by each of the Pre-Petition Canadian Security
Documents secures the full and timely payment and performance of all of the Obligations and that wherever in any of the Pre-Petition Canadian Security Documents there is a statement that such Lien or security interest secures, or is made to secure,
the “Obligations” as defined in the Pre-Petition Credit Agreement, then, in each such case, such Pre-Petition Canadian Security Document is hereby amended to reflect that, in addition to so doing, the Lien and security interest created by
each such Pre-Petition Canadian Security Document also secures the Obligations. 
 11.5 Administrative Priority. Subject to the
Bankruptcy Court Orders, each of the Borrower and Guarantors agrees for itself that the Obligations of such Person shall constitute allowed super priority administrative expenses in the Chapter 11 Cases, having priority over all administrative
expenses of and unsecured claims against such Person now existing or hereafter arising, of any kind or nature whatsoever, including, without limitation, all administrative expenses of the kind specified in, or arising or ordered under, Sections 105,
326, 328, 503(b), 506(c), 507(a), 507(b), 546(c) and 1114 of the US Bankruptcy Code, subject only to the prior payment of amounts owing in respect of the Carve-Out to the extent set forth in clause “first” of the definition of the term
“Agreed Administrative Expense Priorities”. 
 11.6 Grants, Rights and Remedies. The Liens and security interests granted
pursuant to Section 11.4(a) hereof and the administrative priority granted pursuant to Section 11.5 hereof may be independently granted by the Loan Documents and by other Loan Documents hereafter entered into. This Agreement, the
Bankruptcy Court Orders and such other Loan Documents supplement each other, and the grants, priorities, rights and remedies of the Agents and the Lenders hereunder and thereunder are cumulative. 
 11.7 No Filings Required. In the case of the Chapter 11 Cases and the CCAA Proceedings, the Liens and security interests referred to herein shall
be deemed valid and perfected by entry of the Interim Bankruptcy Court Orders or the Final Bankruptcy Court Orders, as the case may be, and with respect to both the Chapter 11 Cases and the CCAA Proceedings, entry of the Interim Bankruptcy Court
Orders shall have occurred on or before the date of any Loan or the issuance of any Letter of Credit and entry of the Final Bankruptcy Court Orders shall have occurred on or before the date of any Loan, or the issuance of any Letter of Credit
(except as otherwise provided in the Interim Bankruptcy Court Orders). In the case of the Chapter 11 Cases, the Collateral Agent shall not be required to file any financing statements, mortgages, notices of Lien or similar instruments in any
jurisdiction or filing office or to take any other action in order to validate or perfect the Lien and security interest granted by or pursuant to this Agreement, the Interim Bankruptcy Court Orders or the Final Bankruptcy Courts Orders, as the case
may be, or any other Loan Document; provided, that the Collateral Agent shall be permitted to file any financing statements, mortgages, certificates of title, notices of Lien or similar instruments in any jurisdiction or filing office to take
any other action with respect to the Lien and security interest granted by or pursuant to this Agreement or any other Loan Document. 
  

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 11.8 Survival. The Liens, lien priority, administrative priorities and other rights and remedies
granted to the Agents and the Lenders pursuant to this Agreement, the Bankruptcy Court Orders and the other Loan Documents (specifically including, but not limited to, the existence, perfection and priority of the Liens and security interests
provided herein and therein, and the administrative priority provided herein and therein) shall not be modified, altered or impaired in any manner by any other financing or extension of credit or incurrence of Indebtedness by any Borrower or any
Guarantor (pursuant to Section 364 of the US Bankruptcy Code, or otherwise), or by any dismissal or conversion of any of the Chapter 11 Cases or the CCAA Proceedings, or by any other act or omission whatsoever, except to the extent released
pursuant to Section 9.12. Without limitation, notwithstanding any such order, financing, extension, incurrence, dismissal, conversion, act or omission: 
 (a) except for the Carve-Out to the extent set forth in clause “first” of the definition of the term “Agreed Administrative Expense Priorities” as set forth in Section 11.5, no costs or
expenses of administration which have been or may be incurred in the Chapter 11 Cases or the CCAA Proceedings or any conversion of the same or in any other proceedings related thereto, and no priority claims, are or will be prior to or on parity
with any claim of the Agents and the Lenders against any Borrower or any Guarantor in respect of any Obligation; 
 (b) the Liens in favor of
the Agents and the Lenders set forth in Section 11.4(a) hereof shall constitute valid and perfected first priority Liens and security interests, subject only to Permitted Priority Liens to which such Liens and security interests may be
subordinate and junior, and shall be prior to all other Liens and security interests, now existing or hereafter arising, in favor of any other creditor or any other Person whatsoever; and 
 (c) the Liens in favor of the Agents and the Lenders set forth herein and in the other Loan Documents shall continue to be valid and perfected without,
in the case of the Chapter 11 Cases and the CCAA Proceedings, the necessity that the Collateral Agent file financing statements, mortgages or otherwise perfect its Lien under applicable non-bankruptcy law. 
  

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

			
	PARENT
	
	POPE & TALBOT, INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President
	
	BORROWER
	
	POPE & TALBOT LTD., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President
	
	GUARANTORS
	
	POPE & TALBOT SPEARFISH LIMITED PARTNERSHIP, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code
		
	By:	 	 POPE & TALBOT LTD., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA,
 as its General Partner

		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

 Signature Page to Credit Agreement 

			
	PENN TIMBER, INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

  

			
	POPE & TALBOT RELOCATION SERVICES, INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

  

			
	P&T POWER COMPANY, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Secretary

  

			
	POPE & TALBOT PULP SALES U.S., INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

  

			
	POPE & TALBOT LUMBER SALES, INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

 Signature Page to Credit Agreement 

			
	MACKENZIE PULP LAND LTD., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

 Signature Page to Credit Agreement 

			
	P&T LFP INVESTMENT LIMITED PARTNERSHIP, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code
		
	By:	 	P&T FUNDING LTD., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA,
		 	as its General Partner
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

  

			
	P&T FUNDING LTD., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

  

			
	P&T FINANCE ONE LIMITED PARTNERSHIP, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code
		
	By:	 	PENN TIMBER, INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA,
		 	as its General Partner
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

 Signature Page to Credit Agreement 

			
	P&T FINANCE TWO LIMITED PARTNERSHIP, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code
		
	By:	 	PENN TIMBER, INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA,
		 	as its General Partner
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

  

			
	P&T FACTORING LIMITED PARTNERSHIP, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code
		
	By:	 	POPE & TALBOT PULP SALES U.S., INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA, as its Managing General
Partner
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

  

			
	P&T FINANCE THREE LLC, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	POPE & TALBOT LTD., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA,
		 	as its Manager
		
	By:	 	 /s/ R. Neil Stuart

	Name:	 	R. Neil Stuart
	Title:	 	Vice President

 Signature Page to Credit Agreement 

			
	WELLS FARGO FINANCIAL CORPORATION CANADA, as Administrative Agent and a Lender
		
	By:	 	 /s/ Nick Scarfo

	Name:	 	Nick Scarfo
	Title:	 	Vice President

 Signature Page to Credit Agreement 

			
	ABLECO FINANCE LLC, as Collateral Agent and Term Loan B Agent
		
	By:	 	 /s/ Kevin Genda

	Name:	 	Kevin Genda
	Title:	 	Vice Chairman

 Signature Page to Credit Agreement 

			
	STYX PARTNERS, L.P., as a Lender
		
	By:	 	Styx Associates, LLC, as its General Partner
		
	By:	 	 /s/ Kevin Genda

	Name:	 	Kevin Genda
	Title:	 	Senior Managing Director

 Signature Page to Credit Agreement 

					
	ABN AMRO BANK N.V., Canada Branch, as a Lender
			
	By:	 	/s/ David Carson	 	Aaron Turner
		 	 
	Name:	 	David Carson	 	Aaron Turner
	Title:	 	Vice President	 	Senior Vice President

 Signature Page to Credit Agreement 

			
	OHSF FINANCING, LTD., as a Lender
		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Signatory

  

			
	OHSF II FINANCING, LTD., as a Lender
		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Signatory

  

			
	OAK HILL CREDIT OPPORTUNITIES FINANCING, LTD., as a Lender
		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Signatory

  

			
	OAK HILL CREDIT ALPHA FINANCE I, LLC, as a Lender
		
	By:	 	 Oak Hill Credit Alpha Fund, L.P.,
 its
Member

		
	By:	 	Oak Hill Credit Alpha Gen Par, L.P.,
		 	its General Partner
		
	By:	 	Oak Hill Credit Alpha MGP, LLC,
		 	its General Partner
		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Signatory

 Signature Page to Credit Agreement 

			
	OAK HILL CREDIT ALPHA FINANCE I (OFFSHORE), LTD., as a Lender
		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Signatory

  

			
	LERNER ENTERPRISES, L.L.C., as a Lender
		
	By:	 	Oak Hill Advisors, L.P., as Investment
		 	Advisor for Lerner Enterprises, L.P.
		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Signatory

  

			
	OHA CAPITAL SOLUTIONS, L.P., as a Lender
		
	By:	 	OHA Capital Solutions GenPar, L.P., its General Partner
		
	By:	 	OHA Capital Solutions MGP, LLC,
		 	its General Partner
		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Signatory

  

			
	OHA CAPITAL SOLUTIONS, LTD., as a Lender
		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Signatory

 Signature Page to Credit Agreement 

			
	REGIMENT CAPITAL SPECIAL SITUATIONS FUND III, L.P., as a Lender
		
	By:	 	Regiment Capital GP, LLC, its General Partner
		
	By:	 	 /s/ Richard T. Miller

	Name:	 	Richard T. Miller
	Title:	 	Authorized Signatory

 Signature Page to Credit Agreement 

			
	DRAWBRIDGE SPECIAL OPPORTUNITIES FUND LP
		
	By:	 	Drawbridge Special Opportunities GP LLC,
		 	its general partner
		
	By:	 	 /s/ Constantine M. Dakolias

	Name:	 	Constantine M. Dakolias
	Title:	 	Chief Credit Officer

 Signature Page to Credit Agreement 

			
	CREDIT GENESIS CLO 2005-1 LTD., as a Lender
		
	By:	 	 /s/ T. K. Duggan

	Name:	 	T. K. Duggan
	Title:	 	Managing Principal

  

			
	DURHAM ACQUISITION CO., LLC, as a Lender
		
	By:	 	 /s/ T. K. Duggan

	Name:	 	T. K. Duggan
	Title:	 	Managing Principal

 Signature Page to Credit Agreement 

			
	HBK MASTER FUND L.P., as a Lender
		
	By:	 	 HBK Investments L.P.
 its Investment
Advisor

		
	By:	 	 /s/ J. Baker Gentry, Jr.

	Name:	 	J. Baker Gentry Jr.
	Title:	 	Authorized Signatory

 Signature Page to Credit Agreement 

			
	BANK OF AMERICA, N.A., as a Lender
		
	By:	 	 /s/ Jonathan M. Barnes

	Name:	 	Jonathan M. Barnes
	Title:	 	Vice President

 Signature Page to Credit Agreement 

			
	CONCORDIA DISTRESSED DEBT FUND, L.P. acting by and through Concordia Advisors, L.L.C., as a Lender
		
	By:	 	 /s/ Robert J. Capozzi

	Name:	 	Robert J. Capozzi
	Title:	 	Portfolio Manager and Co-Head of Distressed Debt Trading

 Signature Page to Credit Agreement 

			
	QUADRANGLE MASTER FUNDING LTD, as a Lender
		
	By:	 	 Quadrangle Debt Recovery Advisors LP
 Its: Advisor

		
	By:	 	 /s/ Michael A. Weinstock

	Name:	 	Michael A. Weinstock
	Title:	 	Managing Principal

 Signature Page to Credit Agreement 

			
	DK ACQUISITION PARTNERS, L.P., as a Lender
		
	By:	 	M.H. Davidson & Co., its General Partner
		
	By:	 	 /s/ Anthony Yoseloff

	Name:	 	Anthony Yoseloff
	Title:	 	General Partner

 Signature Page to Credit Agreement 

 SCHEDULE A-1: Administrative Agent’s Account 
 Canadian Dollar Wire Instructions: 
 Bank of Montreal 
 SWIFT BIC: BOFMCAM2 
 Montreal 
 Transit# 03792 
 BNF: Wells Fargo Financial Corporation Canada 
 BNF A/C: 03791039027 
 Ordering Customer: Pope & Talbot 

US Dollar Wire Instructions: 
 Bank of Montreal 
 SWIFT ID: BOFMCAM2 
 Browns Line and Evans 
 Etobicoke, ON 
 Transit #03792 
 Account #4600800 
 BNF: Wells Fargo Financial Corporation Canada 

Ordering Customer: Pope & Talbot 
  

 1 

 SCHEDULE C-1: Commitments 
  

										
	 Lender
	  	Revolving Credit
Commitment	  	Term Loan B
Commitment	  	Total Commitment
	Wells Fargo Financial Corporation Canada	  	$	47,374,867.71	  			  	$	47,374,867.71
	 ABN Amro Bank N.V., Canada Branch
	  	$	23,687,433.86	  			  	$	23,687,433.86
	 Styx Partners, L.P.
	  			  	$	4,535,950.04	  	$	4,535,950.04
	 OHSF Financing, Ltd.
	  			  	$	181,534.83	  	$	181,534.83
	 OHSF II Financing, Ltd.
	  			  	$	453,598.91	  	$	453,598.91
	 Oak Hill Credit Opportunities Financing, Ltd.
	  			  	$	1,133,987.52	  	$	1,133,987.52
	 Oak Hill Credit Alpha Finance I, LLC
	  			  	$	408,235.51	  	$	408,235.51
	 Oak Hill Credit Alpha Finance I (Offshore), Ltd.
	  			  	$	1,043,268.50	  	$	1,043,268.50
	 Lerner Enterprises, L.P.
	  			  	$	181,533.28	  	$	181,533.28
	 OHA Capital Solutions, L.P.
	  			  	$	396,895.62	  	$	396,895.62
	 OHA Capital Solutions, Ltd.
	  			  	$	737,091.87	  	$	737,091.87
	 Regiment Capital Special Situations Fund III, L.P.
	  			  	$	1,079,988.09	  	$	1,079,988.09
	 Drawbridge Special Opportunities Fund LP
	  			  	$	1,079,989.35	  	$	1,079,989.35
	 Credit Genesis CLO 2005-1 Ltd.
	  			  	$	359,996.06	  	$	359,996.06
	 Durham Acquisition Co., LLC
	  			  	$	287,996.82	  	$	287,996.82
	 HBK Master Fund L.P.
	  			  	$	2,879,968.29	  	$	2,879,968.29
	 Bank of America, N.A.
	  			  	$	114,348.15	  	$	114,348.15
	 Concordia Distressed Debt Fund, L.P.
	  			  	$	96,564.08	  	$	96,564.08
	 Quadrangle Master Funding Ltd
	  			  	$	1,949,064.99	  	$	1,949,064.99
	 DK Acquisition Partners, L.P.
	  			  	$	1,079,988.09	  	$	1,079,988.09
	 TOTAL
	  	$	71,062,301.57	  	$	18,000,000.00	  	$	89,062,301.57

  

 2 

 SCHEDULE C-2: Canadian Security Documents 
  

	1.	General Security Agreements 

  

	 	a.	GSA for the Borrower 

  

	 	b.	GSA for P&T Factoring Limited Partnership 

  

	 	c.	GSA for P&T Finance One Limited Partnership 

  

	 	d.	GSA for P&T Finance Two Limited Partnership 

  

	 	e.	GSA for P&T Funding Ltd. 

  

	 	f.	GSA for Mackenzie Pulp Land Ltd. 

  

	 	g.	GSA for P&T LFP Investment Limited Partnership 

  

	2.	Marine Security 

  

	 	a.	Registered Vessel Mortgages (Revolving Mortgage and Term Mortgage attached to each registration) 

  

	 	b.	Collateral Marine Agreement for Borrower 

  

	3.	Real Estate Documents 

  

	 	a.	Registered Mortgages from the Borrower over fee simple & miscellaneous real property interests 

  

	 	b.	Registered Mortgage from Mackenzie Pulp Land Ltd. over fee simple 

  

	 	c.	Unregistered Mortgages from the Borrower regarding beneficial interests 

  

	 	d.	Unregistered Mortgage from the Borrower over Crown Leases & other Crown Interests 

  

 3 

 SCHEDULE C-3: Collateral Agent’s Account 
  

			
	Bank Name:	 	The Bank of New York
		 	New York, NY
	ABA Number:	 	021000018
	Account Name:	 	CDO Wire
	Account Number:	 	211551
	Sub-Account Name:	 	Ableco Finance LLC Collection
	Sub-Account Number:	 	467778
	Reference:	 	Pope & Talbot
	Attn:	 	Anoop Nair-7299

  

 4 

 SCHEDULE D-1: Designated Accounts 
 For U.S. Dollars: 
 The Toronto-Dominion Bank 
 700 West Georgia Street 
 Vancouver, B.C. 
 Account Name: Pope and Talbot Ltd 
 Account Number: 9400-7311078 
 Transit Number: 94000-004 
 For Canadian Dollars: 
 The Toronto-Dominion Bank 
 700 West Georgia Street 
 Vancouver B.C. 
 Account Name: Pope and Talbot Ltd 
 Account Number: 9400-0349619 
 Transit Number: 94000-004 
  

 5 

 SCHEDULE E-1: Eligible Inventory 
  

			
	U.S. Locations	  	Canadian Locations
		
	Spearfish Mill	  	Harmac Pulp Mill
	1510 West Oliver Street	  	1000 Wave Place
	Spearfish, SD 57783	  	P.O. Box 1800
		  	Nanaimo, British Columbia V9R 5M5
	Halsey Mill	  	
	30480 American Drive	  	Mackenzie Pulp Mill
	Halsey, OR 97348	  	1000 Coquawaldy Road
		  	Mackenzie, British Columbia VOJ 2CO
	Oregon Office	  	
	1500 S.W. First Ave.	  	Fort St. James Sawmill
	Suite 200	  	P.O. Box 254
	Portland, OR 97201	  	300 Takla Rd.
		  	Fort St. James, BC VOJ 1PO
	Northport Reload Facility	  	
	113 3rd Street	  	Grand Forks Sawmill
	Northport, WA 99157	  	P.O. Box 39
		  	570 68th Avenue
	Newcastle Reload Facility	  	Grand Forks, British Columbia
	200 Faye Ave.	  	
	Newcastle, WY	  	Castlegar Sawmill
		  	Box 2000 Celgar Road
		  	Castlegar, British Columbia V1N 4G4
		
		  	Midway Sawmill
		  	P.O. Box 70
		  	Highway 3
		  	Midway, British Columbia VOH 1MO
		
		  	Arrow Lakes Timber
		  	Box 2000
		  	926 Highway 6 West
		  	Nakusp, British Columbia VOG 1RO
		
		  	Boundary Timber
		  	P.O. Box 70
		  	Highway 3
		  	Midway, British Columbia VOH 1MO

  

 6 

 SCHEDULE E-2: Pre-Petition Letters of Credit 
  

							
	 L/C No.
	  	 Expiry date
	  	Beneficiary	  	 Global amount
 outstanding as of
 October 23, 2007

	 G194129
	  	6/28/08 (as may be extended)	  	TD COMMODITY &
ENERGY TRADING INC.	  	C$3,500,000
				
	 G194133
	  	6/28/08 (as may be extended)	  	THE TORONTO-
DOMINION BANK	  	C$1,000,000
				
	 G590936
	  	1/15/08 (as may be extended)	  	GENERALI BELGIUM SA	  	C$33,033
				
	 G193553
	  	11/21/07 (as may be extended)	  	SAFECO INSURANCE
COMPANY OF	  	USD$5,200,000
				
	 G194131
	  	3/26/08 (as may be extended)	  	GOLDENROD ASSET
MANAGEMENT, INC.	  	USD$6,407,058
				
	 G194302
	  	8/31/08 (as may be extended)	  	THE BANK OF NOVA
SCOTIA	  	USD$250,000
				
	 G194386
	  	6/30/08 (as may be extended)	  	WINTHORP RESOURCES
CORPORATION	  	USD$550,000

  

 7 

 SCHEDULE I-1: Initial Budget 
 See attached. 
  

 8 

 Pope & Talbot Weekly Cash Forecast 
 Summary Schedule - Forecasts [1] 
 (USD $000's) 
  

																																					
	Week in Fiscal Year	 	44	 	 	45	 	 	46	 	 	47	 	 	48	 	 	49	 	 	50	 	 	51	 	 	52	 
	Cash Forecast Week	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 
	Current Week Ending 11/2/2007	 	11/2/2007	 	 	11/9/2007	 	 	11/16/2007	 	 	11/23/2007	 	 	11/30/2007	 	 	12/7/2007	 	 	12/14/2007	 	 	12/21/2007	 	 	12/28/2007	 
	 Beginning Cash Balance 
	 	$	—  	 	 	$	11,305	 	 	$	11,393	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 
	 Stop Payment on Outstanding Checks
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Plus: Revolver Draw / Receipts
	 	 	—  	 	 	 	12,822	 	 	 	11,307	 	 	 	14,810	 	 	 	16,340	 	 	 	11,188	 	 	 	12,971	 	 	 	12,119	 	 	 	17,377	 
	 Plus: Overadvance Term Loan Borrowing
	 	 	—  	 	 	 	—  	 	 	 	777	 	 	 	—  	 	 	 	308	 	 	 	2,682	 	 	 	2,777	 	 	 	—  	 	 	 	—  	 
	 Less: Disbursements
	 	 	—  	 	 	 	(12,734	)	 	 	(23,478	)	 	 	(14,810	)	 	 	(16,648	)	 	 	(13,870	)	 	 	(15,748	)	 	 	(12,119	)	 	 	(17,377	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Ending Cash Balance [2] 
	 	 	11,305	 	 	 	11,393	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
										
	 Beginning Outstanding Checks 
	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 
	 Plus: Check Disbursements
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Less: Check Clearings
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Ending Outstanding Checks
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
										
	 Beginning Revolver Balance
	 	$	38,090	 	 	$	—  	 	 	$	46,720	 	 	$	46,692	 	 	$	45,329	 	 	$	46,981	 	 	$	47,021	 	 	$	46,772	 	 	$	45,009	 
	 Plus: Revolver Draw
	 	 	—  	 	 	 	—  	 	 	 	11,307	 	 	 	14,810	 	 	 	16,340	 	 	 	11,188	 	 	 	12,971	 	 	 	12,119	 	 	 	17,377	 
	 Plus: Adjustments
	 	 	8,000	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Less: Receipts
	 	 	—  	 	 	 	—  	 	 	 	11,336	 	 	 	16,173	 	 	 	14,688	 	 	 	11,149	 	 	 	13,220	 	 	 	13,882	 	 	 	20,518	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Ending Revolver Balance
	 	 	46,090	 	 	 	46,720	 	 	 	46,692	 	 	 	45,329	 	 	 	46,981	 	 	 	47,021	 	 	 	46,772	 	 	 	45,009	 	 	 	41,868	 
										
	 Revolver Commitment 
	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 
	 Reserves for Letters of Credit 
	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Revolver Limit 
	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 
										
	 Revolver Gross Borrowing Base Availability 
	 	 	71,680	 	 	 	69,849	 	 	 	69,282	 	 	 	69,213	 	 	 	69,572	 	 	 	69,611	 	 	 	69,363	 	 	 	68,804	 	 	 	65,159	 
	 Less: Reserves
	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)
	 Less: Letters of Credit
	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net Borrowing Base Availability
	 	 	49,089	 	 	 	47,258	 	 	 	46,692	 	 	 	46,622	 	 	 	46,981	 	 	 	47,021	 	 	 	46,772	 	 	 	46,213	 	 	 	42,569	 
										
	 Total Revolver Borrowings 
	 	 	46,090	 	 	 	46,720	 	 	 	46,692	 	 	 	45,329	 	 	 	46,981	 	 	 	47,021	 	 	 	46,772	 	 	 	45,009	 	 	 	41,868	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Availability (Overadvance)
	 	 	2,999	 	 	 	538	 	 	 	—  	 	 	 	1,293	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,204	 	 	 	701	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 DIP Term Loan Commitment: Term Advances 
	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 
	 DIP Beginning Balance 
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	777	 	 	 	777	 	 	 	1,085	 	 	 	3,780	 	 	 	6,557	 	 	 	6,557	 
	 Overadvance Term Loan Borrowing
	 	 	—  	 	 	 	—  	 	 	 	777	 	 	 	—  	 	 	 	308	 	 	 	2,682	 	 	 	2,777	 	 	 	—  	 	 	 	—  	 
	 Interest: Overadvance Borrowing
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	8	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Gross Up Tax On Interest (50%)
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	4	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 DIP Ending Balance 
	 	 	—  	 	 	 	—  	 	 	 	777	 	 	 	777	 	 	 	1,085	 	 	 	3,780	 	 	 	6,557	 	 	 	6,557	 	 	 	6,557	 
										
	 Availability 
	 	 	13,000	 	 	 	13,000	 	 	 	12,223	 	 	 	12,223	 	 	 	11,915	 	 	 	9,220	 	 	 	6,443	 	 	 	6,443	 	 	 	6,443	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 DIP Term Loan Commitment: Professional Fees & Other 
	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 
	 DIP Beginning Balance 
	 	 	—  	 	 	 	1,600	 	 	 	1,600	 	 	 	1,600	 	 	 	1,600	 	 	 	1,600	 	 	 	2,630	 	 	 	2,630	 	 	 	2,630	 
	 Lender Advisor Fees
	 	 	1,600	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,000	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Interest: Professional Fees & Other
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	20	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Gross Up Tax On Interest (50%)
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	10	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 DIP Ending Balance 
	 	 	1,600	 	 	 	1,600	 	 	 	1,600	 	 	 	1,600	 	 	 	1,600	 	 	 	2,630	 	 	 	2,630	 	 	 	2,630	 	 	 	2,630	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Availability 
	 	 	3,400	 	 	 	3,400	 	 	 	3,400	 	 	 	3,400	 	 	 	3,400	 	 	 	2,370	 	 	 	2,370	 	 	 	2,370	 	 	 	2,370	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Availability (Overadvance) 
	 				 				 				 				 				 				 				 				 			
	 Revolver
	 	 	2,999	 	 	 	538	 	 	 	—  	 	 	 	1,293	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,204	 	 	 	701	 
	 Term
	 	 	16,400	 	 	 	16,400	 	 	 	15,623	 	 	 	15,623	 	 	 	15,315	 	 	 	11,590	 	 	 	8,813	 	 	 	8,813	 	 	 	8,813	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net Availability (Overadvance) 
	 	 	19,399	 	 	 	16,938	 	 	 	15,623	 	 	 	16,915	 	 	 	15,315	 	 	 	11,590	 	 	 	8,813	 	 	 	10,017	 	 	 	9,514	 
										
	Week in Fiscal Year	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 
	Cash Forecast Week	 	10	 	 	11	 	 	12	 	 	13	 	 	14	 	 	15	 	 	16	 	 	17	 	 	18	 
	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 
	Current Week Ending 11/2/2007	 	1/4/2008	 	 	1/11/2008	 	 	1/18/2008	 	 	1/25/2008	 	 	2/1/2008	 	 	 2/8/2008
	 	 	2/15/2008	 	 	2/22/2008	 	 	2/29/2008	 
	 Beginning Cash Balance 
	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 
	 Stop Payment on Outstanding Checks
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Plus: Revolver Draw / Receipts
	 	 	9,914	 	 	 	13,076	 	 	 	10,895	 	 	 	17,373	 	 	 	16,271	 	 	 	10,052	 	 	 	9,505	 	 	 	16,408	 	 	 	20,984	 
	 Plus: Overadvance Term Loan Borrowing
	 	 	743	 	 	 	2,774	 	 	 	—  	 	 	 	2,427	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Less: Disbursements
	 	 	(10,657	)	 	 	(15,850	)	 	 	(10,895	)	 	 	(19,800	)	 	 	(16,271	)	 	 	(10,052	)	 	 	(9,505	)	 	 	(16,408	)	 	 	(20,984	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Ending Cash Balance [2] 
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
										
	 Beginning Outstanding Checks 
	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 
	 Plus: Check Disbursements
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Less: Check Clearings
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Ending Outstanding Checks
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
										
	 Beginning Revolver Balance
	 	$	41,868	 	 	$	37,942	 	 	$	38,523	 	 	$	37,638	 	 	$	37,298	 	 	$	14,953	 	 	$	13,664	 	 	$	10,012	 	 	$	12,763	 
	 Plus: Revolver Draw
	 	 	9,914	 	 	 	13,076	 	 	 	10,895	 	 	 	17,373	 	 	 	16,271	 	 	 	10,052	 	 	 	9,505	 	 	 	16,408	 	 	 	20,984	 
	 Plus: Adjustments
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(25,500	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Less: Receipts
	 	 	13,839	 	 	 	12,496	 	 	 	11,780	 	 	 	17,712	 	 	 	13,116	 	 	 	11,341	 	 	 	13,157	 	 	 	13,657	 	 	 	17,615	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Ending Revolver Balance
	 	 	37,942	 	 	 	38,523	 	 	 	37,638	 	 	 	37,298	 	 	 	14,953	 	 	 	13,664	 	 	 	10,012	 	 	 	12,763	 	 	 	16,133	 
										
	 Revolver Commitment 
	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 	 	$	71,000	 
	 Reserves for Letters of Credit 
	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Revolver Limit 
	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 	 	 	53,649	 
										
	 Revolver Gross Borrowing Base Availability 
	 	 	60,533	 	 	 	61,114	 	 	 	60,699	 	 	 	59,889	 	 	 	60,336	 	 	 	55,237	 	 	 	52,779	 	 	 	51,622	 	 	 	48,404	 
	 Less: Reserves
	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)	 	 	(5,239	)
	 Less: Letters of Credit
	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)	 	 	(17,351	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net Borrowing Base Availability
	 	 	37,942	 	 	 	38,523	 	 	 	38,108	 	 	 	37,298	 	 	 	37,745	 	 	 	32,647	 	 	 	30,188	 	 	 	29,032	 	 	 	25,813	 
										
	 Total Revolver Borrowings 
	 	 	37,942	 	 	 	38,523	 	 	 	37,638	 	 	 	37,298	 	 	 	14,953	 	 	 	13,664	 	 	 	10,012	 	 	 	12,763	 	 	 	16,133	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Availability (Overadvance)
	 	 	—  	 	 	 	—  	 	 	 	470	 	 	 	—  	 	 	 	22,792	 	 	 	18,983	 	 	 	20,176	 	 	 	16,268	 	 	 	9,680	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 DIP Term Loan Commitment: Term Advances 
	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 	 	$	13,000	 
	 DIP Beginning Balance 
	 	 	6,557	 	 	 	7,414	 	 	 	10,188	 	 	 	10,188	 	 	 	12,615	 	 	 	12,812	 	 	 	12,812	 	 	 	12,812	 	 	 	12,812	 
	 Overadvance Term Loan Borrowing
	 	 	743	 	 	 	2,774	 	 	 	—  	 	 	 	2,427	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Interest: Overadvance Borrowing
	 	 	76	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	131	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Gross Up Tax On Interest (50%)
	 	 	38	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	65	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 DIP Ending Balance 
	 	 	7,414	 	 	 	10,188	 	 	 	10,188	 	 	 	12,615	 	 	 	12,812	 	 	 	12,812	 	 	 	12,812	 	 	 	12,812	 	 	 	12,812	 
										
	 Availability 
	 	 	5,586	 	 	 	2,812	 	 	 	2,812	 	 	 	385	 	 	 	188	 	 	 	188	 	 	 	188	 	 	 	188	 	 	 	188	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 DIP Term Loan Commitment: Professional Fees & Other 
	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 	 	 	5,000	 
	 DIP Beginning Balance 
	 	 	2,630	 	 	 	3,681	 	 	 	3,681	 	 	 	3,681	 	 	 	3,681	 	 	 	4,753	 	 	 	4,753	 	 	 	4,753	 	 	 	4,753	 
	 Lender Advisor Fees
	 	 	1,000	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,000	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Interest: Professional Fees & Other
	 	 	34	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	48	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Gross Up Tax On Interest (50%)
	 	 	17	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	24	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 DIP Ending Balance
	 	 	3,681	 	 	 	3,681	 	 	 	3,681	 	 	 	3,681	 	 	 	4,753	 	 	 	4,753	 	 	 	4,753	 	 	 	4,753	 	 	 	4,753	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Availability 
	 	 	1,319	 	 	 	1,319	 	 	 	1,319	 	 	 	1,319	 	 	 	247	 	 	 	247	 	 	 	247	 	 	 	247	 	 	 	247	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Availability (Overadvance) 
	 				 				 				 				 				 				 				 				 			
	 Revolver
	 	 	—  	 	 	 	—  	 	 	 	470	 	 	 	—  	 	 	 	22,792	 	 	 	18,983	 	 	 	20,176	 	 	 	16,268	 	 	 	9,680	 
	 Term
	 	 	6,904	 	 	 	4,130	 	 	 	4,130	 	 	 	1,703	 	 	 	436	 	 	 	436	 	 	 	436	 	 	 	436	 	 	 	436	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net Availability (Overadvance) 
	 	 	6,904	 	 	 	4,130	 	 	 	4,601	 	 	 	1,703	 	 	 	23,228	 	 	 	19,418	 	 	 	20,612	 	 	 	16,704	 	 	 	10,116	 

	[1]	The preliminary saw mill bid economics estimates net proceeds available for distribution to the Lenders of approximately $76 million after reduction of certain potential cash
outlays, not including any transaction expenses which are built into the above budget. The amount for distribution assumes that the Company meets the buyer's requested target inventory. The inventory amounts and related valuation issues will
continue to be analyzed to determine what that impact, if any, might be. 

	[2]	Cash balance for the week ending 11/9/07 does not include approximately $2.4M lockbox receipts in TD depository accounts currently on hold. 

 Privileged Confidential 
 Attorney Client Work
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 Pope & Talbot Weekly Cash Forecast 
 Forecast - All Sites Consolidated 
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	 	 	ACTUALS	 	 	ROLLOVER	 	 	FORECAST	 
	Week in Fiscal Year	 	44	 	 	44	 	 	45	 	 	46	 	 	47	 	 	48	 	 	49	 	 	50	 	 	51	 	 	52	 
	Cash Forecast Week	 	1	 	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 	 	 Week
 Ending
	 
	Current Week Ending 11/2/2007	 	11/2/2007	 	 	11/2/2007	 	 	11/9/2007	 	 	11/16/2007	 	 	11/23/2007	 	 	11/30/2007	 	 	12/7/2007	 	 	12/14/2007	 	 	12/21/2007	 	 	12/28/2007	 
	 Operating Cash Flow 
	 				 				 				 				 				 				 				 				 				 			
											
	 Cash Receipts [1] 
	 				 				 				 				 				 				 				 				 				 			
	 Pulp Collections
	 	$	—  	 	 				 	$	7,038	 	 	$	7,633	 	 	$	11,037	 	 	$	11,623	 	 	$	7,485	 	 	$	10,009	 	 	$	10,451	 	 	$	16,898	 
	 Wood Collections
	 	 	—  	 	 				 	 	3,324	 	 	 	3,282	 	 	 	3,186	 	 	 	2,782	 	 	 	2,951	 	 	 	2,795	 	 	 	2,795	 	 	 	3,270	 
	 Other
	 	 	—  	 	 				 	 	718	 	 	 	421	 	 	 	1,950	 	 	 	283	 	 	 	713	 	 	 	416	 	 	 	637	 	 	 	350	 
		 	 	 	 	 				 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total Receipts 
	 	 	13,510	 	 				 	 	11,080	 	 	 	11,336	 	 	 	16,173	 	 	 	14,688	 	 	 	11,149	 	 	 	13,220	 	 	 	13,882	 	 	 	20,518	 
	 Bankruptcy Related Disbursements
	 				 				 				 				 				 				 				 				 				 			
	 Utility Deposits
	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	(2,000	)	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 
	 Prepetition Freight, Shippers & Warehousers
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1,800	)	 	 	(900	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Prepetition Critical Vendors
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1,250	)	 	 	(1,000	)	 	 	(500	)	 	 	—  	 	 	 	(250	)	 	 	(500	)	 	 	(500	)
	 Prepetition Lien Holders
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Prepetition Sales Agent
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(100	)	 	 	(100	)	 	 	(100	)	 	 	(100	)	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Management Incentive Plan
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Professional Fees
	 	 	(75	)	 	 	(445	)	 	 	(750	)	 	 	—  	 	 	 	(350	)	 	 	—  	 	 	 	(350	)	 	 	—  	 	 	 	(350	)	 	 	(1,744	)
	 Other
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total 
	 	 	(75	)	 	 	(445	)	 	 	(750	)	 	 	(5,150	)	 	 	(2,350	)	 	 	(600	)	 	 	(450	)	 	 	(250	)	 	 	(850	)	 	 	(2,244	)
	 Operating Cash Disbursements
	 				 				 				 				 				 				 				 				 				 			
	 Payroll
	 	$	—  	 	 	$	—  	 	 	$	(215	)	 	$	(3,589	)	 	$	(215	)	 	$	(3,762	)	 	$	(230	)	 	$	(3,589	)	 	$	(215	)	 	$	(3,537	)
	 Payroll Taxes and Benefits
	 	 	(1,003	)	 	 	(715	)	 	 	(97	)	 	 	(1,762	)	 	 	(97	)	 	 	(1,916	)	 	 	(104	)	 	 	(1,762	)	 	 	(97	)	 	 	(1,798	)
	 Logs & Fiber
	 	 	(1,096	)	 	 	—  	 	 	 	(3,235	)	 	 	(6,537	)	 	 	(4,846	)	 	 	(4,450	)	 	 	(5,707	)	 	 	(5,156	)	 	 	(4,759	)	 	 	(3,572	)
	 Utilities / Energy
	 	 	(1,033	)	 	 	(209	)	 	 	(884	)	 	 	(322	)	 	 	(1,242	)	 	 	(999	)	 	 	(1,257	)	 	 	(465	)	 	 	(1,524	)	 	 	(1,613	)
	 Freight
	 	 	(1,874	)	 	 	114	 	 	 	(1,234	)	 	 	(2,022	)	 	 	(2,073	)	 	 	(1,842	)	 	 	(1,500	)	 	 	(1,500	)	 	 	(1,500	)	 	 	(1,500	)
	 Chemicals
	 	 	(74	)	 	 	—  	 	 	 	(656	)	 	 	(1,002	)	 	 	(1,229	)	 	 	(904	)	 	 	(857	)	 	 	(895	)	 	 	(929	)	 	 	(881	)
	 Operating Supplies
	 	 	—  	 	 	 	(411	)	 	 	(412	)	 	 	(452	)	 	 	(431	)	 	 	(445	)	 	 	(419	)	 	 	(411	)	 	 	(478	)	 	 	(415	)
	 Maintenance Materials & Contract Services
	 	 	(25	)	 	 	—  	 	 	 	(439	)	 	 	(1,367	)	 	 	(1,806	)	 	 	(1,166	)	 	 	(1,047	)	 	 	(991	)	 	 	(1,152	)	 	 	(1,133	)
	 Lease Payments
	 	 	—  	 	 	 	(128	)	 	 	(149	)	 	 	(130	)	 	 	(130	)	 	 	(110	)	 	 	(161	)	 	 	(154	)	 	 	(126	)	 	 	(133	)
	 Lumber Duties
	 	 	—  	 	 	 	(1,296	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(948	)	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Pension Contribution
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Taxes (Property & Other)
	 	 	(60	)	 	 	(43	)	 	 	(5	)	 	 	(181	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Brussels Office
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(92	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(92	)
	 Insurance
	 	 	—  	 	 	 	(225	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(225	)	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Professional Fees
	 	 	—  	 	 	 	(30	)	 	 	(90	)	 	 	(30	)	 	 	(23	)	 	 	(14	)	 	 	(144	)	 	 	(14	)	 	 	(19	)	 	 	(17	)
	 Interest and Financing Costs on Revolver
	 	 	—  	 	 	 	(392	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(468	)	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Capital Expenditures
	 	 	—  	 	 	 	(128	)	 	 	(159	)	 	 	(483	)	 	 	(80	)	 	 	(80	)	 	 	(68	)	 	 	(291	)	 	 	(213	)	 	 	(73	)
	 Other
	 	 	(4	)	 	 	(302	)	 	 	(196	)	 	 	(450	)	 	 	(287	)	 	 	(268	)	 	 	(286	)	 	 	(271	)	 	 	(258	)	 	 	(370	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total Operating Disbursements 
	 	 	(5,168	)	 	 	(3,765	)	 	 	(7,773	)	 	 	(18,328	)	 	 	(12,460	)	 	 	(16,048	)	 	 	(13,420	)	 	 	(15,498	)	 	 	(11,269	)	 	 	(15,133	)
											
	 Total Disbursements
	 	$	(5,243	)	 	$	(4,210	)	 	$	(8,523	)	 	$	(23,478	)	 	$	(14,810	)	 	$	(16,648	)	 	$	(13,870	)	 	$	(15,748	)	 	$	(12,119	)	 	$	(17,377	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Net Cash Flow 
	 	$	8,268	 	 	$	(4,210	)	 	$	2,557	 	 	$	(12,142	)	 	$	1,362	 	 	$	(1,960	)	 	$	(2,722	)	 	$	(2,528	)	 	$	1,763	 	 	$	3,141	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 DIP Commitment Fee
	 	 	600	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Term Lender Advisor Fees
	 	 	(1,000	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1,000	)	 	 	—  	 	 	 	—  	 	 	 	—  	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Grand Total Net Cash Flow
	 	$	7,868	 	 	$	(4,210	)	 	$	2,557	 	 	$	(12,142	)	 	$	1,362	 	 	$	(1,960	)	 	$	(3,722	)	 	$	(2,528	)	 	$	1,763	 	 	$	3,141	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
			
	 	 	FORECAST	 	 	 	 
	Week in Fiscal Year	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	9	 	 	 	 
	Cash Forecast Week	 	10	 	 	11	 	 	12	 	 	13	 	 	14	 	 	15	 	 	16	 	 	17	 	 	18	 	 	 	 
	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	Week
Ending	 	 	 	 
	Current Week Ending 11/2/2007	 	1/4/2008	 	 	1/11/2008	 	 	1/18/2008	 	 	1/25/2008	 	 	2/1/2008	 	 	2/8/2008	 	 	2/15/2008	 	 	2/22/2008	 	 	2/29/2008	 	 	Totals	 
	 Operating Cash Flow 
	 				 				 				 				 				 				 				 				 				 			
											
	 Cash Receipts [1] 
	 				 				 				 				 				 				 				 				 				 			
	 Pulp Collections
	 	$	10,827	 	 	$	8,998	 	 	$	8,411	 	 	$	13,786	 	 	$	10,214	 	 	$	7,966	 	 	$	10,166	 	 	$	10,184	 	 	$	12,700	 	 	$	175,425	 
	 Wood Collections
	 	 	2,788	 	 	 	2,837	 	 	 	2,785	 	 	 	3,193	 	 	 	2,718	 	 	 	2,752	 	 	 	2,773	 	 	 	2,749	 	 	 	3,513	 	 	 	50,492	 
	 Other
	 	 	224	 	 	 	661	 	 	 	585	 	 	 	733	 	 	 	183	 	 	 	624	 	 	 	218	 	 	 	724	 	 	 	1,402	 	 	 	10,842	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total Receipts 
	 	 	13,839	 	 	 	12,496	 	 	 	11,780	 	 	 	17,712	 	 	 	13,116	 	 	 	11,341	 	 	 	13,157	 	 	 	13,657	 	 	 	17,615	 	 	 	236,760	 
	 Bankruptcy Related Disbursements 
	 				 				 				 				 				 				 				 				 				 			
	 Utility Deposits
	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	(2,000	)
	 Prepetition Freight, Shippers & Warehousers
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(2,700	)
	 Prepetition Critical Vendors
	 	 	—  	 	 	 	—  	 	 	 	(500	)	 	 	(500	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(5,000	)
	 Prepetition Lien Holders
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Prepetition Sales Agent
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(400	)
	 Management Incentive Plan
	 	 	—  	 	 	 	—  	 	 	 	(376	)	 	 	—  	 	 	 	(436	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(812	)
	 Professional Fees
	 	 	(350	)	 	 	—  	 	 	 	(350	)	 	 	(2,064	)	 	 	(1,975	)	 	 	—  	 	 	 	(350	)	 	 	(3,612	)	 	 	(4,140	)	 	 	(16,830	)
	 Other
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total 
	 	 	(350	)	 	 	—  	 	 	 	(1,226	)	 	 	(2,564	)	 	 	(2,411	)	 	 	—  	 	 	 	(350	)	 	 	(3,612	)	 	 	(4,140	)	 	 	(27,742	)
	 Operating Cash Disbursements
	 				 				 				 				 				 				 				 				 				 			
	 Payroll
	 	$	(250	)	 	$	(3,537	)	 	$	(1,297	)	 	$	(2,685	)	 	$	(1,286	)	 	$	(2,466	)	 	$	(1,286	)	 	$	(1,488	)	 	$	(2,264	)	 	$	(31,911	)
	 Payroll Taxes and Benefits
	 	 	(113	)	 	 	(1,736	)	 	 	(638	)	 	 	(1,318	)	 	 	(686	)	 	 	(1,209	)	 	 	(624	)	 	 	(732	)	 	 	(1,163	)	 	 	(16,564	)
	 Logs & Fiber
	 	 	(3,128	)	 	 	(5,578	)	 	 	(2,363	)	 	 	(6,773	)	 	 	(4,197	)	 	 	(2,831	)	 	 	(3,091	)	 	 	(6,274	)	 	 	(8,578	)	 	 	(81,075	)
	 Utilities / Energy
	 	 	(811	)	 	 	(756	)	 	 	(935	)	 	 	(2,274	)	 	 	(954	)	 	 	(559	)	 	 	(851	)	 	 	(1,316	)	 	 	(1,828	)	 	 	(18,798	)
	 Freight
	 	 	(1,514	)	 	 	(1,518	)	 	 	(1,518	)	 	 	(1,518	)	 	 	(1,551	)	 	 	(1,236	)	 	 	(1,236	)	 	 	(1,236	)	 	 	(1,236	)	 	 	(25,619	)
	 Chemicals
	 	 	(923	)	 	 	(873	)	 	 	(923	)	 	 	(883	)	 	 	(940	)	 	 	(1,001	)	 	 	(1,025	)	 	 	(967	)	 	 	(992	)	 	 	(15,882	)
	 Operating Supplies
	 	 	(503	)	 	 	(461	)	 	 	(422	)	 	 	(458	)	 	 	(457	)	 	 	(291	)	 	 	(369	)	 	 	(311	)	 	 	(294	)	 	 	(7,441	)
	 Maintenance Materials & Contract Services
	 	 	(798	)	 	 	(819	)	 	 	(1,064	)	 	 	(862	)	 	 	(517	)	 	 	(221	)	 	 	(236	)	 	 	(221	)	 	 	(226	)	 	 	(14,064	)
	 Lease Payments
	 	 	(117	)	 	 	(141	)	 	 	(124	)	 	 	(127	)	 	 	(137	)	 	 	(47	)	 	 	(45	)	 	 	(45	)	 	 	(47	)	 	 	(2,050	)
	 Lumber Duties
	 	 	(927	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(981	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(4,152	)
	 Pension Contribution
	 	 	—  	 	 	 	—  	 	 	 	(95	)	 	 	—  	 	 	 	(1,464	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1,559	)
	 Taxes (Property & Other)
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(181	)	 	 	—  	 	 	 	—  	 	 	 	(410	)
	 Brussels Office
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(184	)
	 Insurance
	 	 	(313	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(763	)
	 Professional Fees
	 	 	(16	)	 	 	(143	)	 	 	(19	)	 	 	(24	)	 	 	(26	)	 	 	(22	)	 	 	(24	)	 	 	(22	)	 	 	(24	)	 	 	(700	)
	 Interest and Financing Costs on Revolver
	 	 	(501	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(426	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1,787	)
	 Capital Expenditures
	 	 	(5	)	 	 	(31	)	 	 	(31	)	 	 	(109	)	 	 	(31	)	 	 	(31	)	 	 	(42	)	 	 	(47	)	 	 	(44	)	 	 	(1,947	)
	 Other
	 	 	(389	)	 	 	(257	)	 	 	(242	)	 	 	(206	)	 	 	(206	)	 	 	(138	)	 	 	(146	)	 	 	(138	)	 	 	(149	)	 	 	(4,560	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Total Operating Disbursements 
	 	 	(10,307	)	 	 	(15,850	)	 	 	(9,669	)	 	 	(17,236	)	 	 	(13,860	)	 	 	(10,052	)	 	 	(9,155	)	 	 	(12,796	)	 	 	(16,844	)	 	 	(229,466	)
											
	 Total Disbursements
	 	$	(10,657	)	 	$	(15,850	)	 	$	(10,895	)	 	$	(19,800	)	 	$	(16,271	)	 	$	(10,052	)	 	$	(9,505	)	 	$	(16,408	)	 	$	(20,984	)	 	$	(257,208	)
	 Net Cash Flow 
	 	$	3,182	 	 	$	(3,355	)	 	$	885	 	 	$	(2,088	)	 	$	(3,155	)	 	$	1,289	 	 	$	3,652	 	 	$	(2,751	)	 	$	(3,370	)	 	$	(20,448	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 DIP Commitment Fee
	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 
	 Term Lender Advisor Fees
	 	 	(1,000	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(1,000	)	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(3,000	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Grand Total Net Cash Flow
	 	$	2,182	 	 	$	(3,355	)	 	$	885	 	 	$	(2,088	)	 	$	(4,155	)	 	$	1,289	 	 	$	3,652	 	 	$	(2,751	)	 	$	(3,370	)	 	$	(23,448	)
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	[1]	Wood and pulp receipts in weeks one and two are forecasted on a consolidated basis. 

