Document:

Separation Agreement

 Exhibit 10.1 
 AGREEMENT 
 This Agreement
(“Agreement”) is made this 10th day of December 2008 (the “Effective Date”), by and between Gregg A. Saretsky
(“Executive”), an individual, and Alaska Airlines, Inc. (“Alaska”), an Alaska corporation that is a wholly owned subsidiary of Alaska Air Group, Inc. (“AAG”), a Delaware corporation. 
 WHEREAS, Executive is presently the Executive Vice President/Flight & Marketing of Alaska. 
 WHEREAS, Alaska and Executive have mutually agreed to continue Executive’s employment with Alaska on different terms and conditions as hereinafter
set forth and to provide for Executive’s resignation from employment with Alaska. 
 WHEREAS, this Agreement shall govern the employment
relationship between Executive and Alaska from and after the Effective Date and will supersede and negate all previous agreements with respect to such relationship. 
 WHEREAS, Alaska and Executive both desire that Executive should provide transition consulting services to Alaska for a period of time following his resignation from Alaska. 
 NOW, THEREFORE, Alaska and Executive, in consideration of the covenants undertaken and the releases below, enter into this Agreement: 
 1. Employment; Resignation. 
  

	 	a.	Employment. Alaska hereby employs Executive, and Executive agrees to serve, as Alaska’s Executive Vice President/Strategic Projects for the period commencing on the
Effective Date and continuing through December 31, 2008 (the “Separation Date”), on the terms and conditions expressly set forth in this Agreement. (Such period is referred to herein as the “Period of Employment.”) Executive
will perform such duties as may be assigned from time to time by the Board of Directors of Alaska or Alaska’s Chief Executive Officer, which relate to the business of Alaska, its subsidiaries, its affiliates, or any business ventures in which
Alaska, its subsidiaries or its parent corporation may participate. Executive will devote his productive time, ability, attention and effort to Alaska’s business and will serve its interests during his employment by Alaska; provided,
however, that Executive may devote reasonable periods of time to (a) engaging in personal investment activities (b) searching for other employment and (c) engaging in charitable or community service activities, so long as none
of the foregoing additional activities materially interfere with Executive’s duties to Alaska. 

  

	 	b.	 Resignation. Executive hereby irrevocably resigns (i) effective as of the Effective Date, as the Executive Vice President/Flight & Marketing,
and (ii) effective as of the Separation Date, as Executive Vice President/Strategic Projects of Alaska and as an officer, employee, member, manager, director and in any other capacity with AAG, Alaska and each of their affiliates. The parties
agree that Executive waives 

	 	 
any right or claim to reinstatement as an employee of AAG or Alaska and agrees not to seek employment with AAG, Alaska or any of their affiliates after the
Separation Date. Executive shall have no further employment relationship with AAG, Alaska or any of their affiliates after the Separation Date. On the Separation Date, Executive agrees that he shall confirm such resignation by executing the letter
attached as Exhibit A hereto and promptly delivering such letter to the Company. 

 2. Compensation. Alaska
agrees to pay and Executive agrees to accept in exchange for the services rendered hereunder by him during the Period of Employment, the following compensation: 
  

	 	a.	Base Salary: Executive’s base salary shall be at an annualized rate of $280,000 (the “Base Salary”), subject to any required tax withholding and all customary
payroll deductions. Such annual Base Salary shall be paid in substantially equal installments and at the same intervals as other officers of Alaska are paid. 

  

	 	b.	Officers Supplemental Retirement Plan: Executive shall continue to participate in the Alaska Air Group, Inc. 1995 Elected Officers Supplementary Retirement Plan
(“OSRP”), the Qualified Plan For Salaried Employees and the Alaska Saver 401(k) Plan, in accordance with the terms and conditions of those plans as they are in effect from time to time. 

  

	 	c.	Benefits. Executive will be entitled to participate, subject to and in accordance with applicable terms and conditions of each program, in fringe benefit programs, including,
but not limited to, health, dental and vision insurance, group life insurance, executive perquisite allowance, and such other programs as shall be provided from time to time by Alaska for its officers generally. 

  

	 	d.	Equity. Executive shall not participate in any future equity grants or other incentive awards. 

 3. Separation Benefits. In addition to any vested retirement benefits to which Executive has contributed and/or Alaska has contributed on
Executive’s behalf, Alaska shall, subject to the conditions set forth in Section 3(h) below, provide to Executive the following separation benefits on and following the Separation Date: 
  

	 	a.	Separation Date Payments. On the Separation Date, Executive will receive a final paycheck representing all unpaid salary earned through the Separation Date plus a lump sum
payment equal to six (6) weeks salary for accrued but unpaid vacation. Executive will also receive seventeen monthly payments of $23,350 less applicable taxes and other withholdings. The first installment shall be payable as soon as practicable
after the Supplemental Release Agreement referred to below becomes irrevocable in accordance with applicable law and in all events not later than sixty (60) days following Executive’s Separation from Service. As used herein, a
“Separation from Service” occurs when Executive dies, retires, or otherwise has a termination of employment with Alaska that constitutes a “separation from service” within the meaning of Treasury Regulation
Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder. 

  

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	 	b.	Performance-Based Pay Plan. Executive will be eligible for a 2008 Performance-Based Pay (“PBP”) payout, if any, based on 2008 base wages earned through the
Separation Date, any such amount to be paid when PBP payments for 2008 are made to Alaska’s other executive officers generally. Executive will not be eligible to participate in the PBP for 2009. 

  

	 	c.	Travel Privileges. Executive shall receive online travel privileges and Alaska Airlines Boardroom privileges at the same level received by Executive while an employee through
December 31, 2010. All travel privileges referenced in this paragraph shall cease as of December 31, 2010 except that following December 31, 2010, Executive shall be considered a retired officer for purposes of retiree travel and will
receive C4/T4 boarding priority as a retiree, and lifetime top tier status (currently MVP Gold) in Alaska’s frequent flyer program, per Alaska’s retiree travel policy. Travel privileges shall apply to Executive as well as his eligible
dependants. In addition to the normal purposes for which such pass travel can be used, it may also be used for the purpose of consulting with other companies (if allowed under this Agreement and the related Consulting Agreement attached hereto) and
may be used to seek other employment. Executive shall receive lifetime Alaska Airlines Boardroom privileges. Offline travel privileges shall cease upon public announcement of Executive’s resignation or upon Executive’s removal from
payroll, whichever occurs first. 

  

	 	d.	Outplacement Services. Executive shall be provided $12,000, less applicable withholdings and taxes, in lieu of outplacement services, such amount to be paid in a lump sum
within twenty (20) days after the Separation Date. The Chief Executive Officer and Vice President/Human Resources – Strategy, Culture and Inclusion will discuss Executive’s potential as a candidate for employment with and will provide
a letter of reference to both Executive and to executive recruiter Michael Bell and other executive recruiters as requested. 

  

	 	e.	Health Benefits. At Executive election, which shall be made on or prior to the Separation Date, Alaska shall either (i) pay Executive, within twenty (20) days after the
Separation Date, a lump sum equal to $36,493.20 or (ii) continue medical coverage for Executive and his eligible dependents at the levels in effect as of the Effective Date for the period commencing on the Separation Date and ending on December 31,
2010. 

  

	 	f.	Officer Supplemental Retirement Plan (OSRP). In lieu of Executive’s future participation in the OSRP and in full satisfaction of any and all of Executive’s OSRP
benefits, Executive shall be paid $275,000 on January 31, 2009 and $275,000 on January 31, 2010, subject in each case to applicable tax withholding. 

  

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	 	g.	Equity Awards. Executive shall qualify for “retirement” for purposes of any of Executive’s equity awards outstanding as of the Separation Date (notwithstanding
the definition of such term under the plan and/or award agreement that evidences any such award). As of the Separation Date, all outstanding restricted stock units and options shall be fully vested. Except as expressly modified by the foregoing
sentences, the terms of each equity award will continue to apply to Executive in his retiree status. 

  

	 	h.	Conditions of Severance. Notwithstanding any other provision herein, any obligation of Alaska or any of its affiliates to Executive pursuant to this Section 3 or under
the Consulting Agreement attached hereto shall be subject to the condition precedent that Executive shall have provided, upon or not later than five (5) days after the Separation Date, Alaska with a valid, executed Supplemental Release
Agreement in the form attached hereto as Exhibit B (the “Supplemental Release Agreement”), and such Supplemental Release Agreement shall have not been revoked by Executive pursuant to any revocation rights afforded by applicable
law. In addition, if Executive breaches his obligations under Sections 9, 10, 13 or 15 of this Agreement at any time, from and after the date of such breach and not in any way in limitation of any right or remedy otherwise available to Alaska,
Executive will no longer be entitled to, and Alaska will no longer be obligated to pay or provide any remaining unpaid benefit pursuant to this Section 3 or under the Consulting Agreement; provided that, if Executive provides the Supplemental
Release Agreement contemplated by this Section 3(h), in no event shall Executive be entitled to aggregate benefits pursuant to this Section 3 and the Consulting Agreement of less than $5,000, which amount the parties agree is good and
adequate consideration, in and of itself, for Executive’s release under the Supplemental Release Agreement. 

 4.
Consulting Obligations. Executive agrees to execute the Consulting Agreement in the form attached hereto as Exhibit C, (the “Consulting Agreement”) and provide Consulting Services to Alaska in accordance with the terms and
conditions of the Consulting Agreement. In the event that Executive revokes this Agreement pursuant to Section 8(d), the Consulting Agreement shall be null and void. 
 5. Agreement Inadmissible. Neither this Agreement nor anything in this Agreement shall be construed to be or shall be admissible in any proceeding as evidence of or an admission by Alaska of any violation of
its policies, procedures, state or federal laws or regulations. This Agreement may be introduced, however, in any proceeding to enforce the Agreement. Such introduction shall be pursuant to an order protecting its confidentiality. 
 6. General Release and Covenant Not To Sue. Except for those obligations created by or arising out of this Agreement, Executive on behalf of
himself, his descendants, dependents, heirs, executors, administrators, assigns, and successors, and each of them, hereby covenants not to sue and fully releases and discharges Alaska, and its parent, subsidiaries and affiliates, past and present,
and each of them, as well as its and their trustees, directors, officers, agents, attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and each of them, hereinafter together and collectively
referred to as “Releasees,” with 

  

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respect to and from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations,
debts, costs, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which he
now owns or holds or he has at any time heretofore owned or held or may in the future hold as against said Releasees, including any claims arising out of or in any way connected with his employment relationship with Alaska, or his separation from
the same, or any other transactions, occurrences, acts or omissions or any loss, damage or injury whatever, known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part of said Releasees, or any of them, committed
or omitted prior to the date of this Agreement including, without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964 (as amended), the Age Discrimination in Employment Act, the Americans with
Disabilities Act, the Family and Medical Leave Act of 1993 (the “FMLA”), the Washington Law Against Discrimination, the Washington Age Discrimination Law, or any claim for severance pay, bonus, sick leave, holiday pay, vacation pay, life
insurance, health or medical insurance or any other fringe benefit. This release does not, however, cover any claim that cannot be released as a matter of applicable law. Executive acknowledges and agrees that he has received any and all leave and
other benefits that the has been and is entitled to pursuant to FMLA. 
 7. Release of Unknown Claims. It is the intention of
Executive in executing this Agreement that the same shall be effective as a bar to each and every claim, demand and cause of action hereinabove specified. In furtherance of this intention, Executive hereby expressly waives any and all rights and
benefits conferred upon him by any law, statute, or legal doctrine that would otherwise prevent the release of unknown claims and expressly consents that this Agreement shall be given full force and effect according to each and all of its express
terms and provisions, including those related to unknown and unsuspected claims, demands and causes of action, if any, as well as those relating to any other claims, demands and causes of action hereinabove specified. Executive acknowledges that he
may hereafter discover claims or facts in addition to or different from those which Executive now knows or believes to exist with respect to the subject matter of this Agreement and which, if known or suspected at the time of executing this
Agreement, may have materially affected this settlement. Nevertheless, Executive hereby waives any right, claim or cause of action that might arise as a result of such different or additional claims or facts. Executive acknowledges that he
understands the significance and consequence of such release and waiver. 
 8. Federal Age Discrimination in Employment Act Waiver and
Advisements. Executive expressly acknowledges and agrees that, by entering into this Agreement, he is waiving any and all rights or claims that he may have arising under the Age Discrimination in Employment Act of 1967, as amended (the
“ADEA”), which have arisen on or before the date of execution of this Agreement. Executive further expressly acknowledges and agrees that: 
 a. In return for this Agreement, he will receive compensation beyond that which he was already entitled to receive before entering into this Agreement; 
 b. He was orally advised by Alaska and is hereby advised in writing by this Agreement to consult with an attorney before signing this Agreement; 
  

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 c. He was given a copy of this Agreement on December 10, 2008, and informed that he had twenty one
(21) days within which to consider this Agreement, and that if he wished to execute this Agreement prior to the expiration of such 21-day period, he should execute the Acknowledgment and Waiver attached as Exhibit D; 
 d. He was informed that he has seven (7) days following the date of execution of the Agreement in which to revoke the Agreement. 
 9. Confidential and Proprietary Information. Executive acknowledges that by reason of his position with Alaska he is aware of and has been given
access to concepts, designs, processes, technologies, trade secrets, customer lists, marketing plans, business plans, and other forms of confidential and proprietary information, whether or not developed by Executive. Executive agrees promptly to
return all related documents, data and other materials of whatever nature. Executive further represents that he has held all such information confidential and will continue to do so, and that he will not use such information and relationships for
any business (which term herein includes a partnership, firm, corporation or any other entity) without the prior written consent of Alaska. 
 10. Non-Solicitation. Executive shall not, during the Period of Employment and for a period of fifteen (15) months following the Separation Date, directly or indirectly solicit, influence or entice, or attempt to solicit,
influence or entice, any employee or consultant of Alaska to cease his or her relationship with Alaska or solicit, influence, entice or in any way divert any customer, distributor, partner, joint venture partner or supplier of Alaska to do business
or in any way become associated with any Competitor (as defined below). 
 11. Cooperation with Investigations. Nothing in this
Agreement limits, restricts or precludes either Alaska or Executive from cooperating with any governmental agency in the performance of its investigative or other lawful duties. Further, Executive agrees to cooperate fully with Alaska, including but
not limited to the prosecution or defense of any civil or criminal action or other legal proceedings in which Alaska determines that Executive has relevant information or knowledge. Such cooperation shall include, without limitation, communicating
with representatives (including attorneys) for Alaska, providing truthful testimony in oral or written form, preparing for such testimony with attorneys for Alaska, and reviewing documents in connection with such communications or preparations;
provided, however, that the foregoing shall not be deemed to require Executive to waive any Fifth Amendment or other privilege with respect to events that occurred during Executive’s tenure at Alaska. 
 12. Full Payment of Compensation Due and Owing. Executive agrees that the payments described in Sections 2 through 4 above are the sole and
exclusive compensation to which he is entitled from Alaska or any other of the Releasees, and acknowledges that the payments described in said paragraphs fully satisfy any salary, wages, bonuses, accrued vacation, commissions, severance benefits,
and any and all other benefits due to Executive. 
 13. Non-Competition. Executive agrees that he will not, directly or indirectly,
during the Period of Employment and for a period of fifteen (15) months after the Separation Date, be employed by, consult with or otherwise perform services for, own, manage, operate, join, control or participate in the ownership, management,
operation or control of or be connected with, in any manner, any Competitor. A “Competitor” shall include, Frontier Airline Holdings, Jet Blue Airways Corporation, Southwest Airlines Corporation, Virgin America, UAL Corporation, and any of
their affiliates. 
  

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 14. No Assignments. Executive warrants and represents that he has not heretofore assigned or
transferred to any person not a party to this Agreement any released matter or any part or portion thereof and shall defend, indemnify and hold harmless Releasees from and against any claim (including the payment of attorneys’ fees and costs
actually incurred whether or not litigation is commenced) based on or in connection with or arising out of any such assignment or transfer made, purported or claimed. 
 15. No Disparagement. Executive and Alaska agree that neither shall make any disparaging, uncomplimentary or negative remarks about the other, or in the case of Executive, about AAG, or the products, business
affairs or employees of Alaska, Horizon Air Industries, Inc. or Alaska Air Group, Inc. 
 16. End of Employment Relationship.
Executive and Alaska acknowledge that any employment relationship between them shall terminate on the Separation Date, and that they will have no continuing contractual relationship except as expressly provided in this Agreement and the Consulting
Agreement. Executive acknowledges that the Change of Control Agreement between Executive and AAG dated February 14, 2008 shall terminate on the Effective Date. 
 17. Taxes. Executive agrees that he shall be exclusively liable for the payment of all federal and state taxes which may be due as the result of the consideration received herein and hereby represents that he
shall make payments on such taxes at the time and in the amount required of him. In addition, Executive hereby agrees fully to defend, indemnify and hold harmless Releasees and each of them from payment of taxes, interest and/or penalties that are
required of them by any government agency at any time as the result of payment of the consideration set forth herein. 
 18. Entire
Agreement. This instrument (including the attached exhibits) constitutes and contains the entire agreement and final understanding concerning Executive’s employment, voluntary retirement from the same and the other subject matters addressed
herein between the parties. It is intended by the parties as a complete and exclusive statement of the terms of their agreement. It supersedes and replaces all prior negotiations and all agreements proposed or otherwise, whether written or oral,
concerning the subject matters hereof. Any representation, promise or agreement not specifically included in this Agreement shall not be binding upon or enforceable against either party. This is a fully integrated agreement. 
 19. Revocation. Either Executive or Alaska may revoke this Agreement in its entirety during the seven (7) days following execution of the
Agreement by Executive. Any revocation of the Agreement must be in writing and hand-delivered during the revocation period. This Agreement will become effective and enforceable seven (7) days following execution by Executive, unless it is
revoked during the seven-day period. If so revoked during such period, this Agreement shall be null and void in its entirety. 
  

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 20. Severability and Survivorship. If any provision of this Agreement or the application thereof
is held invalid, such invalidity shall not affect other provisions or applications of the Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be
severable. This agreement shall be binding upon a successor or assignor of Alaska in the event of a merger or acquisition. 
 21.
Washington Law Governs. This Agreement shall be deemed to have been executed and delivered within the State of Washington, and the rights and obligations of the parties hereunder shall be construed and enforced in accordance with, and
governed by, the laws of the State of Washington without regard to principles of conflict of laws. 
 22. Execution in Counterparts.
This Agreement may be executed in counterparts, and each counterpart, when executed, shall have the efficacy of a signed original. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose. 
 23. Binding Arbitration of Disputes. Any dispute or controversy between Executive, on the one hand, and Alaska (or any other Releasee), on the
other hand, in any way arising out of, related to, or connected with this Agreement or the subject matter thereof, or otherwise in any way arising out of, related to, or connected with Executive’s employment with Alaska or the conclusion of
Executive’s employment with Alaska, shall be resolved through final and binding arbitration before an arbitrator in King County, Washington. The arbitrator shall be selected by mutual agreement of the parties; if none, then by striking from a
panel of seven arbitrators provided by the American Arbitration Association. By entering into this agreement to arbitrate, the parties voluntarily waive any right to have covered disputes decided by a court of law and/or jury. In the event of
such arbitration, the prevailing party shall be entitled to recover all reasonable costs and expenses incurred by such party in connection therewith, including attorneys’ fees. The nonprevailing party shall also be solely responsible for all
costs of the arbitration, including, but not limited to, the arbitrator’s fees, court reporter fees, and any and all other administrative costs of the arbitration, and promptly shall reimburse the prevailing party for any portion of such costs
previously paid by the prevailing party. Any dispute as to the reasonableness of costs and expenses shall be determined by the arbitrator. 
 Except as may be necessary to enter judgment upon the award or to the extent required by applicable law, all claims, defenses and proceedings (including, without limiting the generality of the foregoing, the existence of the controversy and
the fact that there is an arbitration proceeding) shall be treated in a confidential manner by the arbitrator, the parties and their counsel, and each of their agents, and employees and all others acting on behalf of or in concert with them. Without
limiting the generality of the foregoing, no one shall divulge to any third party or person not directly involved in the arbitration the contents of the pleadings, papers, orders, hearings, trials, or awards in the arbitration, except as may be
necessary to enter judgment upon an award as required by applicable law. Any court proceedings relating to the arbitration hereunder, including, without limiting the generality of the foregoing, to prevent or compel arbitration or to confirm,
correct, vacate or otherwise enforce an arbitration award, shall be filed under seal with the court, to the extent permitted by law. 
  

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 24. Notice. All notices given hereunder (except for notices of revocation pursuant to
Section 8(d) or 19 above) shall be given in writing, shall specifically refer to this Agreement, and shall be personally delivered or sent by telecopy or other electronic facsimile transmission or by registered or certified mail, return receipt
requested, at the address set forth below or at such other address as may hereafter be designated by notice given in compliance with the terms hereof. 
  

			
	If to Executive:	  	Gregg A. Saretsky
		  	9358 SE 30th Street
		  	Clyde Hill, WA 98004
		
	If to Alaska:	  	Alaska Airlines, Inc.
		  	Attn: Chief Executive Officer
		  	19300 Pacific Highway South
		  	Seattle, WA 98188
		  	Fax: (206) 392-5807

 If notice is mailed, such notice shall be effective upon mailing, or if notice is personally
delivered or sent by telecopy or other electronic facsimile transmission, it shall be effective upon receipt. 
 25. Limitations on
Waiver. No waiver of any breach of any term or provision of this Agreement shall be construed to be, or shall be, a waiver of any other breach of this Agreement. No waiver shall be binding unless in writing and signed by the party waiving the
breach. 
 26. Legal Counsel. Each party recognizes that this is a legally binding contract and acknowledges and agrees that they have
had the opportunity to consult with legal counsel of their choice. Executive agrees and acknowledges that he has read and understands this Agreement, is entering into it freely and voluntarily, and has been advised to seek counsel prior to entering
into this Agreement and has had ample opportunity to do so. 
 27. Section 409A. 
  

	 	a.	It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the Code (including the Treasury regulations and other
published guidance relating thereto) (“Code Section 409A”) so as not to subject Executive to payment of any additional tax, penalty or interest imposed under Code Section 409A. The provisions of this Agreement shall be construed
and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest extent reasonably possible) the intended benefit payable to Executive. 

  

	 	b.	To the extent that any benefits pursuant to Section 2(c) or Section 3(c), 3(d) or 3(e) are taxable to Executive, any reimbursement payment due to Executive pursuant to any
such provision shall be paid to Executive on or before the last day of Executive’s taxable year following the taxable year in which the related expense was incurred. Any benefits and reimbursements pursuant to Section 2(c) or
Section 3(c), 3(d) or 3(e) are not subject to liquidation or exchange for another benefit and the amount of such benefits and reimbursements that Executive receives in one taxable year shall not affect the amount of such benefits or
reimbursements that Executive receives in any other taxable year. 

  

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 I have read the foregoing Agreement and I accept and agree to the provisions it contains and hereby
execute it voluntarily with full understanding of its consequences. 
 I declare under penalty of perjury under the laws of the State of
Washington that the foregoing is true and correct. 
 EXECUTED this 10th day of December 2008 at King County, Washington. 
  

	
	/s/ Gregg A. Saretsky
	Gregg A. Saretsky

 EXECUTED this 10th day of December 2008 at King County, Washington. 
  

			
	/s/ Phyllis J. Campbell
	ALASKA AIRLINES, INC.
		
	By	 	Phyllis J. Campbell
	Chair, Compensation Committee of the
	Alaska Air Group, Inc. Board of Directors

  

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 EXHIBIT A 
 Date: __________________ 
 William S. Ayer 
 Chairman,
President and Chief Executive Officer 
 Alaska Airlines, Inc. 
 19300 International Blvd. 
 Seattle, Washington 98188 
 Dear Bill: 
 This is to advise you that, effective December 31, 2008, I hereby voluntarily resign from my position as Executive Vice
President/Strategic Projects and any other capacity with Alaska Airlines, Inc. and each of its affiliates. 
 Sincerely yours, 
 [NAME] 
  

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 EXHIBIT B 
 SUPPLEMENTAL RELEASE 
 1. Release. _________________ (the “Executive”), on behalf of
himself, his descendants, dependents, heirs, executors, administrators, assigns, and successors, and each of them, hereby covenants not to sue and fully releases and discharges Alaska Airlines, Inc. (“Alaska”), and its parent, subsidiaries
and affiliates, past and present, and each of them, as well as its and their trustees, directors, officers, agents, attorneys, insurers, employees, stockholders, representatives, assigns, and successors, past and present, and each of them,
hereinafter together and collectively referred to as “Releasees,” with respect to and from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, debts, costs,
expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which he now owns or
holds or he has at any time heretofore owned or held or may in the future hold as against said Releasees, including any claims arising out of or in any way connected with his employment relationship with Alaska, or his separation from the same, or
any other transactions, occurrences, acts or omissions or any loss, damage or injury whatever, known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part of said Releasees, or any of them, committed or omitted
prior to the date of this Agreement including, without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964 (as amended), the Age Discrimination in Employment Act, the Americans with Disabilities Act,
the Family and Medical Leave Act of 1993 (the “FMLA”), the Washington Law Against Discrimination, the Washington Age Discrimination Law, or any claim for severance pay, bonus, sick leave, holiday pay, vacation pay, life insurance, health
or medical insurance or any other fringe benefit; provided, however, that the foregoing release does not apply to any obligation of the Company and its subsidiaries to the Executive pursuant to any of the following: (1) the Agreement between
the Executive and the Company dated as of [_____________, 2008] (the “Separation Agreement”) or the related Consulting Agreement between the Executive and the Company attached thereto; (2) any equity-based awards
previously granted by the Company to the Executive, to the extent that such awards continue after the termination of the Executive’s employment with the Company in accordance with the applicable terms of such awards (and subject to any limited
period in which to exercise such awards following such termination of employment as modified by the Separation Agreement); (3) any right to indemnification that Executive may have pursuant to the Bylaws or Certificate of Incorporation of the
Company or under any written indemnification agreement with the Company or under applicable state law with respect to any loss, damages or expenses (including but not limited to attorneys’ fees to the extent otherwise provided) that the
Executive may in the future incur with respect to his service as an employee, officer or director of the Company; (4) with respect to any rights that the Executive may have to insurance coverage for such losses, damages or expenses under any
directors and officers liability insurance policy of the Company; (5) any rights to continued medical or dental coverage that the Executive may have under the Consolidated Omnibus Budget Reconciliation Act; or (6) any rights to payment of
the Executive’s accrued and vested benefits (if any) that Executive may have under a retirement plan sponsored or maintained by the Company that is intended to qualify under Section 401(a) of the Internal Revenue Code of 1986, as amended.
This release does not, however, cover any claim that cannot be released as a matter of applicable law. Executive acknowledges and agrees that he has received any and all leave and other benefits that he has been and is entitled to pursuant to FMLA.

  

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 2. Release of Unknown Claims. It is the intention of Executive in executing this Agreement that
the same shall be effective as a bar to each and every claim, demand and cause of action hereinabove specified. In furtherance of this intention, Executive hereby expressly waives any and all rights and benefits conferred upon him by any law,
statute, or legal doctrine that would otherwise prevent the release of unknown claims and expressly consents that this Agreement shall be given full force and effect according to each and all of its express terms and provisions, including those
related to unknown and unsuspected claims, demands and causes of action, if any, as well as those relating to any other claims, demands and causes of action hereinabove specified. Executive acknowledges that he may hereafter discover claims or facts
in addition to or different from those which Executive now knows or believes to exist with respect to the subject matter of this Agreement and which, if known or suspected at the time of executing this Agreement, may have materially affected this
settlement. Nevertheless, Executive hereby waives any right, claim or cause of action that might arise as a result of such different or additional claims or facts. Executive acknowledges that he understands the significance and consequence of such
release and waiver. 
 3. Federal Age Discrimination in Employment Act Waiver and Advisements. Executive expressly acknowledges and
agrees that, by entering into this Agreement, he is waiving any and all rights or claims that he may have arising under the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”), which have arisen on or before the date of
execution of this Agreement. Executive further expressly acknowledges and agrees that: 
 (a) In return for this Agreement,
the Executive will receive consideration beyond that which he was already entitled to receive before entering into this Agreement; 
 (b) The Executive is hereby advised in writing by this Agreement to consult with an attorney before signing this Agreement; 
 (c) The Executive has voluntarily chosen to enter into this Agreement and has not been forced or pressured in any way to sign it; 
 (d) The Executive was given a copy of this Agreement on [                    ] and informed that he had
twenty-one (21) days within which to consider the Agreement and that if he wished to execute this Agreement prior to expiration of such 21-day period, he should execute the Acknowledgement and Waiver attached hereto as Exhibit B-1;

 (e) Nothing in this Agreement prevents or precludes the Executive from challenging or seeking a determination in good faith
of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by federal law; and 
 (f) The Executive was informed that he has seven (7) days following the date of execution of this Agreement in which to revoke this
Agreement, and this Agreement will become null and void if the Executive elects revocation during that time. Any revocation must be in writing and must be received by the Company during the seven-day revocation period. In the event that the
Executive exercises his right of revocation, neither the Company nor the Executive will have any obligations under this Agreement. 
  

 13 

 4. No Transferred Claims. The Executive warrants and represents that the Executive has not
heretofore assigned or transferred to any person not a party to this Agreement any released matter or any part or portion thereof and he shall defend, indemnify and hold the Company and each of its affiliates harmless from and against any claim
(including the payment of attorneys’ fees and costs actually incurred whether or not litigation is commenced) based on or in connection with or arising out of any such assignment or transfer made, purported or claimed. 
 5. Miscellaneous. The following provisions shall apply for purposes of this Agreement: 
 (a) This Agreement shall be governed by and construed in accordance with the laws of the State of Washington, without reference to
principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties
hereto or their respective successors and legal representatives. 
 (b) The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 
 (c) The
Executive’s or the Company’s failure to insist on strict compliance with any provision hereof or any other provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, shall not be deemed
to be a waiver of such provision or right or any other provision or right of this Agreement. 
 (d) This Agreement may be
executed in counterparts, each of which counterparts shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 [Remainder of page intentionally left blank] 
  

 14 

 The undersigned have read and understand the consequences of this Agreement and voluntarily sign it. The
undersigned declare under penalty of perjury under the laws of the State of Washington that the foregoing is true and correct. 
 EXECUTED
this ________ day of ________ 20    , at ______________________ County, __________. 
  

	
	EXECUTIVE
	
	  
	[Name]

 EXECUTED this ________ day of ________ 20    , at
______________________ County, __________. 
  

			
	ALASKA AIRLINES, INC.
		
	By:	 	 
	[Name]	 	
	[Title]	 	

  

 15 

 EXHIBIT B-1 
 ACKNOWLEDGMENT AND WAIVER 
 I, _____________, hereby acknowledge that I was given 21 days to consider
the foregoing Supplemental Release Agreement and voluntarily chose to sign the Supplemental Release Agreement prior to the expiration of the 21-day period. 
 I declare under penalty of perjury under the laws of the State of Washington that the foregoing is true and correct. 
 EXECUTED this ________ day of ____________ 20__, at ___________ County, _________. 
  

	
	
	  
	[Name]

  

 16 

 EXHIBIT C 
 CONSULTING AGREEMENT 
 THIS CONSULTING AGREEMENT for independent contractor consulting services
(“Consulting Agreement”) is made and entered into as of _____________, by and between Alaska Airlines, Inc. (the “Company”), a corporation, and Gregg Saretsky (the “Contractor”), an individual. 
 IT IS AGREED: 
 1. Independent Contractor
Relationship. In accordance with the mutual intentions of the Company and the Contractor, this Consulting Agreement establishes between them an independent contractor relationship, and all of the terms and conditions of this Consulting Agreement
shall be interpreted in light of that relationship. There is no intention to create by this Consulting Agreement an employer-employee relationship or for Contractor to participate in any benefits offered to active employees of the Company. During
the first 90 days of this agreement, consultant will continue to have access to his Alaska Airlines First Class email account and may represent his position to prospective employers as the Executive Vice-President, Strategic Projects. 
 2. Term. The Contractor shall provide services from January 1, 2009 through December 31, 2009; provided, however, that the Contractor shall not
be obligated to perform should Contractor become physically or mentally disabled from doing so. This Agreement may only be terminated for material breach of one of its provisions. 
 3. Amount of Service. It is understood by the parties that the Company does not have the exclusive right to the Contractor’s services. It is
understood and agreed, however, that the Company has the right (although it has no obligation) to use and the Contractor shall provide services for up to 30 days during the term specified in Section 2 to be rendered at mutually agreeable times
and places and so as not to interfere unreasonably with other consulting or employment of the Contractor. The Contractor warrants and represents that there is no conflict of interest in the Contractor’s other contracts for services or other
employment, if any, with the services to be provided pursuant to this Consulting Agreement and that the Contractor will ensure that no such conflict arises during the term of this Consulting Agreement (which includes but is in no way limited to use
of another’s confidential and proprietary information). 
 4. Conflict of Interest Prohibited. It is also understood that, during the
term of this Consulting Agreement, the Contractor may not consult, work or serve in any capacity for Frontier Airline Holdings, Jet Blue Airways Corporation, Southwest Airlines Corporation, Virgin America, UAL Corporation or any of their affiliates.
The Contractor further acknowledges that he will comply with the terms of Sections 9, 10, 13 and 15 of the Agreement entered into between Consultant and the Company on or about the date hereof (the “Separation Agreement”) and that a breach
of this Section 4 or any of the enumerated provisions of the Separation Agreement shall constitute a material breach of this Agreement. 
  

