Document:

EXHIBIT 10.4

 

INSTALLMENT
NOTE

 

	
  $258,000,000

  	
  October 29, 2004

  

 

FOR VALUE RECEIVED, BOISE LAND & TIMBER, L.L.C., a Delaware
limited liability company (“Maker”), promises to pay to the order of BOISE SOUTHERN COMPANY (“Initial Holder”),
which along with any other subsequent holder of this promissory note, is
sometimes referred to as the “Holder”, the principal sum of Two Hundred
Fifty-Eight Million and no/100ths Dollars ($258,000,000) (“Principal Sum”)
together with interest at the rate set out in paragraph 1 below, in
accordance with the following:

 

1.                                       Interest.  Subject to the terms of paragraph 17
below, the unpaid Principal Sum shall bear interest from the date hereof until
paid in full at a fixed rate per annum equal to 4.982%.  Such interest shall be payable on each Payment
Date (defined below).  All interest payable under the terms of this Note
shall be calculated on the basis of twelve (12) 30-day months in a 360-day year.

 

2.                                       Payments and Maturity.  (a) Interest on the unpaid Principal Sum
shall be due and payable semi-annually, on the 29th day of each April
and October (each a “Payment Date”), commencing on April 29, 2005, and
continuing on each Payment Date thereafter through and until the Maturity Date.

 

(b)                                 The
entire unpaid Principal Sum, together with all accrued and unpaid interest,
shall mature and be due and payable in full on January 29, 2020 (“Maturity
Date”).

 

(c)                                  If
any payment under this Installment Note is due on a day which is not a Business
Day (defined below), such payment shall be due and payable on the next
succeeding Business Day.

 

3.                                       Application and Place of Payments.  All payments made on account of this
Installment Note shall be applied, first, to the payment of any unpaid and
accrued enforcement and collection costs incurred by Holder, if any, second, to
the payment of accrued and unpaid interest, and the remainder, if any, shall be
applied to the unpaid Principal Sum.  All
payments on account of this Installment Note shall be paid in lawful money of
the United States of America in immediately available funds during regular
business hours of Holder at the address set out in paragraph 9 below, or at
such other times and places as Holder may at any time designate in writing by
notice to Maker in accordance with the provisions of Paragraph 9 below.

 

4.                                       No Prepayment.  Maker may not voluntarily prepay the
Principal Sum or any part of the Principal Sum at any time.

 

5.                                       Purchase Agreement and Related Transactions.  Maker, as purchaser, and Initial Holder, as
seller, are parties to an Asset Purchase Agreement dated as of July 26, 2004 (as

 

 

such agreement may be
subsequently amended, the “Purchase Agreement”), pursuant to which the
sole member of Maker has purchased from Initial Holder certain timberland assets
(the “Assets”), which are more particularly described in such Purchase
Agreement, and Maker is issuing this Installment Note in payment of the
purchase price for such Assets.  Wachovia
Corporation (“Guarantor”) has guaranteed the payment of certain obligations
by Maker under this Installment Note pursuant to a Guaranty dated as of the
date of this Installment Note (the “Guaranty”) executed by Guarantor, as
guarantor, for the benefit of Initial Holder, as beneficiary.

 

6.                                       Events of Default.  The occurrence of any one or more of the following
events shall constitute an event of default (individually, an “Event of
Default” and collectively, the “Events of Default”) under the terms
of this Installment Note:

 

(a)                                  The
failure of Maker to pay to Holder within three (3) Business days of the applicable
due date any and all amounts payable by Maker to Holder under the terms of this
Installment Note.

 

(b)                                 If
by the order of a court of competent jurisdiction, a trustee, receiver or
liquidator of Maker shall be appointed and such order shall not be discharged
or dismissed within 60 days after such appointment.

 

(c)                                  Maker
(i) applies for, or consents in writing to, the appointment of a receiver,
trustee or liquidator of all or substantially all of Maker’s assets; (ii) files
a voluntary petition in bankruptcy; (iii) admits in writing Maker’s inability
to pay Maker’s debts as they become due or makes a general assignment for the
benefit of creditors; (iv) files a petition or an answer seeking a
reorganization (other than a reorganization not involving the liabilities of
Maker) or an arrangement with creditors or takes advantage of any bankruptcy or
insolvency law; or (v) files an answer admitting the material allegations of a
petition filed against Maker in any bankruptcy, reorganization or insolvency proceeding.