 Privileged Confidential 
 Attorney Work Client Product 
  

 1 of 1 

 SCHEDULE M-1: Midway Facility 
  

	1.	Parcel Identifier: 004-293-771 

 That part of district
lot 637 shown red on plan B5171, Similkameen Division, Yale District 
  

	2.	Parcel Identifier: 012-585-092 

 Parcel C (Plan
A149) of district lot 637, Similkameen Division, Yale District 
  

	3.	Parcel Identifier: 014-781-549 

 Parcel B on plan
B6079, district lot 424, Similkameen Division, Yale District 
  

	4.	Parcel Identifier: 016-358-198 

 Lot A, district
lots 273S, 637, 2647 and 4170S, Similkameen Division, Yale District, plan 43625 
  

	5.	Parcel Identifier: 014-782-049 

 That part district
lot 424 shown red on plan B3932, Similkameen Division, Yale District 
  

	6.	Parcel Identifier: 014-781-557 

 Parcel D on plan
B7088, district lot 424, Similkameen Division, Yale District 
  

	7.	Parcel Identifier: 017-654-467 

 That part of district
lot 637, Similkameen Division, Yale District shown as Parcel A on plan B5388 
  

	8.	Parcel Identifier: 012-585-050 

 Parcel B (plan
A149) of district lot 637, Similkameen Division, Yale District 
  

 9 

 SCHEDULE P-1: Pre-Petition Bank Product Agreements 
  

	1.	Hedge Agreement with Wells Fargo Bank, N.A. dated as of July 26, 2007 in the amount of $10,000,000 with an expiration date of October 31, 2007. 

 

	2.	Hedge Agreement with Wells Fargo Bank, N.A. dated as of July 31, 2007 in the amount of $30,000,000 with an expiration date of November 1, 2007. 

 

	3.	Hedge Agreement with Wells Fargo Bank, N.A. dated as of July 31, 2007 in the amount of $30,000,000 with an expiration date of November 2, 2007. 

 

 10 

 SCHEDULE 2.5(A): Other Statutory Liabilities1 
  

			
	 1. Employee Withholding (including tax, EI and CPP):
	  	$                                      
  
		
	 2. Pension Obligations:
	  	$                                      
  
		
	 3. Employee Wages
	  	$                                      
  
		
	 4. Vacation Pay
	  	$                                      
  
		
	 5. Workers' Compensation
	  	$                                      
  
		
	 6. Municipal Taxes
	  	$                                      
  
		
	 7. Goods and Services Tax
	  	$                                      
  
		
	 8. Provincial Sales Tax (Social Services Tax)
	  	$                                      
  
		
	 9. Employer Health Tax (Medicare Protection Act)
	  	$                                      
  
		
	 10. Corporations Tax
	  	$                                      
  
		
	 11. Income Tax
	  	$                                      
  
		
	 12. Stumpage Charges
	  	$                                      
  
		
	 13. Royalties
	  	$                                      
  
		
	 14. Woodworkers liens
	  	$                                      
  
		
	 15. Withholding Tax (e.g. on interest etc)
	  	$                                      
  
		
	 16. Liens under the Forest Act (if not included above)
	  	$                                      
  
		
	 17. Any other not listed above:
	  	$                                      
  

	 1
	 “Other Statutory Liabilities” means “accrued and unpaid statutory
liabilities of the Loan Parties which may result in claims that have lien priority or priority of payment over all or any portion of the Obligations (including, without limitation, woodworkers' liens), are a statutory trust and/or which are legally
required to be paid prior to the repayment in full of such Obligations, other than the amount of those liabilities included in the Carve-Out” 

  

 11 

 SCHEDULE 4.1(b): Contingent Obligations and Dispositions since December 31, 2006 
 None. 
  

 12 

 SCHEDULE 4.10: Taxes 
  

	1.	Export tax payment to Receiver General of Canada for export tax payment on lumber imported into the U.S: the export tax due on October 31, 2007 on lumber imported into the U.S.
in September 2007 was paid on November 9, 2007, an interest assessment of approximately C$2,700.00 is still outstanding. The export tax on lumber imported into the U.S. in October 2007 is approximately C$870,000 and the payment is due on
November 30, 2007. The export tax on lumber imported into the U.S. through November 15, 2007 is approximately C$250,600 and the payment is due on December 31, 2007. 

  

	2.	Multnomah County (Oregon) property taxes for Pope & Talbot, Inc for the fiscal year July 1, 2007 to June 30, 2008 of $11,997.16 of which a minimum payment of
$3,999.05 was paid on November 14, 2007, the next payment of $3,999.05 is due by February 15, 2008 and the final payment of $3,999.06 is due by May 15, 2008. 

  

	3.	Linn County (Oregon) property taxes for the Halsey pulp mill for the fiscal year July 1, 2007 to June 30, 2008 of $536,364.36 of which a minimum payment of $178,788.12 was
paid on November 14, 2007, the next payment of $178,788.12 is due by February 15, 2008 and the final payment of $178,788.12 is due by May 15, 2008. 

  

	4.	South Dakota sales & use tax audit on Spearfish LP for the period 5/1/04 - 8/31/2007 resulted in a total assessment of $6,257 that is to be paid in 30 days.

  

	5.	Ongoing Canadian income tax audit of 2003 and 2004 taxable years of PTL. 

  

	6.	Grand Forks Railway Company (“GFRC”) has not filed any tax returns on the basis that it holds its property and assets, earns income and incurs liabilities and expenses all
as agent for and nominee of Pope & Talbot, Ltd. and Welco Management Limited Partnership. Pope & Talbot, Inc. has reported for tax purposes its share of the property, assets, liabilities, income and expenses of GFRC.

  

 13 

 SCHEDULE 4.13: ERISA 
 U.S. Plan Liabilities 
 Item (x): 
 The Pope & Talbot, Inc. Pension Plan is the only single-employer Plan subject to Title IV of ERISA. 
 PBO as of
9/30/2006 = $57,345,000 
 ABO as of 9/30/2006 = $52,625,000 
 Current Liability as of 1/1/2007 = $53,846,928 
 Market Value of Assets as of 1/1/2007 = $55,419,188 
 Current Liability Surplus as of 1/1/2007 = $1,572,260 
 Current Liability
Funded Ratio as of 1/1/2007 = 103% 
 Item (z): 
 Salaried
Retiree Medical Plan of Pope & Talbot, Inc. – APBO (@ 5.85%) as of 1/1/2007: 
 Medical - $3,744,057 
 Life - $35,696 
 Total - $3,779,753

 Halsey Hourly Retiree Medical Plan of Pope & Talbot, Inc. – APBO as of 8/14/2007: 
 Total @ 5.75% - $19,549,000 
 Total @ 6.00% -
$18,881,000 
  

 14 

 SCHEDULE 4.14: Canadian Pension Plan Liabilities 
 PART 1 - CANADIAN PENSION PLAN LIABILITIES 
 This Part 1 sets
out the current funding status as of December 31, 2006 of the Canadian Pension Plans that have a defined benefit component, together with the payment schedule as of December 31, 2006 required at law to reduce any unfunded liabilities. All
amounts are in Canadian dollars: 
 1) Pope & Talbot Ltd. Pension Plan For Permanent Salaried Employees 
 Summary of Results2 

  

									
	 Going-Concern Financial Position
	  	31.12.2006	 	 	31.12.2003	 
	 Actuarial value of assets
	  	$	61,175,000	2	 	$	40,650,000	 
	 Actuarial liability
	  	$	72,131,000	2	 	$	58,211,000	 
		  	 	 	 	 	 	 	 
	 Funding excess (Unfunded liability)
	  	$	(10,956,000	)	 	$	(17,561,000	)
			
	 Solvency Financial Position
	  	31.12.2006	 	 	131.12.2003	 
	 Adjusted solvency assets
	  	$	70,055,000	 	 	$	48,354,000	 
	 Solvency liability
	  	$	70,167,000	 	 	$	52,236,000	 
		  	 	 	 	 	 	 	 
	 Solvency excess (deficiency)
	  	$	(112,000	)	 	$	(3,882,000	)
	 Solvency ratio
	  	 	86	%	 	 	78	%
			
	 Wind-up Financial Position
	  	31.12.2006	 	 	31.12.2003	 
	 Market value of assets net of termination expenses
	  	$	60,224,000	 	 	$	40,500,000	 
	 Total wind-up liability
	  	$	70,167,000	 	 	$	52,236,000	 
		  	 	 	 	 	 	 	 
	 Wind-up excess (deficiency)
	  	$	(9,943,000	)	 	$	(11,736,000	)
			
	 Funding Requirements (annualized)
	  	2007	 	 	2004	 
	 Total current service cost
	  	$	1,958,000	 	 	$	2,003,000	 
	 Estimated members’ required contributions
	  	$	0	 	 	$	0	 
	 Provisions for administrative expenses
	  	$	300,000	 	 	$	0	 
		  	 	 	 	 	 	 	 
	 Estimated employers’ current service cost
	  	$	2,258,000	 	 	$	2,003,000	 
	 Employers’ current service costs as a percentage of members pensionable earnings
	  	 	16.8	%	 	 	12.7	%

	 2
	 Report on the Actuarial Valuation for Funding Purposes as at December 31,
2006 prepared by Mercer Human Resource Consulting dated September 27, 2007 (the “Salaried 2006 Actuarial Valuation”) at page 1 -2. 

	 2.
	 Including defined contribution (“DC”) account balances.

  

 15 

							
	 Minimum special payments
	  	$	2,752,000	  	$	2,726,000
	 Estimated minimum employer contribution for year
	  	$	5,010,000	  	$	4,729,000
	 Estimated maximum employer contribution for year
	  	$	13,214,000	  	$	19,564,000

 Special Payments3 
 The following minimum quarterly special payments must be made to the plan to
eliminate the unfunded liability and any solvency deficiency as at December 31, 2006, within the periods prescribed by the BC Pension Benefits Standards Act and Regulations (the “PBSA”). 
 Minimum Quarterly Special Payments 

  

											
	 Type of Deficit
	  	Effective Date	  	Special
Payment	  	Last Payment	  	Present Value of
Remaining Payments
as at 31.21.2006
	 Unfunded Liability
	  	December 31, 2003	  	$	456,000	  	June 30, 2014	  	$	15,632,000
	 Solvency Deficiency
	  	December 31, 2003	  	$	225,500	  	December 31, 2008	  	$	8,116,000
	 Solvency Deficiency
	  	December 31, 2006	  	$	6,500	  	December 31, 2011	  	$	1,715,000
		  	 	  	 	 	  	 	  	 	 
	 Total
	  		  	$	688,000	  		  		
		  	 	  	 	 	  	 	  	 	 

 Employer DB Contributions4 
 There is an unfunded liability of $10,956,000, and a solvency ratio of 86% as
at December 31, 2006. As such, the Salaried 2006 Actuarial Valuation recommends that Pope & Talbot Ltd. make quarterly contributions to the plan from 2007 to 2009, as follows: 
 Quarterly Employer Contributions 

 For current service: 16.8% of members’ pensionable earnings 
 Minimum special payments for unfunded liability: $456,000

 Minimum additional special payments for solvency: $232,000 for 2007 and 2008, and $6,500 for 2009 
  

 On the basis of the members’ estimated
pensionable earnings, the minimum total employer contribution for 2007 is estimated to be $5,010,000, or $1,252,500 per quarter. 

	 3
	 Salaried 2006 Actuarial Valuation at page 14. 

	 4
	 Salaried 2006 Actuarial Valuation at page 15. 

 

 16 

 Employer DC Contributions5 
 The Salaried 2006 report recommends that the Employer DC contributions should
be calculated as 7.0% of the members’ pensionable earnings. 
 2) Pope & Talbot Ltd. Retirement Plan for Employees Represented By the
Canadian Merchant Service Guild 
 Summary of Results6 

  

									
	 Going-Concern Financial Position
	  	31.12.2006	 	 	31.12.2005	 
	 Actuarial value of assets
	  	$	7,927,400	 	 	$	6,686,900	 
	 Actuarial liability
	  	$	8,674,400	 	 	$	8,565,700	 
		  	 	 	 	 	 	 	 
	 Funding excess/(Unfunded Liability)
	  	$	(747,000	)	 	$	(1,878,800	)
			
	 Solvency Financial Position
	  	31.12.2006	 	 	31.12.2005	 
	 Solvency assets
	  	$	7,877,400	 	 	$	6,636,900	 
	 Solvency asset adjustment
	  	$	2,073,100	 	 	$	1,427,800	 
	 Solvency liability
	  	$	9,950,500	 	 	$	9,531,900	 
		  	 	 	 	 	 	 	 
	 Solvency excess/(deficiency)
	  	$	0	 	 	$	(1,467,200	)
	 Solvency ratio
	  	 	79	%	 	 	70	%
			
	 Wind-up Financial Position
	  	31.12.2006	 	 	31.12.2005	 
	 Market value of assets net of termination expenses
	  	$	7,877,400	 	 	$	6,636,900	 
	 Total wind-up liability
	  	$	9,950,500	 	 	$	9,531,900	 
		  	 	 	 	 	 	 	 
	 Wind-up excess (deficiency)
	  	$	(2,073,100	)	 	$	(2,895,000	)
			
	 Funding Requirements (annualized)
	  	2007	 	 	2006	 
	 Total current service cost
	  	$	182,900	 	 	$	215,500	 
	 Estimated members’ required contributions
	  	$	0	 	 	$	0	 
	 Provision for administrative expenses
	  	$	60,000	 	 	$	60,000	 
		  	 	 	 	 	 	 	 
	 Estimated employers’ current service cost
	  	$	242,900	 	 	$	275,500	 
	 Employers’ current service costs as a percentage of members pensionable earning
	  	 	17.3	%	 	 	16.6	%

	 5
	 Salaried 2006 Actuarial Valuation at page 15. 

	 6
	 Report on the Actuarial Valuation for Funding Purposes as at December 31,
2006 prepared by Mercer Human Resource Consulting dated October 19, 2007 (the “CMSG 2006 Actuarial Valuation”) at page 1 -2. 

  

 17 

						
	 Minimum special payments
	  	$	615,400	  	778,400
	 Estimated minimum employer contribution for year
	  	$	858,300	  	1,053,900
	 Estimated maximum employer contribution for year
	  	$	2,316,000	  	3,170,500

 Special Payments7 
 The following minimum quarterly special payments must be made to the plan to
eliminate the unfunded liability and any solvency deficiency as at December 31, 2006, within the periods prescribed by the PBSA. 
 Minimum Quarterly Special Payments 

  

											
	 Type of Deficit
	  	Effective Date	  	Special
Payment	  	Last Payment	  	Present Value of
Remaining Payments
as of 31.12.2006
	 Unfunded Liability
	  	December 31, 2002	  	$	43,400	  	December 31, 2011	  	$	774,770
	 Solvency Deficiency
	  	December 31, 2002	  	$	56,500	  	June 30, 2007	  	$	219,900
	 Solvency Deficiency
	  	December 31, 2005	  	$	82,200	  	December 31, 2010	  	$	1,199,800
		  	 	  	 	 	  	 	  	 	 
	 Total
	  		  	$	182,100	  		  	$	2,194,400

 Employer DB Contributions8 
 There is an unfunded liability of $747,000, and a solvency ratio of 79% as at
December 31, 2006. As such, the CMSG 2006 Actuarial Valuation recommends that Pope & Talbot Ltd. make quarterly contributions to the plan from 2007 to 2009, as follows: 
 Quarterly Employer Contributions 

 For current service: 17.3% of members’ pensionable earnings 
 Minimum special payments for unfunded liability: $43,400

 Minimum additional special payments for solvency: $138,700 per quarter until June 30, 2007, and $82,200 per quarter from July 1,
2007 
  

 On the basis of the
members’ estimated pensionable earnings, the minimum estimated total employer contribution for 2007 in respect of the DB component of the plan is $858,300 or $242,825 per quarter for the first two quarters of 2007 and $186,325 per quarter for
the last two quarters of 2007. 
 Employer DC Contributions9 

	 7
	 CMSG 2006 Actuarial Valuation at page 14. 

	 8
	 CMSG 2006 Actuarial Valuation at page 15. 

	 9
	 CMSG 2006 Actuarial Valuation at page 15. 

  

 18 

 The CMSG 2006 report recommends that the Employer DC contributions should be calculated as 7.0% of the members’
pensionable earnings. As at September 30, 2007, no members have entered the DC provision of the plan. 
  

 19 

 PART 2 – OTHER CANADIAN BENEFIT PLAN LIABILITIES 
 In addition to the Canadian Pension Plan liabilities outlined in Part 1 above, Pope & Talbot Ltd. also has the following liabilities: 
 SUPPLEMENTARY PENSION PLANS & BENEFITS 
 Pope &
Talbot Ltd. also has the following supplementary pension plans paid from general assets. The benefit obligations follow: All amounts are in Canadian dollars. 
  

				
	 Supplementary Plan
	  	Benefit Obligation in
Canadian dollars	 
	 Pope & Talbot Ltd. Supplementary Executive Pension Plan (terminated on 10/29/07)
	  	937,400	10
	 Pope & Talbot Ltd. Juke’s Executive Plan (terminated on 10/29/07)
	  	84,000	9
	 Supplementary Arrangement for Mr. G. Kinakin (terminated on 10/29/07)
	  	50,200	9
	 Interior Bridge Benefits
	  	1,616,300	11
	 Supplementary Retirement Plan for Nanaimo Division (terminated on 10/29/07)
	  	452,500	9
	 Nanaimo Bridge Benefits
	  	3,692,000	10
	 Mackenzie Bridge Benefits
	  	628,000	10

 POST RETIREMENT NON-PENSION BENEFITS 
 Pope & Talbot Ltd. also has a post retirement non-pension benefit for each of the three operating divisions: Interior, Nanaimo and Mackenzie. Pope & Talbot Ltd. also has a post retirement non-pension
benefit for the Retirement Plan for Employees Represented by the Canadian Merchant Guild. The benefit obligations are set out below. All amounts are in Canadian dollars: 
  

			
	 Supplementary Plan
	  	Benefit Obligation at
December 31, 2006 in
Canadian dollars
	 Wood Products
	  	901,600
	 Nanaimo
	  	29,969,000
	 Mackenzie
	  	7,451,000

	 10
	 As at December 31, 2005 pursuant to a report under FAS Nos. 87, 88, 106 and
132(R) for Fiscal Year and Estimate of Expense for 2005 Fiscal Year by Mercer Human Resource Consulting, December 22, 2006 (the “December 22, 2005 Report”). 

	 11
	 As at December 31, 2006. 

  

 20 

 SCHEDULE 4.16: Subsidiaries, Outstanding Options, etc. 
  

							
	 Company Name
	 	 Jurisdiction
 of
 Organization
	 	 Percentage of Capital Stock Owned by
 Each Loan Party and Subsidiaries
	 	 Outstanding
 Subscriptions,
 Options, etc.

	 Pope & Talbot,
 Inc.
	 	Delaware	 		 	NONE
				
	 P&T Power
 Company
	 	Oregon	 	Pope & Talbot, Inc. – 100%	 	NONE
				
	 Penn Timber,
 Inc.
	 	Oregon	 	Pope & Talbot, Inc. – 100%	 	NONE
				
	 Pope & Talbot
 Spearfish
 Limited
 Partnership
	 	South Dakota	 	 Pope & Talbot Ltd. – 99.9% G.P.
 P&T Funding Ltd – 0.1 % L.P.
	 	NONE
				
	 Pope & Talbot
 Relocation
 Services, Inc.
	 	Oregon	 	Pope & Talbot, Inc. – 100%	 	NONE
				
	 Pope & Talbot
 Pulp Sales U.S.,
 Inc.
	 	Delaware	 	Pope & Talbot, Inc. – 100%	 	NONE
				
	 Pope & Talbot
 Lumber Sales,
 Inc.
	 	Delaware	 	Pope & Talbot, Inc. – 100%	 	NONE
				
	 Pope & Talbot
 Ltd.
	 	Canada	 	Pope & Talbot, Inc. – 100%	 	NONE
				
	 P&T Finance
 One Limited
 Partnership
	 	 British
 Columbia
	 	 Pope & Talbot, Inc. – 99% L.P.
 Penn Timber Inc. – 1% G.P.
	 	NONE
				
	 P&T Finance
 Two
 Limited
 Partnership
	 	 British
 Columbia
	 	 P&T Finance One Limited Partnership – 99% L.P.
 Penn Timber Inc. – 1% G.P.
	 	NONE
				
	 P&T Finance
 Three LLC
	 	Oregon	 	Pope & Talbot, Inc. – 100%	 	NONE
				
	 Mackenzie Pulp
 Land Ltd.
	 	 British
 Columbia
	 	Pope & Talbot Ltd. – 100%	 	NONE
				
	 P&T LFP
 Investment
 Limited
 Partnership
	 	 British
 Columbia
	 	 Pope & Talbot Ltd. – 99.9% L.P.
 P&T Funding Ltd. – 0.1% G.P.
	 	NONE
				
	 P&T Factoring
 Limited
 Partnership
	 	 British
 Columbia
	 	 Pope & Talbot, Inc. – 89.9% L.P.
 Pope & Talbot Pulp Sales U.S., Inc. – 10% G.P.
 Pope & Talbot Ltd. – 0.1% L.P.
	 	NONE
				
	 P&T Funding
 Ltd.
	 	 British
 Columbia
	 	Pope & Talbot, Inc. – 100%	 	NONE
				
	 Pope & Talbot
 Pulp Sales
 Europe LLC
	 	Belgium	 	 Pope & Talbot Pulp Sales U.S., Inc. – 89%
 Pope & Talbot, Inc. – 11%
	 	NONE

  

 21 

 SCHEDULE 4.18: Environmental Matters 
  

	1.	Pope & Talbot Ltd. – Mackenzie Pulp Operations: In June 2002, Pope & Talbot, Inc. was requested by Environment Canada, based on detection
of environmental contamination in an effluent treatment pond at the Mackenzie pulp mill, to remediate the basin. The environmental contamination occurred before Pope & Talbot, Inc. acquired the mill as a result of a manufacturing process
that was discontinued at the mill in 1993. Pope & Talbot, Inc. has worked with British Columbia’s Ministry of Environment to develop an appropriate remediation strategy. Pope & Talbot, Inc. performed site testing and a series
of partial basin dredges in 2003 and extensive dredging in 2004 and in 2005. The liability balance was $0.7 million at December 31, 2005, representing the estimated cost of removing the remaining sources of water contamination. Remediation
costs charged to the liability in 2005 totaled $0.3 million. Further dredges are planned for 2007 to complete the remediation. 

  

	2.	St. Helens, Oregon: In 1992, the Oregon Department of Environmental Quality (ODEQ), based on detection of creosote and hydrocarbon contamination, determined that a vacant
industrial site formerly owned by Pope & Talbot, Inc. in St. Helens, Oregon, required further investigation. Pope & Talbot, Inc. is currently participating in the investigation phase of this site. In 2006, Pope & Talbot,
Inc.’s ecological and human health risk assessments were approved by ODEQ. The remediation liability balance was $5.8 million and $5.9 million at June 30, 2007 and December 31, 2006, respectively, representing the most likely
estimated future remediation and monitoring costs at this site. The liability is for the estimated costs of soil, sediment and groundwater remediation and post-remediation monitoring costs, and is based on Pope & Talbot, Inc.’s
assessment of the nature and extent of site contamination and remediation methodology. Site testing costs charged against the liability in the first six months of 2007 totaled $0.1 million. Pope & Talbot, Inc. is currently conducting a
feasibility study to define site remedial action goals and expects the majority of the remediation costs to be incurred in 2009 and 2010, with post-remediation monitoring costs to begin in 2011 and to continue for 30 years. 

 

	3.	 Port Gamble, Washington: Pope & Talbot, Inc. is working with the Washington Department of Ecology (WDOE) to remediate Pope & Talbot,
Inc.’s former mill site sediments and surrounding area at Port Gamble, Washington. WDOE requested that Pope & Talbot, Inc. perform an investigation of sediments in the bay adjacent to the mill site to determine the extent of wood waste
accumulation. Remediation dredging was completed in 2003 as part of the sediment clean up action plan submitted to WDOE. Pope & Talbot, Inc. received approval of its remediation plan from WDOE in April 2004 and submitted a sediment baseline
study in October 2004. The sediment baseline study indicated that the site was approximately 80 percent recovered. In November 2004, Pope & Talbot, Inc. received a letter from WDOE requesting additional study and in the fourth quarter of
2006 concluded discussions with WDOE and agreed on further remediation 

  

 22 

	 	 
steps for the site. An interim dredge and sediment testing was completed in the first quarter of 2007. The liability balance for this site was $1.2 million
and $1.4 million at June 30, 2007 and December 31, 2006, respectively, representing the low end of the range of estimated future remediation and monitoring costs at this site and a related site previously leased as described below. The
liability is for the estimated cost of dredging, sediment remediation and post-remediation monitoring costs, and is based on Pope & Talbot, Inc.’s preliminary assessment of the nature and extent of site contamination and remediation
methodology. Pope & Talbot, Inc. is conducting a risk investigation and feasibility study to define what, if any, further actions are required to satisfy a final consent decree and final closure of the remediation. Costs charged against the
liability in the first six months of 2007 totaled $0.2 million. If WDOE requires more extensive remediation or monitoring, it is reasonably possible that up to $1.0 million of additional remediation and monitoring costs could be incurred based on
currently available information and analysis. Pope & Talbot, Inc. expects to incur the majority of the remediation costs in 2007 and 2008, with post-remediation monitoring costs to begin in 2009 and continue for eight years.

  

	4.	Pope & Talbot, Inc. formerly leased a 72-acre site adjacent to the Port Gamble sawmill site as a log raft holding area from the Washington Department of Natural Resources
(WDNR). In 2003, the WDOE issued a “no further action” letter for the site declaring that there were negligible environmental effects from wood debris sediments at the log raft holding area. In 2004, WDNR advised Pope & Talbot,
Inc. that it was proposing additional site investigations as a condition precedent to final termination of the lease. Pope & Talbot, Inc. is in discussions with the WDNR and WDOE on a resolution of the lease area issues.

  

	5.	In June 2002, Pope & Talbot, Inc. was requested by Environment Canada, based on detection of environmental contamination in an effluent treatment pond at the Mackenzie pulp
mill, to remediate the basin. The environmental contamination occurred before Pope & Talbot, Inc. acquired the mill as a result of a manufacturing process that was discontinued at the mill in 1993. Pope & Talbot, Inc. has worked
with British Columbia’s Ministry of Environment to develop an appropriate remediation strategy. Pope & Talbot, Inc. performed site testing and a series of partial basin dredges in 2003 and extensive dredging in 2004 and in 2005. The
liability balance was $0.7 million at June 30, 2007 and December 31, 2006 representing the estimated cost of removing the remaining sources of water contamination. Based on test results, Pope & Talbot, Inc. does not plan to dredge
in 2007 and believes that future dredges may be required to complete the remediation. 

  

	6.	Those “Recognized Environmental Conditions” and “environmental compliance” issues identified in the Executive Summary of the Draft Phase I Environmental
Site Assessment for Pope & Talbot, 1510 West Oliver Street, Spearfish, South Dakota prepared for Schulte Roth & Zabel LLP dated May 2006. 

  

 23 

	7.	Those “Recognized Environmental Conditions” and “best management practice and compliance issues: identified in the Executive Summary of the Draft Phase I
Environmental Site Assessment for Pope & Talbot, Inc., Halsey Pulp Mill, Halsey, Oregon prepared for Schulte Roth & Zabel LLP dated May 2006. 

  

	8.	Those “significant actual or potential environmental liability issues” and “potential environmental operational compliance issues” identified in the Executive
summaries of the following reports: 

  

	 	•	 	 Draft Phase I Environmental Site Assessment for Pope & Talbot Ltd., Castlegar Division, 2700 Arrow Lakes Drive, Castlegar, British Columbia prepared
for Schulte Roth & Zabel LLP dated May 2006; 

  

	 	•	 	 Draft Phase I Environmental Site Assessment for Pope & Talbot Ltd., Fort St. James Division, 300 Takla Road, Fort St. James, British Columbia prepared
for Schulte Roth & Zabel LLP dated May 2006; 

  

	 	•	 	 Draft Phase I Environmental Site Assessment for Pope & Talbot Ltd., Grand Forks Division, 570 68th Avenue, Grand Forks, British Columbia prepared for
Schulte Roth & Zabel LLP dated May 2006; 

  

	 	•	 	 Draft Phase I Environmental Site Assessment for Pope & Talbot Ltd., Harmac Pulp Operations, Nanaimo, British Columbia prepared for Schulte
Roth & Zabel LLP dated May 2006; 

  

	 	•	 	 Draft Phase I Environmental Site Assessment for Pope & Talbot Ltd., Mackenzie Pulp Operations, Mackenzie, British Columbia prepared for Schulte
Roth & Zabel LLP dated May 2006; and 

  

	 	•	 	 Draft Phase I Environmental Site Assessment for Pope & Talbot Ltd., Midway Division, 1160 Highway 3 West, Midway, British Columbia prepared for
Schulte Roth & Zabel LLP dated May 2006. 

  

 24 

 SCHEDULE 4.20: PPSA Filing Jurisdictions 
  

	1.	District of Columbia Department of Consumer and Regulatory Affairs 

 a) Pope & Talbot Ltd. 
 b) P&T Finance One Limited Partnership 
 c) P&T Finance Two Limited Partnership 
 d) Mackenzie Pulp Land Ltd. 
 e) P&T LFP Investment Limited Partnership 
 f) P&T Factoring Limited Partnership 
 g)
P&T Funding Ltd. 
  

	2.	British Columbia 

 a) Pope & Talbot Ltd.

 b) P&T Finance One Limited Partnership 
 c) P&T Finance Two Limited Partnership 
 d) Mackenzie Pulp Land Ltd. 
 e) P&T LFP Investment Limited Partnership 
 f) P&T Factoring Limited Partnership 
 g) P&T Funding Ltd. 
 h) Pope & Talbot, Inc. 
 i)
Pope & Talbot Spearfish Limited Partnership 
 j) Penn Timber, Inc. 
 k) Pope & Talbot Relocation Services, Inc. 
 l) P&T Power Company 
 m) Pope & Talbot Pulp Sales U.S., Inc. 
 n) Pope & Talbot Lumber Sales, Inc. 
 o) P&T Finance Three LLC 
  

	3.	Ontario 

 a) Pope & Talbot Ltd. 

b) P&T Finance One Limited Partnership 
 c) P&T Finance Two Limited Partnership 
 d) Mackenzie Pulp Land Ltd. 
 e) P&T LFP Investment Limited Partnership 
 f) P&T Factoring Limited Partnership 
 g) P&T Funding Ltd. 
 h) Pope & Talbot, Inc. 
 i)
Pope & Talbot Spearfish Limited Partnership 
 j) Penn Timber, Inc. 
 k) Pope & Talbot Relocation Services, Inc. 
 l) P&T Power Company 
 m) Pope & Talbot Pulp Sales U.S., Inc. 
 n) Pope & Talbot Lumber Sales, Inc. 
 o) P&T Finance Three LLC 
  

 25 

 SCHEDULE 4.23: Insurance Maintained 
  

												
	 Type of Coverage
	  	 Assigned
 Policy No.
	  	 Insurance
 Company
	  	Policy Term	  	 Underwriter and Address
	  	 Premium
 (USD)

	General Liability	  	3575-13-17	  	 Federal Ins. Co.
 (Chubb)
	  	05/01/07-08	  	 Marlene Beal
 Chubb Insurance Company
 15 Mountain View Road
 Warren, NJ 07059
	  	$	165,917
						
	Automobile	  	7320-35-58	  	 Federal Ins. Co.
 (Chubb)
	  	05/01/07-08	  	 Marlene Beal
 Chubb Insurance Company
 15 Mountain View Road
 Warren, NJ 07059
	  	$	33,414
						
	Umbrella	  	9364-0108	  	 Federal Ins. Co.
 (Chubb)
	  	05/01/07-08	  	 Marlene Beal
 Chubb Insurance Company
 15 Mountain View Road
 Warren, NJ 07059
	  	$	145,844
						
	 1st Excess
 Umbrella
	  	UXP001497601	  	 Arch Insurance
 Co.
	  	05/01/07-08	  	 Jill Boehmer
 Arch Insurance Company
 One Liberty Plaza, 53rd Floor New York, NY 10006
	  	$	55,000
						
	 2nd Excess
 Umbrella
	  	SHX00099103582	  	 American Ins.
 Co.
 (Fireman’s Fund)
	  	05/01/07-08	  	 Max Drewel
 Fireman’s Fund Insurance
Company
 DALLAS ESC
 Lincoln Plaza
 500 North Akard, Ste 300
 Dallas, TX 75201
	  	$	34,500
						
	 Stock Thru-Put
  
 Marine Cargo
 Insurance
	  	MACCD0700794	  	 Lockton
 Lloyds of
 London
	  	05/01/07-08	  	 Andrew Thoroughgood
 Lloyd’s of London
 One Lime Street London EC3M 7HA
 UNITED KINGDOM
	  	$	178,496
						
	 Terrorism
 for Cargo
	  	MACCD0700813	  	 Lockton
 Lloyds of
 London
	  	05/01/07-08	  	 Andrew Thoroughgood
 Lloyd’s of London
 One Lime Street
 London EC3M 7HA
 UNITED KINGDOM
	  	$	10,000

  

 26 

												
	 Type of
 Coverage
	 	 Assigned
 Policy No.
	 	 Insurance
 Company
	 	 Policy Term
	 	 Underwriter and Address
	 	 Premium
 (USD)

	 Hull & Mach.
 (P&I) CN & US
	 	HSE0019	 	 Starr Marine
 Nat’l Liab. &
 Fire Ins. Co.
	 	05/01/07-08	 	 Andrew Blaize
 National Liability & Fire
 Insurance Co.
 3024 Harney Street
 Omaha, NE 68131
	 	$	42,359
						
	 ExcessP&I CN &
 US
	 	LSE00020	 	 Starr Marine
 Nat’l Liab. &
 Fire Ins. Co.
	 	05/01/07-08	 	 Andrew Blaize
 National Liability & Fire
 Insurance Co.
 3024 Harney Street
 Omaha, NE 68131
	 	$	5,000
						
	Marine Liability	 	LSE00019	 	 Starr Marine
 Nat’l Liab. & Fire Ins.
Co.
	 	05/01/07-08	 	 Andrew Blaize
 National Liability & Fire
 Insurance Co.
 3024 Harney Street
 Omaha, NE 68131
	 	$	20,000
						
	 1st Excess
 Marine Liability
	 	 2 policies:
 1) MMMW-39
     981ML407
	 	 MMO of
 Midwest
 NY Marine &
 General
	 	05/01/07-08	 	 Mary Jean Bond
 New York Marine And General
 Insurance Company
 919 Third Avenue, 10th Floor
 New York, NY 10022
	 	$	16,562
						
		 	2) LSE00021	 	 Starr Marine
 Nat’l Liab. &
 Fire Ins. Co.
	 	05/01/07-08	 	 Andrew Blaize
 National Liability & Fire
 Insurance Co.
 3024 Harney Street
 Omaha, NE 68131
	 		
						
	 2nd Excess
 Marine Liability
	 	 MMMW-
 39982ML407
	 	 MMO of
 Midwest
 NY Marine &
 General
	 	05/01/07-08	 	 Mary Jean Bond
 New York Marine And General Insurance
Company
 919 Third Avenue, 10th Floor New York, NY 10022
	 	$	9,798
						
	 Vessel
 Pollution
	 	05219-04	 	 Lloyd’s Underwriters
 thru EPG
LLC
	 	05/01/07-08	 	 Carolyn Simonson
 Lloyd’s of London
 One Lime Street
 London EC3M 7HA
 UNITED KINGDOM
	 	$	8,417
						
	 Excess WC
 South Dakota
	 	EWC006365	 	 Midwest
 Employers
 Casualty Co.
	 	05/01/07-08	 	 Don Altese
 Midwest Employers Casualty
 Company
 14755 North Outer Forty Drive
 Suite 300
 Chesterfield, MO 63017
	 	$	70,270

  

 27 

												
	 Type of
 Coverage
	 	 Assigned
 Policy No.
	 	 Insurance
 Company
	 	 Policy Term
	 	 Underwriter and Address
	 	 Premium
 (USD)

	 Executive
 Risk: Fiduciary,
 Crime, Special
 Risk
	 	8181-4081	 	 Federal Ins Co.
 (Chubb)
	 	05/01/07-08	 	 Melissa Schellinkhout
 Chubb Insurance Company
 15 Mountain View Road
 Warren, NJ 07059
	 	$	49,250
						
	Property	 	XG529	 	 Factory Mutual
 Ins. Co.
	 	06/01/07-08	 	 William (Terry) Bugg
 Factory Mutual Insurance Company
 1301 Atwood Avenue
 P.O. Box 7500
 Johnston, R.I. 02919
	 	$
  
 
	2,800,000
 (estimated US
& C $)

						
	 Primary D&O
 $5M
	 	8119-8953	 	 Federal Ins. Co.
 Chubb
	 	07/30/07-08	 	 Melissa Schellinkhout
 Chubb Insurance Company
 15 Mountain View Road
 Warren, NJ 07059
	 	$	150,000
						
	 1st Excess D&O
 $5M xs $5M
	 	664-99-90	 	 Nat’l Union
 Fire Ins. Co of
 Pittsburgh
 AIG
	 	07/30/07-08	 	 Chris Cafaro
 National Union Fire Insurance Company of Pittsburgh
 175 Water Street
 New York, NY 10038
	 	$	112,500
						
	 2nd Excess D&O
 $5M xs $10M
	 	G21655211 005	 	 ACE American
 Ins. Co.
	 	07/30/07-08	 	 Stella Winterbourne
 ACE American Insurance

 Company
 436 Walnut Street
 Philadelphia, PA 19106
	 	$	84,375
						
	 3rd Excess D&O
 $10M xs $15M
	 	ELU099372-07	 	 XL Specialty
 Ins. Co.
	 	07/30/07-08	 	 Richard Wall
 XL Specialty Insurance

Company
 100 Constitution Plaza
 17th Floor
 Hartford, CT 06103
	 	$	115,000
						
	 4th Excess D&O
 $5M xs $25M
 side A DIC
	 	ELU099373-07	 	 XL Specialty
 Ins. Co.
	 	07/30/07-08	 	 Richard Wall
 XL Specialty Insurance

Company
 100 Constitution Plaza
 17th Floor
 Hartford, CT 06103
	 	$	52,500

  

 28 

												
	 Type of
 Coverage
	 	 Assigned
 Policy No.
	 	 Insurance
 Company
	 	 Policy Term
	 	 Underwriter and Address
	 	 Premium
 (USD)

	 Workers Comp
 Oregon
	 	WC41NC011910017	 	Liberty NW Ins. Co.	 	01/01/07-08	 	 Kellie O’Toole
 Liberty NW Insurance

 Corporation
 One Liberty Centre
 Portland, OR 97232-2038
	 	$	357,726
						
	 Workers Comp
 Nebraska
	 	WC1163950785017	 	Liberty NW Ins. Co.	 	01/01/07-08	 	 Kellie O’Toole
 Liberty NW Insurance
 Corporation
 One Liberty
Centre
 Portland, OR 97232-2038
	 	$	1,014
						
	 Pollution Legal
 Liability
	 	PLS 1379586	 	 American Int’l
 Specialty Lines
 Ins. Co.
	 	12/31/04-07	 	 Lindsey Bishop
 American International
 Specialty Lines Insurance
 Company
 175 Water Street, Twelfth Floor
 New York, NY 10038
	 	$	539,451
						
	 Pollution Legal
 Liability
	 	PLS 1379556	 	 Commerce &
 Industry Ins.
 Co. of Canada
	 	12/31/04-07	 	 Lindsey Bishop
 Commerce & Industry Insurance Company
of Canada
 145 Wellington Street, W. Toronto, Ontario
	 	$	109,382.47

  

 29 

 SCHEDULE 4.24: Owned and Leased Property 
  

									
	 Company
	 	 Location
	 	 Leasehold
 or Fee
	  	 Lessor (L) or
 Mortgagee (M)
	 	 Other
Liens

	 Pope & Talbot
 Spearfish Limited
 Partnership
	 	 1510 West Oliver Street
 Spearfish, SD
57783
	 	Fee	  	 Ableco Finance
 LLC, as Collateral
 Agent (M)
	 	None
					
	 Pope & Talbot
 Spearfish Limited
 Partnership
	 	 200 Faye Ave.
 Newcastle, WY 82701
	 	Fee	  	 Ableco Finance
 LLC, as Collateral
 Agent (M)
	 	None
					
	Pope & Talbot, Inc.	 	 30480 American Drive
 Halsey, OR 97348
	 	Fee	  	 Ableco Finance
 LLC, as Collateral
 Agent (M)
	 	None
					
	Pope & Talbot, Inc.	 	 1011 North Street
 Whitewood, SD 57793
	 	Fee	  	 Ableco Finance,
 LLC as Collateral
 Agent (M)
	 	None
					
	Pope & Talbot, Inc.	 	 113 3rd Street
 Northport, WA 99157
	 	Fee	  	 Ableco Finance,
 LLC as Collateral
 Agent (M)
	 	None
					
	Pope & Talbot, Inc.	 	Lane County, OR	 	Fee	  	 Ableco Finance,
 LLC as Collateral
 Agent (M)
	 	None
					
	 Pope & Talbot
 Lumber Sales Inc.
	 	 3808 N. Sullivan Road
 Spokane, WA
	 	Leasehold*	  	Park SPE, LLC (L)	 	None
					
	Pope & Talbot, Inc.	 	 1500 S.W. First Ave.,
 Suite 200, Portland, OR

97201
	 	Leasehold	  	 Urban Office &
 Parking Facilities
 (L)
	 	None

	 *
	 This is a subleasehold. 

  

 30 

									
	Pope & Talbot, Inc.	 	 200 Faye Ave.
 Newcastle, WY 82701
	 	Leasehold	  	 Burlington
 Northern, Inc. (L)
	 	None
					
	Pope & Talbot, Inc.	 	 1011 North Street
 Whitewood, SD 57793
	 	Leasehold	  	 Dakota, Minnesota
 & Eastern Railroad
 Corp. (L)
	 	None
					
	Pope & Talbot, Inc.	 	 10 Railroad Spur Street
 Curlew, WA
	 	Leasehold	  	 Burlington
 Northern, Inc. (L)
	 	None
					
	Pope & Talbot Ltd.	 	 30480 American Drive
 Halsey, OR 97348
	 	Fee†	  	 Ableco Finance, LLC
 as Collateral
 Agent (M)
	 	None
					
	Pope & Talbot Ltd.	 	 30480 American Drive
 Halsey, OR 97348
	 	Leasehold	  	 Pope & Talbot, Inc.
 (L)
	 	None
					
	Pope & Talbot Ltd.	 	Please see Annex A	 		  		 	
					
	 Mackenzie Pulp
 Land Ltd.
	 	Please see Annex A	 		  		 	

	 †
	 Fee ownership relates to the ownership of
the buildings located on the property. 