 17 

 5. Type of Service. The Company will purchase from the Contractor, and the Contractor will sell to the
Company, any services reasonably requested by the Company, including services related to the transition of his former duties as an employee of the Company. William S. Ayer (or his successor) is the only person authorized to request the
Contractor’s services. 
 6. Payment. During the term of this Consulting Agreement, the Company shall pay to the Contractor for his
services (and will so pay even if it chooses not to exercise its right to use his services) a monthly consulting fee of $31,817, such amount to be paid within three (3) business days after the last day of the month to which it relates. The
payments herein provided shall constitute full payment for the Contractor’s services to the Company during the term of this Consulting Agreement, and the Contractor shall not receive any additional benefits or compensation for consulting
services, except that the Company will reimburse the Contractor for reasonable and customary expenses incurred at the Company’s request in connection with such consulting. All such costs and expenses shall be itemized by statement and each
statement shall be accompanied by substantiating bills or vouchers. Air travel will be first class when available. 
 7. Contractor
Responsible for its Agents and Employees. The Contractor shall select and shall have full and complete control of and responsibility for all agents, employees and subcontractors, if any, employed or used by the Contractor and for the conduct of the
Contractor’s independent business and none of said agents, employees or subcontractors shall be, or shall be deemed to be, the agent, employee or subcontractor of the Company for any purpose whatsoever, and the Company shall have no duty,
liability or responsibility, of any kind, to or for the acts or omissions of Contractor or such agents, employees or subcontractors, or any of them. Contractor agrees to defend, indemnify and hold the Company harmless from and with respect to any
and all claims of any kind based on any act or omission of the Contractor or Contractor’s agents, employees or subcontractors. 
 8.
Contractor Responsible for Taxes and Indemnification. Without limiting any of the foregoing, the Contractor agrees to accept exclusive liability for the payment of taxes or contributions for unemployment insurance or pensions or annuities or social
security payments which are measured by the wages, salaries or other remuneration paid to the Contractor or the employees of the Contractor, if any, and to reimburse and indemnify the Company for such taxes or contributions or penalties which the
Company may be compelled to pay. The Contractor also agrees to comply with all valid administrative regulations respecting the assumption of liability for such taxes and contributions. 
 9. Means and Methods. The Contractor agrees to furnish personal services as provided herein as an independent contractor using the Contractor’s own
means and methods. 
 10. Contractor Work Product Owned by Company. All writings, plans and other information developed under this Consulting
Agreement, of whatever type relating to the work performed under this Consulting Agreement, shall be the exclusive property of the Company. 
 11. Confidentiality. The Contractor agrees that all data and information about the Company’s business, plans, finances, plants, equipment, processes and methods of operation disclosed to, acquired by or developed by the Contractor
during performance of the work 

  

 18 

 
hereunder is and shall remain the exclusive property of the Company. Except for such information and data as can be proven by the Contractor to be in or to
have entered the public domain through no fault of the Contractor or to have been in the Contractor’s possession prior to disclosure to the Contractor by the Company and/or the performance of Contractor’s services hereunder, Contractor
shall during the term of the Consulting Agreement and thereafter in perpetuity maintain as confidential and not disclose to third parties or otherwise use, and will enjoin the Contractor’s employees, agents or subcontractors (as applicable)
from using, such information except as duly authorized in the conduct of the Company’s business or as otherwise authorized in advance in writing. The Contractor agrees that such data and information shall be used by the Contractor solely for
the purpose of performing services for the Company and not for the benefit of any other person or entity whatsoever. 
 12. Termination by
Death. This Consulting Agreement shall automatically terminate upon the Contractor’s death. In such event, the Company shall be obligated to pay the Contractor’s estate or beneficiaries all remaining unpaid fees and expenses due through
the term of this Consulting Agreement. 
 13. No Assignments by Contractor. The Contractor shall not assign or transfer any rights under this
Consulting Agreement without the Company’s prior written consent, and any attempt of assignment or transfer without such consent shall be void. 
 14. Washington Law Governs. This Consulting Agreement shall be deemed to have been executed and delivered within the State of Washington, and the rights and obligations of the parties hereunder shall be construed and
enforced in accordance with, and governed by, the laws of the State of Washington without regard to principles of conflict of laws. 
 15.
Severability. If any provision of this Consulting Agreement or the application thereof is held invalid, the invalidity shall not affect other provisions or applications of the Consulting Agreement which can be given effect without the invalid
provisions or applications and, to this end, the provisions of this Consulting Agreement are declared to be severable. 
 16. Waiver of
Breach. No waiver of any breach of any term or provision of this Consulting Agreement shall be construed to be, or shall be, a waiver of any other breach of this Consulting Agreement. No waiver shall be binding unless in writing and signed by the
party waiving the breach. 
 17. Notice. All notices given hereunder shall be given in writing, shall specifically refer to this Consulting
Agreement, and shall be personally delivered or sent by telecopy or other electronic facsimile transmission or by registered or certified mail, return receipt requested, at the address set forth below or at such other address as may hereafter be
designated by notice given in compliance with the terms hereof. 
  

			
	If to Executive:	  	Gregg Saretsky
		  	______________
		  	______________
		
	If to Alaska:	  	 Alaska Airlines, Inc.
 Attn: Chief Executive Officer

 19300 Pacific Highway South
 Seattle, WA 98188
 Fax: (206) 431-3819

  

 19 

 If notice is mailed, such notice shall be effective upon mailing, or if notice is personally delivered or
sent by telecopy or other electronic facsimile transmission, it shall be effective upon receipt. 
 18. Compliance with Law. The Contractor
shall comply with any and all applicable laws and regulations including but not limited to health, safety and security rules and regulations which are now in effect or which may become applicable. 
 19. Arbitration of Disputes. Any controversy or claim arising out of or relating to this Consulting Agreement, its enforcement or interpretation, or
because of an alleged breach, default, or misrepresentation in connection with any of its provisions, shall be submitted to final and binding arbitration, to be held in King County, Washington. The arbitrator shall be selected by mutual agreement of
the parties; if none, then by striking from a panel of seven arbitrators provided by the American Arbitration Association. By entering into this agreement to arbitrate, the parties voluntarily waive any right to have covered disputes decided by a
court of law and/or jury. In the event either party institutes arbitration under this Consulting Agreement, the party prevailing in any such arbitration shall be entitled, in addition to all other relief, to reasonable attorneys’ fees
relating to such arbitration. The nonprevailing party shall be responsible for all costs of the arbitration, including but not limited to, the arbitration fees, court reporter fees, etc. 
 20. Entire Agreement. This instrument and the Separation Agreement constitute and contain the entire agreement and final understanding between the
parties covering the services provided by the Contractor. They are intended by the parties as a complete and exclusive statement of the terms of their agreement. They supercede all prior negotiations and agreements, proposed or otherwise, whether
written or oral, between the parties concerning services provided by the Contractor. Any representation, promise or agreement not specifically included in this Consulting Agreement or the Separation Agreement shall not be binding upon or enforceable
against either party. This Consulting Agreement (together with the Separation Agreement) is a fully integrated document. This Consulting Agreement may be modified only with a written instrument duly executed by each of the parties. No person has any
authority to make any representation or promise on behalf of any of the parties not set forth herein or in the Separation Agreement and this Consulting Agreement has not been executed in reliance upon any representations or promises except those
contained herein. 
 21. Headings Not Controlling. Headings are used only for ease of reference and are not controlling. 
 [Remainder of page intentionally left blank] 
  

 20 

 IN WITNESS WHEREOF, the Company and the Contractor have executed this Agreement as of the date first set
forth above. 
 EXECUTED this _____ day of ___________ 2008, at ________________ County, Washington. 
  

	
	
	
	  
	Gregg Saretsky

 EXECUTED this _____ day of ___________ 2008, at ________________ County, Washington.

  

			
	 
	ALASKA AIRLINES, INC.
		
	By	 	 
	Its	 	 

  

 21 

 EXHIBIT D 
 ACKNOWLEDGEMENT AND WAIVER 
 I, [NAME], hereby acknowledge that I was given twenty one (21) days to
consider the foregoing Agreement (the “Agreement”) and voluntarily chose to sign the Agreement prior to the expiration of the 21-day period. 
 I declare under penalty of perjury under the laws of the State of Washington that the foregoing is true and correct. 
 EXECUTED this [DAY] day of [MONTH] [YEAR], at _________ County, Washington. 
  

	
	
	  
	[NAME]Credit Agreement, dated as of December 8, 2008

 Exhibit 10.1 
 EXECUTION COPY 
  
  

 
 CREDIT AGREEMENT 
 Dated as of December 8, 2008 
 among

 POTLATCH CORPORATION, 
 POTLATCH FOREST HOLDINGS, INC., 
 CLEARWATER PAPER CORPORATION 
 (FORMERLY KNOWN AS POTLATCH FOREST PRODUCTS CORPORATION) 
 and 
 POTLATCH LAND & LUMBER, LLC 
 as Borrowers 
 Certain Material Subsidiaries of the Borrowers 
 from time to time party hereto 
 as Guarantors 
 BANK OF AMERICA, N.A. 
 as
Administrative Agent, Swing Line Lender, L/C Issuer and Collateral Agent 
 and 
 THE LENDERS PARTY HERETO 
 BANC OF AMERICA SECURITIES LLC 
 as Sole Lead Arranger and Sole Book Manager 
 U.S. BANK NATIONAL ASSOCIATION 
 as Syndication Agent 
 COOPERATIEVE CENTRALE RAIFFEISEN – BOERENLEENBANK B.A. 
 “RABOBANK
INTERNATIONAL” NEW YORK BRANCH, 
 UNION BANK OF CALIFORNIA, N.A. 
 and 
 NORTHWEST FARM CREDIT SERVICES, PCA 
 as Co-Documentation Agents 
  
  
  

 TABLE OF CONTENTS 
  

					
	 Section
	  	 	  	Page
	 ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	  	1
			
	 1.01
	  	Defined Terms	  	1
	 1.02
	  	Other Interpretive Provisions	  	32
	 1.03
	  	Accounting Terms	  	32
	 1.04
	  	Rounding	  	33
	 1.05
	  	References to Agreements and Laws	  	33
	 1.06
	  	Exchange Rates; Currency Equivalents	  	33
	 1.07
	  	Additional Alternative Currencies	  	34
	 1.08
	  	Change of Currency	  	34
	 1.09
	  	Times of Day	  	35
	 1.10
	  	Letter of Credit Amounts	  	35
		
	 ARTICLE II COMMITMENTS AND CREDIT EXTENSIONS
	  	35
			
	 2.01
	  	Committed Loans	  	35
	 2.02
	  	Borrowings, Conversions and Continuations of Committed Loans	  	36
	 2.03
	  	Letters of Credit	  	37
	 2.04
	  	Swing Line Loans	  	48
	 2.05
	  	Prepayments	  	51
	 2.06
	  	Termination or Reduction of Commitments	  	52
	 2.07
	  	Repayment of Loans	  	52
	 2.08
	  	Interest	  	52
	 2.09
	  	Fees	  	53
	 2.10
	  	Computation of Interest and Fees	  	54
	 2.11
	  	Evidence of Debt	  	54
	 2.12
	  	Payments Generally	  	55
	 2.13
	  	Sharing of Payments	  	57
	 2.14
	  	Increase in Aggregate Commitments	  	58
	 2.15
	  	Joint and Several Liability of Borrowers	  	59
	 2.16
	  	Appointment of the Administrative Borrower	  	60
		
	 ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY
	  	61
			
	 3.01
	  	Taxes	  	61
	 3.02
	  	Illegality	  	62
	 3.03
	  	Inability to Determine Rates	  	63
	 3.04
	  	Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans	  	63
	 3.05
	  	Funding Losses	  	64
	 3.06
	  	Matters Applicable to all Requests for Compensation	  	65
	 3.07
	  	Survival	  	65
		
	 ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	  	65
			
	 4.01
	  	Conditions to Initial Credit Extension	  	65
	 4.02
	  	Conditions to all Credit Extensions	  	68
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES
	  	69
			
	 5.01
	  	Financial Condition	  	69
	 5.02
	  	No Material Change; No Internal Control Event	  	70
	 5.03
	  	Organization and Good Standing	  	70

					
	 5.04
	  	Power; Authorization; Enforceable Obligations	  	70
	 5.05
	  	No Conflicts	  	71
	 5.06
	  	No Default	  	71
	 5.07
	  	Ownership; Liens	  	71
	 5.08
	  	Indebtedness	  	72
	 5.09
	  	Litigation	  	72
	 5.10
	  	Taxes	  	72
	 5.11
	  	Compliance with Law	  	72
	 5.12
	  	ERISA	  	72
	 5.13
	  	Corporate Structure; Capital Stock, Etc.	  	74
	 5.14
	  	Governmental Regulations, Etc.	  	74
	 5.15
	  	Purpose of Loans and Letters of Credit	  	74
	 5.16
	  	Environmental Matters	  	75
	 5.17
	  	Solvency	  	76
	 5.18
	  	Investments	  	76
	 5.19
	  	Disclosure	  	76
	 5.20
	  	No Burdensome Restrictions	  	76
	 5.21
	  	Brokers’ Fees	  	76
	 5.22
	  	Labor Matters	  	76
	 5.23
	  	REIT Status	  	76
	 5.24
	  	Collateral Documents	  	76
	 5.25
	  	Business Locations	  	77
	 5.26
	  	Casualty, Etc.	  	77
		
	 ARTICLE VI AFFIRMATIVE COVENANTS
	  	77
			
	 6.01
	  	Information Covenants	  	77
	 6.02
	  	Preservation of Existence, Franchises and REIT Status	  	81
	 6.03
	  	Books and Records	  	81
	 6.04
	  	Compliance with Law	  	81
	 6.05
	  	Payment of Taxes and Other Claims	  	82
	 6.06
	  	Insurance	  	82
	 6.07
	  	Maintenance of Property; Management of Timberlands	  	82
	 6.08
	  	Use of Proceeds	  	83
	 6.09
	  	Audits/Inspections	  	83
	 6.10
	  	Financial Covenants	  	83
	 6.11
	  	Additional Guarantors	  	84
	 6.12
	  	Performance of Obligations	  	84
	 6.13
	  	Pledged Collateral	  	84
	 6.14
	  	Further Assurances	  	87
	 6.15
	  	Timberland Appraisals and Appraisal Updates	  	87
	 6.16
	  	Completion of Spin-off	  	88
		
	 ARTICLE VII NEGATIVE COVENANTS
	  	88
			
	 7.01
	  	Indebtedness	  	88
	 7.02
	  	Liens	  	89
	 7.03
	  	Nature of Business	  	91
	 7.04
	  	Consolidation, Merger, Dissolution, etc.	  	92
	 7.05
	  	Asset Dispositions	  	92
	 7.06
	  	Investments	  	93
	 7.07
	  	Restricted Payments	  	94
	 7.08
	  	Limitation on Actions with Respect to Other Indebtedness	  	95
	 7.09
	  	Transactions with Affiliates	  	95

  

 ii 

					
	 7.10
	  	Fiscal Year; Organizational Documents	  	96
	 7.11
	  	Limitation on Restricted Actions	  	96
	 7.12
	  	Ownership of Subsidiaries	  	96
	 7.13
	  	Sale Leasebacks	  	97
	 7.14
	  	No Further Negative Pledges	  	97
	 7.15
	  	Subsidiaries	  	97
	 7.16
	  	Use of Proceeds	  	97
	 7.17
	  	Consolidated Capital Expenditures	  	97
		
	 ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES
	  	98
	 8.01
	  	Events of Default	  	98
	 8.02
	  	Remedies Upon Event of Default	  	101
	 8.03
	  	Application of Funds	  	101
		
	 ARTICLE IX ADMINISTRATIVE AGENT
	  	102
	 9.01
	  	Appointment and Authority	  	102
	 9.02
	  	Rights as a Lender	  	103
	 9.03
	  	Exculpatory Provisions	  	103
	 9.04
	  	Reliance by Administrative Agent	  	104
	 9.05
	  	Delegation of Duties	  	104
	 9.06
	  	Resignation of Administrative Agent	  	105
	 9.07
	  	Non-Reliance on Administrative Agent and Other Lenders	  	106
	 9.08
	  	No Other Duties, Etc.	  	106
	 9.09
	  	Administrative Agent May File Proofs of Claim	  	106
	 9.10
	  	Collateral and Guaranty Matters	  	107
	 9.11
	  	Secured Cash Management Agreements and Secured Swap Contract	  	108
		
	 ARTICLE X MISCELLANEOUS
	  	108
			
	 10.01
	  	Amendments, Etc.	  	108
	 10.02
	  	Notices; Effectiveness; Electronic Communications	  	109
	 10.03
	  	No Waiver; Cumulative Remedies	  	111
	 10.04
	  	Attorney Costs, Expenses and Taxes	  	112
	 10.05
	  	Expenses; Indemnity; Damage Waiver	  	113
	 10.06
	  	Payments Set Aside	  	114
	 10.07
	  	Successors and Assigns	  	115
	 10.08
	  	Treatment of Certain Information; Confidentiality	  	120
	 10.09
	  	Set-off	  	121
	 10.10
	  	Interest Rate Limitation	  	121
	 10.11
	  	Counterparts	  	121
	 10.12
	  	Integration	  	121
	 10.13
	  	Survival of Representations and Warranties	  	122
	 10.14
	  	Severability	  	122
	 10.15
	  	Tax Forms	  	122
	 10.16
	  	Replacement of Lenders	  	124
	 10.17
	  	Governing Law	  	125
	 10.18
	  	Waiver of Right to Trial by Jury	  	125
	 10.19
	  	USA PATRIOT Act Notice	  	126
	 10.20
	  	Judgment Currency	  	126
	 10.21
	  	No Advisory or Fiduciary Responsibility	  	126
		
	 ARTICLE XI. GUARANTY
	  	127
			
	 11.01
	  	The Guaranty	  	127

  

 iii 

					
	 11.02
	  	Obligations Unconditional	  	127
	 11.03
	  	Reinstatement	  	129
	 11.04
	  	Certain Additional Waivers	  	129
	 11.05
	  	Remedies	  	129
	 11.06
	  	Rights of Contribution	  	129
	 11.07
	  	Guarantee of Payment; Continuing Guarantee	  	129

  

 iv 

 SCHEDULES 
  

			
	 1.01(a)
	  	Existing Letters of Credit
	 2.01
	  	Commitments and Applicable Percentages
	 5.04
	  	Required Consents, Authorizations, Notices and Filings
	 5.09
	  	Litigation
	 5.12
	  	ERISA
	 5.13
	  	Corporate Structure; Capital Stock, Etc.
	 5.16
	  	Environmental Disclosures
	 5.24
	  	Necessary Filings or Actions
	 5.25(a)
	  	Chief Executive Office, Etc.
	 5.25(b)
	  	Timberlands
	 7.01
	  	Existing Indebtedness
	 7.02
	  	Existing Liens
	 7.06
	  	Existing Investments
	 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
	  	Joinder Agreement
	 G
	  	Notice of Prepayment
	 H
	  	Timberland Mortgage

  

 v 

 CREDIT AGREEMENT 
 This CREDIT AGREEMENT (“Agreement”) is entered into as of December 8, 2008, among (i) POTLATCH CORPORATION, a Delaware corporation and a REIT (“Potlatch” or the
“Company”), (ii) POTLATCH FOREST HOLDINGS, INC., a Delaware corporation (“Potlatch Forest”), (iii) POTLATCH LAND & LUMBER, LLC, a Delaware limited liability company and a taxable REIT subsidiary
of Potlatch (“Potlatch Land & Lumber”), (iv) CLEARWATER PAPER CORPORATION (formerly known as Potlatch Forest Products Corporation), a Delaware corporation and a taxable REIT subsidiary of Potlatch until the conditions
of the Clearwater Credit Facility (as defined in Section 1.01) have been satisfied (“Clearwater”) (collectively, the “Borrowers”), (v) certain Material Subsidiaries of the Borrowers from time to
time party hereto as guarantors (the “Guarantors”), (vi) each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), and (vii) BANK OF AMERICA,
N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer. 
 PRELIMINARY STATEMENTS 
 WHEREAS, the Borrowers have requested that the Lenders provide a revolving credit facility to the Borrowers and the Lenders have indicated their
willingness to lend and the L/C Issuer has indicated its willingness to issue letters of credit, in each case on terms and subject to the 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: 
 “6.95% Debentures” means the 6.95% Debentures issued by
Potlatch Forest pursuant to the Indenture, dated December 18, 1995, to U.S. Bank National Association, successor to First Trust of California, National Association, as trustee, as amended, restated supplemented or modified from time to time.

 “Acquisition”, by any Person, means the acquisition by such Person of (i) timber or timberlands or (ii) all of
the Capital Stock or all or substantially all of the Property of another Person or a division or business unit thereof, whether or not involving a merger or consolidation with such other Person. 
 “Administrative Agent” means Bank of America in its capacity as administrative agent under any of the Loan Documents, or any successor
administrative agent. 
  

 1 

 “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 the Administrative Borrower and the Lenders. 
 “Administrative Borrower” means Potlatch. 
 “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. “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. Without limiting the generality of the foregoing, a Person shall be deemed to be Controlled by another Person if such other Person
possesses, directly or indirectly, power to vote 10% or more of the securities having ordinary voting power for the election of directors, managing general partners or the equivalent. 
 “Aggregate Commitments” means the Commitments of all the Lenders, as such amount may be reduced or increased as set forth herein. The
Aggregate Commitments as of the Closing Date shall be TWO HUNDRED FIFTY MILLION DOLLARS ($250,000,000). 
 “Agreement” means
this Credit Agreement. 
 “Agreement Currency” has the meaning specified in Section 10.20. 
 “Alternative Currency” means Euro and each other currency (other than Dollars) that is approved in accordance with
Section 1.07. 
 “Alternative Currency Equivalent” means, at any time, with respect to any amount denominated in
Dollars, the equivalent amount thereof in the applicable Alternative Currency as determined by the Administrative Agent or the L/C Issuer, as applicable, at such time on the basis of the Spot Rate (determined in respect of the most recent
Revaluation Date) for the purchase of such Alternative Currency with Dollars. 
 “Annual Timberland Appraisal Update” means an annual update to the Opening Timberland Appraisal delivered to the Administrative Agent and the Collateral Agent, in accordance with Section 6.15(i) hereof, which
update shall be conducted by an Approved Appraiser and which shall include, without limitation, (i) an update of timber inventory (which shall be provided by the Borrowers) reflecting depletion and growth of the timber as of
January 1st of such year (which shall reflect any Timberlands added or disposed of since the Opening Timberland Appraisal or Annual Timberland
Appraisal Update most recently delivered), (ii) the updated aggregate appraised value of the Timberlands based on the current market conditions and (iii) an indication by the Approved Appraiser of the total acreage comprising the Pledged
Timberlands, the aggregate value for the Pledged Timberlands and the average per acre value for the Pledged Timberlands taken as a whole, in each case, in form and detail reasonably satisfactory to the Collateral Agent. 
  

 2 

 “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; provided that 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, from time to time, for the purposes of calculating
(a) the commitment fee for the purposes of Section 2.09(a), (b) the interest rate applicable to Eurodollar Rate Loans for the purposes of Section 2.08, (c) the interest rate applicable to Base Rate Loans for
the purposes of Section 2.08 or (d) the Letter of Credit Fee for the purposes of Section 2.03(i), the following percentages per annum, based upon the Funded Indebtedness to Capitalization Ratio as set forth in the most
recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.01(c): 
 Applicable Rate

  

											
	 Pricing
Level
	  	 Funded Indebtedness to Capitalization Ratio
	  	Eurodollar
Loans	 	Base Rate
Loans	 	Letter of
Credit Fee	 	Commitment
Fee
						
	I	  	Less than 30.0%	  	3.000%	 	3.000%	 	3.000%	 	0.500%
						
	II	  	Greater than or equal to 30.0% but less than 40.0%	  	3.250%	 	3.250%	 	3.250%	 	0.500%
						
	III	  	Greater that or equal to 40.0% but less than 50.0%	  	3.500%	 	3.500%	 	3.500%	 	0.500%
						
	IV	  	Greater than or equal to 50.0% but less than 55.0%	  	3.750%	 	3.750%	 	3.750%	 	0.500%
						
	V	  	Greater than or equal to 55.0%	  	4.000%	 	4.000%	 	4.000%	 	0.500%

  

 3 

 Any increase or decrease in the Applicable Rate resulting from a change in the Funded Indebtedness to
Capitalization Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.01(c); provided, however, that if a Compliance Certificate
is not delivered when due in accordance with such Section, then Pricing Level V shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered until such Compliance Certificate is
actually delivered. Notwithstanding the foregoing, the Applicable Rate shall initially be set at Pricing Level III in the table above and will remain no lower than Pricing Level III until the first Business Day immediately following the date on
which the Borrowers have delivered the Compliance Certificate for the fiscal quarter ending on June 30, 2009. 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). 
 “Applicable Time” means, with respect to any borrowings and
payments in any Alternative Currency, the local time in the place of settlement for such Alternative Currency as may be determined by the Administrative Agent or the L/C Issuer, as the case may be, to be necessary for timely settlement on the
relevant date in accordance with normal banking procedures in the place of payment. 
 “Approved Appraiser” means Philip
Tedder Inc. or another third party appraiser reasonably satisfactory to the Collateral Agent and the Administrative Agent. 
 “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. 
 “Arranger” means Banc of America Securities LLC, in its capacity as sole lead arranger and sole book manager. 
 “Asset Disposition” means any disposition (including pursuant to a Sale and Leaseback Transaction) of any or all of the Property
(including without limitation the Capital Stock of a Subsidiary) of any Consolidated Party whether by sale, lease, licensing, transfer or otherwise, but other than pursuant to any casualty or condemnation event; provided, however, that
(i) the term “Asset Disposition” shall be deemed to include the Spin-off and any “Asset Sale” (or any comparable term) under, and as defined in the documents evidencing or governing any Subordinated Indebtedness and
(ii) the term “Asset Disposition” shall not include (a) an Equity Issuance, (b) the sale of conservation easements or other easements on Timberlands which, with respect to the Pledged Timberlands, individually or in the
aggregate, do not impair the value of the Pledged Timberlands as commercial timberlands in any material respect or materially detract from the use of the Pledged Timberlands, in each case taken as a whole, as such or the sale of inventory,
electricity, timber or other assets, each in the ordinary course of business (other than a sale of a fee interest in Timberlands) and (c) the exchange of Property for similar or like-kind Property in connection with an exchange under
Section 1031 of the Code. 
 “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. 
  

 4 

 “Assignment and Assumption” means an Assignment and Assumption substantially in the form
of Exhibit E. 
 “Attorney Costs” means and includes all reasonable fees, expenses and disbursements of any law firm
or other external counsel and, without duplication, the allocated cost of internal legal services and all out-of-pocket expenses and disbursements of internal counsel. 
 “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 Potlatch and its Subsidiaries for the fiscal year ended December 31, 2007, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year
of Potlatch 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. 
 “Availability
Reserve” means $100,000,000. 
 “Bank of America” means Bank of America, N.A. and its successors. 
 “Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States Code, as amended, modified, succeeded or replaced from time
to time. 
 “Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds
Rate plus 1/2 of 1.00%, (b) the Eurodollar Rate that would then be applicable to a new Eurodollar Rate Loan with a one month Interest Period, and (c) 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 Materials” has the meaning specified in Section 6.01(j). 
  

 5 

 “Borrowers” has the meaning specified in the introductory paragraph hereto. 

“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” means, as applied to any Person, any lease of any Property (whether
real, personal or mixed) by that Person as lessee which, in accordance with GAAP, is required to be accounted for as a capital lease on the balance sheet of that Person. 
 “Capital Stock” means (i) in the case of a corporation, capital stock, (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of capital stock, (iii) in the case of a partnership, partnership interests (whether general or limited), (iv) in the case of a limited liability company, membership interests and (v) any other
interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person. 
 “Cash Collateralize” has the meaning specified in Section 2.03(g). 
 “Cash Equivalents” means, as at any date, (a) securities issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the
United States is pledged in support thereof) having maturities of not more than twelve (12) months from the date of acquisition, (b) Dollar denominated time deposits and certificates of deposit of (i) any Lender, (ii) any
domestic commercial bank of recognized standing having capital and surplus in excess of $500,000,000 or (iii) any bank whose short-term commercial paper rating from S&P is at least A-1 or the equivalent thereof or from Moody’s is at
least P-1 or the equivalent thereof (any such bank being an “Approved Bank”), in each case with maturities of not more than 270 days from the date of acquisition, (c) commercial paper and variable or fixed rate notes issued by
any Approved Bank (or by the parent company thereof) or any variable rate notes issued by, or guaranteed by, any domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or P-1 (or the equivalent thereof) or better by
Moody’s and maturing within six (6) months of the date of acquisition, (d) repurchase agreements entered into by any Person with a bank or trust company (including any of the Lenders) or recognized securities dealer having capital and
surplus in excess of $500,000,000 for direct obligations issued by or fully guaranteed by the United States in which such Person shall have a perfected first priority security interest (subject to no other Liens) and having, on the date of purchase
thereof, a fair market value of at least 100% of the amount of the repurchase obligations and (e) Investments, classified in accordance with GAAP as current assets, in money market investment programs registered under the Investment Company Act
of 1940, as amended, which are administered by reputable financial institutions having capital of at least $500,000,000 and the portfolios of which are limited to Investments of the character described in the foregoing subdivisions (a) through
(d). 
  

 6 

 “Cash Management Agreement” means any agreement to provide cash management services,
including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management arrangements. 
 “Cash Management Bank” means any Person that, (a) at the time it enters into a Cash Management Agreement, is a Lender or an Affiliate of a Lender, or (b) at the time it (or its Affiliate) becomes a Lender, is a
party to a Cash Management Agreement in each case in its capacity as a party to such Cash Management Agreement. 
 “Change of
Control” means the occurrence of any of the following: (i) any “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner”
(as defined in Rule l3d-3 under the Securities Exchange Act of 1934) of more than 35% of then outstanding Voting Stock of Potlatch measured by voting power rather than the number of shares; provided, however, that for the purposes
hereof any Person shall not be deemed to be a “beneficial owner” (as defined in Rule l3d-3 under the Securities Exchange Act of 1934) of shares tendered pursuant to a tender offer or exchange offer paid by or on behalf of that Person or
any Affiliate of that Person until the tendered shares are accepted for purchase or exchange and, provided further, however, that no Person who is a “beneficial owner” of Voting Stock of Potlatch as of the Closing Date
(an “Existing Holder”) or a Permitted Transferee (as hereinafter defined) (collectively a “Permitted Holder”) shall be deemed to have become the “beneficial owner” of Voting Stock of Potlatch, as a result of the
formation of a “syndicate” or “group” (each within the meaning of Section l3d-3 of the Securities Exchange Act of 1934) with one or more other Permitted Holders to the extent of the Voting Stock of Potlatch as to which such other
Permitted Holder or Permitted Holders is a “beneficial owner” as of the Closing Date; (ii) any Borrower shall merge or consolidate with any Person other than in a transaction permitted under Section 7.04;
(iii) Continuing Directors shall fail to constitute a majority of the members of the board of directors of Potlatch; (iv) any Asset Disposition shall be made that (of itself or when combined with any or all other Asset Dispositions)
constitutes a sale of all or substantially all of the assets of the Borrowers and their Subsidiaries, taken as a whole; (v) any event shall occur that constitutes a “Change of Control” (or any comparable term) under, and as defined
in, the documents evidencing or governing any Subordinated Indebtedness; (vi) any event shall occur that requires any Borrower or any Subsidiary to repay, redeem, or repurchase (or to offer to repay, redeem or repurchase) any Indebtedness
outstanding in a principal amount in excess of $50,000,000 by reason of any change of ownership or control affecting a Borrower or such Subsidiary; or (vii) Potlatch shall fail to own, directly or indirectly, 100% of the Voting Stock of each
other Borrower (other than in connection with the Spin-off of Clearwater as permitted herein). For the purposes hereof, “Permitted Transferee” shall mean any direct or indirect transferee of Voting Stock of the Borrowers from an Existing
Holder (1) by gift, bequest, distribution from (or deposit into) a trust or other transfer without consideration, (2) by succession or testamentary disposition upon death or (3) to a spouse or former spouse pursuant to an agreement
for division of community property or other property settlement agreement in connection with a marital dissolution or legal separation. A Permitted Transferee shall be deemed to be the “beneficial owner” of any such Voting Stock as of the
Closing Date. 
 “Clearwater” has the meaning specified in the introductory paragraph hereto. 
  

 7 

 “Clearwater Credit Facility” means the credit facility to be entered into by Clearwater
for up to $125,000,000 with Bank of America, N.A. and certain other lenders. 
 “Closing Date” means the first date all the
conditions precedent in Section 4.01 are satisfied in accordance with Section 4.01. 
 “Code” means
the Internal Revenue Code of 1986, as amended. 
 “Collateral” means all of the “Collateral” 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 Collateral Agent for the benefit of the Secured Creditors. 
 “Collateral Agent” means Bank of America, N.A., in its capacity as collateral agent for the Secured Creditors, or any successor
appointed pursuant to Article IX. 
 “Collateral Coverage Ratio” means, as of any date of determination for the Borrowers
and their Subsidiaries on a consolidated basis, the ratio of Consolidated Collateral Value to Consolidated Secured Indebtedness. 
 “Collateral Documents” means, collectively, the Pledge Agreement, the Timberland Mortgages and each other agreement, instrument or document that creates or purports to create a Lien in favor of the Collateral Agent for the
benefit of the Secured Creditors. 
 “Commitment” means, as to each Lender, its obligation to (a) make Committed Loans
to the Borrowers 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. 
 “Company” has the meaning specified in the introductory paragraph hereto.

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

 8 

 “Consolidated Capital Expenditures” means, as of any date for the four fiscal quarter
period ending on such date with respect to the Consolidated Parties on a consolidated basis, all capital expenditures, as determined in accordance with GAAP; provided, however, that Consolidated Capital Expenditures shall not include
(x) Eligible Reinvestments made with proceeds of any Involuntary Disposition or (y) the acquisition of timberlands but shall include those capital expenditures related to timberland operations. 
 “Consolidated Collateral Value” means, as of any date of determination with respect to the Pledged Timberlands, the sum of (a) the
aggregate value of the Pledged Timberlands as indicated in the most recently delivered Opening Timberland Appraisal and/or Timberland Appraisal Update, as applicable, minus (b) the aggregate value of any Pledged Timberlands that have
been disposed of or released in accordance with Section 6.13(b), (c) or (d) hereof which (x) in the case of the disposition or release of up to 10,000 acres of Pledged Timberlands per fiscal year, shall be
determined by multiplying the average price per acre for the Pledged Timberlands indicated in the most recently delivered Opening Timberland Appraisal and/or Timberland Appraisal Update, as applicable, by the acreage that was disposed or released
and (y) in all other cases shall be determined based on the applicable Special Pledged Timberland Valuation Report for such disposed or released Pledged Timberlands plus (c) the value of any Pledged Timberlands that have been added
as Collateral in accordance with Section 6.13(b) or (c) hereof since the date of the most recently delivered Opening Timberland Appraisal and/or Timberland Appraisal Update which (x) in the case of newly acquired
Timberlands, shall be determined based on an Off-Cycle Timberland Appraisal for such additional Pledged Timberlands and (y) in the case of Timberlands which were the subject of the most recently delivered Opening Timberland Appraisal and/or
Timberland Appraisal Update, shall be determined based upon the applicable Special Pledged Timberland Valuation Report for such additional Pledged Timberlands. 
 “Consolidated EBITDDA” means, as of any date for the four fiscal quarter period ending on such date with respect to the Consolidated Parties on a consolidated basis, the sum of (i) Consolidated
Net Income, plus (ii) an amount which, in the determination of Consolidated Net Income for such period, has been deducted for (A) Consolidated Interest Expense, (B) income taxes, and (C) depreciation, depletion and amortization
expense and (D) any prepayment penalty, make whole premium or loss associated with the Repayment of any Indebtedness permitted hereunder, plus (iii) cash expenses paid in connection with the Spin-off in such period and the cash portion of
the expenses for the closure of the saw mill located in Prescott, Arkansas in an aggregate amount, for all such expenses, not to exceed $20,000,000 during the term of this Agreement, plus (iv) the non-cash cost basis of any Timberlands sold.

