Document:

CREDIT
AND SECURITY AGREEMENT

 

dated
as of November 15, 2001

 

among

 

LP
RECEIVABLES CORPORATION,

as
Borrower,

 

LOUISIANA-PACIFIC
CORPORATION,

as
Master Servicer,

 

BLUE
RIDGE ASSET FUNDING CORPORATION,

as
Lender

 

THE
COMMITTED BANKS NAMED HEREIN

 

and

 

WACHOVIA
BANK, N.A.,

as
Administrative Agent

 

 

TABLE OF CONTENTS

 

	
  Article I The Advances

  
	
   

  
	
   

  	
  Section 1.1

  	
  Credit Facility.

  
	
   

  	
  Section
  1.2

  	
  Increases.

  
	
   

  	
  Section
  1.3

  	
  Decreases.

  
	
   

  	
  Section
  1.4

  	
  Deemed
  Collections; Borrowing Limit.

  
	
   

  	
  Section 1.5

  	
  Payment Requirements.

  
	
   

  	
   

  	
   

  
	
  Article
  II Payments and Collections

  
	
   

  
	
   

  	
  Section
  2.1

  	
  Payments
  of Recourse Obligations.

  
	
   

  	
  Section
  2.2

  	
  Settlements
  Prior to Amortization.

  
	
   

  	
  Section
  2.3

  	
  Settlements
  Following Amortization.

  
	
   

  	
  Section 2.4

  	
  Payment Recission.

  
	
   

  	
   

  	
   

  
	
  Article III
  Blue
  Ridge Funding

  
	
   

  
	
   

  	
  Section
  3.1

  	
  CP
  Costs.

  
	
   

  	
  Section 3.2

  	
  Calculation of CP
  Costs.

  
	
   

  	
  Section 3.3

  	
  CP Costs Payments.

  
	
   

  	
  Section
  3.4

  	
  Default
  Rate.

  
	
   

  	
   

  	
   

  
	
  Article
  IV Bank Fundings and
  Liquidity Fundings

  
	
   

  
	
   

  	
  Section
  4.1

  	
  Bank
  Fundings and Liquidity Funding.

  
	
   

  	
  Section 4.2

  	
  Interest Payments.

  
	
   

  	
  Section
  4.3

  	
  Selection
  and Continuation of Interest Periods.

  
	
   

  	
  Section 4.4

  	
  Liquidity
  Bank Interest Rates.

  
	
   

  	
  Section 4.5

  	
  Suspension of
  the LIBO Rate.

  
	
   

  	
  Section
  4.6

  	
  Default
  Rate.

  
	
   

  	
  Section
  4.7

  	
  Replacement
  of Committed Banks on the Existing Commitment Termination Date; Advance
  Account Deposit.

  
	
   

  	
   

  	
   

  
	
  Article
  V Representations and
  Warranties

  
	
   

  
	
   

  	
  Section
  5.1

  	
  Representations
  and Warranties of the Loan Parties.

  
	
   

  	
   

  	
   

  
	
  Article
  VI Conditions of Advances

  
	
   

  
	
   

  	
  Section
  6.1

  	
  Conditions
  Precedent to Closing and Initial Advance.

  
	
   

  	
  Section
  6.2

  	
  Conditions
  Precedent to All Advances.

  
	
   

  	
   

  	
   

  
	
  Article VII
  Covenants

  
	
   

  
	
   

  	
  Section
  7.1

  	
  Affirmative
  Covenants of the Loan Parties.

  
	
   

  	
  Section
  7.2

  	
  Negative
  Covenants of the Loan Parties.

  

 

i

 

	
  Article
  VIII Administration and
  Collection

  
	
   

  
	
   

  	
  Section 8.1

  	
  Designation
  of Master Servicer.

  
	
   

  	
  Section 8.2

  	
  Duties of Master
  Servicer.

  
	
   

  	
  Section 8.3

  	
  Collection Notices.

  
	
   

  	
  Section 8.4

  	
  Responsibilities
  of Borrower.

  
	
   

  	
  Section 8.5

  	
  Monthly Reports.

  
	
   

  	
  Section 8.6

  	
  Servicing Fee.

  
	
   

  	
   

  	
   

  
	
  Article IX
  Amortization
  Events

  
	
   

  
	
   

  	
  Section 9.1

  	
  Amortization Events.

  
	
   

  	
  Section
  9.2

  	
  Remedies.

  
	
   

  	
   

  	
   

  
	
  Article X
  Indemnification

  
	
   

  
	
   

  	
  Section
  10.1

  	
  Indemnities
  by the Loan Parties.

  
	
   

  	
  Section 10.2

  	
  Defense of Claims.

  
	
   

  	
  Section
  10.3

  	
  Increased
  Cost and Reduced Return.

  
	
   

  	
  Section 10.4

  	
  Other Costs and
  Expenses.

  
	
   

  	
  Section 10.5

  	
  Allocations.

  
	
   

  	
   

  	
   

  
	
  Article
  XI The Administrative Agent

  
	
   

  
	
   

  	
  Section 11.1

  	
  Authorization and
  Action.

  
	
   

  	
   

  	
   

  
	
  Article
  XII Assignments; Participations

  
	
   

  
	
   

  	
  Section 12.1

  	
  Assignments.

  
	
   

  	
   

  	
   

  
	
  Article
  XIII Security
  Interest

  
	
   

  
	
   

  	
  Section 13.1

  	
  Grant of
  Security Interest.

  
	
   

  	
  Section
  13.2

  	
  Termination
  after Final Payout Date.

  
	
   

  	
   

  	
   

  
	
  Article XIV
  Miscellaneous

  
	
   

  
	
   

  	
  Section 14.1

  	
  Waivers and
  Amendments.

  
	
   

  	
  Section
  14.2

  	
  Notices.

  
	
   

  	
  Section
  14.3

  	
  Protection
  of Administrative Agent’s Security Interest.

  
	
   

  	
  Section 14.4

  	
  Confidentiality.

  
	
   

  	
  Section 14.5

  	
  Bankruptcy Petition.

  
	
   

  	
  Section 14.6

  	
  Limitation of
  Liability.

  
	
   

  	
  Section 14.7

  	
  CHOICE OF LAW.

  
	
   

  	
  Section 14.8

  	
  CONSENT TO
  JURISDICTION.

  
	
   

  	
  Section 14.9

  	
  WAIVER OF JURY
  TRIAL.

  
	
   

  	
  Section
  14.10

  	
  Integration;
  Binding Effect; Survival of Terms.

  
	
   

  	
  Section
  14.11

  	
  Counterparts;
  Severability; Section References.

  
	
   

  	
   

  	
   

  	
   

  

 

ii

 

Exhibits

 

	
  Exhibit I

  	
  Definitions

  
	
   

  	
   

  
	
  Exhibit
  II

  	
  Form
  of Borrowing Notice

  
	
   

  	
   

  
	
  Exhibit III

  	
  Places
  of Business of the Loan Parties; Locations of Records; Federal Employer
  Identification Number(s)

  
	
   

  	
   

  
	
  Exhibit
  IV

  	
  Names
  of Collection Banks; Collection Accounts

  
	
   

  	
   

  
	
  Exhibit
  V

  	
  Form of Compliance
  Certificate

  
	
   

  	
   

  
	
  Exhibit
  VI

  	
  Form of Collection
  Account Agreement

  
	
   

  	
   

  
	
  Exhibit
  VII

  	
  Credit and Collection
  Policy

  
	
   

  	
   

  
	
  Exhibit VIII

  	
  [Reserved]

  
	
   

  	
   

  
	
  Exhibit
  IX

  	
  Form
  of Monthly Report

  
	
   

  	
   

  
	
  Exhibit
  X

  	
  Form of Performance Undertaking

  
	
   

  	
   

  
	
  Exhibit XI

  	
  Form of Notice
  of Committed Bank Advance

  
	
   

  	
   

  
	
  Exhibit
  XII

  	
  Form of Notice of
  Conversion

  
	
   

  	
   

  
	
  Exhibit
  XIII

  	
  Form of Assignment
  and Acceptance

  
	
   

  	
   

  
	
  Exhibit XIV

  	
  Fiscal Months

  
	
   

  	
   

  
	
  Exhibit
  XV

  	
   Material Adverse Effect

  
	
   

  	
   

  
	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Schedule A

  	
  Documents to be
  Delivered to the Agent on or Prior to the Closing Date

  

 

iii

 

CREDIT
AND SECURITY AGREEMENT

 

THIS CREDIT AND SECURITY
AGREEMENT, dated as of November 15, 2001 is entered into by and among:

 

(a)                                  LP Receivables Corporation, a Delaware
corporation (“Borrower”),

 

(b)           Louisiana-Pacific Corporation, a
Delaware corporation (“Louisiana-Pacific”),
as initial Master Servicer (Louisiana-Pacific together with Borrower, the “Loan Parties” and each, a “Loan Party”),

 

(c)           Blue Ridge Asset Funding Corporation,
a Delaware corporation (“Blue Ridge”),

 

(d)           the financial institutions identified
on the signature pages of this Agreement as “Committed Banks” (together with
their successors and assigns, the “Committed
Banks”), and

 

(e)           Wachovia Bank, N.A., as
administrative agent for Blue Ridge, the Committed Banks and their respective
assigns under the Transaction Documents and under the Liquidity Agreement
(together with its successors and assigns in such capacity, the “Administrative Agent”).