  

 31 

 ANNEX A 
 to Schedule 4.24 
  

														
	A.	  	HARMAC MILL SITE	  		  		  		
							
	 	  	 REF.
 NO.
	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	 2006
 ASSESSED
 VALUE

	A1.	  	00459	  	008-627-100	  	That part of Section 22, Range 1, Cedar District, outlined in red on Plan 1499R	  	Millsite – Main Mill	  	Major Industry	  	 
  
 
	(Included in
 Assessment
No. 3)§

							
	A2.	  	00481	  	023-922-877	  	Lot 1, Section 1, Range 8, Nanaimo District, Section 21, Range 1, Cedar District, Plan VIP65621	  	Millsite – Entrance Lot	  	Major Industry & Managed Forest	  	$	18,600
							
	A3.	  	00459	  	023-922-893	  	Lot 3, Sections 21, 22 and 23, Range 1, Sections 21, 22 and 23, Range 2, Cedar District and District Lots 137 and 385, Nanaimo District, Plan VIP65621	  	Millsite – HP Main Mill	  	Major Industry	  	$	87,054
							
	A4.	  	00459	  	003-926-516	  	West 60 acres of Section 22, Range 1, Cedar District except that Part shown outlined in red on Plan 1499R and except Part in Plan VIP74868	  	Millsite – Main Mill	  	Major Industry	  	 
  
 
	(Included in
 Assessment
No. 3)

							
	A5.	  	00463	  	003-924-424	  	The East half of Section 2, Range 8, Nanaimo District, except Plans 32333, 37427 and VIP74868	  	Millsite – Far South Nexen	  	Major Industry & Managed Forest	  	$	655,400
							
	A6.	  	00464	  	009-779-159	  	Section 3, Range 8, Nanaimo District, except those Parts in Plans 16106 and 32333	  	Millsite – South of Nexen	  	Major Industry & Managed Forest	  	$	893,300

	 8
	 The BC Assessment office of the Central Vancouver Island Area omitted PID
008-627-100 from folio 250-03236.000 in error for the 2006 Property Tax Assessment 

  

 32 

														
	A7.	  		  	009-779-442	 	Section 4, Range 8, Nanaimo District, except Parcel A (DD 35951I) and except those Parts in Plans 16106 and 17640	  	Millsite	  		  	 
 
 	(included in
Assessment
No. 6)
							
	A8.	  	00462	  	008-747-695	 	Section 20, Range 2, Cedar District	  	Millsite – New Landfill Far South	  	Business/ Other & Managed Forest	  	$	1,449,000
							
	A9.	  	00465	  	000-102-946	 	Lot 3, Sections 3 and 4, Range 8 and District Lot 137, Nanaimo District, Plan 32333	  	West of Nexen bare land on west border of Pope & Talbot properties	  	Business/ Other	  	$	456,000
							
	A10.	  	00466	  	Lease
#103441  
 LBF
#0175350
	 	Block A, DL 215, Range 1, Nanaimo Dist. ex. 9.03 acres subleased to Canadian Oxy. partnership, fronting Sec 23, Rge 1, Cedar Lake Dist Lease #103441 - 8/1/90 for 30 years Nanaimo Land
Dist. 32, LBF #1075350	  	Water Lot 215	  	Major Industry	  	$	413,000
							
	A11.	  	00467	  	009-045-872	 	District Lot 17, Dunsmuir District containing 557.8 acres, more or less	  	Fourth Lake. Land in conjunction with Lake Fourth Dam (A12.)	  	Residential	  	$	27,600
							
	A12.	  	00468	  	008-475-431	 	That part of Block 68, Dunsmuir District, Plan 789, shown outlined in red on Plan 1580R	  	Fourth Lake Dam site	  	Major Industry	  	$	1,445,900
							
	A13.	  	00469	  	006-007-805	 	Section 13, Range 1, Cedar District, except Parcel A (DD 6974N), and except Parcel B (DD 71270N), and except that part lying to the south and east of Plan 7914, and except
those parts in Plan 573RW, 1997RW, 1572-R, 7914, 8955, 15443 and 23683	  	Residential Lot. Land only.	  	Residential	  	$	82,800

  

 33 

														
	A14.	  	00470	  	004-226-216	  	That Part of Lot 4, Section 11, Range 1, Cedar District, Plan 15311, shown outlined in red on Plan 1997 R.W.	  	Cedar Pipeline ROW S	  	Major Industry	  	$	485,800
							
	A15.	  	00470	  	004-226-224	  	That Part of Lot 3, Section 11, Range 1, Cedar District, Plan 15311, shown outlined in red on Plan 1997 R.W.	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)
							
	A16.	  	00470	  	008-758-786	  	That Part of Section 12, Range 1, Cedar District, outlined in red on Plan 1997 RW	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)
							
	A17.	  	00470	  	008-752-133	  	That Part of Section 11, Range 1, Cedar District, outlined in red on Plan 657 RW	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)
							
	A18.	  	00470	  	008-754-144	  	That Part of Section 7, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)
							
	A19.	  	00470	  	008-754-187	  	That Part of Section 8, Range l, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)
							
	A20.	  	00470	  	008-758-174	  	That Part of Section 11, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)
							
	A21.	  	00470	  	008-759-243	  	That Part of Parcel A (DD 15075N) of Section 6, Range 1, Cedar District, outlined in red on Plan 1523R	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)
							
	A22.	  	00470	  	008-759-251	  	That Part of Parcel B (DD 15075N) of Section 6, Range 1, Cedar District, outlined in red on Plan 1523R	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)

  

 34 

														
	A23.	  	00470	  	008-759-359	  	That Part of Parcel A (DD 15075N) of Section 6, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)
							
	A24.	  	00470	  	008-759-367	  	That Part of Parcel B (DD 15075N) of Section 6, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)
							
	A25.	  	00470	  	008-751-846	  	That Part of Section 9, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW S	  	Major Industry	  	 
 
 	(included in
Assessment
No. 14)
							
	A26.	  	00471	  	006-285-601	  	That Part of Lot 3, Section 17, Range 1, Cedar District, Plan 3119, included in Plan 573RW	  	Cedar Pipeline ROW N	  	Major Industry	  	$	1,949,000
							
	A27.	  	00471	  	006-285-651	  	That Part of Lot 5, Section 17, Range 1, Cedar District, Plan 3119, included in Plan 573RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26)
							
	A28.	  	00471	  	006-285-619	  	That Part of Lot 4, Section 17, Range 1, Cedar District, Plan 3119, included in Plan 573RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26)
							
	A29.	  	00471	  	006-285-694	  	That Part of Lot 6, Section 16, Range 1, Cedar District, Plan 3119, shown outlined in red on Plan 573 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26)
							
	A30.	  	00471	  	006-285-627	  	That Part of Lot 3, Section 17, Range 1, Cedar District, Plan 3119, included in Plan 1694RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26)
							
	A31.	  	00471	  	006-285-635	  	That Part of Lot 4, Section 17, Range 1, Cedar District, Plan 3119, included in Plan 1694RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26)

  

 35 

													
	A32.	  	00471	  	008-751-919	  	That Part of Section 10, Range 1, Cedar District, containing 1.44 acres more or less and shown outlined in red on Plan 657 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	(included in
Assessment
No. 26)
							
	A33.	  	00471	  	008-751-811	  	That Part of Section 12, Range 1, Cedar District, shown outlined in red on Plan 657RW	  	Cedar Pipeline ROW N	  	Major Industry	  	(included in
Assessment
No. 26)
							
	A34.	  	00471	  	008-753-806	  	That Part of Section 10, Range 1, Cedar District, coloured red on Plan deposited in DD 20845F, included within the area shown outlined in red on Plan 573 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	(included in
Assessment
No. 26)
							
	A35.	  	00471	  	008-758-212	  	That Part of Section 10, Range 1, Cedar District, containing 1.56 acres more or less, shown outlined in red on Plan 573 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	(included in
Assessment
No. 26)
							
	A36.	  	00471	  	008-758-042	  	That Part of Parcel C (DD 6974N) of Section 15, Range 1, Cedar District, coloured red on Plan 1227R	  	Cedar Pipeline ROW N	  	Major Industry	  	(included in
Assessment
No. 26)
							
	A37.	  	00471	  	008-754-012	  	That Part of Section 14, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	(included in
Assessment
No. 26)
							
	A38.	  	00471	  	008-754-128	  	That Part of Section 13, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	(included in
Assessment
No. 26)
							
	A39.	  	00471	  	008-754-101	  	That Part of Section 12, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	(included in
Assessment
No. 26)
							
	A40.	  	00471	  	008-758-280	  	That Part of Section 18, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	(included in
Assessment
No. 26)

  

 36 

															
	A41.	  	00471	  	008-758-301	  	That Part of Section 19, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26	 
 
)
							
	A42.	  	00471	  	008-758-433	  	That Part of Section 10, Range 1, Cedar District, coloured red on Plan deposited in DD 20845F, and outlined in red on Plan 657 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26	 
 
)
							
	A43.	  	00471	  	008-758-387	  	That Part of Section 15, Range l, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26	 
 
)
							
	A44.	  	00471	  	008-758-778	  	That Part of Section l3, Range 1, Cedar District, outlined in red on Plan 1997 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26	 
 
)
							
	A45.	  	00471	  	008-758-786	  	That Part of Section 12, Range 1, Cedar District, outlined in red on Plan 1997 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26	 
 
)
							
	A46.	  	00471	  	008-758-794	  	That Part of Section 18, Range l, Cedar District, outlined in red on Plan 1694 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26	 
 
)
							
	A47.	  	00471	  	008-759-260	  	That Part of Parcel A (DD 392261I) of Section 10, Range 1, Cedar District, outlined in red on Plan 1873R	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26	 
 
)
							
	A48.	  	00471	  	008-758-328	  	That Part of Section 20, Range 1, Cedar District, outlined in red on Plan 573 RW	  	Cedar Pipeline ROW N	  	Major Industry	  	 
 
 	(included in
Assessment
No. 26	 
 
)
							
	A49.	  	00472	  	005-432-928	  	Lot 1, Section 4, Range 7, Cranberry District, Plan 8718 except Part in Plan 12762	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	$	1,873,100	 

  

 37 

													
	A50.	  	00472	  	005-564-549	  	Lot A, Sections 4 and 5, Range 8, Cranberry District, Plan 8575	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	(included in
Assessment
No. 49)
							
	A51.	  	00472	  	009-002-413	  	That Part of Section 5, Range 8, Cranberry District, outlined in red on Plan 1447R	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	(included in
Assessment
No. 49)
							
	A52.	  	00472	  	009-002-421	  	That Part of Section 5, Range 8, Cranberry District (including part of Plan 1364R), shown outlined in red on Plan 1517R	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	(included in
Assessment
No. 49)
							
	A53.	  	00472	  	008-996-504	  	That Part of Section 5, Range 8, Cranberry District, outlined in red on Plan DD 16767N and included within the area outlined in red on Plan 588 RW	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	(included in
Assessment
No. 49)
							
	A54.	  	00472	  	006-347-134	  	That Part of Lot 1, Section 4, Ranges 7 and 8, Cranberry District, Plan 2700, included in red on Plan 588 RW	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	(included in
Assessment
No. 49)
							
	A55.	  	00472	  	008-996-431	  	That Part of Section 5, Range 8, Cranberry District, shown outlined in red on Plan 588RW, except Part included in the area outlined in red on Plan DD 16767N, and except Part in Plan
8330	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	(included in
Assessment
No. 49)
							
	A56.	  	00472	  	008-996-458	  	That Part of the east 60 acres of Section 6, Range 8, Cranberry District, included within the area outlined in red on Plan 588 RW	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	(included in
Assessment
No. 49)
							
	A57.	  	00472	  	006-347-282	  	That Part of Lot 1, Section 4, Range 7, Cranberry District, Plan 2700, included in red on Plan 1486-R	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	(included in
Assessment
No. 49)

  

 38 

														
	A58.	  	00472	  	008-996-296	  	That Part of Section 4, Range 7, Cranberry District, outlined in red on Plan 1358R	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	 
 
 
 	(included
in
Assessment
No. 49)
							
	A59.	  	00472	  	009-002-456	  	That Part of Section 5, Range 7, Cranberry District, outlined in red on Plan 1351R	  	Cranberry Pipeline ROW Wells Area	  	Major Industry	  	 
 
 
 	(included
in
Assessment
No. 49)
							
	A60.	  	00473	  	008-758-182	  	That Part of Section 18, Range 2, Cedar District, lying to the North of that part coloured red on Plan deposited under DD 29718I, and to the East of the production Northerly of the
West boundary of said part	  	Landfill 10 Acre Lot; old landfill; treed lot kitty corner to new landfill	  	Unmanaged Forest	  	$	7,900
							
	A61.	  	00472	  	005-091-730	  	Lot 1, Section 4, Range 7, and of Section s 3 and 4, Range 8, Cranberry District, Plan 2700, except those parts of said Lot shown outlined in red on Plans 588 RW,
1357 R, 1486 R, 8718, 12014 and 12762, except that part of said Lot included within the boundaries of Plan 8330 and except those parts of said Lot shown outlined in red and marked D and E on Plan 1485 R	  	Land on which wells have been driven; treed lots; essential to Mill Water System	  	Residential	  	 
 
 
 
 
 	$249,000
(Note:
Pty also
included in
Assessment
No. 49)
							
	A62.	  	00475	  	006-347-151	  	That Part of Lot 1, Section 4, Range 8, Cranberry District, Plan 2700, included in red on Plan 1357-R	  	Land on which wells have been driven; treed lots; essential to Mill Water System	  	Unmanaged Forest	  	$	3,100
							
	A63.	  	00476	  	006-347-312	  	Those Part of Lot 1, Section 4, Ranges 7 and 8, Cranberry District, Plan 2700, included in red and marked “D” and “E” on Plan 1485-R	  	Land on which wells have been driven; treed lots; essential to Mill Water System	  	Unmanaged Forest	  	$	6,900

  

 39 

														
	A64.	  	00477	  	006-347-509	  	Lot 6, Section 3, Range 8, Cranberry District, Plan 2700	  	Back Road Lot	  	Unmanaged Forest	  	$	900
							
	A65.	  	00478	  	008-996-202	  	That Part of Section 5, Range 8, Cranberry District, outlined in red on Plan 1350R	  	South of Pond; border area surrounding Pope & Talbot land	  	Unmanaged Forest	  	$	20,500
							
	A66.	  	00478	  	008-996-245	  	That Part of Section 6, Range 8, Cranberry District, outlined in red on Plan 1350R	  	South of Pond; border area surrounding Pope & Talbot lot	  	Unmanaged Forest	  	 
 
 	(included in
Assessment
No. 66)
							
	A67.	  	00479	  	009-796-673	  	That Part of the East 60 acres of Section 6, Range 8, Cranberry District, lying to the North of a boundary extending due East from the most Northerly iron pin of the area shown on Plan
1350R	  	Sixty Acres North of Pond; border area surrounding pope & Talbot lot	  	Unmanaged Forest	  	$	17,300
							
	A68.	  	00472	  	005-500-605	  	Lot 1, Section 5, Range 7, and of Sections 3, 4 and 5, Range 8, Cranberry District, Plan 8330	  	West Side Wells Area; border area surrounding Pope & Talbot lot	  	Unmanaged Forest	  	 
  
 
 
 
 
	$34,000
 (Note: Pty
also
included in
Assessment
No. 49)

							
	A69.	  	00482	  	024-089-320	  	That Part of Nanaimo District being part of the bed of Northumberland Channel, shown on Plan 3078 RW	  	Outfall Discharge Pipe; part of production process Note: Owned by Crown. P&T has Statutory Right of Way	  	Major Industry	  	$	15,200
							
	A70.	  	00494	  	Lease	  	PL 304C – Nanaimo Port Authority	  	Nanaimo River Estuary Lease	  	Light Industry	  	$	51,200

  

 40 

													
		  	CHARGES IN FAVOUR OF POPE & TALBOT LTD.	  		  	
							
	 	  	 REF.
 NO.
	  	PID	  	 LEGAL
 DESCRIPTION
	  	 TYPE OF
 CHARGE AND
 REGISTRATION
 NO.
	  	 CLASS
	  	 2006
 ASSESSED
 VALUE

	I4.	  		  	004-674-006	  	The South Part of Section 3, Range 7, Nanaimo District, containing 21 Acres more or less as shown on a Plan deposited under DD22536	  	Assignment of Option to Purchase No. R69305, registered under No. EH70652	  	N/A	  	N/A
							
		  		  	004-678-478	  	That Part of Section 2, Range 6, Nanaimo District, lying West of the East branch of the Nanaimo River	  		  		  	
							
		  		  	004-678-486	  	That Part of Section 3, Range 6, Nanaimo District, lying West of the East branch of the Nanaimo River	  		  		  	
							
	I5.	  		  	024-089-320	  	That part of Nanaimo District being part of the bed of Northumberland Channel, shown on Plan 3078 RW NOTE: Statutory Right of Way indicated description for property as follows: No PID, Right of
Way of the bed of Northumberland Channel, Nanaimo District, shown outlined on Plan 3078 R.W. on file in the Land Title Office Victoria	  	Statutory Right of Way registered under No. EM24688	  	N/A	  	N/A
							
	I6.	  		  	002-308-151	  	Lot 2, Plan 28354, Sections 3 and 4, Range 7, Cranberry District	  	Statutory Right of Way registered under No. EN39180	  	N/A	  	N/A

  

 41 

													
		  	CHARGES IN FAVOUR OF POPE & TALBOT LTD.	  		  	
							
	 	  	 REF.
 NO.
	  	PID	  	 LEGAL
 DESCRIPTION
	  	 TYPE OF
 CHARGE AND
 REGISTRATION
 NO.
	  	 CLASS
	  	 2006
 ASSESSED
 VALUE

	I7.	  		  	002-308-151	  	Lot 2, Plan 28354, Sections 3 and 4, Range 7, Cranberry District	  	Assignment of Statutory Right of Way No. EH54371, registered under No. EH70653	  	N/A	  	N/A
							
	I8.	  		  	008-996-369	  	The West 25 Acres of Section 6, Range 8, Cranberry District	  	Statutory Right of Way registered under No. EH70648	  	N/A	  	N/A
							
		  		  	008-996-318	  	Section 7, Range 8, Cranberry District	  		  		  	
							
	I9.	  		  	023-922-893	  	Lot 3 of Sections 21, 22 and 23 Range 1 and Sections 21, 22 and 23 Range 2 Cedar District and District Lot 137 and 385 Nanaimo District Plan VIP65621	  	Statutory Right of Way registered under No. EH70647	  	NIA	  	N/A
							
		  		  	023-922-907	  	Lot 4, Sections 21, 22 and 23, Range 2 and Section 21, Range 3, Cedar District, Plan VIP65621	  		  		  	
							
		  		  	023-922-915	  	Lot 5, Sections 22 and 23, Range 2, Cedar District and District Lots 137 and 216 Nanaimo District Plan VIP65621	  		  		  	
							
		  		  	008-753-822	  	Section 22, Range 2, Cedar District	  		  		  	
							
		  		  	008-753-831	  	Section 22, Range 2, Cedar District	  		  		  	

  

 42 

													
		  	CHARGES IN FAVOUR OF POPE & TALBOT LTD.	  		  	
							
	 	  	 REF.
 NO.
	  	PID	  	 LEGAL
 DESCRIPTION
	  	 TYPE OF
 CHARGE AND
 REGISTRATION
 NO.
	  	 CLASS
	  	 2006
 ASSESSED
 VALUE

	I10.	  		  	025-586-840	  	That Part of the West 60 Acres of Section 22, Range 1, Cedar District, and that Part of the East  1/2 of Section 2, Range 8, Nanaimo District contained within VIP74868	  	Option to Purchase registered under No. EV 16970	  	N/A	  	N/A

  

 43 

														
	B.	  	CASTLEGAR MILL SITE	  		  		
							
	 	  	REF.
NO.	  	PID	 	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	B1.	  		  	005-881-579	 	Lot 1 District Lots 4268, 5636, 5953, 7373 and 13028 Kootenay District Plan 17216	  	Millsite – Main Mill and all surrounding areas; appealed 3/99; main site	  	Major Industry	  	$	9,099,600
							
	B2.	  	00178	  	014-015-455	 	Sublot 2, District Lot 4599 Kootenay District Plan X-35	  	Castlegar (unloading Crane)	  	Major Industry	  	$	339,700
							
	B3.	  	00179	  	Foreshore Lease
LBF# 02791 07	 	District Lot 3183 Kootenay Land District Foreshore Lease #402782	  	Robson Foreshore Lease 402782	  	Major Industry	  	$	32,100
							
	B4.	  	00180	  	010-223-479	 	District Lot 7373 Kootenay District except: (1) Plans 4352 and 17216 (2) Part included in SRW Plan 8215	  	Castlegar; bare land	  	Business/ Other	  	$	13,500
							
	B5.	  	00182	  	010-223-606	 	District Lot 4268 Kootenay District except: (1) Plans 4352 and 17216 (2) Parts included in SRW Plans 8215 and 9270	  	Castlegar; bare land - dumpsite	  	Business/ Other	  	$	23,800
							
	B6.	  	183	  	010-224-033	 	District Lot 6885 Kootenay District except parts included in SRW Plans 8215 and 9270	  	Castlegar; gravel pit and dumpsite	  	Business/ Other	  	$	34,100
							
	B7.	  	00184	  	010-228-268	 	Lot 1 District Lots 4268, 5636, 5953 and 6885 Kootenay District Plan 9273 except Plan 17217	  	Castlegar - dumpsite	  	Major Industry & Light Industry	  	$	121,100

  

 44 

														
	B.	  	CASTLEGAR MILL SITE	  		  		
							
	 	  	REF.
NO.	  	PID	 	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	B8.	  	00185	  		 	Kootenay Land District CPR Lease TV 125 Road encroachment Mile 30.0-30.6 Boundary Subdivision GBMK028-0105	  	CPR Rd Enc. mile 30.0-30.6	  	Major Industry	  	$	3,700
							
	B9.	  	00186	  	Waterlot Lease
LBF #0353961	 	District Lot 4087 Kootenay Land District Lease No. 401675 Water Lot on unsurveyed crown land (Columbia River) Reman Castlegar (Crain) LBF No. 0353961	  	Reman Lease 401675	  	Major Industry	  	$	45,200
							
	B10.	  	00187	  	Waterlot Lease	 	District Lot 16269 Kootenay District except Block C	  	Lease 402000 (remainder of dl 16269 not included in lease #401153) (unregistered) s.73 (Pulp Mill / Sawmill Split)	  	Major Industry	  	$	29,200
							
	B11.	  	00188	  		 	Kootenay Land District Road & Storage Site on CPR R/W Mile 29.9 Boundary Sub Leas No. GBMK-028-0115	  	CPR MILE 29.9	  	Major Industry	  	$	31,000
				
	B12.	  	Intentionally Deleted – Expired lease replaced by Lease #341103 (H7)	  		  		
							
	B13.	  	00190	  	014-015-471	 	Lot L District Lot 4598 Kootenay District Plan 4598	  	Castlegar; bare land	  	Residential	  	$	4,300

  

 45 

														
	C.	  	FORT ST. JAMES MILL SITE	  		  		
							
	 	  	REF.
NO.	  	PID	 	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	Cl.	  	00495	  	026-468-646	 	Lot A District Lots 4749, 4750, 4751 and 4752 Range 5 Coast District Plan BCP20449	  	Fort St. James - Millsite	  	Major Industry	  	$	8,989,000
							
	Cl.1	  		  	LBF
#0314782	 	District Lot 1299, Range 5, Land District, Breakwater Wharf Boat docking & recreational site on Stuart Lake, Lease No. 701558	  	Marineway	  		  	$	17,700
							
	Cl.2	  		  	LBF
#7407494	 	LIC 703775 Covering unsurveyed crown land in the vicinity of Mt. Blanchet for 30 years commencing June 15/99 for communication site purposes	  	Radio/Tower	  		  	$	3,000
							
	Cl.3	  		  	LBF
#7406887	 	Coast Range 5, District Lot 4026, Range 5 for limestone quarry purposes. Spad Lake	  	Quarry	  		  	$	31,900
							
	C2.	  	00495	  	008-234-086	 	Lot C, Block 3, Plan 3736, Dist. Lot 4932, Range 05, Coast Range 5 Land District	  	Cabin - Stones Bay Rd.	  	Residential	  	$	105,000
							
	C3.	  	00496	  	008-234-060	 	Lot A, Block 2, Plan 3652, Dist. Lot 4932, Range 05, Coast Range 5 Land District	  	Stones Bay sub Road; adjoining property to C1	  	Residential	  	$	45,900
							
	C4.	  		  	009-215-441	 	Lot 4 District Lot 314 Range 5 Coast District Plan 7468	  	Fort St. James – House	  	Residential	  	$	258,300

  

 46 

														
	D.	  	MACKENZIE MILL SITE [owned by Mackenzie Pulp Land Ltd. in bare trust for Pope & Talbot Ltd.]
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	D1.	  	00483	  	024-184-489	  	Lot B District Lot 12478 Cariboo District Plan PGP42628	  	Mill Site	  	Major Industry & Business/Other	  	$	43,750,100
							
	D2.	  	00485	  	023-271-299	  	Lot A District Lot 12479 Cariboo District Plan PGP39531	  	Fly Ash Disposal Site	  	Major Industry	  	$	415,800
							
	D3.	  	00484	  	024-184-501	  	Lot D, District Lot 12478 Cariboo District Plan PGP42628	  	Vacant Parcel N of Millsite	  	Major Industry & Business/Other	  	$	100,500
							
	D4.	  	00486	  	004-350-448	  	Lot 8, District Lot 12463, Cariboo Dist. Plan 17642	  	Mill Manager’s House	  	Residential	  	$	160,700
							
	D5.	  	00487	  	015-219-208	  	District Lot 3470, Cariboo Dist. except Pl 21721 & 22417	  	Residential Prop. in Town of Mackenzie; vacant	  	Residential	  	$	28,100
							
	D6.	  	00488	  	PGP37858
BCRP Lease
2926
 024-252-255
	  	Lot A, DLs 12478 and 12479, Cariboo District Plan PGP42967, Remarks on Lease: Part on Plan PGP39816 with a Right of Renewal	  	BCRP Site for construction campsite ‘Camp Watters’; lodging for construction crews	  	Residential	  	$	2,608,000
							
	D7.	  	00489	  	BCR Lease
2509
 023-623-951
	  	BCRP Lease 2509, Lot 2 District Lot 12478 and 12479 Cariboo District Plan PGP 40739 except plan PGP 45388 (unregistered)	  	Chip Storage - Cariboo Chip Storage site	  	Light Industry	  	$	144,000
							
	D8.	  		  	024-184-497	  	Statutory Right of Way over PID 024-184-497 Lot C District Lot 12478 Cariboo District Plan PGP42628	  		  		  		

  

 47 

													
	D.	  	MACKENZIE MILL SITE [owned by Mackenzie Pulp Land Ltd. in bare trust for Pope & Talbot Ltd.]
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	D9.	  		  	010-908-005	  	Undivided  1/2 interest in possibility of reverter E14788
PID 010-908 005 Lot A District Lot 12478 Cariboo District Plan 18789	  		  		  	
							
	D10.	  		  	023-366-583	  	Statutory Right of Way PK28849 that part of Unsurveyed Crown Land within Cariboo District and Being the Bed of Williston Lake shown on Plan PGP39849	  		  		  	

  

 48 

														
	E.	  	GRAND FORKS MILL SITE	  		  		  		
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	El.	  	00034	  	016-341-911	  	Lot 1, District Lots 382 and 534, Similkameen Division, Yale District, Plan 43597	  	Millsite	  	Major Industry	  	$	4,613,000
							
	E2.	  	00503	  	012-774-308	  	Lot 1, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	45,100
							
	E3.	  	00503	  	012-774-316	  	Lot 2, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	 
 
 	(included in
Assessment
No. 2)
							
	E4.	  	00504	  	014-480-911	  	Lot 3, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Business/Other	  	$	37,700
							
	E5.	  	00504	  	004-480-945	  	Lot 4, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Business/Other	  	 
 
 	(included in
Assessment
No. 4)
							
	E6.	  	00504	  	004-480-961	  	Lot 5, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Business/Other	  	 
 
 	(included in
Assessment
No. 4)
							
	E7.	  	00505	  	004-480-996	  	Lot 6, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Light Industry	  	$	13,500

  

 49 

														
	E.	  	GRAND FORKS MILL SITE	  		  		  		
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	E8.	  	00505	  	004-481-020	  	Lot 7, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Light Industry	  	 
 
 	(included in
Assessment
No. 7)
							
	E9.	  	00505	  	004-481-046	  	Lot 8, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Light Industry	  	 
 
 	(included in
Assessment
No. 7)
							
	E10.	  	00506	  	004-481-062	  	Lot 9, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Business/Other	  	$	7,600
							
	E11.	  	00506	  	004-481-101	  	Lot 10, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Business/Other	  	 
 
 	(included in
Assessment
No. 10)
							
	E12.	  	00507	  	012-774-324	  	Lot 11, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	7,600
							
	E13.	  	00507	  	012-774-332	  	Lot 12, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	 
 
 	(included in
Assessment
No. 12)
							
	E14.	  	00508	  	004-481-135	  	Lot 13, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Business/Other	  	$	7,600

  

 50 

														
	E.	  	GRAND FORKS MILL SITE	  		  		  		
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	E15.	  	00508	  	004-481-143	  	Lot 14, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Business/Other	  	 
 
 	(included in
Assessment
No. 14)
							
	E16.	  	00509	  	004-481-178	  	Lot 15, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Business/Other	  	$	13,500
							
	E17.	  	00509	  	004-481-194	  	Lot 16, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Business/Other	  	 
 
 	(included in
Assessment
No. 16)
							
	E18.	  	00509	  	004-481-224	  	Lot 17, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Business/Other	  	 
 
 	(included in
Assessment
No. 16)
							
	E19.	  	00510	  	004-481-241	  	Lot 18, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	40,500
							
	E20.	  	00510	  	004-481-259	  	Lot 19, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	 
 
 	(included in
Assessment
No. 19)
							
	E21.	  	00511	  	004-481-267	  	Lot 20, Block 19, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	2,500

  

 51 

														
	E.	  	GRAND FORKS MILL SITE	  		  		  		
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	E22.	  	00524	  	012-776-106	  	Lot 7, Block 31, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	62,400
							
	E23.	  	00524	  	012-776-114	  	Lot 8, Block 31, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	 
 
 	(included in
Assessment
No. 22)
							
	E24.	  	00525	  	009-032-177	  	Lot 9, Block 31, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	51,500
							
	E25.	  	00525	  	009-032-207	  	Lot 10, Block 31, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	 
 
 	(included in
Assessment
No. 24)
							
	E26.	  	00040	  	012-992-704	  	Parcel A (KC9084), Block 31, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Millsite; original millsite	  	Residential	  	$	34,300
							
	E27.	  	00037	  	024-886-319	  	Lot 1 District Lot 534 Similkameen Division Yale District Plan KAP67835	  	Millsite	  	Business/Other	  	$	35,900
							
	E28.	  	00517	  	010-829-008	  	Parcel A (X254677) Block 27, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	76,200

  

 52 

														
	E.	  	GRAND FORKS MILL SITE	  		  		  		
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	E29.	  	00518	  	007-087-705	  	Lot A, Block 27, District Lot 534, Similkameen Division, Yale District, Plan 37967	  	Proposed Millsite Expansion	  	Residential	  	$	122,200
							
	E30.	  	00519	  	012-775-631	  	Lot 1, Block 28, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	10,600
							
	E31.	  	00520	  	012-775-649	  	Lot 2, Block 28, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	40,600
							
	E32.	  	00520	  	012-775-657	  	Lot 3, Block 28, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	 
 
 	(included in
Assessment
No. 31)
							
	E33.	  	00521	  	012-775-681	  	Lot 4, Block 28, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	11,300
							
	E34.	  	00522	  	012-775-711	  	Lot 5, Block 28, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	9,300
							
	E35.	  	00523	  	012-775-720	  	Lot 6, Block 28, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	28,500

  

 53 

														
	E.	  	GRAND FORKS MILL SITE	  		  		  		
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	E36.	  	00526	  	012-777-633	  	Block A, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	20,500
							
	E37.	  	00512	  	002-325-250	  	Lot 7, Block 24, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	10,600
							
	E38.	  	00513	  	002-325-268	  	Lot 8 Block 24, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	7,900
							
	E39.	  	00514	  	002-325-276	  	Lot 9, Block 24, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	9,300
							
	E40.	  	00515	  	002-325-284	  	Lot 10, Block 24, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	9,300
							
	E41.	  	00516	  	002-325-292	  	Lot 11, Block 24, District Lot 534, Similkameen Division, Yale District, Plan 36	  	Proposed Millsite Expansion	  	Residential	  	$	19,000
							
	E42.	  	00502	  	003-473-104	  	Lot A, District Lot 382, Similkameen Division, Yale District, Plan 32378	  	Newly acquired Grand Forks property	  	Residential	  	$	73,400

  

 54 

														
	E.	  	GRAND FORKS MILL SITE
	 	  	 REF.
 NO.
	  	PID	 	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	 2006
 ASSESSED
 VALUE

	E43.	  		  	026-249-944	 	Parcel A, District Lot 534, Similkameen Division, Yale District, Plan KAP77809	  	Newly acquired Grand Forks property	  		  		
							
	E44.	  	00111	  	014-781-751	 	 That part of District Lot 423 shown red
 on Plan DD
682, Similkameen Division,
 Yale District
	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential (Rural)	  	$	4,300
							
	E45.	  	00113	  	014-926-890	 	Parcel A (Plan B4302) of District Lot 1012, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	10,800
							
	E46.	  	00126	  	011-767-332	 	That part of Lot 1 shown in red on Plan DD 6011, District Lot 2703, Similkameen Division, Yale District, Plan 1185	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	13,000
							
	E47.	  	00127	  	015-120-091	 	That part of District Lot 2703 outlined red on Plan DD4938, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	20,200
		
	E48.	  	Intentionally Deleted – Expired lease no longer relevant to operations
							
	E49.	  	00130	  	LBF#44006 53	 	SDYD RADIO, TV, MICRO WAVE, SATELITE WORKS BLUE JOINT MTN LICENSE NO. 403111 LBF4401653	  	For Purpose of constructing and communications for Pope & Talbot works	  	Business/ Other	  	$	17,800

  

 55 

														
	E.	  	GRAND FORKS MILL SITE
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	E50.	  	00100	  	014-727-552	  	That part of District Lot 125S shown on Plan DD 7954, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	194,000
							
	E51.	  	00101	  	014-726-785	  	That part of District Lot 125S shown on Plan DD 8861, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	21,700
							
	E52	  	00102	  	014-727-579	  	District Lot 126S Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	21,700
							
	E53.	  	00103	  	014-727-595	  	District Lot l27S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	24,000
							
	E54.	  	00104	  	013-282-085	  	District Lot 128S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Managed Forest Land	  	$	35,400
							
	E55.	  	00105	  	014-727-587	  	District Lot 183S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	19,800
							
	E56.	  	00106	  	014-956-250	  	That part of District Lot 500 shown on Plan attached to DD 63480F, Similkameen Division, Yale District, except (1) part lying to the South of Right of Way shown on Plan DD9487, and (2)
Plans 19939 and 26314	  	School Dist. #12, Boundary Timber Logging Lands	  	Residential (Rural)	  	$	3,300

  

 56 

														
	E.	  	GRAND FORKS MILL SITE
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	E57.	  	00107	  	014-788-691	  	District Lot 587S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	106,000
							
	E58.	  	00108	  	014-969-815	  	District Lot 1133S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	24,700
							
	E59.	  	00109	  	014-969-840	  	District Lot 1134S, Similkameen Division, Yale District	  	School Dist. # 12; Boundary Timber Logging Lands	  	Residential	  	$	30,800
							
	E60.	  	00110	  	015-222-055	  	District Lot 2960S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	128,000
							
	E61.	  	00112	  	014-885-310	  	District Lot 618S, Similkameen Division, Yale District, except Parcel G on Plan A166	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	195,000
							
	E62.	  	00114	  	014-983-303	  	District Lot 1206S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Managed Forest Land	  	$	38,700
							
	E63.	  	00115	  	014-983-320	  	District Lot 1207S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Managed Forest Land	  	$	35,300
							
	E64.	  	00116	  	014-885-841	  	District Lot 1274S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Managed Forest Land	  	$	14,400

  

 57 

														
	E.	  	GRAND FORKS MILL SITE
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	E65.	  	00117	  	014-885-883	  	The East  1/2 of District Lot 1277S, Similkameen
Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	54,400
							
	E66.	  	00118	  	014-885-930	  	The Easterly 80.26 acres of District Lot 1278S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	54,600
							
	E68.	  	00120	  	014-994-020	  	District Lot 1402S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential (Rural)	  	$	177,900
							
	E69.	  	00121	  	016-701-488	  	District Lot 1579S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Managed Forest Land	  	$	79,100
							
	E70.	  	00122	  	015-050-360	  	District Lot 1820S, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential (Rural)	  	$	175,700
							
	E72.	  	00125	  	015-120-066	  	That part of District Lot 2637 shown on Plan DD1343, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	5,300
							
	E73.	  	00128	  	015-223-132	  	District Lot 3307, Similkameen Division, Yale District	  	School Dist. #12, Boundary Timber Logging Lands	  	Residential	  	$	162,000
							
	E74.	  	00123	  	015-120-031	  	That part of District Lot 2453 Shown on Plan DD1344, Similkameen Division, Yale District	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	20,800

  

 58 

														
	E.	  	GRAND FORKS MILL SITE
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	E75.	  	00041	  	004-671-490	  	Lot 5, Block 34, District Lot 534, Similkameen Division, Yale District, Plan 108	  	School Dist. #12; Boundary Timber Logging Lands	  	Residential	  	$	18,400
							
	E76.	  		  		  	Lease Agreement	  	Oral agreement with Mr. Mehmal regarding Part of Parcel B, Lot 351, SDYD used for Ministry Environment Permit PR-8236.	  		  		

  

 59 

														
	F.	  	MIDWAY MILL SITE
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	Fl.	  	00061	  	016-358-198	  	Lot A District Lots 273S, 637, 2647, 4170S Similkameen Divion Yale District, Plan 43625	  	Millsite	  	Major Industry	  	 
 
 	(included in
Assessment
No. 2)
							
	F2.	  	00061	  	014-781-549	  	Parcel B (Plan B6079) of District Lot 424 Similkameen Division Yale District	  	Millsite	  	Major Industry	  	$	5,877,000
							
	F3.	  	00061	  	014-782-049	  	That Part District Lot 424 shown red on Plan B3932 Similkameen Division Yale District	  	Millsite	  	Major Industry	  	 
 
 	(included in
Assessment
No. 2)
							
	F4.	  	00067	  	014-781-557	  	Parcel D (Plan B7088) of District Lot 424 Similkameen Division Yale District	  	Millsite	  	Major Industry	  	$	116,000
							
	F5.	  	00070	  	017-654-467	  	Parcel A (Plan B5388) of District Lot 637 Similkameen Division Yale District	  	Millsite	  	Major Industry	  	$	88,400
							
	F6.	  	00058	  	004-293-771	  	That part of District Lot 637 shown red on Plan B 5171; Similkameen Division Yale District	  	Related to Midway mill for access purposes	  	Major Industry	  	$	25,800
							
	F7.	  	00060	  	012-585-092	  	Parcel C (Plan A149) of District Lot 637; Similkameen Division Yale District	  	Related to Midway mill for access purposes	  	Major Industry	  	$	74,900
							
	F8.	  	00439	  	LBF: 3409797	  	Plan A149, Dist. Lot 637 Lease No: 33458	  	Village of Midway – Port Leased for Access Road	  	Major Industry	  	$	29,600

  

 60 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G1.	  	00147	  	014-045-443	  	Parcel A (Sketch Plan 5961), District Lot 811, Kootenay District, except Plans NEP22294 and NE P65710	  	Revelstoke Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	883,000
							
	G2.	  	00153	  	014-045-508	  	District Lot 860, Kootenay District, except Part in Plan NEP21101	  	Revelstoke CAN HYDRO SITE; part of logging operation TFL 23	  	Residential & Utilities & Managed Forest Land	  	$	17,075,400
							
	G3.	  	00163	  	014-046-601	  	Fractional Legal Subdivision 14, Section 27, Township 21, Range 1, West of the 6th Meridian, Kootenay District	  	Revelstoke Rural; part of logging operation	  	Residential	  	 
 
 	(included in
Assessment
No. 7)
							
	G4.	  	00220	  	014-014-874	  	Parcel 1 (See 12756I) of Lot F, District Lot 864, Kootenay District, Plan 812, except Plan 7686	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	9,100
							
	G5.	  	00221	  	014-014-891	  	Parcel 1 (Reference Plan 94063I) of Lot G, District Lot 864, Kootenay District, Plan 812	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	10,500
							
	G6.	  	00221	  	014-014-912	  	Lot G, District Lot 864, Kootenay District, Plan 812, except Parcel 1 (Reference Plan 94063I)	  	Vernon Assessment Area; part of logging operation	  	Light Industry	  	 
 
 	(included in
Assessment
No. 22)
							
	G7.	  	00222	  	014-014-939	  	Parcel 1 (Reference Plan 940631), Lot H, District Lot 864, Kootenay District, Plan 812	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	356,900

  

 61 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G8.	  	00223	  	014-014-947	  	Lot J, District Lot 864, Kootenay District, Plan 812, except Parts included in Plans 2795, 7160 and 7686	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	6,700
							
	G9.	  	00224	  	014-014-971	  	Lot L, District Lot 864, Kootenay District, Plan 812, except Plan 7686	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	22,700
							
	G10.	  	00225	  	014-015-005	  	Lot M, District Lot 864, Kootenay District, Plan 812, except Part included in Plans 4875 and 7686	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	16,800
							
	G11.	  	00226	  	014-015-013	  	Lot N, District Lot 864, Kootenay District, Plan 812, except Plans 7686 and NEP68994	  	Nakusp Rural; part of logging operation	  	Business/Other	  	$	27,000
							
	G12.	  	00227	  	014-015-056	  	Lot S, District Lot 864, Kootenay District, Plan 812, except Plan 7686	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	5,600
							
	G13.	  	00228	  	014-015-081	  	Parcel I (Reference Plan 94063I), Lot T, District Lot 864, Kootenay District, Plan 812	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	8,100
							
	G14.	  	00228	  	014-015-145	  	Lot T, District Lot 864, Kootenay District, Plan 812, except Parcel 1 (Reference Plan 94063I) and Plan 7686	  	Vernon Assessment Area; part of logging operation	  	Light Industry	  	 
 
 	(included in
Assessment
No. 30)
							
	G15.	  	00229	  	014-015-510	  	Lot A, District Lot 864, Kootenay District, Plan 4112	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	10,100
							
	G16.	  	00230	  	014-015-552	  	Lot B, District Lot 864, Kootenay District, Plan 4112	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	10,600

  

 62 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G17.	  	00231	  	014-015-579	  	Lot C, District Lot 864, Kootenay District, Plan 4112	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	11,100
							
	G18.	  	00240	  	014-020-131	  	Lot 80, District Lot 7675, Kootenay District, Plan 1129	  	Nakusp Rural; part of logging operation	  	Residential	  	$	28,500
							
	G19.	  	00241	  	014-020-157	  	Lot 81, District Lot 7675, Kootenay District, Plan 1129	  	Nakusp Rural; part of logging operation	  	Residential	  	$	28,700
							
	G20.	  	00242	  	014-020-173	  	Lot 82, District Lot 7675, Kootenay District, Plan 1129	  	Nakusp Rural; part of logging operation	  	Residential	  	$	28,600
							
	G21.	  	00243	  	014-020-203	  	Lot 83, District Lot 7675, Kootenay District, Plan 1129	  	Nakusp Rural; part of logging operation	  	Residential	  	$	28,600
							
	G22.	  	00244	  	014-020-211	  	Lot 84, District Lot 7675, Kootenay District, Plan 1129	  	Nakusp Rural; part of logging operation	  	Residential	  	$	28,800
							
	G23.	  	00245	  	014-020-246	  	Lot 85, District Lot 7675, Kootenay District, Plan 1129	  	Nakusp Rural; part of logging operation	  	Residential	  	$	8,000
							
	G24.	  	00246	  	014-020-262	  	Lot 86, District Lot 7675, Kootenay District, Plan 1129	  	Nakusp Rural; part of logging operation	  	Residential	  	$	7,900
							
	G25.	  	00247	  	014-020-289	  	Lot 90, District Lot 7675, Kootenay District, Plan 1129	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	7,500
							
	G26.	  	00248	  	014-020-327	  	Lot 55, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	9,200
							
	G27.	  	00249	  	014-020-351	  	Lot 56, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	9,100

  

 63 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G28.	  	00250	  	014-020-360	  	Lot 57, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	8,600
							
	G29.	  	00251	  	014-020-386	  	Lot 58, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	45,500
							
	G30.	  	00252	  	014-020-408	  	Lot 59, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	48,000
							
	G31.	  	00253	  	014-020-424	  	Lot 61, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	49,200
							
	G32.	  	00254	  	014-020-441	  	Lot 62, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	6,500
							
	G33.	  	00255	  	014-020-467	  	Lot 65, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	45,800
							
	G34.	  	00256	  	014-020-483	  	Lot 68, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	5000
							
	G35.	  	00257	  	014-020-491	  	Lot 69, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	40,900
							
	G36.	  	00258	  	014-020-513	  	Lot 70, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	4,700
							
	G37.	  	00259	  	014-020-572	  	Lot 71, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	4,700
							
	G38.	  	00260	  	014-020-599	  	Lot 72, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	4,700

  

 64 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G39.	  	00261	  	014-020-629	  	Lot 75, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	4,700
							
	G40.	  	00262	  	014-020-645	  	Lot 76, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry.	  	$	3,500
							
	G41.	  	00263	  	014-020-670	  	Lot 78, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Residential	  	$	37,300
							
	G42.	  	00264	  	014-020-696	  	Lot 79, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Residential	  	$	23,700
							
	G43.	  	00265	  	014-020-700	  	Lot 87, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	10,300
							
	G44.	  	00266	  	014-020-718	  	Lot 88, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	10,600
							
	G45.	  	00267	  	014-020-726	  	Lot 89, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	9,600
							
	G46.	  	00268	  	014-020-734	  	Lot 91, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	15,400
							
	G47.	  	00269	  	014-020-742	  	Lot 92, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	11,400
							
	G48.	  	00270	  	014-020-751	  	Lot 93, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	9,500
							
	G49.	  	00271	  	014-020-769	  	Lot 94, District Lot 7675, Kootenay District, Plan 1133	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	9,500

  

 65 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G50.	  	00272	  	014-019-825	  	Lot 1, District Lot 7675, Kootenay District, Plan 3084	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	12,300
							
	G51.	  	00273	  	014-019-833	  	Lot 2, District Lot 7675, Kootenay District, Plan 3084	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	63,800
							
	G52.	  	00274	  	014-019-841	  	Lot 3, District Lot 7675, Kootenay District, Plan 3084	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	42,600
							
	G53.	  	00275	  	014-019-850	  	Lot 4, District Lot 7675, Kootenay District, Plan 3084	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	3,200
							
	G54.	  	00276	  	014-019-868	  	Lot 5, District Lot 7675, Kootenay District, Plan 3084	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	3,000
							
	G55.	  	00277	  	013-370-782	  	Lot 1, District Lot 7675, Kootenay District, Plan 8169	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	72,700
							
	G56.	  	00281	  	012-490-679	  	Block A, District Lot 8566, Kootenay District, except Part in Plan NEP21711 and Plan NEP61848	  	Nakusp Rural; part of logging operation	  	Residential & Light Industry	  	$	289,000
							
	G57.	  	00282	  	014-030-292	  	Lot 6, District Lot 9321, Kootenay District, Plan 1429, except Plan NEP61848	  	Nakusp Rural; part of logging operation	  	Residential (Rural)	  	$	44,000
							
	G58.	  	00289	  	014-030-373	  	Amended Block B, Lot 15, District Lot 9321, Kootenay District, Plan 1429	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	48,100
							
	G59.	  	00293	  	014-015-595	  	District Lot 870, Kootenay District, except Part included in Plan NEP20563	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	160,000

  

 66 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G60.	  	00294	  	014-015-617	  	District Lot 5069, Kootenay District, except Part included in Plans 10811 and NEP20562	  	Nakusp Rural; part of logging operation TFL 23	  	Light Industry & Managed Forest Land	  	$	98,600
							
	G61.	  	00295	  	014-029-235	  	Lot 20, District Lot 8029, Kootenay District, Plan 822	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	6,900
							
	G62.	  	00295	  	014-029-286	  	Lot 21, District Lot 8029, Kootenay District, Plan 822	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	 
 
 	(included in
Assessment
No. 80)
							
	G63.	  	00295	  	014-029-316	  	Lot 22, District Lot 8029, Kootenay District, Plan 822	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	 
 
 	(included in
Assessment
No. 80)
							
	G64.	  	00296	  	012-490-628	  	Assigned Parcel 4, District Lot 373, Kootenay District, Plan X13, except Parcel 1 (Reference Plan 1103631)	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	25,900
							
	G65.	  	00297	  	014-015-609	  	District Lot 2719, Kootenay District	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	28,100
							
	G66.	  	00298	  	014-045-699	  	Lot 6, District Lot 6549, Kootenay District, Plan 853	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,100
							
	G67.	  	00299	  	014-018-217	  	Lot 1, District Lot 6549, Kootenay District, Plan 1605	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,100

  

 67 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G68.	  	00300	  	014-018-241	  	Lot 2, District Lot 6549, Kootenay District, Plan 1605	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,400
							
	G69.	  	00301	  	014-018-268	  	Lot 3, District Lot 6549, Kootenay District, Plan 1605	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,300
							
	G70.	  	00302	  	014-018-284	  	Lot 4, District Lot 6549, Kootenay District, Plan 1605	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,400
							
	G71.	  	00303	  	014-018-306	  	Lot 5, District Lot 6549, Kootenay District, Plan 1605	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,200
							
	G72.	  	00304	  	014-018-322	  	Lot 7, District Lot 6549, Kootenay District, Plan 1605	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,800
							
	G73.	  	00305	  	014-018-357	  	Lot 8, District Lot 6549, Kootenay District, Plan 1605	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,800
							
	G74.	  	00306	  	014-018-390	  	Lot 9, District Lot 6549, Kootenay District, Plan 1605	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,100
							
	G75.	  	00307	  	014-018-403	  	Lot 10, District Lot 6549, Kootenay District, Plan 1605	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,200
							
	G76.	  	00308	  	014-018-420	  	Lot 11, District Lot 6549, Kootenay District, Plan 1605, except that Part in Plan 8798	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,000

  

 68 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G77.	  	00309	  	014-018-438	  	 Lot 12, District Lot 6549,
 Kootenay District,
Plan 1605,
 except that Part in Plan 8798
	  	 Nakusp Rural; part of logging
 operation
TFL 23
	  	Managed Forest Land	  	$	1,800
							
	G78.	  	00310	  	014-025-001	  	 District Lot 7682, Kootenay
 District, except
Part included in
 Plan NEP20435
	  	 Nakusp Rural; part of logging
 operation
TFL 23
	  	Managed Forest Land	  	$	12,600
							
	G79.	  	00311	  	014-025-191	  	 Lot 17, District Lots 7893 and
 7894,
Kootenay District, Plan
 1194
	  	 Nakusp Rural; part of logging
 operation
TFL 23
	  	Managed Forest Land	  	$	3,600
							
	G80.	  	00312	  	014-025-221	  	 Lot 18, District Lots 7893 and
 7894,
Kootenay District, Plan
 1194
	  	 Nakusp Rural; part of logging
 operation
TFL 23
	  	Managed Forest Land	  	$	3,600
							
	G81.	  	00313	  	014-025-256	  	 Lot 20, District Lots 7893 and
 7894,
Kootenay District, Plan
 1194
	  	 Nakusp Rural; part of logging
 operation
TFL 23
	  	Managed Forest Land	  	$	3,600
							