 “Consolidated Interest Expense” means, as of any date for the four fiscal quarter period ending on such date with respect
to the Consolidated Parties on a consolidated basis, interest expense (including the amortization of debt discount and premium, the interest component under Capital Leases and the implied interest component under Synthetic Lease Obligations) net of
interest income, all as determined in accordance with GAAP. 
 “Consolidated Net Income” means, as of any date for the four
fiscal quarter period ending on such date with respect to the Consolidated Parties on a consolidated basis, net income (excluding (i) extraordinary items and (ii) non-cash, non-recurring items) after interest expense, income taxes,
depreciation, depletion and amortization expense, all as determined in accordance with GAAP. 
  

 9 

 “Consolidated Net Worth” means, as of any date, stockholders’ equity or net worth
of the Consolidated Parties on a consolidated basis, as of such date, as determined in accordance with GAAP; provided, however, that for the purpose of the calculation of the Funded Indebtedness to Capitalization Ratio (including in
connection with determining the Applicable Rate), such calculation shall be adjusted to exclude that portion of “Accumulated other comprehensive income or loss” as shown on the Borrowers’ consolidated balance sheet related to an
underfunding or overfunding of postretirement benefit plans (i.e., there will be added back to Consolidated Net Worth any such amount that is shown as a negative number and that relates to an underfunding of such benefit plans and there will
be subtracted from Consolidated Net Worth any such amount that is shown as a positive number and that relates to an overfunding of such benefit plans); provided further, however, that the aggregate amount of all such amounts
added back to Consolidated Net Worth pursuant to this proviso shall not exceed $200,000,000 (provided that such amount shall be decreased to $150,000,000 following the completion of the Spin-off). 
 “Consolidated Parties” means a collective reference to the Borrowers and their Subsidiaries, and “Consolidated Party”
means any one of them. 
 “Consolidated Secured Indebtedness” means, as of any date of determination, for the Borrowers and
their Subsidiaries on a consolidated basis and without duplication, the sum of all Indebtedness outstanding under the Ratably Secured Obligations plus the Aggregate Commitments in effect as of such date (whether or not any Loans or other Extensions
of Credit are then outstanding). 
 “Consolidated Total Assets” means, as of any date of determination, with respect to the
Consolidated Parties on a consolidated basis, total assets, as determined in accordance with GAAP. 
 “Consolidated Total
Capitalization” means, as of any date of determination, (i) Funded Indebtedness of the Consolidated Parties on a consolidated basis as of such date plus (ii) Consolidated Net Worth as of such date. 
 “Continuing Directors” means the directors of Potlatch on the Closing Date, and each other director whose election by the board of
directors of Potlatch or whose nomination for election by the stockholders of Potlatch was approved by a vote of at least a majority of the directors who were either directors on the Closing Date or whose election or nomination for election was
previously so approved by directors who were Continuing Directors. 
 “Control” has the meaning specified in the definition
of “Affiliate.” 
 “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension. 
 “Credit Sensitive Debentures” means the 9 1/8% Credit Sensitive Debentures issued by Potlatch Forest
pursuant to the Indenture, dated as of April 1, 1986, to U.S. Bank National Association, successor to The Bank of California, National Association, as trustee, as amended, restated, supplemented or modified from time to time, the
obligations of which Credit Sensitive Debentures have been assumed by Clearwater and will be retained by Clearwater in connection with the Spin-off. 
  

 10 

 “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. 
 “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, (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 (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding. 
 “Discretionary L/C Issuer” has the meaning specified in Section 2.03(b)(vi). 
 “Dollar” and “$” mean lawful money of the United States. 
 “Dollar Equivalent”
means, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in any Alternative Currency, the equivalent amount thereof in Dollars as determined by the
Administrative Agent or the L/C Issuer, as the case may be, at such time on the basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase of Dollars with such Alternative Currency. 
 “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 10.07(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 10.07(b)(iii)). 
  

 11 

 “Eligible Reinvestment” means (i) any acquisition (whether or not constituting a
capital expenditure, but not constituting an Acquisition) of assets or any business (or any substantial part thereof) used or useful in the same or a similar line of business as the Borrowers and their Subsidiaries were engaged in on the Closing
Date (or any reasonable extensions or expansions thereof) and (ii) any Permitted Acquisition. The term “Eligible Reinvestment” shall not include any item which is not a permitted application of proceeds of an “Asset Sale”
(or any comparable term) under, and as defined in the documents evidencing or governing any Subordinated Indebtedness. 
 “EMU” means the economic and monetary union in accordance with the Treaty of Rome 1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam Treaty of 1998. 
 “EMU Legislation” means the legislative measures of the European Council for the introduction of, changeover to or operation of a single
or unified European currency. 
 “Environmental Claims” means all claims, however asserted, by any Governmental Authority
alleging potential liability or responsibility for violation of any Environmental Law, or for release or injury to the environment. 
 “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 a Borrower or any of its 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. 
 “Equity
Issuance” means any issuance by any Consolidated Party to any Person of (a) shares of its Capital Stock, (b) any shares of its Capital Stock pursuant to the exercise of options or warrants, (c) any shares of its Capital Stock
pursuant to the conversion of any debt securities to equity or (d) any options or warrants relating to its Capital Stock. The term “Equity Issuance” shall be deemed not to include (i) any Asset Disposition or (ii) issuances
pursuant to (x) employee plans of the Borrowers that are in place as of the Closing Date to the extent such issuances are permitted pursuant to the documentation governing those plans as in effect as of the Closing Date or (y) new or
amended employee plans of the Borrowers to the extent such issuances are consistent with past practices of the Borrowers. 
 “ERISA” means the Employee Retirement Income Security Act of 1974. 
  

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 “ERISA Affiliate” means any trade or business (whether or not incorporated) under common
control with a 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 a 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 a Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to
terminate, the treatment of a plan amendment as a termination under Sections 4041 or 4041A of ERISA with respect to, 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 a Borrower or any ERISA Affiliate. 
 “Euro”
and “EUR” mean the lawful currency of the Participating Member States in accordance with the EMU Legislation. 
 “Eurodollar Rate” means, for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to (A) the British Bankers Association LIBOR Rate as published by Reuters (or other commercially
available source providing quotations of BBA LIBOR as designated by the Administrative Agent from time to time) (“BBA LIBOR”), at approximately 11:00 a.m., London time, two (2) 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 or (B) if such published rate is not available at such time for any reason, the rate 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 (2) Business Days
prior to the commencement of such Interest Period. 
 “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. 

“Existing Credit Agreement” means that certain Amended and Restated Credit Agreement, dated as of December 22, 2005, as amended
or modified prior to the Closing Date, among Potlatch, certain Subsidiaries of Potlatch from time to time party thereto as co-borrowers and/or guarantors, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent
for the lenders thereunder. 
  

 13 

 “Existing Letters of Credit” means the letters of credit outstanding on the Closing Date
and identified on Schedule 1.01(a). 
 “Farm Credit Administration” means that certain agency known as the Farm
Credit Administration that derives its authority from the Farm Credit Act of 1971, as amended. 
 “Farm Credit System” means
any lending institution (including any wholly-owned subsidiaries) governed by the Farm Credit Administration. 
 “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 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
Letter” means the letter agreement, dated October 22, 2008, among the Company, the Administrative Agent and the Arranger. 
 “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrowers are residents 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 that is not a Domestic Subsidiary. 
 “FRB” means the Board of Governors of the Federal Reserve System of the
United States. 
 “Fully Satisfied” means, with respect to the Obligations as of any date, that, as of such date,
(a) all principal of and interest accrued to such date which constitute Obligations shall have been irrevocably paid in full in cash, (b) all fees, expenses and other amounts then due and payable which constitute Obligations shall have
been irrevocably paid in cash, and (c) the Commitments shall have expired or shall have been terminated in full. 
 “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. 
 “Funded Indebtedness” means, with respect to any Person, without duplication, (a) all obligations of
such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, or upon which interest payments are customarily made, (c) all obligations of such Person under conditional
sale or other title retention agreements relating to Property purchased by such Person (other than customary reservations or retentions of 

  

 14 

 
title under agreements with suppliers entered into in the ordinary course of business), (d) all obligations of such Person issued or assumed as the
deferred purchase price of Property or services purchased by such Person (other than trade debt incurred in the ordinary course of business and due within six months of the incurrence thereof) which would appear as liabilities on a balance sheet of
such Person, (e) the implied principal component of all obligations of such Person under Capital Leases, (f) the maximum amount of all performance and standby letters of credit issued or bankers’ acceptances facilities created for the
account of such Person and, without duplication, all drafts drawn thereunder (to the extent unreimbursed), (g) all preferred Capital Stock issued by such Person and which by the terms thereof could be (at the request of the holders thereof or
otherwise) subject to mandatory sinking fund payments, redemption or other acceleration (other than as a result of a Change of Control or an Asset Disposition that does not in fact result in a redemption of such preferred Capital Stock) at any time
prior to the Maturity Date, (h) the principal portion of all obligations of such Person under Synthetic Lease Obligations, (i) all obligations of such Person to repurchase any securities issued by such Person at any time prior to the
Maturity Date which repurchase obligations are related to the issuance thereof, including, without limitation, obligations commonly known as residual equity appreciation potential shares, (j) the aggregate amount of uncollected accounts
receivable of such Person subject at such time to a sale of receivables (or similar transaction) (whether or not such transaction would be reflected on the balance sheet of such Person in accordance with GAAP), (k) all Funded Indebtedness of
others secured by (or for which the holder of such Funded Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, Property owned or acquired by such Person,
whether or not the obligations secured thereby have been assumed, (l) all Guarantees of such Person with respect to Funded Indebtedness of another Person and (m) the Funded Indebtedness of any partnership or unincorporated joint venture in
which such Person is a general partner or a joint venturer to the extent such Indebtedness is recourse to such Person. 
 “Funded
Indebtedness to Capitalization Ratio” means, as of the end of any fiscal quarter of the Consolidated Parties, the ratio of (a) Funded Indebtedness of the Consolidated Parties on a consolidated basis on the last day of such period to
(b) Consolidated Total Capitalization on the last day of such period. 
 “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 any nation or government, any state or other political subdivision thereof, any agency, authority,
instrumentality, regulatory body, court, administrative tribunal, 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). 
 “Granting Lender” has the meaning
specified in Section 10.07(h). 
  

 15 

 “Guarantee” means, as to any Person, (a) any obligation (other than endorsements in
the ordinary course of business of negotiable instruments for deposit or collection), 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 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 uncontested 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. The
amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable 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, each Person that subsequently becomes a Guarantor hereunder pursuant to Section 6.11 by
executing a Joinder Agreement in substantially the form of Exhibit F, and “Guarantor” means any one of them. As of the Closing Date there are no Guarantors party hereto. 
 “Guaranty” means the Guaranty made by the Guarantors in favor of the Administrative Agent, on behalf of the Lenders, pursuant to
Article XI hereof. 
 “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. 
 “Hedge Bank” means any Person that, (a) at the time it enters
into a Swap Contract permitted under Article VI or VII, is a Lender or an Affiliate of a Lender, or (b) at the time it (or its Affiliate) becomes a Lender, is a party to a Swap Contract permitted under Article VI or
VII, in each case in its capacity as a party to such Swap Contract. 
 “Impacted Lender” means any Lender as to which
(a) L/C Issuer has a good faith belief that the Lender has defaulted in fulfilling its obligations under one or more other syndicated credit facilities or (b) an entity that controls the Lender has been deemed insolvent or become subject
to a bankruptcy or other similar proceeding. 
 “Increase Effective Date” has the meaning set forth in
Section 2.14. 
  

 16 

 “Indebtedness” means, with respect to any Person, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such Person either evidenced by bonds, debentures, notes or similar instruments, or upon which interest payments are customarily made, (c) all obligations of such Person
under conditional sale or other title retention agreements relating to Property purchased by such Person (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business),
(d) all obligations of such Person issued or assumed as the deferred purchase price of Property or services purchased by such Person (other than trade debt incurred in the ordinary course of business and due within six months of the incurrence
thereof) which would appear as liabilities on a balance sheet of such Person, (e) all obligations of such Person under take-or-pay or similar arrangements or under commodities agreements under which such Person must make payments
notwithstanding the failure of the counter-party to deliver the goods or services which such counter-party is required to deliver thereunder (and, for the avoidance of doubt shall not include arrangements under which such Person must pay for
capacity or availability that must be delivered or made available to entitle the counter-party to payment, notwithstanding that such Person may not use such capacity or availability), (f) the implied principal component of all obligations of
such Person under Capital Leases, (g) all net obligations of such Person under Swap Contracts, (h) the maximum amount of all performance and standby letters of credit issued or bankers’ acceptances facilities created for the account
of such Person and, without duplication, all drafts drawn thereunder (to the extent unreimbursed), (i) all preferred Capital Stock issued by such Person and which by the terms thereof could be (at the request of the holders thereof or
otherwise) subject to mandatory sinking fund payments, redemption or other acceleration (other than as a result of a Change of Control or an Asset Disposition that does not in fact result in a redemption of such preferred Capital Stock) at any time
prior to the Maturity Date, (j) the principal portion of all obligations of such Person under Synthetic Lease Obligations and other Off-Balance Sheet Liabilities (excluding Operating Leases to the extent they would otherwise be included),
(k) all obligations of such Person to repurchase any securities issued by such Person at any time prior to the Maturity Date which repurchase obligations are related to the issuance thereof, including, without limitation, obligations commonly
known as residual equity appreciation potential shares, (l) the aggregate amount of uncollected accounts receivable of such Person subject at such time to a sale of receivables (or similar transaction) (whether or not such transaction would be
reflected on the balance sheet of such Person in accordance with GAAP), (m) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or
payable out of the proceeds of production from, Property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed, (n) all Guarantees of such Person with respect to Indebtedness of another Person and
(o) the Indebtedness of any partnership or unincorporated joint venture in which such Person is a general partner or a joint venturer to the extent such Indebtedness is recourse to such Person. 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. 
 “Indemnitee” has the meaning set forth in Section 10.05(b). 
 “Information” has the meaning specified in Section 10.08. 
  

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 “Initial Collateral Report” means that certain Addendum to an Appraisal of Potlatch
Timberland Property Timber and Timberland Appraisal Separating the Core and Non-Core Northwest Properties of Potlatch dated November 13, 2008 and prepared by Philip Tedder Inc. 
 “Interest Coverage Ratio” means, as of the end of any fiscal quarter of the Consolidated Parties, the ratio of (a) Consolidated
EBITDDA as of such date to (b) Consolidated Interest Expense as of such date. 
 “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
(3) months, the respective dates that fall every three (3) 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 (6) months thereafter, as selected by the Administrative
Borrower in the Committed Loan Notice; provided further 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. 
 “Internal Control Event” means a material weakness in, or fraud that involves management or other employees who have a significant role
in, any Borrower’s internal controls over financial reporting, in each case as described in the Securities Laws. 
 “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, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person whether or not constituting a business unit or product line, including the purchase of timber or
timberlands but excluding (i) the purchase of inventory and supplies in the ordinary course of business and (ii) any acquisition of assets to the extent such acquisition is included as a component of Consolidated Capital Expenditures. 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. 
  

 18 

 “Involuntary Disposition” means any loss of, damage to or destruction of, or any
condemnation or other taking for public use of, any Property of any Consolidated Party. 
 “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 (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 a Borrower (or any
Subsidiary) or in favor the L/C Issuer and relating to any such Letter of Credit. 
 “Joinder Agreement” means a Joinder
Agreement substantially in the form of Exhibit F hereto, executed and delivered by a new Guarantor in accordance with the provisions of Section 6.11. 
 “Judgment Currency” has the meaning specified in Section 10.20. 
 “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. All L/C Advances shall be denominated in Dollars. 
 “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. All L/C Borrowings shall be denominated in Dollars. 
 “L/C Credit
Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the renewal or increase of the amount thereof. 
 “L/C Documents” means, with respect to any Letter of Credit, such Letter of Credit, any amendments thereto, any documents delivered in
connection therewith, any application therefor, and any agreements, instruments, guarantees or other documents (whether general in application or applicable only to such Letter of Credit) governing or providing for (i) the rights and
obligations of the parties concerned or at risk or (ii) any collateral security for such obligations. 
 “L/C Issuer”
means Bank of America in its capacity as issuer of Letters of Credit hereunder, any Discretionary L/C Issuer, any Lender that has issued an Existing Letter of Credit, or any successor issuer of Letters of Credit hereunder. 
  

 19 

 “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 1.10. 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 L/C Issuer and the Swing Line Lender. 
 “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 Administrative Borrower and the Administrative Agent. 
 “Letter of Credit” means any standby letter of credit issued hereunder and shall include the Existing Letters of Credit. A Letter of Credit may be issued in Dollars or in an Alternative Currency. 
 “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 thirty (30) 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 Sublimit” means an amount equal to THIRTY-FIVE MILLION DOLLARS ($35,000,000). 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), other
security interest or charge (including any conditional sale or other title retention agreement, and any financing lease having substantially the same economic effect as any of the foregoing, but excluding operating leases). 
 “Loan” means an extension of credit by a Lender to the Borrowers under Article II in the form of a Committed Loan or a Swing Line
Loan. 
 “Loan Documents” means this Agreement, each Note, each Joinder Agreement, the Fee Letter, the Collateral Documents,
each Secured Swap Contract, each Secured Cash Management Agreement; provided that for purposes of the definition of “Material Adverse Effect” and Articles IV through IX, “Loan Documents” shall not include Secured Swap Contracts
or Secured Cash Management Agreements. 
 “Loan Parties” means, collectively, the Borrowers and each Guarantor. 

 

 20 

 “Mandatory Cash Collateralization Date” has the meaning specified in
Section 2.03(b)(vii). 
 “Material Adverse Effect” means (a) a material adverse effect upon the operations,
business, assets, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Borrowers or the Borrowers and their Subsidiaries taken as a whole; (b) a material impairment of the ability of the
Borrowers or the Borrowers and their Subsidiaries taken as a whole to perform its material obligations under any Loan Document to which it is a party; or (c) a material adverse effect upon the material rights and remedies of the Administrative
Agent and the Lenders under the Loan Documents. 
 “Material Asset Disposition” means any Asset Disposition (whether
voluntary or involuntary) made by the Borrower or any of its Subsidiaries pursuant to Section 7.05(e) that, when taken together with all concurrent or prior Asset Dispositions over the term of this Agreement, causes the aggregate fair
market value of the Property disposed of pursuant to all such Asset Dispositions to exceed $300,000,000; provided that the Spin-off shall be excluded from such calculations. 
 “Material Domestic Subsidiary” means any Domestic Subsidiary that is a Material Subsidiary. 
 “Material Foreign Subsidiary” means any foreign Subsidiary that is a Material Subsidiary. 
 “Material Subsidiary” means as of any date of determination any Subsidiary, that together with its Subsidiaries on a consolidated basis,
accounts for (or to which may be attributed) 5% or more of the Consolidated Total Assets of the Consolidated Parties. 
 “Maturity
Date” means December 8, 2013. 
 “Medium-Term Notes” means the Medium-Term Notes due 9 months to 30 years from
date of issue issued by Potlatch Forest pursuant to the Indenture, dated as of November 27, 1990, to U.S. Bank National Association, successor to Bankers Trust Company of California, National Association, as trustee, as amended, restated
supplemented or modified from time to time. 
 “Moody’s” means Moody’s Investors Service, Inc. and any successor
thereto. 
 “Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA
and subject to Title IV of ERISA, to which any 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. 
 “Multiple Employer Plan” means a Plan (other than a Multiemployer Plan) which any Consolidated Party or any ERISA Affiliate and at least
one employer other than the Consolidated Parties or any ERISA Affiliate are contributing sponsors. 
  

 21 

 “Net Cash Proceeds” means the aggregate cash or Cash Equivalents proceeds received by
any Consolidated Party in respect of any Material Asset Disposition, net of (a) direct costs (including, without limitation, legal, accounting and investment banking fees, and sales commissions), (b) taxes paid or payable as a result
thereof and (c) the amount necessary to Repay any Indebtedness either secured by a Permitted Lien on the related Property or incurred in connection with the Property that is included in such Asset Disposition; it being understood that “Net
Cash Proceeds” shall include, without limitation, any cash or Cash Equivalents received upon the sale or other disposition of any non-cash consideration received by any such Consolidated Party in any Asset Disposition; provided that the
Net Cash Proceeds shall be only that portion of the cash proceeds from all Asset Dispositions made during the term of this Agreement pursuant to Section 7.05(e) that are in excess of $300,000,000 in the aggregate for all such Asset
Dispositions. In addition, the “Net Cash Proceeds” of any Asset Disposition shall include any other amounts which constitute “Net Proceeds” (or any comparable term) of such transaction under, and as defined in the documents
evidencing or governing any Subordinated Indebtedness. 
 “Note” means a promissory note made by the Borrowers in favor of a
Lender evidencing Loans made by such Lender, substantially in the form of Exhibit C. 
 “Notice of Prepayment” means
a notice of prepayment of Loans pursuant to Section 2.05(a), which shall be substantially in the form of Exhibit G. 
 “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 and including (i) 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 and (ii) all such advances to, and debts,
liabilities, obligations, covenants and duties of, any Loan Party arising under (x) any Secured Swap Contract and (y) any Secured Cash Management Agreement. 
 “Off-Balance Sheet Liabilities” means, with respect to any Person as of any date of determination thereof, without duplication and to the extent not included as a liability on the consolidated balance
sheet of such Person and its Subsidiaries in accordance with GAAP: (a) with respect to any asset securitization or similar transaction (including any accounts receivable purchase facility) (i) the unrecovered investment of purchasers or
transferees of assets so transferred and (ii) any other payment, recourse, repurchase, hold harmless, indemnity or similar obligation of such Person or any of its Subsidiaries in respect of assets transferred or payments made in respect
thereof, other than limited recourse provisions that are customary for transactions of such type and that neither (x) have the effect of limiting the loss or credit risk of such purchasers or transferees with respect to payment or performance
by the obligors of the assets so transferred nor (y) impair the characterization of the transaction as a true sale under applicable Laws (including Debtor Relief Laws); or (b) the monetary obligations under any financing lease (excluding
any operating lease) or so-called “synthetic,” tax retention or off-balance sheet lease transaction which, upon the application of any Debtor Relief Law to such Person or any of its Subsidiaries, would be characterized as indebtedness; or
(c) the monetary obligations under any sale and leaseback transaction which does not create a liability on the consolidated balance sheet of such Person and its Subsidiaries; or (d) any other monetary 

  

 22 

 
obligation arising with respect to any other transaction which (i) upon the application of any Debtor Relief Law to such Person or any of its
Subsidiaries, would be characterized as indebtedness or (ii) is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the consolidated balance sheet of such Person and its Subsidiaries (for
purposes of this clause (d), any transaction structured to provide tax deductibility as interest expense of any dividend, coupon or other periodic payment will be deemed to be the functional equivalent of a borrowing). 
 “Off-Cycle Timberland Appraisal” means (i) any appraisal of the Pledged Timberlands conducted by an Approved Appraiser at the
expense and direction of the Borrowers following a request by the Collateral Agent or the Required Lenders in accordance with Section 6.15 or (ii) an appraisal by an Approved Appraiser of Timberlands acquired by the Borrowers or any
of their Subsidiaries after the Closing Date which are added as Pledged Timberlands in accordance with Section 6.13(c) or (d), which, in each case, shall include an aggregate value for the Pledged Timberlands, an indication of the
aggregate acreage for such Pledged Timberlands and an average per acre value for such Pledged Timberlands, all in form and detail reasonably satisfactory to the Collateral Agent. 
 “Opening Timberland Appraisal” means (x) that appraisal of the Timberlands dated as of November 10, 2008 prepared by Philip
Tedder Inc. and delivered to the Collateral Agent and the Administrative Agent on or before the Closing Date and (y) the Initial Collateral Report. 
 “Operating Lease” means, as applied to any Person, any lease (including, without limitation, leases which may be terminated by the lessee at any time) of any Property (whether real, personal or mixed)
which is not a Capital Lease other than any such lease in which that Person is the lessor. 
 “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. 
 “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 Dollar Equivalent of the aggregate outstanding 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 of outstanding unpaid drawings under any Letters of
Credit or any reductions in the maximum amount available for drawing under Letters of Credit taking effect on such date. 
  

 23 

 “Overnight Rate” means, for any day, (a) with respect to any amount denominated in
Dollars, the Federal Funds Rate for that day, and (b) with respect to any amount denominated in an Alternative Currency, the rate of interest per annum at which overnight deposits in the applicable Alternative Currency, in an amount
approximately equal to the amount with respect to which such rate is being determined, would be offered for such day by a branch or Affiliate of Bank of America in the applicable offshore interbank market for such currency to major banks in such
interbank market. 
 “Participant” has the meaning specified in Section 10.07(d). 
 “Participating Member State” means each state so described in any EMU Legislation. 
 “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 a Borrower or any ERISA Affiliate or to which any 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
(i) an Acquisition or (ii) an acquisition of timber or timberlands, in each case, by any Borrower or any Subsidiary of a Borrower that is permitted pursuant to the terms of Section 7.06(g). 
 “Permitted Asset Disposition” means any Asset Disposition permitted by Section 7.05. 
 “Permitted Investments” means, at any time, Investments by the Consolidated Parties permitted to exist at such time pursuant to the
terms of Section 7.06. 
 “Permitted Liens” means, at any time, Liens in respect of Property of the Consolidated
Parties permitted to exist at such time pursuant to the terms of Section 7.02. 
 “Person” means any natural
person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
 “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by a 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. 
 “Pledge Agreement” means that certain Pledge Agreement dated as of the date hereof
among the Borrowers and the Administrative Agent, as amended, restated, supplemented or modified from time to time. 
 “Pledged
Timberlands” means as of any date, Timberlands then constituting Collateral. 
 “Potlatch” has the meaning
specified in the introductory paragraph hereto. 
  

 24 

 “Potlatch Forest” has the meaning specified in the introductory paragraph hereto.

 “Potlatch Land & Lumber” has the meaning specified in the introductory paragraph hereto. 
 “Pro Forma Basis” means, for purposes of calculating (utilizing the principles set forth in Section 1.03(b)) compliance with
each of the financial covenants set forth in Section 6.10(a)-(c) in respect of a proposed transaction, that such transaction shall be deemed to have occurred as of the first day of the four fiscal-quarter period ending as of the
most recent fiscal quarter end preceding the date of such transaction with respect to which the Administrative Agent has received the Required Financial Information. As used herein, “transaction” shall mean (i) any incurrence
or assumption of Indebtedness as referred to in Section 7.01(f), (ii) any Asset Disposition as referred to in Section 7.05, (iii) any Acquisition as referred to in Section 7.06(g), (iv) any
Restricted Payment as referred to in Section 7.07(c) or (v) to the extent not otherwise captured pursuant to clauses (i) – (iv), the Spin-off. In connection with any calculation of the financial covenants set forth in
Section 6.10(a)-(c) upon giving effect to a transaction on a Pro Forma Basis: 
 (A) for purposes of any such calculation in
respect of any incurrence or assumption of Indebtedness as referred to in Section 7.01(f), any Indebtedness which is retired in connection with such transaction shall be excluded and deemed to have been retired as of the first day of the
applicable period; 
 (B) for purposes of any such calculation in respect of any Asset Disposition as referred to in Section 7.05
or the Spin-off, (1) income statement items (whether positive or negative) attributable to the Property disposed of shall be excluded and (2) any Indebtedness which is retired in connection with such transaction shall be excluded and
deemed to have been retired as of the first day of the applicable period; and 
 (C) for purposes of any such calculation in respect of any
Acquisition as referred to in Section 7.06(g), (1) any Indebtedness incurred by any Consolidated Party in connection with such transaction (x) shall be deemed to have been incurred as of the first day of the applicable period
and (y) if such Indebtedness has a floating or formula rate, shall have an implied rate of interest for the applicable period for purposes of this definition determined by utilizing the rate which is or would be in effect with respect to such
Indebtedness as at the relevant date of determination, (2) income statement items (whether positive or negative) attributable to the Person or Property acquired shall be included beginning as of the first day of the applicable period and
(3) pro forma adjustments may be included to the extent that such adjustments would be permitted under GAAP and give effect to events that are (x) directly attributable to such transaction, (y) expected to have a continuing impact on
the Consolidated Parties and (z) factually supportable. 
 (D) for purposes of any such calculation in connection with the making of any
Restricted Payment referred to in Section 7.07(c), any Indebtedness incurred (or to be incurred) by any Consolidated Party in connection with such payment or repurchases shall be deemed to have been incurred as of the first day of the
applicable period. 
  

 25 

 “Pro Forma Compliance Certificate” means a certificate of a Responsible Officer of the
Administrative Borrower delivered to the Administrative Agent in connection with (i) any incurrence or assumption of Indebtedness as referred to in Section 7.01(f), (ii) any Asset Disposition as referred to in
Section 7.05, (iii) any Acquisition as referred to in Section 7.06(g) and (iv) any Restricted Payment made pursuant to Section 7.07(c), as applicable, and containing reasonably detailed calculations,
upon giving effect to the applicable transaction on a Pro Forma Basis, of the Funded Indebtedness to Capitalization Ratio, the Interest Coverage Ratio and Collateral Coverage Ratio as of the most recent fiscal quarter end preceding the date of the
applicable transaction with respect to which the Administrative Agent shall have received the Required Financial Information. 
 “Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible. 
 “Ratably Secured Obligations” means, collectively, (i) the obligations and liabilities of Potlatch Forest under the 6.95% Debentures, (ii) the obligations and liabilities of Potlatch Forest
under the Credit Sensitive Debentures and (iii) the obligations and liabilities of Potlatch Forest under the Medium-Term Notes. 
 “Register” has the meaning set forth in Section 10.07(c). 
 “REIT” means a Real
Estate Investment Trust as defined in Sections 856-860 of the Code. 
 “Related Parties” means, with respect to any Person,
such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s Affiliates. 
 “Repay” or “Repayment” means with respect to Indebtedness, to permanently pay, prepay, redeem, repurchase, retire, defease (including by way of depositing money or securities with the
trustee with respect thereto before due for the purpose of paying when due), establish a sinking fund or similar payment or acquire for value. 
 “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 Financial Information” means, with respect to each fiscal period or quarter of the Borrowers, (a) the financial statements required to be delivered pursuant to
Section 6.01(a) or (b) for such fiscal period or quarter, and (b) the certificate of a Responsible Officer of Potlatch required by Section 6.01(c) to be delivered with the financial statements described in
clause (a) above. 
  

 26 

 “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” of any Person means any of the chief executive officer, chief operating officer, president, vice president, chief
financial officer, treasurer or other duly elected officer of such Person. 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 (i) any dividend or other payment or distribution, direct or indirect, on account of any shares of any class of Capital Stock of any Consolidated Party, now or
hereafter outstanding (including without limitation any payment in connection with any dissolution, merger, consolidation or disposition involving any Consolidated Party) to the holders, in their capacity as such, of any shares of any class of
Capital Stock of any Consolidated Party, now or hereafter outstanding (other than dividends or distributions payable in Capital Stock of the applicable Person and dividends or distributions payable (directly or indirectly through Subsidiaries) to a
Borrower), (ii) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of Capital Stock of any Consolidated Party, now or hereafter outstanding,
(iii) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of Capital Stock of any Consolidated Party, now or hereafter outstanding, and (iv) any
payment or prepayment of principal of, or premium, if any, on (including any redemption, purchase, retirement, defeasance, sinking fund or similar payment with respect to) any Subordinated Indebtedness. Notwithstanding the foregoing, the term
Restricted Payment shall not include any redemption of share purchase rights issued pursuant to any customary shareholder rights plan implemented by Potlatch from time to time (as the same may be amended from time to time), for a redemption price
not to exceed $0.01 per share purchase right. 
 “Revaluation Date” means with respect to any Letter of Credit, each of the
following: (a) each date of issuance of any Letter of Credit, (b) each date of an amendment of any Letter of Credit having the effect of increasing the amount thereof (solely with respect to the increased amount), (c) each date of any
payment by the L/C Issuer of any Letter of Credit denominated in an Alternative Currency, (d) the last Business Day of each calendar month and (e) such additional dates as the Administrative Agent or the L/C Issuer shall require.

  

 27 

 “S&P” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc. and any successor thereto. 
 “Sale and Leaseback Transaction” means any arrangement pursuant to
which any Consolidated Party, directly or indirectly, becomes liable as lessee, guarantor or other surety with respect to any lease, whether an Operating Lease or a Capital Lease, of any Property (a) which such Consolidated Party has sold or
transferred (or is to sell or transfer) to a Person which is not a Consolidated Party or (b) which such Consolidated Party intends to use for substantially the same purpose as any other Property which has been sold or transferred (or is to be
sold or transferred) by such Consolidated Party to another Person which is not a Consolidated Party in connection with such lease, provided that any transaction that satisfies the conditions in preceding subsection (a) or (b) shall not
constitute a “Sale and Leaseback Transaction” where lessor under such lease is organized under the laws of a jurisdiction outside of the United States, the Property is located in the United States and the obligations in respect of the
lease or incurred in connection therewith for which the Consolidated Party is liable have been defeased. 
 “Same Day Funds”
means (a) with respect to disbursements and payments in Dollars, immediately available funds, and (b) with respect to disbursements and payments in an Alternative Currency, same day or other funds as may be determined by the Administrative
Agent or the L/C Issuer, as applicable, to be customary in the place of disbursement or payment for the settlement of international banking transactions in the relevant Alternative Currency. 
 “Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002. 
 “SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions. 
 “Secured Cash Management Agreement” means any Cash Management Agreement that is entered into by and between any Loan Party and any Cash
Management Bank. 
 “Secured Creditors” means the Secured Lender Parties, the holders of the 6.95% Debentures, the holders
of the Credit Sensitive Debentures and the holders of the Medium-Term Notes. 
 “Secured Lender Parties” means,
collectively, the Administrative Agent, the Lenders, the L/C Issuer, the Hedge Banks, the Cash Management Banks, each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 9.05, 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. 
 “Secured Obligations” means collectively, the Obligations and the Ratably Secured Obligations. 
 “Secured
Swap Contract” means any Swap Contract permitted under Article VII of the Credit Agreement that is entered into by and between any Loan Party and any Hedge Bank. 
  