 

Unless defined elsewhere
herein, capitalized terms used in this Agreement shall have the meanings
assigned to such terms in Exhibit I.

 

PRELIMINARY
STATEMENTS

 

Borrower desires to
borrow from Blue Ridge and/or the Committed Banks from time to time.

 

Blue Ridge, either by
issuing its Commercial Paper or availing itself of a Liquidity Funding to the
extent available, and/or the Committed Banks shall make Advances to Borrower
from time to time.

 

Wachovia Bank, N.A. has
been requested and is willing to act as Administrative Agent on behalf of Blue
Ridge and the Committed Banks and their respective assigns in accordance with
the terms hereof.

 

Article I

 

The Advances

 

Section 1.1            Credit Facility.

 

(a)           Upon the terms and subject to the
conditions hereof (including, without limitation, Article VI), from time
to time prior to the Facility Termination Date, Borrower may, at its option,
request from the Lender prior to the Blue Ridge Termination Date and/or the
Committed Banks prior to the Commitment Termination Date, Advances in an
aggregate principal amount at

 

1

 

any one time outstanding not to exceed the lesser of
the Aggregate Commitment and the Borrowing Base (such lesser amount, the “Borrowing Limit”) and the Lender may,
or if the Lender shall decline to make such Advance, the Committed Banks shall,
make such Advance.

 

Each of the Advances, and
all other Aggregate Unpaids, shall be secured by the Collateral as provided in Article
XIII.  It is the intent of Blue Ridge to fund all Advances by the issuance
of Commercial Paper. If for any reason Blue Ridge is unable, or determines that
it is undesirable to issue Commercial Paper to fund or maintain Advances
hereunder, or is unable for any reason to repay such Commercial Paper upon the
maturity thereof, Blue Ridge will avail itself of a Liquidity Funding, to the
extent available.  If Blue Ridge funds or refinances any Advances made by
it hereunder through a Liquidity Funding or if any Advance is made by the
Committed Banks through a Bank Funding, in lieu of paying CP Costs on the
Aggregate Principal pursuant to Article III, Borrower shall pay interest
thereon at the Alternate Base Rate or the LIBO Rate, selected in accordance
with Article IV.  Nothing herein shall be deemed to constitute a
commitment of Blue Ridge to issue Commercial Paper.

 

(b)           Borrower may, upon at least 30 days’
notice to the Administrative Agent, terminate in whole or reduce in part the
unused portion of the Aggregate Commitment; provided that each partial
reduction of the Aggregate Commitment shall be in an amount equal to
$10,000,000 (or a larger integral multiple of $1,000,000 if in excess thereof).

 

Section 1.2            Increases.

 

Borrower shall provide
the Administrative Agent with at least two (2) Business Days’ prior notice in a
form set forth as Exhibit II hereto of each Advance (each, a “Borrowing Notice”).  Each
Borrowing Notice shall be subject to Section 6.2 and, except as set
forth below, shall be irrevocable and shall specify the requested increase in
Aggregate Principal (which shall not be less than $1,000,000 or a larger
integral multiple of $100,000) and the Borrowing Date (which, in the case of
any Advance after the initial Advance hereunder, shall occur no more than once
per week).  Following receipt of a Borrowing Notice, the Administrative
Agent will determine whether Blue Ridge will fund the requested Advance through
the issuance of Commercial Paper or through Liquidity Funding or whether the
requested Advance will be funded by the Committed Banks through a Bank Funding. 
If the Administrative Agent determines that Blue Ridge will fund the requested
Advance through a Liquidity Funding or if the Administrative Agent determines
that the Committed Banks will fund the requested Advance through a Bank
Funding, Borrower may cancel the Borrowing Notice or, in the absence of such a
cancellation, the Advance will be funded through a Liquidity Funding, to the
extent available, or a Bank Funding.  On the date of each Advance, upon
satisfaction of the applicable conditions precedent set forth in Article VI,
Blue Ridge shall deposit to the Facility Account an amount equal to the
principal amount of the requested Advance, or if Blue Ridge shall decline to
make the Advance, each Committed Bank shall deposit to the Facility Account an
amount equal to such Committed Bank’s Pro Rata Share of such Advance.

 

Section 1.3            Decreases.

 

Except as provided in Section
1.4, Borrower shall provide the Administrative Agent with prior written
notice in conformity with the Required Notice Period (a “Reduction Notice”) of any

 

2

 

proposed reduction of Aggregate Principal.  Such
Reduction Notice shall designate (a) the date (the “Proposed Reduction Date”) upon which
any such reduction of Aggregate Principal shall occur (which date shall give
effect to the applicable Required Notice Period), and (b) the amount of
Aggregate Principal to be reduced which shall be applied to reduce the
Aggregate Principal, as allocated by the Administrative Agent (giving
consideration to the minimization of Broken Funding Costs) (the “Aggregate Reduction”).  Only one
(1) Reduction Notice shall be effective during any week.

 

Section
1.4            Deemed Collections;
Borrowing Limit.

 

(a)           If on any day:

 

(i)                the Outstanding Balance of any Receivable
is reduced as a result of any defective or rejected goods or

services, any cash discount or any other adjustment by
any Originator or any Affiliate thereof, or as a result of any tariff or other
governmental or regulatory action, or

 

(ii)     the
Outstanding Balance of any Receivable is reduced or canceled as a result of a
setoff in respect of any claim by the Obligor thereof (whether such claim
arises out of the same or a related or an unrelated transaction), or

 

(iii)    the
Outstanding Balance of any Receivable is reduced on account of the obligation
of any Originator or any Affiliate thereof to pay to the related Obligor any
rebate or refund, or

 

(iv)    the
Outstanding Balance of any Receivable is less than the amount included in
calculating the Net Pool Balance for purposes of any Monthly Report (for any
reason other than such Receivable becoming a Defaulted Receivable or payment in
full of the entire Outstanding Balance being made on such Receivable), or

 

(v)     any of
the representations or warranties of the Borrower set forth in Section 5.1(i),
(j), (k), (r), (s), (t) or (u) were
not true when made with respect to any Receivable,

 

then, on such day, without duplication, the Borrower
shall be deemed to have received a Collection of such Receivable (A) in the
case of clauses (i)-(iv) above, in the amount of such reduction
or cancellation or the difference between the actual Outstanding Balance and
the amount included in calculating such Net Pool Balance, as applicable; and
(B) in the case of clause (v) above, in the amount of the Outstanding
Balance of such Receivable and, effective as of the date on which such
Collection is deemed to have been received, the Borrowing Base shall be reduced
by the amount of such Deemed Collection.

 

(b)           Borrower shall ensure that the Aggregate
Principal at no time exceeds the Borrowing Limit.  If on any day the
Aggregate Principal exceeds the Borrowing Limit, Borrower shall pay to the
Administrative Agent by the close of business on such day, an amount to be
applied to reduce the Aggregate Principal shall be applied to reduce the
Aggregate Principal, as allocated by the Administrative Agent (giving
consideration to the minimization of Broken 

 

3

 

Funding Costs) such that after giving effect to such
payment the Aggregate Principal is less than or equal to the Borrowing Limit.

 

Section 1.5            Payment Requirements.

 

All amounts to be paid or
deposited by any Loan Party pursuant to any provision of this Agreement shall
be paid or deposited in accordance with the terms hereof no later than 12:00
noon (New York time) on the day when due in immediately available funds, and if
not received before 12:00 noon (New York time) shall be deemed to be received
on the next succeeding Business Day.  If such amounts are payable to the
Lender or the Committed Banks, they shall be paid to the Administrative Agent’s
Account, for the account of the Lender and/or the Committed Banks, as the case
may be, until otherwise notified by the Administrative Agent.  Upon notice
to Borrower, the Administrative Agent may debit the Facility Account for all
amounts due and payable hereunder.  All computations of CP Costs,
Interest, per annum fees calculated as part of any CP Costs, per annum fees
hereunder and per annum fees under the Fee Letter shall be made on the basis of
a year of 360 days for the actual number of days elapsed.  If any amount
hereunder shall be payable on a day which is not a Business Day, such amount
shall be payable on the next succeeding Business Day.

 

Article II

 

Payments
and Collections

 

Section
2.1            Payments of Recourse
Obligations.

 

Borrower hereby promises
to pay the following (collectively, the “Recourse
Obligations”):

 

(a)           the Aggregate Principal on and after
the Facility Termination Date as and when Collections are received;

 

(b)           the fees set forth in the Fee Letter
on the dates specified therein;

 

(c)           all accrued and unpaid Interest on
the Alternate Base Rate Loans on each Settlement Date applicable thereto;

 

(d)           all accrued and unpaid Interest on
the LIBO Rate Loans on each Settlement Date applicable thereto;

 

(e)           all accrued and unpaid CP Costs on
the CP Rate Loans on each Scheduled Settlement Date; and

 

(f)            all Broken Funding Costs and
Indemnified Amounts upon demand.