	G82.	  	00314	  	014-025-299	  	 Lot 21, District Lots 7893 and
 7894,
Kootenay District, Plan
 1194
	  	 Nakusp Rural; part of logging
 operation
TFL 23
	  	Managed Forest Land	  	$	3,600
							
	G83.	  	00315	  	014-025-311	  	 Lot 22, District Lots 7893 and
 7894,
Kootenay District, Plan
 1194
	  	 Nakusp Rural; part of logging
 operation
TFL 23
	  	Managed Forest Land	  	$	4,500
							
	G84.	  	00316	  	014-025-361	  	 Lot 23, District Lots 7893 and
 7894,
Kootenay District, Plan
 1194
	  	 Nakusp Rural; part of logging
 operation
TFL 23
	  	Managed Forest Land	  	$	3,600
							
	G85.	  	00317	  	014-025-396	  	 Lot 24, District Lots 7893 and
 7894, Kootenay
District, Plan
 1194
	  	 Nakusp Rural; part of logging
 operation
TFL 23
	  	Managed Forest Land	  	$	4,500

  

 69 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G86.	  	00318	  	014-025-434	  	Lot 25, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,300
							
	G87.	  	00319	  	014-025-451	  	Lot 26, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	4,500
							
	G88.	  	00320	  	014-025-477	  	Lot 27, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,900
							
	G89.	  	00321	  	014-025-515	  	Lot 28, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	4,500
							
	G90.	  	00322	  	014-025-558	  	Lot 29, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,700
							
	G91.	  	00323	  	014-025-639	  	Lot 30, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	4,400
							
	G92.	  	00324	  	014-025-663	  	Lot 31, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,900
							
	G93.	  	00325	  	014-025-680	  	Lot 32, District Lots 7893 and 7894, Kootenay District, Plan 1194, except Part included in Plan NEP22023	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	4,100
							
	G94.	  	00326	  	014-025-701	  	Lot 33, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,900

  

 70 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G95.	  	00327	  	014-025-728	  	Lot 34, District Lots 7893 and 7894, Kootenay District, Plan 1194, except Part included in Plan NEP22023	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,900
							
	G96.	  	00328	  	014-025-752	  	Lot 35, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,700
							
	G97.	  	00329	  	014-025-779	  	Lot 36, District Lots 7893 and 7894, Kootenay District, Plan 1194, except Part included in Plan NEP22023	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,900
							
	G98.	  	00330	  	014-025-787	  	Lot 37, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,000
							
	G99.	  	00331	  	014-025-795	  	Lot 40, District Lot 7893, Kootenay District, Plan 1194, except Part included in Plan NEP22023	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,300
							
	G100.	  	00332	  	014-025-809	  	Lot 42, District Lot 7893, Kootenay District, Plan 1194, except Part included in Plan NEP22023	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	1,400
							
	G101.	  	00333	  	014-025-817	  	Lot 43, District Lot 7893, Kootenay District, Plan 1194, except Part included in Plan NEP22023	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	1,900

  

 71 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G102.	  	00334	  	014-025-825	  	Lot 44, District Lot 7893, Kootenay District, Plan 1194, except Part included in Plan NEP22023	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	1,900
							
	G103.	  	00335	  	008-288-984	  	Lot 49, District Lots 7893 and 7894, Kootenay District, Plan 1194, except Part included in Plan NEP22214	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,000
							
	G104.	  	00336	  	014-025-841	  	Lot 50, District Lots 7893 and 7894, Kootenay District, Plan 1194, except Part included in Plan NEP22214	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	2,000
							
	G105.	  	00337	  	014-025-868	  	Lot 77, District Lots 7893 and 7894, Kootenay District, Plan 1194, except Part included in Plan NEP22214	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	3,500
							
	G106.	  	00338	  	014-025-892	  	Lot 83, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	4,500
							
	G107.	  	00339	  	014-025-914	  	Lot 85, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	4,500
							
	G108.	  	00340	  	014-025-949	  	Lot 86, District Lots 7893 and 7894, Kootenay District, Plan 1194	  	Nakusp Rural; part of logging operation TFL 23	  	Managed Forest Land	  	$	4,500
							
	G109.	  	00341	  	005-543-894	  	District Lot 7896, Kootenay District, except Part included in Plans 5875 and 17277	  	Nakusp Rural; part of logging operation	  	Managed Forest Land	  	$	18,700

  

 72 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G110.	  	00342	  	014-028-051	  	District Lot 9149, Kootenay District	  	Nakusp Rural; part of logging operation	  	Managed Forest Land	  	$	37,800
							
	G111.	  	00343	  	014-028-085	  	District Lot 9152, Kootenay District, except Part included in Plan NEP23532	  	Nakusp Rural; part of logging operation	  	Managed Forest Land	  	$	12,300
							
	G112.	  	00344	  	014-028-158	  	District Lot 12767, Kootenay District	  	Nakusp Rural; part of logging operation	  	Managed Forest Land	  	$	16,700
							
	G113.	  	00345	  	014-028-174	  	District Lot 12768, Kootenay District	  	Nakusp Rural; part of logging operation	  	Managed Forest Land	  	$	33,800
							
	G114.	  	00440	  	016-494-911	  	District Lot 11333, Kootenay District	  	Beaton Property; part of logging operation	  	Residential	  	$	37,300
							
	G115.	  	00455	  	015-949-737	  	Lot 9, District Lot 7805, Kootenay District, Plan 1127	  	Chilton Property; part of logging operation	  	Residential	  	$	26,800
							
	G116.	  	00144	  	014-044-471	  	The East half of District Lot 770, Kootenay District	  	Revelstoke Rural; part of logging operation TFL 23	  	Managed Forest Lands	  	$	26,700
							
	G117.	  	00145	  	014-044-544	  	The West half of District Lot 770, Kootenay District	  	Revelstoke Rural; part of logging operation TFL 23	  	Managed Forest Lands	  	$	26,700
							
	G118.	  	00218	  	014-036-002	  	Sublot 6, District Lot 4599, Kootenay District, Plan X35, except Plans NEP21141, NEP64728 and 7442	  	Rossland Rural -- Partial sale; part of logging operation TFL 23	  	Managed Forest Land	  	$	54,500
							
	G119.	  	00191	  	014-031-680	  	Lot 131, District Lot 400, Kootenay District, Plan 656A	  	Rossland Rural; part of logging operation	  	Residential & Light Industry	  	$	254,000

  

 73 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G120.	  	00192	  	014-031-710	  	Lot 134, District Lot 400, Kootenay District, Plan 656A	  	Rossland Rural; part of logging operation	  	Residential & Light Industry	  	$	125,400
							
	G121.	  	00193	  	014-035-596	  	Lot 1, District Lot 4599, Kootenay District, Plan 842, except Part included in (1) Plan 8895 and (2) Plan NEP21141	  	Rossland Rural; part of logging operation	  	Residential	  	$	112,000
							
	G122.	  	00194	  	014-035-600	  	Lot 2, District Lot 4599, Kootenay District, Plan 842, except Part included in Plan 8895	  	Rossland Rural; part of logging operation	  	Residential	  	$	106,000
							
	G123.	  	00195	  	014-035-642	  	Lot 3, District Lot 4599, Kootenay District, Plan 842, except Part included in Plan 8895	  	Rossland Rural; part of logging operation	  	Residential	  	$	106,000
							
	G124.	  	00196	  	014-035-651	  	Lot 4, District Lot 4599, Kootenay District, Plan 842, except Part included in Plan 8895	  	Rossland Rural; part of logging operation	  	Residential	  	$	44,800
							
	G125.	  	00197	  	014-035-669	  	Lot 5, District Lot 4599, Kootenay District, Plan 842, except Part included in Plan 8895	  	Rossland Rural; part of logging operation	  	Residential	  	$	36,900
							
	G126.	  	00198	  	014-035-693	  	Lot 6, District Lot 4599, Kootenay District, Plan 842, except Part included in Plan 8895	  	Rossland Rural; part of logging operation	  	Residential	  	$	36,200
							
	G127.	  	00199	  	014-035-707	  	Lot 7, District Lot 4599, Kootenay District, Plan 842, except Part included in Plan 8895	  	Rossland Rural; part of logging operation	  	Residential	  	$	38,100

  

 74 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G128.	  	00200	  	014-035-715	  	Lot 8, District Lot 4599, Kootenay District, Plan 842, except Part included in Plan 8895	  	Rossland Rural; part of logging operation	  	Residential	  	$	40,400
							
	G129.	  	00201	  	014-035-723	  	Lot 9, District Lot 4599, Kootenay District, Plan 842, except Part included in Plan 8895	  	Rossland Rural; part of logging operation	  	Residential	  	$	21,900
							
	G130.	  	00202	  	014-035-731	  	Lot 10, District Lot 4599, Kootenay District, Plan 842, except Part included in Plan 8895	  	Rossland Rural; part of logging operation	  	Residential	  	$	18,100
							
	G131.	  	00203	  	014-019-744	  	District Lot 7603, Kootenay District, except Parts included in Plans 2267, 4108, 4324 and 8589	  	Rossland Rural; part of logging operation	  	Residential & Light Industry	  	$	425,600
							
	G132.	  	00204	  	014-019-469	  	Lot 1, District Lot 7603, Kootenay District, Plan 4324	  	Rossland Rural; part of logging operation	  	Residential & Light Industry	  	$	41,800
							
	G133.	  	00205	  	014-019-493	  	Lot 2, District Lot 7603, Kootenay District, Plan 4324	  	Rossland Rural; part of logging operation	  	Residential & Light Industry	  	$	32,300
							
	G134.	  	00206	  	014-019-515	  	Lot 3, District Lot 7603, Kootenay District, Plan 4324	  	Rossland Rural; part of logging operation	  	Residential & Light Industry	  	$	26,100
							
	G135.	  	00207	  	014-019-523	  	Lot 4, District Lot 7603, Kootenay District, Plan 4324	  	Rossland Rural; part of logging operation	  	Residential & Light Industry	  	$	22,700
							
	G136.	  	00208	  	014-019-540	  	Lot 5, District Lot 7603, Kootenay District, Plan 4324	  	Rossland Rural; part of logging operation	  	Residential & Light Industry	  	$	24,200

  

 75 

														
	G.	  	TIMBERLANDS
							
	 	  	 	  	PID	  	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	G137.	  	00283	  	014-030-322	  	Lot 10, District Lot 9321, Kootenay District, Plan 1429	  	Nakusp Rural; part of logging operation	  	Light Industry	  	$	97,600
							
	G138.	  	00284	  	014-030-331	  	Lot 11, District Lot 9321, Kootenay District, Plan 1429	  	Nakusp Rural	  	Light Industry	  	$	82,200
							
	G139.	  	00285	  	014-030-349	  	Lot 12, District Lot 9321, Kootenay District, Plan 1429	  	Nakusp Rural	  	Light Industry	  	$	94,300
							
	G140.	  	00286	  	014-030-357	  	Lot 13, District Lot 9321, Kootenay District, Plan 1429	  	Nakusp Rural	  	Light Industry	  	$	97,200
							
	G141.	  	00288	  	014-030-365	  	Lot 14, District Lot 9321, Kootenay District, Plan 1429	  	Nakusp Rural – Arrow Park Dump	  	Light Industry	  	$	8,900
							
	G142.	  	00420	  	015-773-698	  	Lot 1, District Lot 8069, Kootenay District, Plan 18757	  	Rossland Rural; part of logging operation	  	Residential (Rural) & Light Industry	  	$	149,600
							
	G143.	  	00950	  	014-029-332	  	Lot 23, District Lot 8029, Kootenay District, Plan 822	  	Nelson/Trail Assessment area TFL 23	  	Managed Forest Land	  	$	6,900
							
	G144.	  	00455	  	015-949-761	  	Lot 23, District Lot 7805, Kootenay District, Plan 1127	  	Nelson/Trail Assessment area	  	Residential	  	$	29,300

  

 76 

													
		  	CHARGES IN FAVOUR OF POPE & TALBOT LTD.	  	
							
	 	  	 REF.
 NO.
	  	PID	  	 LEGAL
 DESCRIPTION
	  	 TYPE OF
 CHARGE AND
REGISTRATION NO.
	  	 CLASS
	  	2006
ASSESSED
VALUE
	I1.	  		  	016-372-786	  	District Lot 2448 Kootenay District	  	Statutory Right of Way registered under No. XK29142	  	N/A	  	N/A
							
	I2.	  		  	011-631-228	  	District Lot 2449 Kootenay District	  	Statutory Right of Way registered under No. XK29143	  	N/A	  	N/A
							
		  		  	011-631-210	  	District Lot 1144 Kootenay District	  		  		  	
							
		  		  	016-395-271	  	District Lot 4730 Kootenay District	  		  		  	
							
	I3.	  		  	011-126-124	  	District Lot 10591 Kootenay District	  	Statutory Right of Way registered under No. KL82569	  	N/A	  	N/A
							
	II1.	  		  	005-270-987	  	Block 95, District Lot 400, Kootneay District, Plan 656A	  	Assignment of Statutory Right of Way Nos. XF5859 and XF1564, registered under Nos. XF11032	  	N/A	  	N/A
							
		  		  	005-271-011	  	Block 96, District Lot 400, Kootenay District, Plan 656A	  		  		  	
							
	II2.	  		  	016-605-497	  	The North  1/2 of Legal Subdivision 6, Section 19,
Township 22, Range 26, West of the 5th Meridian, Kootenay District	  	Assignment of Statutory Right of Way Nos. XF5859 and XF1564, registered under Nos. XF11033 (filed with XF11032, see tab I11 for a copy)	  	N/A	  	N/A

  

 77 

													
		  	CHARGES IN FAVOUR OF POPE & TALBOT LTD.	  		  	
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 TYPE OF
 CHARGE AND
REGISTRATION NO.
	  	 CLASS
	  	2006
ASSESSED
VALUE
		  		  	016-605-501	  	Parcel A (SEE 174512I) of Legal Subdivision 10, Section 19, Township 22, Range 26, West of the 5th Meridian, Kootenay District	  		  		  	
							
		  		  	016-605-527	  	That part of legal Subdivision 11, Section 19, Township 22, Range 26, West of the 5th
Meridian, Kootenay District lying South of the left bank of the Incommappleaux River	  		  		  	
							
	II3.	  		  	015-781-798	  	Lot A, District Lot 8548, Kootenay District, Plan 1536 except part included in plan NEP19125	  	Assignment of Statutory Right of Way No. XE30228 (being various rights of ways) registered under No. XF11034	  	N/A	  	N/A
							
		  		  	016-612-302	  	Block B, District Lot 8548, Kootenay District except part included in Plan NEP19125	  		  		  	
							
		  		  	012-059-706	  	District Lot 3498, Kootenay District	  		  		  	
							
		  		  	012-476-790	  	Lot 64, District Lot 373, Kootenay District, Plan 827	  		  		  	
							
		  		  	016-210-913	  	Lot 106, District Lot 400, Kootenay District, Plan 656A	  		  		  	

  

 78 

													
		 	CHARGES IN FAVOUR OF POPE & TALBOT LTD.	  		  	
							
	 	 	 REF.
 NO.
	  	PID	  	 LEGAL
 DESCRIPTION
	  	 TYPE OF
 CHARGE AND
 REGISTRATION NO.
	  	 CLASS
	  	2006
ASSESSED
VALUE
		 		  	016-210-808	  	Lot 104, District Lot 400, Kootenay District, Plan 656A	  		  		  	
							
		 		  	016-210-816	  	Lot 105, District Lot 400, Kootenay District, Plan 656A	  		  		  	
							
		 		  	014-747-383	  	Lot 3, District Lot 9146, Kootenay District, Plan 1269	  		  		  	
							
		 		  	014-546-124	  	Lot 5, District Lot 9146, Kootenay District, Plan 1269	  		  		  	
							
		 		  	014-747-880	  	Lot 6, District Lot 9144, Kootenay District, Plan 1269	  		  		  	
							
		 		  	014-747-961	  	Lot 7, District Lot 9144, Kootenay District, Plan 1269	  		  		  	
							
		 		  	007-894-082	  	Lot 6, District Lots 502 and 505, Kootenay District Plan 756A	  		  		  	
							
		 		  	009-443-096	  	Lot 2, District Lot 505, Kootenay District, Plan 15725	  		  		  	
							
		 		  	009-443-011	  	Lot 1, District Lot 505, Kootenay District Plan 15725	  		  		  	
							
		 		  	015-994-945	  	Lot 63, District Lot 373, Kootenay District, Plan 827	  		  		  	
							
		 		  	008-000-832	  	Block A, District Lot 2445, Kootenay District, except part included in Plan 9406	  		  		  	

  

 79 

													
		  	CHARGES IN FAVOUR OF POPE & TALBOT LTD.	  		  	
							
	 	  	REF.
NO.	  	PID	  	 LEGAL
 DESCRIPTION
	  	 TYPE OF
 CHARGE AND
REGISTRATION NO.
	  	 CLASS
	  	2006
ASSESSED
VALUE
		  		  	006-915-957	  	District Lot 1138, Kootenay District	  		  		  	
							
		  		  	016-051-718	  	Lot 8, District Lot 505, Kootenay District, Plan 756A	  		  		  	
							
		  		  	014-011-140	  	Parcel B (See T20883), District Lot 505, Kootenay District, Plan 756A	  		  		  	
							
		  		  	015-829-570	  	Lot 2, District Lot 301A, Kootenay District, Plan 2149	  		  		  	
							
		  		  	010-625-275	  	Lot 21, District Lot 8069, Kootenay District, Plan 824 except (1) Parcel A (See 158900I) (2) Part included in Plan 2999 (3) Part included in SRW Plan 17048 and (4) part included
in plans 18701 and 18757	  		  		  	
							
	II4.	  		  	016-427-840	  	The East half of District Lot 6020, Kootenay District	  	Assignment of Statutory Right of Way No. K8306 registered under No. XG1360	  	N/A	  	N/A

  

 80 

														
	H.	  	MISCELLANEOUS LEASES
							
	 	  	REF.
NO.	  	PID	 	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	H1.	  	Intentionally Deleted — Expired lease no longer relevant to operations
	H2.	  	00143	  	Shelter Bay
Dump Lease
#403669	 	DL 16284 LEASE #403669	  	Lease	  		  	$	101,000
	H3.	  	Intentionally Deleted — Expired lease no longer relevant to operations
	H4.	  	Intentionally Deleted — Expired lease no longer relevant to operations
	H5.	  	Intentionally Deleted — Expired lease no longer relevant to operations
	H6.	  	Intentionally Deleted — Expired lease replaced by Lease #341103 (H7)
	H7.	  	00213	  	Lebarthe
Lease
#341103
 LBF
#0306539
	 	DL 3484 AND 3456 PT. OF LSD WATERLOT O/S CASTLEGAR MOE LEASE #341103 SEE ALSO PCL 213	  	Waterlot lease [Castlegar]	  	Light Industry	  	$	44,600
	H8.	  	00214	  	Johnson Crk
Lease
#403311
 LBF
#0320645
	 	DL 3495 LEASE #403311	  	Foreshore Lease for Log booming and storage purpose (at. Snag Bay)	  	Light Industry	  	$	29,500
	H9.	  	00215	  	McCormick
Lease #
401737
 LBF
#0233844
	 	DL 3483 LEASED WATERLOT FROM LAND MGMT BRANCH LEASE #401737	  	Foreshore Lease for log handling & storage purposes relating to a waterlot	  	Light Industry	  	$	58,900
	H10.	  	00216	  	Renata Tie
Up Lease
402715
 LBF
#0320644
	 	DL 2425 LEASE #4042715	  	Foreshore Lease for log dump, booming & storage	  	Light Industry	  	$	21,500
	H11.	  	00217	  	Cayuse
Dump Lease
402843
 LBF#
0313119
	 	DL 6942 LEASE #402843	  	Foreshore Lease log dumping ground for log handling and storage purposes	  	Light Industry	  	$	47,900
	H12.	  	00232	  	Fosthall
Ferry Lease
400273
LBF#02975
03	 	DL 2269 LEASE #400273	  	Fosthall Ferry Landing West Foreshore Lease	  	Light Industry	  	$	9,700
	H13.	  	00233	  	Cape Horn
Lease
#401868
LBF#03065
33	 	DL 2680 LEASE #401868	  	Fosthall Ferry Landing East foreshore lease for landing a cable ferry	  	Light Industry	  	$	600

  

 81 

														
	H.	  	MISCELLANEOUS LEASES
							
	 	  	 REF.
 NO.
	  	PID	 	 LEGAL
 DESCRIPTION
	  	 PROPERTY
 DESCRIPTION
	  	 CLASS
	  	2006
ASSESSED
VALUE
	H14.	  	00234	  	Rockslide Tie
Up-Lease
#339491
LBF#
0306675	 	DL 2875 #339491, Lease #339491	  	Log storing and booming purposes	  	Light Industry	  	$	32,200
	H15.	  	00235	  	Smith Bay-
Lease 402716
LBF#03084
52	 	DL 3067 #402716 Lease #402716	  	Foreshore Lease, Smith Bay tie-up for Log booming and storage	  	Light Industry	  	$	28,800
	H16.	  	00236	  	Vipond
Dump Lease
#403636
LBF#
0306532	 	DL 3080 #403636	  	Lease for log handling and storage purposes	  	Light Industry	  	$	20,000
	H17.	  	00237	  	Arrow Park -
Lease#
402779
 LBF#
0308451
	 	DL 3215 LEASE #402779	  	log booming & storage	  	Light Industry	  	$	55,100
	H18.	  	00238	  	Halfway
Dump- Lease
403695
 LBF#
0233614
	 	DL 3482 #403695	  	log booming & storage ground lease	  	Light Industry	  	$	15,700
	H19.	  	00239	  	Fostall
Dump- Lease
402717
 LBF#
0308455
	 	DL 6941 LEASE #402717	  	log booming and storage foreshore lease	  	Light Industry	  	$	28,700
	H20.	  	Intentionally Deleted – Not a lease (item previously described herein is a special use permit)
	H21.	  	Intentionally Deleted – Not a lease (item previously described herein is a special use permit)
	H22.	  	Intentionally Deleted – Expired lease no longer relevant to operations
	H23.	  	00422	  	Octopus
Dump
#403027
LBF#
4401680	 	DL 8062, Kootenay Land Dist, License #403027 together with part of bed of Lower Arrow Lake	  		  	Light Industry	  	$	119,900
	H24.	  	00457	  	Island Point
Lease
#402735
LBF#
4402033	 	Foreshore being part of bed of Lower Arrow Lakes fronting unsurveyed Crown Land. Lots 1 & 4 DL 8068 Plan 894 LBF #4402033	  	Foreshore/Land covered by water lease	  	Light Industry	  	$	52,300
	H25.	  	Intentionally Deleted – Not a lease (item previously described herein is a special use permit)

  

 82 

 SCHEDULE 4.25: Locations of Bank Accounts 
  

											
	 Company
	  	 Bank or Broker
	  	 Address
	  	Transit
No.	  	Account No.	  	 Account Type

	Pope & Talbot,
Inc.	  	Wells Fargo
Bank, N.A.	  	MAC P6101-144
14th Floor
1300 S.W. Fifth Ave
Portland, OR 97201	  		  	4100161074	  	Deposit
		  	Wells Fargo
Bank, N.A.	  	MAC P6101-144
14th Floor
1300 S.W. Fifth Ave
Portland, OR 97201	  		  	9600043847	  	Payroll
		  	Wells Fargo
Bank, N.A.	  	MAC P6101-144
14th Floor
1300 S.W. Fifth Ave
Portland, OR 97201	  		  	9600043851	  	Payables
		  	Wells Fargo
Bank, N.A.	  	MAC P6101-144
14th Floor
1300 S.W. Fifth Ave
Portland, OR 97201	  		  	4100161090	  	Relocation
		  	Wells Fargo
Bank, N.A.	  	MAC P6101-144
14th Floor
1300 S.W. Fifth Ave
Portland, OR 97201	  		  	4100161082	  	Spearfish Workers’
Compensation
		  	Wells Fargo
Bank, N.A.	  	MAC P6101-144
14th Floor
1300 S.W. Fifth Ave
Portland, OR 97201	  		  	4121 336200	  	Concentration
		  	PNC Bank	  	PFPC, Inc.
P.O. Box 8950 Wilmington, DE 19885-9628	  		  	28569	  	Escrow /Restricted Cash

  

 83 

											
	 Company
	  	 Bank or Broker
	  	 Address
	  	Transit
No.	  	Account No.	  	 Account Type

		  	The Toronto -
Dominion Bank	  	The Toronto-Dominion Bank 700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	0363948	  	General
		  	The Toronto -
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	7315545	  	General
	Pope & Talbot
Pulp Sales U.S.,
Inc.	  	 The Toronto -

 Dominion Bank
	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	5248495	  	General
	Pope & Talbot
Spearfish Limited Partnership	  	Wells Fargo
Bank, N.A.	  	MAC P6101-144
14th Floor
1300 S.W. Fifth Ave.
Portland, OR 97201	  		  	4121183859	  	Intercompany
Transfers/Payables for
lumber mill and pellet mill
only
	Pope & Talbot
Ltd.	  	The Toronto -
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	0349619	  	Deposit
		  	The Toronto-
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	0349627	  	Main Disbursement

  

 84 

											
	 Company
	  	 Bank or Broker
	  	 Address
	  	Transit
No.	  	Account No.	  	 Account Type

		  	The Toronto-
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	0349724	  	Payroll
		  	The Toronto-
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	5217425	  	FIA Arrow Timber*
		  	The Toronto-
Dominion Bank	  	 The Toronto-Dominion Bank
700 West Georgia Street,

 Suite 1700
Vancouver, BC
V7Y 1B6
	  	9400	  	5217433	  	FIA Boundary Timber*
		  	The Toronto-
Dominion Bank	  	 The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC

 V7Y 1B6
	  	9400	  	5274968	  	FIA FSJ Timber
		  	The Toronto-
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	7311078	  	Deposit
		  	The Toronto-
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	7328159	  	Concentration

	 *
	 Not being pledged

  

 85 

											
	 Company
	  	 Bank or Broker
	  	 Address
	  	Transit
No.	  	Account No.	  	 Account Type

		  	The Toronto-
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	5277355	  	Concentration
	P&T Funding
Ltd.	  	The Toronto -
Dominion Bank	  	The Toronto-Dominion Bank
77 Kings Street West, 18th Fl.
Toronto, Ontario
M5K 1A2	  	9400	  	0362755	  	General
	P&T Finance One
Limited
Partnership	  	The Toronto -
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	5241504	  	General
	P&T Finance
Two Limited
Partnership	  	The Toronto -
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	5241512	  	General
	P&T Factoring
Limited
Partnership	  	The Toronto -
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	5249092	  	General
	Penn Timber, Inc.	  	The Toronto -
Dominion Bank	  	The Toronto-Dominion Bank
700 West Georgia Street,
Suite 1700
Vancouver, BC
V7Y 1B6	  	9400	  	7323416	  	General

  

 86 

 SCHEDULE 4.26: Loan Party Identification 
  

											
	 Company Name
	  	 Jurisdiction of
Organization
	  	Federal
Employer I.D.	  	Organizational
I.D.	  	 States where
Qualified to
do Business
	  	 Chief Executive Office

	Pope &
Talbot, Inc.	  	Delaware	  	94-0777139	  	0869737	  	South Dakota,
Delaware,
Montana,
Nebraska,
California,
Oregon,
Washington,
Wyoming	  	1500 S.W. First Ave.,
Suite 200
Portland, OR 97201
						
	P&T Power
Company	  	Oregon	  	93-1222710	  	536987-84	  	Oregon	  	1500 S.W. First Ave.,
Suite 200
Portland, OR 97201
						
	Penn Timber,
Inc.	  	Oregon	  	93-0727380

 BC Reg. No.:
A-61150
	  	133366-15	  	Oregon, British
Columbia	  	1500 S.W. First Ave.,
Suite 200
Portland, OR 97201
						
	Pope & Talbot Spearfish
Limited
Partnership	  	South Dakota	  	34-2052569	  	DP001669	  	South Dakota	  	1500 S.W. First Ave.,
Suite 200
Portland, OR 97201
						
	Pope &
Talbot
Relocation
Services, Inc.	  	Oregon	  	93-1029015	  	208172-84	  	Oregon	  	1500 S.W. First Ave.,
Suite 200
Portland, OR 97201
						
	Pope &
Talbot Pulp
Sales U.S.,
Inc.	  	Delaware	  	93-1252041

 BC Reg No.:
A-63632
	  	2936076	  	California,
Delaware,
Idaho, Illinois,
Nevada,
Oregon,
Pennsylvania,
Texas, Virginia
Wisconsin,
British
Columbia	  	1500 S.W. First Ave.,
Suite 200
Portland, OR 97201
						
	Pope &
Talbot
Lumber
Sales, Inc.	  	Delaware	  	93-1297029	  	3238366	  	Alabama,
Arkansas,
Arizona,
California,
Colorado,
Delaware,
Florida, Idaho,
Indiana,
Illinois,
Maryland,
	  	1500 S.W. First Ave.,
Suite 200
Portland, OR 97201

  

 87 

											
	 Company
Name
	  	 Jurisdiction of
Organization
	  	Federal Employer
I.D.	  	Organizational I.D.	  	States where
Qualified to do
Business	  	Chief Executive
Office
		  		  		  		  	Michigan,
Missouri,
Minnesota,
Nevada, New
York, North
Carolina, Ohio,
Pennsylvania,
South
Carolina,
Tennessee,
Vermont, West
Virginia	  	
						
	P & T
Finance
Three LLC	  	Oregon	  	11-3782468	  	362273-95	  	Oregon	  	1500 S.W. First Ave.,
Suite 200
Portland, OR 97201
						
	Pope &
Talbot Ltd.	  	Canada	  	12-2383102	  	Can. 618511-8
BC A0061149	  	British
Columbia,
Canada	  	900 Waterfront Centre,
200 Burrard Street,
PO Box 48600,
Vancouver,
BC V7X 1T2

 1500 S.W. First Ave.,
Suite 200
Portland, OR 97201

						
	P&T Finance
One Limited
Partnership	  	British Columbia	  	98-0418395	  	04-0364730	  	British
Columbia	  	1200-200 Burrard
Street, PO Box
48600, Vancouver,
BC, V7X 1T2

 1500 S.W. First Ave.,
Suite 200
Portland, OR 97201

						
	P&T Finance
Two Limited
Partnership	  	British Columbia	  	98-0417960	  	04-0364821	  	British
Columbia	  	1200-200 Burrard
Street, PO Box
48600, Vancouver,
BC, V7X 1T2

 1500 S.W. First Ave.,
Suite 200
Portland, OR 97201

						
	Mackenzie
Pulp Land
Ltd.	  	British Columbia	  	BC Reg.
No. 625473	  	BC0625473	  	British
Columbia	  	1200-200 Burrard
Street, PO Box
48600, Vancouver,
BC, V7X 1T2

 1500 S.W. First Ave.,
Suite 200
Portland, OR 97201

  

 88 

											
	 Company Name
	  	 Jurisdiction of
Organization
	  	Federal
Employer I.D.	  	Organizational
I.D.	  	States where
Qualified to
do Business	  	Chief Executive Office
	P&T LFP
Investment
Limited
Partnership	  	British
Columbia	  	98-0467476	  	05-0407638	  	British
Columbia	  	1200-200 Burrard
Street, PO Box
48600, Vancouver,
BC, V7X 1T2

 1500 S.W. First Ave.,
Suite 200 Portland, OR
97201

						
	P&T
Factoring
Limited
Partnership	  	British
Columbia	  	65-1241538	  	04-0384564	  	British
Columbia	  	1200-200 Burrard
Street, PO Box
 48600, Vancouver,
BC, V7X 1T2

 
  
 1500 S.W. First Ave.,
Suite 200
Portland, OR 97201

						
	P&T Funding
Ltd.	  	British
Columbia	  	N/A	  	0622497	  	British
Columbia	  	1200-200 Burrard
Street PO Box
48600 Vancouver,
BC V7X 1T2

 1500 S.W. First Ave.,
Suite 200
Portland, OR 97201

  

 89 

 SCHEDULE 4.27: Property located in United States and owned by a Canadian Loan Party 
 Pope & Talbot Ltd. owns the pulp mill, the Cl02 system associated with such pulp mill and all related improvements located on the real property located at 30480
American Drive Halsey, OR 97348. 
  

 90 

 SCHEDULE 6.2(h): Collateral Reporting and Foreign Credit Insurance Reporting 
 Provide Administrative Agent (and if so requested by Administrative Agent, with copies for each Lender) with each of the documents set forth below for the Borrowing Base
Parties at the following times in form satisfactory to the Administrative Agent: 
  

			
	Monthly (no later
than the 20th day of
each month)	  	 (a) a Borrowing Base Certificate,
  
 (b) a detailed aging, by total, or Borrowing Base Parties’ Accounts, together with a reconciliation (including supporting documentation for any reconciling items
noted) to related general ledger accounts,
  
 (c) an Account roll-forward with supporting
details supplied from sales journals, collection journals, credit registers and any other records, tied to the beginning and ending account receivable balances of Borrowing Base Parties’ general ledgers,
  
 (d) a detailed calculation of those Accounts that are not eligible for the Borrowing Base,

 
 (e) Inventory system/perpetual reports specifying the cost and the wholesale market value of
Borrowing Base Parties’ Inventory, by category, together with a reconciliation to related general ledger accounts,
  
 (f) a detailed calculation of Inventory categories that are not eligible for the Borrowing Base,
  
 (g) a summary aging, by vendor, of Borrowing Base Parties’ accounts payable, accrued expenses, book overdrafts, and any held checks, together with a reconciliation
to related general ledger accounts,
  
 (h) a detailed report regarding Borrowing Base
Parties’ cash and Cash Equivalents, including an indication of which amounts constitute Qualified Cash
  
 (i) a reconciliation of Accounts, trade accounts payable, and Inventory of Borrowing Base Parties’ general ledger accounts to their monthly financial statements including any book reserves related to each
category,
  
 (j) a report summarizing intercompany activity for the prior month,
and,
  
 (k) copies of any reporting provided to the insurer under the Eligible Foreign
Accounts Credit Insurance policy.

		
	Quarterly	  	(1) proof of payment or accrual for applicable taxes, including real estate, ad valorem, and Canadian taxes (including any deemed dividend liability).

  

 91 

			
	Upon request by
Administrative
Agent	  	 (m) a detailed list of Borrowing Base Parties’ customers, with address and contact information,
  
 (n) copies of invoices together with corresponding shipping and delivery documents, and credit memos
together with corresponding supporting documentation,
  
 (o) notice of all claims,
offsets, or disputes asserted by Account Debtors with respect to Borrowing Base Parties’ Accounts, and,
  
 (p) such other reports as to the Collateral or the financial condition of Borrowing Base Parties, as the Administrative Agent may reasonably request.

  

 92 

 Schedule 6.16: Change in Collateral 
  

			
	 U.S. Facilities
	  	 Canadian Facilities

	 Oregon Office
 1500 S.W. First Ave.
 Suite 200
 Portland, OR 97201
	  	 Harmac Pulp Mill
 1000 Wave Place
 P.O. Box 1800
 Nanaimo, British Columbia
 V9R 5M5

	 Spearfish Mill
 1510 West Oliver Street
 Spearfish, SD 57783
	  	 Mackenzie Pulp Mill
 1000 Coquawaldy
Road

	Halsey Mill	  	 Mackenzie, British Columbia
 VOJ 2CO

	 30480 American Drive
 Halsey, OR 97348
	  	Fort St. James Sawmill
	 Spokane Reload Facility
 3808 N. Sullivan
Road
	  	 P.O. Box 254
 300 Takla Rd.
 Fort St. James, BC VOJ 1PO

	Spokane, WA	  	
		
	 Northport Reload Facility
 113 3rd Street
 Northport, WA 99157
	  	 Grand Forks Sawmill
 P.O. Box 39
 570 68th Avenue
 Grand Forks, British Columbia

		
	 Newcastle Reload Facility
 200 Faye Ave.
 Newcastle, WY
	  	 Castlegar Sawmill
 Box 2000 Celgar Road
 Castlegar, British Columbia
 VIN 4G4

	 Curlew Reload Facility
 10 Railroad Spur
Street
 Curlew, WA
	  	Midway Sawmill
		  	P.O. Box 70
Highway 3 Midway, British Columbia VOH 1MO

  

 93 

 Schedule 6.16: Change in Collateral 
  

							
	 Company Name
	  	 Warehouse Name
	  	 Address
	  	 City, State, Country

	Agenzia Tripcovich SRL	  	Monfalcone Warehouse	  	Via L. Einaudi 1	  	34121 Trieste, Italy
				
	Aguilar Warehousing	  	PTPS Fontana	  	8938 Etiwanda Avenue	  	Rancho Cucamonga, CA
				
	A.M.T. SRL	  	Naples Warehouse	  	Piazza Municipio 84	  	Naples, Italy
				
	Ancon Service Reload	  	Riverside, CA	  	1151 Palmyrita Avenue	  	Riverside, CA 92507
				
	Babcock Lbr Co. (pine)	  	Gassaway	  	204 Little Buffalo Road	  	Gassaway, WV
				
	Babcock Lbr Co (pine)	  	Hubbard	  	6472 Mt. Everett Rd. SE	  	Hubbard, OH 44425
				
	BlueLinx Corp	  	Denver (Rocky Mtn) - 3rd Party	  	5800 Pecos Street	  	Denver, CO 80221
				
	BlueLinx Corp	  	Memphis	  	4287 Pilot Drive	  	Memphis, TN 38108
				
	BlueLinx Corp	  	Nashville	  	331 28th Ave. North	  	Nashville, TN 37209
				
	BlueLinx Corp	  	Pensacola	  	4601 McCoy Drive	  	Pensacola, FL 32503
				
	BlueLinx Corp	  	Indianapolis (Ruby Park) - 3rd Party	  	3705 E 21st Street	  	Indianapolis, IN 46218
				
	BlueLinx Corp	  	Charleston	  	4290 Atlanta Street	  	Charleston, SC 29418
				
	BlueLinx Corp	  	Minneapolis (Mid America) - 3rd Party	  	4607 Humboldt Ave North	  	Minneapolis, MN 55412
				
	BlueLinx Corp	  	Springfield	  	3220 E Cherry Street	  	Springfield, MO 65802
				
	BlueLinx Corp	  	Buffalo	  	3720 Jeffrey Blvd	  	Blasdell, NY
				
	BlueLinx Corp	  	Rockford (Reload Inc) - 3rd Party	  	1165 Prairie Hill Road	  	Rockford, IL

  

 94 

							
	 Company Name
	  	 Warehouse Name
	  	 Address
	  	 City, State, Country

	BlueLinx Corp	  	Island Pond (RCP) - 3rd Party	  	C/O RCP Transit, 230 E Brighton Road	  	Island Pond, VT 05246
				
	BlueLinx Corp	  	Lackawanna (National Dist) - 3rd Party	  	C/O South Buffalo Dist. 1951 Hamburg Turnpike	  	Lackaswanna, NY 14218
				
	Boise Bldg Solutions	  	Fort Meade	  	8960 Henkels Lane	  	Annapolis Jct, MD 20701
				
	Boise Bldg Solutions	  	Boise	  	4300 Enterprise	  	Boise, ID
				
	Brown Lumber Sales Co	  	Denver (Rocky Mtn) - 3rd Party	  	5800 Pecos Street	  	Denver, CO 80221
				
	California Cartage	  	Mira Loma, CA	  	3401 Etiwanda Ave. Bldg 831-D	  	Mira Loma, CA 97152
				
	Cogema	  	La Pallice Inventory	  	100 Boulevard Emile-Delmas	  	LaPallice, Dedex, France 17009
				
	Corey Brothers Tilbury	  	Tilbury Warehouse	  	21 Berth , Tilbury Dock	  	Tilbury, UK
				
	Cory Brothers Sheerness	  	Sheerness Inventory	  	Main Road, Sheerness Dock	  	Kent, United Kingdom
				
	Columbia River Logistics	  	PTPS Columbia River	  	3900 SE Columbia Way	  	Vancouver, WA
				
	Cosco Terminals	  	Centerm	  	555 Centennail Road	  	Vancouver, BC
				
	Dodero & Dodero	  	Savona Warehouse	  	Via Chiodo 1/3,	  	Savona, Italy 17100
				
	Donnelley Logistics	  	P&TPS Donnelley	  	1141 E. Glendale Avenue	  	Sparks, NV
				
	East Fraser Fibre	  	Analog Warehouse	  	Corner Richey Road	  	Mackenzie, BC
				
	Epperson Lumber Sales, Inc.	  	Statesville	  	128 Foothills Drive	  	Statesville, NC 28677
				
	Felix Ribera E Hijos SA	  	Palamos Warehouse	  	Mille, Sussi Guerrero C/Pages Ortiz 94	  	Palamos, Girona Spain 17230
				
	Fraser River Terminals	  	Fraser River	  	9311 River Drive	  	Richmond, BC

  

 95 

							
	 Company Name
	  	 Warehouse Name
	  	 Address
	  	 City, State, Country

	Fraser Surrey Docks	  	Fraser Surrey Warehouse	  	1160 Elevator Road	  	Surrey, BC
				
	Harbour Warehouse	  	Harbour Warehouse	  	1427 Lougar Street	  	Sarnia, Ontario
				
	HNN Logistics N.V.	  	Antwerp Inventory	  	Kruisweg Haven 650	  	Antwerp, Belgium B-2040
				
	IEDS - Spokane Reload	  	Spokane, WA	  	3808 N Sullivan Road, Bldg N3	  	Spokane, WA 99216
				
	Interior Warehousing Ltd.	  	Interior Warehouse	  	1955 River Road	  	Prince George, BC
				
	J. Muller Terminals	  	Brake Warehouse	  	Nordstrasse 2	  	Brake, Germany D26919
				
	Jennifer Enterprises	  	Chicory Warehouse	  	P.O. Box 610273	  	Port Huron, MI
				
	Leicht Warehouse	  	P&TPS Leicht Warehouse	  	1500 Donald Street	  	Green Bay, WI
				
	Lignum	  	Campo, AZ - 3rd Party	  	C/O PCI, 1820 S 35th Avenue	  	Campo, AZ
				
	Lignum	  	Getz, AZ - 3rd Party	  	C/O Luck Seven, 2500 E Andy Devine	  	Getz, AZ
				
	Lignum	  	Glendale, AZ - 3rd Party	  	C/O Schuck Components, 8205 N 67	  	Glendale, AZ
				
	Lignum	  	Las Vegas, NV - 3rd Party	  	C/O SW Reload, 4740 E Tropical Parkway	  	Las Vegas, NV
				
	Lignum	  	Loveland, CO -3rd Party	  	C/O All Weather Wood, 715 Denver Ave.	  	Loveland, CO
				
	Lignum	  	Winona, AZ - 3rd Party	  	C/O Western Truss 7145 Leupp Road	  	Winona, AZ
				
	Lignum	  	St. Louis, MO - 3rd Party	  	C/O Reload Inc, 1221 South 39th Street	  	St. Louis, MO
				
	MLP 2000 Inc	  	Delson, PQ	  	338 St Francois Xavier	  	Delson, PQ J5B 1Y3
				
	Nanaimo Harbour Commission	  	GAW Nanaimo	  	P.O. Box 131	  	Nanaimo, BC

  

 96 

							
	 Company Name
	  	 Warehouse Name
	  	 Address
	  	 City, State, Country

	National Distribution Services	  	Elsdon, IL	  	3501 West 51st Street	  	Elsdon, IL 60632
				
	Naviport S.R.L.	  	Livorno Warehouse	  	Via Salvatore Orlando 3 1st floor	  	Livorno, Italy 57126
				
	North Pacific	  	Indianapolis	  	310 S Kitley Ave	  	Indianapolis, IN 46219
				
	North Pacific	  	Wyoming	  	5836 Clay Avenue SW	  	Wyoming, MI 49548
				
	North Pacific	  	Mason	  	805 Hull road	  	Mason, MI
				
	North Vancouver Distribution	  	Nvan Distribution	  	1777 West 1st Street	  	North Vancouver, BC
				
	Northgate Terminals Ltd	  	Northgate	  	1331 McKeen Avenue	  	North Vancouver, BC
				
	Partners Warehouse	  	PTPS Peru	  	26634 S. Center Point Drive	  	Elwood, IL 60421
				
	Port of Longview	  	Port of Longview	  	10 Port Way	  	Longview, WA 98632
				
	Port of Portland	  	Port of Portland	  	7201 N Marine Drive	  	Portland, OR 97203
				
	Port of Squamish	  	Squamish Port	  	Squamish Terminal	  	Squamish, BC
				
	Port of Vancouver	  	Port of Vancouver	  	3103 Lower River Road	  	Vancouver, WA
				
	Potlatch Corp	  	P&TPS Potlatch	  	3901 North Donna Street	  	Las Vegas, NV
				
	Potlatch Idaho Pulp & Paperboard	  	P&TPS Lewiston	  	Inland Warehouse, 1730 3rd Avenue North	  	Lewiston, Id
				
	Potlatch Idaho Pulp & Paperboard	  	P&TPS Lewiston	  	803 Mill Road	  	Lewiston, Id
				
	Puget Sound Railroad	  	P&TPS Grays Harbour	  	C/O Puget Sound Rail Road, 801 23 Rd Avenue	  	Hoquiam, Wa

  

 97 

							
	 Company Name
	  	 Warehouse Name
	  	 Address
	  	 City, State, Country

	Quebacor World	  	P&TPS Fernley	  	2200 E. Newlands Drive	  	Fernley, NV 89408
				
	RCP Transit	  	Island Pond, VT	  	230 Route 105 East Brighton Road	  	Island Pond, VT 05846
				
	Riverside Reload Center	  	Riverside, VT	  	46 Steam Town Road	  	Bellows Falls, VT 05101
				
	Sea-Invest France	  	Sete Warehouse	  	3,Quai De La Republique	  	Sete, France
				
	Stanton Grove	  	Liverpool Warehouse	  	Alexandria House	  	Liverpool Terminal Bottle, UK
				
	Stuart Channel Wharves	  	Crofton, BC	  	8359 Crofton Road	  	Crofton, BC
				
	Tangent Industrial Park	  	Tangent Warehouse	  	Bldg 41	  	Tangent, OR
				
	Transload Limited Inc	  	Birmingham, AL	  	3433 35th Street, North	  	Birmingham, AL
				
	Verbrugge Zeeland Terminals	  	HDL/Sappi/Flushing Inventory	  	Engelandweg 12, Haven 1054	  	Vlissingen, Netherlands
				
	Warehouse Specialists Inc.	  	P&T WSI	  	2455 NW 26th Avenue	  	Portland, OR 97210
				
	Warehouse Specialists Inc.	  	PTPS JH Blandon	  	7144 Daniels Drive	  	Allentown, PA 18106
				
	Westend Storage	  	Westend Storage	  	560 Wallrich Avenue	  	Cornwall, Ontario
				
	Western Stevedoring Co.	  	Lynnterm East/West	  	15 Mountain Way	  	North Vancouver, BC

  

 98 

 SCHEDULE 7.3(f): Existing Liens 
  

	 	•	 	 Lien in favor of Linn County, Oregon with respect to payment of taxes in the amount of $536,364.36. 

  

	 	•	 	 Lien in favor of Multnomah County, Oregon with respect to payment of taxes in the amount of $12,500. 

  

	 	•	 	 Lien in favor of Industra/Matric Joint Venture Inc. with respect to judgment in the amount of $240. 

  

	 	•	 	 Lien in favor of Associates Commercial Corp. with respect to Indebtedness in the amount of $23,206. 

  

	 	•	 	 Lien in favor of Peter T. Pope with respect to the Peter T. Pope Art Collection. 

  

	 	•	 	 Liens with respect to specific equipment of Pope & Talbot, Inc. in favor of IBM Credit Corporation. 

  

	 	•	 	 Liens with respect to specific equipment of Pope & Talbot, Inc. in favor of IBM Credit LLC. 

  

	 	•	 	 Liens with respect to specific equipment of Pope & Talbot, Inc. in favor of NMHG Financial Services, Inc. 

  

	 	•	 	 Liens with respect to specific equipment of Pope & Talbot, Inc. in favor of Toyota Motor Credit Corporation. 