 28 

 “Securities Laws” means the Securities Act of 1933, the Securities Exchange Act of 1934,
Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the Public Company Accounting Oversight Board, as each of the foregoing may be amended and in
effect on any applicable date hereunder. 
 “Separation Agreement” means an agreement substantially similar in the form of
that certain Separation and Distribution Agreement to be entered into between Potlatch and Clearwater, which has been filed with the SEC as Exhibit 2.1 to Clearwater’s Form 10 filed on November 6, 2008. 
 “Single Employer Plan” means any Plan which is covered by Title IV of ERISA, but which is not a Multiemployer Plan or a Multiple
Employer Plan. 
 “Solvent” or “Solvency” means, with respect to any Person as of a particular date, that
on such date (i) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (ii) such Person does not intend to, and does not believe that it
will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature in their ordinary course, (iii) such Person is not engaged in a business or a transaction, and is not about to engage in a business
or a transaction, for which such Person’s Property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged or is to engage, (iv) the fair market
value of the Property of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person and (v) the present fair market 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. In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the
amount which, in 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. 
 “SPC” has the meaning specified in Section 10.07(h). 
 “Special Pledged Timberland Valuation Report” means a report prepared by an Approved Appraiser which refers to a prior Opening
Timberland Appraisal and/or Timberland Appraisal Update and indicates (x) with respect to a disposition or release of Pledged Timberlands, the aggregate value of the Pledged Timberlands being disposed of or released or (y) with respect to
the addition of new Pledged Timberlands which were previously part of the Timberlands that were subject to the Opening Timberland Appraisal and/or a Timberland Appraisal Update, the aggregate value of such newly Pledged Timberlands, in each case in
form and detail reasonably satisfactory to the Collateral Agent. 
 “Specified Impacted Timberlands” has the meaning set
forth in Section 6.01(i). 
 “Spin-off” means the Separation (as defined in the Separation Agreement) and the
Distribution (as defined in the Separation Agreement) pursuant to the Separation Agreement. 
 “Spot Rate” for a currency
means the rate determined by the Administrative Agent or the L/C Issuer, as applicable, to be the rate quoted by the Person acting in such capacity as the spot rate for the purchase by such Person of such currency with another currency through its
principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to the date as of which the foreign exchange computation is made; provided that the 

  

 29 

 
Administrative Agent or the L/C Issuer may obtain such spot rate from another financial institution designated by the Administrative Agent or the L/C Issuer
if the Person acting in such capacity does not have as of the date of determination a spot buying rate for any such currency; and provided further that the L/C Issuer may use such spot rate quoted on the date as of which the foreign
exchange computation is made in the case of any Letter of Credit denominated in an Alternative Currency. 
 “Subordinated
Indebtedness” means any Indebtedness of the Borrowers which by its terms is subordinated to the Obligations in a manner and to an extent acceptable to the Required Lenders. 
 “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 a 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. 
 “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” means the revolving credit facility made available by the Swing Line Lender pursuant to Section 2.04. 
  

 30 

 “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) TWENTY MILLION DOLLARS ($20,000,000) 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). In no event shall any Operating Lease be construed as a Synthetic Lease Obligation. 
 “Timberland Appraisal Updates” means any Annual Timberland Appraisal Update and, to the extent such Off-Cycle Timberland Appraisal relates to Pledged Timberlands, such Off-Cycle Timberland Appraisal,
individually or collectively, as appropriate. 
 “Timberland Mortgages” means, collectively, the mortgage, security
agreement, assignment of rents and leases and fixture filing documents dated as of the Closing Date relating to the Pledged Timberlands executed by and from the Borrowers and the other Loan Parties for the benefit of the Collateral Agent,
substantially in the form of Exhibit H to this Agreement, as the same may be amended from time to time, and each additional mortgage, trust deed or deed of trust relating to the Pledged Timberlands that may from time to time be executed and
delivered by the Loan Parties in favor of the Administrative Agent in accordance with the terms hereof. 
 “Timberlands”
means all the timberlands from time to time owned by the Loan Parties. 
 “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. 
 “United States” and “U.S.” mean the United States of
America. 
 “Unreimbursed Amount” has the meaning set forth in Section 2.03(c)(i). 
  

 31 

	 	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, Preliminary Statements, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Preliminary Statements, 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, and (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. 
 (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. 
  

	 	1.03 	Accounting Terms. 

 (a) 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. 

 

 32 

 (b) 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 Administrative Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrowers 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 Administrative 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. 
 (c)
Notwithstanding the above, the parties hereto acknowledge and agree that, for purposes of all calculations made under the financial covenants set forth in Section 6.10 (including without limitation for purposes of the definitions of
“Applicable Rate” and “Pro Forma Basis” set forth in Section 1.01), (i) after consummation of any Asset Disposition for consideration (cash and non-cash) in excess of $50,000,000 including the Spin-off and
(ii) after consummation of any Acquisition for an Investment for consideration (cash and non-cash) in excess of $50,000,000, such calculations shall be made on a Pro Forma Basis. 
  

	 	1.04 	Rounding. 

 Any financial ratios required to
be maintained by the Borrowers on a consolidated basis 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 	References to Agreements and Laws. 

 Unless
otherwise expressly provided herein, (a) references to Organization Documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions,
supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and (b) references to any Law shall include all
statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Law. 
  

	 	1.06 	Exchange Rates; Currency Equivalents. 

 (a)
The Administrative Agent or the L/C Issuer, as applicable, shall determine the Spot Rates as of each Revaluation Date to be used for calculating Dollar Equivalent amounts of Credit Extensions and Outstanding Amounts denominated in Alternative
Currencies. Such Spot Rates shall become effective as of such Revaluation Date and shall be the Spot Rates employed in converting any amounts between the applicable currencies until the next Revaluation Date to occur. Except for purposes of
financial statements delivered by Loan Parties hereunder or calculating financial covenants hereunder or except as otherwise provided herein, the applicable amount of any currency (other than Dollars) for purposes of the Loan Documents shall be such
Dollar Equivalent amount as so determined by the Administrative Agent or the L/C Issuer, as applicable. 
  

 33 

 (b) Wherever in this Agreement in connection with the issuance, amendment or extension of a Letter of
Credit, an amount, such as a required minimum or multiple amount, is expressed in Dollars, but such Letter of Credit is denominated in an Alternative Currency, such amount shall be the relevant Alternative Currency Equivalent of such Dollar amount
(rounded to the nearest unit of such Alternative Currency, with 0.5 of a unit being rounded upward), as determined by the Administrative Agent or the L/C Issuer, as applicable. 
  

	 	1.07 	Additional Alternative Currencies. 

 The
Administrative Borrower may from time to time request that Letters of Credit be issued in a currency other than those specifically listed in the definition of “Alternative Currency;” provided that such requested currency is a lawful
currency (other than Dollars) that is readily available and freely transferable and convertible into Dollars. Such request shall be subject to the approval of the Administrative Agent and the L/C Issuer. Any such request shall be made to the
Administrative Agent not later than 11:00 a.m., twenty (20) Business Days prior to the date of the desired Credit Extension (or such other time or date as may be agreed by the Administrative Agent and the L/C Issuer, in their sole discretion).
The L/C Issuer shall notify the Administrative Agent, not later than 11:00 a.m., ten (10) Business Days after receipt of such request whether it consents, in its sole discretion, to the issuance of Letters of Credit in such requested currency.
Any failure by the L/C Issuer to respond to such request within the time period specified in the preceding sentence shall be deemed to be a refusal by the L/C Issuer to permit Letters of Credit to be issued in such requested currency. If the
Administrative Agent and the L/C Issuer consent to the issuance of Letters of Credit in such requested currency, the Administrative Agent shall so notify the Administrative Borrower and such currency shall thereupon be deemed for all purposes to be
an Alternative Currency hereunder for purposes of any Letter of Credit issuances. If the Administrative Agent shall fail to obtain consent to any request for an additional currency under this Section 1.07, the Administrative Agent shall
promptly so notify the Administrative Borrower. 
  

	 	1.08 	Change of Currency. 

 (a) Each obligation of
the Borrowers to make a payment denominated in the national currency unit of any member state of the European Union that adopts the Euro as its lawful currency after the date hereof shall be redenominated into Euro at the time of such adoption (in
accordance with the EMU Legislation). If, in relation to the currency of any such member state, the basis of accrual of interest expressed in this Agreement in respect of that currency shall be inconsistent with any convention or practice in the
London interbank market for the basis of accrual of interest in respect of the Euro, such expressed basis shall be replaced by such convention or practice with effect from the date on which such member state adopts the Euro as its lawful currency;
provided that if any Credit Extension in the currency of such member state is outstanding immediately prior to such date, such replacement shall take effect, with respect to such Credit Extension, at the end of the then current Interest
Period. 
  

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 (b) Each provision of this Agreement shall, upon written notice to the Administrative Borrower explaining
the basis for such construction, be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify to be appropriate to reflect the adoption of the Euro by any member state of the European Union and any
relevant market conventions or practices relating to the Euro. 
 (c) Each provision of this Agreement also shall, upon written notice to the
Administrative Borrower explaining the basis for such construction, be subject to such reasonable changes of construction as the Administrative Agent may from time to time specify to be appropriate to reflect a change in currency of any other
country and any relevant market conventions or practices relating to the change in currency. 
  

	 	1.09 	Times of Day. 

 Unless otherwise specified,
all references herein to times of day shall be references to Pacific time (daylight or standard, as applicable). 
  

	 	1.10 	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 
 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”) for the account of any Borrower as designated by the Administrative Borrower pursuant to Section 2.02(a) 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 less, at any time while the Credit Sensitive Debentures are outstanding (other than to the extent a Committed Borrowing is requested the proceeds of which
are to be used, as reasonably determined by the Administrative Agent, to Repay and Fully Satisfy the amounts owing under the Credit Sensitive Debentures), the Availability Reserve 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. Within the limits of each Lender’s Commitment, and subject to the other terms and conditions hereof, any of the Borrowers 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. 
  

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	 	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 irrevocable notice from the Administrative Borrower to the
Administrative Agent, which may be given by telephone (provided that such telephonic notice complies with the information requirements of the form of Committed Loan Notice attached hereto). 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 Loans, and
(ii) on the requested date of any Borrowing of Base Rate Committed Loans. Each telephonic notice by the Administrative 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 Administrative Borrower. Each Borrowing of, conversion to or continuation of Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a
whole multiple of $1,000,000 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) the applicable Borrower to which the proceeds of the Loan shall be disbursed, (ii) whether the Administrative Borrower is requesting a
Committed Borrowing, a conversion of Committed Loans from one Type to the other, or a continuation of Eurodollar Rate Loans, (iii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business
Day), (iv) the principal amount of Committed Loans to be borrowed, converted or continued, (v) the Type of Committed Loans to be borrowed or to which existing Committed Loans are to be converted, and (vi) if applicable, the duration
of the Interest Period with respect thereto. If the Administrative Borrower fails to specify a Type of Committed Loan in a Committed Loan Notice or if the Administrative 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 Administrative 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. Notwithstanding the foregoing, all Borrowings made on the Closing Date shall be made as Base Rate Loans unless the Administrative Agent shall have received an appropriate funding indemnity letter (covering those Lenders
not party to the Existing Credit Agreement) executed by the Borrowers and reasonably acceptable to the Administrative Agent at least three (3) Business Days prior to the Closing Date. In addition, notwithstanding anything to the contrary
herein, a Swing Line Loan may not be converted to a Eurodollar Rate Loan. 
 (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 Administrative Borrower, the
Administrative Agent shall notify each Lender of the details of any 

  

 36 

 
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 funds so received available to the applicable Borrower designated
to receive the proceeds of the Loan in the Committed Loan Notice in like funds as received by the Administrative Agent either by (i) crediting the account of the applicable 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 Administrative Borrower; provided, however, that if, on the date the
Committed Loan Notice with respect to such Borrowing is given by the Administrative Borrower, there are L/C Borrowings outstanding, then the proceeds of such Borrowing shall be applied, first, to the payment in full of any such L/C
Borrowings, and second, to the applicable 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 a 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 Administrative Borrower and the Lenders of the interest rate
applicable to any Interest Period for Eurodollar Rate Loans upon determination of such interest rate. The determination of the Eurodollar Rate by the Administrative Agent shall be conclusive in the absence of manifest error. At any time that Base
Rate Loans are outstanding, the Administrative Agent shall notify the Administrative 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, all
continuations of Committed Loans as the same Type and all Swing Line Loans, the sum of (i) the number of Interest Periods in effect with respect to Committed Loans and (ii) Swing Line Loans shall not exceed ten (10) at any one time.

  

	 	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
denominated in Dollars or in one or more Alternative Currencies for the account of any Borrower or any Subsidiary, and to amend or extend Letters of Credit previously issued by it, in accordance with Section 2.03(b), 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 any of 

  

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the Borrowers 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 less, at any time while the Credit Sensitive Debentures are outstanding (other than to the extent a Committed Borrowing is requested the proceeds of which are to be
used, as reasonably determined by the Administrative Agent, to Repay and Fully Satisfy the amounts owing under the Credit Sensitive Debentures), the Availability Reserve and (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 Administrative Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a
representation by the Borrowers 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
Borrowers’ ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrowers 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. Each Letter of Credit Application shall be
prepared and signed by the Administrative Borrower; provided, however, that the Administrative Borrower shall be permitted to designate any Borrower, Subsidiary or other third party as the account party for the requested Letter of Credit,
although, notwithstanding such designation, the Borrowers shall be the actual account party for all purposes of this Agreement for such Letters of Credit and such designation shall not affect the Borrowers’ reimbursement obligations hereunder
with respect to such Letter of Credit. 
 (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 Lenders have approved such expiry date; or 
 (B) subject to
Section 2.03(b)(vii), 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 

  

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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; 
 (C) except as otherwise agreed to by the Administrative Agent
and the L/C Issuer, such Letter of Credit is in an initial stated amount less than $25,000 (or such lesser amount as may be agreed to by the Borrowers, the L/C Issuer and the Administrative Agent); 
 (D) such Letter of Credit is to be denominated in a currency other than Dollars or an Alternative Currency; 
 (E) such Letter of Credit contains any provisions for automatic reinstatement of the stated amount after any drawing thereunder; or

 (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 or an Impacted Lender hereunder, unless the L/C Issuer has entered into arrangements satisfactory to the L/C Issuer with the Borrowers 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. 
  

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 (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 Administrative 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 Administrative Borrower. Such Letter of Credit Application must
be received by the L/C Issuer and the Administrative Agent (A) not later than 11:00 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, of any Letter of Credit denominated in Dollars and (B) not later than 11:00 a.m. at least ten Business Days (or such later date and time as the L/C Issuer
may agree in a particular instance in its sole discretion) prior to the proposed issuance date or date of amendment, as the case may be, of any Letter of Credit denominated in an Alternative Currency. 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 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 (1) the Letter of Credit to be amended; (2) the proposed date of amendment thereof (which shall be a Business
Day); (3) the nature of the proposed amendment; and (4) such other matters as the L/C Issuer may require. Additionally, the Borrower for whose account the Letter of Credit is being issued shall furnish through the Administrative Borrower
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. 
 (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 Administrative 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 for whose
account the Letter of Credit is being issued 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. 
  

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 (iii) If the Administrative Borrower so requests in any applicable Letter of Credit
Application, the L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that 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. Unless otherwise directed by the L/C Issuer, the Administrative 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 five (5) 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 a 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) If the Administrative Borrower so requests in any applicable Letter of
Credit Application, the L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit that permits the automatic reinstatement of all or a portion of the stated amount thereof after any drawing thereunder (each, an
“Auto-Reinstatement Letter of Credit”). Unless otherwise directed by the L/C Issuer, the Administrative Borrower shall not be required to make a specific request to the L/C Issuer to permit such reinstatement. Once an
Auto-Reinstatement Letter of Credit has been issued, except as provided in the following sentence, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to reinstate all or a portion of the stated amount thereof in
accordance with the provisions of such Letter of Credit. Notwithstanding the foregoing, if such Auto-Reinstatement Letter of Credit permits the L/C Issuer to decline to reinstate all or any portion of the stated amount thereof after a drawing
thereunder by giving notice of such non-reinstatement within a specified number of days after such drawing (the “Non-Reinstatement Deadline”), the L/C Issuer shall not permit such reinstatement if it has received a notice (which may
be by telephone or in writing) on or before the day that is seven Business Days before the Non-Reinstatement Deadline (A) from the Administrative Agent that the Lenders have elected not to permit such reinstatement or (B) 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 (treating such reinstatement as an L/C Credit Extension for purposes of this clause) and, in
each case, directing the L/C Issuer not to permit such reinstatement. 
  

 41 

 (v) 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 Administrative Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment. 

(vi) Any Lender with a Commitment (in such capacity, a “Discretionary L/C Issuer”) may from time to time, at the
written request of the Administrative Borrower (with a copy to the Administrative Agent) and with the consent of the Administrative Agent (such consent not to be unreasonably withheld), and in such Lender’s sole discretion, agree to issue one
or more Letters of Credit for the account of the Borrower designated in such request on the same terms and conditions in all respects as are applicable to the Letters of Credit issued by the L/C Issuer hereunder by executing and delivering to the
Administrative Agent a written agreement to such effect, among (and in form and substance satisfactory to) the Borrowers, the Administrative Agent and such Discretionary L/C Issuer. With respect to each of the Letters of Credit issued (or to be
issued) thereby, each of the Discretionary L/C Issuers shall have all of the same rights and obligations under and in respect of this Agreement and the other Loan Documents, and shall be entitled to all of the same benefits (including, without
limitation, the rights, obligations and benefits set forth in Sections 2.03, 9.07 and 10.01), as are afforded to the L/C Issuer hereunder and thereunder. The Administrative Agent shall promptly notify each of the Lenders
with a Commitment of the appointment of any Discretionary L/C Issuer. Each Discretionary L/C Issuer shall provide to the Administrative Agent, on a monthly basis, a report that details the activity with respect to each Letter of Credit issued by
such Discretionary L/C Issuer (including an indication of the maximum amount then in effect with respect to each such Letter of Credit). 
 (vii) The L/C Issuer may, in its sole discretion, issue one or more Letters of Credit hereunder, with expiry dates that would occur after the Letter of Credit Expiration Date (and after the Maturity Date), to the
extent the Borrowers have agreed to fully Cash Collateralize the L/C Obligations relating to such Letters of Credit on the date that is five (5) Business Days prior to the Maturity Date (the “Mandatory Cash Collateralization
Date”) in accordance with the terms of Section 2.03(g). In the event the Borrowers fail to Cash Collateralize the outstanding L/C Obligations on the Mandatory Cash Collateralization Date, each outstanding Letter of Credit shall
automatically be deemed to be drawn in full and the Borrowers shall be deemed to have requested a Base Rate Committed Loan to be funded by the Lenders on the Mandatory Cash Collateralization Date to reimburse such drawing (with the proceeds of such
Loan being used to Cash Collateralize outstanding L/C Obligations as set forth in Section 2.03(g)) in accordance with the provisions of Section 2.03(c). If a Base Rate Committed Loan cannot be made because the conditions set
forth in Section 4.02 cannot be satisfied or for any other reason, the Borrowers shall be deemed to have incurred an L/C Borrowing from the L/C Issuer and each Lender shall be obligated to fund its Applicable Percentage of such L/C
Borrowing in the form of an L/C Advance in accordance with the provisions of Section 2.03(c) (with the proceeds of such L/C Advance being used to Cash Collateralize 

  

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outstanding L/C Obligations as set forth in Section 2.03(g)). The funding by a Lender of its Applicable Percentage of such Base Rate Committed
Loan or such L/C Advance, as applicable, to Cash Collateralize the outstanding L/C Obligations on the Mandatory Cash Collateralization Date shall be deemed payment by such Lender in respect of its participation interest in such L/C Obligations.

 (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 Administrative Borrower and the Administrative Agent thereof. Not later than 11:00 a.m. on the date of any payment by the L/C Issuer under a Letter of Credit to be reimbursed in Dollars, or the Applicable Time on the date of any
payment by the L/C Issuer under a Letter of Credit to be reimbursed in an Alternative Currency (each such date, an “Honor Date”), the Borrowers shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to
the amount of such drawing. In the case of a Letter of Credit denominated in Dollars, the Borrowers shall reimburse the L/C Issuer in Dollars. In the case of a Letter of Credit denominated in an Alternative Currency, the Borrowers shall reimburse
the L/C Issuer in Dollars unless the L/C Issuer (at its option) shall specify in such notice that it will require payment in the currency in which the drawing is made. In the case of any such reimbursement in Dollars of a drawing under a Letter of
Credit denominated in an Alternative Currency, the L/C Issuer shall notify the Administrative Borrower of the Dollar Equivalent of the amount of the drawing promptly following the determination thereof. If the Borrowers fail 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 Borrowers shall be deemed to have requested a Committed Borrowing of Base Rate Committed 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 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 (including the Lender
acting as L/C Issuer) 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 Dollars in an amount equal to its
Applicable Percentage of the Unreimbursed Amount not later than 11:00 a.m. 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 Borrowers in such amount. The Administrative Agent shall remit the funds so received to the L/C Issuer in Dollars, or if requested by the L/C Issuer, the equivalent
amount thereof in an Alternative Currency as determined by the Administrative Agent at such time on the basis of the Spot Rate (determined as of such funding date) for the purchase of such Alternative Currency with Dollars. 
  

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 (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 Borrowers 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. 
 (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 set-off, counterclaim, recoupment, defense or other right which such Lender may
have against the L/C Issuer, the Borrowers or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default; (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; or
(D) with respect to the obligation of each Lender to fund and satisfy its participation in an L/C Borrowing in accordance with this Section 2.03, the occurrence of the Letter of Credit Expiration Date or the Maturity Date or the
termination of the Commitments hereunder; 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 Administrative Borrower of a Committed Loan Notice). No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Borrowers 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 (it being understood that such customary fees shall not be subject to the indemnification 

  

 44 

 
obligations of the Borrowers pursuant to Section 10.5(b)). 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 Section 2.03(c)(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 Borrowers 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 10.06 (including pursuant to any settlement entered
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 Borrowers 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, set-off, defense or other right that any 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; 
  

 45 

 (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; 
 (v) any adverse change in the relevant exchange rates or in the availability of the relevant Alternative Currency to any Borrower or any
Subsidiary or in the relevant currency markets generally; or 
 (vi) 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, any Borrower or any Subsidiary. 
 The Administrative 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 Administrative Borrower’s’ instructions or other irregularity, the Administrative Borrower will immediately notify the L/C Issuer. The Borrowers 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. 
 (f) Role of L/C Issuer. Each Lender
and each 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 Borrowers hereby assume 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 Borrowers’ 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 Borrowers may have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Borrowers, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary,
damages suffered by the Borrowers which the Borrowers prove 

  

 46 

 
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, (A) 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 (B) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, the Borrowers shall, in each case, immediately Cash
Collateralize the then Outstanding Amount of all L/C Obligations. Sections 2.05(b) and 8.02(c) set forth certain additional requirements to deliver Cash Collateral hereunder. For purposes hereof, “Cash Collateralize”
means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the L/C Issuer and the Lenders, 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 Borrowers hereby grant to the Administrative Agent, for the benefit of
the L/C Issuer and the Lenders, 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, non-interest bearing deposit accounts at Bank of
America. If at any time the Administrative Agent determines that any funds held as Cash Collateral are subject to any right or claim of any Person other than the Administrative Agent or that the total amount of such funds is less than the aggregate
Outstanding Amount of all L/C Obligations, the Borrowers will, forthwith upon demand by the Administrative Agent, pay to the Administrative Agent, as additional funds to be deposited as Cash Collateral, an amount equal to the excess of (x) such
aggregate Outstanding Amount over (y) the total amount of funds, if any, then held as Cash Collateral that the Administrative Agent determines to be free and clear of any such right and claim. Upon the drawing of any Letter of Credit for which
funds are on deposit as Cash Collateral, such funds shall be applied, to the extent permitted under applicable Laws, to reimburse the L/C Issuer. 
 (h) Applicability of ISP. Unless otherwise expressly agreed by the L/C Issuer and the Borrowers 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 standby Letter of Credit. 
 (i) Letter of Credit Fees. The Borrowers shall pay to the Administrative Agent for the
account of each Lender in accordance with its Applicable Percentage in Dollars a Letter of Credit fee for each Letter of Credit equal to the Applicable Rate times the Dollar Equivalent of 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 1.10. Such letter of credit fees shall be
computed on a quarterly basis in arrears. Such letter of credit fees shall be due and payable on the first Business Day after the end of each March, June, September and December, commencing 

  

 47 

 
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. 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 Processing Charges Payable to L/C Issuer. The Borrowers shall pay directly to the L/C Issuer for its own account a fronting
fee in Dollars or such Alternative Currency as shall be separately agreed, for each Letter of Credit equal to 0.125% times the Dollar Equivalent of 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 1.10. Such letter of credit fees shall be computed on a quarterly basis in arrears. Such
fronting fee for each Letter of Credit shall be due and payable on the first 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. In addition, the Borrowers 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 in Dollars or such Alternative Currency as shall be separately agreed. 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. 
  

	 	2.04 	Swing Line Loans. 

 (a) The Swing
Line. Subject to the terms and conditions set forth herein, the Swing Line Lender, in reliance upon the agreement of the other Lenders set forth in this Section 2.04, may in its sole and absolute discretion make loans (each such
loan, a “Swing Line Loan”) for the account of any of the Borrowers 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 less, at any time while the Credit Sensitive Debentures are
outstanding (other than to the extent a Committed Borrowing is requested the proceeds of which are to be used, as reasonably determined by the Administrative Agent, to Repay and Fully Satisfy the amounts owing under the Credit Sensitive Debentures),
the Availability Reserve, 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. Within the foregoing limits, and subject to the other terms and conditions hereof, any of the Borrowers may borrow under this

  

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Section 2.04, prepay under Section 2.05, and reborrow under this Section 2.04. 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 Administrative Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by telephone (provided that such telephonic notice complies with the informational requirements of the form of Swing Line
Loan Notice attached hereto). 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 in integral multiples of $100,000), (ii) the requested borrowing date, which shall be a Business Day and (iii) the Borrower to which the funds are to be disbursed. 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 Administrative 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 12:00 noon 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 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 2:30 p.m. on
the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the Borrowers. 
 (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 Borrowers (which hereby irrevocably authorize the Swing Line Lender to so request on their 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 Administrative 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 11:00 a.m. on the day 

  

 49 

 
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 Borrowers 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 Federal Funds Rate from time to time in effect. 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. 
 (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 set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Swing Line Lender, the Borrowers 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 Borrowers 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 of such payment (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such
Lender’s risk participation was funded) in the same funds as those received by the Swing Line Lender. 
  

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 (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 10.06 (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. 
 (e) Interest for Account of Swing Line
Lender. The Swing Line Lender shall be responsible for invoicing the Borrowers 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 Borrowers 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) Voluntary
Prepayments. The Borrowers shall have the right to prepay Loans in whole or in part from time to time; provided, however, that (i) a Notice of Prepayment must be received by the Administrative Agent not later than 9:00 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 and (ii) each partial prepayment of (A) Eurodollar Rate Loans shall be in a minimum
principal amount of $5,000,000 and integral multiples of $1,000,000 in excess thereof (or, the then remaining principal balance of the Committed Loans, if less) and (B) Base Rate Loans shall be in a minimum principal amount of $500,000 and
integral multiples of $100,000 in excess thereof (or, the then remaining principal balance of the Committed Loans, if less) or, in the case of Swing Line Loans, in a minimum principal amount of $100,000 and multiples of $100,000 in excess thereof.
Subject to the foregoing terms, amounts prepaid under this Section 2.05(a) shall be applied as the Administrative Borrower may notify the Administrative Agent; provided that if the Administrative Borrower shall fail to specify its
elected application with respect to any voluntary prepayment in the Notice of Prepayment, such voluntary prepayment shall be applied first to Swing Line Loans and then to Committed Loans, and with respect to Committed Loans first to Base Rate Loans
and then to Eurodollar Loans in direct order of Interest Period maturities. All prepayments under this Section 2.05(a) shall be subject to Section 3.05, but otherwise without premium or penalty and shall be accompanied by
interest on the principal amount prepaid through the date of prepayment. 
 (b) Mandatory Prepayments. 
 (i) If for any reason the Total Outstandings at any time exceed the Aggregate Commitments then in effect less, at any time while
the Credit Sensitive Debentures are outstanding, the Availability Reserve, the Borrowers shall immediately either prepay Loans or Cash Collateralize the L/C Obligations or both in an aggregate amount equal to such excess; provided,
however, that the Borrowers shall not be required to Cash 

  

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Collateralize the L/C Obligations pursuant to this Section 2.05(b) unless after the prepayment in full of the Loans the Total Outstandings exceed
the Aggregate Commitments then in effect less, at any time while the Credit Sensitive Debentures are outstanding, the Availability Reserve. 
 (ii) Upon the occurrence of any Material Asset Disposition which results in the realization by such Person of Net Cash Proceeds, the Borrowers shall prepay an aggregate principal amount of Loans equal to 100% of such
Net Cash Proceeds immediately upon receipt thereof by such Person. Mandatory prepayments under this Section 2.05(b)(ii) shall, first, be applied ratably to the L/C Borrowings and the Swing Line Loans, and second, shall be applied to the
outstanding Committed Loans (in each case, without any reduction in the Aggregate Commitments). 
  

	 	2.06 	Termination or Reduction of Commitments. 

 The Borrowers may, upon notice from the Administrative Borrower 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 9:00 a.m. five (5) Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $5,000,000 or any whole
multiple of $1,000,000 in excess thereof, (iii) the Borrowers 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 Commitment, the Letter of Credit Sublimit and/or the Swing
Line Sublimit, as applicable, 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 commitment fees accrued until the effective date of any termination of the Aggregate Commitments shall be paid on the effective date
of such termination. 
  

	 	2.07 	Repayment of Loans. 

 (a) Revolving
Loans. The Borrowers shall repay to the Lenders on the Maturity Date the aggregate principal amount of Committed Loans outstanding on such date. 
 (b) Swing Line Loans. The Borrowers shall repay each Swing Line Loan on the earlier to occur of (i) the date ten (10) Business Days after such Loan is made 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 

  

 52 

 
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, at the Borrowers’ option, (x) the Base Rate plus the Applicable Rate or (y) such other rate mutually agreed
to by the Borrowers and the Swing Line Lender at the time of the borrowing of such Swing Line Loan. 
 (b) If any amount payable by the
Borrowers under any Loan Document 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. Furthermore, unless otherwise agreed to by the Required Lenders while any Event of Default exists, the Borrowers 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. 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. 
  

	 	2.09 	Fees. 

 In addition to certain fees described
in subsections (i) and (j) of Section 2.03: 
 (a) Commitment Fee. The Borrowers 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 first Business Day to occur after the last day of each March, June, September and December, commencing with the first such date to occur after the Closing Date, and on the Maturity
Date. 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. The Borrowers shall pay to the Arranger and the
Administrative Agent for their own respective accounts fees in the amounts and at the times specified in the Fee Letter. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 
  

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	 	2.10 	Computation of Interest and Fees. 

 (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. 
 (b) If, as a result of any restatement of or other adjustment to the
financial statements of the Borrowers or for any other reason, the Borrowers or the Lenders determine that: (i) (A) the Funded Indebtedness to Capitalization Ratio as calculated by the Borrowers as of any applicable date was inaccurate and
(B) a proper calculation of the Funded Indebtedness to Capitalization Ratio would have resulted in higher pricing for such period, then the Borrowers shall immediately and retroactively be obligated to pay to the Administrative Agent for the
account of the applicable Lenders or the L/C Issuer, as the case may be, 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 Borrowers 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 paid for such period over the
amount of interest and fees actually paid for such period or (ii) (A) the Funded Indebtedness to Capitalization Ratio as calculated by the Borrowers as of any applicable date was inaccurate and (B) a proper calculation of the Funded
Indebtedness to Capitalization Ratio would have resulted in lower pricing for such period (and, in the case of this clause (ii), the Administrative Agent shall have agreed with such determination, such agreement not to be unreasonably
withheld), then, subject to the proviso at the end of this sentence, the applicable Lenders or the L/C Issuer, as the case may be, shall promptly provide (and shall instruct the Administrative Agent to
provide) the Borrowers with a credit against any remaining unpaid interest and fees in an amount equal to the excess of the amount of interest and fees that were actually paid for such period over the amount of interest and fees
that should have been paid for such period; provided that such credit shall only apply to interest payments and fees owed to those Lenders and L/C Issuers that were the beneficiaries of the overpayment. 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 Borrowers’
obligations and rights 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 Borrowers and the interest and payments thereon. Any failure to so record or 

  

 54 

 
any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrowers 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 Borrowers 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. 

 (a) All payments to be
made by the Borrowers shall be made without condition or deduction for any counterclaim, defense, recoupment or set-off. Except as otherwise expressly provided herein, all payments by the Borrowers 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 Same Day Funds not later than 12:00 noon 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
(i) after 2:00 p.m., in the case of payments in Dollars, or (ii) after the Applicable Time specified by the Administrative Agent in the case of payments in an Alternative Currency, shall in each case 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 Borrowers 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. 
 (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 12:00 noon 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 Borrowers a corresponding amount. In such event, if a Lender has not in fact 

  

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made its share of the applicable Committed Borrowing available to the Administrative Agent, then the applicable Lender and the Borrowers 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 Borrowers 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 (it being understood that such customary fees shall not be subject to the indemnification obligations
of the Borrowers pursuant to Section 10.05(b)) and (B) in the case of a payment to be made by the Borrowers, the interest rate applicable to Base Rate Loans. If the Borrowers 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 Borrowers the amount of such interest paid by the Borrowers 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 Borrowers shall be without prejudice to any claim the Borrowers may have
against a Lender that shall have failed to make such payment to the Administrative Agent. 
 (ii) Payments by Borrowers; Presumptions by
Administrative Agent. Unless the Administrative Agent shall have received notice from the Administrative 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 Borrowers will not make such payment, the Administrative Agent may assume that the Borrowers have 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 Borrowers have 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 Borrowers with respect to any amount owing under this subsection (b) shall be conclusive,
absent manifest error. 
 (c) 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 Borrowers 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) 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 10.05(c) are several and not joint. The failure of any Lender to make any Committed 

  

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Loan or to fund any such participation or to make any payment under Section 10.05(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 or purchase its participation or to make its payment under
Section 10.05(c). 
 (e) 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. 