 

Section
2.2            Settlements Prior to Amortization.

 

(a)           On each Settlement Date during the
Revolving Period, the Master Servicer, at the direction of the Borrower, shall
deposit to the Administrative Agent’s Account, for distribution

 

4

 

 in accordance with the following provisions, as
applicable, a portion of the Collections on deposit in the Collection Accounts
or otherwise received by it during the preceding Settlement Period equal to the
sum of the following amounts for application to the Aggregate Unpaids in the
order specified:

 

first, to the Lender and each Committed Bank ratably to the
payment of all accrued and unpaid CP Costs, Interest and Broken Funding Costs
(if any) that are then due and owing,

 

second, to the Master Servicer for the payment of the
accrued and unpaid Servicing Fee (so long as the Master Servicer is not
Louisiana-Pacific or an Affiliate of Louisiana-Pacific)

 

third, to the relevant party, ratably to the payment of all
accrued and unpaid fees under the Fee Letter (if any) that are then due and
owing,

 

fourth, to the Lender and the Committed Banks, ratably if
required under Section 1.3 or 1.4, to the ratable reduction of
Aggregate Principal,

 

fifth, to the Lender and the Committed Banks, ratably for
the ratable payment of all other unpaid Aggregate Unpaids, if any, that are
then due and owing,

 

sixth, to the Master Servicer for the payment of the
accrued and unpaid Servicing Fee (so long as Master Servicer is
Louisiana-Pacific or an Affiliate of Louisiana-Pacific), and

 

seventh, the balance, if any, to Borrower or otherwise in
accordance with Borrower’s instructions.

 

Section
2.3            Settlements Following
Amortization.

 

(a)           On each day on which any of the
conditions precedent set forth in Section 6.2 are not satisfied and on
the Amortization Date and each day after the Amortization Date, the Master
Servicer shall set aside and hold in trust, for the Secured Parties, all
Collections received by it on such day.  On each day on which any of the
conditions precedent set forth in Section 6.2 are not satisfied, on each
Settlement Date on and after the Amortization Date and on each other Business
Day on or after the Amortization Date specified by the Administrative Agent,
the Master Servicer, at the direction of the Borrower, shall (i) remit to the
Administrative Agent’s Account the amounts set aside pursuant to the preceding
sentence and all funds in the Collection Accounts, and (ii) apply such amounts
to reduce the Aggregate Unpaids as follows:

 

first, to the reimbursement of the Administrative Agent’s
costs of collection and enforcement of this Agreement,

 

second, to the Lender and each Committed Bank ratably to the
payment of all accrued and unpaid CP Costs, Interest and Broken Funding Costs,

 

5

 

third, to the Master Servicer for the payment of the
accrued and unpaid Servicing Fee (so long as the Master Servicer is not
Louisiana-Pacific or an Affiliate of Louisiana-Pacific),

 

fourth, to the relevant party, ratably to the payment of all
accrued and unpaid fees under the Fee Letter,

 

fifth, to the Lender and the Committed Banks, ratably to
the ratable reduction of Aggregate Principal,

 

sixth, to the Lender and the Committed Banks, for the
ratable payment of all other unpaid Aggregate Unpaids, and

 

seventh, to the Master Servicer for the payment of the
accrued and unpaid Servicing Fee (so long as the Master Servicer is
Louisiana-Pacific or an Affiliate of Louisiana-Pacific), and

 

eighth, after the Aggregate Unpaids have been indefeasibly
reduced to zero, to Borrower.

 

Section 2.4            Payment Recission.

 

No payment of any of the
Aggregate Unpaids shall be considered paid or applied hereunder to the extent
that, at any time, all or any portion of such payment or application is
rescinded by application of law or judicial authority, or must otherwise be
returned or refunded for any reason.  Borrower shall remain obligated for
the amount of any payment or application so rescinded, returned or refunded,
and shall promptly pay to the Administrative Agent (for application to the
Person or Persons who suffered such recission, return or refund) the full
amount thereof, plus Interest on such amount at the Default Rate from the date
of any such recission, return or refunding.

 

Article III

 

Blue
Ridge Funding

 

Section 3.1            CP Costs.

 

Borrower shall pay CP
Costs with respect to the portion of the Aggregate Principal funded with
Commercial Paper.  Each Loan of Blue Ridge that is funded substantially
with Pooled Commercial Paper will accrue CP Costs each day on a pro rata basis,
based upon the percentage share that the principal in respect of such Loan
represents in relation to all assets held by Blue Ridge and funded
substantially with Pooled Commercial Paper.

 

Section 3.2            Calculation of CP Costs.

 

Not later than the third
Business Day immediately preceding each Scheduled Monthly Reporting Date, Blue
Ridge shall calculate the aggregate amount of CP Costs applicable to its

 

6

 

CP Rate Loans for the Calculation Period then most
recently ended and shall notify Borrower of such aggregate amount.

 

Section 3.3            CP Costs Payments.

 

On each Scheduled
Settlement Date, Borrower shall pay to the Administrative Agent (for the
benefit of Blue Ridge) an aggregate amount equal to all accrued and unpaid CP
Costs in respect of the principal associated with all CP Rate Loans for the
Calculation Period then most recently ended in accordance with Article II.

 

Section 3.4            Default Rate.

 

From and after the
occurrence of an Amortization Event, all Loans of Blue Ridge shall accrue
Interest at the Default Rate.

 

Article IV

 

Bank
Fundings and Liquidity Fundings

 

Section 4.1            Bank Fundings and Liquidity Funding.

 

Prior to the occurrence
of an Amortization Event, the portion of the Aggregate Principal funded with a
Bank Funding or a Liquidity Funding shall accrue interest for each day during
its Interest Period at either the LIBO Rate or the Alternate Base Rate in
accordance with the terms and conditions hereof.  Until Borrower gives
notice to the Administrative Agent of another Interest Rate in accordance with Section
4.4, the initial Interest Rate for any Loan funded with a Bank Funding or a
Liquidity Funding shall be the Alternate Base Rate (unless the Default Rate is
then applicable).  If any Loan initially funded with Commercial Paper is
sold to the Liquidity Banks pursuant to the Liquidity Agreement, each Loan so
assigned shall each be deemed to have an Interest Period commencing on the date
of any such assignment.

 

Section 4.2            Interest Payments.

 

(a)           Not later than the third Business Day
preceding each Settlement Date, the Administrative Agent shall calculate the
aggregate amount of interest payable with respect to the Loans of the Liquidity
Banks and the Committed Banks for the related Interest Period and shall notify
Borrower of such aggregate amount.

 

(b)           On the Settlement Date for each Loan
that is funded with a Liquidity Funding or a Bank Funding, Borrower shall pay
to the Administrative Agent (for the benefit of the Liquidity Banks or the
Committed Banks, as the case may be) an aggregate amount equal to the accrued
and unpaid Interest for the entire Interest Period of each such Bank Funding or
Liquidity Funding in accordance with Article II.

 

Section
4.3            Selection and
Continuation of Interest Periods.

 

(a)           With consultation from (and approval
by) the Administrative Agent, Borrower shall from time to time request Interest
Periods for the Bank Fundings and Liquidity Fundings,

 

7

 

provided that if at any time any Bank Funding or
Liquidity Funding is outstanding, Borrower shall always request Interest
Periods such that at least one Interest Period shall end on the date specified
in clause (i) of the definition of Settlement Date.

 

(b)           Borrower or the Administrative Agent,
upon notice to and consent by the other received at least three (3) Business
Days prior to the end of an Interest Period (the “Terminating Tranche”) for any Bank Funding or Liquidity
Funding, may, effective on the last day of the Terminating Tranche:  (i)
divide any such Bank Funding or Liquidity Funding into multiple Bank Fundings
or Liquidity Fundings, as the case may be, (ii) combine any such Bank Funding
or Liquidity Funding with one or more other Bank Fundings or Liquidity Fundings,
as the case may be, that have a Terminating Tranche ending on the same day as
such Terminating Tranche or (iii) combine any such Bank Funding or Liquidity
Funding with a new Bank Funding or Liquidity Funding, as the case may be, to be
made by the Committed Banks (with respect to any Bank Funding) or the Liquidity
Banks (with respect to any Liquidity Funding) on the day such Terminating
Tranche ends.

 

Section
4.4            Liquidity Bank Interest
Rates.

 

Borrower may select the
LIBO Rate (subject to Section 4.5) or the Alternate Base Rate for each
Bank Funding and Liquidity Funding.  Borrower shall by 12:00 noon (New
York time):  (a) at least three (3) Business Days prior to the expiration
of any Terminating Tranche with respect to which the LIBO Rate is being requested
as a new Interest Rate and (b) at least one (1) Business Day prior to the
expiration of any Terminating Tranche with respect to which the Alternate Base
Rate is being requested as a new Interest Rate, give the Administrative Agent
irrevocable written notice of the new Interest Rate for the Bank Funding or
Liquidity Funding associated with such Terminating Tranche.  Until
Borrower gives written notice to the Administrative Agent of another Interest
Rate, the initial Interest Rate for any Loan transferred to the Liquidity Banks
pursuant to the Liquidity Agreement or funded with a Bank Funding shall be the
Alternate Base Rate (unless the Default Rate is then applicable).