  

	 	•	 	 Liens with respect to specific equipment of Pope & Talbot, Inc. in favor of Winthrop Resources Corporation. 

  

	 	•	 	 Liens with respect to specific equipment of Pope & Talbot, Inc. in favor of Caterpillar Financial Services. 

  

	 	•	 	 Lien in favor of K&D Logging Ltd. with respect to nonpayment of services rendered in the amount of $822,816.80. 

  

	 	•	 	 Lien in favor of Newland Enterprises Ltd. with respect to nonpayment of services rendered in the amount of $1,104,475.10. 

  

	 	•	 	 The Liens set forth on Annex A attached hereto. 

  

 99 

 SCHEDULE 7.8: Existing Investments 
  

													
	 Grantor
	 	 Issuer
	 	 Type of
Organization
	 	 # of
 Shares
 Owned
	 	 Total
 Shares
 Outstanding
	 	 Certificate
 No.
	 	 Par
 Value

	Pope & Talbot, Inc.	 	P&T Power Company	 	Corporation	 	1,000	 	1,000	 	1	 	No par
							
	Pope & Talbot, Inc.	 	Penn Timber Inc.	 	Corporation	 	680	 	2,000	 	3	 	$1/share
							
	Pope & Talbot, Inc.	 	Penn Timber Inc.	 	Corporation	 	1320	 	2,000	 	2	 	$1/share
							
	Pope & Talbot, Inc.	 	Hasley C1O2 Limited Partnership	 	Limited Partnership	 	1% (general partner)	 	100% of partnership interests are outstanding	 	uncertificated	 	N/A
							
	Pope & Talbot, Inc.	 	Pope & Talbot Lumber Sales, Inc.	 	Corporation	 	100	 	100	 	2	 	$.01/share
							
	Pope & Talbot, Inc.	 	Pope & Talbot Pulp Sales U.S., Inc.	 	Corporation	 	100	 	100	 	1	 	$.01/share
							
	Pope & Talbot, Inc.	 	 Pope & Talbot Relocation Services,
 Inc.
	 	Corporation	 	100	 	100	 	1	 	$10/share
							
	Pope & Talbot, Inc.	 	Pope & Talbot Ltd.	 	Corporation	 	100	 	100	 	CB-1	 	No par value
							
	Pope & Talbot, Inc.	 	P & T Finance Three LLC	 	Limited Liability Company	 	100%	 	100% of membership interests are outstanding	 	1	 	N/A
							
	P&T Funding Ltd.	 	Pope & Talbot Spearfish Limited Partnership	 	Limited Partnership	 	0.1% (limited partner)	 	100% of partnership interests are outstanding	 	2	 	N/A
							
	Pope & Talbot, Ltd.	 	Pope & Talbot Spearfish Limited Partnership	 	Limited Partnership	 	99.9% (general partner)	 	100% of partnership interests are outstanding	 	1	 	N/A
							
	Pope & Talbot, Inc.	 	P&T Finance One Limited Partnership	 	Limited Partnership	 	99% (limited partner)	 	100% of partnership interests are outstanding	 	LP-1	 	N/A
							
	Penn Timber Inc.	 	P&T Finance One Limited Partnership	 	Limited Partnership	 	1% (general partner)	 	100% of partnership interests are outstanding	 	GP-1	 	N/A

  

 100 

													
	 Grantor
	 	 Issuer
	 	 Type of
Organization
	 	 # of
 Shares
 Owned
	 	 Total
 Shares
 Outstanding
	 	 Certificate
 No.
	 	 Par
 Value

	Penn Timber Inc.	 	P&T Finance Two Limited Partnership	 	Limited Partnership	 	1% (general partner)	 	100% of partnership interests are outstanding	 	GP-1	 	N/A
							
	P&T Finance One Limited Partnership	 	P&T Finance Two Limited Partnership	 	Limited Partnership	 	99% (limited partner)	 	100% of partnership interests are outstanding	 	LP-1	 	N/A
							
	Pope & Talbot Ltd.	 	Mackenzie Pulp Land Ltd.	 	Corporation	 	1	 	1	 	C-3	 	No par value
							
	P &T Funding Ltd.	 	P&T LFP Investment Limited Partnership	 	Limited Partnership	 	0.1% (general partner)	 	100% of partnership interests are outstanding	 	Unit Certificate No. GP001	 	N/A
							
	Pope & Talbot Ltd.	 	P&T LFP Investment Limited Partnership	 	Limited Partnership	 	99.9% (limited partner)	 	100% of partnership interests are outstanding	 	Unit Certificate No. LP001	 	N/A
							
	P & T LFP Investment Limited Partnership	 	Lignum Forest Products LLP	 	Limited Liability Partnership	 	20%	 	100% of partnership interests are outstanding	 	uncertificated	 	N/A
							
	Pope & Talbot Inc.	 	P&T Factoring Limited Partnership	 	Limited Partnership	 	89.9% (limited partner)	 	100% of partnership interests are outstanding	 	LP-1	 	N/A
							
	Pope & Talbot, Pulp sales Inc.	 	P&T Factoring Limited Partnership	 	Limited Partnership	 	10% (general partner)	 	100% of partnership interests are outstanding	 	GP-1	 	N/A
							
	Pope & Talbot Ltd.	 	P&T Factoring Limited Partnership	 	Limited Partnership	 	0.1% (general partner)	 	100% of partnership interests are outstanding	 	GP-2	 	N/A
							
	Pope & Talbot Inc.	 	P&T Funding Ltd.	 	Corporation	 	1	 	1	 	C-3	 	No par value
							
	Pope & Talbot Pulp Sales U.S., Inc.	 	Pope & Talbot Pulp Sales Europe, LLC	 	Limited Liability Company	 	890	 	1,000	 	uncertified	 	$.00/share
							
	Pope & Talbot, Inc.	 	Pope & Talbot Pulp Sales Europe, LLC	 	Limited Liability Company	 	110	 	1,000	 	uncertified	 	$.00/share

  

 101 

 Note: de minimis shares of stock held in various companies for the purpose of obtaining annual reports not included in
this Schedule. 
 Guaranteed Investment Contracts 
  

							
	Pope & Talbot Ltd.	 	 Canadian Imperial
 Bank of
 Commerce
	 	 Box 670
 Grand Forks,
 BC VOH 1H0
	 	38-7869875
				
	Pope & Talbot Ltd.	 	 Canadian Imperial
 Bank of
 Commerce
	 	 Box 670
 Grand Forks,
 BC VOH 1H0
	 	37-9659875
				
	Pope & Talbot Ltd.	 	 Canadian Imperial
 Bank of
 Commerce
	 	 Box 670
 Grand Forks,
 BC VOH 1H0
	 	94-0992671
				
	Pope & Talbot Ltd.	 	 Canadian Imperial
 Bank of
 Commerce
	 	 Box 670
 Grand Forks,
 BC VOH 1H0
	 	35-0400571
				
	Pope & Talbot Ltd.	 	 Canadian Imperial
 Bank of
 Commerce
	 	 Commerce Place
 400 Burrard St.
 Vancouver, BC
 V6C 3A6
	 	22-4839675

  

 102 

 SCHEDULE 7.17: Deposit Accounts and Securities Accounts 
 Account number 7323416 held by Penn Timber, Inc. at The Toronto Dominion Bank. 
  

 103 

 Annex A to Schedule 7.3(f) 
 Canadian Lien Search Results 
 On file with SR&Z. 
  

 104 

 EXHIBIT A 
 FORM OF COMPLIANCE CERTIFICATE 
 [on Borrower’s letterhead] 
  

	To:	ABLECO FINANCE LLC, as Collateral Agent 

 299 Park Avenue

 Floors 21-23 
 New York, New
York 10171 
 Attention: Mr. Seth Fink 
  

	 	Re:	Compliance Certificate dated                     

 Ladies and Gentlemen: 
 Reference is made to that certain Debtor-in-Possession Credit and Security Agreement dated as of November     , 2007 (such agreement, as amended, restated, supplemented or otherwise modified from time to time,
including any replacement agreement therefor, being hereinafter referred to as the “Credit Agreement”), among Pope & Talbot, Inc., a Delaware corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code
and as a debtor company under the CCAA (the “Parent”), Pope & Talbot Ltd., a Canadian corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code and as a debtor company under the CCAA (the
“Borrower”), the Guarantors set forth on the signature pages thereto, the several lenders from time to time party thereto (the “Lenders”), Wells Fargo Financial Corporation Canada, a Nova Scotia unlimited liability
company, as administrative agent (in such capacity, together with its permitted successors and assigns, the “Administrative Agent”), Ableco Finance LLC, as Collateral Agent (in such capacity, together with its permitted successors
and assigns, the “Collateral Agent “) and Ableco Finance LLC, as Term Loan B Agent (in such capacity, together with its permitted successors and assigns, the “Term Loan B Agent”). Capitalized terms used in this
Compliance Certificate have the meanings set forth in the Credit Agreement unless specifically defined herein. 
 Pursuant to
Section 6.2 of the Credit Agreement, the undersigned Responsible Officer of the Parent hereby certifies that: 
 1. The financial
information of the Parent and its Subsidiaries furnished in Schedule 1 attached hereto, has been prepared in accordance with GAAP (except for year-end adjustments and the lack of footnotes), and fairly presents in all material respects the
financial condition of the Parent and its Subsidiaries. 
 2. Such officer has reviewed the terms of the Credit Agreement and has made, or
caused to be made under his/her supervision, a review in reasonable detail of the transactions and condition of the Parent and its Subsidiaries during the accounting period covered by the financial statements delivered pursuant to
Section 6 of the Credit Agreement. 

 3. Such review has not disclosed the existence on and as of the date hereof, and the undersigned does not
have knowledge of the existence as of the date hereof, of any event or condition that constitutes a Default or Event of Default, except for such conditions or events listed on Schedule 2 attached hereto, specifying the nature and period of
existence thereof and what action the Parent and its Subsidiaries have taken, are taking, or propose to take with respect thereto. 
 4. The
representations and warranties of the Parent and its Subsidiaries set forth in the Credit Agreement and the other Loan Documents are true and correct on and as of the date hereof (except to the extent that they relate to a specified earlier date in
which case such representations and warranties are true and correct as of such earlier date), except as set forth on Schedule 3 attached hereto. 
 5. To the extent not previously disclosed to the Agents, Schedule 4 attached hereto contains a list which sets forth any jurisdiction where any Loan Party keeps inventory or equipment with a Book Value in
excess of $500,000 at any one location and of any registered Intellectual Property acquired by any Loan Party since the date of the most recent list delivered to the Agents pursuant to clause (y) of Section 6.2(b)(ii) of the Credit
Agreement (or, in the case of the first such list so delivered, since the Interim Facility Effective Date) and contains copies of all filings or other actions to be taken with respect thereto as required by the Credit Agreement, any Bankruptcy Court
Order or any other Loan Document. 

 IN WITNESS WHEREOF, this Compliance Certificate is executed by the undersigned this
         day of                     ,
            . 
  

			
	POPE & TALBOT, INC., as a Debtor and Debtor-in-
Possession under the US Bankruptcy Code and as a
debtor company under the CCAA
		
	By:	 	  

	Name:	 	
	Title:	 	

 SCHEDULE 1 
 Financial Information 

 SCHEDULE 2 
 Default or Event of Default 

 SCHEDULE 3 
 Representations and Warranties 

 SCHEDULE 4 
 Collateral Locations, Filings and Actions 

 EXHIBIT B 
 FORM OF CLOSING CERTIFICATE 
 [Name of Loan Party] 
 The undersigned,                     , in his
capacity as [Title of Responsible Officer] of                     , a
                     [corporation] [limited liability company] [limited partnership] (the “Company”), is delivering this
certificate pursuant to Section 5.1(h) of the Debtor-in-Possession Credit and Security Agreement, dated as of November     , 2007 (the “Credit Agreement”), among Pope & Talbot, Inc., a
Delaware corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code and as a debtor company under the CCAA (the “Parent”), Pope & Talbot Ltd., a Canadian corporation, as a debtor and debtor-in-possession
under the US Bankruptcy Code and as a debtor company under the CCAA (the “Borrower”), the Guarantors set forth on the signature pages thereto, the several banks and other financial institutions or entities from time to time party
thereto (the “Lenders”), Wells Fargo Financial Corporation Canada, a Nova Scotia unlimited liability company, as administrative agent (in such capacity, together with its permitted successors and assigns, the “Administrative
Agent”), Ableco Finance LLC, as Collateral Agent (in such capacity, together with its permitted successors and assigns, the “Collateral Agent”) and Ableco Finance LLC, as Term Loan B Agent (in such capacity, together with
its permitted successors and assigns, the “Term Loan B Agent”). All capitalized terms used and not defined herein have the same meanings herein as set forth in the Credit Agreement. 
 As required by the Credit Agreement, I hereby certify that: 
 (a) attached hereto as Exhibit A is a true, correct and complete copy of the [certificate of incorporation] [certificate of formation] [certificate of limited partnership] of the Company, together with all
amendments thereto, as in effect on and as of the date hereof; 
 (b) attached hereto as Exhibit B is a true, correct and complete
copy of the [by-laws] [operating agreement] [limited partnership agreement] of the Company, together with all amendments thereto, as in effect on and as of the date hereof; 
 (c) attached hereto as Exhibit C is a true, correct and complete copy of the resolutions adopted by the [board of directors] [managing member]
[general partner] authorizing (i) the borrowings and transactions contemplated by the Loan Documents to which the Company is or will be a party, and (ii) the execution, delivery and performance by the Company of each Loan Document to which
the Company is or will be a party and the execution and delivery of the other documents to be delivered by the Company in connection therewith, which resolutions remain in full force and effect without amendment or modification on and as of the date
hereof; 

 (d) the following persons have been duly elected are, qualified and are acting as officers of the Company
on the date hereof, the signatures opposite their names are their true signatures and such persons are authorized to sign each Loan Document, the Borrowing Notice and any other notices, certificates or agreements to which the Company is or will be a
party and the other documents to be executed and delivered by the Company in connection therewith: 
  

					
	 Name
	 	 Office
	 	 Signature

			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 

 (e) the representations and warranties of the Company contained in Section 4 of the Credit
Agreement and in each other Loan Document and certificate or other writing delivered to any Secured Party pursuant to the Credit Agreement on or prior to the Interim Facility Effective Date are true and correct on and as of the Interim Facility
Effective Date as though made on and as of such date; 
 (f) no Default or Event of Default has occurred and is continuing on the Interim
Facility Effective Date or would result from the Credit Agreement or the other Loan Documents becoming effective in accordance with its or their respective terms; and 
 (g) attached hereto as Exhibit D is a true, correct and complete copy of the good standing certificates of the Company, certified by the appropriate official(s) of the state or other applicable jurisdiction of
organization and each state of foreign qualification of the Company. 
 [signature page follows] 
 Signature page to Closing Certificate for 
 [Name of Loan Party] 

 IN WITNESS WHEREOF, the undersigned has executed and delivered this certificate as of the
     day of November, 2007. 
  

			
	By:	 	  

	Name:	 	
	Title:	 	

 I,
                            , the [Title of another Responsible Officer] of the Company, hereby
certify that                              is the duly elected, qualified and acting [Title of
Responsible Officer] of the Company and that the signature appearing above is his genuine signature. 
 IN WITNESS WHEREOF, I have
hereunto signed my name. 
 Dated: November     , 2007 
  

			
	By:	 	  

	Name:	 	
	Title:	 	

 Signature page to Closing Certificate for 
 [Name of Loan Party] 

 EXHIBIT C 
 FORM OF ASSIGNMENT AND ACCEPTANCE 
 Dated
                 ,          
 Reference is made to the Debtor-in-Possession Credit and Security Agreement, dated as of November     , 2007 (such agreement, as amended, restated, supplemented or otherwise modified from
time to time, including any replacement agreement therefore, being hereinafter referred to as the “Credit Agreement”), among Pope & Talbot, Inc., a Delaware corporation, as a debtor and debtor-in-possession under the US
Bankruptcy Code and as a debtor company under the CCAA (the “Parent”), Pope & Talbot Ltd., a Canadian corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code and as a debtor company under the CCAA
(the “Borrower”), the Guarantors set forth on the signature pages thereto, the several lenders from time to time party thereto (the “Lenders”), Wells Fargo Financial Corporation Canada, a Nova Scotia unlimited
liability company, as administrative agent (in such capacity, together with its permitted successors and assigns, the “Administrative Agent”), Ableco Finance LLC, as Collateral Agent (in such capacity, together with its permitted
successors and assigns, the “Collateral Agent”) and Ableco Finance LLC, as Term Loan B Agent (in such capacity, together with its permitted successors and assigns, the “Term Loan B Agent”). Capitalized terms defined
in the Credit Agreement are used in this assignment and acceptance (this “Agreement”) as defined therein. 
                      (solely in its capacity as a Lender under the Credit Agreement) (the “Assignor”) and
                     (the “Assignee”), agree as follows: 
 1. The Assignor hereby sells and assigns to the Assignee, without recourse, representation or warranty, and the Assignee hereby purchases and assumes from
the Assignor, on the Effective Date (as defined below), an interest as set forth in Exhibit A attached hereto (the “Assigned Interest”) in and to (i) all of the Assignor’s right, title and interest with respect to
each Loan set forth in Exhibit A, and (ii) to the extent related thereto, all of the Assignor’s rights and obligations, solely as a Lender, under the Credit Agreement and any other Loan Document (including, without limitation,
(A) if the Assignor’s Commitment with respect to any such Loan shall not have been terminated, the Assignor’s Commitment with respect to such Loan set forth in the Credit Agreement, (B) the outstanding principal amount of such
Loan made by the Assignor, and (C) the Assignor’s Pro Rata Share of the obligations of each Loan Party under the Credit Agreement and the Loan Documents). The Assigned Interest (expressed as a percentage) in each Loan is set forth in
Exhibit A opposite the name of the corresponding Loan. 
 2. The Assignor (i) represents and warrants as of the date hereof that
its Commitment, or if its Commitment shall have been terminated, the outstanding principal amount, with respect to each Loan assigned hereunder is equal to or in excess of the Assigned Interest (without giving effect to assignments thereof which
have not yet become effective); (ii) represents and warrants that it is the legal and beneficial owner of the interest it is assigning hereunder; (iii) makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made by or in connection with the Credit 

 
Agreement or any other Loan Document or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any
other Loan Document, or any other instrument or document furnished pursuant thereto and (iv) makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Loan Party or the performance or
observance by any Loan Party of any of its obligations under the Credit Agreement, any other Loan Document or any other instrument or document furnished pursuant thereto. 
 (a) The Assignee represents and warrants that it has become a party hereto solely in reliance upon its own independent investigation of the financial
and other circumstances surrounding the Loan Parties, the Collateral, the Loans and all aspects of the transactions evidenced by or referred to in the Loan Documents, or has otherwise satisfied itself thereto, and that it is not relying upon any
representation, warranty or statement (except any such representation, warranty or statement expressly set forth in this Agreement) of the Assignor in connection with the assignment made under this Agreement. The Assignee further acknowledges that
the Assignee will, independently and without reliance upon the Assignor or any other Secured Party and based upon the Assignee’s review of such documents and information as the Assignee deems appropriate at the time, make and continue to make
its own credit decisions in entering into this Agreement and taking or not taking action under the Loan Documents. The Assignor shall have no duty or responsibility either initially or on a continuing basis to make any such investigation or any such
appraisal on behalf of the Assignee or to provide the Assignee with any credit or other information with respect thereto, whether coming into its possession before the making of the initial extension of credit under the Credit Agreement or at any
time or times thereafter. 
 (b) The Assignee represents and warrants to the Assignor that it has experience and expertise in the making of
loans such as the Loans or with respect to the other types of credit which may be extended under the Credit Agreement; that it has acquired its Assigned Interest for its own account and not with any intention of selling all or any portion of such
interest; and that it has received, reviewed and approved copies of all Loan Documents. 
 (c) The Assignor shall not be responsible to the
Assignee for the execution, effectiveness, accuracy, completeness, legal effect, genuineness, validity, enforceability, collectibility or sufficiency of any of the Loan Documents or for any representations, warranties, recitals or statements made
therein or in any written or oral statement or in any financial or other statements, instruments, reports, certificates or any other documents made or furnished or made available by the Assignor to the Assignee or by or on behalf of the Loan Parties
to the Assignor or the Assignee in connection with the Loan Documents and the transactions contemplated thereby or for the financial condition or business affairs of the Loan Parties or any other Person liable for the payment of any Loan or payment
of amounts owed in connection with other extensions of credit under the Credit Agreement or the value of the Collateral or any other matter. The Assignor shall not 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 Loan Documents or as to the use of the proceeds of the Loans or other extensions of credit under the Credit Agreement or as to the existence or possible existence of any
Event of Default or Default. 
  

 - 2 - 

 (d) Each party to this Agreement represents and warrants to the other party to this Agreement that it
has full power and authority to enter into this Agreement and to perform its obligations under this Agreement in accordance with the provisions of this Agreement, that this Agreement has been duly authorized, executed and delivered by such party and
that this Agreement constitutes a legal, valid and binding obligation of such party, enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, moratorium or other similar laws affecting
creditors’ rights generally and by general equitable principles. 
 (e) Each party to this Agreement represents and warrants that the
making and performance by it of this Agreement do not and will not violate any law or regulation of the jurisdiction of its incorporation or any other law or regulation applicable to it. 
 (f) Each party to this Agreement represents and warrants that all consents, licenses, approvals, authorizations, exemptions, registrations, filings,
opinions and declarations from or with any agency, department, administrative authority, statutory corporation or judicial entity necessary for the validity or enforceability of its obligations under this Agreement have been obtained, and no
governmental authorizations other than any already obtained are required in connection with its execution, delivery and performance of this Agreement. 
 (g) The Assignor represents and warrants that it is the legal and beneficial owner of the interest being assigned and that such interest is free and clear of any Lien. 
 (h) The Assignor makes no representation or warranty and assumes no responsibility with respect to the operations, condition (financial or otherwise),
business or assets of the Loan Parties or the performance or observance by the Loan Parties of any of their obligations under the Credit Agreement or any other Loan Document. 
 (i) The Assignee appoints and authorizes the Agents to take such action as an agent on its behalf and to exercise such powers under the Loan Documents
as are delegated to the Agents by the terms thereof, together with such powers as are reasonably incidental thereto. 
 (j) The Assignee
agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement and other Loan Documents are required to be performed by it as a Lender. 
 (k) The Assignee confirms that it has received all documents and information it has deemed appropriate to make its own credit analysis and decision to
enter into this Agreement. 
 (l) The Assignee specifies as its address for notices the office set forth beneath its name on the signature
pages hereof. 
 3. The effective date for this Agreement shall be (a) in the case of a Related Party Assignment, the later of
(i)              and (ii) the date this Agreement is recorded on the 

  

 - 3 - 

 
Related Party Register, and (b) in all other cases, the later of
(i)                  ,         , which date is at least three (3) Business Days after (A) the
execution of this Agreement, (B) the delivery of this Agreement to the Administrative Agent for acceptance, and (C) the payment of the processing and recordation fee of $3,500 to the Administrative Agent, (ii) the date on which the
Assignor has received the payment, in immediately available funds, from the Assignee of $            , which amount represents the purchase price for the Assigned Interest and
(iii) the date this Agreement is recorded on the Register (such date, the “Effective Date”). 
 4. Upon such
acceptance, as of the Effective Date (i) the Assignee shall, in addition to the rights and obligations under the Credit Agreement and the other Loan Documents held by it immediately prior to the Effective Date, have the rights and obligations
under the Credit Agreement and the other Loan Documents that have been assigned to it pursuant to this Agreement, and (ii) the Assignor shall, to the extent provided in this Agreement, relinquish its rights and be released from its obligations
under the Credit Agreement and the other Loan Documents that have been assigned by the Assignor to the Assignee pursuant to this Agreement. 
 5. Upon such acceptance, from and after the Effective Date and the delivery of a fully executed copy of this Agreement to the Collateral Agent in accordance with Section 10.6(e) of the Credit Agreement, the Agents shall make all
payments under the Credit Agreement in respect of the rights assigned hereby (including, without limitation, all payments of principal, interest and fees with respect thereto) to the Assignee. If the Assignor receives or collects any payment of
interest or fees attributable to the interests assigned to Assignee by this Agreement which has accrued after the Effective Date, the Assignor shall distribute to the Assignee such payment. If the Assignee receives or collects any payment of
interest or fees which is not attributable to the interests assigned to the Assignee by this Agreement or which has accrued on or prior to the Effective Date, the Assignee shall distribute to the Assignor such payment. 
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 - 4 - 

 6. This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the
State of New York applicable to contracts made and to be performed entirely therein without consideration as to choice of law. 
  

			
	[ASSIGNOR]
		
	By:	 	  

	Name:	 	
	Title:	 	
	Date:	 	
	
	[ASSIGNEE]
		
	By:	 	  

	Name:	 	
	Title:	 	
	Date:	 	

  

					
	 NOTICE ADDRESS AND PAYMENT
 INSTRUCTIONS
FOR ASSIGNEE

	
	Wire Instructions:
			
	Bank Name:	 	  
	 	
	ABA #:	 	  
	 	
	A/C:	 	  
	 	
	FFC:	 	  
	 	
	Ref:	 	  
	 	
	Attn:	 	  
	 	
			
	Notices:	 		 	
			
	  
	 		 	
	  
	 		 	
	  
	 		 	
	  
	 		 	

 Signature Page to Assignment and 
 Acceptance 

			
	 ACCEPTED this              day
 of                     
            

	
	[WELLS FARGO FINANCIAL CORPORATION CANADA,
	as Issuing Lender
		
	By:	 	  

	Name:	 	
	Title:]	 	
	
	[WELLS FARGO FINANCIAL CORPORATION CANADA,
	as Swingline Lender
		
	By:	 	  

	Name:	 	
	Title:]	 	
	
	 [WELLS FARGO FINANCIAL CORPORATION CANADA,
 as Administrative Agent]

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	ABLECO FINANCE LLC
	as Collateral Agent
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 ABLECO FINANCE LLC,
 as Term Loan B Agent

		
	By:	 	  

	Name:	 	
	Title:	 	

 Signature Page to Assignment and 
 Acceptance 

 EXHIBIT A 
  

	1.	Borrower: 

 Pope & Talbot Ltd., as a debtor and
debtor-in-possession under the US Bankruptcy Code and as a debtor company under the CCAA 
  

	2.	Name and Date of main Loan Document: 

 Debtor-in-Possession
Credit and Security Agreement, dated as of November     , 2007, among Pope & Talbot, Inc., a Delaware corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code and as a debtor company under
the CCAA (the “Parent”), Pope & Talbot Ltd., a Canadian corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code and as a debtor company under the CCAA (the “Borrower”), the Guarantors
set forth on the signature pages thereto, the several lenders from time to time party thereto (the “Lenders”), Wells Fargo Financial Corporation Canada, a Nova Scotia unlimited liability company, as administrative agent (in such
capacity, together with its permitted successors and assigns, the “Administrative Agent”), Ableco Finance LLC, as Collateral Agent (in such capacity, together with its permitted successors and assigns, the “Collateral
Agent”) and Ableco Finance LLC, as Term Loan B Agent (in such capacity, together with its permitted successors and assigns, the “Term Loan B Agent”). 
  

	3.	

  

											
	 Type of Loans
	 	 Amount
of
Outstanding
Loans owned
by Assignor
	 	 Assignor’s
 Remaining
 Commitment

for such
 Loans
	  	 Amount of
 Portion of
Assignor’s
Outstanding
 Loans to be
assigned to
 Assignee
	  	 Amount of
Assignor’s
Commitment
 for such
 Loans to be
assigned
to
 Assignee
	  	 Percentage
 Interest of
 Portion
of
Assignor’s
 Loans and
Commitment
 to be assigned
 to Assignee

		 		 		  		  		  	

 EXHIBIT E 
 FORM OF GUARANTY 
 GUARANTY (this “Guaranty”), dated as of November
    , 2007, made by each party listed as a “Guarantor” on the signature pages hereto (together with each other Person (as defined in the Credit Agreement referred to below) that guarantees all or any portion of
the Obligations (as defined in the Credit Agreement referred to below) from time to time, each a “Guarantor” and collectively, jointly and severally, the “Guarantors”), in favor of Ableco Finance LLC, as collateral
agent (the “Collateral Agent”), for the benefit of the Secured Parties (as defined in the Credit Agreement referred to below), pursuant to the Credit Agreement referred to below. 
 W I T N E S S E T H: 
 WHEREAS, Pope & Talbot, Inc., a Delaware corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code (the
“Parent”), Pope & Talbot Ltd., a Canadian corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code and as a debtor company under the CCAA (the “Borrower”), the Guarantors set forth on
the signature pages thereto, the several lenders from time to time parties to the Credit Agreement referred to below (the “Lenders”), Wells Fargo Financial Corporation Canada, a Nova Scotia unlimited liability company, as
administrative agent (in such capacity, together with its permitted successors and assigns, the “Administrative Agent”), the Collateral Agent and Ableco Finance LLC, as Term Loan B Agent (in such capacity, together with its
permitted successors and assigns, the “Term Loan B Agent”), are parties to a Debtor-in-Possession Credit and Security Agreement, dated as of the date hereof (such agreement, as amended, restated, supplemented or otherwise modified
from time to time, including any replacement agreement therefor, being hereinafter referred to as the “Credit Agreement”); 
 WHEREAS, the Parent directly or indirectly owns all of the issued and outstanding Capital Stock of the Borrower and each other Guarantor, and each Guarantor (other than the Parent) is a direct or indirect Subsidiary or an Affiliate of the
Borrower; 
 WHEREAS, pursuant to Section 5.1(a) of the Credit Agreement, each Guarantor is required to execute and deliver to the
Collateral Agent, for the benefit of the Secured Parties (as defined in the Credit Agreement), a guaranty guaranteeing all Loans (as defined in the Credit Agreement) and all other Obligations (as defined in the Credit Agreement) of the Borrower
under the Credit Agreement; and 
 WHEREAS, each Guarantor has determined that its execution, delivery and performance of this Guaranty
directly benefit, and are within the corporate purposes and in the best interests of, such Guarantor; 
 NOW, THEREFORE, in consideration of
the premises and the agreements herein and in order to induce the Lenders to make and maintain the Loans, issue the Letters of Credit and provide other financial accommodations pursuant to the Credit Agreement, each Guarantor hereby agrees with the
Collateral Agent, for the benefit of the Secured Parties, as follows: 
 SECTION 1. Definitions. Reference is hereby made to the Credit
Agreement for a statement of the terms thereof. All terms used in this Guaranty which are defined in the Credit Agreement and not otherwise defined herein shall have the same meanings herein as set forth therein. 

 SECTION 2. Guaranty. Each Guarantor hereby (i) unconditionally and irrevocably, jointly and
severally, guarantees to the Collateral Agent, for the benefit of the Secured Parties, the punctual payment, as and when due and payable, whether by scheduled maturity, required prepayment, acceleration, demand or otherwise, of all Obligations from
time to time owing under any Loan Document, whether for principal, interest, all reimbursement obligations or other liabilities with respect to any other financial accommodations (including, without limitation, in respect of Letters of Credit and
Bank Product Obligations) extended to the Borrower pursuant to the Credit Agreement and the other Loan Documents, and all reasonable fees, commissions, expense reimbursements, indemnifications or otherwise (such Obligations, being hereinafter
referred to as the “Guaranteed Obligations”), and (ii) agrees to pay any and all reasonable expenses (including reasonable counsel fees and expenses) incurred by any of the Secured Parties in enforcing any rights under this
Guaranty. 
 SECTION 3. Guaranty Absolute; Continuing Guaranty; Assignments. 
 (a) Each Guarantor hereby jointly and severally guarantees that the Guaranteed Obligations will be paid strictly in accordance with the terms of the Loan
Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Secured Parties with respect thereto. Each Guarantor agrees that this Guaranty constitutes a
guaranty of payment when due and not of collection and waives any right to require that any resort be made by any Secured Party to any Collateral. The obligations of each Guarantor under this Guaranty are independent of the Obligations, and a
separate action or actions may be brought and prosecuted against such Guarantor to enforce such obligations, irrespective of whether any action is brought against the Borrower or any other Loan Party or whether the Borrower or any other Loan Party
is joined in any such action or actions. The liability of each Guarantor under this Guaranty shall be irrevocable, absolute and unconditional irrespective of, and each Guarantor hereby irrevocably waives any defenses it may now or hereafter have in
any way relating to, any or all of the following: 
 (i) any lack of validity or enforceability of any Loan Document or any agreement or
instrument relating thereto; 
 (ii) any change in the time, manner or place of payment of, or in any other term of, all or any of the
Guaranteed Obligations, or any other amendment or waiver of or any consent to departure from any Loan Document, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to any Loan
Party or otherwise; 
 (iii) any taking, exchange, release or non-perfection of any Collateral, or any taking, release or amendment or
waiver of or consent to departure from any other guaranty, for all or any of the Guaranteed Obligations; 
  

 - 2 - 

 (iv) the existence of any claim, set-off, defense or other right that such Guarantor may have at any
time against any Person, including, without limitation, any Secured Party; 
 (v) any change, restructuring or termination of the corporate,
limited liability company or partnership structure or existence of any Loan Party; or 
 (vi) any other circumstance (including, without
limitation, any statute of limitations) or any existence of or reliance on any representation by any Secured Party that might otherwise constitute a defense available to, or a discharge of, any Loan Party or any other guarantor or surety (other than
payment in full of the Guaranteed Obligations). 
 This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any
payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by the Secured Parties or any other Person, all as though such payment had not been made. 
 (b) This Guaranty is a continuing guaranty and shall (i) remain in full force and effect until the date on which (A) all of the Guaranteed
Obligations and all other amounts payable under this Guaranty shall have been paid in full in cash, (B) any further commitments to extend credit under the Loan Documents shall have been terminated, (C) the Letters of Credit and Bank
Product Obligations shall have been collateralized in accordance with the terms of the Credit Agreement and (D) the Credit Agreement and the other Loan Documents shall have been terminated in accordance with the terms thereof (the
“Guaranty Termination Date”), (ii) be binding upon each Guarantor, its successors and assigns and (iii) inure to the benefit of and be enforceable by the Secured Parties and their successors, pledgees, transferees and
assigns. Without limiting the generality of the foregoing clause (iii), any Lender may pledge, assign or otherwise transfer all or any portion of its rights and obligations under any Loan Document (including, without limitation, all or any portion
of its Commitments and the Loans owing to it) to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Lender herein or otherwise, in each case, as provided in the Credit
Agreement. Each Guarantor agrees that each participant shall be entitled to the benefits of this Section 3 and Section 13 hereof with respect to its participation in any portion of the Loans as if it was a Lender. None of the rights or
obligations of any Guarantor hereunder may be assigned or otherwise transferred without the prior written consent of the Collateral Agent. 
 SECTION 4. Waivers. Each Guarantor hereby waives, to the extent permitted by law, (i) promptness and diligence, (ii) notice of acceptance and any other notice with respect to any of the Guaranteed Obligations (other than
any such notice expressly set forth in any of the Loan Documents) and this Guaranty and any requirement that the Secured Parties exhaust any right or take any action against the Borrower, any other Loan Party or any other Person or any Collateral,
(iii) any right to compel or direct any Secured Party to seek payment or recovery of any amounts owed under this Guaranty from any one particular fund or source or to exhaust any right or take any action against the Borrower, any other Loan
Party or any other Person or any Collateral, (iv) any requirement that any Secured Party protect, secure, perfect or insure any security interest or Lien or any property subject thereto and (v) any other defense available to such Guarantor
other than payment in full in cash of the Guaranteed Obligations. Each Guarantor agrees that the Secured Parties shall have no obligation to marshall any assets in favor 

  

 - 3 - 

 
of such Guarantor or against, or in payment of, any or all of the Obligations. Each Guarantor acknowledges that it will receive direct and indirect benefits
from the financing arrangements contemplated herein and in the Credit Agreement and that the waiver set forth in this Section 4 is knowingly made in contemplation of such benefits. Each Guarantor hereby waives any right to revoke this Guaranty,
and acknowledges that this Guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future. 
 SECTION 5. Interest. Each Guarantor hereby acknowledges that certain of the rates of interest applicable as to the Guaranteed Obligations may be computed on the basis of a year of 360, 365 or 366 days, as the case may be, and paid
for the actual number of days elapsed. For the purposes of the Interest Act (Canada), as the same may be amended, replaced or re-enacted from time to time, whenever any interest is calculated using a rate based on a year of 360, 365 or 366
days, as the case may be, such rate determined pursuant to such calculation, when expressed as an annual rate is equivalent to: 
  

	 	(a)	the applicable rate based on a year of 360, 365 or 366 days, as the case may be, 

  

	 	(b)	multiplied by the actual number of days in a calendar year in which the period for such interest is payable (or compounded), and 

  

	 	(c)	divided by 360, 365, or 366 days, as the case may be. 

 In the event that
it is held by a court of competent jurisdiction that Section 347 of the Criminal Code (Canada) applies to a payment under this Guaranty of “interest” (as defined in that section), then, notwithstanding any provision in this
Guaranty, in no event shall the aggregate of such “interest” exceed the effective annual rate of interest on the “credit advanced” (as defined in that section) under this Guaranty lawfully permitted by that section and, if any
payment, collection or demand pursuant to this Guaranty in respect of that “interest” (as defined in that section) is determined to be contrary to the provisions of that section, the amount of such payment, collection or demand in excess
of that permitted under applicable law shall be deemed to have been made by mutual mistake of the applicable Guarantor and the applicable Secured Party and the amount of such excess payment or collection shall be refunded to that Guarantor. For the
purposes of this Guaranty, the effective annual rate of interest shall be determined in accordance with generally accepted actuarial practices and principles over the relevant term and, in the event of dispute, a certificate of a Fellow of the
Canadian Institute of Actuaries appointed by the Collateral Agent will, absent manifest error, be prima facie evidence of such rate. 
 SECTION 6. Subrogation. No Guarantor will exercise any rights that it may now or hereafter acquire against the Borrower or any other Loan Party that arise from the existence, payment, performance or enforcement of such
Guarantor’s obligations under this Guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of the Secured Parties against
the Borrower, any Loan Party or any other Person or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from the Borrower,
any Loan Party or any other Person, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on account of such claim, remedy or right, unless and until 

  

 - 4 - 

 
the Guaranty Termination Date. If any amount shall be paid to any Guarantor in violation of the immediately preceding sentence at any time prior to the
Guaranty Termination Date, such amount shall be held in trust for the benefit of the Secured Parties and shall forthwith be paid to the Administrative Agent, to be credited and applied to the Guaranteed Obligations and all other amounts payable
under this Guaranty, whether matured or unmatured, in accordance with the terms of this Guaranty and the Credit Agreement, or to be held as Collateral for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter arising. If
any Guarantor shall make payment to the Secured Parties of all or any part of the Guaranteed Obligations and the Guaranty Termination Date shall have occurred, the Secured Parties will, at any Guarantor’s request and expense, execute and
deliver to any Guarantor appropriate documents, without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from the payment by a
Guarantor. 
 SECTION 7. Representations, Warranties and Covenants. Each Guarantor hereby represents and warrants as follows:

 (a) Such Guarantor (i) is a corporation, limited partnership or limited liability company, duly organized, validly existing and in
good standing under the laws of the state, province or other applicable jurisdiction of its organization, (ii) subject to the entry and the term of the Bankruptcy Court Orders, has all requisite power and authority to conduct its business as
now conducted and as presently contemplated and to execute and deliver this Guaranty and each other Loan Document to which such Guarantor is a party, and to consummate the transactions contemplated hereby and thereby and (iii) is duly qualified
to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except, in the case of clause (iii), where the
failure to be so qualified or the failure to be in good standing, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. 
 (b) The execution, delivery and performance by such Guarantor of this Guaranty and each other Loan Document to which such Guarantor is or will be a party (i) have been duly authorized by all necessary corporate,
limited partnership or limited liability company action, as applicable, (ii) do not and will not contravene its charter or by-laws, its limited liability company agreement or operating agreement or its certificate of partnership or partnership
agreement, as applicable, or any applicable law, or any contractual restriction binding on or otherwise affecting such Guarantor or any of its properties (other than (A) where the contravention of such other contractual restrictions,
individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect and (B) conflicts, breaches and defaults the enforcement of which will be stayed by virtue of the filing of the Chapter 11 Cases or the CCAA
Proceedings ), or any order or decree of any court or Governmental Authority (including, without limitation, any order entered in the Chapter 11 Cases or the CCAA Proceedings ), (iii) do not and will not result in or require the creation of any
Lien (other than pursuant to any Loan Document) upon or with respect to any of its properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit,
license, authorization or approval applicable to it or its operations or any of its properties, except in the case of this clause (iv) where such default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal would not
reasonably be expected to have a Material Adverse Effect. 
  

 - 5 - 

 (c) Except for the entry of the Bankruptcy Court Orders, no authorization or approval or other action by,
and no notice to or filing with, any Governmental Authority is required in connection with the due execution, delivery and performance by such Guarantor of this Guaranty or any Loan Document to which such Guarantor is or will be a party, except for
the filings referred to in Section 4.20 of the Credit Agreement and any other filings made in order to perfect the security interests of the Secured Parties. 
 (d) Subject to the entry of and the terms of the Bankruptcy Court Orders, each of this Guaranty and the other Loan Documents to which such Guarantor is or will be a party, when delivered, will be, a legal, valid and
binding obligation of such Guarantor, enforceable against such Guarantor in accordance with its terms, except as enforceability may be limited by (i) general equitable principles (whether considered in a proceeding in equity or at law); and
(ii) requirements of reasonableness, good faith and fair dealing. 
 (e) [Intentionally Omitted]. 
 (f) Such Guarantor (i) has read and understands the terms and conditions of the Credit Agreement and the other Loan Documents, and (ii) now has
and will continue to have independent means of obtaining information concerning the affairs, financial condition and business of the Borrower and the other Loan Parties, and has no need of, or right to obtain from any Secured Party, any credit or
other information concerning the affairs, financial condition or business of the Borrower or the other Loan Parties that may come under the control of any Secured Party. 
 (g) Such Guarantor acknowledges and agrees that by its execution and delivery of this Guaranty (i) it shall be bound, as a Guarantor, by all the provisions of the Credit Agreement and the other Loan Documents and
shall comply with and be subject to all of the terms, conditions, covenants, agreements and obligations set forth therein and applicable to the Guarantors (including, without limitation, each of the covenants that are set forth in Section 6,
Section 7 and Section 10.5 of the Credit Agreement) and (ii) from and after the date hereof, each reference to a “Guarantor”, the “Guarantors”, a “Loan Party” or the “Loan Parties” in the Credit
Agreement and each other Loan Document shall include such Guarantor. 
 SECTION 8. Right of Set-off. Upon the occurrence and during
the continuance of any Event of Default, any Secured Party may, and is hereby authorized to, without prior notice to the Guarantors, any such notice being expressly waived by the Guarantors to the extent permitted by applicable law, upon any amount
becoming due and payable by any Guarantor hereunder (whether at the stated maturity, by acceleration or otherwise), and to the fullest extent permitted by law, set-off and apply against such amount any and all deposits (general or special, time or
demand, provisional or final, but excluding designated accounts held in trust for the benefit of a third party or for the payment of withholding taxes, in each case, to the extent such accounts are identified as such to the Agents by any Loan Party)
in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Secured Party or any 

  

 - 6 - 

 
branch or agency thereof to or for the credit or the account of such Guarantor against any and all obligations of such Guarantor now or hereafter existing
under this Guaranty or any other Loan Document. Each Secured Party agrees to notify the applicable Guarantor promptly after any such set-off and application made by such Secured Party, provided that the failure to give such notice shall not
affect the validity of such set-off and application. The rights of the Secured Party under this Section 8 are in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Secured Party may have
under this Guaranty or any other Loan Document, in law or otherwise. 
 SECTION 9. Notices, Etc. 
 (a) All notices and other communications provided for hereunder shall be in writing and shall be mailed (by certified mail, postage prepaid and return
receipt requested), telecopied or delivered, if to a Guarantor, to it at its address set forth on the signature page hereto, or if to a Secured Party, to it at its address set forth in Section 10.2 of the Credit Agreement; or as to such Person
at such other address as shall be designated by such Person in a written notice to such other Persons complying as to delivery with the terms of this Section 9. All such notices and other communications shall become effective in the manner set
forth in Section 10.2 of the Credit Agreement. 
 (b) Nothing in this Guaranty or in any other Loan Document shall be construed to limit
or affect the obligation of any Guarantor or any other Person to serve upon the Agents and the Lenders in the manner prescribed by the US Bankruptcy Code or the Canadian Bankruptcy Statutes any pleading or notice required to be given to the Agents
and the Lenders pursuant to the US Bankruptcy Code or the Canadian Bankruptcy Statutes. 
 SECTION 10. CONSENT TO JURISDICTION; SERVICE OF
PROCESS AND VENUE. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN ANY BANKRUPTCY COURT OR IN THE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH GUARANTOR HEREBY IRREVOCABLY ACCEPTS IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS.
EACH GUARANTOR HEREBY IRREVOCABLY APPOINTS THE SECRETARY OF STATE OF THE STATE OF NEW YORK AS ITS AGENT FOR SERVICE OF PROCESS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING AND FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE
AFOREMENTIONED COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, CARE OF THE BORROWER AT ITS ADDRESS FOR NOTICES AS SET FORTH IN THE CREDIT AGREEMENT AND TO THE SECRETARY
OF STATE OF THE STATE OF NEW YORK, SUCH SERVICE TO BECOME EFFECTIVE TEN (10) DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE SECURED PARTIES TO SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY GUARANTOR IN ANY 

  

 - 7 - 

 
OTHER JURISDICTION. EACH GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT ANY GUARANTOR HAS OR
HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, SUCH
GUARANTOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS GUARANTY AND THE OTHER LOAN DOCUMENTS. 
 SECTION
11. WAIVER OF JURY TRIAL, ETC. EACH GUARANTOR HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS GUARANTY OR THE OTHER LOAN DOCUMENTS, OR UNDER ANY AMENDMENT, WAIVER, CONSENT,
INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH, OR ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH THIS GUARANTY OR THE OTHER LOAN DOCUMENTS, AND
AGREES THAT ANY SUCH ACTION, PROCEEDING OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. EACH GUARANTOR CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT OR ATTORNEY OF ANY SECURED PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT ANY SECURED PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS. EACH GUARANTOR HEREBY ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE SECURED PARTIES ENTERING INTO
THIS AGREEMENT. 
 SECTION 12. Taxes and Judgment Currency. The provisions of Sections 2.22 and 10.18 of the Credit Agreement
(including the defined terms used therein) are hereby incorporated by reference as if fully set forth herein, including, without limitation, with respect to all payments made by any Guarantor or any judgment in respect hereof. 
 SECTION 13. Miscellaneous. 
 (a) Each
Guarantor will make each payment hereunder in lawful money of the United States of America and in immediately available funds to the Administrative Agent, for the benefit of the Secured Parties, at such address specified by the Administrative Agent
from time to time by notice to each Guarantor. 
 (b) No amendment of any provision of this Guaranty shall be effective unless it is in
writing and signed by each Guarantor and the Collateral Agent, and no waiver of any provision of this Guaranty, and no consent to any departure by any Guarantor therefrom, shall be effective unless it is in writing and signed by the Collateral Agent
(with the consent of the 

  

 - 8 - 

 
Required Lenders, or if required by the Credit Agreement, all the Lenders), and then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given. 
 (c) No failure on the part of any Secured Party to exercise, and no delay in exercising, any
right hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder or under any other Loan Document preclude any other or further exercise thereof or the exercise of
any other right. The rights and remedies of the Secured Parties provided herein and in the other Loan Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law. The rights of the Secured Parties
under any Loan Document against any party thereto are not conditional or contingent on any attempt by the Secured Parties to exercise any of their rights under any other Loan Document against such party or against any other Person. 
 (d) Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining portions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction. 
 (e) This Guaranty and the other Loan Documents reflect the entire understanding of the transactions contemplated hereby and thereby and shall not be
contradicted or qualified by any other agreement, oral or written, before the date hereof. 
 (f) Section headings herein are included for
convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
 (g) THIS GUARANTY AND THE OTHER
LOAN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK, EXCEPT AS GOVERNED BY THE US BANKRUPTCY CODE OR AS OTHERWISE PROVIDED
BY THE CCAA AND EXCEPT AS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT. 
 [REMAINDER OF
THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 - 9 - 

 IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed by an officer thereunto duly
authorized, as of the date first above written. 
  