 

(d)                                 An
order, judgment or decree is entered by any court of competent jurisdiction on
the application of a creditor adjudicating Maker as bankrupt or insolvent, or
appointing a receiver, trustee or liquidator of Maker, or for all or
substantially all of Maker’s assets, and such order, judgment or decree
continues unstayed and in effect for a period of 60 days from the date entered.

 

(e)                                  If
Maker shall dissolve, merge, consolidate, liquidate, reorganize, or terminate
its existence without the prior written consent of Holder.

 

(f)                                    The
insolvency, receivership, conservatorship, reorganization, winding-up,
liquidation or similar occurrence in respect of the Guarantor under any
applicable law.

 

7.                                       Remedies.  Except as provided in the final sentence of this
Paragraph 7, during an Event of Default, at the option of Holder, exercisable
by notice in writing to Maker, all amounts payable by Maker to Holder under the
terms of this Installment Note shall immediately become due and payable by
Maker to Holder, and Holder shall have all of the rights, powers, and remedies
available under the terms of this Installment Note and all applicable
laws.  Maker and all endorsers,
guarantors, and other parties who may now or in the future be primarily or

 

2

 

secondarily liable for the
payment of the indebtedness evidenced by this Installment Note hereby severally
waive presentment, protest and demand, notice of protest, notice of demand and
of dishonor and non-payment of this Installment Note and expressly agree that
this Installment Note or any payment under this Installment Note may be
extended from time to time without in any way affective the liability of Maker,
guarantors and endorsers.  Notwithstanding
anything in this Installment Note to the contrary, so long as the Guaranty is
in effect and Guarantor has not failed to honor, within the time permitted, any
timely and proper demand for payment under the terms of the Guaranty, the
Holder shall not have the right to accelerate the maturity of the principal
under this Installment Note or exercise any other rights and remedies under this
Installment Note at law or in equity, other than (i) to make a demand for
payment from the Guarantor under the terms of the Guaranty for accrued and
unpaid interest not paid by Maker within sixty (60) days of the applicable due
date, or (ii) to make a demand for payment from the Guarantor under the
terms of the Guaranty for the full outstanding and unpaid principal balance
under this Installment Note within 120 days after the Maturity Date.

 

8.                                       Expenses.  Maker promises to pay to Holder on demand by
Holder all costs and expenses incurred by Holder in connection with the
collection and enforcement of this Installment Note, including, without limitation,
all reasonable attorneys’ fees actually incurred and expenses and all court
costs.

 

9.                                       Notices.  All notices, requests and other
communications to any party under this Installment Note shall be in writing
(including telecopier or similar writing) and shall be given to such party at
its address or telecopier number set forth below or such other address or
telecopier number as such party may hereafter specify for the purpose by notice
to each other party.  Each such notice,
request or other communication shall be effective (i) if given by telecopier,
when such telecopy is transmitted to the telecopier number specified in this
Paragraph 9 and the confirmation is received, (ii) if given by mail, 72 hours
after such communication is deposited in the mails with first class postage
prepaid, addressed as set out below or (iii) if given by any other means, when
delivered at the address specified in this Section:

 

	
  Maker:

  	
  BOISE LAND & TIMBER, L.L.C.

  
	
   

  	
  1111 W. Jefferson Street

  P.O. Box 50

  Boise, Idaho 83728

  Attn: Thomas E. Carlile

  Telephone: (208) 384-6161

  Facsimile: (208) 384-4920

  
	
   

  	
   

  
	
  with a copy to:

  	
  WACHOVIA
  CORPORATION

  
	
   

  	
  301 S. College Street

  Charlotte, NC 28288

  Attn: Thomas J. Wurtz, Treasurer

  Telephone: (704) 374-2250

  Facsimile: (704) 374-2040

  

 

3

 

	
  and a copy to:

  	
  WACHOVIA
  CORPORATION

  
	
   

  	
  301 S. College Street

  Charlotte, NC 28288

  Attn: Parrish McCormack, Esq.