 

Section 4.5            Suspension of the LIBO Rate.

 

(a)           If any Committed Bank or Liquidity
Bank notifies the Administrative Agent that it has determined that funding its
ratable share of the Bank Fundings or Liquidity Fundings, as the case may be,
at a LIBO Rate would violate any applicable law, rule, regulation, or directive
of any governmental or regulatory authority, whether or not having the force of
law, or that (i) deposits of a type and maturity appropriate to match fund its
Bank Funding or Liquidity Funding, as the case may be, at such LIBO Rate are
not available or (ii) such LIBO Rate does not accurately reflect the cost of
acquiring or maintaining a Bank Funding or Liquidity Funding, as the case may
be, at such LIBO Rate, then the Administrative Agent shall suspend the
availability of such LIBO Rate and require Borrower to select the Alternate
Base Rate for any Bank Funding or Liquidity Funding accruing Interest at such
LIBO Rate.

 

(b)           If less than all of the Committed
Banks (with respect to any Bank Funding) or all of the Liquidity Banks (with
respect to any Liquidity Funding) give a notice to the Administrative Agent
pursuant to Section 4.5(a), each Committed Bank or each Liquidity Bank,
as the case may be, which gave such a notice shall be obliged, at the request
of Borrower, Blue

 

8

 

Ridge or the Administrative Agent, to assign all of
its rights and obligations hereunder to (i) another Committed Bank or Liquidity
Bank, as the case may be, that has not given such notice or (ii) another
funding entity nominated by Borrower or the Administrative Agent that is an
Eligible Assignee willing to participate in this Agreement through the
Liquidity Termination Date in the place of such notifying Liquidity Bank, or in
the case of a Bank Funding, willing to become a Committed Bank through the
Commitment Termination Date for the related Committed Bank; provided
that (A) the notifying Committed Bank or Liquidity Bank, as the case may be,
receives payment in full, pursuant to an Assignment and Acceptance, of all
Aggregate Unpaids owing to it (whether due or accrued), and (B) in the case of
a Liquidity Funding, the replacement Liquidity Bank otherwise satisfies the
requirements of the Liquidity Agreement.

 

Section 4.6            Default Rate.

 

From and after the
occurrence of an Amortization Event, all Bank Fundings and Liquidity Fundings
shall accrue Interest at the Default Rate.

 

Section
4.7            Replacement of Committed
Banks on the Existing Commitment Termination Date; Advance Account Deposit.

 

(a)           With respect to any Committed Bank,
Borrower may, at its sole expense and effort, on the applicable Commitment
Termination Date then in effect with respect to such Committed Bank (the “Existing Commitment Termination Date”)
replace any Non-Renewing Committed Bank with one or more other Committed Banks
(which may include any existing Committed Bank, each such Person prior to such
existing Commitment Termination Date, an “Additional
Committed Bank”) and each such Additional Committed Banks shall
have entered into an Assignment and Acceptance pursuant to which such
Additional Committed Bank shall, effective as of such Existing Commitment
Termination Date, undertake a commitment as a Committed Bank to make Advances
hereunder (and, if any such Additional Committed Bank is already a Committed
Bank, its Commitment shall be increased by the applicable amount on such
date).  The right of Borrower to replace any such Committed Bank with an
Additional Committed Bank shall be subject to the conditions that (i) the
Commitment of the Additional Committed Bank (determined as of such existing Commitment
Termination Date) shall in no event be less than $7,500,000 and (ii) the
Additional Committed Bank shall be an Eligible Assignee.  Any Additional
Committed Bank who is not an existing Committed Bank shall become an Additional
Committed Bank only upon the consent of the Administrative Agent.

 

(b)           If, at any time during the Revolving
Period either (i) any Committed Bank has not agreed to extend its Commitment
hereunder for an additional 364 day period commencing on such Committed Bank’s
Commitment Termination Date and such Committed Bank has not been replaced by an
Additional Committed Bank (each such Committed Bank, a “Non-Renewing Committed Bank”), on and
after the fifteenth (15th) day preceding such Committed Bank’s Commitment
Termination Date to and including such Committed Bank’s Commitment Termination
Date, or (ii) a Downgrading Event shall occur with respect to a Committed Bank
that has not been replaced (a “Downgraded
Committed Bank”), then Borrower may request a deposit (an “Advance Account Deposit”) to be made
to an Advance Account by delivering to such Non-Renewing Committed Bank or such
Downgraded Committed Bank, as applicable, (with a copy to the Administrative
Agent) a Notice of Committed Bank Advance in substantially

 

9

 

the form attached hereto as Exhibit XI not
later than 1:00 P.M. (New York City time), on the date of such proposed funding
of such Advance Account Deposit.  Each such Notice of Committed Bank
Advance shall specify (A) the aggregate amount of such Advance Account Deposit
(which shall equal such Committed Bank’s Commitment minus the Aggregate
Principal advanced by it, whether hereunder or pursuant to the Liquidity
Agreement) and (B) the requested date of such Advance Account Deposit (which
shall be a Business Day).  Each such Non-Renewing Committed Bank or
Downgraded Committed Bank, as the case may be, shall, by 2:00 P.M. (New York
City time) on such requested date, (1) establish such Person’s Advance Account
and (2) deposit the aggregate amount of the Advance Account Deposit to be made
on such date by the deposit of such amount in same day funds to such Person’s
Advance Account.  Each such Non-Renewing Committed Bank or Downgraded
Committed Bank, as the case may be, may, in its sole discretion, invest the
proceeds and the proceeds of any investments with respect to such Person’s
Advance Account Deposit from time to time.

 

(c)           At any and all times prior to the
Committed Bank Maturity Date for the Advance Account Deposits, Borrower shall
have the right to convert all or any portion of such Advance Account Deposits
to a Loan.  Whenever Borrower wishes to convert all or any portion of the
Advance Account Deposits to a Loan, the Master Servicer, on behalf of Borrower,
shall deliver to the Administrative Agent, who shall in turn deliver to the
applicable Committed Banks, a Notice of Conversion (each, a “Notice of Conversion”) in
substantially the form of Exhibit XII hereto by no later than 1:00 P.M.
(New York City time) on the date on which the related Advance is requested to
be made.  Each such Notice of Conversion shall meet the requirements set
forth in Section 6.2.  Each Non-Renewing Committed Bank or
Downgraded Committed Bank, as the case may be, shall, before 3:00 P.M. (New
York City time) on the proposed date of such conversion, subject to the
applicable conditions set forth in Article VI, withdraw from its Advance
Account and make available to Borrower its Pro-Rata Share of the aggregate
amount requested to be converted into Loans on such date by wire transfer in
accordance with written wire transfer instructions provided by Master Servicer,
on behalf of Borrower.

 

(d)           From and after the date on which any
Advance Account Deposit is made by any Non-Renewing Committed Bank or
Downgraded Committed Bank, as the case may be, and until the earlier of (i) the
assignment (with the consent of Borrower (not to be unreasonably withheld or
delayed)) by such Non-Renewing Committed Bank or Downgraded Committed Bank, as
the case may be, of all of its rights pursuant to Section 12.1 and (ii)
the Committed Bank Maturity Date, all payments in respect of the Aggregate
Principal advanced by such Non-Renewing Committed Bank or Downgraded Committed
Bank, as the case may be, (whether or not originally funded from such Person’s
Advance Account) shall be made by depositing the related funds into such
Advance Account, whereupon such funds shall be deemed to have been converted
into a Advance Account Deposit to the extent of the payment of such Aggregate
Principal and available for conversion to Advances pursuant to Section
4.7(c).  For avoidance of doubt, if a Downgraded Committed Bank
becomes a Non-Renewing Committed Bank, the Advance Account Deposit of such
Committed Bank shall remain available for Advances pursuant to Section
4.6(c) until the Committed Bank Maturity Date applicable to a Non-Renewing
Committed Bank.  In addition, if at any time a Committed Bank is both a
Non-Renewing Committed Bank and a Downgraded Committed Bank, such Committed
Bank is obligated to make only one Advance Account Deposit which shall be in
the amount described in Section 4.7(b).

 

10

 

(e)           Upon the earlier of (i) the
assignment by such Non-Renewing Committed Bank or Downgraded Committed Bank, as
the case may be, of all of its rights pursuant to Section 12.1 and (ii)
the Committed Bank Maturity Date, all funds then held in the Advance Accounts
(after giving effect to any Advances to be made on such date) shall be paid by
such Person to its own account, and thereafter all payments in respect of the
Aggregate Principal advanced by such Person shall be paid directly to such
Person in accordance with the terms of this Agreement. In addition to the
foregoing, if the Commitment of such Person is reduced in part pursuant to Section
1.3 or by reason of a partial assignment pursuant to Section 12.1
(with the consent of Borrower (not to be unreasonably withheld or delayed)),
then, in either such event, such Person shall pay to its own account an amount
of funds then held in the Advance Account equal to the amount of such partial
reduction.  Upon the occurrence of the Committed Bank Maturity Date, all
funds in each Advance Account shall be immediately paid to the related
Committed Bank.