			
	GUARANTORS:
	
	POPE & TALBOT, INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

	
	POPE & TALBOT SPEARFISH LIMITED PARTNERSHIP, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code
		
	By:	 	POPE & TALBOT LTD.,
		 	as General Partner and as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

  

 Signature page to Guaranty 

			
	PENN TIMBER, INC., as a Debtor and Debtor-in- Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

	
	POPE & TALBOT RELOCATION SERVICES, INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

	
	P&T POWER COMPANY, as a Debtor and Debtor-in- Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

  

 Signature page to Guaranty 

			
	POPE & TALBOT PULP SALES U.S., INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

	
	POPE & TALBOT LUMBER SALES, INC., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200
 Portland, Oregon 97201

	
	MACKENZIE PULP LAND LTD., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a Debtor Company under the CCAA
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

  

 Signature page to Guaranty 

			
	P&T LFP INVESTMENT LIMITED PARTNERSHIP, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code
		
	By:	 	 P&T FUNDING LTD.,
 as General Partner and as a Debtor
and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA

		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200
 Portland, Oregon 97201

  

 Signature page to Guaranty 

			
	P&T FUNDING LTD., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a Debtor Company under the CCAA
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

	
	P&T FINANCE ONE LIMITED PARTNERSHIP, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code
		
	By:	 	 PENN TIMBER, INC.,
 as General Partner and as a Debtor
and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA

		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

  

 Signature page to Guaranty 

			
	 P&T FINANCE TWO LIMITED PARTNERSHIP, as a
 Debtor and Debtor-in-Possession under the US Bankruptcy Code

		
	By:	 	 PENN TIMBER, INC.,
 as General Partner and as a Debtor
and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA

		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

	
	 P&T FACTORING LIMITED PARTNERSHIP, as a
 Debtor and Debtor-in-Possession under the US Bankruptcy Code

		
	By:	 	 POPE & TALBOT PULP SALES U.S., INC., as
 Managing
General Partner and as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA

		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200
 Portland, Oregon 97201

  

 Signature page to Guaranty 

			
	P&T FINANCE THREE LLC, as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA
		
	By:	 	 POPE & TALBOT LTD.,
 as Manager and as a Debtor and
Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA

		
	By:	 	  

	Name:	 	
	Title:	 	
		
	Address:	 	 1500 S.W. First Avenue, Suite 200

		 	 Portland, Oregon 97201

  

 Signature page to Guaranty 

 EXHIBIT G 
 FORM OF BORROWING NOTICE 
 POPE & TALBOT LTD. 
                  , 200    

 Wells Fargo Financial Corporation Canada, 
 as Administrative
Agent under the below referenced Credit Agreement 
 55 Standish Court, Suite 400 
 Mississauga, Ontario L5R 4J4 
 Attention: Nick Scarfo 
 Ladies and Gentlemen: 
 The undersigned, Pope & Talbot Ltd., a Canadian corporation, as a debtor and
debtor-in-possession under the US Bankruptcy Code and as a debtor company under the CCAA (the “Borrower”), refers to the Debtor-in-Possession Credit and Security Agreement, dated as of November     , 2007
(such agreement, as amended, restated, supplemented or otherwise modified from time to time, including any replacement agreement therefor, being hereinafter referred to as the “Credit Agreement”), among Pope & Talbot, Inc.,
a Delaware corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code and as a debtor company under the CCAA (the “Parent”), the Borrower, the Guarantors set forth on the signature pages thereto, the several
lenders from time to time party thereto (the “Lenders”), Wells Fargo Financial Corporation Canada, a Nova Scotia unlimited liability company, as administrative agent (in such capacity, together with its permitted successors and
assigns, the “Administrative Agent”), Ableco Finance LLC, as Collateral Agent (in such capacity, together with its permitted successors and assigns, the “Collateral Agent”) and Ableco Finance LLC, as Term Loan B
Agent (in such capacity, together with its permitted successors and assigns, the “Term Loan B Agent”), and hereby gives you notice pursuant to Section 2 of the Credit Agreement that the Borrower hereby requests a Loan (the
“Proposed Loan”) under the Credit Agreement and, in connection with this request, sets forth below the following information as required by Section [2.3] [2.6] [2.8] of the Credit Agreement. All capitalized terms used but not
defined herein have the same meanings herein as set forth in the Credit Agreement. 
 (i) The aggregate principal amount of the Proposed Loan is $            .[1]

 (ii) The Proposed Loan is [a Revolving Credit Loan] [Term Loan B] [Swing Line Loan]. 

	 1
	 Each Revolving Credit Loan shall be in a minimum amount equal to (x) in the
case of Base Rate Loans, $100,000 or a whole multiple of $50,000 in excess thereof (or, if the then aggregate Available Revolving Credit Commitments are less than $100,000, such lesser amount) and (y) in the case of Eurodollar Loans, $100,000
or a whole multiple of $50,000 in excess thereof. 

 (iii) The Proposed Loan is [a Base Rate Loan] [a Eurodollar Loan.] 
 (iv) The proceeds of the Proposed Loan will be used for the following purposes:
                                        
                    . 
 (v) The borrowing date of the Proposed Loan is
                    .2 
 (vi) The proceeds of the Proposed Loan should be made available to Borrower by wire transferring such proceeds in accordance with the payment
instructions attached hereto as Exhibit A. 
 [Remainder of this page intentionally left blank] 

	 2
	 This date must be a Business Day. 

  

 -2- 

 The undersigned certifies on behalf of the Borrower that (i) the representations and warranties
contained in Section 4 of the Credit Agreement and in each other Loan Document and certificate or other writing delivered to any Secured Party pursuant thereto on or prior to the date hereof are true and correct on and as of the date hereof as
though made on and as of the date hereof, (ii) no Default or Event of Default has occurred and is continuing or will result from the making of the Proposed Loan nor, to the Borrower’s knowledge, will occur or will be continuing on the date
of the Proposed Loan and (iii) all applicable conditions set forth in Section 5 of the Credit Agreement have been satisfied or waived as of the date hereof. 
  

			
	Very truly yours,
	
	 POPE & TALBOT LTD., as a Debtor and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the
CCAA,
 as Borrower

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Signature Page to Borrowing Notice 

 EXHIBIT A 
 Payment Instructions 

 EXHIBIT H-1 
 FORM OF INTERM US BANKRUPTCY COURT ORDER 
 IN THE UNITED STATES BANKRUPTCY COURT 
 FOR THE DISTRICT OF DELAWARE 
  

					
	 	  	x	  	 
		  	:	  	
	In re	  	:	  	Chapter 11
		  	:	  	
	 POPE & TALBOT, INC., et al.,
	  	:	  	Case No. 07-            (    )
		  	:	  	
	 Debtors.
	  	:	  	Jointly Administered
		  	:	  	
		  	x	  	

 INTERIM ORDER UNDER 11 U.S.C. §§ 105(a), 361, 363, 364(c), 364(d) AND 364(e) AND

 FED. R. BANKR. P. 2002, 4001 AND 9014 (I) APPROVING USE OF CASH COLLATERAL, 
 (II) AUTHORIZING DEBTORS TO INCUR POST-PETITION SECURED INDEBTEDNESS, 
 (III) GRANTING
SECURITY INTERESTS AND SUPERPRIORITY CLAIMS, AND (IV)  
 SCHEDULING FINAL HEARING 
 Pope & Talbot, Inc. (“P&T”), Pope & Talbot Ltd.
(“Limited”), Penn Timber, Inc. (“Timber”), Pope & Talbot Lumber Sales, Inc. (“Lumber”), Pope & Talbot Pulp Sales U.S., Inc. (“Pulp”), Pope & Talbot Relocation
Services, Inc. (“Relocation”), Pope & Talbot Spearfish Ltd. Partnership (“Spearfish”), P&T Finance Three LLC (“Finance Three”), P&T Power Company (“Power”),
Mackenzie Pulp Land Ltd. (“Mackenzie”), P&T Factoring Limited Partnership (“Factoring”), P&T Finance One Limited Partnership (“Finance One”), P&T Finance Two Limited Partnership
(“Finance Two”), P&T Funding Ltd. (“Funding”), and P&T LFP Investment Limited Partnership (“LFP,” and collectively with P&T, Limited, Timber, Lumber, Pulp, Relocation, Spearfish, Finance
Three, Power, Mackenzie, Factoring, Finance One, Finance Two, and Funding, the “Debtors” or the “Loan Parties”), as debtors and debtors-in-possession in the above-captioned chapter 11 cases (the “Chapter 11
Cases”),1 having moved on November     , 

	1	P&T, Limited, Mackenzie, Timber, Lumber, Pulp, Relocation, Power, Finance Three, and Funding are also currently are debtor companies with cases pending under the Companies'
Creditors Arrangement Act (Canada), as amended. 

 
2007 (the “Motion”) 2
for an order authorizing them to use certain Collateral (as defined in the Pre-Petition Credit Agreement, “Pre-Petition Collateral”), including cash collateral (the “Cash Collateral”), in which certain pre-petition
secured parties may have an interest, to incur post-petition secured indebtedness, to grant security interests and superpriority claims pursuant to sections 105(a) and 364(c) and (d) of the United States Bankruptcy Code, 11 U.S.C. §§
101-1532, as amended (the “Bankruptcy Code”) and Rules 2002, 4001 and 9014 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), and having requested, among other things, that: 
 (a) the Court authorize the Debtors to use the Cash Collateral on the terms set forth herein; 
 (b) the Court authorize the Debtors, pursuant to sections 105(a) and 364(c) and (d) of the Bankruptcy Code and Bankruptcy Rules 2002, 4001, and
9014, to obtain from Wells Fargo Financial Corporation Canada (“Wells Fargo” or the “Administrative Agent”), as administrative agent, and Ableco Finance LLC, as collateral agent (“Ableco” or the
“Collateral Agent,” and together with the Administrative Agent, the “Agents”), each acting for itself, as lender, and as agent for other lenders that may from time to time become lenders (Wells Fargo and Ableco in
their capacities as lenders, together with such other lenders, collectively, the “Lenders”), cash advances and other extensions of credit in an aggregate principal amount of up 

	2	Unless otherwise defined, capitalized terms used herein shall have the meanings ascribed to them in the Motion or that certain Credit Agreement by and among P&T as parent
(“Parent”), Limited, as borrower (the “Borrower”), Timber, Lumber, Pulp, Relocation, Spearfish, Finance Three, Power, Mackenzie Pulp Land Ltd., P&T Factoring Limited Partnership, P&T Finance One Limited Partnership,
P&T Finance Two Limited Partnership, P&T Funding Ltd., P&T LFP Investment Limited Partnership (collectively, together with the “Parent, the “Guarantors””), as guarantors, on the one hand, and the Lenders, on the other
hand, dated as of November     , 2007 (the “DIP Loan Agreement,” and collectively with other agreements, instruments and documents executed in connection therewith, the “DIP Loan Documents”), as the
case may be. 

  

 2 

 
to $89,062,301.57 (the “Maximum Final Borrowing”) consisting of (i) a multi-draw term loan facility in the aggregate principal amount
of $18,000,000 (the “DIP Term Loan Facility”) and (ii) a revolving credit facility with a commitment amount equal to $71,062,301.57 (as defined in the DIP Loan Agreement) (the “DIP Revolving Credit Facility”
and together with the DIP Term Loan Facility, the “DIP Loans”), including a subfacility for the issuance of letters of credit (the “Letters of Credit”).3 Pursuant to the DIP Loan Agreement, proceeds of the DIP Loan Agreement, (i) in the case of the DIP Revolving Credit Facility, subject to the Borrowing Base
and the Budget (as defined below) (after giving effect to any Budget Carryover Amount (and as calculated and applied as set forth in the definition of such term in the DIP Loan Agreement)), shall be used in accordance with the expenditure line items
in the Budget (x) on or before the Final Facility Effective Date, to repay all Pre-Petition Revolving Loan Obligations in full; (y) to pay all accrued and unpaid interest and letter of credit fees in respect of the Revolving Credit
Facility; and (z) to fund working capital needs and general corporate purposes of the Borrower and the Guarantors (and such other purposes as are consistent with the Budget) (including, without limitation, payments with respect to Carve-Out (as
defined in the DIP Loan Agreement) incurred in the ordinary course of business of the Loan Parties to the extent consistent with the Budget or as otherwise approved by this Court or the Canadian Bankruptcy Court, as applicable (and not otherwise
prohibited under the DIP Loan Agreement or under this Interim Order and the Canadian DIP Order), in each case, subject to the priorities set forth in the definition of “Agreed Administrative Expense Priorities” in the DIP Loan Agreement),
(ii) in the case of the Letters of 

	3	All Letters of Credit outstanding on the Chapter 11 Filing Date shall be deemed to be reissued under the DIP Revolving Credit Facility upon the refinancing of the Pre-Petition
Revolving Credit Facility and each such Letter of Credit shall constitute a “Letter of Credit” for all purposes under the DIP Loan Agreement. 

  

 3 

 
Credit, shall be used for general corporate and working capital purposes, and (iii) in the case of the DIP Term Loan Facility, shall be used (a) in
accordance with the expenditure line items in the Budget (after giving effect to any Budget Carryover Amount (and as calculated and applied as set forth in the definition of such term in the DIP Loan Agreement)), to fund working capital needs and
general corporate purposes of the Debtors (and such other purposes as are consistent with the Budget) (including, without limitation, payments with respect to the Carve-Out to the extent consistent with the Budget (and not otherwise prohibited under
the DIP Loan Agreement, the Canadian Initial Order, the Canadian DIP Order or this Interim Order), in each case, subject to the priorities set forth in the definition of “Agreed Administrative Expense Priorities” in the DIP Loan Agreement)
in an aggregate principal amount not to exceed $13,000,000, and (b) pay fees and expenses of the Collateral Agent and the Term Loan Lenders in respect of the DIP Loan Agreement and the Pre-Petition Term Loan Facilities; 
 (c) the Court order, first at an interim and then at a final hearing, as set forth in the Motion, pursuant to sections 364(c)(1), (2), (3) and
364(d) of the Bankruptcy Code, that the Obligations of the Debtors under the DIP Loan Agreement and the other DIP Loan Documents (collectively, the “DIP Obligations”) (i) be granted superpriority administrative expense status,
having priority over any and all administrative expenses of the kinds specified in, or arising or ordered under sections 105(a), 326, 328, 330, 331, 503(b), 506(c), 507, 546(c), 726, 1113 and 1114 of the Bankruptcy Code, subject only to the
Carve-Out and the Permitted Priority Liens, (ii) subject to the Carve-Out and the Permitted Priority Liens, be secured (a) under section 364(d) of the Bankruptcy Code, by first priority, perfected security interests and liens in and on all
of the property, assets, or interests in property or assets of each Debtor, of any kind or nature whatsoever, real or personal, now existing or hereafter acquired or created, including, without 

  

 4 

 
limitation, all property of such Debtors’ “estates” (within the meaning of the Bankruptcy Code), inventory, accounts receivable, other rights
to payment whether arising before or after the Filing Date, contracts, properties, plants, equipment, general intangibles, documents, instruments, interests in leaseholds, real properties, patents, copyrights, trademarks, trade names, other
Intellectual Property, Capital Stock of Subsidiaries, trademarks, trade names, all deposit accounts, all cash maintained in deposit and other accounts, all commercial tort claims and causes of action (including claims and causes of action under
sections 544, 545, 547, 548, 549, 550, 552(b) and 553 of the Bankruptcy Code and proceeds thereof (the “Avoidance Actions”)), all cash and non-cash proceeds, rents, products and profits of any of the foregoing and all Pre-Petition
Collateral, including the Collateral secured under the Pre-Petition Canadian Security Documents and any other Security Documents (as defined under the Pre-Petition Credit Agreement) entered into in connection with the Pre-Petition Credit Agreement
(all of the foregoing, collectively, the “Post-Petition Collateral”); provided, that the Obligations (x) under the DIP Term Loan Facility shall be secured by (1) first priority, perfected security interests and
liens in and on all of the Term Priority Collateral, subject and subordinate only to the Liens securing the Pre-Prepetition Term Loan Obligations and (2) junior priority, perfected security interests and liens in and on all of the Revolving
Priority Collateral, subject and subordinate to the Liens of Pre-Petition Term Loan Lenders in the Revolving Priority Collateral, which Liens shall be subject and subordinate only to the Liens of the Revolving Credit Lenders in and on all of the
Revolving Priority Collateral, and (y) under the DIP Revolving Credit Facility shall be secured by (1) first priority, perfected security interests and liens in and on all of the Revolving Priority Collateral and (2) junior priority,
perfected security interests and liens in and on all of the Term Priority Collateral, subject and subordinate only to the Liens of the DIP Term Loan 

  

 5 

 
Lenders and the Pre-Petition Term Loan Lenders in and on all of the Term Priority Collateral; (b) under section 364(c)(2) of the Bankruptcy Code, by
first priority, perfected security interests in and liens on all of the Debtors’ currently owned and after acquired unencumbered property; and (c) under section 364(c)(3) of the Bankruptcy Code, by junior priority, perfected security
interests in and liens on all of the Debtors’ currently owned and after acquired encumbered property, including, but not limited to, the Pre-Petition Collateral; 
 (d) the Court grant to the Pre-Petition Lenders and Pre-Petition Agents, as adequate protection for the granting of such senior security interests and the use of such Cash Collateral, superpriority administrative
expense claims and replacement liens in the Post-Petition Collateral (including the Cash Collateral), as adequate protection against the diminution of the value or amount of the Pre-Petition Collateral; 
 (e) the Court conduct a hearing (the “Interim Hearing”) to consider approval, on an interim basis, of the use of Cash Collateral and
post-petition financing pursuant to the DIP Loan Documents and authorizing the Debtors to obtain, on an interim basis, DIP Loans thereunder in an amount of up to $68,000,000 minus any Cash Collateral used by the Debtors pursuant to paragraph 6 of
this Interim Order (the “Maximum Interim Borrowing”); 
 (f) the Court find, pursuant to Bankruptcy Rule 4001(c)(1), that
notice of the Interim Hearing given to the following parties or, in lieu thereof, to their counsel, if known: (i) the Office of the United States Trustee for the District of Delaware (the “U.S. Trustee”), (ii) the Canadian
Monitor; (iii) the Agents; (iv) the Pre-Petition Agents; (v) the indenture trustees for the Notes; (vi) the Purported Ad Hoc Bondholders Committee; (vii) the 30 largest unsecured creditors in the Chapter 11 Cases on a
consolidated basis; (viii) all financial institutions at which the Debtors maintain deposit accounts; (ix) all known holders of Liens against any of the 

  

 6 

 
Debtors’ assets; and (x) all landlords of the Debtors (collectively, the “Notice Parties”) was good and sufficient under the particular
circumstances and no other or further notice is or shall be required; and 
 (g) the Court schedule, pursuant to Bankruptcy Rule 4001, a
hearing (the “Final Hearing”) to consider entry of a final order (the “Final Order”) authorizing the Debtors to use Cash Collateral and obtain, on a final basis, DIP Loans under the DIP Loan Documents in an amount
of up to the Maximum Final Borrowing; 
 And the Interim Hearing having been held on November     , 2007; and
based upon all of the pleadings filed with the Court, the evidence presented and the arguments of counsel made at the Interim Hearing; and the Court having noted the appearances of all parties-in-interest; and all objections, if any, to the interim
relief requested in the Motion having been withdrawn, resolved, or overruled by the Court, and it appearing that the relief requested in the Motion is in the best interests of the Debtors, their estates and creditors, and such relief is essential
for the continued operations of the Debtors’ businesses; and it further appearing that the Debtors have been unable to obtain unsecured credit for money borrowed allowable as an administrative expense under section 503(b)(1) of the Bankruptcy
Code or other secured financing on equal or more favorable terms than those set forth in the DIP Loan Documents; and upon the record herein; and after due deliberation thereon; and sufficient cause appearing therefor; 
 IT IS HEREBY FOUND, DETERMINED, ORDERED, ADJUDGED, AND DECREED THAT:4 

	4	Findings of fact shall be construed as conclusions of law, and conclusions of law shall be construed as findings of fact, pursuant to Bankruptcy Rule 7052. 

 

 7 

 1. Disposition. The Motion is granted on an interim basis on the terms set forth in this Interim
Order. Any objections to the interim relief sought in the Motion that have not previously been resolved or withdrawn are hereby overruled on their merits. This Interim Order shall be valid, binding on all parties-in-interest and fully effective
immediately upon entry. The term of this Interim Order and the DIP Loan Documents and use of the Cash Collateral authorized hereunder shall expire, and the DIP Loans made pursuant to this Interim Order, the DIP Loan Agreement, and the DIP Loan
Documents will mature and, together with all interest thereon and any other DIP Obligations accruing under the DIP Loan Agreement, will become due and payable (unless such DIP Loans and other DIP Obligations become due and payable earlier pursuant
to the terms of the DIP Loan Documents and this Interim Order by way of acceleration or otherwise) thirty (30) days from the date of entry of this Interim Order if the Final Order has not been entered by the Court on or prior to such date.

 2. Jurisdiction; Venue. The Court has jurisdiction over the Chapter 11 Cases, the parties, and the Debtors’ property pursuant
to 28 U.S.C. §§ 157 and 1334. This is a core proceeding pursuant to 28 U.S.C. §157(b)(2)(D). Venue of the Chapter 11 Cases and the Motion is proper under 28 U.S.C. §§ 1408 and 1409. 
 3. Purpose and Necessity of Financing. The Debtors require the interim financing described in the Motion to fund, among other things, the
Debtors’ cash requirements for working capital needs for the 30-day period commencing on the date hereof. The Debtors are unable to obtain adequate unsecured credit allowable under section 503 of the Bankruptcy Code as an administrative expense
or other financing under section 364(c) or section 364(d) of the Bankruptcy Code on equal or more favorable terms than those set forth in the DIP Loan Agreement and the other DIP Loan Documents within the time frame required by their needs to

  

 8 

 
avoid immediate and irreparable harm. A loan facility in the amount and in the manner provided by the DIP Loan Agreement and the other DIP Loan Documents is
not available to the Debtors, generally, without granting to the Lenders, pursuant to sections 364(c)(1), (2), (3) and 364(d) of the Bankruptcy Code, the following: (a) superpriority administrative expense claims with respect to all DIP
Loans and other DIP Obligations having priority over any and all administrative expenses of the kinds specified in, or arising or ordered under, sections 105(a), 326, 328, 330, 331, 503(b), 506(c), 507, 546(c), 552(b), 726, 1113 and 1114 of the
Bankruptcy Code, whether or not such expenses or claims may become secured by a judgment lien or other non-consensual lien, levy or attachment (except as otherwise expressly provided for herein with respect to the Carve-Out); and (b) as
security for all DIP Obligations, pursuant to sections 364(c)(2) and (3) and 364(d) of the Bankruptcy Code, (x) first priority, perfected security interests and liens in the Post-Petition Collateral, subject and subordinate only to the
Carve-Out and the Permitted Priority Liens, (y) first priority, perfected security interests in and liens on all of the Debtors’ currently owned and after acquired unencumbered property, subject and subordinate only to the Carve-Out and
the Permitted Priority Liens, and (z) junior priority, perfected security interests in and liens on all of the Debtors’ currently owned and after acquired encumbered property, including, but not limited to, the Pre-Petition Collateral.
After considering all alternatives, the Debtors have concluded in the exercise of their prudent business judgment that the loan facility provided under the DIP Loan Documents represents the best working capital financing available to them.

 4. Good Cause. The Debtors’ ability to obtain sufficient working capital and liquidity under the DIP Loan Documents is vital
to the Debtors’ estates and their creditors. The Debtors’ estates will be immediately and irreparably harmed if this Interim Order is not entered. Good cause thus has been shown for the interim relief sought in the Motion. 
  

 9 

 5. Good Faith. The terms of the DIP Loan Documents, including the interest rates and fees
applicable thereto and intangible factors, are at least as or more favorable to the Debtors as those available from alternative sources. Based upon the record before the Court, the DIP Loan Documents have been negotiated in good faith and at
arm’s-length between the Debtors and the Lenders. Any DIP Loans and other financial accommodations made to the Debtors by the Lenders pursuant to this Interim Order and the DIP Loan Agreement or other DIP Loan Documents shall be deemed to have
been extended by the Lenders in good faith, as that term is used in section 364(e) of the Bankruptcy Code, and the Lenders shall be entitled to all protections afforded thereby. The terms of the loan facility provided under the DIP Loan Documents
are fair and reasonable, reflect the Debtors’ exercise of prudent business judgment consistent with their fiduciary duties, and are supported by reasonably equivalent value and fair consideration. 
 6. Authorization to Use Cash Collateral. During the term of this Interim Order and subject to the terms hereof, the Debtors are authorized to use
the proceeds of the DIP Loans and Cash Collateral in which any party, including the Lenders, may have an interest, in accordance with the Budget (after giving effect to any Budget Carryover Amount) and pursuant to the terms of the DIP Loan Agreement
and this Interim Order; provided that, prior to November 26, 2007, and so long as no event of default has occurred and is continuing under the DIP Loan Agreement at any time after the Interim Facility Effective Date, the Debtors are
authorized to use any Cash Collateral in their existing operating accounts in an amount not to exceed $14,800,000 in accordance with the Budget (after giving effect to any Budget Carryover 

  

 10 

 
Amount). To the extent that any such party (other than the Pre-Petition Lenders) does not consent to the use of any item of the Post-Petition
Collateral, the interests of such party are hereby deemed adequately protected. 
 7. Interim Borrowing. The Debtors, (i) upon
filing with the Court of one or more motions seeking approval of the procedures for sale of all or substantially all of the Debtors’ assets, (ii) upon entry of the Canadian DIP Order by the Canadian Bankruptcy Court, and (iii) subject
to the satisfaction of the other conditions to borrowing under the DIP Loan Documents, are immediately authorized to obtain interim DIP Loans pursuant to the terms of the DIP Loan Documents and this Interim Order in the principal amount of up to the
Maximum Interim Borrowing. Available financing and advances under the DIP Loan Agreement will be made, subject to the Budget (after giving effect to any Budget Carryover Amount), to fund the Debtors’ working capital and general corporate needs,
including professional fees as and when approved by the Bankruptcy Court, and other amounts required or allowed to be paid in accordance with the budget annexed hereto as Exhibit A (as superseded and replaced by the Debtors in accordance with the
DIP Loan Agreement, the “Budget”), the terms, conditions, and limitations set forth in this Interim Order, and the DIP Loan Documents, including any and all costs of obtaining the interim DIP Loans. It shall be an Event of Default
under the DIP Loan Documents if, during the term of this Interim Order, the Debtors fail to provide the Lenders, within three Business days after the end of the prior week, with a reconciliation, in form and substance acceptable to the Agents, of
the actual cash collections and disbursements of the Loan Parties for such week to the budgeted line item amounts set forth in the Budget, together with a written explanation of any material variances. Neither the Agents nor the Lenders shall have
any obligation with respect to the proceeds of the DIP Loans, the Post-Petition Collateral, or the use 

  

 11 

 
of Cash Collateral, nor shall any of them be obligated to ensure or monitor the Debtors’ compliance with any such covenants, formulae, Budget or other
terms and conditions or, except to the extent provided under Section 2.13(j) of the DIP Loan Agreement, be obligated to pay (directly or indirectly from the Post-Petition Collateral) any expenses incurred or authorized to be incurred pursuant
to the DIP Loan Documents. The Agents’ and Lenders’ consent to any Budget shall not be construed as a commitment to continue to provide the DIP Loans or permit the use of Cash Collateral after the occurrence of an Event of Default (as
defined in the DIP Loan Documents) or beyond the Final Maturity Date, regardless of whether the aggregate funds described in the Budget have been expended. For purposes of this Interim Order, however, the Debtors shall not be deemed to be in default
for any negative deviation (downward, in the case of collections, and upward, in the case of disbursements) from the Budget provided such deviation, after giving effect to any Budget Carryover Amount (as defined in the DIP Loan Agreement), is not
more than (i) 15% in the case of any single line item set forth in the Budget for the applicable period or (ii) 10% in the aggregate with respect to all items set forth in the Budget for the applicable period, calculated (A) for the
period from the Filing Date to and including December 3, 2007, on a bi-weekly basis and (B) for the period from December 3, 2007 to and including the Final Maturity Date, on a weekly basis; provided, that, in the case of clause
(i) and (ii) above, no amounts shall be included in the calculation of the deviation for (x) any portion of the Budget Carryover Amount that constitutes a disbursement or payment during such period, and (y) disbursements that
constitute the professional fees of the Lenders; provided, further, that (A) in the case of disbursements, the deviation in disbursements from the Budget for any weekly period shall be calculated as a percentage of, and by
reference to, the disbursements set forth in the Budget for such period, without giving effect to any Budget Carryover Amount permitted to be 

  

 12 

 
used for such period and (B) in the case of collections, the Budget Carryover Amount shall be added to the actual collections in any given period to
determine whether there has been a Material Adverse Deviation in collections for such period. For the avoidance of doubt, the first proviso and the second proviso of the foregoing shall be read together. 
 8. Superpriority Claim and Lien Priority. 
 (a) The Lenders are hereby granted, and all of the DIP Obligations shall and hereby do constitute, an allowed superpriority administrative expense claim against each Debtor (the “Superpriority Claim”) pursuant to section
364(c)(1) of the Bankruptcy Code, having priority over any and all administrative expense claims of any kind asserted against the Debtors, including, but not limited to, the kinds specified in or arising or ordered under sections 105(a), 326, 328,
330, 331, 503(b), 506(c), 507, 546(c), 552(b), 726, 1113 and 1114 of the Bankruptcy Code, whether or not such expenses or claims may become secured by a judgment lien or other non-consensual lien, levy or attachment, subject and subordinate in
priority of payment only to the Carve-Out. 
 (b) As security for the DIP Obligations, in accordance with the terms of the DIP Loan Documents
and this Interim Order, effective upon the date of this Interim Order, the Lenders are hereby granted, pursuant to sections 364(c)(2) and (3) and 364(d) of the Bankruptcy Code, subject and subordinate in priority of payment only to the
Carve-Out and the Permitted Priority Liens (i) first priority, perfected security interests and liens, in and on all Post-Petition Collateral, (ii) first priority, perfected security interests in and liens on all of the Debtors’
currently owned and after acquired unencumbered property, and (iii) solely with respect to the Term Loan Priority Collateral, junior priority, perfected security interests in and liens on all of the Debtors’ currently owned and after
acquired encumbered property, including, but not limited to, the Pre-Petition Collateral (collectively, the “Post-Petition Liens”). 
  

 13 

 (c) No lien or security interest granted to the Lenders under this Interim Order or the DIP Loan
Documents, as approved by this Interim Order, shall (i) be subject to any lien or security interest that is avoided and preserved for the benefit of the Debtors’ estates under section 551 of the Bankruptcy Code or (ii) hereafter be
subordinated to or made pari passu with any other lien or security interest created pursuant to sections 364(c) or (d) of the Bankruptcy Code or otherwise. The Post-Petition Liens arising hereunder shall be and hereby are fully perfected
security interests, such that no additional steps need be taken by the Agents or the Lenders to perfect such interests. Any provision of any lease or other license, contract or other agreement that requires (i) the consent or approval of one or
more landlords or other parties or (ii) the payment of any fees or obligations to any governmental entity, in order for any Debtor to pledge, grant, sell, assign, or otherwise transfer any such leasehold interest or the proceeds thereof or
other Post-Petition Collateral related thereto shall have no force and effect with respect to the transactions granting the Lenders a priority security interest in such leasehold interest, license, contract or agreement, or the proceeds of any
assignment and/or sale thereof by any Debtor in favor of the Lenders in accordance with the terms of the DIP Loan Agreement. 
 (d) The
Post-Petition Liens and Superpriority Claims granted to the Lenders under this Interim Order shall continue in the Chapter 11 Cases and in any superseding case or cases for the Debtors under any chapter of the Bankruptcy Code, and such liens and
security interests shall maintain their priority as provided in this Interim Order, until all the DIP Obligations have been paid in full in cash and the Total Revolving Credit Commitment and the Total Term Loan B Commitment (together, the
“Total Commitment”) are terminated. 
  

 14 

 9. Acknowledgements. In connection with the post-petition financing under the DIP Loan Agreement,
the Debtors have agreed, represented, stipulated, or acknowledged, as applicable, which acknowledgements shall not be binding on any non-debtor party in interest as provided in paragraph 16 herein, that: 
 (a) except as set forth in Section 4.20 of the DIP Loan Agreement, the Debtors have obtained all authorizations, consents and approvals required to
be obtained from, and have made all filings with and given all notices required to be made or given to, all U.S. federal, state and local governmental agencies, authorities and instrumentalities in connection with the execution, delivery,
performance, validity and enforceability of the DIP Loan Documents to which any Debtor is a party; 
 (b) as consideration for entry into the
DIP Loan Documents, until such time as all DIP Obligations and the Pre-Petition Obligations are indefeasibly paid in full in cash and the Total Commitment is terminated in accordance with the DIP Loan Agreement, the Debtors shall not in any way
prime or seek to prime (i) the liens provided to the Lenders under this Interim Order, the Final Order or the DIP Loan Documents or (ii) the liens of the Pre-Petition Lenders and the Pre-Petition Agents in the Pre-Petition Collateral or
the Post-Petition Collateral by offering a subsequent lender or a party-in-interest a superior or pari passu lien or security interest pursuant to section 364(d) of the Bankruptcy Code or otherwise, nor shall the Debtors seek the use of Cash
Collateral without of the consent of the Agents, other than any use of Cash Collateral or additional liens granted the Lenders in the Final Order as may be contemplated in the DIP Loan Agreement and the Motion; 
 (c) as consideration for entry into the DIP Loan Documents, until such time as all DIP Obligations and the Pre-Petition Obligations are indefeasibly paid
in full in cash and the 

  

 15 

 
Total Commitment is terminated in accordance with the DIP Loan Agreement, the Debtors shall not in any way or at any time, permit to exist an administrative
expense claim, other than the Carve-Out, against any of the Debtors that are Loan Parties (now existing or hereafter arising) of any kind or nature whatsoever, including without limitation any administrative expenses of the kind specified in, or
arising or ordered under, sections 105, 326, 328, 503(b), 506(c), 507(a), 507(b), 546(c), 552(b), 726, 1113 and 1114 of the Bankruptcy Code having priority equal or superior to the priority of (i) the Superpriority Claim; or (ii) the
Adequate Protection Claims of the Pre-Petition Agents and Pre-Petition Lenders (as defined below) as provided herein; 
 (d) the Debtors are
indebted to the Pre-Petition Agents and the Pre-Petition Lenders, pursuant to that certain Credit Agreement, dated as of June 28, 2006, as amended by the First Amendment thereto dated as of September 26, 2006, the Second Amendment thereto
dated as of December 31, 2006, the Third Amendment thereto dated as of May 16, 2007, and as amended or otherwise modified from time to time, by and among the Pre-Petition Loan Parties, the Pre-Petition Lenders and the Pre-Petition Agents
(the “Pre-Petition Credit Agreement”), as of October 29, 2007, (a) in the aggregate principal amount of $37,196,614.97 in respect of Pre-Petition Revolving Loan Obligations under the Pre-Petition Credit Agreement,
(b) in the aggregate principal amount of $185,440,383.17 in respect of Pre-Petition Term Loan Obligations under the Pre-Petition Credit Agreement, (c) in the aggregate amount of $17,155,183.42 in respect of obligations related to the
Pre-Petition Letters of Credit, and (d) in the aggregate amount of $7,944,908.25 in respect of Pre-Petition Bank Product Obligations, in each case, together with interest accrued and accruing thereon in respect of such loans, and costs,
expenses, fees (including attorneys’ fees), indemnities, reimbursement obligations and other charges now or hereafter owed by the Pre-Petition Loan Parties to the Pre-Petition Agents and the Pre-Petition 

  

 16 

 
Lenders in accordance with the Pre-Petition Credit Agreement, all of which are unconditionally owing by the Pre-Petition Loan Parties to the Pre-Petition
Agents and the Pre-Petition Lenders, without offset, defense or counterclaim of any kind, nature and description whatsoever, 
 (e) except as
otherwise provided herein with respect to the Post-Petition Liens and the Pre-Petition Lender Replacement Liens, the Pre-Petition Agents and the Pre-Petition Lenders have and shall continue to have, (x) in the case of the Pre-Petition Term Loan
Lenders, in the full amount of the Pre-Petition Term Loan Obligations, valid, enforceable and perfected first priority and senior liens (the “Pre-Petition Term Loan Liens”) on and security interests in all of the Pre-Petition
Collateral pursuant to the Pre-Petition Credit Agreement and the other Loan Documents (as defined in the Pre-Petition Credit Agreement) as in effect on the Filing Date to secure all of the Pre-Petition Term Loan Obligations, and (y) in the case
of the Pre-Petition Revolving Credit Lenders, in the full amount of the Pre-Petition Revolving Credit Obligations, valid, enforceable and perfected first priority and senior liens (the “Pre-Petition Revolving Credit Liens”) on and
security interests in all of the Pre-Petition Collateral pursuant to the Pre-Petition Credit Agreement and the other Loan Documents (as defined in the Pre-Petition Credit Agreement) as in effect on the Filing Date to secure all of the Pre-Petition
Revolving Credit Obligations; 
 (f) (i) as of the Chapter 11 Filing Date, the Pre-Petition Credit Agreement remains in full force and effect
and constitutes a legal, valid, and binding agreement among the Pre-Petition Loan Parties, the Pre-Petition Lenders and the Pre-Petition Agents, enforceable in accordance with its terms (subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and to general principles of equity); and (ii) the Pre-Petition Obligations (including, without limitation, all amounts paid in 

  

 17 

 
connection with the Pre-Petition Partial Payoff (as defined below)) constitute allowed, legal, valid, binding, enforceable and non-avoidable obligations of
Debtors, and are not subject to any offset, defense, counterclaim, avoidance, recharacterization or subordination pursuant to the Bankruptcy Code or any other applicable law, and Debtors do not possess and shall not assert any claim, counterclaim,
setoff or defense of any kind, nature or description which would in any way affect the validity, enforceability and non-avoidability of any of the Pre-Petition Obligations; provided, however, that nothing herein shall prohibit the
Debtors from objecting to the Applicable Prepayment Premium, including any objection relating to (i) the allowance thereof relating to the Prepetition Partial Payoff (defined below) or (ii) the termination of commitments with respect to
the Pre-Petition Revolving Credit Loans; and nothing herein shall prohibit the Administrative Agent from opposing such objection by the Debtor. 
 (g) there are no other liens on or security interests in the Pre-Petition Collateral except for the Permitted Liens and liens held by the Pre-Petition Lenders and Pre-Petition Agents; 
 (h) (i) the liens on and security interests in the Pre-Petition Collateral were granted for fair consideration and reasonably equivalent value, and were
granted contemporaneously with the making of the loans secured thereby, (ii) the liens on, security interests in and right of set off against the Pre-Petition Collateral are valid, binding, properly perfected and non-avoidable and the Debtors
do not possess and will not assert any claim, counterclaim, setoff or defense of any kind, nature or description which would in any way affect the validity, enforceability and non-avoidability of any of liens, security interests or rights in, on or
to the Pre-Petition Collateral, and (iii) the Debtors are unaware of any action taken by the Pre- Petition Agents and Pre-Petition Lenders which would result in the postponement, disallowance, or subordination of the Pre-Petition Obligations.

  

 18 

 10. Partial Payoff of Pre-Petition Revolving Loan Obligations. (a) During the Interim Period,
on any date upon which P&T or any of its Subsidiaries shall receive any Net Cash Proceeds of any Revolving Priority Borrowing Base Collateral, then, in such event, the Debtor shall, first repay the outstanding principal amount of the
Pre-Petition Revolving Loan Obligations in an amount equal to 100% of such Net Cash Proceeds immediately upon receipt thereof by the Debtor or any representative of the Debtor’s estate (and shall permanently reduce the Total Revolving Credit
Commitment in the amount of such prepayment) to the extent of the aggregate outstanding amount of the Pre-Petition Revolving Loan Obligations in accordance with the terms of this Interim Order and the DIP Loan Agreement. (the “Pre-Petition
Partial Payoff”); and 
 (b) All such Pre-Petition Revolving Loan Obligations repaid or otherwise assumed under the DIP Loan
Agreement shall be deemed irrevocably satisfied under the Pre-Petition Loan Agreement; provided, that, if such Pre-Petition Revolving Loan Obligations are not subsequently held by final, non-appealable order of this Court
to have been undersecured as of the Chapter 11 Filing Date pursuant to a timely filed Challenge (defined below), (i) such amounts shall be deemed to be Avoided Payments (as defined in the DIP Loan Agreement), (ii) the Pre-Petition Agents
and Pre-Petition Revolving Credit Lenders shall repay to the Administrative Agent pursuant to the DIP Loan Documents the amount of such Avoided Payment for application to the DIP Revolving Credit Facility in accordance with the terms thereof and
(iii) the Pre-Petition Agents and Pre-Petition Revolving Credit Lenders shall retain and shall not be deemed to have waived any right to assert Reinstated Pre-Petition Revolving Loan Obligations under the DIP Loan Agreement or any other
deficiency claims or rights under any subordination or intercreditor agreement. 
  

 19 

 11. Adequate Protection. 
 (a) As adequate protection for the Debtors’ (i) granting of perfected, senior security interests in Pre-Petition Collateral in which the
Pre-Petition Lenders and Pre-Petition Agents have a perfected, first priority security interest, and (ii) use of the Pre-Petition Collateral (including Cash Collateral), in accordance with sections 361, 363(e), and 364(d) of the Bankruptcy
Code, the Pre-Petition Lenders and Pre-Petition Agents are hereby granted valid, perfected, post-petition security interests in and liens (the “Pre-Petition Lender Replacement Liens”) on the Post-Petition Collateral (including Cash
Collateral), and all cash and non-cash proceeds, rents, products and profits of any such Pre-Petition Collateral, to secure an amount equal to the aggregate diminution in the value of the Pre-Petition Lenders’ and Pre-Petition Agents’
interests in the Debtors’ interest in the Pre-Petition Collateral since the Filing Date for any reason (the “Pre-Petition Lender Diminution Amount”). 
 (b) Notwithstanding anything to the contrary contained in this Interim Order or elsewhere, the Pre-Petition Lender Replacement Liens granted herein are
pari passu with the liens under the Pre-Petition Credit Agreement (the “Pre-Petition Liens”) and are junior and subordinate only to (i) the Post Petition Liens, (ii) Permitted Priority Liens, and (iii) the
Carve-Out. 
 (c) To the extent that the Pre-Petition Lender Replacement Liens prove insufficient to provide the Pre-Petition Lenders and/or
Pre-Petition Agents, as the case may be, with adequate protection, the Pre-Petition Lenders and Pre-Petition Agents shall be granted junior superpriority administrative claims (the “Adequate Protection Claims”) in the full amount

  

 20 

 
of the Pre-Petition Lender Diminution Amount, as contemplated by section 507(b) of the Bankruptcy Code, having priority over any other claims, including the
Debtors’ intercompany administrative claims and all other claims made pursuant to section 507(b) of the Bankruptcy Code, and junior only to the Superpriority Claim granted the Lenders and subject only to payment of DIP Obligations and the
Carve-Out. 
 (d) Subject only to the rights of the parties in interest reserved under Paragraph 16 below, each Debtor shall be deemed to
have released, waived, and agreed not to pursue any and all claims and causes of action it has or may have against the Pre-Petition Lenders and Pre-Petition Agents or the Pre-Petition Collateral. 
 12. Fees. All fees payable and costs and/or expenses reimbursable under the DIP Loan Agreement and other DIP Loan Documents by the Debtors to the
Lenders are hereby approved and shall be promptly paid by the Debtors in accordance with this Interim Order and the DIP Loan Documents, and the Debtors are hereby authorized to pay all such fees without the necessity of the Debtors, the Lenders or
the Agents filing any further application with the Court for approval or payment of such fees or expenses. All fees and costs and/or expenses payable by the Debtors pursuant to the terms of the DIP Loan Documents in connection with the recording,
filing and insuring of financing statements and mortgages to confirm (pursuant to Paragraph 18 of this Interim Order) the perfection of the security interests granted or authorized by this Interim Order are hereby approved and shall be promptly paid
in full by the Debtors without the necessity of the Debtors, the Lenders or the Agents filing any further application with the Court for approval of payment of such fees, costs and/or expenses. 
 13. Authority to Execute and Deliver Necessary Documents. Each of the Debtors is hereby authorized and empowered to enter into and deliver the DIP
Loan Agreement 

  

 21 

 
in the form annexed hereto as Exhibit B and the other DIP Loan Documents, including, but not limited to, mortgages or deeds of trust as necessary or
appropriate and securing all of the Debtors’ obligations under the DIP Loan Agreement, including repayment of all DIP Obligations. Each of the Debtors is hereby further authorized, empowered and directed (a) to perform all of its
obligations under the DIP Loan Documents and such other agreements as may be required by the DIP Loan Documents to give effect to the terms of the financing provided for in the DIP Loan Documents as approved by this Interim Order, (b) to
perform all acts required under the DIP Loan Documents and this Interim Order, including, without limitation, the payment of all principal, interest, charges, fees, and the reimbursement of present and future costs and expenses (including without
limitation, reasonable attorneys’ fees and other professional expenses) paid or incurred by the Lenders or the Agents as provided for in this Interim Order, the DIP Loan Agreement, and the other DIP Loan Documents, all of which unpaid
principal, interest, charges, fees, reasonable attorneys’ and other professional fees and the reimbursement of present and future reasonable costs and expenses shall be included and constitute part of the principal amount of the DIP
Obligations, be deemed a Superpriority Claim having the same priority as all other DIP Obligations hereunder and be secured by valid and perfected liens on and security interests in all of the Post-Petition Collateral as and to the extent provided
for in this Interim Order, the DIP Loan Agreement, and the other DIP Loan Documents, subject and subordinate in priority of payment only to the Carve-Out and the Permitted Priority Liens, and (c) to do and perform all other acts, to make,
execute and deliver all other instruments, agreements and documents, which may be required or necessary for the Debtors to perform all of their obligations under this Interim Order and the DIP Loan Documents, without further order of the Court and
pending the Final Hearing. The DIP Obligations shall constitute 

  

 22 

 
valid and binding obligations of each of the Debtors enforceable against each of them, and each of their successors and assigns, in accordance with their
terms and the terms of this Interim Order. 
 14. Amendments. The Debtors and Lenders may enter into any amendments or modifications
to the DIP Loan Agreement and the other DIP Loan Documents without the need of further notice and hearing or order of this Court, provided that (a) such modifications or amendments do not materially and adversely affect, in the reasonable view
of the Debtors, the rights of any creditor or other party-in-interest and (b) notice of any such amendment or modification is filed with the Court. 
 15. Carve-Out. (a) The Pre-Petition Liens, the Post-Petition Liens and the Superpriority Claims shall be subject to the Carve-Out (as defined in the DIP Loan Agreement). In connection with (i) any
sale, transfer or other disposition of all or any portion of the Pre-Petition Collateral or the Post-Petition Collateral or (ii) any plan of reorganization or liquidation to which the Lenders consent, any amount determined to be due and owing
in respect of the Carve-Out (which, for purposes of this provision, shall include any Transaction Fee to the extent not paid from the proceeds of such sale, transfer or other disposition) shall be satisfied pursuant to Section 2.13(j) of the
DIP Loan Agreement or otherwise. 
 (b) No liens or priority status, other than the Carve-Out, having a lien or administrative priority
superior to or pari passu with those granted by this Interim Order to the Lenders, shall be granted without the written consent of the Lenders while any portion of the DIP Obligations remains outstanding. 
 (c) With respect to professional expenses incurred by the Debtors or the Committees, the Carve-Out also shall include any payments authorized to be made
pursuant to 

  

 23 

 
any Bankruptcy Court-approved procedure for monthly or other payment of compensation or reimbursement of expenses, subject to the Budget; provided,
however, that nothing contained herein shall be construed: (i) to exempt those persons hereafter receiving interim compensation payments or reimbursement of expenses pursuant to any such Bankruptcy Court-approved procedure from the
applicable provisions of bankruptcy law, including the requirements that such compensation or reimbursement be allowed on a final basis after the filing of appropriate fee applications, and, if applicable, any subsequent order of this Court
requiring that such payments be disgorged, and/or (ii) as consent to the allowance of any fees and expenses referred to above, and shall not affect any right of the Lenders to object to the reasonableness of such amounts; 
 (d) The Carve-Out shall not include, and neither Cash Collateral nor proceeds of any of the DIP Loans shall be used to request (i) the use of Cash
Collateral or authority to sell or otherwise dispose of the Collateral without the Lenders’ prior written consent, and (ii) authorization to obtain postpetition loans or other financial accommodations pursuant to section 364(c) or
(d) of the Bankruptcy Code, or otherwise, other than in accordance with the Budget or as expressly permitted in the DIP Loan Agreement, or use Cash Collateral pursuant to section 363(c) of the Bankruptcy Code without the consent of the Agents
and Lenders unless such loans or financial accommodations shall be used to indefeasibly pay in full in cash all DIP Obligations; 
 (e)
Except as set forth in the DIP Loan Agreement, the Carve-Out shall not include, and neither Cash Collateral nor proceeds of any of the DIP Loans shall be used for, the payment or reimbursement of any fees or disbursements of the Debtors, any
Committees or any trustee appointed in these Chapter 11 Cases incurred in connection with the assertion and prosecution of, or joinder in, any claim, counterclaim, action, proceeding, application, motion, 

  

 24 

 
objection, defenses or other contested matter, including, but not limited to, any so-called lender liability claims, the purpose of which is to seek any
order, judgment, determination or similar relief: (i) commencing or prosecuting any action asserting claims pursuant to sections 506(b), 542, 544, 545, 547, 548, 549, 550, 551, 552(b), 553(b) or 724(a) of the Bankruptcy Code or other cause of
action (whether arising under state law, the Bankruptcy Code or other federal law, under any foreign law) against the Lenders, Agents, Pre-Petition Lenders, and Pre-Petition Agents with respect to the validity and extent of the DIP Obligations or
the Pre-Petition Obligations or the validity, extent and priority of liens and security interests securing the DIP Obligations or the Pre-Petition Obligations; (ii) invalidating, setting aside, avoiding or subordinating, in whole or in part,
the Lenders’, Agents’, Pre-Petition Lenders’, or Pre-Petition Agents’, liens on and security interests in the Post-Petition Collateral or Pre-Petition Collateral; (iii) preventing, hindering or delaying (whether, directly or
indirectly) the Lenders, Agents, Pre-Petition Lenders, or Pre-Petition Agents in respect of their liens and security interests in the Post-Petition Collateral or Pre-Petition Collateral; and 
 (f) Notwithstanding anything to the contrary contained in subparagraphs 15(c-e) above, the Carve-Out shall include claims for services rendered by
professionals retained by (i) the Committees, in an amount not to exceed $100,000 in the aggregate, in connection with the investigation described in paragraph 16 below, but solely to the extent such fees and expenses are allowed under sections
330, 331 and 503(b) of the Bankruptcy Code; (ii) the Monitor, in an amount not to exceed CDN$100,000, related to the investigation of any claims against (x) the Agents or any Lender or their claims or security interests in or Liens on, the
Collateral whether under the DIP Loan Agreement or any other DIP Loan Document and (y) any Pre-Petition Agent or any Pre-Petition Lender under the Pre-Petition Credit Agreement or their claims or security interests in connection with the
Pre-Petition Credit Agreement or any of the other loan documents or instruments entered into in connection therewith. 
  