  Telephone: (704) 374-6509

  Facsimile: (704) 388-0353

  
	
   

  	
   

  
	
  and a copy to:

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION

  
	
   

  	
  100 North Main Street, NC6001

  Winston-Salem, NC 27150

  Attn: Steve W. Whitcomb, Director

  Telephone: (336) 732-2650

  Facsimile: (704) 715-0065

  
	
   

  	
   

  
	
  Holder:

  	
  BOISE SOUTHERN COMPANY

  
	
   

  	
  1111 W. Jefferson Street

  Boise, ID 83702

  Attn: Wayne Rancourt,

  Vice-President and Treasurer

  Telephone: (208) 384-6073

  Facsimile: (208) 384-4312

  
	
   

  	
   

  
	
  with a copy to:

  	
  BOISE
  CASCADE CORPORATION

  
	
   

  	
  1111 W. Jefferson Street

  Boise, ID 83702

  Attn: John Holleran

  Senior VP & General Counsel

  Telephone: (208) 384-7704

  Facsimile: (208) 384-4312

  

 

except in cases where it is expressly herein provided that such notice,
request or demand is not effective until received by the party to whom it is
addressed.

 

10.                                 Miscellaneous.  Each right, power, and remedy of Holder as
provided for in this Installment Note or now or hereafter existing under any
applicable law or otherwise shall be cumulative and concurrent and shall be in
addition to every other right, power, or remedy provided for in this
Installment Note or now or hereafter existing under applicable law, and the
exercise or beginning of the exercise by Holder of any one or more of such
rights, powers, or remedies shall not preclude the simultaneous or later
exercise by Holder of any or all such other rights, powers, or remedies.  No failure or delay by Holder to insist upon
the strict performance of any term, condition, covenant, or agreement of this
Installment Note, or to exercise any right, power, or remedy consequent upon an
Event of Default, shall constitute a waiver of any such term, condition,
covenant, or agreement or of any such breach, or preclude Holder from
exercising any such right, power, or remedy at a later time or times.  By accepting payment after the due date of
any amount payable under the terms of this Installment Note, Holder shall not
be deemed to waive the right either to require prompt payment when due of all
other amounts payable under the terms of this Installment Note or to declare an
Event of Default for the failure to effect such prompt payment of any such
other amount.  No course of dealing or
conduct shall be effective to amend, modify, waive, release, or change any
provisions of this Installment Note.

 

4

 

As used in this Installment
Note, the singular number shall include the plural, the plural the singular and
the use of the masculine, feminine or neuter gender shall include all genders,
as the context may require.  As used in this
Installment Note, the term “Business Day” means any day except a Saturday,
Sunday or other day on which commercial banks in North Carolina or New York are
authorized by law to close.

 

11.                                 Partial Invalidity.  In the event any provision of this
Installment Note (or any part of any provision) is held by a court of competent
jurisdiction to be invalid, illegal, or unenforceable in any respect, such
invalidity, illegality, or unenforceability shall not affect any other
provision (or remaining part of the affected provision) of this Installment
Note; but this Installment Note shall be construed as if such invalid, illegal,
or unenforceable provision had not been contained in this Installment Note, but
only to the extent it is invalid, illegal, or unenforceable.

 

12.                                 Captions.  The captions set forth in this Installment
Note are for convenience only and shall not be deemed to define, limit, or
describe the scope or intent of this Installment Note.

 

13.                                 GOVERNING LAW.  WITHOUT IN ANY WAY LIMITING ANY ADDITIONAL
RIGHTS AND REMEDIES WHICH HOLDER MAY HAVE UNDER THE LAWS OF ANY OTHER
JURISDICTION, THIS INSTALLMENT NOTE IS TO BE GOVERNED BY, CONSTRUED UNDER, AND
ENFORCED ACCORDING TO, THE LAWS OF NEW YORK WITH THE SAME FORCE AND EFFECT AS
IF THIS INSTALLMENT NOTE HAD BEEN EXECUTED, DELIVERED, ADMINISTERED AND REPAID
SOLELY WITHIN NEW YORK.

 

14.                                 CONSENT TO JURISDICTION.  MAKER IRREVOCABLY SUBMITS TO THE JURISDICTION
OF ANY STATE OR FEDERAL COURT SITTING IN THE CITY OF NEW YORK OVER ANY SUIT,
ACTION, OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INSTALLMENT NOTE.  MAKER IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION THAT MAKER MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION, OR PROCEEDING BROUGHT IN ANY SUCH
COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION, OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  FINAL JUDGMENT IN ANY SUCH SUIT, ACTION, OR
PROCEEDING BROUGHT IN ANY SUCH COURT SHALL BE CONCLUSIVE AND BINDING UPON MAKER
AND MAY BE ENFORCED IN ANY COURT IN WHICH MAKER IS SUBJECT TO JURISDICTION BY A
SUIT UPON SUCH JUDGMENT PROVIDED THAT SERVICE OF PROCESS IS EFFECTED UPON MAKER
AS PROVIDED IN THIS INSTALLMENT NOTE OR AS OTHERWISE PERMITTED BY APPLICABLE
LAW.