 

(f)            Each Non-Renewing Committed Bank or
Downgraded Committed Bank, as the case may be, shall pay to its own account on
behalf of the applicable party under the definition of Advance Account (the “Advance Account Party”), as interest
on any Advance Account Deposit, an amount equal to the amount of all realized
interest and/or other income earned from the investment of such Advance Account
Deposit pursuant to the last sentence of Section 4.7(b) received in
connection with the investment of funds on deposit in the Advance Account of
such Non-Renewing Committed Bank or Downgraded Committed Bank, as the case may
be, such payment to be made on each Settlement Date commencing after the date
the relevant Advance Account Deposit was made by such Non-Renewing Committed
Bank or Downgraded Committed Bank, as the case may be, (or more frequently as
may be acceptable to the Advance Account Party and such Non-Renewing Committed
Bank or Downgraded Committed Bank, as the case may be).  No other interest
shall be payable to such Committed Bank in respect of such Advance Account
Deposit, and neither Borrower nor the Master Servicer, or the Advance Account
Party shall have any liability therefore.  Notwithstanding anything
contained herein to the contrary, neither Borrower nor the Master Servicer, or
the Advance Account Party shall have any liability for any loss arising from
any investment or reinvestment made with funds on deposit in any Advance
Account.  The parties hereto agree to reasonably cooperate as requested by
any such party (including the execution of such documents reasonably requested
by such party) in connection with the Advance Deposit Accounts, if any,
established pursuant hereto.

 

(g)           After the Commitment Termination Date
applicable to a Committed Bank, such Committed Bank shall have no obligation to
make Advances hereunder; it being understood and agreed that funds on deposit
in such Committed Bank’s Advance Deposit Account shall remain available to
fund, on a revolving basis, such Committed Bank’s Pro Rata Share of Advances
during the Revolving Period.

 

11

 

Article V

 

Representations
and Warranties

 

Section
5.1            Representations and
Warranties of the Loan Parties.

 

Each Loan Party hereby
represents and warrants to the Administrative Agent, the Committed Banks and
Blue Ridge, as to itself, as of the date hereof, as of the date of each Advance
and as of each Settlement Date that:

 

(a)           Existence and Power. 
Such Loan Party’s jurisdiction of formation is correctly set forth in the
preamble to this Agreement.  Such Loan Party is duly organized under the
laws of that jurisdiction.  Such Loan Party is validly existing and in
good standing under the laws of its state of organization.  Such Loan
Party is duly qualified to do business and is in good standing as a foreign
entity, and has and holds all organizational power and all governmental
licenses, authorizations, consents and approvals required to carry on its
business in each jurisdiction in which its business is conducted except where
the failure to so qualify or so hold could not reasonably be expected to have a
Material Adverse Effect.

 

(b)           Power and Authority; Due
Authorization, Execution and Delivery.  The execution and delivery by
such Loan Party of this Agreement and each other Transaction Document to which
it is a party, and the performance of its obligations hereunder and thereunder
and, in the case of Borrower, Borrower’s use of the proceeds of Advances made
hereunder, are within its corporate powers and authority and have been duly authorized
by all necessary corporate action on its part.  This Agreement and each
other Transaction Document to which such Loan Party is a party has been duly
executed and delivered by such Loan Party.

 

(c)           No Conflict.  The
execution and delivery by such Loan Party of this Agreement and each other
Transaction Document to which it is a party, and the performance of its
obligations hereunder and thereunder do not contravene or violate (i) its
certificate or articles of incorporation or by-laws, (ii) any law, rule or
regulation applicable to it, (iii) any restrictions under any agreement,
contract or instrument to which it is a party or by which it or any of its
property is bound, or (iv) any order, writ, judgment, award, injunction or
decree binding on or affecting it or its property, and do not result in the
creation or imposition of any Adverse Claim on assets of such Loan Party or its
Subsidiaries (except as created hereunder) except, in any case, where such
contravention, violation, creation or imposition could not reasonably be
expected to have a Material Adverse Effect; notwithstanding the foregoing,
neither the execution and delivery by such Loan Party of each Transaction
Document to which it is a party nor the performance of its obligations
thereunder result in the creation or imposition of any Adverse Claim on all or
any portion of the Collateral; and no transaction contemplated hereby requires
compliance with any bulk sales act or similar law.

 

(d)           Governmental Authorization. 
Other than the filing of the financing statements required hereunder, no
authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body is required for the due execution
and delivery by such Loan Party of this Agreement and each other Transaction
Document to which it is a party and the performance of its obligations
hereunder and thereunder.

 

12

 

(e)           Actions, Suits.  There
are no actions, suits or proceedings pending, or to the best of such Loan
Party’s knowledge, threatened, against or affecting such Loan Party, or any of
its properties, in or before any court, arbitrator or other body, that could
reasonably be expected to have a Material Adverse Effect.  Such Loan Party
is not in default with respect to any order of any court, arbitrator or
governmental body, except where such default could not reasonably be expected
to have a Material Adverse Effect.

 

(f)            Binding Effect.  This
Agreement and each other Transaction Document to which such Loan Party is a
party constitute the legal, valid and binding obligations of such Loan Party
enforceable against such Loan Party in accordance with their respective terms,
except as such enforcement may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws relating to or limiting creditors’ rights
generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).

 

(g)           Accuracy of Information. 
All information heretofore furnished by such Loan Party or any of its
Affiliates to the Administrative Agent, the Committed Banks or the Lender for
purposes of or in connection with this Agreement, any of the other Transaction
Documents or any transaction contemplated hereby or thereby is, and all such
information hereafter furnished by such Loan Party or any of its Affiliates to
the Administrative Agent, the Committed Banks or the Lender will be, true and
accurate in every material respect on the date such information is stated or
certified and does not and will not contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
contained therein, in light of the circumstances under which they were made, not
misleading.

 

(h)           Use of Proceeds.  No
proceeds of any Advance hereunder will be used (i) for a purpose that violates,
or would be inconsistent with, (A) Section 7.2(e) or (B) Regulation T, U
or X promulgated by the Board of Governors of the Federal Reserve System from
time to time or (ii) to acquire any security in any transaction which is
subject to Section 12, 13 or 14 of the Securities Exchange Act of 1934, as
amended.

 

(i)            Good Title.  Borrower is
the legal and beneficial owner of the Receivables, Related Security with
respect thereto and all proceeds thereof, free and clear of any Adverse Claim,
except as created by the Transaction Documents.  There have been duly
filed all financing statements or other similar instruments or documents
necessary under the UCC (or any comparable law) of all appropriate
jurisdictions to perfect Borrower’s ownership interest in each Receivable, its
Collections and the Related Security.

 

(j)            Perfection.  This
Agreement is effective to create a valid security interest in favor of the
Administrative Agent for the benefit of the Secured Parties in the Collateral
to secure payment of the Aggregate Unpaids, free and clear of any Adverse Claim
except as created by the Transaction Documents.  There have been duly
filed all financing statements or other similar instruments or documents
necessary under the UCC (or any comparable law) of all appropriate
jurisdictions to perfect the Administrative Agent’s (on behalf of the Secured
Parties) security interest in the Collateral.  Borrower is a duly
registered organization under the laws of the State of Delaware and is located
for the purposes of Article 9 of the UCC in such state.  The initial
Master Servicer is a duly registered organization under the laws of the State
of Delaware and is located for the purposes of Article 9 of the UCC in such
state.

 

13

 

(k)           Places of Business and Locations
of Records.  The jurisdiction of formation, principal places of
business and chief executive office of such Loan Party and the offices where it
keeps all of its Records are located at the address(es) listed on Exhibit
III or such other locations of which the Administrative Agent has been
notified in accordance with Section 7.2(a) in jurisdictions where all
action required by Section 14.3(a) has been taken and completed. 
Borrower’s Federal Employer Identification Number is correctly set forth on Exhibit
III.

 

(l)            Collections.  The
conditions and requirements set forth in Section 7.1(j) and Section
8.2 have at all times been satisfied and duly performed.  The names,
addresses and jurisdictions of organization of all Collection Banks, together
with the account numbers of the Collection Accounts of Borrower at each
Collection Bank and the post office box number of each Lock-Box, are listed on Exhibit
IV.  Borrower has not granted any Person, other than the
Administrative Agent as contemplated by this Agreement, dominion and control of
any Lock-Box or Collection Account, or the right to take dominion and control
of any such Lock-Box or Collection Account at a future time or upon the
occurrence of a future event.

 

(m)          Material Adverse Effect. 
(i) The initial Master Servicer represents and warrants that except as
described in Exhibit XV as delivered on the Closing Date or as amended
thereafter with the prior written consent of the Administrative Agent (which
consent may be withheld in its sole discretion), since June 30, 2001, no event
has occurred that would have a material adverse effect on the financial condition
or operations of the initial Master Servicer and its Subsidiaries, taken as a
whole, or the ability of the initial Master Servicer to perform its obligations
under this Agreement, and (ii) Borrower represents and warrants that since the
date of this Agreement, no event has occurred that would have a material
adverse effect on (A) the financial condition or operations of Borrower, (B)
the ability of Borrower to perform its obligations under the Transaction
Documents, or (C) the collectibility of the Receivables generally or any
material portion of the Receivables.