 25 

 16. Committee Investigation Period. 
 Notwithstanding anything herein or in the DIP Loan Agreement to the contrary, until sixty (60) days after the appointment by the U.S. Trustee of a
statutory creditors’ committee (the “Creditors’ Committee”) in these Chapter 11 Cases, or seventy-five (75) days after the entry of the Final Order if no Creditors’ Committee is appointed (the
“Investigation Termination Date”), the Creditors’ Committee or any other party-in-interest with the requisite standing, other than the Debtors, shall be entitled to investigate the validity, perfection, enforceability and
extent of the Pre-Petition Lenders’ and Pre-Petition Agents’, existing liens relating to the Pre-Petition Obligations or to notify the Debtors of any other claims or causes of action against the Pre-Petition Lenders and Pre-Petition Agents
(in each case, a “Challenge”). If the Creditors’ Committee, or, if no Creditors’ Committee is appointed, any party in interest determines that there may be a Challenge, it must notify the Debtors in writing (with a copy to
the Agents) of its demand that the Debtors initiate an appropriate action or adversary proceeding relating thereto by not later than the Investigation Termination Date. If no such action is filed or taken on or before the Investigation Termination
Date (or such other later date as extended by the written consent of the Pre-Petition Lenders and Pre-Petition Agents or by an order of the Bankruptcy Court, for cause shown), the acknowledgements contained in paragraphs 10(d) through 10(h) of this
Interim Order shall be irrevocably binding on all parties in interest without further action by any party or this Court and all parties shall be forever barred from bringing or taking any such action. Unless the Pre-Petition Lenders and Pre-Petition
Agents consent in writing to such an extension, the Investigation Termination Date may not be extended. 
  

 26 

 17. Limitation On Additional Surcharges. Subject to entry of the Final Order, except to the extent
of the Carve-Out, no costs or expenses of administration or other surcharge, lien, assessment or claim incurred on or after the Chapter 11 Filing Date of any person or entity shall be imposed against any of the Post-Petition Collateral, Pre-Petition
Collateral, Pre-Petition Lenders, Pre-Petition Agents, Lenders, or Agents, nor shall the Post-Petition Collateral, Pre-Petition Collateral, Pre-Petition Lenders, Pre-Petition Agents, Lenders, or Agents be subject to surcharge by any
party-in-interest for any amounts arising or accruing from the Filing Date through and including the Final Facility Termination Date, pursuant to sections 506(c), 552(b) or 105(a) of the Bankruptcy Code or similar principle of law. No action,
inaction, or acquiescence by the Lenders, Agents, Pre-Petition Lenders, or Pre-Petition Agents in these cases, including the Lenders’ funding of the Debtors’ ongoing operations under this Interim Order or the Final Order, or the DIP Loan
Documents as approved by each, shall be deemed to be or shall be considered as evidence of any alleged consent by the Lenders, Agents, Pre-Petition Lenders, or Pre-Petition Agents to a charge against the Post-Petition Collateral, Pre-Petition
Collateral, Lenders, Agents, Pre-Petition Lenders, or Pre-Petition Agents pursuant to sections 506(c), 552(b) or 105(a) of the Bankruptcy Code or similar principle of law. The Lenders shall not be subject in any way whatsoever to the equitable
doctrine of “marshaling” or any similar doctrine with respect to the Post-Petition Collateral. 
 18. Additional Perfection
Measures. (a) The liens, security interests, and priorities granted to the Lenders pursuant to this Interim Order and the DIP Loan Documents with respect to property of the Debtors’ estates shall be perfected by operation of law
immediately upon entry of this Interim Order by the Court. 
 (b) Neither the Debtors nor the Lenders shall be required to enter into or to

  

 27 

 
obtain landlord waivers, mortgagee waivers, bailee waivers or warehouseman waivers or to file or record financing statements, mortgages, deeds of trust,
leasehold mortgages, notices of lien or similar instruments in any jurisdiction (including, trademark, copyright, tradename or patent assignment filings with the United States Patent and Trademark Office, Copyright Office, or any similar agency with
respect to intellectual property), or obtain consents from any licensor or similarly situated party-in-interest, or take any other action in order to validate and to perfect the security interest and Post-Petition Liens or Pre-Petition Lender
Replacement Liens granted pursuant to this Interim Order. 
 (c) If the Lenders, in their sole discretion and in accordance with the terms of
the DIP Loan Agreement, choose to obtain consents from any licensor or similarly situated party-in-interest, to file financing statements, notices of lien or similar instruments, to record financing statements, mortgages or deeds of trust, or to
otherwise confirm perfection of such security interests and liens, the automatic stay imposed under section 362 of the Bankruptcy Code is hereby modified to permit such actions, and: (i) the Lenders are authorized and empowered to file or
record financing statements, mortgages, deeds of trust or similar instruments which secure the DIP Obligations; (ii) all such documents shall be deemed to have been recorded and filed as of the time and on the date of entry of this Interim
Order; and (iii) no defect in any such act shall affect or impair the validity, perfection and enforceability of the liens granted hereunder. 
 (d) In lieu of obtaining such consents or filing such financing statements, notices of lien or similar instruments, the Lenders may, at their sole discretion, choose to file a true and complete copy of this Interim Order in any place at
which any such instruments would or could be filed, together with a description of Post-Petition Collateral located within the 

  

 28 

 
geographic area covered by such place of filing, and such filing by the Lenders shall have the same effect as if such financing statements, notices of lien
or similar instruments had been filed or recorded at the time and on the date of entry of this Interim Order. 
 (e) The Lenders may deliver
a copy of this Interim Order to any third parties having possession of control of Pre-Petition Collateral, Cash Collateral, or Post-Petition Collateral. 
 19. Application of Collateral Proceeds. Except as may be otherwise permitted under the DIP Loan Documents and Paragraph 6 hereof, the Debtors are hereby authorized and directed, whether or not an Event of
Default or a Default by the Debtors of any of their obligations under the DIP Loan Documents (as approved by this Interim Order) has occurred, to remit to the Administrative Agent in accordance with the DIP Loan Documents all collections on, and
proceeds of, the Post-Petition Collateral, including all accounts receivable collections, proceeds of sales of inventory, fixed assets and any other assets, including sales in and outside the ordinary course of business, and all other cash or cash
equivalents which shall at any time on or after the Chapter 11 Filing Date come into the possession or control of the Debtors, or to which the Debtors shall become entitled at any time. The automatic stay provisions of section 362 of the Bankruptcy
Code are hereby modified to permit the Agents and Lenders to collect, retain and apply all existing Cash Collateral and collections, remittances and proceeds of Post-Petition Collateral to the DIP Obligations, in accordance with this Interim Order
and the DIP Loan Documents. 
 20. Access to Information. Without limiting the rights of access and information afforded the Agents
and Lenders under the DIP Loan Agreement and other DIP Loan Documents, the Debtors shall permit representatives, agents and/or employees of the 

  

 29 

 
Agents and Lenders to have reasonable access to their premises and their records during normal business hours (without unreasonable interference with the
proper operation of the Debtors’ businesses) and shall cooperate, consult with, and provide to such persons all such non-privileged information as they may reasonably request. 
 21. Access to Collateral. Notwithstanding anything contained herein to the contrary, and without limiting any other rights or remedies of the
Lenders contained in this Interim Order or the DIP Loan Documents, or otherwise available at law or in equity, and subject to the terms of the DIP Loan Agreement, upon three (3) business days’ written notice to the landlord of any leased
premises upon which any Post-Petition Collateral is located (a “Landlord”) that an Event of Default or a Default by the Debtors of any of their obligations under the DIP Loan Documents or this Interim Order has occurred and is continuing,
the Lenders may, subject to any separate agreement by and between such Landlord and the Agents and/or Lenders, enter upon any leased premises of any of the Debtors for the purpose of exercising any remedy with respect to Post-Petition Collateral
located thereon and shall be entitled to all of the Debtors’ rights and privileges as lessee under such lease without interference from the Landlords thereunder; provided, however, that the Agents shall only pay base rent as
defined in the lease with any such Landlord (or other agreement between Lender and the Landlord) and additional rent obligations of the Debtors (limited to charges for utilities, unless otherwise agreed between the Landlord and Agents) that first
arise after the Agents’ written notice referenced above and that are payable during the period of such occupancy by the Agents, calculated on a per diem basis. Nothing herein shall require the Debtors to assume and assign to the Agents any
lease under section 365(a) of the Bankruptcy Code as a precondition to the rights afforded to the Agents in this paragraph. 
  

 30 

 22. Cash Management Systems. The Debtors are authorized and directed to maintain their cash
management system in a manner consistent with the DIP Loan Documents and the Order (i) Authorizing Continued Maintenance of Existing Bank Accounts, (ii) Authorizing Continued Use of Existing Cash Management System, (iii) Authorizing
Continuation of Certain Intercompany Transactions and Preservation of Existing Intercompany Setoff Rights, (iv) Granting Administrative Status for Postpetition Intercompany Transactions, (v) Authorizing Continued Use of Existing Business
Forms and (vi) Waiving the Requirements of 11 U.S.C. § 345(b). 
 23. Automatic Stay Modified. The automatic stay provisions
of section 362 of the Bankruptcy Code are, to the extent applicable, vacated and modified to the extent necessary so as to permit the Lenders: 
 (a) upon the occurrence and during the continuance of an Event of Default under the DIP Loan Documents, or any default of a provision of this Interim Order, to declare all or any portion of the DIP Loans then outstanding to be due and
payable and (i) to terminate the Commitments, and, upon such termination, the Commitments shall terminate immediately, (ii) to declare the DIP Loans then outstanding to be due and payable in whole (or in part, in which case any principal
not so declared to be due and payable may thereafter be declared to be due and payable), and, upon such declaration, the principal of the DIP Loans so declared to be due and payable, together with accrued interest thereon and all fees and other
obligations of the Loan Parties accrued under the DIP Loan Agreement, shall become due and payable immediately, without further order of, or application to, the Court, presentment, demand, protest or other notice of any kind, and (iii) after
five (5) Business Days’ prior written notice to the counsel for Debtors, counsel for the Committees, and the U.S. Trustee, to exercise, or direct the Agents to 

  

 31 

 
exercise, any and all of their other rights under applicable law, under the DIP Loan Agreement and the other Loan Documents (including, but not limited to,
the Bankruptcy Code and the Uniform Commercial Code). Solely for purposes of the preceding clause (iii), the automatic stay of section 362(a) of the Bankruptcy Code, to the extent applicable, shall only be deemed terminated as provided herein
without the necessity of any further action by the Court in the event that the Debtors have not obtained an order from this Court to the contrary within five (5) Business Days after receiving such notice from the Lenders pursuant to this
Interim Order. The Debtors shall have the burden of proof at any hearing on any request by them to re-impose or continue the automatic stay of section 362(a) of the Bankruptcy Code or to obtain any other injunctive relief, and the only issue that
may be raised at any such hearing shall be whether, in fact, an Event of Default or Default has occurred and is continuing; 
 (b) this Court
shall retain exclusive jurisdiction to hear and resolve any disputes and enter any orders required by the provisions of this Interim Order and relating to the application, re-imposition or continuance of the automatic stay of section 362(a) of the
Bankruptcy Code or other injunctive relief requested; 
 (c) upon the occurrence and during the continuance of an Event of Default or a
Default by the Debtors of any of their obligations under the DIP Loan Documents, the Lenders and/or Agents, as applicable, may, without providing any prior notice thereof, immediately charge interest at the post-default rate set forth in the DIP
Loan Agreement; and 
 (d) upon the occurrence and during the continuance of an Event of Default or a Default by the Debtors of any of their
obligations under the DIP Loan Documents, the Agents may at all times continue to collect and sweep cash as provided in paragraphs 19 and 24 hereof. 
 24. Termination of Authorization to Use Cash Collateral. Upon the 

  

 32 

 
occurrence and during the continuance of an Event of Default under the DIP Loan Documents or of this Interim Order, the Lenders shall have no further
obligation to provide financing under the DIP Loan Documents or DIP Loan Agreement as approved by this Interim Order, and the authorization to use Cash Collateral under the terms of this Interim Order shall automatically terminate; provided,
however, that if the Debtors’ right to use Cash Collateral has been terminated pursuant to the provisions of this Interim Order, such right may be extended only upon (i) consent of the Agents and Lenders, (ii) the DIP
Obligations and the Pre-Petition Obligations having been otherwise paid in full in cash, or (iii) further Order of this Court entered upon and after appropriate notice and opportunity for a hearing being provided to the Lenders;
provided, however, the Debtors shall not be authorized to seek such further order until the DIP Obligations have been paid in full in cash; provided further, that any such further Order authorizing the use of Cash
Collateral shall be conditioned as is necessary to provide adequate protection of Pre-Petition Lenders’ interests in the Pre-Petition Liens and the Pre-Petition Lenders’ Replacement Liens, including the diminution in the value of the
Pre-Petition Collateral since the Chapter 11 Filing Date. The Agents and Lenders shall have no obligation to agree to such an extension under any circumstances and may elect or not elect to agree to such an extension as they determine in their sole
and absolute discretion. 
 25. Bankruptcy Obligations. Until the Commitments have expired or terminated and the principal of and
interest on the Loans, all fees and all other DIP Obligations shall have been paid in full, it shall be an Event of Default under the DIP Loan Documents if the Debtors fail to: 
 (a) In the case of the wood products business of P&T and its Subsidiaries: 
 (i) obtain, on or before November 30, 2007, entry of one or more orders of the Bankruptcy Courts in form and substance reasonably satisfactory to the
Agents approving the procedures for sale of all or substantially all of the assets of the wood products business; 
  

 33 

 (ii) conduct, on or before December 20, 2007, one or more auctions for the sale of all or
substantially all of the assets of the wood products business; 
 (iii) obtain, on or before January 8, 2008, entry of one or more
orders of the Bankruptcy Courts in form and substance reasonably satisfactory to the Agents approving the sale of all or substantially all of the assets of the wood products business; and 
 (iv) consummate, as soon as practicable after the conditions to closing as set forth in the relevant asset purchase agreement are satisfied and/or
waived, but in any event no later than January 31, 2008, one or more sales of all or substantially all of the assets of the wood products business. 
 (b) In the case of the pulp business of P&T and its Subsidiaries: 
 (i) obtain on or before
December 7, 2007, the entry of one or more orders in form and substance reasonably satisfactory to the Agents approving the procedures for sale of all or substantially all of the assets of the pulp business; 
 (ii) conduct on or before January 22, 2008, one or more auctions for the sale of all or substantially all of the assets of the pulp business;

 (iii) obtain on or before January 28, 2008, the entry of one or more orders in form and substance reasonably satisfactory to the
Agents approving the sale of all or substantially all of the assets of the pulp business; and 
  

 34 

 (iv) consummate, as soon as practicable after the conditions to closing as set forth in the relevant
asset purchase agreement are satisfied and/or waived, but in any event no later than the Final Maturity Date, one or more sales of all or substantially all of the assets of the pulp business; 
 provided that, in connection with any such sale of the Debtors’ assets, some or all of the Lenders may submit a bid and purchase the assets on which they
bid, subject to the terms, conditions, and limitations set forth in the DIP Loan Documents (including section 2.13(j) of the DIP Loan Agreement) and this Interim Order. 
 26. No Responsible Person/Fiduciary. In making the decision to make DIP Loans, administering the DIP Loans, and extending other financial accommodations to the Debtors under the DIP Loan Agreement or to
collect the indebtedness and obligations of the Debtors, the Agent and Lenders (a) shall not owe any fiduciary duty to the Debtors, their creditors, shareholders or estates; and (b) shall not be considered to be exercising control
over any operations of the Debtors or acting in any way as a responsible person, an owner or an operator under any applicable law, including without limitation, any environmental law (including but not limited to the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. §§ 9601, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901, et seq., as either may be amended from time to time, or any similar federal or state
statute). Nothing in this Interim Order or any other documents related to this transaction shall be in any way construed or interpreted to impose or allow the imposition upon the Agents or Lenders of any liability for any claims arising from
the pre-petition or post-petition activities of the Debtors in the operation of their businesses or in connection with their restructuring efforts. 
  

 35 

 27. Successors and Assigns. The DIP Loan Documents and the provisions of this Interim Order shall
be binding upon the Lenders, the Debtors and their respective successors and assigns, and shall inure to the benefit of the Agents, the Lenders and the Debtors and their respective successors and assigns including, without limitation, any trustee,
responsible officer, examiner with expanded powers, estate administrator or representative, or similar person appointed in a case for the Debtors under any chapter of the Bankruptcy Code. 
 28. No Third Party Beneficiary. Except with respect to any of the Lenders, Agents, Pre-Petition Lenders, Pre-Petition Agents, their delegates,
successors and assigns, no rights are created hereunder for the benefit of any third party, any creditor or any direct, indirect or incidental beneficiary. 
 29. Binding Nature of Agreement. Each of the DIP Loan Documents to which the Debtors are and will become a party shall constitute legal, valid and binding obligations of the Debtors, enforceable against the
Debtors in accordance with their terms. The DIP Loan Documents have been or will be properly executed and delivered to the Agents and Lenders by the Debtors. The rights, remedies, powers, privileges, liens and priorities of the Lenders provided for
in this Interim Order and in any other DIP Loan Documents shall not be modified, altered or impaired in any manner by any subsequent order (including a confirmation order) or by any plan of reorganization or liquidation in these cases or in any
subsequent case under the Bankruptcy Code, unless and until the DIP Obligations have first been paid in full in cash and completely satisfied and the Total Commitment is terminated in accordance with the DIP Loan Agreement. 
 30. Subsequent Reversal or Modification. This Interim Order is entered pursuant to section 364 of the Bankruptcy Code, granting the Agents and
Lenders all protections 

  

 36 

 
afforded by section 364(e) of the Bankruptcy Code. If any or all of the provisions of this Interim Order are hereafter reversed, modified, vacated or stayed,
that action will not affect (a) the validity of any obligation, indebtedness or liability incurred hereunder by any of the Debtors to the Agents and Lenders prior to the date of receipt by the Lenders of written notice of the effective date of
such action or (b) the validity and enforceability of any lien or priority authorized or created hereby or pursuant to the DIP Loan Documents. Notwithstanding any such reversal, stay, modification or vacatur, any post-petition indebtedness,
obligation or liability incurred by any of the Debtors to the Agents and Lenders prior to written notice to the Agents and Lenders of the effective date of such action shall be governed in all respects by the original provisions of this Interim
Order, and Agents and Lenders shall be entitled to all the rights, remedies, privileges and benefits granted herein and in the DIP Loan Documents with respect to all such indebtedness, obligation or liability. 
 31. No Waivers. (a) This Interim Order shall not be construed in any way as a waiver or relinquishment of any rights that the Agents and
Lenders may have to bring or be heard on any matter brought before this Court. 
 (b) The rights and obligations of the Debtors and the
rights, claims, liens, security interests and priorities of the Agents and the Lenders arising under this Interim Order are in addition to, and are not intended as a waiver or substitution for, the rights, obligations, claims, liens, security
interests and priorities granted by the Debtors under the DIP Loan Documents. 
 (c) Without limiting the generality of the foregoing
subparagraphs, the Agents and/or the Lenders may petition this Court for any such additional protection they may reasonably require with respect to the DIP Loans or otherwise. 
  

 37 

 32. Sale/Conversion/Dismissal. (a) No motion shall be filed by the Debtors, and no order
providing for either the sale of the ownership of the stock of the Debtors or the sale of all or substantially all of the assets of the Debtors under section 363 of the Bankruptcy Code shall be entered by the Court unless, in connection and
concurrently with any such event, the proceeds of such sale are or will be sufficient to indefeasibly pay all DIP Obligations, and such DIP Obligations shall be indefeasibly Paid in Full in cash and completely satisfied and the Total Commitment is
terminated in accordance with the DIP Loan Agreement as part of such action, or the Agents and Lenders expressly consent in writing to any such transaction or the entry of such an order by the Court or such transaction is expressly permitted in the
DIP Loan Documents; provided that, nothing in this Interim Order shall prohibit the Debtors from seeking the entry of any order authorizing and approving the sale of the assets comprising the Debtors’ wood products business and pulp
business as contemplated by the DIP Loan Agreement. 
 (b) Prior to an Acceleration Date or the Final Maturity Date, no motion shall be filed
by the Debtors for, and no order dismissing or converting these Chapter 11 Cases under Section 1112 of the Bankruptcy Code or appointing a chapter 11 trustee or an examiner with expanded powers shall be entered by the Court, unless and until
the DIP Obligations shall have been indefeasibly paid in full in cash, and completely satisfied and the Total Commitment is terminated in accordance with the DIP Loan Agreement. If an order dismissing any of these cases under sections 305 or 1112 of
the Bankruptcy Code or otherwise is at any time entered, such order shall provide that (x) the liens, security interests, and Superpriority Claims granted to the Agents and Lenders hereunder and in the DIP Loan Documents, as the case may be,
shall continue in full force and effect, shall remain binding on all parties-in-interest and shall maintain their priorities as provided in this Interim Order until all DIP Obligations shall have been 

  

 38 

 
indefeasibly paid in full in cash and the Total Commitment shall have been terminated in accordance with the DIP Loan Agreement, and (y) this Court
shall retain jurisdiction to the fullest extent permitted by law, notwithstanding such dismissal, for purposes of enforcing the liens, security interests and Superpriority Claims of the Agents and Lenders, as the case may be. 
 33. Injunction. Except as provided in the DIP Loan Agreement, this Interim Order and the Final Order, the Debtors shall be enjoined and prohibited
from, at any time during the Chapter 11 Cases, (a) granting liens in the Pre-Petition Collateral, the Post-Petition Collateral or any portion thereof to any other parties, pursuant to Section 364(d) of the Bankruptcy Code or otherwise,
which liens are senior to, pari passu with or junior to the liens of the Lenders or Pre-Petition Lenders, Pre-Petition Agents, except for Liens granted to the Lenders in accordance with the Final Order as contemplated by the DIP Loan
Agreement and the Motion and/or (b) (i) using the Cash Collateral, (ii) using the Post-Petition Collateral, and (iii) applying to the Bankruptcy Court for an order authorizing the use of the Cash Collateral or the Post-Petition
Collateral, except in accordance with the DIP Loan Agreement and this Interim Order. 
 34. Survival. The Liens, lien priority,
administrative priorities and other rights and remedies with respect to the Debtors granted to the Agents and the Lenders pursuant to the DIP Loan Agreement, the Bankruptcy Court Orders and the other DIP Loan Documents (specifically including, but
not limited to, the existence, perfection and priority of the Liens and security interests provided herein and therein, and the administrative priority provided herein and therein) shall not be modified, altered or impaired in any manner by any
other financing or extension of credit or incurrence of indebtedness by any Borrower or any Guarantor (pursuant to Section 364 of the Bankruptcy Code or otherwise), by any dismissal or conversion of any of the Chapter 11 Cases, or by the
confirmation of a plan of reorganization in any of the Chapter 11 

  

 39 

 
Cases which does not (i) contain a provision for termination of the Total Commitment and payment in full in cash of all Obligations of the Borrowers and
the other Loan Parties hereunder and under the other DIP Loan Documents on or before the effective date of such plan or plans upon entry thereof and (ii) provide for the continuation of the Liens and security interests granted to the Agents for
the benefit of the Agents and the Lenders and the priorities thereof until the earlier of (A) such plan effective date, and (B) the date the Obligations are paid in full in cash and the Total Commitment is terminated, or by any other act
or omission whatsoever. 
 35. Priority of Terms. To the extent of any conflict between or among (a) the express terms or
provisions of any of the DIP Loan Documents, the Motion, any other order of this Court, or any other agreements, on the one hand, and (b) the terms and provisions of this Interim Order, on the other hand, unless such term or provision herein is
phrased in terms of “as defined in” or “as more fully described in” the DIP Loan Agreement or the DIP Loan Documents, the terms and provisions of this Interim Order shall govern. 
 36. Release. Upon the date the Obligations are paid in full in cash and the Total Commitment is terminated, the Debtors shall execute and deliver
to the Agents and Lenders a general release of any and all claims and causes of action that could have been asserted or raised under or in connection with the DIP Loan Documents. 
 37. Adequate Notice. The notice given by the Debtors of the Interim Hearing was given in accordance with Bankruptcy Rules 2002 and 4001(c)(2) and
the local rules of this Court. Under the circumstances, no other or further notice of the request for the relief granted at the Interim Hearing is required. The Debtors shall promptly mail copies of this Interim Order and notice of the Final Hearing
to the Notice Parties. Any objection to the relief sought at the Final Hearing shall be made in writing setting forth with particularity the grounds thereof, and 

  

 40 

 
filed with the Court and served so as to be actually received no later than five days prior to the Final Hearing by the following: (a) counsel to the
Debtors, Shearman & Sterling LLP, 599 Lexington Avenue, New York, New York 10022 (Attn: Fredric Sosnick, Esq.), and Pachulski Stang Ziehl & Jones LLP, 919 N. Market Street, 17th Floor, P.O. Box 8705, Wilmington, Delaware 19899-8705
(Attn: Laura Davis Jones, Esq.), (b) counsel to the Lenders, Schulte Roth & Zabel LLP, 919 Third Avenue, New York, New York 10022 (Attn: Adam C. Harris, Esq.), and Richards Layton & Finger, 920 North King Street, Wilmington,
Delaware 19801 (Attn: John H. Knight), and (c) counsel to the Administrative Agent, Goldberg Kohn, Bell, Black, Rosenbloom & Moritz, Ltd. 55 East Monroe, Suite 3300, Chicago Illinois 60603 (Attn: Randall Klein, Esq.,
randall.klein@goldbergkohn.com). 
  

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 38. Entry of Order; Effect. This Order shall take effect immediately upon execution hereof,
notwithstanding the possible application of Fed. R. Bankr. P. 6004(g), 7062, 9014, or otherwise, and the Clerk of the Court is hereby directed to enter this Interim Order on the Court’s docket in these Chapter 11 Cases. 
  

					
	Dated: Wilmington, Delaware	 	 	 	 
	            
                    , 2007	 		 	
		 		 	

		 		 	UNITED STATES BANKRUPTCY JUDGE

  

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 EXHIBIT H-2 
 FORM OF INTERIM CANADIAN BANKRUPTCY COURT ORDER 
 No.
                     
 Vancouver Registry 
 IN THE SUPREME COURT OF BRITISH COLUMBIA 
 IN THE MATTER OF THE COMPANIES’ CREDITORS ARRANGEMENT ACT, 
 R.S.C. 1985, c. C-36, AS AMENDED 
 AND IN THE MATTER OF A PLAN OF COMPROMISE OR 
 ARRANGEMENT 
 OF POPE &
TALBOT LTD. AND THE PETITIONERS 
 LISTED IN SCHEDULE “A” 
 APPLICATION UNDER THE COMPANIES’ CREDITORS ARRANGEMENT 
 ACT, R.S.C. 1985, c. C-36, AS AMENDED 
 AMENDED AND RESTATED 
 AND CONFIRMED INITIAL ORDER 
  

							
	BEFORE THE HONOURABLE	  	)	 		  	WEDNESDAY, THE 21st DAY
		  	)	 		  	
	THE CHIEF JUSTICE	  	)	 		  	OF NOVEMBER, 2007

 THE APPLICATION of the Pope & Talbot Ltd. and those affiliates listed in Schedule
“A” (the “Petitioners”) coming on for hearing at Vancouver, British Columbia, on the 21st day of November, 2007, AND ON HEARING Sean Dunphy counsel for the Petitioners and other counsel as listed on Schedule “A” hereto,
AND UPON READING the material filed, including the affidavit of R. Neil Stuart sworn October 28, 2007, and the Exhibits thereto (the “First Stuart Affidavit”), the affidavit of Harold Stanton sworn November 19, 2007 (the
“Stanton Affidavit”), and the second report to the Court of PricewaterhouseCoopers Inc. (“PWC”) in its capacity as Monitor (the “Monitor”) dated November ·, 2007, AND pursuant to the Companies’ Creditors Arrangement 

 
Act, R.S.C. 1985 c. C-36 (the “CCAA”), the Court Jurisdiction and Proceedings Transfer Act, S.B.C. 2003, c. 28, Rules 3, 10, 12,
13(1), 13(6), 14 and 44 of the Rules of Court and the inherent jurisdiction of this Honourable Court, to confirm, amend and restate an Initial Order of the Honourable Mr. Justice Morawetz dated October 29, 2007, as amended on
November 2, 2007, (the “Initial Order”) made in the proceedings in the Ontario Superior Court of Justice, court file no. 07-CL-7245 (the “Ontario Proceedings”), pursuant to the CCAA. 
 JURISDICTION 
 1. THIS COURT HEREBY CONFIRMS AND
RESTATES the Initial Order, and orders and declares that the Petitioners are companies to which the CCAA applies. Although not Petitioners, those partnerships listed on Schedule “B” (the “Partnerships”) shall enjoy the
benefits of the protections provided by this Order. 
 SERVICE 
 2. THIS COURT ORDERS that the time for service of the Notice of Motion and the Motion Record is abridged so that this Motion is properly returnable today and hereby dispenses with further service thereof.

 APPLICATION 
 3. THIS COURT ORDERS AND
DECLARES that the terms of the Initial Order shall be operative and that the terms of the Initial Order are hereby amended and restated by the terms of this Amended and Restated and Confirmed Initial Order from and after the granting of this
Amended and Restated and Confirmed Initial Order, provided that any and all actions taken by or on behalf of the Petitioners and the Monitor pursuant to and in accordance with the terms of the Initial Order and prior to the granting of this Amended
and Restated Initial Order are hereby validated. 
  

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 PETITION HEARING 
 4. THIS COURT ORDERS that the Application filed in the Ontario Proceedings shall be and stand as the Petition filed in these proceedings 
 PLAN OF ARRANGEMENT 
 5. THIS COURT ORDERS that the Petitioners shall have the authority to file and may, subject to further
order of this Court, file with this Court a plan of compromise or arrangement (hereinafter referred to as the “Plan”) between, inter alia, the Petitioners and one or more classes of their secured and/or unsecured creditors as they
deem appropriate. 
 POSSESSION OF PROPERTY AND OPERATIONS 
 6. THIS COURT ORDERS that the Petitioners and the Partnerships shall remain in possession and control of their current and future assets, undertakings and properties of every nature and kind whatsoever, and wherever situate including
all proceeds thereof (together with the assets, undertakings and properties of the Partnerships, the “Property”). Subject to further Order of this Court, the Petitioners and the Partnerships shall continue to carry on business in a manner
consistent with the preservation of their businesses (together with the businesses of the Partnerships, the “Business”) and Property. The Petitioners shall be authorized and empowered to continue to retain and employ the employees,
consultants, agents, experts, accountants, counsel and such other persons (collectively “Assistants”) currently retained or employed by them, with liberty to retain such further Assistants as they deem reasonably necessary or desirable in
the ordinary course of business or for the carrying out of the terms of this Order. 
 7. THIS COURT ORDERS that the Petitioners and the Partnerships
are hereby authorized and directed to continue to utilize the centralized cash 

  

 3 

 
management system that was in place immediately before the Initial Order was made as described in the First Stuart Affidavit, including the bank accounts in
Canada set out in Schedule “C” hereto, or replace it with a substantially similar central cash management system (the “Cash Management System”) with the consent of Wells Fargo Financial Corporation Canada and Ableco Finance LLC
and that any present or future bank providing the Cash Management System shall be under no obligation whatsoever to inquire into the propriety, validity or legality of any transfer, payment, collection or other action taken under the Cash Management
System, or as to the use or application by the Petitioners or the Partnerships of funds transferred, paid, collected or otherwise dealt with in the Cash Management System, shall be entitled to provide the Cash Management System without any liability
in respect thereof to any Person (as hereinafter defined) other than the Petitioners and the Partnerships, pursuant to the terms of the documentation applicable to the Cash Management System, and shall be, in its capacity as provider of the Cash
Management System, an unaffected creditor under the Plan with regard to any claims or expenses it may suffer or incur in connection with the provision of the Cash Management System. 
 8. THIS COURT ORDERS that the Petitioners shall be entitled but not required to pay the following expenses, whether incurred prior to or after this Order: 
  

	 	(a)	all outstanding and future wages, salaries, employee and pension benefits, vacation pay, bonuses and expenses payable on or after the date of this Order, in each case incurred in
the ordinary course of business and consistent with existing compensation policies and arrangements; 

  

 4 

	 	(b)	the fees and disbursements of any Assistants retained or employed by the Petitioners in respect of these proceedings, at their standard rates and charges; and

  

	 	(c)	costs and expenses that are deemed necessary for the preservation of the Property and/or Business by the Petitioners and the Monitor with the approval of the DIP Lenders (as defined
herein), or upon further Order of the Court. 

 9. THIS COURT ORDERS that, except as otherwise provided to the contrary herein, the
Petitioners shall be entitled but not required to pay all reasonable expenses incurred by the Petitioners in carrying on the Business in the ordinary course, from and after the date of this Order, and in carrying out the provisions of this Order,
which expenses shall include, without limitation: 
  

	 	(a)	all expenses and capital expenditures reasonably necessary for the preservation of the Property or the Business including, without limitation, payments on account of insurance
(including directors and officers insurance), maintenance and security services; and 

  

	 	(b)	payment for goods or services actually supplied to the Petitioners following the date of this Order. 

 10. THIS COURT ORDERS that the Petitioners shall remit, in accordance with legal requirements, or pay: 
  

	 	(a)	any statutory deemed trust amounts in favour of the Crown in right of Canada or of any Province thereof or any other taxation authority which are required to be deducted from
employees’ wages, including, without limitation, amounts in respect of (i) employment insurance, (ii) Canada Pension Plan, (iii) Quebec Pension Plan, and (iv) income taxes; 

  

 5 

	 	(b)	all goods and services or other applicable sales taxes (collectively, “Sales Taxes”) required to be remitted by the Petitioners in connection with the sale of goods and
services by the Petitioners, but only where such Sales Taxes are accrued or collected after the date of this Order, or where such Sales Taxes were accrued or collected prior to the date of this Order but not required to be remitted until on or after
the date of this Order; and 

  

	 	(c)	any amount payable to the Crown in right of Canada or of any Province thereof or any political subdivision thereof or any other taxation authority in respect of municipal realty,
municipal business or other taxes, assessments or levies of any nature or kind which are entitled at law to be paid in priority to claims of secured creditors and which are attributable to or in respect of the carrying on of the Business by the
Petitioners. 

 11. THIS COURT ORDERS that until such time as a Petitioner repudiates a real property lease in accordance with paragraph
13(c) of this Order, the Petitioners shall pay all amounts constituting rent or payable as rent under real property leases (including, for greater certainty, common area maintenance charges, utilities and realty taxes and any other amounts payable
to the landlord under the lease) or as otherwise may be negotiated by the Petitioners from time to time (“Rent”), for the period commencing from and including the date of this Order, bi-weekly, in advance (but not in arrears). 

12. THIS COURT ORDERS that, except as specifically permitted herein and as contemplated by the Definitive Documents (as defined herein), the Petitioners are
hereby directed, until further Order of this Court: (a) to make no payments of principal, interest thereon or otherwise on account of amounts owing by the Petitioners to any of their creditors as of this date; (b) to grant no security

  

 6 

 
interests, trusts, liens, charges or encumbrances upon or in respect of any of their Property; and (c) to not grant credit or incur liabilities, except
in the ordinary course of the Business or, with the consent of the Petitioners, the Monitor and the DIP Lenders. 
 RESTRUCTURING 

13. THIS COURT ORDERS that the Petitioners shall, subject to such covenants as may be contained in the Definitive Documents, have the right to: 
  

	 	(a)	permanently or temporarily cease, downsize or shut down any of its Business or operations and to dispose of redundant or non-material assets not exceeding $1,500,000 in any one
transaction or $10,000,000 in the aggregate, with the written approval of the Monitor and the DIP Lenders subject to paragraph 13(c), if applicable; 

  

	 	(b)	terminate the employment of such of their employees or temporarily lay off such of their employees as the relevant Petitioner deems appropriate on such terms as may be agreed upon
between the relevant Petitioner and such employee, or failing such agreement, to deal with the consequences thereof in the Plan; 

  

	 	(c)	in accordance with paragraphs 14 and 15, vacate, abandon or quit any leased premises and/or repudiate any real property lease and any ancillary agreements relating to any leased
premises, on not less than seven (7) days’ notice in writing to the relevant landlord on such terms as may be agreed upon between the relevant Petitioner and such landlord, or failing such agreement, to deal with the consequences thereof
in the Plan; 

  

 7 

	 	(d)	repudiate such of their arrangements or agreements of any nature whatsoever, whether oral or written, as the Petitioners deem appropriate, other than the Definitive Documents, the
Pre-Petition Credit Agreement (as defined in the DIP Credit Agreement, as defined below) and all mortgages, charges, hypothecs, and security documents, guarantees and other definitive documents delivered in connection therewith, on such terms as may
be agreed upon between the relevant Petitioner and such counter-parties, or failing such agreement, to deal with the consequences thereof in the Plan; and 

  

	 	(e)	pursue all avenues of refinancing and offers for material parts of the Business or Property, in whole or part, subject to prior approval of this Court being obtained before any
material refinancing or any sale (except as permitted by subparagraph (a), above), and further provided that any such sale shall be subject to the prior consent of the DIP Lenders, 

 all of the foregoing to permit the Petitioners to proceed with an orderly restructuring or wind down of the Business. 
 14. THIS COURT ORDERS that the Petitioners shall provide each of the relevant landlords with notice of the relevant Petitioner’s intention to remove any
fixtures from any leased premises at least seven (7) days prior to the date of the intended removal. The relevant landlord shall be entitled to have a representative present in the leased premises to observe such removal and, if the landlord
disputes the Petitioner’s entitlement to remove any such fixture under the provisions of the lease, such fixture shall remain on the premises and shall be dealt with as agreed between any applicable secured creditors, such landlord and the
relevant Petitioner, or by further Order of this Court upon application by 

  

 8 

 
the relevant Petitioner on at least two (2) days’ notice to such landlord and any such secured creditors. If a Petitioner repudiates the lease
governing such leased premises in accordance with paragraph 13(c) of this Order, it shall not be required to pay Rent under such lease pending resolution of any such dispute, and the repudiation of the lease shall be without prejudice to the
Petitioner’s claims to the fixtures in dispute. 
 15. THIS COURT ORDERS that if a lease is repudiated by a Petitioner in accordance with
paragraph 13(c) of this Order, then: (a) during the notice period prior to the effective time of the repudiation, the landlord may show the affected leased premises to prospective tenants during normal business hours, on giving the Petitioner
and the Monitor 24 hours’ prior written notice; and (b) at the effective time of the repudiation, the relevant landlord shall be entitled to take possession of any such leased premises without waiver of or prejudice to any claims or rights
such landlord may have against the Petitioner in respect of such lease or leased premises and such landlord shall be entitled to notify the Petitioner of the basis on which it is taking possession and to gain possession of and re-lease such leased
premises to any third party or parties on such terms as such landlord considers advisable, provided that nothing herein shall relieve such landlord of its obligation to mitigate any damages claimed in connection therewith. 
 16. THIS COURT ORDERS that, subject to the other provisions of this Order (including the payment of Rent as herein provided), any further Order of this Court and
the Definitive Documents, the Petitioners shall be permitted to dispose of any or all of the Property located (or formerly located) at such leased premises without any interference of any kind from landlords (notwithstanding the terms of any leases)
and, for greater certainty, the Petitioners shall have the right to realize upon the Property and other assets in such manner and at such locations, including leased premises, as it deems suitable or desirable for the purpose of maximizing the
proceeds and recovery therefrom. 
  

 9 

 NO PROCEEDINGS AGAINST THE PETITIONERS OR THE PROPERTY 
 17. THIS COURT ORDERS that until and including January 15, 2008, or such later date as this Court may order (the “Stay Period”), no proceeding or
enforcement process in any court or tribunal (each, a “Proceeding”) shall be commenced or continued against or in respect of the Petitioners, the Partnerships or the Monitor, or affecting the Business or the Property except with the
written consent of the applicable Petitioner or Partnership, the Monitor and the DIP Lenders, or with leave of this Court, and any and all Proceedings currently under way against or in respect of the Petitioners, the Partnerships or affecting the
Business or the Property are hereby stayed and suspended pending further Order of this Court. 
 NO EXERCISE OF RIGHTS OR REMEDIES 

18. THIS COURT ORDERS that during the Stay Period, all rights and remedies of any individual, firm, corporation, governmental body or agency, the Crown in right
of Canada or any province or any other entities (all of the foregoing, collectively being “Persons” and each being a “Person”) against or in respect of the Petitioners, the Partnerships or the Monitor, or affecting the Business
or the Property, are hereby stayed and suspended except with the written consent of the applicable Petitioner or Partnership, the Monitor and the DIP Lenders, or leave of this Court, provided that nothing in this Order shall: (a) empower the
Petitioners and the Partnerships to carry on any business which the Petitioners and the Partnerships are not lawfully entitled to carry on; (b) exempt the Petitioners and the Partnerships from compliance with statutory or regulatory provisions
relating to health, safety or the environment; (c) prevent the filing of any registration to preserve or perfect a security interest; or (d) prevent the registration of a claim for lien. 
  

 10 

 NO INTERFERENCE WITH RIGHTS 
 19. THIS COURT ORDERS that during the Stay Period, no Person shall discontinue, fail to honour, alter, interfere with, repudiate, terminate or cease to perform any right, renewal right, contract, agreement,
licence, permit, authorization, franchise or right of way in favour of or held by the Petitioners or the Partnerships, except with the written consent of the applicable Petitioner or Partnership, the Monitor and the DIP Lenders, or leave of this
Court. 
 CONTINUATION OF SERVICES 
 20. THIS
COURT ORDERS that during the Stay Period, all Persons having oral or written agreements with a Petitioner or a Partnership or statutory or regulatory mandates for the supply of goods and/or services, including without limitation all computer
software, communication and other data services, centralized banking services, payroll services, insurance, transportation, utility or other services to the Business, a Petitioner or a Partnership, are hereby restrained until further Order of this
Court from discontinuing, altering, interfering with or terminating the supply of such goods or services as may be required by the Petitioners or the Partnerships, and that the Petitioners and the Partnerships shall be entitled to the continued use
of their current premises, telephone numbers, facsimile numbers, internet addresses and domain names, provided in each case that the normal prices or charges for all such goods or services received after the date of this Order are paid by the
Petitioners and the Partnerships in accordance with normal payment practices of the Petitioners and the Partnerships or such other practices as may be agreed upon by the supplier or service provider and each of the Petitioners or the Partnerships
and the Monitor, or as may be ordered by this Court. 
  

 11 

 NON-DEROGATION OF RIGHTS 
 21. THIS COURT ORDERS that, notwithstanding anything else contained herein, no creditor of the Petitioners shall be under any obligation after the making of this Order to advance or re-advance any monies or
otherwise extend any credit to the Petitioners. Nothing in this Order shall derogate from the rights conferred and obligations imposed by the CCAA. 
 PROCEEDINGS AGAINST DIRECTORS AND OFFICERS 
 22. THIS COURT ORDERS that during the Stay Period, and except as permitted by
subsection 11.5(2) of the CCAA, no Proceeding may be commenced or continued against any of the former, current or future directors or officers of the Petitioners with respect to any claim against the directors or officers that arose before the date
hereof and that relates to any obligations of the Petitioners whereby the directors or officers are alleged under any law to be liable in their capacity as directors or officers for the payment or performance of such obligations, until a compromise
or arrangement in respect of the Petitioners, if one is filed, is sanctioned by this Court or is refused by the creditors of the Petitioners or this Court. 
 DIRECTORS’ AND OFFICERS’ INDEMNIFICATION AND CHARGE 
 23. THIS COURT ORDERS that the Petitioners shall indemnify
their directors and officers from all claims, costs, charges and expenses relating to the failure of the Petitioners, after the date hereof, to make payments of the nature referred to in subparagraphs 8(a), 10(a), 10(b) and 10(c) of this Order which
they sustain or incur by reason of or in relation to their respective capacities as directors and/or officers of the Petitioners except to the extent that, with respect to any officer or director, such officer or director has actively participated
in the breach of any related fiduciary duties or has been grossly negligent or guilty of wilful misconduct. 
  