 

15.                                 Service of Process.  Maker consents to process being served in any
suit, action, or proceeding instituted in connection with this Installment Note
by the mailing of a copy of such pleadings by certified mail, postage prepaid,
return receipt requested, to Maker. 
Maker irrevocably agrees that such service shall be deemed to be service
of process upon Maker in any such suit, action, or proceeding.  Nothing in this Section shall affect the
right of Holder to serve

 

5

 

process in any manner otherwise
permitted by law and nothing in this Section will limit the right of Holder
otherwise to bring proceedings against Maker in the courts of any jurisdiction
or jurisdictions.

 

16.                                 WAIVER OF TRIAL BY JURY.  TO THE FULLEST EXTENT PERMITTED BY LAW, MAKER
AND HOLDER EACH HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH
MAKER AND HOLDER MAY BE PARTIES, ARISING OUT OF OR IN ANY WAY PERTAINING TO THIS
INSTALLMENT NOTE.  IT IS AGREED AND
UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS
AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST
PARTIES WHO ARE NOT PARTIES TO THIS INSTALLMENT NOTE. THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY MAKER AND HOLDER, AND MAKER AND HOLDER EACH
HEREBY REPRESENT AND WARRANT THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE
BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY
WAY MODIFY OR NULLIFY ITS EFFECT.  MAKER
FURTHER REPRESENTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS
INSTALLMENT NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL,
SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS
THIS WAIVER WITH COUNSEL.

 

17.                                 Interest Rate Not to Exceed Applicable Laws.  The interest rate or rates required by this
Installment Note shall not exceed the maximum rate permissible under applicable
laws.

 

18.                                 Maker’s Obligation.  Maker’s obligation to pay all amounts due
under this Installment Note shall be absolute and shall not be subject to any
set-off, deduction, claim, counterclaim or other right which Maker may have
against Initial Holder pursuant to the Purchase Agreement or otherwise.

 

19.                                 No Recourse to Property, Etc.  Notwithstanding any provision in this
Installment Note to the contrary, Holder shall have no right, remedy or
recourse in respect of this Installment Note against either the Assets or any
Maker Party.  “Maker Party” means any
affiliate of Maker or any of Maker’s or Maker’s affiliates’ respective
officers, directors, agents, other representatives, stockholders, equity
holders or members (whether direct or indirect), except to the extent any such
person or entity is a successor to or assign of Maker and subject to the
obligations of this Installment Note pursuant to paragraph 20 below.  Any judgment, decree or other remedy shall
not be subject to execution on, nor lien on, the Assets, the interest of Maker
(or of any successor or assign of Maker) in the Assets or any assets of any
Maker Party, nor shall Holder seek any other relief with respect to the Assets (or
the interest of Maker or successor or assign of Maker in the Assets) or any
other Maker Party, it being specifically understood and agreed that no Maker
Party shall have any personal liability for the payment of any obligations of
Maker under this Installment Note. 
Notwithstanding anything to the contrary contained herein, Holder agrees
that neither it nor any person acting on its behalf may assert any claim or
cause of action for payment of any of the obligations of Maker under this
Installment

 

6

 

Note against the Assets, the
interest of Maker (or any successor or assign of Maker) in the Assets or any
Maker Party.

 

20.                                 Assignment.  This Installment Note may, without
restriction, be assigned, pledged, hypothecated or otherwise transferred by Holder
by endorsement or assignment and delivery. 
Holder shall promptly notify Maker of the name and address of any
assignee or other transferee.  This
Installment Note shall be binding upon Maker and its successors and assigns,
and the term “Maker” as used in this Agreement shall include such successors
and assigns.  Maker shall have no right
to assign its obligations under this Installment Note, and any attempted
assignment by Maker of such obligations shall be void ab initio.

 

7

 

IN WITNESS
WHEREOF, Maker executed this Installment Note on the date set forth above.