 

(n)           Names.  The name in which
Borrower has executed this Agreement is identical to the name of Borrower as
indicated on the public record of its state of organization which shows
Borrower to have been organized.  In the past five (5) years, Borrower has
not used any corporate names, trade names or assumed names other than the name
in which it has executed this Agreement.

 

(o)           Ownership of Borrower. 
Louisiana-Pacific owns, directly or indirectly, 100% of the issued and
outstanding capital stock of the Borrower, free and clear of any Adverse
Claim.  Such capital stock is validly issued, fully paid and
nonassessable, and there are no options, warrants or other rights to acquire
securities of the Borrower.

 

(p)           Not a Holding Company or an
Investment Company.  Such Loan Party is not a “holding company” or a
“subsidiary holding company” of a “holding company” within the meaning of the
Public Utility Holding Company Act of 1935, as amended, or any successor
statute.  Such Loan Party is not an “investment company” within the
meaning of the Investment Company Act of 1940, as amended, or any successor
statute.

 

(q)           Compliance with Law. 
Such Loan Party has complied in all respects with all applicable laws, rules,
regulations, orders, writs, judgments, injunctions, decrees or awards to

 

14

 

which it may be subject, except where the failure to
so comply could not reasonably be expected to have a Material Adverse Effect. 
Each Receivable, together with the Contract related thereto, does not
contravene any laws, rules or regulations applicable thereto (including,
without limitation, laws, rules and regulations relating to truth in lending,
fair credit billing, fair credit reporting, equal credit opportunity, fair debt
collection practices and privacy), and no part of such Contract is in violation
of any such law, rule or regulation, except where such contravention or
violation could not reasonably be expected to have a Material Adverse Effect.

 

(r)            Compliance with Credit and
Collection Policy.  Such Loan Party has complied in all material
respects with the Credit and Collection Policy with regard to each Receivable
and the related Contract except to the extent any such failure to comply could
have a Material Adverse Effect, and has not made any change to such Credit and
Collection Policy, except such change as to which the Administrative Agent has
been notified in accordance with Section 7.1(a)(vii).

 

(s)           Payments to Applicable Originator. 
With respect to each Receivable transferred to Borrower under the Receivables
Sale Agreement, Borrower has given reasonably equivalent value to the
applicable Originator in consideration therefor and such transfer was not made
for or on account of an antecedent debt.  No transfer by any Originator of
any Receivable under the Receivables Sale Agreement is or may be voidable under
any section of the Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 101 et seq.), as amended.

 

(t)            Enforceability of Contracts. 
Each Contract with respect to each Receivable is effective to create, and has
created, a legal, valid and binding obligation of the related Obligor to pay
the Outstanding Balance of the Receivable created thereunder and any accrued
interest thereon, enforceable against the Obligor in accordance with its terms,
except as such enforcement may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws relating to or limiting creditors’ rights
generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).

 

(u)           Eligible Receivables. 
Each Receivable included in the Net Pool Balance as an Eligible Receivable on
the date of any Monthly Report was an Eligible Receivable on the last day of
the period to which such Monthly Report relates.

 

(v)           Borrowing Limit. 
Immediately after giving effect to each Advance and each settlement on any
Settlement Date hereunder, the Aggregate Principal is less than or equal to the
Borrowing Limit.

 

(w)          Accounting.  The manner in
which such Loan Party accounts for the transactions contemplated by this
Agreement and the Receivables Sale Agreement does not adversely affect the
status of the transfers of Receivables, Related Security and all proceeds
thereof to Borrower pursuant to the Receivables Sale Agreement as true sales
for bankruptcy purposes.

 

 

15

 

Article VI

 

Conditions
of Advances

 

Section
6.1            Conditions Precedent to
Closing and Initial Advance.

 

This Agreement shall not
be effective and the Committed Banks shall not be obligated to make the initial
Advance hereunder, nor shall the Lender, the Administrative Agent or any
Committed Bank be obligated to fulfill or perform any other action hereunder
until the following conditions have been met (a) the Administrative Agent shall
have received on or before the Closing Date those documents listed on Schedule
A to the Receivables Sale Agreement and those documents listed on Schedule A
to this Agreement, and (b) the Administrative Agent shall have received all
fees and expenses required to be paid on or before the Closing Date pursuant to
the terms of this Agreement and the Fee Letter.

 

Section 6.2            Conditions Precedent to All Advances.

 

Each Advance and each
rollover or continuation of any Advance shall be subject to the further
conditions precedent that (a) the Master Servicer shall have delivered to the
Administrative Agent on or prior to the date thereof, in form and substance
satisfactory to the Administrative Agent, all Monthly Reports as and when due
under Section 8.5; (b) the Facility Termination Date shall not have
occurred; (c) the Administrative Agent shall have received such other
approvals, opinions or documents as it may reasonably request; and (d) on the
date thereof, the following statements shall be true (and acceptance of the
proceeds of such Advance shall be deemed a representation and warranty by
Borrower that such statements are then true):

 

(i)            the
representations and warranties set forth in Section 5.1 are true and
correct on and as of the date of such Advance as though made on and as of such
date;

 

(ii)           no
event has occurred and is continuing, or would result from such Advance (or the
continuation thereof), that will constitute an Amortization Event, and no event
has occurred and is continuing, or would result from such Advance (or the
continuation thereof), that would constitute an Unmatured Amortization Event;
and

 

(iii)          after
giving effect to such Advance (or the continuation thereof), the Aggregate
Principal will not exceed the Borrowing Limit.

 

Article VII

 

Covenants

 

Section
7.1            Affirmative Covenants of
the Loan Parties.

 

Until the Final Payout
Date, each Loan Party hereby covenants, as to itself, as set forth below:

 

(a)           Financial Reporting. 
Such Loan Party will maintain, for itself and each of its Subsidiaries, a
system of accounting established and administered in accordance with GAAP, and
furnish or cause to be furnished to the Administrative Agent:

 

(i)            Annual
Reporting.  Within 90 days after the close of each of its respective
fiscal years, audited, unqualified financial statements (which shall include
balance sheets, statements of income and retained earnings and a statement of
cash flows) for such Loan

 

16

 

Party for such fiscal year certified in a manner
acceptable to the Administrative Agent by independent public accountants
reasonably acceptable to the Administrative Agent.

 

(ii)           Quarterly
Reporting.  Within 45 days after the close of the first three (3)
quarterly periods of each of its respective fiscal years, balance sheets of
each of the Loan Parties as at the close of each such period and statements of
income and retained earnings and a statement of cash flows for each such Person
for the period from the beginning of such fiscal year to the end of such
quarter, all certified by its respective chief financial officer.

 

(iii)          Compliance
Certificate.  Together with the financial statements required
hereunder, a compliance certificate in substantially the form of Exhibit V
signed by such Loan Party’s Authorized Officer and dated the date of such
annual financial statement or such quarterly financial statement, as the case
may be.

 

(iv)          Shareholders
Statements and Reports.  Promptly upon the furnishing thereof to the
shareholders of such Loan Party copies of all financial statements, reports and
proxy statements so furnished; provided, however that to the extent that
copies of any such financial statements, reports or proxy statements are
publicly available on EDGAR, the requirements of this clause (iv) shall
be satisfied.

 

(v)           S.E.C.
Filings.  Promptly upon the filing thereof, copies of all registration
statements and annual, quarterly, monthly or other regular reports which any
Loan Party or any of its Affiliates files with the Securities and Exchange
Commission; provided, however, that to the extent that copies of such
registration statements and annual, quarterly, monthly or other regular reports
are publicly available on EDGAR, the requirements of this clause (v)
shall be satisfied.

 

(vi)          Copies
of Notices.  Promptly upon its receipt of any notice, request for
consent, financial statements, certification, report or other communication
under or in connection with any Transaction Document from any Person other than
the Administrative Agent, any Committed Bank or the Lender, copies of the same.

 

(vii)         Change
in Credit and Collection Policy.  At least seven (7) days prior to the
effectiveness of any change in or amendment to the Credit and Collection
Policy, a copy of the Credit and Collection Policy then in effect and a notice
(A) indicating such change or amendment, and (B) if such proposed change or
amendment would be reasonably likely to adversely affect the collectibility of
the Receivables or decrease the credit quality of any newly created
Receivables, requesting the Administrative Agent’s consent thereto.

 

(viii)        Other
Information.  Promptly, from time to time, such other information,
documents, records or reports relating to the Receivables or the condition or
operations, financial or otherwise, of such Loan Party as the Administrative
Agent may from time to time reasonably request in order to protect the
interests of the Administrative Agent and the Secured Parties under or as
contemplated by this Agreement.

 

17

 

(b)           Notices.  Such Loan Party
will notify the Administrative Agent in writing of any of the following
promptly upon learning of the occurrence thereof, describing the same and, if
applicable, the steps being taken with respect thereto:

 

(i)            Amortization
Events or Unmatured Amortization Events.  The occurrence of each
Amortization Event and each Unmatured Amortization Event, by a statement of an
Authorized Officer of such Loan Party.