 If, other than as
expressly provided elsewhere herein, any Lender shall obtain on account of the Committed Loans made by it, or the participations in L/C Obligations or in Swing Line Loans held by it (excluding any amounts applied by the Swing Line Lender to
outstanding Swing Line Loans and excluding any amounts received by the L/C Issuer and/or Swing Line Lender to secure the obligations of a Defaulting Lender or an Impacted Lender to fund risk participations hereunder), any payment (whether voluntary,
involuntary, through the exercise of any right of set-off, or otherwise) in excess of its ratable share (or other share contemplated hereunder) thereof, such Lender shall immediately (a) notify the Administrative Agent of such fact, and
(b) purchase from the other Lenders such participations in the Committed Loans made by them and/or such subparticipations in the participations in L/C Obligations or Swing Line Loans held by them, as the case may be, as shall be necessary to
cause such purchasing Lender to share the excess payment in respect of such Committed Loans or such participations, as the case may be, pro rata with each of them; provided, however, that if all or any portion of such excess payment is
thereafter recovered from the purchasing Lender under any of the circumstances described in Section 10.06 (including pursuant to any settlement entered into by the purchasing Lender in its discretion), such purchase shall to that extent
be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender’s ratable share (according to the proportion of (i) the amount of such paying
Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered, without further interest
thereon. The Borrowers agree that any Lender so purchasing a participation from another Lender may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off, but subject to Section 10.09)
with respect to such participation as fully as if such Lender were the direct creditor of the Borrowers in the amount of such participation. The Administrative Agent will keep records (which shall be conclusive and binding in the absence of manifest
error) of participations purchased under this Section and will in each case notify the Lenders following any such purchases or repayments. Each Lender that purchases a participation pursuant to this Section shall from and after such purchase have
the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Lender were the original owner of the
Obligations purchased. 
  

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	 	2.14 	Increase in Aggregate Commitments. 

 (a)
Provided there exists no Default, upon notice from the Administrative Borrower to the Administrative Agent (which shall promptly notify the Lenders), the Borrowers may from time to time, request an increase in the Aggregate Commitments in an
aggregate amount for all such increases not to exceed $100,000,000; provided, however, that (i) the maximum amount of the Aggregate Commitments after giving effect to any such increase shall not exceed $350,000,000, (ii) the
Borrowers may make a maximum of three (3) such requests and (iii) the Borrowers shall have delivered to the Administrative Agent a Pro Forma Compliance Certificate demonstrating that, upon giving effect on a Pro Forma Basis to the increase
in the Aggregate Commitments, the Loan Parties would be in compliance with the financial covenants set forth in Section 6.10. The aggregate amount of any individual increase hereunder shall be in a minimum amount of $5,000,000 (and in
integral multiples of $1,000,000 in excess thereof). To achieve the full amount of a requested increase, the Borrowers may solicit increased commitments from existing Lenders and/or invite additional Eligible Assignees to become Lenders;
provided, however, that no existing Lender shall be obligated and/or required to accept an increase in its Commitment pursuant to this Section 2.14 unless it specifically consents to such increase in writing. Any Lender or
Eligible Assignee agreeing to increase its Commitment or provide a new Commitment pursuant to this Section 2.14 shall, in connection therewith, deliver to the Administrative Agent a new commitment agreement in form and substance
satisfactory to the Administrative Agent and its counsel. 
 (b) If the Aggregate Commitments are increased in accordance with this Section,
the Administrative Agent and the Borrowers shall determine the effective date (the “Increase Effective Date”) and the final allocation of such increase. The Administrative Agent shall promptly notify the Administrative Borrower and
the Lenders of the final allocation of such increase and the Increase Effective Date and Schedule 2.01 hereto shall be deemed amended to reflect such increase and final allocation. As a condition precedent to such increase, in addition to any
deliveries pursuant to subsection (a) above, the Borrowers shall deliver to the Administrative Agent each of the following in form and substance satisfactory to the Administrative Agent: (1) 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) 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 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 5.01 shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.01, and
(B) no Default exists; (2) a statement of reaffirmation from each Loan Party pursuant to which each such Loan Party ratifies this Agreement and the other Loan Documents and acknowledges and reaffirms that, after giving effect to such
increase, it is bound by all terms of this Agreement and the other Loan Documents; (3) if the increase is being provided by an existing Lender, and such Lender is then in possession of a Committed Note, a revised Committed Note in favor of such
Lender reflecting such Lender’s Commitment after giving effect to such increase; (4) if the increase is being provided by a new Lender, a Committed Note 

  

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in favor of such Lender if so requested by such Lender; and (5) payment of any applicable fee related to such increase (including, without limitation,
any applicable arrangement, upfront and/or administrative fee). The Borrowers 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. 
 (c) This Section shall supersede any provisions in Sections 2.12 or 10.01 to the contrary. 
  

	 	2.15 	Joint and Several Liability of Borrowers. 

 (a) Each of the Borrowers is accepting joint and several liability hereunder in consideration of the financial accommodation to be provided by the Lenders under this Agreement, for the mutual benefit, directly and indirectly, of each of the
Borrowers and in consideration of the undertakings of each of the Borrowers to accept joint and several liability for the obligations of each of them. 
 (b) Each of the Borrowers jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Borrowers with respect to the
payment and performance of all of the Obligations arising under this Agreement and the other Loan Documents, it being the intention of the parties hereto that all the Obligations shall be the joint and several obligations of each of the Borrowers
without preferences or distinction among them. 
 (c) If and to the extent that any of the Borrowers shall fail to make any payment with
respect to any of the Obligations as and when due or to perform any of the Obligations in accordance with the terms thereof, then in each such event, the other Borrowers will make such payment with respect to, or perform, such Obligation.

 (d) The obligations of each Borrower under the provisions of this Section 2.15 constitute full recourse obligations of such
Borrower, enforceable against it to the full extent of its properties and assets. 
 (e) Except as otherwise expressly provided herein, to
the extent permitted by law, each Borrower (in its capacity as a joint and several obligor in respect of the obligations of the other Borrowers) hereby waives notice of acceptance of its joint and several liability, notice of occurrence of any
Default or Event of Default (except to the extent notice is expressly required to be given pursuant to the terms of this Agreement), or of any demand for any payment under this Agreement, notice of any action at any time taken or omitted by the
Administrative Agent or the Lenders under or in respect of any of the obligations hereunder, any requirement of diligence and, generally, all demands, notices and other formalities of every kind in connection with this Agreement. Each Borrower
hereby assents to, and waives notice of, any extension or postponement of the time for the payment of any of the Obligations, the acceptance of any partial payment thereon, any waiver, consent or other action or acquiescence by the Administrative
Agent or the Lenders at any time or times in respect of any default by the other Borrowers in the 

  

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performance or satisfaction of any term, covenant, condition or provision of this Agreement, any and all other indulgences whatsoever by the Administrative
Agent or the Lenders in respect of any of the obligations hereunder, and the taking, addition, substitution or release, in whole or in part, at any time or times, of any security for any of such obligations or the addition, substitution or release,
in whole or in part, of any other Borrower. Without limiting the generality of the foregoing, each Borrower (in its capacity as a joint and several obligor in respect of the obligations of the other Borrowers) assents to any other action or delay in
acting or any failure to act on the part of the Administrative Agent or the Lenders, including, without limitation, any failure strictly or diligently to assert any right or to pursue any remedy or to comply fully with applicable laws or regulations
thereunder which might, but for the provisions of this Section 2.15, afford grounds for terminating, discharging or relieving such Borrower, in whole or in part, from any of its obligations under this Section 2.15, it being
the intention of each Borrower that, so long as any of the Obligations hereunder remain unsatisfied, the obligations of such Borrower under this Section 2.15 shall not be discharged except by performance and then only to the extent of
such performance. The obligations of each Borrower under this Section 2.15 shall not be diminished or rendered unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction or similar proceeding with respect
to any Borrower or a Lender. The joint and several liability of the Borrowers hereunder shall continue in full force and effect notwithstanding any absorption, merger, amalgamation or any other change whatsoever in the name, membership, constitution
or place of formation of any Borrower or any of the Lenders. 
 (f) The provisions of this Section 2.15 are made for the benefit
of the Lenders and their successors and assigns, and may be enforced by them from time to time against any of the Borrowers as often as occasion therefor may arise and without requirement on the part of the Lenders first to marshal any of its claims
or to exercise any of its rights against the other Borrowers or to exhaust any remedies available to it against the other Borrowers or to resort to any other source or means of obtaining payment of any of the Obligations hereunder or to elect any
other remedy. The provisions of this Section 2.15 shall remain in effect until all the Obligations shall have been paid in full or otherwise fully satisfied. If at any time, any payment, or any part thereof, made in respect of any of the
Obligations is rescinded or must otherwise be restored or returned by the Lenders upon the insolvency, bankruptcy or reorganization of any of the Borrowers, or otherwise, the provisions of this Section 2.15 will forthwith be reinstated
and in effect as though such payment had not been made. 
 (g) Notwithstanding any provision to the contrary contained herein or in any of
the other Loan Documents, to the extent the obligations of any Borrower shall be adjudicated to be invalid or unenforceable for any reason (including, without limitation, because of any applicable state or federal law relating to fraudulent
conveyances or transfers) then the obligations of such Borrower hereunder shall be limited to the maximum amount that is permissible under applicable law (whether federal or state and including, without limitation, the Bankruptcy Code of the United
States). 
  

	 	2.16 	Appointment of the Administrative Borrower. 

 Potlatch Forest, Potlatch Land & Lumber and Clearwater hereby appoint the Administrative Borrower to act as their agent for all purposes under this Agreement (including, without limitation, with respect to all matters related to
the borrowing and repayment of Loans) and agree that (a) the 

  

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Administrative Borrower may execute such documents on behalf of Potlatch Forest, Potlatch Land & Lumber and Clearwater as the Administrative
Borrower deems appropriate in its sole discretion and Potlatch Forest, Potlatch Land & Lumber and Clearwater shall be obligated by all of the terms of any such document executed on its behalf, (b) any notice or communication delivered
by the Administrative Agent or the Lender to the Administrative Borrower shall be deemed delivered to Potlatch Forest, Potlatch Land & Lumber and Clearwater and (c) the Administrative Agent or the Lenders may accept, and be permitted
to rely on, any document, instrument or agreement executed by the Administrative Borrower on behalf of Potlatch Forest, Potlatch Land & Lumber and Clearwater. 
 ARTICLE III 
 TAXES, YIELD PROTECTION AND ILLEGALITY 
  

	 	3.01 	Taxes. 

 (a) Any and all payments by the
Borrowers to or for the account of the Administrative Agent or any Lender under any Loan Document shall be made free and clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and all liabilities with respect thereto, excluding, in the case of the Administrative Agent and each Lender, taxes imposed on or measured by its overall net income, 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 the Administrative Agent or such Lender, as the case may be, is organized or maintains a lending office (all such non-excluded taxes, duties,
levies, imposts, deductions, assessments, fees, withholdings or similar charges, and liabilities being hereinafter referred to as “Taxes”). If the Borrowers shall be required by any Laws to deduct any Taxes from or in respect of any
sum payable under any Loan Document to the Administrative Agent or any Lender, (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), each of the Administrative Agent and such Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrowers shall make such deductions, (iii) the Borrowers shall pay the
full amount deducted to the relevant taxation authority or other authority in accordance with applicable Laws, and (iv) within 30 days after the date of such payment, the Borrowers shall furnish to the Administrative Agent (which shall forward
the same to such Lender) the original or a certified copy of a receipt evidencing payment thereof. 
 (b) In addition, the Borrowers agree to
pay any and all present or future stamp, court or documentary taxes and any other excise or property taxes or charges or similar levies which arise from any payment made under any Loan Document or from the execution, delivery, performance,
enforcement or registration of, or otherwise with respect to, any Loan Document (hereinafter referred to as “Other Taxes”). 
 (c) If the Borrowers shall be required to deduct or pay any Taxes or Other Taxes from or in respect of any sum payable under any Loan Document to the Administrative Agent or any Lender, the Borrowers shall also pay to the Administrative
Agent or to such Lender, as the case may be, at the time interest is paid, such additional amount that the Administrative Agent or such Lender specifies is necessary to preserve the after-tax yield (after factoring in all taxes, including taxes
imposed on or measured by net income) that the Administrative Agent or such Lender would have received if such Taxes or Other Taxes had not been imposed. 
  

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 (d) The Borrowers agree to indemnify the Administrative Agent and each Lender for (i) the full
amount of Taxes and Other Taxes (including any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section) paid by the Administrative Agent and such Lender, (ii) amounts payable under
Section 3.01(c) and (iii) any liability (including additions to tax, penalties, interest and expenses) arising therefrom or with respect thereto, in each case whether or not such Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. Payment under this subsection (d) shall be made within 30 days after the date the Lender or the Administrative Agent makes a demand therefor. 
 (e) If any Loan Party is required to pay additional amounts to or for the account of any Lender pursuant to this Section 3.01, then such
Lender will agree to use reasonable efforts to change the jurisdiction of its applicable Lending Office so as to eliminate or reduce any such additional payment which may thereafter accrue if such change, in the judgment of such Lender, is not
otherwise disadvantageous to such Lender. 
  

	 	3.02 	Illegality. 

 If any Lender reasonably
determines 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 Administrative 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 or, if such notice relates to the
unlawfulness or asserted unlawfulness of charging interest based on the Eurodollar Rate, to make Base Rate Loans as to which the interest rate is determined with reference to the Eurodollar Rate shall be suspended until such Lender notifies the
Administrative Agent and the Administrative Borrower that the circumstances giving rise to such determination no longer exist, which such Lender agrees to do promptly after permitted by applicable Laws. Upon receipt of such notice, the
Borrowers 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 and Base Rate Loans as to which the interest rate is determined with reference to the
Eurodollar Rate to Base Rate Loans as to which the rate of interest is not determined with reference to the Eurodollar Rate, 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 or Base Rate Loan. Notwithstanding the foregoing and despite the illegality for such a Lender to make, maintain or fund
Eurodollar Rate Loans or Base Rate Loans as to which the interest rate is determined with reference to the Eurodollar Rate, that Lender shall remain committed to make Base Rate Loans and shall be entitled to recover interest at the Base
Rate. Upon any such prepayment or conversion, the Borrowers shall also pay accrued interest on the amount so prepaid or converted. Each Lender agrees to designate a different Lending Office if such designation will avoid the need for such
notice and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such Lender. 
  

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	 	3.03 	Inability to Determine Rates. 

 If the
Required Lenders reasonably determine that for any reason in connection with any request for a Loan or a conversion to or continuation thereof that (i) Dollar deposits are not being offered to banks in the London interbank eurodollar market for
the applicable amount and Interest Period of such Loan, (ii) 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 in connection with
a Base Rate Loan, or (iii) the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan or in connection with a 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 Administrative Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate Loans and Base Rate Loans as to which the interest
rate is determined with reference to the Eurodollar Rate shall be suspended until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice; provided, however, that Base Rate Loans shall continue to be
available during such period, with the interest rate determined using the higher of clauses (a) or (c) in the definition of Base Rate. Upon receipt of such notice, the Borrowers 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. 
  

	 	3.04 	Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans. 

 (a) If any Lender reasonably determines that as a result of the introduction of or any change in or in the interpretation of any Law, or such
Lender’s compliance therewith, there shall be any increase in the cost to such Lender of agreeing to make or making, funding or maintaining Eurodollar Rate Loans or (as the case may be) issuing or participating in Letters of Credit, or a
reduction in the amount received or receivable by such Lender in connection with any of the foregoing (excluding for purposes of this subsection (a) any such increased costs or reduction in amount resulting from (i) Taxes or Other Taxes
(as to which Section 3.01 shall govern), (ii) changes in the basis of taxation of overall net income or overall gross income by the United States or any foreign jurisdiction or any political subdivision of either thereof under the
Laws of which such Lender is organized or has its Lending Office, and (iii) reserve requirements contemplated by Section 3.04(c)), then from time to time upon demand of such Lender (with a copy of such demand to the Administrative
Agent), the Borrowers shall pay to such Lender such additional amounts as will compensate such Lender for such increased cost or reduction. 
 (b) If any Lender determines that the introduction of any Law regarding capital adequacy or any change therein or in the interpretation thereof, or compliance by such Lender (or its Lending Office) therewith, has the effect of reducing the
rate of return on the capital of such Lender or any corporation controlling such Lender as a consequence of such Lender’s obligations hereunder (taking into consideration its policies with respect to capital adequacy), then from time to time
upon demand of such Lender (with a copy of such demand to the Administrative Agent), the Borrowers shall pay to such Lender such additional amounts as will compensate such Lender for such reduction. 
  

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 (c) The Borrowers 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 absent manifest error), which shall be due and payable on each date on which interest is payable
on such Loan, provided the Borrowers shall have received at least 15 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to give notice 15 days prior to the
relevant Interest Payment Date, such additional interest shall be due and payable 15 days from receipt of such notice. 
  

	 	3.05 	Funding Losses. 

 Upon demand of any Lender
(with a copy to the Administrative Agent) from time to time, the Borrowers 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 Borrowers (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 Administrative Borrower; or 
 (c) any failure by the Borrowers to make payment of any Loan or drawing under any Letter of Credit (or interest due thereon) denominated in an
Alternative Currency on its scheduled due date or any payment thereof in a different currency; or 
 (d) 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 Administrative Borrower pursuant to Section 10.16; 
 including any loss of anticipated profits, any foreign currency exchange losses 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 or from the performance of any foreign currency exchange contract. The Borrowers shall also pay any customary administrative fees charged by such Lender in connection with the foregoing.

 For purposes of calculating amounts payable by the Borrowers 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. 
  

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	 	3.06 	Matters Applicable to all Requests for Compensation. 

 (a) A certificate of the Administrative Agent or any Lender claiming compensation under this Article III and setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest
error. In determining such amount, the Administrative Agent or such Lender may use any reasonable averaging and attribution methods. 
 (b)
Upon any Lender’s making a claim for compensation under Section 3.01 or 3.04, the Borrowers may replace such Lender in accordance with Section 10.16. 
  

	 	3.07 	Survival. 

 All of the Borrowers’
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 to Initial Credit Extension. 

 The
obligation of the L/C Issuer and each Lender to make the initial Credit Extension hereunder is subject to satisfaction of the following conditions precedent: 
 (a) Loan Documents, Organization Documents, Etc. The Administrative Agent’s receipt of the following, each of which shall be originals or facsimiles (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, its legal counsel and each of the Lenders: 
 (i) executed counterparts of this
Agreement, the Timberland Mortgages, the Pledge Agreement and the other Loan Documents; 
 (ii) a Note executed by the
Borrowers in favor of each Lender requesting a Note; 
 (iii) copies of the Organization Documents of each Loan Party
certified by a secretary or assistant secretary of such Loan Party to be true and correct as of the Closing Date; 
 (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 require 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; and 
  

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 (v) such documents and certifications as the Administrative Agent may reasonably require
to evidence that each Loan Party is duly organized or formed, and is validly existing, in good standing and qualified to engage in business in (A) the jurisdiction of its incorporation or organization and (B) 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. 
 (b) Opinions of Counsel. The Administrative Agent shall have received (i) a legal opinion of Pamela Mull, Vice President and General Counsel
of the Borrowers, (ii) a legal opinion of Pillsbury Winthrop Shaw Pittman LLP, special counsel to the Borrowers, and a legal opinion of Stoel Rives LLP, local counsel to the Loan Parties in Idaho, in each case dated as of the Closing Date and
in form and substance reasonably satisfactory to the Administrative Agent; 
 (c) Officer’s Certificates. The Administrative
Agent shall have received a certificate or certificates executed by a Responsible Officer of the Borrowers as of the Closing Date, in form and substance satisfactory to the Administrative Agent, (i) stating that (A) the conditions
specified in Sections 4.02(a) and (b) have been satisfied as of the Closing Date, (B) the Borrowers are in compliance with all existing material financial obligations, (C) all governmental, shareholder and third
party consents and approvals, if any, with respect to the Loan Documents and the transactions contemplated thereby have been obtained (and attaching copies thereof), (D) no action, suit, investigation or proceeding is pending or threatened in
any court or before any arbitrator or governmental instrumentality that purports to affect any Borrower or any transaction contemplated by the Loan Documents, if such action, suit, investigation or proceeding could have a Material Adverse Effect,
(E) immediately after giving effect to the initial Loans hereunder, (1) no Default or Event of Default exists and (2) all representations and warranties contained herein and in the other Loan Documents are true and correct in all
material respects and (ii)(A) attaching copies of all consents, licenses and approvals required in connection with the execution, delivery and performance by the Loan Parties and the validity against the Loan Parties of the Loan Documents to which
they are a party, and such consents, licenses and approvals shall be in full force and effect, or (B) stating that no such consents, licenses or approvals are so required. 
 (d) No Material Adverse Change. There shall not have occurred a material adverse change since December 31, 2007 in the business, assets,
liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of the Borrowers and their Subsidiaries taken as a whole or in the facts and information regarding such entities as represented to date, it being
understood that the execution of documentation for, and the completion of the transactions constituting, the Spin-off shall not constitute a material adverse change. 
 (e) Evidence of Insurance. Receipt by the Administrative Agent of evidence that all insurance required to be maintained pursuant to the Loan Documents has been obtained and is in effect. 
 (f) Existing Indebtedness. The Administrative Agent shall have received evidence, in form and substance satisfactory to the Administrative Agent,
that the Existing Credit Agreement has been, or concurrently with the Closing Date is being, terminated and all obligations of the Borrowers under the Existing Credit Agreement have been, or concurrently with the Closing Date are being, paid and
fully satisfied. 
  

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 (g) Fees. Any fees required to be paid to the Administrative Agent and/or the Arranger on or
before the Closing Date shall have been paid. 
 (h) Attorney Costs. Unless waived by the Administrative Agent, the Borrowers shall
have paid all reasonable fees, expenses and disbursements of counsel to the Administrative Agent to the extent invoiced prior to or on the Closing Date. 
 (i) Financial Statements. The Administrative Agent shall have received the consolidated balance sheets, consolidated statements of shareholders’ equity and cash flows and the consolidated and consolidating
statements of income or operations, for the Borrowers and their respective Subsidiaries for the fiscal years ended December 31, 2005, December 31, 2006 and December 31, 2007, audited (in the case of the consolidated financial
statements) by independent public accountants of recognized national standing and prepared in conformity with GAAP which statements shall be reasonably satisfactory to the Administrative Agent. 
 (j) Accuracy of Representations and Warranties. The representations and warranties of the Loan Parties 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 Closing Date. 
 (k) No Default. No Default shall exist and be continuing as of the Closing Date. 
 (l) Collateral. The Collateral Agent and the Administrative Agent shall have received: 
 (i) any duly executed consents as are necessary, in the Collateral Agent’s sole discretion, to perfect the Collateral Agent’s
security interest in the Collateral; 
 (ii) information necessary to complete UCC financing statements for each appropriate
jurisdiction deemed necessary by the Collateral Agent to perfect the Collateral Agent’s security interest in the Collateral, naming the Borrowers as debtors, and the Collateral Agent as secured party; 
 (iii) title searches on the Pledged Timberlands, in form, substance and scope reasonably satisfactory to the Collateral Agent; 

(iv) duly executed Timberland Mortgages on those certain Pledged Timberlands and as required to comply with Section 6.13
hereof; 
 (v) the Opening Timberlands Appraisal (including the Initial Collateral Report); 
 (vi) certificates representing the Pledged Capital Stock as defined and referred to in the Pledge Agreement accompanied by undated stock
powers executed in blank; 
 (vii) evidence of the completion of all other actions, recordings and filings of or with respect
to the Timberland Mortgages and the Pledge Agreement that the Collateral Agent may reasonably deem necessary or desirable in order to perfect the Liens created thereby; and 
  

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 (viii) evidence that all other action that the Collateral Agent may reasonably deem
necessary or desirable in order to perfect the Liens created under the Timberland Mortgages and the Pledge Agreement has been taken (including receipt of duly executed payoff letters and UCC-3 termination statements, if applicable). 
 (m) Collateral Coverage Ratio and Funded Indebtedness to Capitalization Ratio. The Borrowers shall demonstrate compliance on a Pro Forma Basis
with (i) the Collateral Coverage Ratio set forth in Section 6.10(b) and (ii) the Funded Indebtedness to Capitalization Ratio set forth in Section 6.10(c). 
 (n) Other. Receipt by the Lenders of such other assurances, certificates, documents, consents or opinions as the Administrative Agent, the L/C
Issuer, the Swing Line Lender or the Lenders reasonably may require. 
 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. 
  

	 	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 Borrowers 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 Sections 5.01(a) and (b) 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. 
 (c) There shall not have been commenced against any Consolidated Party an involuntary case under any applicable Debtor Relief Law, now or hereafter in
effect, or any case, proceeding or other action for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of such Person or for any substantial part of its Property or for the winding up or
liquidation of its affairs, and such involuntary case or other case, proceeding or other action shall remain undismissed. 
  

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 (d) The Administrative Agent and, if applicable, the L/C Issuer shall have received a Request for Credit
Extension in accordance with the requirements hereof. 
 (e) In the case of a Credit Extension to be denominated in an Alternative Currency,
there shall not have occurred any change in national or international financial, political or economic conditions or currency exchange rates or exchange controls which in the reasonable opinion of the Administrative Agent or the L/C Issuer (in the
case of any Letter of Credit to be denominated in an Alternative Currency) would make it impracticable for such Credit Extension to be denominated in the relevant Alternative Currency. 
 (f) For so long as the Credit Sensitive Debentures remain outstanding, the proposed Credit Extension shall either (i) not cause the Total
Outstandings to exceed the Aggregate Commitments less the Availability Reserve or (ii) be a Committed Borrowing the proceeds of which will be used to Repay and Fully Satisfy the amounts owing under the Credit Sensitive
Debentures. If the foregoing clause (ii) is applicable, the Borrowers shall have delivered to the Administrative Agent any and all information reasonably requested by the Administrative Agent to evidence that the proceeds of the Committed
Borrowing shall be used to Repay and Fully Satisfy the amounts owing under the Credit Sensitive Debentures. 
 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 Administrative Borrower shall be deemed to be a representation and warranty
by the Borrowers that the conditions specified in Sections 4.02(a), (b) and (c) have been satisfied on and as of the date of the applicable Credit Extension. 
 ARTICLE V 
 REPRESENTATIONS AND
WARRANTIES 
 The Loan Parties, jointly and severally, represent and warrant to the Administrative Agent and the Lenders that:

  

	 	5.01 	Financial Condition. 

 (a) The audited
consolidated balance sheets and income statements of the Consolidated Parties for the fiscal years ended December 31, 2005, December 31, 2006 and December 31, 2007 (including the notes thereto) (i) have been audited by KPMG LLP,
(ii) have been prepared in accordance with GAAP consistently applied throughout the periods covered thereby, except as otherwise expressly noted therein and (iii) present fairly (on the basis disclosed in the footnotes to such financial
statements) in all material respects the consolidated financial condition, results of operations and cash flows of the Consolidated Parties as of such date and for such periods. The unaudited interim balance sheets of the Consolidated Parties as at
the end of, and the related unaudited interim statements of earnings and of cash flows for, each quarterly period ended after December 31, 2007 and prior to the Closing Date (i) have been prepared in accordance with GAAP consistently
applied throughout the periods covered thereby, except as otherwise expressly noted therein and (ii) present fairly (on the basis disclosed in the footnotes to such financial statements) in all material respects the consolidated financial
condition, results of operations and cash flows of the Consolidated Parties as of such date and for such periods. During the period from December 31, 2007 

  

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to and including the Closing Date, there has been no sale, transfer or other disposition by any Consolidated Party of any material part of the business or
property of the Consolidated Parties, taken as a whole, and no purchase or other acquisition by any of them of any business or property (including any Capital Stock of any other Person) material in relation to the consolidated financial condition of
the Consolidated Parties, taken as a whole, in each case, which is not reflected in the foregoing financial statements or in the notes thereto and has not otherwise been disclosed in writing to the Lenders on or prior to the Closing Date. As of the
Closing Date, the Borrowers and their Subsidiaries have no material liabilities (contingent or otherwise) that are not reflected in the foregoing financial statements or in the notes thereto. 
 (b) The financial statements delivered pursuant to Section 6.01(a) and (b) have been prepared in accordance with GAAP (except as
may otherwise be permitted under Section 6.01(a) and (b)) and present fairly (on the basis disclosed in the footnotes to such financial statements) the consolidated financial condition, results of operations and cash flows of the
Consolidated Parties as of such date and for such periods. 
  

	 	5.02 	No Material Change; No Internal Control Event. 

 (a) Since the date 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 other than facts,
circumstances, changes or events which, as of the Closing Date, have been disclosed in the Borrowers’ public filings with the SEC (to the extent so disclosed). 
 (b) Since the date of the Audited Financial Statements, no Internal Control Event has occurred that has not been (i) disclosed to the Administrative Agent and the Lenders and (ii) remedied or otherwise
diligently addressed (or is in the process of being diligently addressed) by the Borrowers and/or the applicable Loan Party in accordance with recommendations made by the Borrowers’ and/or such Loan Party’s auditors. 
  

	 	5.03 	Organization and Good Standing. 

 Each of the
Consolidated Parties (a) is duly organized, validly existing and is in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has the corporate or other necessary 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 and (c) is duly qualified as a foreign entity 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, other than in such jurisdictions where the failure to be so qualified and in good standing would not reasonably be expected
to have a Material Adverse Effect. 
  

	 	5.04 	Power; Authorization; Enforceable Obligations. 

 Each of the Loan Parties has the corporate or other necessary 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 Borrowers, to obtain extensions of credit
hereunder, and has taken all necessary corporate or other necessary action to authorize the borrowings and other extensions of credit on the terms and 

  

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conditions of this Agreement and to authorize the execution, delivery and performance of the Loan Documents to which it is a party. No consent or
authorization of, filing with, notice to or other similar act by or in respect of, any Governmental Authority or any other Person is required to be obtained or made by or on behalf of any Loan Party in connection with the borrowings or other
extensions of credit hereunder or with the execution, delivery, performance, validity or enforceability of the Loan Documents to which such Loan Party is a party, except for (i) filings to perfect the Liens created by the Collateral Documents
and (ii) consents, authorizations, notices and filings described in Schedule 5.04, all of which have been obtained or made or have the status described in such Schedule 5.04. This Agreement has been, and each other Loan
Document to which any Loan Party is a party will be, duly executed and delivered on behalf of the Loan Parties. This Agreement constitutes, and each other Loan Document to which any Loan Party is a party when executed and delivered will constitute,
a legal, valid and binding obligation of such Loan Party enforceable against such party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). 
  

	 	5.05 	No Conflicts. 

 Neither the execution and
delivery of the Loan Documents, nor the consummation of the transactions contemplated therein, nor performance of and compliance with the terms and provisions thereof by such Loan Party will (a) violate or conflict with any provision of its
articles or certificate of incorporation or bylaws or other organizational or governing documents of such Person, (b) violate, contravene or materially conflict with any Law or any other law, regulation (including, without limitation,
Regulation U or Regulation X), order, writ, judgment, injunction, decree or permit applicable to it, (c) violate, contravene or conflict with contractual provisions of, or cause an event of default under, any material indenture, loan agreement,
mortgage, deed of trust, contract or other agreement or instrument to which it is a party or by which it may be bound or (d) result in or require the creation of any Lien upon or with respect to its properties. 
  

	 	5.06 	No Default. 

 No Consolidated Party is in
default in any respect under any contract, lease, loan agreement, indenture, mortgage, security agreement or other agreement or obligation to which it is a party or by which any of its properties is bound which default could reasonably be expected
to have a Material Adverse Effect. No Default or Event of Default has occurred or exists except as previously disclosed in writing to the Lenders. 
  

	 	5.07 	Ownership; Liens. 

 Each Consolidated Party
is the owner of, and has good and marketable title to, all of its respective assets except for defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Property of the Borrowers
and their Subsidiaries are not subject to any Lien other than Permitted Liens. The Pledged Timberlands are not subject to any easements which, individually or in the aggregate, impair the value of the Pledged Timberlands as commercial timberlands in
any material respect or materially detract from the use of the Pledged Timberlands, in each case taken as a whole, as such. 
  

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	 	5.08 	Indebtedness. 

 Except as otherwise permitted
under Section 7.01, the Consolidated Parties have no Indebtedness. 
  

	 	5.09 	Litigation. 

 Schedule 5.09 sets
forth any material litigation of the Consolidated Parties on the Closing Date. Except to the extent disclosed on Schedule 5.09, there does not exist any pending or, to the knowledge of the Borrowers, threatened action, suit or legal,
equitable, arbitration or administrative proceeding against any Consolidated Party which could reasonably be expected to have a Material Adverse Effect, and there has been no adverse change in the status of or in the financial effect on any Loan
Party or any Subsidiary thereof as a result of the matters described in Schedule 5.09. 
  

	 	5.10 	Taxes. 

 Each Consolidated Party has filed,
or caused to be filed, all material tax returns (Federal, state, local and foreign) required to be filed and paid (a) all amounts of material taxes shown thereon to be due (including interest and penalties) and (b) all other material
taxes, fees, assessments and other governmental charges (including mortgage recording taxes, documentary stamp taxes and intangibles taxes) owing by it, except for such taxes (i) which are not yet delinquent or (ii) that are being
contested in good faith and by proper proceedings, and against which adequate reserves are being maintained in accordance with GAAP. No Loan Party is aware as of the Closing Date of any proposed material tax assessments against it or any other
Consolidated Party. 
  

	 	5.11 	Compliance with Law. 

 Each Consolidated
Party is in compliance with all Laws and all other laws, rules, regulations, orders and decrees (including without limitation Environmental Laws) applicable to it, or to its properties, unless such failure to comply could not reasonably be expected
to have a Material Adverse Effect. No Law could reasonably be expected to cause a Material Adverse Effect. 
  

	 	5.12 	ERISA. 

 Except as disclosed and described in
Schedule 5.12 attached hereto: 
 (a) During the five-year period prior to the date on which this representation is made or
deemed made: (i) no ERISA Event has occurred, and, to the best knowledge of the Responsible Officers of the Loan Parties, no event or condition has occurred or exists as a result of which any ERISA Event could reasonably be expected to occur,
with respect to any Plan; (ii) each Plan has been maintained, operated, and funded in compliance with its own terms and in material compliance with the provisions of ERISA, the Code, and any other applicable Federal or state laws; (iii) no
Lien in favor of the PBGC or a Plan has arisen or is reasonably likely to arise on account of any Plan; and (iv) (A) for years prior to December 31, 2007, no accumulated funding deficiency (as defined in Section 412 of the Code)
has been incurred (without regard to any waiver granted under Section 412 of the Code), nor has any funding waiver from the IRS been received or requested with respect to any Pension Plan except for any accumulated funding deficiency that could
not reasonably be expected to have a Material Adverse Effect and (B) for years beginning on or after January 1, 2008, the minimum required contribution (as defined in Code Section 430(a)) has been contributed for any Pension Plan
except if the failure to make the minimum required contribution could not reasonably be expected to have a Material Adverse Effect. 
  