 

	
   

  	
  BOISE LAND & TIMBER, L.L.C., a Delaware

  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas E. Carlile

  	
   

  
	
   

  	
   

  	
  Thomas
  E. Carlile,

  
	
   

  	
   

  	
  Authorized
  Regular Manager

  

 

8EXHIBIT 10.5

 

INSTALLMENT
NOTE

 

	
  $817,500,000

  	
  October 29, 2004

  

 

FOR VALUE RECEIVED, BOISE LAND & TIMBER II, L.L.C., a
Delaware limited liability company (“Maker”), promises to pay to the
order of BOISE CASCADE CORPOATION (“Initial
Holder”), which along with any other subsequent holder of this promissory
note, is sometimes referred to as the “Holder”, the principal sum of Eight
Hundred Seventeen Million Five Hundred Thousand and no/100ths Dollars ($817,500,000)
(“Principal Sum”) together with interest at the rate set out in
paragraph 1 below, in accordance with the following:

 

1.                                       Interest.  Subject to the terms of paragraph 17
below, the unpaid Principal Sum shall bear interest from the date hereof until
paid in full at a fixed rate per annum equal to 5.112%.  Such interest shall be payable on each Payment
Date (defined below).  All interest payable under the terms of this Note
shall be calculated on the basis of twelve (12) 30-day months in a 360-day year.

 

2.                                       Payments and Maturity.  (a) Interest on the unpaid Principal Sum
shall be due and payable semi-annually, on the 29th day of each April
and October (each a “Payment Date”), commencing on April 29, 2005, and
continuing on each Payment Date thereafter through and until the Maturity Date.

 

(b)                                 The
entire unpaid Principal Sum, together with all accrued and unpaid interest,
shall mature and be due and payable in full on January 29, 2020 (“Maturity
Date”).

 

(c)                                  If
any payment under this Installment Note is due on a day which is not a Business
Day (defined below), such payment shall be due and payable on the next
succeeding Business Day.

 

3.                                       Application and Place of Payments.  All payments made on account of this
Installment Note shall be applied, first, to the payment of any unpaid and
accrued enforcement and collection costs incurred by Holder, if any, second, to
the payment of accrued and unpaid interest, and the remainder, if any, shall be
applied to the unpaid Principal Sum.  All
payments on account of this Installment Note shall be paid in lawful money of
the United States of America in immediately available funds during regular
business hours of Holder at the address set out in paragraph 9 below, or at
such other times and places as Holder may at any time designate in writing by
notice to Maker in accordance with the provisions of Paragraph 9 below.

 

4.                                       No Prepayment.  Maker may not voluntarily prepay the
Principal Sum or any part of the Principal Sum at any time.

 

5.                                       Purchase Agreement and Related Transactions.  Maker, as purchaser, and Initial Holder, as
seller, are parties to an Asset Purchase Agreement dated as of July 26, 2004 (as

 

 

such agreement may be
subsequently amended, the “Purchase Agreement”), pursuant to which the
sole member of Maker has purchased from Initial Holder certain timberland assets
(the “Assets”), which are more particularly described in such Purchase
Agreement, and Maker is issuing this Installment Note in payment of the
purchase price for such Assets.  Lehman
Brothers Holdings, Inc. (“Guarantor”) has guaranteed the payment of certain
obligations by Maker under this Installment Note pursuant to a Guaranty dated
as of the date of this Installment Note (the “Guaranty”) executed by Guarantor,
as guarantor, for the benefit of Initial Holder, as beneficiary.

 

6.                                       Events of Default.  The occurrence of any one or more of the
following events shall constitute an event of default (individually, an “Event
of Default” and collectively, the “Events of Default”) under the
terms of this Installment Note:

 

(a)                                  The
failure of Maker to pay to Holder within three (3) Business days of the
applicable due date any and all amounts payable by Maker to Holder under the
terms of this Installment Note.

 

(b)                                 If
by the order of a court of competent jurisdiction, a trustee, receiver or
liquidator of Maker shall be appointed and such order shall not be discharged
or dismissed within 60 days after such appointment.

 

(c)                                  Maker
(i) applies for, or consents in writing to, the appointment of a receiver,
trustee or liquidator of all or substantially all of Maker’s assets; (ii) files
a voluntary petition in bankruptcy; (iii) admits in writing Maker’s inability
to pay Maker’s debts as they become due or makes a general assignment for the
benefit of creditors; (iv) files a petition or an answer seeking a
reorganization (other than a reorganization not involving the liabilities of
Maker) or an arrangement with creditors or takes advantage of any bankruptcy or
insolvency law; or (v) files an answer admitting the material allegations of a
petition filed against Maker in any bankruptcy, reorganization or insolvency
proceeding.

 

(d)                                 An
order, judgment or decree is entered by any court of competent jurisdiction on
the application of a creditor adjudicating Maker as bankrupt or insolvent, or
appointing a receiver, trustee or liquidator of Maker, or for all or
substantially all of Maker’s assets, and such order, judgment or decree
continues unstayed and in effect for a period of 60 days from the date entered.