 

(ii)           Judgments
and Proceedings.  (A) (1) The entry of any judgment or decree against
Performance Guarantor, the Master Servicer or any of their respective
Subsidiaries if the aggregate amount of all judgments and decrees then
outstanding against Performance Guarantor, the Master Servicer and their
respective Subsidiaries exceeds $25,000,000 after deducting (I) the amount with
respect to which Performance Guarantor, the Master Servicer or any such
Subsidiary, as the case may be, is insured and with respect to which the
insurer has assumed responsibility in writing, and (II) the amount for which
Performance Guarantor, the Master Servicer or any such Subsidiary is otherwise
indemnified if the terms of such indemnification are satisfactory to the
Administrative Agent, and (2) the institution of any litigation, arbitration
proceeding or governmental proceeding against Performance Guarantor or the
Master Servicer which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect; and (B) the entry of any judgment
or decree or the institution of any litigation, arbitration proceeding or
governmental proceeding against Borrower.

 

(iii)          Material
Adverse Effect.  The occurrence of any event or condition that has
had, or could reasonably be expected to have, a Material Adverse Effect.

 

(iv)          Termination
Date.  The occurrence of the “Termination Date” under and as defined
in the Receivables Sale Agreement.

 

(v)           Defaults
Under Other Agreements.  The occurrence of a default or an event of
default under any Material Indebtedness or an event of default under any other
financing arrangement pursuant to which such Loan Party is a debtor or an
obligor.

 

(vi)          Notices
under Receivables Sale Agreement.  Copies of all notices delivered
under the Receivables Sale Agreement.

 

(vii)         Downgrade
of Performance Guarantor.  Any downgrade in the rating of any
Indebtedness of Performance Guarantor by S&P or Moody’s, setting forth the
Indebtedness affected and the nature of such change.

 

(viii)        Fiscal
Months.  No later than September 30 of each calendar year, an updated Exhibit
XIV, showing each of the Fiscal Months for the immediately succeeding
fiscal year and the Monthly Reporting Dates with respect thereto.

 

(c)           Compliance with Laws and
Preservation of Corporate Existence.  Such Loan Party will comply in
all respects with all applicable laws, rules, regulations, orders, writs,
judgments, injunctions, decrees or awards to which it may be subject, except
where the failure to so comply could not reasonably be expected to have a
Material Adverse Effect.   Such Loan

 

18

 

Party will preserve and maintain its corporate
existence, rights, franchises and privileges in the jurisdiction of its
incorporation, and qualify and remain qualified in good standing as a foreign
corporation in each jurisdiction where its business is conducted, except where
the failure to so preserve and maintain or qualify could not reasonably be
expected to have a Material Adverse Effect.

 

(d)           Audits.  Such Loan Party
will furnish to the Administrative Agent from time to time such information
with respect to it and the Receivables as the Administrative Agent may
reasonably request.  Such Loan Party will, from time to time during
regular business hours as requested by the Administrative Agent upon reasonable
notice and at the sole cost of such Loan Party, permit the Administrative
Agent, or its agents or representatives (and shall cause each Originator to
permit the Administrative Agent or its agents or representatives):  (i) to
examine and make copies of and abstracts from all Records in the possession or
under the control of such Person relating to the Collateral, including, without
limitation, the related Contracts, and (ii) to visit the offices and properties
of such Person for the purpose of examining such materials described in clause
(i) above, and to discuss matters relating to such Person’s financial
condition or the Collateral or any Loan Party’s, the Performance Guarantor’s or
any Originator’s performance under any of the Transaction Documents or any such
Person’s performance under the Contracts and, in each case, with any of the
officers or employees of Borrower or the Master Servicer having knowledge of
such matters (each of the foregoing examinations and visits, a “Review”); provided, however, that, so
long as no Amortization Event has occurred, (A) the Loan Parties shall only be
responsible for the costs and expenses of a total of four (4) Reviews in any
one calendar year hereunder and under Section 4.1(d) of the Sale Agreement (at
least two (2) of which shall be conducted by independent auditors), and (B) the
Administrative Agent will not request more than a total of four (4) Reviews in
any one calendar year hereunder and under Section 4.1(d) of the Sale Agreement;
provided, further that satisfaction of the audit requirements with respect to
the Originators in Section 4.1(d) of the Sale Agreement shall satisfy the audit
requirements of this Section 7.1(d) with respect to the Originators.  No
later than ninety days after the Closing Date, each Loan Party shall permit the
Administrative Agent, or its agents or representatives (and shall have caused
each Originator to permit the Administrative Agent, or its agents or
representatives) to conduct one Review at the expense of such Loan Party which
Review shall include examinations with respect to each Loan Party and each
Originator.

 

(e)           Keeping and Marking of Records and
Books.

 

(i)           The
Master Servicer will (and will cause each Originator to) maintain and implement
administrative and operating procedures (including, without limitation, an
ability to recreate records evidencing Receivables in the event of the
destruction of the originals thereof), and keep and maintain all documents,
books, records and other information reasonably necessary or advisable for the
collection of all Receivables (including, without limitation, records adequate
to permit the immediate identification of each new Receivable and all
Collections of and adjustments to each existing Receivable).  The Master
Servicer will (and will cause each Originator to) give the Administrative Agent
notice of any material change in the administrative and operating procedures
referred to in the previous sentence.

 

19

 

(ii)          Such
Loan Party will (and will cause each Originator to):  (A) on or prior to
the date hereof, mark its master data processing records and other books and
records relating to the Loans with a legend, acceptable to the Administrative
Agent, describing the Administrative Agent’s security interest in the
Collateral and (B) upon the request of the Administrative Agent following the
occurrence of an Amortization Event, deliver to the Administrative Agent all
Contracts (including, without limitation, all multiple originals of any such
Contract constituting an instrument, a certificated security or chattel paper)
relating to the Receivables.

 

(f)            Compliance with Contracts and
Credit and Collection Policy.  Such Loan Party will (and will cause
each Originator to) timely and fully (i) perform and comply with all
provisions, covenants and other promises required to be observed by it under
the Contracts related to the Receivables, and (ii) comply in all material respects
with the Credit and Collection Policy in regard to each Receivable and the
related Contract, except to the extent any such failure to comply could have a
Material Adverse Effect.

 

(g)           Performance and Enforcement of
Receivables Sale Agreement.  Borrower will, and will require each
Originator to, perform each of their respective obligations and undertakings
under and pursuant to the Receivables Sale Agreement, will purchase Receivables
thereunder in strict compliance with the terms thereof and will vigorously
enforce the rights and remedies accorded to Borrower under the Receivables Sale
Agreement.  Borrower will take all actions to perfect and enforce its
rights and interests (and the rights and interests of the Administrative Agent
for the benefit of the Secured Parties as assignee of Borrower) under the
Receivables Sale Agreement as the Administrative Agent may from time to time
reasonably request, including, without limitation, making claims to which it
may be entitled under any indemnity, reimbursement or similar provision
contained in the Receivables Sale Agreement.

 

(h)           Ownership.  Borrower will
(or will cause each Originator to) take all necessary action to (i) vest legal
and equitable title to the Collateral purchased under the Receivables Sale
Agreement irrevocably in Borrower, free and clear of any Adverse Claims (other
than Adverse Claims in favor of the Administrative Agent, for the benefit of
the Secured Parties), the filing of all financing statements or other similar
instruments or documents necessary under the UCC (or any comparable law) of all
appropriate jurisdictions to perfect Borrower’s interest in such Collateral and
such other action to perfect, protect or more fully evidence the interest of
Borrower therein as the Administrative Agent may reasonably request), and (ii)
establish and maintain, in favor of the Administrative Agent, for the benefit
of the Secured Parties, a valid and perfected first priority security interest
in all Collateral, free and clear of any Adverse Claims, including, without
limitation, the filing of all financing statements or other similar instruments
or documents necessary under the UCC (or any comparable law) of all appropriate
jurisdictions to perfect the Administrative Agent’s (for the benefit of the Secured
Parties) security interest in the Collateral and such other action to perfect,
protect or more fully evidence the interest of the Administrative Agent for the
benefit of the Secured Parties as the Administrative Agent may reasonably
request.

 

(i)            Reliance.  Borrower
acknowledges that the Administrative Agent, the Lender and each Committed Bank
is entering into the transactions contemplated by this Agreement in reliance
upon Borrower’s identity as a legal entity that is separate from each
Originator.