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 (b) The projected benefit obligation under each Single Employer Plan, as of the last annual valuation
date prior to the date on which this representation is made or deemed made (determined, in each case, in accordance with Financial Accounting Standards Board Statement 87, utilizing the actuarial assumptions used in such Plan’s most recent
actuarial valuation report), did not exceed as of such valuation date the fair market value of the assets of such Plan by more than $100,000,000 in the aggregate for all such Plans. 
 (c) Neither any Consolidated Party nor any ERISA Affiliate has incurred, or, to the best knowledge of the Responsible Officers of the Loan Parties, could
be reasonably expected to incur, any withdrawal liability under ERISA to any Multiemployer Plan or Multiple Employer Plan. Neither any Consolidated Party nor any ERISA Affiliate would become subject to any withdrawal liability under ERISA if any
Consolidated Party or any ERISA Affiliate were to withdraw completely from all Multiemployer Plans and Multiple Employer Plans as of the valuation date most closely preceding the date on which this representation is made or deemed made. Neither any
Consolidated Party nor any ERISA Affiliate has received any notification that any Multiemployer Plan is in reorganization (within the meaning of Section 4241 of ERISA), is insolvent (within the meaning of Section 4245 of ERISA), or has
been terminated (within the meaning of Title IV of ERISA), and no Multiemployer Plan is, to the best knowledge of the Responsible Officers of the Loan Parties, reasonably expected to be in reorganization, insolvent, or terminated. 
 (d) No prohibited transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) other than as exempted under
Section 408 of ERISA or breach of fiduciary responsibility has occurred with respect to a Plan which has subjected or may subject any Consolidated Party or any ERISA Affiliate to any material liability under Sections 406, 409, 502(i), or
502(l) of ERISA or Section 4975 of the Code, or under any agreement or other instrument pursuant to which any Consolidated Party or any ERISA Affiliate has agreed or is required to indemnify any Person against any such liability. 
 (e) Except as reported in the Audited Financial Statements, neither any Consolidated Party nor any ERISA Affiliate has any material liability with
respect to “expected post-retirement benefit obligations” within the meaning of the Financial Accounting Standards Board Statement 106. Each Plan which is a welfare plan (as defined in Section 3(1) of ERISA) to which
Sections 601-609 of ERISA and Section 4980B of the Code apply has been administered in compliance in all material respects of such sections. 
 (f) Neither the execution and delivery of this Agreement nor the consummation of the financing transactions contemplated hereunder will involve any transaction which is subject to the prohibitions of
Sections 404, 406 or 407 of ERISA or in connection with which a tax could be imposed pursuant to Section 4975 of the Code. The representation by the Loan Parties in the preceding sentence is subject, in the event that the source of the
funds used by the Lenders in connection with this transaction is an insurance company’s general asset account, to the application of Prohibited Transaction Class Exemption 95-60, 60 Fed. Reg. 35,925 (1995), compliance with the regulations
issued under Section 401(c)(1)(A) of ERISA, or the issuance of any other prohibited 

  

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transaction exemption or similar relief, to the effect that assets in an insurance company’s general asset account do not constitute assets of an
“employee benefit plan” within the meaning of Section 3(3) of ERISA or a “plan” within the meaning of Section 4975(e)(1) of the Code. 
  

	 	5.13 	Corporate Structure; Capital Stock, Etc. 

 The corporate capital and ownership structure of the Consolidated Parties as of the Closing Date is as described on Schedule 5.13. Set forth on Schedule 5.13 is a complete and accurate list as of the Closing Date
with respect to each of the Borrowers’ direct and indirect Subsidiaries of (i) jurisdiction of incorporation, (ii) number of shares of each class of Capital Stock outstanding, (iii) number and percentage of outstanding shares of
each class owned (directly or indirectly) by the Consolidated Parties and (iv) number and effect, if exercised, of all outstanding options, warrants, rights of conversion or purchase and all other similar rights with respect thereto as of the
Closing Date. The outstanding Capital Stock of all such Persons is validly issued, fully paid and non-assessable and is owned by the Consolidated Parties, directly or indirectly, in the manner set forth on Schedule 5.13, free and clear
of all Liens. Other than as set forth in Schedule 5.13, none of the Borrowers’ Subsidiaries has outstanding any securities convertible into or exchangeable for its Capital Stock nor does any such Person have outstanding any rights
to subscribe for or to purchase or any options for the purchase of, or any agreements providing for the issuance (contingent or otherwise) of, or any calls, commitments or claims of any character relating to its Capital Stock. 
  

	 	5.14 	Governmental Regulations, Etc. 

 (a) None of
the transactions contemplated by this Agreement (including, without limitation, the direct or indirect use of the proceeds of the Loans) will violate or result in a violation of the Securities Act, the Securities Exchange Act of 1934 or any of
Regulations U and X. If requested by any Lender or the Administrative Agent, the Borrowers will furnish to the Administrative Agent and each Lender a statement, in conformity with the requirements of FR Form U-1 referred to in Regulation U,
that no part of the Letters of Credit or proceeds of the Loans will be used, directly or indirectly, for the purpose of “buying” or “carrying” any “margin stock” within the meaning of Regulations U and X, or for the
purpose of purchasing or carrying or trading in any securities. 
 (b) None of the Consolidated Parties is (i) an “investment
company”, or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended, (ii) a “holding company” as defined in, or otherwise subject to regulation
under, the Public Utility Holding Company Act of 1935, as amended or (iii) subject to regulation under any other Federal or state statute or regulation which limits its ability to incur Indebtedness. 
  

	 	5.15 	Purpose of Loans and Letters of Credit. 

 The
proceeds of the Loans hereunder shall be used solely by the Borrowers to provide for working capital, capital expenditures and any other lawful corporate purposes of the Borrowers and their Subsidiaries (including, without limitation,
(a) Permitted Acquisitions and (b) loans to Clearwater to pay obligations under the Credit Sensitive Debentures, to the extent such loans are permitted under Section 7.06(i)). The Letters of Credit shall be used only for or in
connection with credit support required for bonds issued in respect of financings for which a Loan Party is 

  

 74 

 
responsible for, directly or indirectly, repayment, appeal bonds, reimbursement obligations arising in connection with surety and reclamation bonds,
reinsurance and obligations not otherwise aforementioned relating to transactions entered into by the applicable account party in the ordinary course of business. 
  

	 	5.16 	Environmental Matters. 

 Except as disclosed
and described on Schedule 5.16 or except as could not reasonably be expected to result in a Material Adverse Effect: 
 (a) Each
of the real Properties and all operations at the real Properties are in compliance with all applicable Environmental Laws, there is no violation of any Environmental Law with respect to the real Properties or the businesses, and to the best
knowledge of the Responsible Officers of the Loan Parties, there are no conditions relating to the real Properties or the businesses that could give rise to liability under any applicable Environmental Laws. 
 (b) None of the real Properties contains, or to the best knowledge of the Responsible Officers of the Loan Parties, has previously contained, any
Hazardous Materials at, on or under the real Properties in amounts or concentrations that constitute or constituted a violation of, or could give rise to liability under, Environmental Laws. 
 (c) No Consolidated Party has received any written or verbal notice of, or inquiry from any Governmental Authority alleging any violation,
non-compliance, liability or potential liability pursuant to, or regarding compliance with, Environmental Laws with regard to any of the real Properties or the businesses, nor does any Responsible Officer of any Loan Party have knowledge or reason
to believe that any such notice will be received or is being threatened. 
 (d) Hazardous Materials have not been transported or disposed of
from the real Properties, or generated, treated, stored or disposed of at, on or under any of the real Properties or any other location, in each case by or on behalf of any Consolidated Party in violation of, or in a manner that to the best
knowledge of the Responsible Officers of the Loan Parties could give rise to liability under, any applicable Environmental Law. 
 (e) No
judicial proceeding or governmental or administrative action is pending or, to the best knowledge of the Responsible Officers of the Loan Parties, threatened, under any Environmental Law to which any Consolidated Party is or will be named as a
party, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to the Consolidated Parties, the
real Properties or the businesses. 
 (f) There has been no release, or threat of release, of Hazardous Materials at or from the real
Properties, or arising from or related to the operations (including, without limitation, disposal) of any Consolidated Party in connection with the real Properties or otherwise in connection with the businesses, in violation of or in amounts or in a
manner that to the best knowledge of the Responsible Officers of the Loan Parties could give rise to liability under Environmental Laws. 
  

 75 

	 	5.17 	Solvency. 

 The Loan Parties are Solvent on a
consolidated basis. 
  

	 	5.18 	Investments. 

 All Investments of each
Consolidated Party are Permitted Investments. 
  

	 	5.19 	Disclosure. 

 Neither this Agreement nor any
financial statements delivered to the Lenders nor any other document, certificate or statement furnished to the Lenders by or on behalf of any Consolidated Party in connection with the transactions contemplated hereby contains any untrue statement
of a material fact or omits to state a material fact necessary in order to make the statements contained therein or herein not misleading. 
  

	 	5.20 	No Burdensome Restrictions. 

 No Consolidated
Party is a party to any agreement or instrument or subject to any other obligation (other than the Clearwater Credit Facility) or any charter or corporate restriction or any provision of any applicable law, rule or regulation which, individually or
in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
  

	 	5.21 	Brokers’ Fees. 

 No Consolidated Party
has any obligation to any Person in respect of any finder’s, broker’s, investment banking or other similar fee in connection with any of the transactions contemplated under the Loan Documents. 
  

	 	5.22 	Labor Matters. 

 None of the Consolidated
Parties has suffered any strikes, walkouts, work stoppages or other material labor difficulty within the last five years which has had or could reasonably be expected to have a Material Adverse Effect. 
  

	 	5.23 	REIT Status. 

 Potlatch is duly organized as
a REIT. 
  

	 	5.24 	Collateral Documents. 

 The provisions of the
Collateral Documents are effective to create in favor of the Collateral Agent for the benefit of the Secured Creditors, a legal, valid and enforceable first priority (subject to Permitted Liens) security interest in all right, title and interest of
the Borrowers and their Subsidiaries in the Collateral described therein and all proceeds thereof to the extent such security interests can be perfected by the filing of UCC financing statements and the recordation of the Timberland Mortgages and
the possession of Pledged Capital Stock (as defined in the Pledge Agreement), as applicable. Except for filings completed on or prior to the Closing Date or as otherwise contemplated by this Agreement and the Collateral Documents or as set forth on
Schedule 5.24, no filing or other action will be necessary to perfect or protect such security interest. 
  

 76 

	 	5.25 	Business Locations. 

 Set forth on
Schedule 5.25(a) is the chief executive office, jurisdiction of incorporation or formation and principal place of business of each Loan Party as of the Closing Date. Set forth on Schedule 5.25(b) is a list of all Timberlands that are
owned by the Loan Parties as of the Closing Date, which list sets forth the county and state in which such Timberlands are located and the approximate acreage in each state. As of the Closing Date the Pledged Timberlands are comprised of
approximately 659,000 acres in Idaho which is substantially all of the Core Timberlands as referred to in the Initial Collateral Report that is part of the Opening Timberland Appraisal. 
  

	 	5.26 	Casualty, Etc. 

 Neither the business nor the
properties of any Loan Party or any of its Subsidiaries are affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or
not covered by insurance) that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
 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, each Loan Party hereby covenants
and agrees to the following: 
  

	 	6.01 	Information Covenants. 

 The Loan Parties
will furnish, or cause to be furnished, to the Administrative Agent and each of the Lenders: 
 (a) Annual Financial Statements. As soon as available, but in any event no later than the earlier of (i) the 90th day after the
end of each fiscal year of the Borrowers and (ii) the day that is three (3) Business Days after the date the Borrowers’ annual report on Form 10-K is required to be filed with the SEC (commencing with the 2008 fiscal year), a
consolidated balance sheet and income statement of the Consolidated Parties as of the end of such fiscal year, together with related consolidated statements of retained earnings and cash flows for such fiscal year, in each case setting forth in
comparative form consolidated figures for the preceding fiscal year, all such financial information described above to be in reasonable form and detail and audited by independent certified public accountants of recognized national standing
reasonably acceptable to the Administrative Agent and whose opinion shall be to the effect that such financial statements have been prepared in accordance with GAAP (except for changes with which such accountants concur) and shall not be limited as
to the scope of the audit or qualified as to the status of the Consolidated Parties as a going concern or any other material qualifications or exceptions. 
  

 77 

 (b) Quarterly Financial Statements. As soon
as available, but in any event no later than the earlier of (i) the 45th day after the end of each of the first three fiscal quarters of each
fiscal year of the Borrowers and (ii) the day that is three (3) Business Days after the date the Borrowers’ quarterly report on Form 10-Q is required to be filed with the SEC (commencing with the fiscal quarter ending March 31,
2009), a consolidated balance sheet and income statement of the Consolidated Parties as of the end of such fiscal quarter, together with related consolidated statements of cash flows for such fiscal quarter, in each case setting forth in comparative
form consolidated figures for (x) the corresponding period of the preceding fiscal year with respect to the income and cash flow statements of the Consolidated Parties and (y) the end of the preceding fiscal year with respect to the
balance sheet of the Consolidated Parties, all such financial information described above to be in reasonable form and detail and reasonably acceptable to the Administrative Agent, and accompanied by a certificate of a Responsible Officer of
Potlatch to the effect that such quarterly financial statements fairly present in all material respects the financial condition of the Consolidated Parties and have been prepared in accordance with GAAP, subject to changes resulting from audit and
normal year-end audit adjustments. 
 (c) Officer’s Compliance Certificate. At the time of delivery of the financial statements
provided for in Sections 6.01(a) and 6.01(b) above, a duly completed Compliance Certificate signed by a Responsible Officer of Potlatch substantially in the form of Exhibit D (i) demonstrating compliance with the
financial covenants contained in Section 6.10 by calculation thereof as of the end of each such fiscal period and (ii) stating that no Default or Event of Default exists, or if any Default or Event of Default does exist, specifying
the nature and extent thereof and what action the Loan Parties propose to take with respect thereto. 
 (d) Annual Budgets. Within 30
days after the end of each fiscal year of the Borrowers, beginning with the fiscal year ending December 31, 2008, an annual budget of the Consolidated Parties containing, among other things, pro forma financial statements (including income
statement, balance sheet and statement of cash flows) for the next fiscal year. 
 (e) Auditor’s Reports. Promptly upon receipt
thereof, a copy of any other report or “management letter” submitted by independent accountants to any Consolidated Party in connection with any annual, interim or special audit of the books of such Person. 
 (f) Reports. Promptly upon transmission or receipt thereof, (i) copies of any filings and registrations with, and reports to or from, the
SEC, or any successor agency, and copies of all financial statements, proxy statements, notices and reports as any Consolidated Party shall send to its shareholders or to a holder of any Indebtedness owed by any Consolidated Party in its capacity as
such a holder and (ii) upon the reasonable request of the Administrative Agent, all reports and material written information to and from the United States Environmental Protection Agency, or any state or local agency responsible for
environmental matters, the United States Occupational Health and Safety Administration, or any state or local agency responsible for health and safety matters, or any successor agencies or authorities concerning environmental, health or safety
matters. 
  

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 (g) Notices. Upon any Responsible Officer of a Loan Party obtaining knowledge thereof, the Loan
Parties will give written notice to the Administrative Agent and the Lenders (i) immediately of the occurrence of an event or condition consisting of a Default or Event of Default, specifying the nature and existence thereof and what action the
Loan Parties propose to take with respect thereto, and (ii) promptly of the occurrence of any of the following with respect to any Consolidated Party: (A) the pendency or commencement of any litigation, arbitral or governmental proceeding
against such Person which if adversely determined is likely to have a Material Adverse Effect, (B) the institution of any proceedings against such Person with respect to, or the receipt of notice by such Person of potential liability or
responsibility for violation, or alleged violation of any Federal, state or local law, rule or regulation, including but not limited to, Environmental Laws, the violation of which could have a Material Adverse Effect, (C) any material change in
accounting policies or financial reporting practices by such Person or (D) the occurrence of any Internal Control Event. 
 (h)
ERISA. Upon any Responsible Officer of a Loan Party obtaining knowledge thereof, the Loan Parties will give written notice to the Administrative Agent promptly (and in any event within fifteen Business Days) of: (i) any event or
condition, including, but not limited to, any Reportable Event, that constitutes, or could reasonably be expected to constitute, an ERISA Event; (ii) with respect to any Multiemployer Plan, the receipt of notice as prescribed in ERISA or
otherwise of any withdrawal liability assessed against the Loan Parties or any ERISA Affiliates, or of a determination that any Multiemployer Plan is in reorganization or insolvent (both within the meaning of Title IV of ERISA); (iii) the
failure to make full payment on or before the due date (including extensions) thereof of all amounts which any Consolidated Party or any ERISA Affiliate is required to contribute to each Plan pursuant to its terms and as required to meet the minimum
funding standard set forth in ERISA and the Code with respect thereto; or (iv) any change in the funding status of any Plan, in each case that could reasonably be expected to have a Material Adverse Effect, together with a description of any
such event or condition or a copy of any such notice and a statement by an Responsible Officer of the Borrowers briefly setting forth the details regarding such event, condition, or notice, and the action, if any, which has been or is being taken or
is proposed to be taken by the Loan Parties with respect thereto. Promptly upon request, the Loan Parties shall furnish the Administrative Agent and the Lenders with such additional information concerning any Plan as may be reasonably requested,
including, but not limited to, copies of each annual report/return (Form 5500 series), as well as all schedules and attachments thereto required to be filed with the Department of Labor and/or the IRS pursuant to ERISA and the Code, respectively,
for each “plan year” (within the meaning of Section 3(39) of ERISA). 
 (i) Environmental Reports. Upon the reasonable
written request of the Administrative Agent following the occurrence of any event or the discovery of any condition which has caused (or could be reasonably expected to cause) the representations and warranties set forth in Section 5.16
to be untrue in any material respect with respect to any Pledged Timberlands (the “Specified Impacted Timberlands”), the Borrowers will, as the Borrowers shall elect, (x) furnish or cause to be furnished to the Administrative
Agent, at the Borrowers’ expense, a report of an environmental assessment of reasonable scope, form and depth (including, where appropriate, invasive soil or groundwater sampling) by a consultant reasonably acceptable to the Administrative
Agent as to the nature and extent of the presence of any Hazardous Materials on such Specified Impacted Timberlands and as to the compliance by any Consolidated Party with Environmental Laws on such Specified Impacted Timberlands or (y) pledge
additional Timberlands as Collateral in substitution 

  

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for such Specified Impacted Timberlands in accordance with the requirements set forth in Section 6.13(b) unless the release of such Specified
Impacted Timberlands will not result in the breach of the Collateral Coverage Ratio, in which event, such Specified Impacted Timberlands shall be released pursuant to Section 6.13(c). If the Loan Parties elect to furnish a report and
fail to deliver such an environmental report required under clause (x) above within seventy-five (75) days after receipt of such written request then the Administrative Agent may arrange for same, and the Consolidated Parties hereby grant
to the Administrative Agent and its representatives access to the Property to reasonably undertake such an assessment (including, where appropriate, invasive soil or groundwater sampling). The reasonable cost of any assessment arranged for by the
Administrative Agent pursuant to this provision will be payable by the Borrowers on demand. 
 (j) Other Information. With reasonable
promptness upon any such request, such other information regarding the business, properties or financial condition of any Consolidated Party as the Administrative Agent or any Lender may reasonably request. 
 Documents required to be delivered pursuant to Section 6.01(a), (b) or (g) (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 Potlatch posts such documents, or provides a link thereto on
Potlatch’s website on the Internet at the website address listed on Schedule 10.02; or (ii) on which such documents are posted on the Borrowers’ behalf on IntraLinks/IntraAgency or another relevant 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) upon written request by the Administrative Agent, Potlatch shall
deliver paper copies of such documents to the Administrative Agent until a written request to cease delivering paper copies is given by the Administrative Agent and (ii) Potlatch shall notify (which may be by facsimile or electronic mail) the
Administrative Agent and each Lender 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 Potlatch shall be required to provide paper copies of the Compliance Certificates required by Section 6.01(c) 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 Borrowers 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. 
 The Borrowers hereby acknowledge that (a) the
Administrative Agent and/or the Arranger will make available to the Lenders and the L/C Issuer materials and/or information provided by or on behalf of the Borrowers hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders who may have personnel who do not wish to
receive material non-public information with respect to the Borrowers or their Affiliates, or their respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such
Person’s securities) (each, a “Public Lender”). The Borrowers hereby agree that they will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and
that (w) all Borrower Materials that are to be made 

  

 80 

 
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 Borrowers shall be deemed to have authorized the Administrative Agent, the Arranger, the L/C Issuer and the Lenders to treat such
Borrower Materials as not containing any material non-public information (although it may be sensitive and proprietary) with respect to the Borrowers or their 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 10.08); (y) all Borrower Materials marked “PUBLIC” are permitted to be made
available through a portion of the Platform designated “Public Side Information;” and (z) the Administrative Agent and the Arranger 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 Side Information.” 
  

	 	6.02 	Preservation of Existence, Franchises and REIT Status. 

 Except as a result of or in connection with a dissolution, merger or disposition of a Subsidiary not prohibited by Section 7.04 or Section 7.05, each Loan Party will, and will cause each of its
Subsidiaries to, do all things necessary to (a) preserve and keep in full force and effect its existence, (b) where failure to do so could reasonably be expected to have a Material Adverse Effect, preserve and keep in full force and effect
its rights, franchises and authority and (c) in the case of Potlatch, maintain REIT status. 
  

	 	6.03 	Books and Records. 

 Each Loan Party will,
and will cause each of its Subsidiaries to, keep complete and accurate books and records of its transactions in accordance with good accounting practices on the basis of GAAP (including the establishment and maintenance of appropriate reserves).

  

	 	6.04 	Compliance with Law. 

 Each Loan Party will,
and will cause each of its Subsidiaries to: 
 (a) comply with all laws, rules, regulations and orders, and all applicable restrictions
imposed by all Governmental Authorities, applicable to it and its Property if noncompliance with any such law, rule, regulation, order or restriction could reasonably be expected to have a Material Adverse Effect. 
 (b) without limiting the generality of the foregoing clause (a), comply, and cause all lessees and other Persons operating or occupying its properties to
comply with all applicable Environmental Laws and Environmental Permits; obtain and renew all Environmental Permits necessary for its operations and properties; and conduct any investigation, study, sampling and testing, and undertake any cleanup,
removal, remedial or other action necessary to remove and clean up all Hazardous Materials from any of its properties, in accordance with the requirements of all Environmental Laws if, in each case, such noncompliance, action or inaction
(i) could reasonably be expected to have a Material Adverse Effect or (ii) materially diminishes the Consolidated Collateral Value; provided, however, that neither the Borrower nor any of its Subsidiaries shall be required to
undertake any such cleanup, removal, remedial or other action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves are being maintained with respect to such circumstances in
accordance with GAAP. 
  

 81 

	 	6.05 	Payment of Taxes and Other Claims. 

 Each
Loan Party will, and will cause each of its Subsidiaries to, pay and discharge (a) all taxes, assessments and governmental charges or levies imposed upon it, or upon its income or profits, or upon any of its properties, before they shall become
delinquent and (b) all lawful claims (including claims for labor, materials and supplies) which, if unpaid, might give rise to a Lien upon any of its properties; provided, however, that no Consolidated Party shall be required to
pay any such tax, assessment, charge, levy or claim which is being contested in good faith by appropriate proceedings and as to which adequate reserves therefor have been established in accordance with GAAP. 
  

	 	6.06 	Insurance. 

 Each Loan Party will, and will
cause each of its Subsidiaries to, at all times maintain in full force and effect insurance (including worker’s compensation insurance, liability insurance, casualty insurance and business interruption insurance) with financially sound and
reputable insurance companies not Affiliates of the Borrowers (excluding the Borrowers’ mutual insurance arrangement for workers compensation insurance in Idaho), 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 covering such risks and liabilities and with such deductibles or self insurance retentions as are customarily carried under similar
circumstances by such other Persons. The Collateral Agent shall be named as additional insured with respect to any such insurance providing coverage in respect of any Collateral, and the Borrowers shall (i) ensure that each provider of any such
insurance shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to the Collateral Agent and the Administrative Agent, that it will give the Collateral Agent and the Administrative Agent at least
thirty (30) days’ prior written notice (or, in the case of cancellation due to non payment of premiums, at least ten (10) days’ prior written notice) before any such policy or policies shall be canceled, and (ii) use
commercially reasonable efforts to ensure that each provider of any such insurance shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to Collateral Agent, that it will give the Collateral
Agent and the Administrative Agent at least thirty (30) days’ prior written notice before any such policy or policies shall be materially altered in a manner adverse to the interest of Administrative Agent and/or the Lenders, and, if the
provider does not so agree, the Borrowers agree that it shall give such notice to the Collateral Agent and the Administrative Agent. 
  

	 	6.07 	Maintenance of Property; Management of Timberlands. 

 Each Loan Party will, and will cause each of its Subsidiaries to, maintain and preserve its properties and equipment material to the conduct of its business in good repair, working order and condition, normal wear and tear and Involuntary
Dispositions excepted. Each Loan Party will, and will cause each of its Subsidiaries to, manage its Timberlands in accordance with the guidelines established by either the American Forest & Paper Association’s Sustainable Forestry
Initiative or the Forest Stewardship Council. 
  

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	 	6.08 	Use of Proceeds. 

 The Borrowers will use the
proceeds of the Loans and will use the Letters of Credit solely for the purposes set forth in Section 5.15. 
  

	 	6.09 	Audits/Inspections. 

 Upon reasonable notice
and during normal business hours, each Loan Party will, and will cause each of its Subsidiaries to, permit representatives appointed by the Administrative Agent or the Required Lenders, including, without limitation, independent accountants, agents,
attorneys, and appraisers to visit and inspect its property, including its books and records, its accounts receivable and inventory, its facilities and its other business assets, and to make photocopies or photographs thereof and to write down and
record any information such representative obtains and shall permit the Administrative Agent or its representatives to investigate and verify the accuracy of information provided to the Lenders and to discuss all such matters with the officers,
employees and representatives of such Person; provided, however, that when an Event of Default has occurred and is continuing, 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 Borrowers at any time during normal business hours and, to the extent commercially practicable, with advance notice. 
  

	 	6.10 	Financial Covenants. 

 (a) Interest
Coverage Ratio. The Interest Coverage Ratio, as of the last day of each fiscal quarter of the Consolidated Parties, shall be greater than or equal to the ratio as determined in accordance with the grid below: 
  

			
	 Period
	  	 Interest Coverage Ratio

	 Closing Date to September 30, 2010
	  	2.50 to 1.00
	 October 1, 2010 to September 30, 2011
	  	2.75 to 1.00
	 October 1, 2011 and thereafter
	  	3.00 to 1.00

 (b) Collateral Coverage Ratio. Subject to Section 6.13(b), at all times, the
Collateral Coverage Ratio shall be greater than 2.25:1.00. 
  

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 (c) Funded Indebtedness to Capitalization Ratio. At all times the Funded Indebtedness to
Capitalization Ratio shall be less than or equal to the percentage as determined in accordance with the grid below: 
  

			
	 Period
	  	Funded Indebtedness to
Capitalization Ratio
	 Closing Date to September 30, 2009
	  	60.0%
	 October 1, 2009 and thereafter
	  	55.0%

 Following the Spin-off, the financial covenants set forth in this Section 6.10 shall
be calculated on a Pro Forma Basis. 
  

	 	6.11 	Additional Guarantors. 

 The Administrative
Borrower shall notify the Administrative Agent at the time that any Person becomes a wholly-owned Material Subsidiary and promptly thereafter (and in any event within 30 days), cause each such Person (other than any Foreign Subsidiary to the
extent the joinder as a Guarantor by such Foreign Subsidiary could reasonably be expected to (1) cause the undistributed earnings of such Foreign Subsidiary as determined for United States federal income tax purposes to be treated as a
deemed dividend to such Foreign Subsidiary’s United States parent or (2) result in any material adverse tax consequences) to (i) become a Guarantor by executing and delivering to the Administrative Agent a Joinder Agreement, and
(ii) deliver to the Administrative Agent documents of the types referred to in clauses (iii), (iv) and (v) of Section 4.01(a) and favorable opinions of counsel to such Person (which shall cover, among other things,
the legality, validity, binding effect and enforceability of the documentation referred to herein), all in form, content and scope reasonably satisfactory to the Administrative Agent. 
  

	 	6.12 	Performance of Obligations. 

 Each of the
Loan Parties will, and will cause each of its Subsidiaries to, pay when due all Indebtedness under all material agreements, indentures, mortgages, security agreements or other debt instruments to which it is a party or by which it is bound.

  

	 	6.13 	Pledged Collateral. 

 (a) The Borrowers
shall, and shall cause each Subsidiary to, cause (a) 100% of the issued and outstanding Capital Stock of each Domestic Subsidiary (other than Clearwater, unless the Spin-off has not occurred as of May 15, 2009) and (b) 65% (or such
greater percentage that, due to a change in an applicable Law after the date hereof, (1) could not reasonably be expected to cause the undistributed earnings of such Foreign Subsidiary as determined for United States federal income tax purposes
to be treated as a deemed dividend to such Foreign Subsidiary’s United States parent and (2) could not reasonably be expected to cause any material adverse tax consequences) of the issued and outstanding Capital Stock entitled to vote
(within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding Capital Stock not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary directly owned by a
Borrower or any Material Domestic Subsidiary to be subject at all times to a first priority, perfected Lien in favor of the Collateral Agent pursuant to the terms and conditions of the Collateral Documents, together with opinions of counsel and any
filings and deliveries reasonably necessary in connection therewith to perfect the security interests therein, all in form and substance reasonably satisfactory to the Collateral Agent. 
  

 84 

 (b) The Borrowers shall, and shall cause each Subsidiary to, subject to the terms of subsections
(d) and (e) below, cause certain Timberlands with a Consolidated Collateral Value sufficient to cause the Collateral Coverage Ratio to equal or exceed 2.25 to 1.0 on a Pro Forma Basis now owned or hereafter acquired by the Loan Parties to
be subject at all times to a valid, first priority perfected Lien (subject to Permitted Liens) granted by the Loan Parties in favor of the Collateral Agent for the benefit of the Secured Creditors to secure the Secured Obligations pursuant to the
terms of the Collateral Documents and such other security documents as the Collateral Agent or the Administrative Agent shall reasonably request. If at any time (x) there exists a deficiency in the amount of the Collateral required to satisfy
the Collateral Coverage Ratio or (y) the Borrowers elect to pledge additional Timberlands as contemplated under Section 6.01(i) to replace certain Specified Impacted Timberlands, the Borrowers shall (i) within fifteen
(15) Business Days of (u) in the case of preceding clause (x), the earlier of (A) a Responsible Officer of a Loan Party becoming aware thereof or (B) notice thereof from the Administrative Agent or the Collateral Agent or
(v) in the case of preceding clause (y), the Borrowers’ electing to pledge additional Timberlands as contemplated therein, identify additional Timberlands as additional Collateral necessary to secure the Secured Obligations in an aggregate
amount sufficient to eliminate such deficiency and provide any relevant information regarding such additional Timberlands as reasonably requested by the Collateral Agent and (ii) within thirty (30) days of the earlier of (A) or
(B) above, deliver (I) title searches and/or lot book reports on such Timberlands, (II) fully executed and notarized Timberland Mortgages with respect to such additional Timberlands to secure the Secured Obligations in an aggregate amount
sufficient to eliminate such deficiency (or in the case of Timberlands pledged as a result of Section 6.01(i), in an amount required to ensure compliance with the Collateral Coverage Ratio) and (III) (x) in the case of newly
acquired Timberlands, an Off-Cycle Timberland Appraisal and (y) in the case of Timberlands which were the subject of the most recently delivered Opening Timberland Appraisal and/or Timberland Appraisal Update, a Special Pledged Timberland
Valuation Report, in each case evidencing the value of such additional Pledged Timberlands. The Borrowers and their Subsidiaries will deliver the Collateral Documents and such additional security documents as the Collateral Agent or the
Administrative Agent shall reasonably request together with certified resolutions and other organizational and authorizing documents of the Loan Parties certifying that the Loan Parties are authorized to deliver the applicable Collateral Documents
and other security documents, favorable opinions of counsel to the Loan Parties (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to above and the perfection of the
Collateral Agent’s Liens thereunder), all in form, content and scope reasonably satisfactory to the Administrative Agent. Following the satisfaction of the requirements set forth above concerning the pledge of replacement Timberlands for
Specified Impacted Timberlands and provided the Collateral Coverage Ratio is equal to or greater than 2.25 to 1.0 on a Pro Forma Basis, the Collateral Agent shall release such Specified Impacted Timberlands at the expense of the Borrowers in
accordance with its customary practices. 
  

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 (c) Notwithstanding the foregoing, so long as no Default or Event of Default exists or would otherwise
result therefrom and so long as the Borrowers can demonstrate compliance with the Collateral Coverage Ratio on a Pro Forma Basis, the Borrowers shall be permitted from time to time to (i) substitute additional Timberlands reasonably
satisfactory to the Collateral Agent and the Administrative Agent as Collateral for Timberlands previously pledged as Collateral and/or (ii) request that certain Collateral be released, in each case, so long as, prior to any release of
Collateral, the Borrowers shall deliver to the Collateral Agent and the Administrative Agent a certificate of a Responsible Officer of Potlatch demonstrating, to the satisfaction of the Administrative Agent, that after giving effect to such release
(and any new Collateral pledged in substitution therefor) the Collateral Coverage Ratio is equal to or greater than 2.25 to 1.0 on a Pro Forma Basis. In connection with the delivery of additional Collateral, the Borrowers and any applicable
Subsidiaries shall deliver to the Administrative Agent (i) title searches and/or lot book reports on such Timberlands, (ii) fully executed and notarized Timberland Mortgages with respect to such additional Timberlands, (iii) with
respect to any additional timberlands that are being acquired and provided as Collateral (x) in the case of newly acquired Timberlands, an Off-Cycle Timberland Appraisal and (y) in the case of Timberlands which were the subject of the most
recently delivered Opening Timberland Appraisal and/or Timberland Appraisal Update, a Special Pledged Timberland Valuation Report, in each case evidencing the value of such additional Pledged Timberlands, which Off-Cycle Timberland Appraisal or
Special Pledged Timberland Valuation Report, as applicable, shall demonstrate a value for such additional Timberlands that is equal to or greater than the value for the Timberlands that are being released based upon the most recent Consolidated
Collateral Value, (iv) with respect to any Pledged Timberlands that are being released as Collateral, to the extent necessary to calculate the Consolidated Collateral Value, a Special Pledged Timberland Valuation Report and (v) such other
documents as the Collateral Agent shall reasonably request. To the extent the Borrowers request the substitution of Timberlands and the related release of Timberlands in connection with such substitution in accordance with the terms hereof, Potlatch
shall identify to the Administrative Agent and the Collateral Agent which Timberlands are to be released. If any release is permitted hereunder in accordance with the terms of this Section 6.13(c), the Collateral Agent shall release such
Collateral at the expense of the Borrowers in accordance with its customary practices. 
 (d) Notwithstanding the foregoing, so long as no
Default or Event of Default exists or would otherwise result therefrom and so long as the Borrowers can demonstrate compliance with the Collateral Coverage Ratio on a Pro Forma Basis, the Borrowers shall be permitted to request that certain
Collateral be released in connection with any Permitted Asset Disposition which includes Pledged Timberlands. To the extent the Borrowers requests the release of certain Collateral in accordance with the terms hereof, the Administrative Borrower
shall (i) identify to the Collateral Agent which Timberlands or other property are to be released and (ii) to the extent necessary to calculate the Consolidated Collateral Value, provide a Special Pledged Timberland Valuation Report.
Thereafter, the Collateral Agent shall release such Collateral at the expense of the Borrowers in accordance with its customary practices. 
 Notwithstanding the foregoing, (i) the assets subject to the Spin-off shall not be included in the Collateral and (ii) Clearwater’s equity interests shall not be included in the Collateral, unless the Spin-off shall not have
occurred on or before May 15, 2009. 
  