 

(e)                                  If
Maker shall dissolve, merge, consolidate, liquidate, reorganize, or terminate
its existence without the prior written consent of Holder.

 

(f)                                    The
insolvency, receivership, conservatorship, reorganization, winding-up,
liquidation or similar occurrence in respect of the Guarantor under any
applicable law.

 

7.                                       Remedies.  Except as provided in the final sentence of
this Paragraph 7, during an Event of Default, at the option of Holder,
exercisable by notice in writing to Maker, all amounts payable by Maker to
Holder under the terms of this Installment Note shall immediately become due
and payable by Maker to Holder, and Holder shall have all of the rights,
powers, and remedies available under the terms of this Installment Note and all
applicable laws.  Maker and all
endorsers, guarantors, and other parties who may now or in the future be
primarily or

 

2

 

secondarily liable for the
payment of the indebtedness evidenced by this Installment Note hereby severally
waive presentment, protest and demand, notice of protest, notice of demand and
of dishonor and non-payment of this Installment Note and expressly agree that
this Installment Note or any payment under this Installment Note may be
extended from time to time without in any way affective the liability of Maker,
guarantors and endorsers.  Notwithstanding
anything in this Installment Note to the contrary, so long as the Guaranty is
in effect and Guarantor has not failed to honor, within the time permitted, any
timely and proper demand for payment under the terms of the Guaranty, the Holder
shall not have the right to accelerate the maturity of the principal under this
Installment Note or exercise any other rights and remedies under this
Installment Note at law or in equity, other than (i) to make a demand for
payment from the Guarantor under the terms of the Guaranty for accrued and
unpaid interest not paid by Maker within sixty (60) days of the applicable due
date, or (ii) to make a demand for payment from the Guarantor under the
terms of the Guaranty for the full outstanding and unpaid principal balance
under this Installment Note within 120 days after the Maturity Date.

 

8.                                       Expenses.  Maker promises to pay to Holder on demand by
Holder all costs and expenses incurred by Holder in connection with the
collection and enforcement of this Installment Note, including, without
limitation, all reasonable attorneys’ fees actually incurred and expenses and
all court costs.

 

9.                                       Notices.  All notices, requests and other
communications to any party under this Installment Note shall be in writing
(including telecopier or similar writing) and shall be given to such party at
its address or telecopier number set forth below or such other address or
telecopier number as such party may hereafter specify for the purpose by notice
to each other party.  Each such notice,
request or other communication shall be effective (i) if given by telecopier,
when such telecopy is transmitted to the telecopier number specified in this
Paragraph 9 and the confirmation is received, (ii) if given by mail, 72 hours
after such communication is deposited in the mails with first class postage
prepaid, addressed as set out below or (iii) if given by any other means, when
delivered at the address specified in this Section:

 

	
  Maker:

  	
  BOISE LAND & TIMBER II, L.L.C.

  
	
   

  	
  1111 W. Jefferson Street

  
	
   

  	
  P.O. Box 50

  
	
   

  	
  Boise, Idaho 83728

  
	
   

  	
  Attn: Thomas E. Carlile

  
	
   

  	
  Telephone: (208) 384-6161

  
	
   

  	
  Facsimile: (208) 384-4920

  
	
   

  	
   

  
	
  with a copy to:

  	
  LEHMAN
  BROTHERS HOLDINGS INC.

  
	
   

  	
  745 Seventh Avenue, 14th
  Floor

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Attn: Global Treasurer

  
	
   

  	
  Telephone: (212) 526-7000

  
	
   

  	
  Facsimile: (646) 758-3204

  

 

3

 

	
  and a copy to:

  	
  LEHMAN
  BROTHERS HOLDINGS INC.