 12 

 24. THIS COURT ORDERS that the directors and officers of the Petitioners shall be entitled to the benefit of and
are hereby granted a charge (the “Directors’ Charge”) on the Property, which charge shall not exceed an aggregate amount of CDN$13,000,000, as security for the indemnity provided in paragraph 23 of this Order. The Directors’
Charge shall attach to all Property including any lease, license, occupation permit, or other contract notwithstanding any requirement for the consent of the lessor, licensor, other party to such contract, or any other Person, and the necessity for
such consent is hereby dispensed with, and the absence of any such consent shall not constitute a breach of or default under any such lease, license, occupation permit, statute or other contract and shall have the priority set out in paragraphs 43
and 45 herein. 
 25. THIS COURT ORDERS that, notwithstanding any language in any applicable insurance policy to the contrary, (a) no insurer
shall be entitled to be subrogated to or claim the benefit of the Directors’ Charge, and (b) the Petitioners’ directors and officers shall only be entitled to the benefit of the Directors’ Charge to the extent that they do not
have coverage under any directors’ and officers’ insurance policy, or to the extent that such coverage is insufficient to pay amounts indemnified in accordance with paragraph 23 of this Order. 
 APPOINTMENT OF MONITOR 
 26. THIS COURT CONFIRMS AND
ORDERS that PWC is appointed pursuant to the CCAA as the Monitor, an officer of this Court, to monitor the Property and the Petitioners’ conduct of the Business with the powers and obligations set out in the CCAA and set forth herein and
that the Petitioners and their shareholders, officers, directors, and Assistants shall advise the Monitor of all material steps taken by the Petitioners pursuant to this Order, and shall co-operate fully with the Monitor in the exercise of its
powers and discharge of its obligations. 
  

 13 

 27. THIS COURT ORDERS that the Monitor, in addition to its prescribed rights and obligations under the CCAA, is
hereby directed and empowered to: 
  

	 	(a)	monitor the Petitioners’ and Partnerships’ receipts and disbursements; 

  

	 	(b)	report to this Court at such times and intervals as the Monitor may deem appropriate with respect to matters relating to the Petitioners, the Partnerships, the Property, the
Business, and such other matters as may be relevant to the proceedings herein; 

  

	 	(c)	assist the Petitioners and the Partnerships, to the extent required by the Petitioners and the Partnerships, in their dissemination to the DIP Lenders and their counsel on a weekly
basis of financial and other information as agreed to between the Petitioners, the Partnerships, the Monitor and the DIP Lenders or as required in accordance with the Definitive Documents; 

  

	 	(d)	advise the Petitioners in their preparation of the Petitioners’ cash flow statements and reporting required by the DIP Lenders, which information shall be reviewed with the
Monitor and delivered to the DIP Lenders and their counsel on a periodic basis, but not less than weekly, or as otherwise agreed to by the DIP Lenders; 

  

	 	(e)	advise the Petitioners in their development of the Plan and any amendments to the Plan; 

  

	 	(f)	assist the Petitioners with the conduct of any sale process to sell the Property and the Business or any part thereof to the extent requested by the Petitioners;

  

 14 

	 	(g)	assist the Petitioners, to the extent required by the Petitioners, with the holding and administering of creditors’ or shareholders’ meetings for voting on the Plan;

  

	 	(h)	have full and complete access to the books, records and management, employees and advisors of the Petitioners and to the Business and the Property to the extent required to perform
its duties arising under this Order; 

  

	 	(i)	be at liberty to engage independent legal counsel or such other persons as the Monitor deems necessary or advisable respecting the exercise of its powers and performance of its
obligations under this Order; 

  

	 	(j)	consider, and if deemed advisable by the Monitor, prepare a report and assessment on the Plan; and 

  

	 	(k)	perform such other duties as are required by this Order or by this Court from time to time. 

 28. THIS COURT ORDERS that the Monitor shall not take possession of the Property and shall take no part whatsoever in the management or supervision of the management of the Business and shall not, by fulfilling
its obligations hereunder, be deemed to have taken or maintained possession or control of the Business or Property, or any part thereof or be deemed to have been or become an employer of any of the Petitioners’ employees. 
 29. THIS COURT ORDERS that nothing herein contained shall require the Monitor to occupy or to take control, care, charge, possession or management (separately
and/or collectively, “Possession”) of any of the Property that might be environmentally contaminated, might be a pollutant or a contaminant, or might cause or contribute to a spill, discharge, release or deposit of a substance 

  

 15 

 
contrary to any federal, provincial or other law respecting the protection, conservation, enhancement, remediation or rehabilitation of the environment or
relating to the disposal of waste or other contamination including, without limitation, the Canadian Environmental Protection Act, 1999, the Ontario Environmental Protection Act, the Canadian Fisheries Act, the British Columbia
Forest and Range Practices Act, the British Columbia Environmental Management Act, the Ontario Water Resources Act, the British Columbia Workers Compensation Act or the Ontario Occupational Health and Safety Act
and regulations thereunder (the “Environmental Legislation”), provided however that nothing herein shall exempt the Monitor from any duty to report or make disclosure imposed by applicable Environmental Legislation. The Monitor shall not,
as a result of this Order or anything done in pursuance of the Monitor’s duties and powers under this Order, be deemed to be in Possession of any of the Property within the meaning of any Environmental Legislation, unless it is actually in
possession. 
 30. THIS COURT ORDERS that the Monitor shall provide any creditor of a Petitioner and the DIP Lenders with information provided by the
Petitioner in response to reasonable requests for information made in writing by such creditor addressed to the Monitor. The Monitor shall not have any responsibility or liability with respect to the information disseminated by it pursuant to this
paragraph. In the case of information that the Monitor has been advised by a Petitioner is confidential, the Monitor shall not provide such information to creditors unless otherwise directed by this Court or on such terms as the Monitor and the
Petitioners may agree. 
 31. THIS COURT ORDERS that, in addition to the rights and protections afforded the Monitor under the CCAA or as an officer
of this Court, the Monitor shall incur no liability or obligation as a result of its appointment or the carrying out of the provisions of this Order, save and except for any gross negligence or wilful misconduct on its part. Nothing in this Order
shall derogate from the 

  

 16 

 
rights and protections afforded the Monitor by the CCAA or any applicable legislation. No action or other proceeding shall be commenced against the Monitor
as a result of, or relating in any way to, its appointment as Monitor, the fulfillment of its duties as Monitor or the carrying out of any Order of this Court, except with leave of this Court. 
 32. THIS COURT ORDERS that the Monitor, counsel to the Monitor and Canadian counsel to the Petitioners shall be paid their reasonable fees and disbursements, in
each case at their standard rates and charges, by the Petitioners as part of the costs of these proceedings. The Petitioners are hereby authorized and directed to pay the accounts of the Monitor, counsel for the Monitor and Canadian counsel for the
Petitioners on a weekly basis. 
 33. THIS COURT ORDERS that the Monitor, counsel to the Monitor and the Petitioners’ Canadian counsel shall be
entitled to the benefit of and are hereby granted a charge (the “Administration Charge”) on the Property, which charge shall not exceed an aggregate amount of CDN$3,000,000, as security for their professional fees and disbursements
incurred at the standard rates and charges of the Monitor and such counsel, both before and after the making of this Order in respect of these proceedings. The Administration Charge shall attach to all Property including any lease, license,
occupation permit, or other contract notwithstanding any requirement for the consent of the lessor, licensor, other party to such contract, or any other Person, and the necessity for such consent is hereby dispensed with, and the absence of any such
consent shall not constitute a breach of or default under any such lease, license, occupation permit, statute or other contract and shall have the priority set out in paragraphs 43 and 45 hereof. 
 34. THIS COURT ORDERS that the Monitor need not file security with this Court for the due and proper exercise and performance of its powers and duties as Monitor.

  

 17 

 35. THIS COURT ORDERS that the Monitor shall be at liberty to post any report relating to the subject matter of
this proceeding on the Monitor’s web site at www.pwc.com/car-popetalbot in lieu of mailing such reports to creditors of the Petitioner or to any other interested parties. 
 36. THIS COURT ORDERS that the Monitor and its legal counsel shall pass their accounts from time to time, and for this purpose the accounts of the Monitor and its legal counsel are hereby referred to a judge of
the British Columbia Supreme Court and may be heard on a summary basis. 
 DIP FINANCING 
 37. THIS COURT ORDERS that the Petitioners are hereby authorized and empowered to obtain and borrow under the Debtor-in-Possession Credit and Security Agreement
(the “DIP Credit Agreement”) among Pope & Talbot Inc., Pope & Talbot Ltd., the guarantors thereunder, and Wells Fargo Financial Corporation Canada, Ableco Finance LLC and such other Lenders as may be party to such
agreement from time to time (together the “DIP Lenders”) dated as of November 19, 2007, in the principal amount of up to US$89,062,301.57 in order to finance the Petitioners’ working capital requirements and other general
corporate purposes and capital expenditures as permitted by the terms of this Order and the DIP Credit Agreement. Capitalized terms used in paragraphs 37 to 42 of this Order and not otherwise defined in the Order have the meaning given to them in
the DIP Credit Agreement. 
 38. THIS COURT ORDERS that the Petitioners are hereby authorized and empowered to execute and deliver such credit
agreements, mortgages, charges, hypothecs and security documents, guarantees and other definitive documents as are contemplated by the DIP Credit Agreement or as may be reasonably required by the DIP Lenders pursuant to the terms thereof
(collectively, along with the DIP Credit Agreement, the “Definitive Documents”), and the Petitioners 

  

 18 

 
are hereby authorized to comply with all covenants and pay and perform all of their indebtedness, interest, fees, liabilities and obligations to the DIP
Lenders under and pursuant to the Definitive Documents as and when the same become due and are to be performed or complied with, including, without limiting the generality of the foregoing, the payment of all Pre-Petition Revolving Loan Obligations
in accordance with the terms of the DIP Credit Agreement and the other Definitive Documents. 
 39. THIS COURT ORDERS that the DIP Lenders shall be
entitled to the benefit of and are hereby granted a charge (the “DIP Lenders’ Charge”) on the Property to secure all Obligations under the Definitive Documents which charge shall not exceed the aggregate amount owed to the DIP Lenders
under the DIP Credit Agreement. The DIP Lenders’ Charge shall attach to all Property including any lease, license, occupation permit, or other contract notwithstanding any requirement for the consent of any lessor, licensor, or other party to
any such contract, or any other Person, and the necessity for such consent is hereby dispensed with, and the absence of any such consent shall not constitute a breach of or default under any such lease, license, occupation permit, statute or other
contract. The DIP Lenders’ Charge shall, subject to the terms and conditions of the DIP Credit Agreement provisions concerning validly perfected Permitted Priority Liens, have the priority set out in paragraphs 43 and 45. 
 40. THIS COURT ORDERS that, notwithstanding any other provision of this Order: 
  

	 	(a)	the DIP Lenders may take such steps from time to time as they may deem necessary or appropriate to file, register, record or perfect the DIP Lenders’ Charge or any of the
Definitive Documents; 

  

	 	(b)	 upon the occurrence of an event of default under the Definitive Documents or the DIP Lenders’ Charge, the DIP Lenders, upon 

  

 19 

	 	 
three (3) business days notice to the Petitioners, the Partnerships and the Monitor, may exercise any and all of their rights and remedies against the
Petitioners, the Partnerships or the Property under or pursuant to the Definitive Documents and the DIP Lenders’ Charge, including without limitation, to exercise all rights and remedies of a secured party under the applicable personal property
security legislation, to apply to this Court for the appointment of a receiver, receiver and manager or interim receiver, or for a bankruptcy order against the Petitioners or the Partnerships and for the appointment of a trustee in bankruptcy of a
Petitioner or Partnership, and immediately upon the occurrence of an event of default under the terms of the Definitive Documents, the DIP Lenders shall be entitled to cease making advances to the Petitioners, make demand, accelerate payment and
give other notices, to set off and/or consolidate any amounts owing by the DIP Lenders to the Petitioners or Partnerships against the obligations of the Petitioners to the DIP Lenders under the Definitive Documents, to seize and retain proceeds from
the sale of the Property and the cash flow of the Petitioners or Partnerships to repay amounts owing to the DIP Lenders in accordance with the Definitive Documents and the DIP Lenders’ Charge, but subject to the priorities as set out in
paragraph 43 of this Order; and 

  

	 	(c)	the foregoing rights and remedies of the DIP Lenders shall be enforceable against any trustee in bankruptcy, interim receiver, receiver or receiver and manager of the Petitioners,
or the Partnerships or the Property. 

 41. THIS COURT ORDERS AND DECLARES that (except as provided in paragraph 40(b)), the DIP Lenders
shall be treated as unaffected by any stay 

  

 20 

 
created in these proceedings and the DIP Lenders shall be treated as unaffected in the Plan, or any proposal filed by the Petitioners under the Bankruptcy
and Insolvency Act of Canada (the “BIA”), with respect to any advances made under the Definitive Documents. 
 42. THIS COURT ORDERS
that notwithstanding anything to the contrary herein but without prejudice to the Administration Charge and the Directors Charge, the Petitioners shall not exceed the line item expenditures in the Initial Budget as provided in the Definitive
Documents. 
 VALIDITY AND PRIORITY OF CHARGES CREATED BY THIS ORDER 
 43. THIS COURT ORDERS that the priorities of the Directors’ Charge, the Administration Charge, and the DIP Lenders’ Charge (together with the security granted by the Definitive Documents) shall be as
follows: 
  

	 	(i)	First — the Administration Charge; 

  

	 	(ii)	Second — the Directors’ Charge; and 

  

	 	(iii)	Third — the DIP Lenders’ Charge. 

 Any distributions in respect
of the DIP Lenders’ Charge as amongst the beneficiaries thereto shall be governed by the DIP Credit Agreement. 
 44. THIS COURT ORDERS that the
filing, registration or perfection of the Directors’ Charge, the Administration Charge or the DIP Lenders’ Charge (collectively, the “Charges”) shall not be required, and that the Charges shall be valid and enforceable for all
purposes, including as against any right, title or interest filed, registered, recorded or perfected subsequent to the Charges coming into existence, notwithstanding any such failure to file, register, record or perfect. 
  

 21 

 45. THIS COURT ORDERS that each of the Charges shall constitute a charge on the Property and the Charges shall
rank in priority to all other security interests, trusts, liens, charges and encumbrances, statutory or otherwise (collectively, “Encumbrances”) in favour of any Person save and except validly perfected Permitted Priority Liens as provided
in the DIP Credit Agreement. The security granted by the Definitive Documents charging the Property shall have the same priority as the DIP Lenders’ Charge granted herein. 
 46. THIS COURT ORDERS that except as otherwise expressly provided for herein, until such time as all Obligations, Pre-Petition Revolving Loan Obligations and Pre-Petition Term Loan Obligations are indefeasibly
paid in full in cash and the Commitments are terminated in accordance with the DIP Credit Agreement, the Petitioners shall not grant any Encumbrances over any Property that rank in priority to, or pari passu with, any of the Charges, unless the
Petitioners also obtain the prior written consent of the Monitor, the DIP Lenders and the beneficiaries of the Directors’ Charge and the Administration Charge, or further Order of this Court. 
 47. THIS COURT ORDERS that the DIP Credit Agreement, the Definitive Documents and the Charges shall not be rendered invalid or unenforceable and the rights and
remedies of the chargees entitled to the benefit of the Charges (collectively, the “Chargees”) and/or the DIP Lenders thereunder shall not otherwise be limited or impaired in any way by: (a) the pendency of these proceedings and the
declarations of insolvency made herein; (b) any application(s) for bankruptcy order(s) issued pursuant to the BIA, or any bankruptcy order made pursuant to such applications; (c) the filing of any assignments for the general benefit of
creditors made pursuant to the BIA; (d) the provisions of any federal or provincial statutes; or (e) any negative covenants, prohibitions or other similar provisions with respect to borrowings, incurring debt or the creation of
Encumbrances, contained in any existing loan documents, 

  

 22 

 
lease, sublease, offer to lease or other agreement (collectively, an “Agreement”) which binds the Petitioners, and notwithstanding any provision to
the contrary in any Agreement: 
  

	 	(a)	neither the creation of the Charges nor the execution, delivery, perfection, registration or performance of the DIP Credit Agreement or the Definitive Documents shall create or be
deemed to constitute a breach by the Petitioners of any Agreement to which they are a party; 

  

	 	(b)	none of the Chargees shall have any liability to any Person whatsoever as a result of any breach of any Agreement caused by or resulting from the Petitioners entering into the DIP
Credit Agreement, the creation of the Charges, or the execution, delivery or performance of the Definitive Documents; and 

  

	 	(c)	the payments made by the Petitioners pursuant to this Order, the DIP Credit Agreement or the Definitive Documents, and the granting of the Charges, do not and will not constitute
fraudulent preferences, fraudulent conveyances, oppressive conduct, settlements or other challengeable, voidable or reviewable transactions under any applicable law. 

 48. THIS COURT ORDERS that in the event of any inconsistency between the terms and conditions of the Definitive Documents and of this Order, the provisions of this Order shall control and govern. 
 SERVICE AND NOTICE 
 49. THIS COURT ORDERS that the
Petitioner is at liberty to serve this Order and any other pleadings in this proceeding on any creditor or shareholder of the Petitioner, or any other interested party, other than employees and creditors to 

  

 23 

 
whom the Petitioner owes less than $5000.00. The Monitor is relieved of its obligation under Section 11(5) of the CCAA to provide similar notice,
other than to supervise this process. 
 50. THIS COURT ORDERS that counsel of record who provide an email address in an Appearance filed in these
proceedings shall be deemed to have consented to delivery of documents by any party by email unless objection is made before or at the time of the hearing of the Petition. 
 51. THIS COURT ORDERS that the Petitioners and the Monitor are permitted, but shall not be required, to serve the documents referred to in paragraph 49 of this Order, any other materials and orders in
these proceedings, and notices or other correspondence, by forwarding true copies thereof by prepaid ordinary mail, courier, personal delivery or fax transmission to the Petitioners’ creditors at their respective addresses as last shown on the
records of the Petitioners, and any such service or notice by courier, personal delivery or fax transmission shall be deemed to be received on the next business day following the date of forwarding thereof, or if sent by ordinary mail, on the third
business day after mailing. 
 GENERAL 
 52.
THIS COURT ORDERS that notwithstanding paragraphs 49 and 51 of this Order, service of this Order shall be made on the federal and British Columbia Crowns in accordance with the Crown Liability and Proceedings Act, R.S.C. 1985, c. C-50,
and regulations thereto, in respect of the federal Crown, and the Crown Proceeding Act, R.S.B.C. 1996, c. 89, in respect of the British Columbia Crown. 
  

 24 

 53. THIS COURT ORDERS that nothing in this Order shall prevent the Monitor from acting as an interim receiver, a
receiver, a receiver and manager, or a trustee in bankruptcy of any of the Petitioners, the Business or the Property. 
 54. THIS COURT ORDERS that
any reference herein to the exercise of the rights of the DIP Lenders under or pursuant to the DIP Lenders’ Charge or the provision of any consents of the DIP Lenders as required by this Order, shall be subject to the voting agreements among
the Agents and DIP Lenders under the DIP Credit Agreement and the Definitive Documents, as such voting agreements may be modified or amended from time to time in accordance with the provisions of the DIP Credit Agreement and the Definitive
Documents. 
 55. THIS COURT HEREBY REQUESTS the aid and recognition of any court, tribunal, regulatory or administrative body having jurisdiction in
Canada or in the United States, and in particular the United States Bankruptcy Court, District of Delaware, to give effect to this Order and to assist the Petitioners, the Monitor and their respective agents in carrying out the terms of this Order.
All courts, tribunals, regulatory and administrative bodies are hereby respectfully requested to make such orders and to provide such assistance to the Petitioners and to the Monitor, as an officer of this Court, as may be necessary or desirable to
give effect to this Order, to grant representative status to the Monitor in any foreign proceeding, or to assist the Petitioners and the Monitor and their respective agents in carrying out the terms of this Order. 
 56. THIS COURT ORDERS that each of the Petitioners and the Monitor be at liberty and is hereby authorized and empowered to apply to any court, tribunal,
regulatory or administrative body, wherever located, for the recognition of this Order and for assistance in carrying out the terms of this Order. 
 57.
THIS COURT ORDERS that this Order and any other Order in this proceeding shall have full force and effect in all provinces and territories in Canada, outside Canada and against all Persons against whom they may be enforceable. 
  

 25 

 58. THIS COURT ORDERS that no order shall be made varying, rescinding or otherwise affecting the provisions of
this Order with respect to the Definitive Documents or the DIP Lenders’ Charge unless notice of a motion for such order is served on the Petitioners, the Monitor and the DIP Lenders returnable no later than November 28, 2007. 

59. THIS COURT DECLARES that, pursuant to Section 7(3)(c) of the Personal Information Protection and Electronic Documents Act, S.C. 2000, c. 5 and
Section 18(1)(o) of the Personal Information Protection Act, S.B.C. 2003, c. 63, and any regulations promulgated under authority of either Act, as applicable (the “Relevant Enactment”), the Petitioners are permitted, in the
course of these proceedings, to disclose personal information of identifiable individuals in its possession or control to stakeholders, its advisors, prospective investors, financiers, buyers or strategic partners (collectively, “Third
Parties”), but only to the extent desirable or required to negotiate and complete the Restructuring or to prepare and implement the Plan or transactions for that purpose; provided that the Third Parties to whom such personal information is
disclosed enter into confidentiality agreements with the applicable Petitioner binding them in the same manner and to the same extent with respect to the collection, use and disclosure of that information as if they were an organization as defined
under the Relevant Enactment, and limiting the use of such information to the extent desirable or required to negotiate and complete the Restructuring or to prepare and implement the Plan or transactions for that purpose, and attorning to the
jurisdiction of this Court for the purposes of that agreement. Upon the completion of the use of personal information for the limited purposes set out herein, the Third Parties shall return the personal information to the Petitioner or destroy it.
If the Third Parties acquire personal information as part of the 

  

 26 

 
Restructuring or the preparation and implementation of the Plan or transactions in furtherance thereof, such Third Parties may, subject to this paragraph and
any Relevant Enactment, continue to use the personal information in a manner which is in all respects identical to the prior use thereof by the Petitioners. 
 60. THIS COURT FURTHER ORDERS that the Petitioners are hereby at liberty to apply for such further interim or interlocutory relief as to it may be advisable within the time for the filing of an Appearance by the creditors of the
Petitioners in this proceeding. 
 61. THIS COURT FURTHER ORDERS that any interested Person or creditor of a Petitioner may file an Appearance in this
proceeding and the time limited for filing such an Appearance for such person or creditor of such Petitioner outside of British Columbia shall be 14 days from the date of service upon such Person or creditor. 
 62. THIS COURT FURTHER ORDERS that liberty is reserved to any interested person or party to apply to this Court on four (4) clear days’ notice to the
Petitioners and such persons who have filed Appearances for such further Order of this Court or for variation of this Order or otherwise as may be advised. 
 63. THIS COURT FURTHER ORDERS that short leave is hereby granted to allow the hearing of an application on four (4) clear days’ notice after delivery of the Notice of Motion, affidavits in support and Notice of Hearing,
subject to the Court in its discretion further abridging or extending the time for service. Outlines, Responses and Chambers Records shall not be required to be exchanged by counsel or filed in this proceeding. 
 64. THIS COURT FURTHER ORDERS that endorsement of this Order by counsel appearing on this application is hereby dispensed with. 
  

 27 

 65. THIS COURT ORDERS that this Order and all of its provisions are effective as of 12:01 a.m. local
Vancouver time, the date of this Order. 
  

	
	BY THE COURT
	
	  

	DISTRICT REGISTRAR

  

	
	 APPROVED AS TO FORM:

	
	  

	 Counsel for the Petitioners

  

 28 

 SCHEDULE “A” 
 ADDITIONAL PETITIONERS 
 Pope & Talbot, Inc. 
 MacKenzie Pulp Land Ltd. 
 P&T Funding
Ltd. 
 Penn Timber, Inc. 
 Pope & Talbot Lumber Sales, Inc. 
 Pope & Talbot Pulp Sales U.S., Inc. 
 Pope & Talbot Relocation Services, Inc. 
 P&T Power Company 
 P&T Finance Three LLC 
  

 29 

 SCHEDULE “B” 
 PARTNERSHIPS 
 P&T Factoring Limited Partnership 
 P&T LFP Investment Limited Partnership 
 Pope & Talbot Spearfish Limited Partnership 
 P&T Finance One Limited Partnership 
 P&T Finance Two Limited Partnership 
  

 30 

 SCHEDULE “C” 
 LIST OF BANK ACCOUNTS HELD IN CANADA 
  

									
	 Account Held By
	  	 Bank
	  	 Address
	  	 Account Type
	  	Account No.
	Pope & Talbot, Inc.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	General	  	94000363948
					
	Pope & Talbot, Inc.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	General	  	94007315545
					
	Pope & Talbot Pulp Sales U.S., Inc.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	General	  	94005248495
					
	Pope & Talbot Ltd.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	Deposit	  	94000349619
					
	Pope & Talbot Ltd.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	Main Disbursement	  	94000349627

  

 31 

									
	 Account Held By
	  	 Bank
	  	 Address
	  	 Account Type
	  	Account No.
	Pope & Talbot Ltd.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	Payroll	  	94000349724
					
	Pope & Talbot Ltd.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	FIA Arrow Timber	  	94005217425
					
	Pope & Talbot Ltd.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	FIA Boundry Timber	  	94005217433
					
	Pope & Talbot Ltd.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	FIA FSJ Timber	  	94005274968
					
	Pope & Talbot Ltd.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	Concentration	  	94005277355
					
	Pope & Talbot Ltd.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	Concentration	  	94007328159

  

 32 

									
	 Account Held By
	  	 Bank
	  	 Address
	  	 Account Type
	  	Account No.
	Pope & Talbot Ltd.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	Deposit	  	94007311078
					
	P&T Funding Ltd.	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 77 King Street West, 18th Fl.
 Toronto, Ontario M5K 1A2
	  	General	  	94000362755
					
	P&T Finance One Limited Partnership	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	General	  	94005241504
					
	P&T Finance Two Limited Partnership	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	General	  	94005241512
					
	P&T Factoring Limited Partnership	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	General	  	94005249092
					
	Penn Timber	  	The Toronto-Dominion Bank	  	 The Toronto-Dominion Bank
 700 West Georgia Street, Suite
1700 Vancouver, BC V7Y 1B6
	  	General	  	94007323416

  

 33 

 EXHIBIT I 
 FORM OF BORROWING BASE CERTIFICATE 
 Wells Fargo Financial Corporation Canada 
 55 Standish Court, Suite 400 
 Mississauga, Ontario L5R 4J4 
 Attention: Nick Scarfo 
 The undersigned, Pope &
Talbot, Inc., a Delaware corporation, as a debtor and debtor-in-possession under the United States Bankruptcy Code (the “Parent”), pursuant to Section 6.11 of that certain Debtor-in-Possession Credit and Security
Agreement, dated as of November     , 2007 (such agreement, as amended, restated, supplemented, or otherwise modified from time to time, including any replacement agreement therefor, being hereinafter referred to as the
“Credit Agreement”), entered into among the Parent, Pope & Talbot Ltd., a Canadian corporation, as a debtor and debtor-in-possession under the United States Bankruptcy Code and as a debtor company under the Companies’
Creditors Arrangement Act (Canada) (the “Borrower”), the Guarantors set forth on the signature pages thereto, the several lenders from time to time party thereto (the “Lenders”), Wells Fargo Financial
Corporation Canada, a Nova Scotia unlimited liability company, as administrative agent (in such capacity, together with its permitted successors and assigns, the “Administrative Agent”), Ableco Finance LLC, as Collateral Agent (in
such capacity, together with its permitted successors and assigns, the “Collateral Agent”), and Ableco Finance LLC, as Term Loan B Agent (in such capacity, together with its permitted successors and assigns, the “Term Loan B
Agent”), hereby certifies to the Administrative Agent that the following items, calculated in accordance with the terms and definitions set forth in the Credit Agreement for such items, are true and correct, and that the Borrower is in
compliance with and, after giving effect to any currently requested Revolving Credit Loans, Letters of Credit or Bank Products, will be in compliance with, the terms, conditions, and provisions of the Credit Agreement. 
 All initially capitalized terms used in this Borrowing Base Certificate have the meanings set forth in the Credit Agreement unless specifically defined
herein. 
 [Remainder of page intentionally left blank.] 

 Effective Date of Calculation:
                             
 A. Borrowing Base Calculation 
  

									
	1.	 	Eligible Accounts	 		 	
	a.	 	85% of Eligible Domestic Accounts1	 	$            	 	
					
	b.	 	(i)	 	the lesser of $35,000,000 or the limit of liability of Eligible Foreign Accounts Credit Insurance	 	$            	 	
					
		 	(ii)	 	75% of Eligible Foreign Accounts2	 	$            	 	
					
		 	(iii)	 	the amount of the deductible under Eligible Foreign Account Credit Insurance	 	$            	 	
					
		 	(iv)	 	Item 1.b.(ii) minus Item 1.b.(iii)	 	$            	 	
					
		 	(v)	 	the lesser of Items 1.b.(i) and 1.b.(iv)	 	$            	 	
				
	c.	 	the amount, if any, of the Dilution Reserve	 	$            	 	
				
	d.	 	Item 1.a. plus Item 1.b.(v) minus Item 1.c.	 		 	$            
				
	2.	 	Eligible Inventory	 		 	
				
	a.	 	$37,500,000	 	$            	 	
				
	b.	 	50% of the value of Eligible Inventory3	 	$            	 	
					
	c.	 	(i)	 	75% times the Net Liquidation Percentage	 	$            	 	

	 1
	 See Annex A 

	 2
	 See Annex B 

	 3
	 See Annex C 

  

 2 

									
		 	(ii)	 	the book value of the Borrowing Base Parties’ Inventory	 	$            	 	
					
		 	(iii)	 	Item 2.c.(i) times Item 2.c.(ii)	 	$            	 	
				
	d.	 	75% of Item 1.d.	 	$            	 	
				
	e.	 	The lowest of Items 2.a., 2.b., 2.c.(iii) and 2.d.	 		 	$            
				
	3.	 	Reserves (without duplication)	 		 	
				
	a.	 	The Carve-Out Expense Reserve	 	$            	 	
				
	b.	 	the sum of the aggregate amount of reserves, if any, established by the Administrative Agent in accordance with Section 2.5(c) of the Credit Agreement	 	$            	 	
				
	c.	 	Sum of Items 3.a and 3.b.	 		 	$            
				
	4.	 	Borrowing Base (Item 1.d. plus Item 2.e. minus Item 3.d.):	 		 	$            
				
	5.	 	Availability Calculation	 		 	
					
	a.	 	(i)	 	Maximum Revolving Credit Cash Amount	 	$            	 	
					
		 	(ii)	 	Projected outstanding principal balance of Revolving Credit Loans (as set forth in the Initial Budget) for such week	 	$            	 	
					
		 	(iii)	 	Budget Carryover Amount	 	$            	 	
					
		 	(iv)	 	Lesser of Item 5.a.(i) and the sum of Item 5.a.(ii) and 5.a.(iii)	 	$            	 	
					
		 	(v)	 	outstanding Swing Line Loans	 	$            	 	

  

 3 

									
		 	(vi)	 	outstanding Revolving Credit Loans (including any Reinstated Pre-Petition Revolving Loan Obligations)	 	$            	 	
					
		 	(vii)	 	the Net Pre-Petition Revolving Loan Amount then outstanding	 	$            	 	
					
		 	(viii)	 	Item 5.a.(iv) minus Item 5.a.(v) minus Item 5.a(.vi) minus Item 5.a.(vii)	 	$            	 	
					
	b.	 	(i)	 	Total Revolving Credit Commitments	 	$            	 	
					
		 	(ii)	 	Letter of Credit Usage	 	$            	 	
					
		 	(iii)	 	outstanding Swing Line Loans	 	$            	 	
					
		 	(iv)	 	outstanding Revolving Credit Loans	 	$            	 	
					
		 	(v)	 	Item 5.b.(i) minus Item 5.b.(ii) minus Item 5.b.(iii) minus Item 5.b.(iv)	 	$            	 	
					
	c.	 	(i)	 	Borrowing Base4	 	$            	 	
					
		 	(ii)	 	Reinstated Pre-Petition Revolving Loan Obligations	 	$            	 	
					
		 	(iii)	 	Item 5.c.(i) minus Item 5.c.(ii)	 	$            	 	
					
		 	(iv)	 	Letter of Credit Usage	 	$            	 	
					
		 	(v)	 	outstanding Swing Line Loans	 	$            	 	
					
		 	(vi)	 	outstanding Revolving Credit Loans	 	$            	 	
					
		 	(vii)	 	Item 5.c.(iii) minus Item 5.c.(iv) minus Item 5.c.(v) minus Item 5.c.(vi)	 	$            	 	

	 4
	 See Item 4 above 

  

 4 

									
	d.	 	(i)	 	Projected outstanding principal balance of Revolving Credit Extensions (as set forth in the Initial Budget)	 	$            	 	
					
		 	(ii)	 	Budget Carryover Amount	 	$            	 	
					
		 	(iii)	 	Reinstated Pre-Petition Revolving Loans	 	$            	 	
					
		 	(iv)	 	Net Pre-Petition Revolving Loan Amount then outstanding	 	$            	 	
					
		 	(v)	 	Item 5.d.(i) plus 5.d.(ii) minus 5.d.(iii) minus 5.d.(iv)	 	$            	 	
					
		 	(vi)	 	Letter of Credit Usage	 	$            	 	
					
		 	(vii)	 	Outstanding Swing Line Loans	 	$            	 	
					
		 	(viii)	 	Outstanding Revolving Credit Loans	 	$            	 	
					
		 	(ix)	 	Item 5.d.(iv) minus 5.d.(v), minus 5.d.(vi) minus 5.d.(vii)	 	$            	 	
				
	e.	 	Availability for Revolving Credit Loans and Swing Line Loan is the least of Item 5.a.(viii), Item 5.b.(v), Item 5.c.(vii) or 5.d.(ix)	 		 	$            
			
	B. Letters of Credit Calculation	 		 	
					
		 	1.	 	maximum L/C amount	 		 	$            
					
		 	2. a.	 	Borrowing Base (from Section A, Item 5.e.)	 	$            	 	
					
		 	b.	 	Amount of all outstanding Revolving Credit Loans and Swing Line Loans	 	$            	 	
					
		 	c.	 	Item 2.a. minus Item 2.b.	 	$            	 	
					
		 	3.	 	Projected Letter of Credit Usage for such week as set forth in the Initial Budget	 	$            	 	

  

 5 

									
		 	 4.
	 	 Letter of Credit Usage
	 		 	
					
		 	 5.
	 	 L/C Availability (the least of (x) Item 1. , (y) Item 2.c and (z) Item 3., minus Item 4.)
	 		 	$            

  

 6 

 Additionally, the undersigned hereby certifies and represents and warrants to the Administrative Agent
and the Lenders on behalf of the Borrower that (i) as of the date hereof, each representation or warranty contained in or pursuant to any Loan Document, any agreement, instrument, certificate, document or other writing furnished at any time
under or in connection with any Loan Document, and as of the effective date of any advance requested above is true and correct in all material respects (except to the extent any representation or warranty expressly related to an earlier date),
(ii) each of the covenants and agreements contained in any Loan Document have been performed (to the extent required to be performed on or before the date hereof or each such effective date), (iii) no Default or Event of Default has
occurred and is continuing on the date hereof, nor will any thereof occur after giving effect to the request above, and (iv) all of the foregoing is true and correct as of the effective date of the calculations set forth above and that such
calculations have been made in accordance with the requirements of the Credit Agreement. 
  

			
	 POPE & TALBOT, INC.,
 a Delaware
corporation, as a Debtor and Debtor-in-
 Possession under the US Bankruptcy Code, as Parent

		
	By:	 	  

	Title:	 	  

  

			
	cc:	 	Wells Fargo Foothill, Inc.
		 	2450 Colorado Avenue, Suite 3000 West
		 	Santa Monica, CA 90404
		 	Attention: Business Finance Manager

 Signature page to Borrowing Base Certificate 

 Annex A 
  

								
	Accounts created by any Borrowing Base Party in ordinary course of business arising out of sale of goods or rendition of services	 		 	$	            
			
	 Less (without duplication)
	 		 		
				
		 	Accounts that the Account Debtor has failed to pay within 60 days of original invoice date or 30 days of due date, or Accounts with selling terms of more than 60 days,	 	$            	 		
				
		 	Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under the immediately preceding
clause,	 	$            	 		
				
		 	Accounts with respect to which the Account Debtor is an Affiliate of any Borrowing Base Party or any Guarantor or an employee or agent of any Borrowing Base Party or any Guarantor or any
Affiliate of Parent,	 	$            	 		
				
		 	Accounts arising in a transaction wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms
by reason of which the payment by the Account Debtor may be conditional,	 	$            	 		
				
		 	Accounts that are not payable in Dollars or Canadian Dollars,	 	$            	 		
				
		 	Accounts with respect to which the Account Debtor either (i) does not maintain its chief executive office in the United States or Canada, or (ii) is not organized under the laws of
the United States or Canada or any state or province thereof, or (iii) is the government of any foreign country or sovereign state, or of any state, province, municipality, or other political subdivision thereof, or of any department, agency,
public corporation, or other instrumentality thereof,	 		 		

  

 Annex A – Page 1 

							
		 	unless (y) the Account is supported by an irrevocable letter of credit satisfactory to the Administrative Agent (as to form, substance, and issuer or domestic confirming bank) that has been
delivered to the Administrative Agent and is directly drawable by the Administrative Agent, or (z) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to Administrative Agent,	 	$            	 	
				
		 	Accounts with respect to which the Account Debtor is either (i) the United States or Canada or any department, agency, or instrumentality of the United States or Canada (exclusive, however,
of Accounts with respect to which the applicable Account Debtor is the United States or Canada or any department, agency or instrumentality of the United States or Canada and the applicable Borrowing Base Party has complied, to the reasonable
satisfaction of the Administrative Agent, with the Assignment of Claims Act, 31 USC § 3727 or the Financial Administration Act (Canada), as the case may be), or (ii) any state of the United States,	 	$            	 	
				
		 	Accounts with respect to which the Account Debtor is a creditor of a Borrowing Base Party, or has or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of
the Account, to the extent of such claim, right of setoff, or dispute,	 	$            	 	
				
		 	Accounts with respect to an Account Debtor whose total obligations owing to the Borrowing Base Parties exceed 10% (or, in the case of Cartiere Burgo spa and its Subsidiaries, 15%; such
percentage, as applied to a particular Account Debtor, being subject to reduction by the Administrative Agent in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates) of all Eligible Accounts (including all Eligible
Foreign Accounts), to the extent of the obligations owing by such Account Debtor in excess of the applicable percentage; provided, however, that, in each case, the amount of Eligible Accounts that are excluded because they exceed	 		 	

  

 Annex A – Page 2 

							
		 	the foregoing percentages shall be determined by the Administrative Agent based on all of the otherwise Eligible Accounts prior to giving effect to any eliminations based upon the foregoing
concentration limits,	 	$            	 	
				
		 	Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, is not Solvent, has gone out of business, or as to which any Borrowing Base Party has received notice of
an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account Debtor,	 	$            	 	
				
		 	Accounts with respect to which the Account Debtor is located in a state or jurisdiction (e.g., New Jersey, Minnesota, and West Virginia) that requires, as a condition to access to the courts of
such jurisdiction, that a creditor qualify to transact business, file a business activities report or other report or form, or take one or more other actions, unless the Borrowing Base Party that owns the Account has so qualified, filed such reports
or forms, or taken such actions (and, in each case, paid any required fees or other charges), except to the extent that such Borrowing Base Party may qualify subsequently as a foreign entity authorized to transact business in such state or
jurisdiction and gain access to such courts, without incurring any cost or penalty viewed by the Administrative Agent to be significant in amount, and such later qualification cures any access to such courts to enforce payment of such
Account,	 	$            	 	
				
		 	Accounts, the collection of which, the Administrative Agent, in its Permitted Discretion, believes to be doubtful by reason of the Account Debtor’s financial condition,	 	$            	 	
				
		 	Accounts that are not subject to a valid and perfected first priority Agent’s Lien; provided, that Accounts that are subject only to the Administration Charge (as defined in the Canadian
DIP Order) and the Directors’ Charge shall not be excluded from Eligible Domestic Accounts solely by reason of this clause,	 	$            	 	

  

 Annex A – Page 3 

								
		 	Accounts with respect to which (i) the goods giving rise to such Account have not been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been
performed and billed to the Account Debtor, or	 	$	            	 	
				
		 	Accounts that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by any Borrowing Base Party of the subject contract
for goods or services.	 	$	            	 	
				
		 	Total Excluded Domestic Accounts	 			 	$            
				
		 	Eligible Domestic Accounts (Total Domestic Accounts less Total Excluded Domestic Accounts):	 			 	$            

  

 Annex A – Page 4 

 Annex B 
  

							
	 Accounts created by any Borrowing Base Party in ordinary course of business arising out of sale of goods or rendition of
services
	 		 	$            
			
	 Less (without duplication)
	 		 	
				
		 	Accounts that the Account Debtor has failed to pay within 145 days of original invoice date or 30 days of due date, or Accounts with selling terms of more than 145 days,	 	$            	 	
				
		 	Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under the immediately preceding
clause,	 	$            	 	
				
		 	Accounts with respect to which the Account Debtor is an Affiliate of any Borrowing Base Party or any Guarantor or an employee or agent of any Borrowing Base Party or any Guarantor or any
Affiliate of Parent,	 	$            	 	
				
		 	Accounts arising in a transaction wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms
by reason of which the payment by the Account Debtor may be conditional,	 	$            	 	
				
		 	Accounts that are not payable in Dollars or Canadian Dollars,	 	$            	 	
				
		 	Accounts that are not insured by Eligible Foreign Accounts Credit Insurance,	 	$            	 	

  

 Annex B – Page 1 

							
		 	Accounts with respect to which the Account Debtor is a creditor of a Borrowing Base Party, or has or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of
the Account, to the extent of such claim, right of setoff, or dispute,	 	$            	 	
				
		 	Accounts with respect to an Account Debtor whose total obligations owing to the Borrowing Base Parties exceed 10% (or, in the case of Cartiere Burgo spa and its Subsidiaries, 15%; such
percentage, as applied to a particular Account Debtor, being subject to reduction by the Administrative Agent in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates) of all Eligible Accounts (including all Eligible
Domestic Accounts), to the extent of the obligations owing by such Account Debtor in excess of the applicable percentage; provided, however, that, in each case, the amount of Eligible Accounts that are excluded because they exceed the foregoing
percentages shall be determined by the Administrative Agent based on all of the otherwise Eligible Accounts prior to giving effect to any eliminations based upon the foregoing concentration limits,	 	$            	 	
				
		 	Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, is not Solvent, has gone out of business, or as to which any Borrowing Base Party has received notice of
an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account Debtor,	 	$            	 	
				
		 	Accounts with respect to which the Account Debtor is located in a jurisdiction that requires, as a condition to access to the courts of such jurisdiction, that a creditor qualify to transact
business, file a business activities report or other report or form, or take one or more other actions, unless the Borrowing Base Party that owns the Account has so qualified, filed such reports or forms, or taken such actions (and, in each case,
paid any required fees or other charges), except to the extent that such Borrowing Base Party may	 		 	

  

 Annex B – Page 2 

							
		 	qualify subsequently as a foreign entity authorized to transact business in such jurisdiction and gain access to such courts, without incurring any cost or penalty viewed by the Administrative
Agent to be significant in amount, and such later qualification cures any access to such courts to enforce payment of such Account,	 	$            	 	
				
		 	Accounts, the collection of which, the Administrative Agent, in its Permitted Discretion, believes to be doubtful by reason of the Account Debtor’s financial condition,	 	$            	 	
				
		 	Accounts that are not subject to a valid and perfected first priority Agent’s Lien; provided, that Accounts that are subject only to the Administration Charge (as defined in the Canadian
DIP Order) and the Directors’ Charge shall not be excluded from Eligible Foreign Accounts solely by reason of this clause,	 	$            	 	
				
		 	Accounts with respect to which (i) the goods giving rise to such Account have not been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have
not been performed and billed to the Account Debtor, or	 	$            	 	
				
		 	Accounts that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by any Borrowing Base Party of the subject contract
for goods or services.	 	$            	 	
				
		 	Total Excluded Foreign Accounts	 		 	$            
				
		 	Eligible Foreign Accounts (Total Foreign Accounts less Total Excluded Foreign Accounts):	 		 	$            

  

 Annex B – Page 3 

 Annex C 
  

							
	 Inventory consisting of finished goods held for sale in the ordinary course of the Borrowing Base Parties’ business and raw
materials
	 		 	$            
			
	 less (without duplication)
	 		 	
				
		 	Inventory which a Borrowing Base Party does not have good, valid, and marketable title thereto,	 	$            	 	
				
		 	Inventory not located at one of the locations in the continental United States or Canada set forth on Schedule E-1 to the Credit Agreement,	 	$            	 	
				
		 	Inventory located on real property leased by a Borrowing Base Party or in a contract warehouse or in another location not owned by a Borrowing Base Party, in each case, unless (i) it is
subject to a Collateral Access Agreement or the Administrative Agent, in its Permitted Discretion, has established a reserve under Section 2.5(c) of the Credit Agreement, and (ii) it is segregated or otherwise separately identifiable from
goods of others, if any, stored on the premises or it is located on the property of a customer of a Borrowing Base Party,	 	$            	 	
				
		 	Inventory not subject to a valid and perfected first priority Agent’s Lien; provided, that Inventory that is subject only to the Administration Charge (as defined in the Canadian DIP Order)
and the Directors’ Charge shall not be excluded from Eligible Inventory solely by reason of this clause,	 	$            	 	
				
		 	Inventory consisting of goods returned or rejected by the applicable Borrowing Base Party’s customers, or	 	$            	 	
				
		 	Inventory consisting of goods that are obsolete or slow moving, restrictive or custom items, work-in-process, or goods that constitute spare parts, packaging and shipping materials, supplies
used or consumed in a Borrowing Base Party’s business, bill and hold goods, defective goods, “seconds,” or Inventory acquired on consignment.	 	$            	 	
				
		 	Total Excluded Inventory	 		 	$            
				
		 	Eligible Inventory (Total Inventory less Total Excluded Inventory):	 		 	$            

  

 Annex C – Page 1 

 EXHIBIT J 
 FORM OF EURODOLLAR NOTICE 
 Wells Fargo Financial Corporation Canada, 
 as Administrative Agent under the below 
 referenced Credit Agreement

 55 Standish Court, Suite 400 
 Mississauga, Ontario L5R 4J4

 Attention: Nick Scarfo 
 Ladies and Gentlemen: 
 Reference hereby is made to that certain Debtor-in-Possession Credit and Security Agreement, dated as of November __, 2007 (such agreement, as amended,
restated, supplemented or otherwise modified from time to time, including any replacement agreement therefor, being hereinafter referred to as the “Credit Agreement”), entered into among Pope & Talbot, Inc., a Delaware
corporation, as a debtor and debtor-in-possession under the US Bankruptcy Code and as a debtor company under the CCAA (the “Parent”), Pope & Talbot Ltd., a Canadian corporation, as a debtor and debtor-in-possession under
the US Bankruptcy Code and as a debtor company under the CCAA (the “Borrower”), the Guarantors set forth on the signature pages thereto, the several lenders from time to time party thereto (the “Lenders”), Wells
Fargo Financial Corporation Canada, a Nova Scotia unlimited liability company, as administrative agent (in such capacity, together with its permitted successors and assigns, the “Administrative Agent”), Ableco Finance LLC, as
Collateral Agent (in such capacity, together with its permitted successors and assigns, the “Collateral Agent”), and Ableco Finance LLC, as Term Loan B Agent (in such capacity, together with its permitted successors and assigns, the
“Term Loan B Agent”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement. 
 This Eurodollar Notice represents the Borrower’s request [to convert / to continue] [outstanding Revolving Credit Loans] [a portion of the Term Loan B] in the amount of
$            , [to / as] Eurodollar Loans with an Interest Period of one month commencing on
                            . 

 This Eurodollar Notice further confirms the Borrower’s acceptance, for purposes of determining the
rate of interest based on the Eurodollar Rate under the Credit Agreement, of the Eurodollar Rate as determined pursuant to the Credit Agreement. 
 The undersigned certifies on behalf of the Borrower that no Default or Event of Default has occurred and is continuing or will result from the continuation or conversion requested above nor, to the Borrower’s knowledge, will occur or
will be continuing on the date of the continuation or conversion requested above. 
  

			
	 Dated:
	 	  

	
	 POPE & TALBOT LTD.,
 as a Debtor
and Debtor-in-Possession under the US Bankruptcy Code and as a debtor company under the CCAA, as Borrower

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 Signature Page to Eurodollar Notice 

 Acknowledged by: 
  

			
	 WELLS FARGO FINANCIAL CORPORATION CANADA,
 as Administrative Agent

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 Signature Page to Eurodollar Notice

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