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	 	6.14 	Further Assurances. 

 (a) The Borrowers
shall, and shall cause each Subsidiary to, upon the reasonable request of the Administrative Agent, promptly perform or cause to be performed any and all acts and execute or cause to be executed any and all documents for filing under the provisions
of the Uniform Commercial Code or any other Law which are reasonably necessary or advisable to maintain in favor of the Administrative Agent, for the benefit of the Lenders, Liens on the Collateral that are duly perfected in accordance with the
requirements of, or the obligations of the Loan Parties under, the Loan Documents and all applicable Laws. 
 (b) Following the Closing Date,
to the extent not already provided in form, substance and scope reasonably satisfactory to the Collateral Agent, the Borrowers shall diligently pursue, and use commercially reasonable efforts to obtain, completed title searches on the Pledged
Timberlands, such title searches to be in form, substance and scope reasonably satisfactory to the Collateral Agent. To the extent (x) any material defects in title are identified (as reasonably determined by the Collateral Agent) in such title
searches, or (y) the Collateral Agent otherwise reasonably determines that any material defect in title arising from claims of third parties otherwise exists with respect to any portion of the Pledged Timberlands and such defect is reasonably
expected to result in a diminution of value of such Pledged Timberlands that would result in the Borrowers’ failure to maintain a Collateral Coverage Ratio of 2.25 to 1.0, the Borrowers shall in each case either (i) promptly cure such
title defects to the reasonable satisfaction of the Collateral Agent or (ii) promptly substitute new Collateral reasonably satisfactory to the Collateral Agent for such affected Collateral in accordance with the terms of
Section 6.13. 
 Notwithstanding anything to the contrary herein, it is hereby agreed that correction deeds or other similar
agreements relating to the Timberland Mortgages may be entered into by the Collateral Agent and the Borrowers to correct or replace any legal descriptions which are found to contain any errors upon receiving the final title searches required to be
delivered by the Borrowers hereunder. 
 6.15  Timberland Appraisals and Appraisal Updates. 
 The Borrowers will obtain, at their expense, and deliver to the Collateral Agent and the Administrative Agent (i) on or before March 1 of each
year during the term of this Agreement (beginning with March 1, 2010), an Annual Timberland Appraisal Update as of January 1 of such calendar year, (ii) to the extent requested by the Administrative Agent or the Required Lenders upon
an event or occurrence that the Administrative Agent or the Required Lenders reasonably believe in good faith has resulted or could result in the material diminution of the value of the Pledged Timberlands, promptly and in any event within
forty-five (45) days of the request therefor, an Off-Cycle Timberland Appraisal, (iii) in connection with any acquisition of additional Pledged Timberlands (which are not otherwise the subject of the most recently delivered Timberland
Appraisal and/or Timberland Appraisal Update), as required pursuant to Section 6.13(b) or (c), an Off-Cycle Timberland Appraisal and (iv) at time of any disposition or release of Pledged Timberlands or the addition of new
Pledged Timberlands to the extent necessary to calculate the Consolidated Collateral Value, a Special Pledged Timberland Valuation Report for such disposed, released or additional Pledged Timberlands. The Borrowers 

  

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and their Subsidiaries will promptly provide the Approved Appraiser with any information reasonably necessary or requested by such Approved Appraiser to
complete or perform any Annual Timberland Appraisal Update, Off-Cycle Timberland Appraisal or Special Pledged Timberland Valuation Report including, without limitation, the updated timber inventory referred to in clause (i) in the definition of
Annual Timberland Appraisal Update. 
  

	 	6.16 	Completion of Spin-off. 

 To the extent the
Spin-off occurs, the Loan Parties shall (i) notify the Administrative Agent of the initial advance made pursuant to the Clearwater Credit Facility on the date of such advance, (ii) conduct the Spin-off on terms substantially similar to
those set forth herein and in Clearwater’s Form 10 filed on November 6, 2008 and such additional public filings made with the SEC on or before the Closing Date, (iii) cause Clearwater to affirm its retention of the obligation to pay
the Credit Sensitive Debentures in an amount equal to $100,000,000 and (iv) cause Clearwater to borrow $50,000,000 under the Clearwater Credit Facility which proceeds shall immediately be transferred to Potlatch Land & Lumber.

 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 (to the extent such Letter of Credit is not fully Cash Collateralized in accordance with Section 2.03(g)), each Loan Party hereby covenants and agrees to the following:

  

	 	7.01 	Indebtedness. 

 The Loan Parties will not
permit any Consolidated Party to contract, create, incur, assume or permit to exist any Indebtedness, except: 
 (a) Indebtedness arising
under this Agreement and the other Loan Documents; 
 (b) Indebtedness of the Borrowers and their Subsidiaries set forth in
Schedule 7.01 (and renewals, refinancings and extensions thereof on terms and conditions no less favorable to such Person than such existing Indebtedness); 
 (c) purchase money Indebtedness (including obligations in respect of Capital Leases or Synthetic Lease Obligations) hereafter incurred by the Borrowers or any of its Subsidiaries to finance the purchase of fixed
assets provided that (i) the total of all such Indebtedness for all such Persons taken together shall not exceed an aggregate principal amount of $30,000,000 at any one time outstanding; (ii) such Indebtedness when incurred shall
not exceed the purchase price of the asset(s) financed; and (iii) no such Indebtedness shall be refinanced for a principal amount in excess of the principal balance outstanding thereon at the time of such refinancing; 
 (d) obligations of the Borrowers in respect of Swap Contracts entered into in order to manage existing or anticipated interest rate or exchange rate
risks and not for speculative purposes; 
  

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 (e) intercompany Indebtedness and Guarantees permitted under Section 7.06; 
 (f) in addition to the Indebtedness otherwise permitted by this Section 7.01, other Indebtedness hereafter incurred by the Borrowers or any
of its Subsidiaries, provided that (i) with respect to any Indebtedness that exceeds in the aggregate 5% of Consolidated Total Assets in principal amount such Indebtedness shall be unsecured, (ii) the Borrowers shall have delivered
to the Administrative Agent a Pro Forma Compliance Certificate demonstrating that, upon giving effect on a Pro Forma Basis to the incurrence of such Indebtedness and to the concurrent retirement of any other Indebtedness of any Consolidated Party,
the Loan Parties would be in compliance with the financial covenants set forth in Section 6.10(a)-(c) and (iii) the aggregate principal amount of such Indebtedness shall not exceed $150,000,000 at any time; and 
 (g) Indebtedness pursuant to (i) the Credit Sensitive Debentures in an aggregate outstanding principal amount not to exceed $100,000,000,
(ii) the 6.95% Debentures in an aggregate outstanding principal amount not to exceed $22,500,000, (iii) the Medium-Term Notes in an aggregate outstanding principal amount not to exceed $48,800,000. 
  

	 	7.02 	Liens. 

 The Loan Parties will not permit any
Consolidated Party to contract, create, incur, assume or permit to exist any Lien with respect to any of its Property, whether now owned or hereafter acquired, except for: 
 (a) Liens arising under the Loan Documents, which also may secure the Credit Sensitive Debentures, the 6.95% Debentures and the Medium-Term Notes, to the
extent such Indebtedness is permitted under Section 7.01(g); 
 (b) Liens (other than Liens created or imposed under ERISA) for
taxes, assessments or governmental charges or levies not yet due or Liens for taxes being contested in good faith by appropriate proceedings for which adequate reserves determined in accordance with GAAP have been established (and as to which the
Property subject to any such Lien is not yet subject to foreclosure, sale or loss on account thereof); 
 (c) statutory Liens of landlords
and Liens of carriers, warehousemen, mechanics, materialmen and suppliers and other Liens imposed by law or pursuant to customary reservations or retentions of title arising in the ordinary course of business; provided that such Liens
(i) secure only amounts not yet due and payable or, if due and payable, are unfiled and no other action has been taken to enforce the same or (ii) are being contested in good faith by appropriate proceedings for which adequate reserves
determined in accordance with GAAP have been established; provided further, the Property subject to any such Lien is not yet subject to foreclosure, sale or loss on account thereof; 
 (d) Liens (other than Liens created or imposed under ERISA) incurred or deposits made by any Consolidated Party in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, bids, leases, government contracts, performance and return-of-money bonds and
other similar obligations (exclusive of obligations for the payment of borrowed money); 
  

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 (e) Liens in connection with attachments or judgments (including judgment or appeal bonds)
provided that the judgments secured shall, within 30 days after the entry thereof, have been discharged or execution thereof stayed pending appeal, or shall have been discharged within 30 days after the expiration of any such stay;

 (f) easements, rights-of-way, restrictions (including zoning restrictions), rights of the public and governmental bodies in the beds of
waterways, boundary agreements, mineral reservations and mineral reservations of third parties in existence on the Closing Date, access restrictions, rights of Indian tribes, reservations in federal patents, minor defects or irregularities in title
and other similar charges or encumbrances not, in any material respect, impairing the use of the encumbered Property for its intended purposes; provided, that with respect to the Pledged Timberlands, such easements, rights-of-way,
restrictions (including zoning restrictions), minor defects or irregularities in title and other similar charges or encumbrances shall not, individually or in the aggregate, impair the value of the Pledged Timberlands as commercial timberlands in
any material respect or materially detract from the use of the Pledged Timberlands, in each case taken as a whole, as such; 
 (g) Liens on
Property of any Person securing purchase money Indebtedness (including Capital Leases and Synthetic Lease Obligations) of such Person permitted under Section 7.01(c), provided that any such Lien attaches to such Property
concurrently with or within 90 days after the acquisition thereof; 
 (h) leases or subleases granted to others not interfering in any
material respect with the business of any Consolidated Party; 
 (i) any interest of title of a lessor under, and Liens arising from UCC
financing statements (or equivalent filings, registrations or agreements in foreign jurisdictions) relating to, leases permitted by this Agreement; 
 (j) 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; 
 (k) Liens deemed to exist in connection with Investments in repurchase agreements permitted under Section 7.06; 
 (l) normal and customary rights of set-off upon deposits of cash in favor of banks or other depository institutions; 
 (m) Liens of a collection bank arising under Section 4-210 of the Uniform Commercial Code on items in the course of collection; 
 (n) Liens of sellers of goods to the Borrowers and any of their Subsidiaries arising under Article 2 of the Uniform Commercial Code or similar provisions of applicable law in the ordinary course of business, covering
only the goods sold and securing only the unpaid purchase price for such goods and related expenses; 
 (o) any interest of title of a buyer
in connection with, and Liens arising from UCC financing statements relating to, a sale of receivables permitted by this Agreement; 
  

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 (p) Liens existing as of the Closing Date and set forth on Schedule 7.02; 
 (q) Liens on property of a Person existing at the time such Person is merged with or into or consolidated with any Borrower or any Subsidiary of any
Borrower; provided that such Liens were in existence prior to the contemplation of such merger or consolidation and do not extend to any assets other than those of the Person merged into or consolidated with such Borrower or such Subsidiary;

 (r) Liens on property existing at the time of acquisition of the property by any Borrower or any Subsidiary of any Borrower, provided that
such Liens were in existence prior to the contemplation of such acquisition; 
 (s) Liens created or assumed in the ordinary course of
business of exploring for, developing or producing oil, gas or other minerals (including borrowings in connection therewith) on, or any interest in, or on any proceeds from the sale of, property acquired for such purposes, production therefrom
(including the proceeds thereof), or material or equipment located thereon; 
 (t) Liens arising from the pledge of any bonds, debentures,
notes or similar instruments which are purchased and held by any remarketing agent for the account of, or as agent for, the Borrowers; 
 (u)
conservation easements on Timberlands; provided, that with respect to the Pledged Timberlands, such conservation easements shall not, individually or in the aggregate, impair the value of the Pledged Timberlands as commercial timberlands in
any material respect or materially detract from the use of the Pledged Timberlands, in each case taken as a whole, as such; 
 (v) Liens, if
any, in favor of the L/C Issuer and/or Swing Line Lender to cash collateralize or otherwise secure the obligations of a Defaulting Lender or an Impacted Lender to fund risk participations hereunder; 
 (w) Liens not otherwise permitted by this Section 7.02 securing Indebtedness or other obligations that do not exceed in the aggregate 5% of
Consolidated Total Assets at any time outstanding; and 
 (x) any extension, renewal or replacement, in whole or in part, of any Lien
described in the foregoing clauses (a) through (w); provided that any such extension, renewal or replacement shall be no more restrictive in any material respect than the Lien extended, renewed or replaced and shall not extend to any other
Property of the Loan Parties other than such item of Property originally covered by such Lien or by improvement thereof or additions or accessions thereto. 
  

	 	7.03 	Nature of Business. 

 The Loan Parties will
not permit any Consolidated Party to materially alter the character or conduct of the business conducted by such Person as of the Closing Date other than the transfers necessary to consummate and the consummation of the Spin-off. 
  

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	 	7.04 	Consolidation, Merger, Dissolution, etc. 

 Except in connection with a Permitted Asset Disposition, the Loan Parties will not permit any Consolidated Party to enter into any transaction of merger or consolidation or liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution); provided that, notwithstanding the foregoing provisions of this Section 7.04 but subject to the terms of Sections 7.11 and 7.12, (a) any Borrower may merge or consolidate with any of its
Subsidiaries, provided that such Borrower shall be the continuing or surviving corporation, (b) any Loan Party other than Potlatch may merge or consolidate with any other Loan Party other than Potlatch; provided that in the case
of the merger of any Borrower, such Borrower shall be the continuing or surviving corporation, (c) any Consolidated Party which is not a Loan Party may be merged or consolidated with or into any Loan Party other than Potlatch, provided
that such Loan Party shall be the continuing or surviving corporation, (d) any Consolidated Party which is not a Loan Party may be merged or consolidated with or into any other Consolidated Party which is not a Loan Party, (e) any
Subsidiary of a Borrower may merge with any Person that is not a Loan Party in connection with an Asset Disposition permitted under Section 7.05, (f) any Borrower or any Subsidiary of any Borrower may merge with any Person other
than a Consolidated Party in connection with a Permitted Acquisition, provided that, if such transaction involves a Borrower, such Borrower shall be the continuing or surviving corporation and (g) any wholly owned Subsidiary of such
Borrower may dissolve, liquidate or wind up its affairs at any time provided that such dissolution, liquidation or winding up, as applicable, could not have a Material Adverse Effect. 
  

	 	7.05 	Asset Dispositions. 

 The Loan Parties will
not permit any Consolidated Party to make any Asset Disposition or enter into any agreement to make any Asset Disposition, except: 
 (a) any
Consolidated Party may sell, lease, transfer or otherwise dispose 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
any such transaction are reasonably promptly applied to the purchase price of such replacement property; 
 (b) any Subsidiary may sell,
lease, transfer or otherwise dispose of Property to the Borrowers or to a wholly-owned Subsidiary; provided that if the transferor of such Property is a Guarantor, the transferee thereof must either be a Borrower or a Guarantor; 

(c) Asset Dispositions permitted by Section 7.04; 
 (d) Asset Dispositions by the Borrowers and their Subsidiaries of Property pursuant to sale-leaseback transactions to the extent such disposition is permitted by Section 7.13; 
 (e) the Borrowers and their Subsidiaries may sell, lease, transfer or otherwise dispose of assets, to the extent not otherwise permitted under this
Section 7.05; provided that (i) at the time of such Asset Disposition, no Default shall exist or would result therefrom, (ii) in connection with Asset Dispositions the aggregate Net Cash Proceeds of which are in excess
of $50,000,000, the Borrowers shall have delivered to the Administrative Agent a Pro Forma Compliance Certificate demonstrating that, upon giving effect to such Asset Disposition on a Pro Forma Basis, the Loan Parties would be in compliance with the
financial covenants set forth in Section 6.10(a)-(c) and (iii) the aggregate Net Cash Proceeds of all Asset Dispositions (i.e., excluding ordinary course sales of timber and 1031 like-kind exchanges) pursuant to this clause
(e) over the term of this Agreement shall not exceed $600,000,000; and 
  

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 (f) Asset Dispositions necessary to consummate the Spin-off, on terms substantially similar to those
described and disclosed on Clearwater’s Form 10 filed on November 6, 2008 and such additional public filings made with the SEC on or before the Closing Date; 
 provided, however, that any Asset Disposition pursuant to clauses (a) through (e) shall be for fair market value. 
  

	 	7.06 	Investments. 

 The Loan Parties will not
permit any Consolidated Party to make any Investments, except for: 
 (a) Investments consisting of cash and Cash Equivalents; 
 (b) Investments consisting of accounts receivable created, acquired or made by any Consolidated Party in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms; 
 (c) Investments consisting of Capital Stock, obligations, securities or other
property received by any Consolidated Party in settlement of accounts receivable (created in the ordinary course of business) from bankrupt obligors; 
 (d) Investments existing as of the Closing Date and set forth in Schedule 7.06; 
 (e)
Investments consisting of advances or loans to directors, officers, employees, agents, customers or suppliers that do not exceed $5,000,000 in the aggregate at any one time outstanding; provided that all such advances must be in compliance
with applicable Laws, including, but not limited to, the Sarbanes-Oxley; 
 (f) Investments in any Loan Party; 
 (g) Investments consisting of an Acquisition by any Borrower or any Subsidiary of any Borrower, provided that (i) with respect to any
Property acquired (or the Property of the Person acquired) that does not constitute timber or timberlands, such Property is used or useful in the same or a similar line of business as the Borrowers and their Subsidiaries were engaged in on
the Closing Date (the Spin-off being deemed to have occurred immediately prior to the Closing Date for these purposes), or any reasonable extension or expansions thereof, (ii) in the case of an Acquisition of the Capital Stock of another
Person, the board of directors (or other comparable governing body) of such other Person shall have duly approved such Acquisition, (iii) the Borrowers shall have delivered to the Administrative Agent, to the extent the aggregate consideration
paid in connection with such Acquisition is equal to or greater than $50,000,000, (A) a Pro Forma Compliance Certificate demonstrating that, upon giving effect to such Acquisition on a Pro Forma Basis, the Loan Parties would be in compliance
with the financial covenants set forth in Section 6.10(a)-(c) and (B) for an Acquisition of Property other than timber or 

  

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timberlands, a certificate of a Responsible Officer of the Borrowers (1) demonstrating that, upon giving effect to such Acquisition, at least 90% of
Consolidated EBITDDA for the most recently ended fiscal year period for each of the Consolidated Parties and the acquired Person or Property preceding the date of such Acquisition with respect to which the Administrative Agent shall have received
the Required Financial Information has been audited in accordance with GAAP, in the case of the Borrowers, as required by Section 6.01(a) and, in the case of the acquired Person or Property, by an independent certified public accountant
of recognized national standing reasonably acceptable to the Administrative Agent (whose opinion shall not be limited as to the scope or qualified as to going concern status or any other material qualifications or exceptions) and (2) to the
extent that audited financial information for the acquired Person or Property is required under the terms of the foregoing clause (1), certifying that the quarterly financial statements with respect to the Person or Property acquired for each fiscal
quarter period ending after the date of the last audit and immediately prior to the date of such Acquisition have been prepared in accordance with GAAP (subject to audit adjustments and the absence of footnotes) and reviewed by independent certified
public accountants of recognized national standing reasonably acceptable to the Administrative Agent, (iv) the representations and warranties made by the Loan Parties in all Loan Documents shall be true and correct in all material respects at
and as if made as of the date of such Acquisition (after giving effect thereto) except to the extent such representations and warranties expressly relate to an earlier date, (v) if such transaction involves the purchase of an interest in a
partnership between any Borrower (or a Subsidiary of any Borrower) as a general partner and entities unaffiliated with such Borrower or such Subsidiary as the other partners, such transaction shall be effected by having such equity interest acquired
by a corporate holding company directly or indirectly wholly-owned by such Borrower newly formed for the sole purpose of effecting such transaction and (vi) after giving effect to such Acquisition, there shall be at least $50,000,000 of
availability existing under the Aggregate Commitments; 
 (h) Investments by a Loan Party in Potlatch Employee Benefits Organization, Inc.,
Potlatch Foundation II and Potlatch Foundation for Higher Education, in each case in accordance with past practices of such Loan Party; 
 (i) one or more notes payable by Clearwater to Potlatch evidencing loans in connection with the Credit Sensitive Debentures and Clearwater’s obligations to pay the interest and principal of such Credit Sensitive Debentures after the
Spin-off; or 
 (j) one or more asset transfers to and from Clearwater and the Loan Parties in connection with the Spin-off. 
  

	 	7.07 	Restricted Payments. 

 The Loan Parties will
not permit any Consolidated Party to, directly or indirectly, declare, order, make or set apart any sum for or pay any Restricted Payment, except (a) to make dividends or other distributions payable to any Loan Party (directly or indirectly
through Subsidiaries), (b) as permitted by Section 7.06, Section 7.08 or Section 7.09, (c) the Borrowers shall be permitted to (x) declare and make the distribution to the shareholders of Potlatch
of the stock of Clearwater in connection with the Spin-off and (y) otherwise pay dividends and distributions to the shareholders of Potlatch; provided, that in the case of this clause (y), (i) no Default or Event of Default shall
exist on the date of, or shall result from, the making of any such distributions and (ii) upon giving effect on a Pro Forma Basis to such transaction, the Borrowers would be in compliance with the financial covenants set forth in
Section 6.10(a)-(c), and (d) to make distributions necessary solely for the purposes of maintaining Potlatch’s REIT status. 
  

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	 	7.08 	Limitation on Actions with Respect to Other Indebtedness. 

 No Loan Party will, nor will it permit any of its Subsidiaries to: 
 (a) upon the occurrence and continuance
of a Default or Event of Default (i) amend or modify any of the terms of any Indebtedness of such Person (other than Indebtedness arising under the Loan Documents) if such amendment or modification would add or change any terms in a manner
materially adverse to the Lenders, or (ii) materially shorten the final maturity or average life to maturity thereof or require any payment thereon to be made sooner than originally scheduled or increase the interest rate or fees applicable
thereto, or (iii) make (or give any notice with respect thereto) any voluntary or optional payment or prepayment thereof, or make (or give any notice with respect thereto) any redemption or acquisition for value or defeasance (including without
limitation, by way of depositing money or securities with the trustee with respect thereto before due for the purpose of paying when due), refund, refinance or exchange with respect thereto; provided, however that the Borrowers may
Repay Indebtedness in accordance with Section 7.07; 
 (b) after the issuance thereof, amend or modify any of the terms of any
Subordinated Indebtedness of such Person if such amendment or modification would (i) add or change any terms in a manner materially adverse to such Person or to the Lenders, (ii) materially shorten the final maturity or average life to
maturity thereof, (iii) require any payment thereon to be made sooner than originally scheduled, (iv) increase the interest rate or fees applicable thereto or (v) change any subordination provision thereof in a manner adverse to the
Lenders; 
 (c) make interest payments in respect of any Subordinated Indebtedness in violation of the applicable subordination provisions;

 (d) make (or give any notice with respect thereto) any voluntary or optional payment or prepayment in respect of any Subordinated
Indebtedness; or 
 (e) make (or give any notice with respect thereto) any redemption, acquisition for value or defeasance (including without
limitation, by way of depositing money or securities with the trustee with respect thereto before due for the purpose of paying when due), refund, refinance or exchange of any Subordinated Indebtedness. 
  

	 	7.09 	Transactions with Affiliates. 

 The Loan
Parties will not permit any Consolidated Party to enter into or permit to exist any transaction or series of transactions with any officer, director, shareholder, Subsidiary or Affiliate of such Person other than (a) advances of working capital
to any Loan Party, (b) transfers of cash and assets to any Loan Party, (c) intercompany transactions expressly permitted by Section 7.01, Section 7.04, Section 7.05, Section 7.06, or
Section 7.07, (d) normal compensation and reimbursement of expenses of officers and directors, (e) agreements and arrangements entered into with employees of the Loan Parties in connection with termination of their employment
therewith, and (f) except as otherwise specifically limited in this Agreement, other transactions which are 

  

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entered into in the ordinary course of such Person’s business on terms and conditions substantially as favorable to such Person as would be obtainable
by it in a comparable arms-length transaction with a Person other than an officer, director, shareholder, Subsidiary or Affiliate. 
  

	 	7.10 	Fiscal Year; Organizational Documents. 

 The
Loan Parties will not permit any Consolidated Party to (a) change its fiscal year, (b) change its accounting policies or reporting practices except as required by GAAP or in connection with the adoption of International Financial Reporting
Standards on terms reasonably acceptable to the Administrative Agent or (c) amend, modify or change its articles of incorporation (or corporate charter or other similar organizational document) or bylaws (or other similar document) to the
extent such change, amendment or modification could reasonably be expected to have a Material Adverse Effect. 
  

	 	7.11 	Limitation on Restricted Actions. 

 The Loan
Parties will not permit any Consolidated Party to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on the ability of any such Person to (a) pay dividends or make any other
distributions to any Loan Party on its Capital Stock or with respect to any other interest or participation in, or measured by, its profits, (b) pay any Indebtedness or other obligation owed to any Loan Party, (c) make loans or advances to
any Loan Party, (d) sell, lease or transfer any of its Property to any Loan Party, or (e) act as a Loan Party and pledge its assets pursuant to the Loan Documents or any renewals, refinancings, exchanges, refundings or extension thereof,
except (in respect of any of the matters referred to in clauses (a)-(d) above) for such encumbrances or restrictions existing under or by reason of (i) this Agreement and the other Loan Documents, (ii) applicable law,
(iii) any document or instrument governing Indebtedness incurred pursuant to Section 7.01(c), provided that any such restriction contained therein relates only to the asset or assets constructed or acquired in connection
therewith, (iv) any Permitted Lien or any document or instrument governing any Permitted Lien, provided that any such restriction contained therein relates only to the asset or assets subject to such Permitted Lien or (v) customary
restrictions and conditions contained in any agreement relating to the sale of any Property permitted under Section 7.05 pending the consummation of such sale. 
  

	 	7.12 	Ownership of Subsidiaries. 

 Notwithstanding
any other provisions of this Agreement to the contrary, the Loan Parties will not permit any Consolidated Party to (i) permit any Person (other than the Borrowers or any wholly owned Subsidiary of a Borrower) to own any Capital Stock of any
Subsidiary of the Borrowers, except (A) to qualify directors where required by applicable law or to satisfy other requirements of applicable law with respect to the ownership of Capital Stock of Foreign Subsidiaries, (B) as a result of or
in connection with a dissolution, merger, consolidation or disposition of a Subsidiary not prohibited by Section 7.04 or Section 7.05, (C) in connection with the ownership of an interest in a joint venture permitted
under Section 7.06 or (D) in connection with the distribution of the shares of the common stock of Clearwater to the shareholders of Potlatch in connection with the Spin-off, (ii) permit any Subsidiary of the Borrowers to issue
or have outstanding any shares of preferred Capital Stock or (iii) permit, create, incur, assume or suffer to exist any Lien on any Capital Stock of any Subsidiary of the Borrowers, except for Permitted Liens. 
  

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	 	7.13 	Sale Leasebacks. 

 The Loan Parties will not
permit any Consolidated Party to enter into any Sale and Leaseback Transaction after the date of this Agreement, except to the extent the aggregate net book value of the Property sold or transferred (or to be sold or transferred) in connection with
all such Sale and Leaseback Transactions does not exceed $25,000,000. 
  

	 	7.14 	No Further Negative Pledges. 

 The Loan
Parties will not permit any Consolidated Party to enter into, assume or become subject to any agreement (except the Clearwater Credit Facility and documentation in connection with the Spin-off) prohibiting or otherwise restricting the existence of
any Lien upon any of its Property in favor of the Administrative Agent (for the benefit of the Lenders) for the purpose of securing the Obligations, whether now owned or hereafter acquired, or requiring the grant of any security for any obligation
if such Property is given as security for the Obligations, except (a) in connection with any document or instrument governing Indebtedness incurred pursuant to Section 7.01(c), provided that any such restriction contained therein
relates only to the asset or assets constructed or acquired in connection therewith, (b) in connection with any Permitted Lien or any document or instrument governing any Permitted Lien, provided that any such restriction contained
therein relates only to the asset or assets subject to such Permitted Lien and (c) pursuant to customary restrictions and conditions contained in any agreement relating to the sale of any Property permitted under Section 7.05,
pending the consummation of such sale. 
  

	 	7.15 	Subsidiaries. 

 The Loan Parties will not
create, acquire or permit to exist any (a) new Subsidiaries unless Section 6.11 hereof, if applicable, has been, or will be concurrently complied with, or (b) Foreign Subsidiaries to the extent that the revenue, assets and cash
flows of the Foreign Subsidiaries would exceed in the aggregate 15% of the revenue, assets and cash flows of the Consolidated Parties on a consolidated basis. 
  

	 	7.16 	Use of Proceeds. 

 The Loan Parties will not
use the proceeds of any Credit Extension, whether directly or indirectly, and whether immediately 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. 
  

	 	7.17 	Consolidated Capital Expenditures. 

 The Loan
Parties will not make or become legally obligated to make any Consolidated Capital Expenditure, except for Consolidated Capital Expenditures in the ordinary course of business not exceeding, in the aggregate for the Borrowers and it Subsidiaries
during each fiscal year, $35,000,000; provided, however, that so long as no Default has occurred and is continuing or would result from such expenditure, any portion of any amount set forth above, if not 

  

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expended in the fiscal year for which it is permitted above, may be carried over for expenditure in the next following fiscal year; and provided,
further, if any such amount is so carried over, it will be deemed used in the applicable subsequent fiscal year before the amount available for such fiscal year. 
 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 Borrowers or any other Loan Party fail to pay (i) when and as
required to be paid herein and in the currency required hereunder, any amount of principal of any Loan or any L/C Obligation, or (ii) within five Business Days after the same becomes due and in the currency required hereunder, any interest on
any Loan or on any L/C Obligation, or any commitment or other fee due hereunder, or (iii) within five Business Days after the same becomes due and in the currency required hereunder, any other amount payable hereunder or under any other Loan
Document; or 
 (b) Specific Covenants. The Borrowers shall 
 (i) default in the due performance or observance of any term, covenant or agreement contained in Sections 6.02, 6.08,
6.09, 6.10, 6.11, 6.13 or Article VII; 
 (ii) default in the due performance or observance
of any term, covenant or agreement contained in Section 6.01(a), (b), (c) or (d) and such default shall continue unremedied for a period of at least 5 Business Days after the earlier of a Responsible
Officer of a Borrower becoming aware of such default or written notice thereof by the Administrative Agent or any Lender; or 
 (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 the earlier of a Responsible Officer of a Borrower becoming aware of such default or written notice thereof by the Administrative Agent or any Lender or, if such failure cannot reasonably be cured within such 30-day period, 60 days
(but only to the extent such failure can reasonably be cured within such 60-day period) so long as the Borrowers have diligently commenced such cure and are diligently prosecuting the completion thereof; or 
 (d) Representations and Warranties. Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the
Borrowers or any other Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall prove untrue in any material respect on the date as of which it was deemed to have been made; or 

 

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 (e) Cross-Default. (i) Any Borrower or any Subsidiary (A) fails to make any payment when
due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise beyond the applicable grace period with respect thereto) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness
under Swap Contracts) having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than $12,500,000, or
(B) fails to observe or perform any other agreement or condition relating to any such Indebtedness (including the indentures or documentation for any of the Ratably Secured Obligations) or Guarantee or contained in any instrument or agreement
evidencing, securing or relating thereto beyond the applicable grace period with respect 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), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, 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 any 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 any Borrower or any Subsidiary is an Affected Party (as so defined) and, in either event,
the Swap Termination Value owed by such Borrower or such Subsidiary as a result thereof is greater than $12,500,000; or 
 (f) Insolvency
Proceedings, Etc. Any Loan Party or any of its Subsidiaries 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) A Borrower or any Subsidiary 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 
 (h) Judgments. There is entered against any Borrower or any Subsidiary (i) a final
judgment or order for the payment of money in an aggregate amount exceeding $12,500,000 (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 
  

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 (i) ERISA. (i) The minimum required contribution (as defined in Code Section 430(a)) has
failed to be contributed for any Pension Plan and could reasonably be expected to have a Material Adverse Effect or (ii) any of the following events or conditions, if such event or condition could reasonably be expected to result in taxes,
penalties, and other liabilities to any Consolidated Party in an aggregate amount greater than $12,500,000: (A) any lien shall arise on the assets of any Consolidated Party or any ERISA Affiliate in favor of the PBGC or a Plan; (B) an
ERISA Event shall occur with respect to a Single Employer Plan, which is, in the reasonable opinion of the Administrative Agent, likely to result in the termination of such Plan for purposes of Title IV of ERISA; (C) an ERISA Event shall occur
with respect to a Multiemployer Plan or Multiple Employer Plan, which is, in the reasonable opinion of the Administrative Agent, likely to result in (x) the termination of such Plan for purposes of Title IV of ERISA, or (y) any
Consolidated Party or any ERISA Affiliate incurring any liability in connection with a withdrawal from, reorganization of (within the meaning of Section 4241 of ERISA), or insolvency (within the meaning of Section 4245 of ERISA) of such
Plan; or (D) any prohibited transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) or breach of fiduciary responsibility shall occur which may subject any Consolidated Party or any ERISA Affiliate to any
liability under Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or under any agreement or other instrument pursuant to which any Consolidated Party or any ERISA Affiliate has agreed or is required to indemnify
any person against any such liability; or 
 (j) Invalidity of Loan Documents. Any Loan Document, at any time after its execution and
delivery and for any reason other than as expressly permitted hereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party contests in any manner the validity or enforceability 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 Loan Document; or 
 (k) Change of Control. There occurs any Change of Control with respect to the Borrowers; or 
 (l) Subordinated Indebtedness Documentation. (i) There shall occur and be continuing any “Event of Default” (or any comparable
term) under, and as defined in the documents evidencing or governing any Subordinated Debt, (ii) any of the Obligations for any reason shall cease to be “Designated Senior Debt” (or any comparable term) under, and as defined in the
documents evidencing or governing any Subordinated Indebtedness, (iii) any Indebtedness other than the Obligations shall constitute “Designated Senior Indebtedness” (or any comparable term) under, and as defined in, any documents
evidencing or governing any Subordinated Indebtedness or (iv) the subordination provisions of the documents evidencing or governing any Subordinated Indebtedness shall, in whole or in part, terminate, cease to be effective or cease to be
legally valid, binding and enforceable against any holder of the applicable Subordinated Indebtedness; or 
 (m) Spin-off. The
Spin-off causes the Borrowers to fail to be in compliance with the financial covenants set forth in Section 6.10 on a Pro Forma Basis. 
  