  
	
   

  	
  745 Seventh Avenue, 5/F

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Attn: US Product Development

  
	
   

  	
  Telephone: (212) 526-2378

  
	
   

  	
  Facsimile: (212) 520-0076

  
	
   

  	
   

  
	
  Holder:

  	
  BOISE CASCADE CORPORATION

  
	
   

  	
  1111 W. Jefferson Street

  
	
   

  	
  Boise, ID 83702

  
	
   

  	
  Attn: Wayne Rancourt

  
	
   

  	
   

  	
  Vice-President and Treasurer

  
	
   

  	
  Telephone: (208) 384-6073

  
	
   

  	
  Facsimile: (208) 384-4312

  
	
   

  	
   

  
	
  with a copy to:

  	
  BOISE
  CASCADE CORPORATION

  
	
   

  	
  1111 W. Jefferson Street

  
	
   

  	
  Boise, ID 83702

  
	
   

  	
  Attn: John Holleran

  
	
   

  	
   

  	
  Senior VP & General
  Counsel

  
	
   

  	
  Telephone: (208) 384-7704

  
	
   

  	
  Facsimile: (208) 384-4312

  

 

except in cases where it is expressly herein provided that such notice,
request or demand is not effective until received by the party to whom it is
addressed.

 

10.                                 Miscellaneous.  Each right, power, and remedy of Holder as
provided for in this Installment Note or now or hereafter existing under any
applicable law or otherwise shall be cumulative and concurrent and shall be in
addition to every other right, power, or remedy provided for in this
Installment Note or now or hereafter existing under applicable law, and the
exercise or beginning of the exercise by Holder of any one or more of such rights,
powers, or remedies shall not preclude the simultaneous or later exercise by
Holder of any or all such other rights, powers, or remedies.  No failure or delay by Holder to insist upon
the strict performance of any term, condition, covenant, or agreement of this
Installment Note, or to exercise any right, power, or remedy consequent upon an
Event of Default, shall constitute a waiver of any such term, condition,
covenant, or agreement or of any such breach, or preclude Holder from
exercising any such right, power, or remedy at a later time or times.  By accepting payment after the due date of
any amount payable under the terms of this Installment Note, Holder shall not
be deemed to waive the right either to require prompt payment when due of all
other amounts payable under the terms of this Installment Note or to declare an
Event of Default for the failure to effect such prompt payment of any such
other amount.  No course of dealing or
conduct shall be effective to amend, modify, waive, release, or change any
provisions of this Installment Note. As used in this Installment Note, the
singular number shall include the plural, the plural the singular and the use
of the masculine, feminine or neuter gender shall include all genders, as the
context may require.  As used in this
Installment Note, the term “Business Day” means any day except a Saturday,
Sunday or other day on which commercial banks in North Carolina or New York are
authorized by law to close.

 

4

 

11.                                 Partial Invalidity.  In the event any provision of this
Installment Note (or any part of any provision) is held by a court of competent
jurisdiction to be invalid, illegal, or unenforceable in any respect, such
invalidity, illegality, or unenforceability shall not affect any other
provision (or remaining part of the affected provision) of this Installment
Note; but this Installment Note shall be construed as if such invalid, illegal,
or unenforceable provision had not been contained in this Installment Note, but
only to the extent it is invalid, illegal, or unenforceable.

 

12.                                 Captions.  The captions set forth in this Installment
Note are for convenience only and shall not be deemed to define, limit, or
describe the scope or intent of this Installment Note.

 

13.                                 GOVERNING LAW.  WITHOUT IN ANY WAY LIMITING ANY ADDITIONAL
RIGHTS AND REMEDIES WHICH HOLDER MAY HAVE UNDER THE LAWS OF ANY OTHER
JURISDICTION, THIS INSTALLMENT NOTE IS TO BE GOVERNED BY, CONSTRUED UNDER, AND
ENFORCED ACCORDING TO, THE LAWS OF NEW YORK WITH THE SAME FORCE AND EFFECT AS
IF THIS INSTALLMENT NOTE HAD BEEN EXECUTED, DELIVERED, ADMINISTERED AND REPAID
SOLELY WITHIN NEW YORK.

 

14.                                 CONSENT TO JURISDICTION.  MAKER IRREVOCABLY SUBMITS TO THE JURISDICTION
OF ANY STATE OR FEDERAL COURT SITTING IN THE CITY OF NEW YORK OVER ANY SUIT,
ACTION, OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INSTALLMENT NOTE.  MAKER IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION THAT MAKER MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION, OR PROCEEDING BROUGHT IN ANY SUCH
COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION, OR PROCEEDING BROUGHT IN ANY
SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  FINAL JUDGMENT IN ANY SUCH SUIT, ACTION, OR
PROCEEDING BROUGHT IN ANY SUCH COURT SHALL BE CONCLUSIVE AND BINDING UPON MAKER
AND MAY BE ENFORCED IN ANY COURT IN WHICH MAKER IS SUBJECT TO JURISDICTION BY A
SUIT UPON SUCH JUDGMENT PROVIDED THAT SERVICE OF PROCESS IS EFFECTED UPON MAKER
AS PROVIDED IN THIS INSTALLMENT NOTE OR AS OTHERWISE PERMITTED BY APPLICABLE
LAW.