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	 	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 Borrowers; 
 (c) require that the Borrowers Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding
Amount thereof); and 
 (d) exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the
Loan Documents or applicable law; 
 provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with
respect to any 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 Borrowers 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. 

 Subject to the
applicable provisions regarding application of Collateral proceeds set forth in Section 3.07 of the Timberlands Mortgages and Section 9 of the Pledge Agreement, 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 Attorney Costs 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 and interest) payable
to the Lenders (including Attorney Costs and amounts payable under Article III), ratably among them in proportion to the amounts described in this clause Second payable to them; 
  

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 Third, to payment of that portion of the Obligations constituting accrued and unpaid Letter of
Credit Fees and interest on the Loans and L/C Borrowings and fees, premiums and scheduled periodic payments, and any interest accrued thereon, due under any Swap Contract between any Loan Party and any Lender, or any Affiliate of a Lender, to the
extent such Swap Contract is permitted by Section 7.01(d), ratably among the Lenders (and, in the case of such Swap Contracts, Hedge Banks) and the L/C Issuer in proportion to the respective amounts described in this clause Third
held by them; 
 Fourth, to (a) payment of that portion of the Obligations constituting unpaid principal of the Loans and L/C
Borrowings, (b) payment of breakage, termination or other payments, and any interest accrued thereon, due under any Swap Contract between any Loan Party and any Lender, or any Hedge Bank, to the extent such Swap Contract is permitted by
Section 7.01(d), (c) payments of amounts due under any Cash Management Agreement between any Loan Party and any Lender, or any Cash Management Bank and (d) Cash Collateralize that portion of L/C Obligations comprised of the
aggregate undrawn amount of Letters of Credit, ratably among the Lenders (and, in the case of such Swap Contracts, Hedge Banks) and the L/C Issuer in proportion to the respective amounts described in this clause Fourth held by them; and

 Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrowers 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 (other than with respect to the consent rights provided to the Borrowers in Section 9.06), and neither the Borrowers nor any other Loan Party shall 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 (including in its capacities as a potential Hedge Bank and a 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 

  

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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 X (including Section 10.05(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 Borrowers 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. 
  

	 	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 Borrowers or any of their Affiliates that is communicated to or obtained by the Person serving as the
Administrative Agent or any of its Affiliates in any capacity. 
  

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 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 Borrowers, 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. 
  

	 	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 Borrowers), 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. 
  

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	 	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 Administrative Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the
Borrowers, 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 with, so long as no Default
or Event of Default then exists, the consent of the Borrowers (such consent not to be unreasonably withheld or delayed), appoint a successor Administrative Agent meeting the qualifications set forth above; provided that if the Administrative Agent
shall notify the Borrowers 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 (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the L/C Issuer under any of the Loan Documents,
the retiring Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) 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 Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrowers to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers 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. 
  

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	 	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 Book Managers or Arrangers 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 Borrowers) 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 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, if 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. 
  

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 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 to authorize the Administrative Agent to vote in respect of the
claim of any Lender in any such proceeding. 
  

	 	9.10 	Collateral and Guaranty Matters. 

 Each of
the Lenders (including in its capacities as a potential Cash Management Bank and a potential Hedge Bank) and the L/C Issuer irrevocably authorize the Administrative Agent and the Collateral Agent, at their 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 (A) contingent indemnification obligations and (B) obligations and liabilities under Secured Cash Management Agreements and Secured Swap Contracts
as to which arrangements satisfactory to the applicable Cash Management Bank or Hedge Bank shall have been made) and the expiration or termination of all Letters of Credit (other than Letters of Credit as to which other arrangements satisfactory to
the Administrative Agent and the L/C Issuer shall have been made), (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) if approved, authorized or ratified
in writing in accordance with Section 10.01; 
 (b) to release any Guarantor from its obligations under the
Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder; 
 (c) 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 7.02(g); and 
 (d) to consent to any easement on the Pledged Timberlands to the extent such easement is permitted under Section 7.02(f) or
(u). 
 Each of the Administrative Agent, the Lenders (including in its capacities as a potential Cash Management Bank and a potential
Hedge Bank) and the L/C Issuer agree that Clearwater shall be (and shall be deemed) automatically released as a Borrower and a Loan Party under this Agreement and the other Loan Documents (including, without limitation, any Notes) concurrent with
the satisfaction of conditions for the initial advance pursuant to the Clearwater Credit Facility. 
 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
Guaranty pursuant to this Section 9.10. In each case as specified in this Section 9.10, the Administrative Agent will, at the Borrowers’ 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 Guaranty, in each case in accordance with the terms of the Loan Documents and this Section 9.10. 
  

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	 	9.11 	Secured Cash Management Agreements and Secured Swap Contract. 

 No Cash Management Bank or Hedge Bank that obtains the benefits of Section 8.03, any Guaranty or any Collateral by virtue of the provisions hereof or of any Guaranty or any Collateral by virtue of the
provisions hereof or of any Guaranty or any Collateral Document shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise in respect of the Collateral
(including the release or impairment of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents. Notwithstanding any other provision of this Article IX to the
contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to, Obligations arising under Secured Cash Management Agreements and Secured Swap Contracts unless
the Administrative Agent has received written notice of such Obligations, together with such supporting documentation as the Administrative Agent may request, from the applicable Cash Management Bank or Hedge Bank, as the case may be. 
 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 Borrowers or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrowers 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) 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; 
 (b) postpone any date fixed by this Agreement or any
other Loan Document for any payment (excluding mandatory prepayments) of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly
affected thereby; 
 (c) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to
clause (v) of the second proviso to this Section 10.01) any fees or other amounts payable hereunder or under any other Loan Document, or change the manner of computation of any financial ratio (including any change in any applicable
defined term) used in determining the Applicable Rate that would result in a reduction of any interest rate on any Loan or any fee payable hereunder without the written consent of each Lender directly affected thereby; provided,
however, that only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrowers to pay interest at the Default Rate; 
  

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 (d) 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; 
 (e) 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; 
 (f) release all or substantially all of the value of the Guarantees given by the Guarantors
without the written consent of each Lender; or 
 (g) release all or substantially all of the Collateral, without the written consent of each
Lender; 
 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 Letter of Credit Application 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; (iv) Section 10.07(h) may not be amended,
waived or otherwise modified without the consent of each Granting Lender all or any part of whose Loans are being funded by an SPC at the time of such amendment, waiver or other modification; and (v) the 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. Notwithstanding the foregoing, it is hereby agreed that the Administrative Agent or the Collateral Agent may enter into correction deeds or other
similar agreements with the Borrowers relating to the Timberland Mortgages and other Collateral Documents in accordance with Section 6.14(b) hereof without the consent of the Required Lenders. 
  

	 	10.02 	Notices; Effectiveness; Electronic Communications. 

 (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 Borrowers, 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 
  

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 (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire. 
 Notices and other communications sent by hand or overnight courier
service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications 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 and other communications delivered through electronic communications to the extent provided in
subsection (b) below, shall be effective as provided in such subsection (b). 
 (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 any 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 

  

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Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrowers, 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 Borrowers’ 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 Borrowers, 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 Borrowers, 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 change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the Borrowers, 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 review 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 Borrowers or their 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 Borrowers 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 Borrowers 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 Borrowers. 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 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 

  

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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. 
 Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them shall be vested
exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Collateral Agent and the Administrative Agent in accordance with Section 8.02 for the
benefit of all the Lenders and the L/C Issuer; provided, however, that the foregoing shall not prohibit (a) the Collateral Agent and the Administrative Agent from exercising on their own behalf the rights and remedies that inure
to its benefit (solely in their capacities as Collateral Agent and Administrative Agent, respectively) hereunder and under the other Loan Documents, (b) the L/C Issuer or the Swing Line Lender from exercising the rights and remedies that inure
to its benefit (solely in its capacity as L/C Issuer or Swing Line Lender, as the case may be) hereunder and under the other Loan Documents, (c) any Lender from exercising set-off rights in accordance with Section 10.09 (subject to
the terms of Section 2.13), or (d) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and
provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Administrative
Agent pursuant to Section 8.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 2.13, any Lender may, with the consent of the Required
Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders. 
  

	 	10.04 	Attorney Costs, Expenses and Taxes. 

 The
Borrowers agree (a) to pay or reimburse the Administrative Agent for all costs and expenses incurred in connection with the development, preparation, negotiation and execution of this Agreement and the other Loan Documents and any amendment,
waiver, consent or other modification of the provisions hereof and thereof (whether or not the transactions contemplated hereby or thereby are consummated), and the consummation and administration of the transactions contemplated hereby and thereby,
including all Attorney Costs, and (b) to pay or reimburse the Administrative Agent and each Lender for all reasonable costs and expenses incurred in connection with the enforcement, attempted enforcement, or preservation of any rights or
remedies under this Agreement or the other Loan Documents (including all such costs and expenses incurred during any “workout” or restructuring in respect of the Obligations and during any legal proceeding, including any proceeding under
any Debtor Relief Law), including all Attorney Costs. The foregoing costs and expenses shall include all search, filing, recording, title insurance and appraisal charges and fees and taxes related thereto, and other out-of-pocket expenses incurred
by the Administrative Agent and the cost of independent public accountants and other outside experts retained by the Administrative Agent or any Lender. All amounts due under this Section 10.04 shall be payable within ten Business Days
after demand therefor. The agreements in this Section shall survive the termination of the Aggregate Commitments and repayment of all other Obligations. 
  

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	 	10.05 	Expenses; Indemnity; Damage Waiver. 

 (a)
Costs and Expenses. The Borrowers 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 and consultants to 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 Administrative Agent, any Lender or the L/C Issuer (including the fees, charges and
disbursements of any counsel for and consultants to 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 bankruptcy, workout, restructuring or negotiations in respect
of such Loans or Letters of Credit. 
 (b) Indemnification by the Borrowers. The Borrowers 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), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrowers 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 Borrowers or any
of their Subsidiaries, or any Environmental Liability related in any way to the Borrowers or any of their 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 Borrowers or any other Loan Party, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or related expenses (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 any 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 such
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. 
  

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 (c) Reimbursement by Lenders. To the extent that the Borrowers for any reason fail to
indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by the Borrowers 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 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 Borrowers shall not assert, and hereby waive, 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 by it 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. 
 (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 and the L/C Issuer, the replacement of
any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations. 
  

	 	10.06 	Payments Set Aside. 

 To the extent that any
payment by or on behalf of the Borrowers is made to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of set-off, and such payment or the proceeds of such set-off 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 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 

  

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full force and effect as if such payment had not been made or such set-off had not occurred, and (b) each Lender severally agrees to pay to the
Administrative Agent upon demand its applicable share 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. 
  

	 	10.07 	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 neither the Borrowers nor any other Loan Party
may 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 Section 10.07(b), (ii) by way of participation in accordance with the provisions of Section 10.07(d), (iii) by way of pledge or assignment of a security interest
subject to the restrictions of Section 10.07(f), or (iv) to an SPC in accordance with the provisions of Section 10.07(h) (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(s) and the Loans (including for purposes of this Section 10.07(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)(A) except 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 or an Affiliate of a Lender or an Approved Fund with respect to a Lender, no minimum amounts
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 Borrowers otherwise
consent (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) 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 rights in respect of Swing Line Loans; 
 (iii) 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 Potlatch (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 for assignments to
a Person that is not a Lender with a Commitment in respect of the Committed Loans, 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 in respect of the Committed Loans. 
 (iv) 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; 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 such assignment shall be made to
the Borrowers or any of the Borrowers’ Affiliates or Subsidiaries; and 
 (vi) 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 

  

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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 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 10.05 with respect to facts and circumstances
occurring prior to the effective date of such assignment. Upon request, the Borrowers (at their 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 Borrowers, 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 Borrowers, 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 each of the Borrowers 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 Borrowers or the Administrative Agent, sell participations to any Person (other than a natural person or any Borrower or any of the Borrowers’ 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 Borrowers, 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 (A) 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 and (B) solely in the case of a bank that is a member of the Farm Credit System that (x) has purchased
a participation interest in the minimum amount of $3,000,000 in such Lender’s Commitment on or after the Closing Date and (y) is, by written notice (“Voting Participant Notification”), designated by such Lender to the
Administrative Borrower and the Administrative Agent as being entitled to be accorded the rights of a Voting Participant hereunder (any bank that is a member of the Farm Credit System 

  

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so designated being called a “Voting Participant”), that such Voting Participant shall be entitled to vote (and the voting rights of such
Lender shall be correspondingly reduced), on a Dollar for Dollar basis, as if such Voting Participant were a Lender on any matter requiring or allowing a Lender to provide or withhold its consent or to otherwise vote on any proposed action. To be
effective, each Voting Participant Notification shall, with respect to such Voting Participant, (1) state the full legal name of such Voting Participant, as well as all contact information required of a Lender as set forth in
Section 10.02(a)(ii) and (2) state the Dollar amount of participation interest purchased. Notwithstanding the above, the Administrative Agent acknowledges the participations noted on Schedule 2.01 as of the Closing Date and
no Voting Participation Notification shall be required with respect to such participations. 
 Subject to subsection (e) of this
Section, the Borrowers agree 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 10.09 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 participation to
such Participant is made with the Borrowers’ 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 Borrowers are notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the Borrowers, 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) Special Purpose Funding Vehicles. Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”)
may grant to a special purpose funding vehicle identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrowers (an “SPC”) the option to provide all or any part of any 

  

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Committed Loan that such Granting Lender would otherwise be obligated to make pursuant to this Agreement; provided that (i) nothing herein shall
constitute a commitment by any SPC to fund any Committed Loan, and (ii) if an SPC elects not to exercise such option or otherwise fails to make all or any part of such Committed Loan, the Granting Lender shall be obligated to make such
Committed Loan pursuant to the terms hereof or, if it fails to do so, to make such payment to the Administrative Agent as is required under Section 2.12(b)(ii). Each party hereto hereby agrees that (i) neither the grant to any SPC
nor the exercise by any SPC of such option shall increase the costs or expenses or otherwise increase or change the obligations of the Borrowers under this Agreement (including its obligations under Section 3.04), (ii) no SPC shall
be liable for any indemnity or similar payment obligation under this Agreement for which a Lender would be liable, and (iii) the Granting Lender shall for all purposes, including the approval of any amendment, waiver or other modification of
any provision of any Loan Document, remain the lender of record hereunder. The making of a Committed Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Committed Loan were made by such
Granting Lender. In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior debt of any SPC, it will not institute against, or join any other Person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding under the laws of the
United States or any State thereof. Notwithstanding anything to the contrary contained herein, any SPC may (i) with notice to, but without prior consent of the Borrowers and the Administrative Agent and with the payment of a processing fee
in the amount of $3,500 (which processing fee may be waived by the Administrative Agent at its sole discretion), assign all or any portion of its right to receive payment with respect to any Committed Loan to the Granting Lender and
(ii) disclose on a confidential basis any non-public information relating to its funding of Committed Loans to any rating agency, commercial paper dealer or provider of any surety or Guarantee or credit or liquidity enhancement to such SPC.

 (i) 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 Borrowers and the Lenders, resign as L/C Issuer and/or (ii) upon
30 days’ notice to the Borrowers, resign as Swing Line Lender. In the event of any such resignation as L/C Issuer or Swing Line Lender, the Borrowers 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 Borrowers 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 

  

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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. 
  

	 	10.08 	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, trustees, 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 (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrowers and their obligations, (g) with the consent of the Borrowers 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 Borrowers. 
 For purposes of this Section, “Information” means all information received from any Loan Party or any Subsidiary thereof relating to any Loan
Party or any Subsidiary thereof 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 any Loan Party or
any Subsidiary thereof, provided that, in the case of information received from a Loan Party or any such 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 Borrowers 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. 
  

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	 	10.09 	Set-off. 

 In addition to any rights and
remedies of the Lenders provided by law, upon the occurrence and during the continuance of any Event of Default, each Lender is authorized at any time and from time to time, without prior notice to the Borrowers or any other Loan Party, any such
notice being waived by the Borrowers (on its own behalf and on behalf of each Loan Party) to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held
by, and other indebtedness at any time owing by, such Lender to or for the credit or the account of the respective Loan Parties, and each Loan Party hereby grants a security interest in all such deposits and indebtedness to the Administrative Agent
for the benefit of the Administrative Agent and the Lenders, against any and all Obligations owing to such Lender hereunder or under any other Loan Document, now or hereafter existing, irrespective of whether or not the Administrative Agent or such
Lender shall have made demand under this Agreement or any other Loan Document and although such Obligations may be contingent or unmatured or denominated in a currency different from that of the applicable deposit or indebtedness. Each Lender agrees
promptly to notify the Borrowers and the Administrative Agent after any such set-off and application made by such Lender; provided, however, that the failure to give such notice shall not affect the validity of such set-off and
application. 
  

	 	10.10 	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 Borrowers. 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. 
  

	 	10.11 	Counterparts. 

 This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

	 	10.12 	Integration. 

 This Agreement, together with
the other Loan Documents, comprises the complete and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral, on such subject matter. In the event of any conflict between the
provisions of this Agreement and those of any other Loan Document, the provisions of this Agreement shall control; provided that the inclusion of supplemental rights or remedies in favor of the Administrative Agent or the Lenders in any other
Loan Document shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof. 
  

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	 	10.13 	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. 
  

	 	10.14 	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. 
  

	 	10.15 	Tax Forms. 

 (a) (i) Each Lender that is
not a “United States person” within the meaning of Section 7701(a)(30) of the Code (a “Foreign Lender”) shall deliver to the Administrative Agent, prior to receipt of any payment subject to withholding under the Code
(or upon accepting an assignment of an interest herein), two duly signed completed copies of either IRS Form W-8BEN or any successor thereto (relating to such Foreign Lender and entitling it to an exemption from, or reduction of, withholding tax on
all payments to be made to such Foreign Lender by the Borrowers pursuant to this Agreement) or IRS Form W-8ECI or any successor thereto (relating to all payments to be made to such Foreign Lender by the Borrowers pursuant to this Agreement) or such
other evidence satisfactory to the Borrowers and the Administrative Agent that such Foreign Lender is entitled to an exemption from, or reduction of, U.S. withholding tax, including any exemption pursuant to Section 881(c) of the Code.
Thereafter and from time to time, each such Foreign Lender shall (A) promptly submit to the Administrative Agent such additional duly completed and signed copies of one of such forms (or such successor forms as shall be adopted from time to
time by the relevant United States taxing authorities) as may then be available under then current United States laws and regulations to avoid, or such evidence as is satisfactory to the Borrowers and the Administrative Agent of any available
exemption from or reduction of, United States withholding taxes in respect of 

  

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all payments to be made to such Foreign Lender by the Borrowers pursuant to this Agreement, (B) promptly notify the Administrative Agent of any change
in circumstances which would modify or render invalid any claimed exemption or reduction, and (C) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such Lender, and as may be reasonably necessary
(including the re-designation of its Lending Office) to avoid any requirement of applicable Laws that the Borrowers make any deduction or withholding for taxes from amounts payable to such Foreign Lender. 
 (ii) Each Foreign Lender, to the extent it does not act or ceases to act for its own account with respect to any portion of any sums paid
or payable to such Lender under any of the Loan Documents (for example, in the case of a typical participation by such Lender), shall deliver to the Administrative Agent on the date when such Foreign Lender ceases to act for its own account with
respect to any portion of any such sums paid or payable, and at such other times as may be necessary in the determination of the Administrative Agent (in the reasonable exercise of its discretion), (A) two duly signed completed copies of the
forms or statements required to be provided by such Lender as set forth above, to establish the portion of any such sums paid or payable with respect to which such Lender acts for its own account that is not subject to U.S. withholding tax, and
(B) two duly signed completed copies of IRS Form W-8IMY (or any successor thereto), together with any information such Lender chooses to transmit with such form, and any other certificate or statement of exemption required under the Code, to
establish that such Lender is not acting for its own account with respect to a portion of any such sums payable to such Lender. 
 (iii) The Borrowers shall not be required to pay any additional amount to any Foreign Lender under Section 3.01 (A) with respect to any Taxes required to be deducted or withheld on the basis of the information, certificates
or statements of exemption such Lender transmits with an IRS Form W-8IMY pursuant to this Section 10.15(a) or (B) if such Lender shall have failed to satisfy the foregoing provisions of this Section 10.15(a);
provided that if such Lender shall have satisfied the requirement of this Section 10.15(a) on the date such Lender became a Lender or ceased to act for its own account with respect to any payment under any of the Loan Documents,
nothing in this Section 10.15(a) shall relieve the Borrowers of their obligation to pay any amounts pursuant to Section 3.01 in the event that, as a result of any change in any applicable law, treaty or governmental rule,
regulation or order, or any change in the interpretation, administration or application thereof, such Lender is no longer properly entitled to deliver forms, certificates or other evidence at a subsequent date establishing the fact that such Lender
or other Person for the account of which such Lender receives any sums payable under any of the Loan Documents is not subject to withholding or is subject to withholding at a reduced rate and provided further that if the L/C Issuer
shall issue, amend or extend any Letter of Credit from a branch or other office in any jurisdiction at the request of (or with the consent of ) the Borrowers and the L/C Issuer shall not be lawfully able or entitled to satisfy the requirements of
this Section 10.15(a) at the time of issuance, amendment or extension of any Letter of Credit by reason of the selection of such branch or office in such jurisdiction, nothing in this Section 10.15(a) shall relieve the
Borrowers of their obligation to pay any amounts pursuant to Section 3.01 owing to the L/C Issuer. 
  

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 (iv) The Administrative Agent may, without reduction, withhold any Taxes required to be
deducted and withheld from any payment under any of the Loan Documents with respect to which the Borrowers are not required to pay additional amounts under this Section 10.15(a). 
 (b) Upon the request of the Administrative Agent, each Lender that is a “United States person” within the meaning of Section 7701(a)(30)
of the Code shall deliver to the Administrative Agent two duly signed completed copies of IRS Form W-9. If such Lender fails to deliver such forms, then the Administrative Agent may withhold from any interest payment to such Lender an amount
equivalent to the applicable back-up withholding tax imposed by the Code, without reduction. 
 (c) If any Governmental Authority asserts
that the Administrative Agent did not properly withhold or backup withhold, as the case may be, any tax or other amount from payments made to or for the account of any Lender, such Lender shall indemnify the Administrative Agent therefor, including
all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the Administrative Agent under this Section, and costs and expenses (including Attorney Costs) of the Administrative Agent. The obligation of the Lenders
under this Section shall survive the termination of the Aggregate Commitments, repayment of all other Obligations hereunder and the resignation of the Administrative Agent. 
  

	 	10.16 	Replacement of Lenders. 

 If any Lender
requests compensation under Section 3.04, or if the Borrowers are 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 Borrowers may, at their 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 10.07), 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 Borrowers shall have paid to the Administrative Agent the assignment
fee specified in Section 10.07(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 Borrowers (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. 
  

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 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 Borrowers to require such assignment and delegation cease to apply. 
  

	 	10.17 	Governing Law. 

 (a) THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS
ARISING UNDER FEDERAL LAW. 
 (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN
THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWERS, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE BORROWERS, THE ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. THE BORROWERS, THE ADMINISTRATIVE AGENT AND EACH
LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE. 
  

	 	10.18 	Waiver of Right to Trial by Jury. 

 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. 
  

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	 	10.19 	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 Borrowers 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 each Loan Party, which information includes the name and address of the Borrowers and other information that will allow such
Lender or the Administrative Agent, as applicable, to identify each Loan Party in accordance with the Act. The Borrowers shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information
that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable “know your customer” anti-money laundering rules and regulations, including the Act. 
  

	 	10.20 	Judgment Currency. 

 If, for the purposes of
obtaining judgment in any court, it is necessary to convert a sum due hereunder or any other Loan Document in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the first currency with such other currency on the Business Day preceding that on which final judgment is given. The obligation of the Borrowers in respect of any such sum due from it to the Administrative Agent
or the Lenders hereunder or under the other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of
this Agreement (the “Agreement Currency”), be discharged only to the extent that on the Business Day following receipt by the Administrative Agent of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent
may in accordance with normal banking procedures purchase the Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so purchased is less than the sum originally due to the Administrative Agent from the Borrowers in
the Agreement Currency, the Borrowers agree, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent or the Person to whom such obligation was owing against such loss. If the amount of the Agreement
Currency so purchased is greater than the sum originally due to the Administrative Agent in such currency, the Administrative Agent agrees to return the amount of any excess to the Borrowers (or to any other Person who may be entitled thereto under
applicable law). 
  

	 	10.21 	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), each of the Borrowers 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 Arranger, are arm’s-length commercial transactions between the Borrowers and their
respective Affiliates, on the one hand, and the Administrative Agent and the Arranger, on the other hand, (B) each of the Borrowers has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate,
and (C) each of the Borrowers is capable of evaluating, and understands and accepts, the terms, risks and 

  

 126 

 
conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative Agent and the Arranger each is and
has 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 Borrowers or any of their respective Affiliates, or any
other Person and (B) neither the Administrative Agent nor the Arranger has any obligation to the Borrowers or any of their respective 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 Borrowers and their
respective Affiliates, and neither the Administrative Agent nor the Arranger has any obligation to disclose any of such interests to the Borrowers or any of their respective Affiliates. To the fullest extent permitted by law, each of the Borrowers
hereby waives and releases any claims that it may have against the Administrative Agent and the Arranger with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

 ARTICLE XI. 
 GUARANTY

  

	 	11.01 	The Guaranty. 

 Each of the Guarantors hereby
jointly and severally guarantees to each Lender, each Hedge Bank and each Cash Management Bank, and the Administrative Agent as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise) strictly in accordance with the terms thereof. The Guarantors hereby further agree that if any of the Obligations are not
paid in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice
whatsoever, and that in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension or renewal. 
 Notwithstanding any provision to the contrary
contained herein or in any other of the Loan Documents, Secured Swap Contracts or Secured Cash Management Agreements, the obligations of each Guarantor under this Agreement and the other Loan Documents shall be limited to an aggregate amount equal
to the largest amount that would not render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state law. 
  

	 	11.02 	Obligations Unconditional. 

 The obligations
of the Guarantors under Section 11.01 are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Loan Documents, Secured Swap Contracts, Secured Cash
Management Agreement, or any other agreement or instrument referred to therein, or any substitution, release, impairment or exchange of 

  

 127 

 
any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other circumstance
whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this Section 11.02 that the obligations of the Guarantors hereunder shall be absolute and
unconditional under any and all circumstances. Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Borrowers or any other Guarantor for amounts paid under this Article
XI until such time as the Obligations have been Fully Satisfied. Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by law, the occurrence of any one or more of the following shall not alter or
impair the liability of any Guarantor hereunder which shall remain absolute and unconditional as described above: 
 (a) at any time or from
time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Obligations shall be extended, or such performance or compliance shall be waived; 
 (b) any of the acts mentioned in any of the provisions of any of the Loan Documents, any Secured Swap Contract or any Secured Cash Management Agreement
or any other agreement or instrument referred to in the Loan Documents, such Secured Swap Contracts or such Secured Cash Management Agreements shall be done or omitted; 
 (c) the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplemented or amended in any respect, or any right under any of the Loan Documents, any Secured Swap
Contract or Secured Cash Management Agreement, or any other agreement or instrument referred to in the Loan Documents, such Secured Swap Contracts or such Secured Cash Management Agreements shall be waived or any other guarantee of any of the
Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with; 
 (d) any Lien
granted to, or in favor of, the Agent or any Lender or Lenders as security for any of the Obligations shall fail to attach or be perfected; or 
 (e) any of the Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any
creditor of any Guarantor). 
 With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment,
demand of payment, protest and all notices whatsoever, and any requirement that the Administrative Agent or any Lender exhaust any right, power or remedy or proceed against any Person under any of the Loan Documents, any Secured Swap Contract or
Secured Cash Management Agreement or any other agreement or instrument referred to in the Loan Documents, such Secured Swap Contracts or such Secured Cash Management Agreement or against any other Person under any other guarantee of, or security
for, any of the Obligations. 
  

 128 

	 	11.03 	Reinstatement. 

 The obligations of the
Guarantors under this Article XI shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder of
any of the Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify the Agent and each Lender on demand for all reasonable costs and expenses (including,
without limitation, fees and expenses of counsel) incurred by the Agent or such Lender in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment
constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law. 
  

	 	11.04 	Certain Additional Waivers. 

 Each Guarantor
agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation pursuant to Section 11.02 and through the exercise of rights of contribution pursuant to
Section 11.06. 
  

	 	11.05 	Remedies. 

 The Guarantors agree that, to the
fullest extent permitted by law, as between the Guarantors, on the one hand, and the Agent and the Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in Section 8.02 (and shall be
deemed to have become automatically due and payable in the circumstances provided in said Section 8.02) for purposes of Section 11.01 notwithstanding any stay, injunction or other prohibition preventing such declaration (or
preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether
or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of Section 11.01. The Guarantors acknowledge and agree that to the extent their obligations hereunder become secured, the
Lenders may exercise their remedies thereunder in accordance with the terms of the applicable security documents. 
  

	 	11.06 	Rights of Contribution. 

 The Guarantors
hereby agree as among themselves that, in connection with payments made hereunder, each Guarantor shall have a right of contribution from each other Guarantor in accordance with applicable Law. Such contribution rights shall be subordinate and
subject in right of payment to the Obligations until such time as the Obligations have been Fully Satisfied, and none of the Guarantors shall exercise any such contribution rights until the Obligations have been Fully Satisfied. 
  

	 	11.07 	Guarantee of Payment; Continuing Guarantee. 

 The guarantee in this Article XI is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations whenever arising. 
  

 129 

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

							
	BORROWERS:	 		 	 POTLATCH CORPORATION,
 a Delaware
corporation

				
		 		 	By:	 	/s/ Eric J. Cremers
		 		 	Name:	 	Eric J. Cremers
		 		 	Title:	 	Vice President, Finance and Chief Financial Officer
			
		 		 	 POTLATCH FOREST HOLDINGS, INC.,
 a
Delaware corporation

				
		 		 	By:	 	/s/ Eric J. Cremers
		 		 	Name:	 	Eric J. Cremers
		 		 	Title:	 	Vice President, Finance and Chief Financial Officer
			
		 		 	 POTLATCH LAND & LUMBER, LLC,
 a Delaware limited liability company

				
		 		 	By:	 	/s/ Eric J. Cremers
		 		 	Name:	 	Eric J. Cremers
		 		 	Title:	 	Vice President, Finance and Chief Financial Officer
			
		 		 	 CLEARWATER PAPER CORPORATION
 (formerly known as Potlatch Forest Products Corporation),
 a Delaware corporation

				
		 		 	By:	 	/s/ Linda K. Massman
		 		 	Name:	 	Linda K. Massman
		 		 	Title:	 	Vice President

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT 

							
	GUARANTORS:	 		 	 PFHI IDAHO INVESTMENT LLC,
 a Delaware
limited liability company

				
		 		 	By:	 	/s/ Eric J. Cremers
		 		 	Name:	 	Eric J. Cremers
		 		 	Title:	 	Vice President, Finance and Chief Financial Officer

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT 

							
	 ADMINISTRATIVE AGENT
 AND
LENDERS:
	 		 	 BANK OF AMERICA, N.A.,
 as
Administrative Agent

				
		 		 	By:	 	/s/ Anthea Del Bianco
		 		 	Name:	 	Anthea Del Bianco
		 		 	Title:	 	Vice President

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT 

							
		 		 	 BANK OF AMERICA, N.A.,
 as a Lender,
an L/C Issuer and Swing Line Lender

				
		 		 	By:	 	/s/ Michael Balok
		 		 	Name:	 	Michael Balok
		 		 	Title:	 	Senior Vice President

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT 

			
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	/s/ Janice T. Thede
	Name:	 	Janice T. Thede
	Title:	 	Senior Vice President

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT 

			
	WELLS FARGO BANK, N.A.
		
	By:	 	/s/ Deborah S. Watson
	Name:	 	Deborah S. Watson
	Title:	 	Senior Vice President

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT 

			
	COÖPERATIEVE CENTRALE RAIFFEISEN - BOERENLEENBANK B.A. “RABOBANK INTERNATIONAL” NEW YOUR BRANCH
		
	By:	 	/s/ Marina Kremer
	Name:	 	Marina Kremer
	Title:	 	Executive Director
		
	By:	 	/s/ Rebecca O. Morrow
	Name:	 	Rebecca O. Morrow
	Title:	 	Executive Director

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT 

							
		 		 	 NORTHWEST FARM CREDIT SERVICES,
 PCA

				
		 		 	By:	 	/s/ Jim D. Allen
		 		 	Name:	 	Jim D. Allen
		 		 	Title:	 	Senior Vice President

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT 

							
		 		 	 GREENSTONE FARM CREDIT SERVICES,
 ACA/FLCA

				
		 		 	By:	 	/s/ Jeff Pavlik
		 		 	Name:	 	Jeff Pavlik
		 		 	Title:	 	Vice President

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT 

							
		 		 	 STERLING SAVINGS BANK

				
	`	 		 	By:	 	/s/ Sara M. Young
		 		 	Name:	 	Sara M. Young
		 		 	Title:	 	Vice President

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT 

							
		 		 	 UNION BANK OF CALIFORNIA, N.A.

				
	`	 		 	By:	 	/s/ Kevin Sullivan
		 		 	Name:	 	Kevin Sullivan
		 		 	Title:	 	Senior Vice President

  

 POTLATCH CORPORATION 
 CREDIT AGREEMENT

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