 

15.                                 Service of Process.  Maker consents to process being served in any
suit, action, or proceeding instituted in connection with this Installment Note
by the mailing of a copy of such pleadings by certified mail, postage prepaid,
return receipt requested, to Maker. 
Maker irrevocably agrees that such service shall be deemed to be service
of process upon Maker in any such suit, action, or proceeding.  Nothing in this Section shall affect the
right of Holder to serve process in any manner otherwise permitted by law and
nothing in this Section will limit the right of Holder otherwise to bring
proceedings against Maker in the courts of any jurisdiction or jurisdictions.

 

16.                                 WAIVER OF TRIAL BY JURY.  TO THE FULLEST EXTENT PERMITTED BY LAW, MAKER
AND HOLDER EACH HEREBY WAIVE TRIAL BY

 

5

 

JURY IN ANY ACTION OR PROCEEDING TO
WHICH MAKER AND HOLDER MAY BE PARTIES, ARISING OUT OF OR IN ANY WAY PERTAINING
TO THIS INSTALLMENT NOTE.  IT IS AGREED
AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL
CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS
AGAINST PARTIES WHO ARE NOT PARTIES TO THIS INSTALLMENT NOTE. THIS WAIVER IS
KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY MAKER AND HOLDER, AND MAKER AND
HOLDER EACH HEREBY REPRESENT AND WARRANT THAT NO REPRESENTATIONS OF FACT OR
OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY
OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. 
MAKER FURTHER REPRESENTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS
INSTALLMENT NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL,
SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS
THIS WAIVER WITH COUNSEL.

 

17.                                 Interest Rate Not to Exceed Applicable Laws.  The interest rate or rates required by this
Installment Note shall not exceed the maximum rate permissible under applicable
laws.

 

18.                                 Maker’s Obligation.  Maker’s obligation to pay all amounts due
under this Installment Note shall be absolute and shall not be subject to any
set-off, deduction, claim, counterclaim or other right which Maker may have
against Initial Holder pursuant to the Purchase Agreement or otherwise.

 

19.                                 No Recourse to Property, Etc.  Notwithstanding any provision in this
Installment Note to the contrary, Holder shall have no right, remedy or
recourse in respect of this Installment Note against either the Assets or any
Maker Party.  “Maker Party” means any
affiliate of Maker or any of Maker’s or Maker’s affiliates’ respective
officers, directors, agents, other representatives, stockholders, equity
holders or members (whether direct or indirect), except to the extent any such
person or entity is a successor to or assign of Maker and subject to the
obligations of this Installment Note pursuant to paragraph 20 below.  Any judgment, decree or other remedy shall
not be subject to execution on, nor lien on, the Assets, the interest of Maker
(or of any successor or assign of Maker) in the Assets or any assets of any
Maker Party, nor shall Holder seek any other relief with respect to the Assets (or
the interest of Maker or successor or assign of Maker in the Assets) or any
other Maker Party, it being specifically understood and agreed that no Maker
Party shall have any personal liability for the payment of any obligations of
Maker under this Installment Note. 
Notwithstanding anything to the contrary contained herein, Holder agrees
that neither it nor any person acting on its behalf may assert any claim or
cause of action for payment of any of the obligations of Maker under this
Installment Note against the Assets, the interest of Maker (or any successor or
assign of Maker) in the Assets or any Maker Party.

 

20.                                 Assignment.  This Installment Note may, without
restriction, be assigned, pledged, hypothecated or otherwise transferred by
Holder by endorsement or assignment and delivery.  Holder shall promptly notify Maker of the
name and address of any assignee or other

 

6

 

transferee.  This Installment Note shall be binding upon
Maker and its successors and assigns, and the term “Maker” as used in this
Agreement shall include such successors and assigns.  Maker shall have no right to assign its
obligations under this Installment Note, and any attempted assignment by Maker
of such obligations shall be void ab initio.

 

7

 

IN WITNESS
WHEREOF, Maker executed this Installment Note on the date set forth above.

 

	
   

  	
  BOISE LAND & TIMBER II, L.L.C., a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas E. Carlile

  	
   

  
	
   

  	
   

  	
  Thomas E. Carlile,

  
	
   

  	
   

  	
  Authorized Regular Manager

  

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]