 

20

 

Therefore, from and after the date of execution and
delivery of this Agreement, Borrower shall take all steps, including, without
limitation, all steps that the Administrative Agent, any Committed Bank or the
Lender may from time to time request, to maintain Borrower’s identity as a
separate legal entity and to make it manifest to third parties that Borrower is
an entity with assets and liabilities distinct from those of each Originator
and any Affiliates thereof (other than Borrower) and not just a division of any
Originator or any such Affiliate.  Without limiting the generality of the
foregoing and in addition to the other covenants set forth herein, Borrower
will:

 

(i)            conduct
its own business in its own name and require that all full-time employees of
Borrower, if any, identify themselves as such and not as employees of any
Originator (including, without limitation, by means of providing appropriate
employees with business or identification cards identifying such employees as
Borrower’s employees);

 

(ii)           compensate
all employees, consultants and agents directly, from Borrower’s own funds, for
services provided to Borrower by such employees, consultants and agents and, to
the extent any employee, consultant or agent of Borrower is also an employee,
consultant or agent of any Originator or any Affiliate thereof, allocate the
compensation of such employee, consultant or agent between Borrower and such
Originator or such Affiliate, as applicable, on a basis that reflects the
services rendered to Borrower and such Originator or such Affiliate, as
applicable;

 

(iii)          clearly
identify its offices (by signage or otherwise) as its offices and, if such
office is located in the offices of any Originator, Borrower shall lease such
office at a fair market rent;

 

(iv)          have
a separate telephone number, which will be answered only in its name and
separate stationery and checks in its own name;

 

(v)           conduct
all transactions with each Originator and the Master Servicer (including,
without limitation, any delegation of its obligations hereunder as Master
Servicer) strictly on an arm’s-length basis, allocate all overhead expenses
(including, without limitation, telephone and other utility charges) for items
shared between Borrower and such Originator on the basis of actual use to the
extent practicable and, to the extent such allocation is not practicable, on a
basis reasonably related to actual use;

 

(vi)          at
all times have a Board of Directors consisting of three members, at least one
member of which is an Independent Director;

 

(vii)         observe
all corporate formalities as a distinct entity, and ensure that all corporate
actions relating to (A) the selection, maintenance or replacement of the
Independent Director, (B) the dissolution or liquidation of Borrower or (C) the
initiation of, participation in, acquiescence in or consent to any bankruptcy,
insolvency, reorganization or similar proceeding involving Borrower, are duly
authorized by unanimous vote of its Board of Directors (which shall include the
vote of the Independent Director except with respect to clause (A) above);

 

21

 

(viii)        maintain
Borrower’s books and records separate from those of each Originator and any
Affiliate thereof and otherwise readily identifiable as its own assets rather
than assets of any Originator or any Affiliate thereof;

 

(ix)           prepare
its financial statements separately from those of each Originator and insure
that any consolidated financial statements of any Originator or any Affiliate
thereof that include Borrower and that are filed with the Securities and
Exchange Commission or any other governmental agency have notes clearly stating
that Borrower is a separate corporate entity and that its assets will be
available first and foremost to satisfy the claims of the creditors of
Borrower;

 

(x)            except
as herein specifically otherwise provided, maintain the funds or other assets
of Borrower separate from, and not commingled with, those of any Originator or
any Affiliate thereof and only maintain bank accounts or other depository
accounts to which Borrower alone is the account party, into which Borrower
alone makes deposits and from which Borrower alone (or the Administrative Agent
hereunder) has the power to make withdrawals;

 

(xi)           pay
all of Borrower’s operating expenses from Borrower’s own assets (except for
certain payments by any Originator or other Persons pursuant to allocation
arrangements that comply with the requirements of this Section 7.1(i));

 

(xii)          operate
its business and activities such that:  it does not engage in any business
or activity of any kind, or enter into any transaction or indenture, mortgage,
instrument, agreement, contract, lease or other undertaking, other than the
transactions contemplated and authorized by this Agreement and the Receivables
Sale Agreement; and does not create, incur, guarantee, assume or suffer to
exist any indebtedness or other liabilities, whether direct or contingent,
other than (A) as a result of the endorsement of negotiable instruments for
deposit or collection or similar transactions in the ordinary course of
business, (B) the incurrence of obligations under this Agreement, (C) the
incurrence of obligations, as expressly contemplated in the Receivables Sale Agreement,
to make payment to the applicable Originator thereunder for the purchase of
Receivables from such Originator under the Receivables Sale Agreement, and (D)
the incurrence of operating expenses in the ordinary course of business of the
type otherwise contemplated by this Agreement;

 

(xiii)         maintain
its corporate charter in conformity with this Agreement, such that it does not
amend, restate, supplement or otherwise modify its Certificate of Incorporation
or By-Laws in any respect that would impair its ability to comply with the
terms or provisions of any of the Transaction Documents, including, without
limitation, Section 7.1(i) of this Agreement;

 

(xiv)        maintain
the effectiveness of, and continue to perform under the Receivables Sale
Agreement and the Performance Undertaking, such that it does not amend,
restate, supplement, cancel, terminate or otherwise modify the Receivables Sale
Agreement or the Performance Undertaking, or give any consent, waiver,
directive or approval thereunder or waive any default, action, omission or
breach under the

 

22

 

Receivables Sale Agreement or the Performance
Undertaking or otherwise grant any indulgence thereunder, without (in each
case) the prior written consent of the Administrative Agent;

 

(xv)         maintain
its corporate separateness such that it does not merge or consolidate with or
into, or convey, transfer, lease or otherwise dispose of (whether in one
transaction or in a series of transactions, and except as otherwise
contemplated herein) all or substantially all of its assets (whether now owned
or hereafter acquired) to, or acquire all or substantially all of the assets
of, any Person, nor at any time create, have, acquire, maintain or hold any
interest in any Subsidiary.

 

(xvi)        maintain
at all times the Required Capital Amount (as defined in the Receivables Sale
Agreement) and refrain from making any dividend, distribution, redemption of
capital stock or payment of any subordinated indebtedness which would cause the
Required Capital Amount to cease to be so maintained;

 

(xvii)       maintain
and cause the Master Servicer and any Subservicer to maintain books and records
which contain such information from time to time as may be necessary for
determination as of any particular date (after due allowance of time needed for
reconciliation of book and record entries reflecting transactions on such date)
of the amounts of the Receivables purchased from the respective Originators
that actually came into existence on such date and the corresponding amounts of
Purchase Price (as defined in the Sale Agreement) paid respectively to such
Originators on such date pursuant to Sections 1.3(d) and 1.5 of the Sale
Agreement and amounts applied on such date in payment or prepayment of obligations
under the Subordinated Note.

 

(xviii)      take
such other actions as are necessary on its part to ensure that the facts and
assumptions set forth in the opinions issued by Brobeck, Phleger & Harrison
LLP as counsel for Borrower, in connection with the closing or initial Advance
under this Agreement and relating to true sale and substantive consolidation
issues, and in the certificates and the Separateness Agreement accompanying
such opinions, remain true and correct, and are complied with, in all material respects
at all times.

 

(j)            Collections.  Such Loan
Party will cause (i) all proceeds from all Lock-Boxes to be directly deposited
by a Collection Bank into a Collection Account and (ii) each Lock-Box and
Collection Account to be subject at all times to a Collection Account Agreement
that is in full force and effect.  In the event any payments relating to
the Collateral are remitted directly to Borrower or any Affiliate of Borrower,
Borrower will remit (or will cause all such payments to be remitted) directly
to a Collection Bank and deposited into a Collection Account within two (2)
Business Days following receipt thereof, and, at all times prior to such
remittance, Borrower will itself hold or, if applicable, will cause such
payments to be held in trust for the exclusive benefit of the Administrative
Agent, the Committed Banks and the Lender.  Borrower will maintain
exclusive ownership, dominion and control (subject to the terms of this
Agreement) of each Lock-Box and Collection Account and shall not grant the
right to take dominion and control of any Lock-Box or Collection Account at a
future time or upon the occurrence of a future event to any Person, except to
the Administrative Agent as contemplated by this Agreement.

 

23

 

(k)           Taxes.  Such Loan Party
will file all tax returns and reports required by law to be filed by it and
will promptly pay all taxes and governmental charges at any time owing, except
any such taxes which are not yet delinquent or are being diligently contested
in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books.  Borrower
will pay when due any taxes payable in connection with the Receivables,
exclusive of taxes on or measured by income or gross receipts of the
Administrative Agent, any Committed Bank or the Lender.

 

(l)            Payment to Applicable Originator. 
With respect to any Receivable purchased by Borrower from any Originator, such
purchase shall be effected under, and in strict compliance with the terms of,
the Receivables Sale Agreement, including, without limitation, the terms
relating to the amount and timing of payments to be made to such Originator in
respect of the purchase price for such Receivable.

 

Section 7.2            Negative Covenants of the Loan Parties.

 

Until the Final Payout
Date, each Loan Party hereby covenants, as to itself, that:

 

(a)           Change of Jurisdiction of
Formation, Name Change, Offices and Records.  Such Loan Party will not
change its name, identity or structure (within the meaning of any applicable
enactment of the UCC), relocate its chief executive office at any time while
the location of its chief executive office is relevant to perfection of the
Administrative Agent’s security interest, for the benefit of the Secured
Parties, in the Receivables, Related Security and Collections, change its
jurisdiction of formation, or change any office where Records are kept unless
it shall have:  (i) given the Administrative Agent at least forty-five
(45) days’ prior written notice thereof and (ii) delivered to the
Administrative Agent all financing statements, instruments, legal opinions and
other documents requested by the Administrative Agent in connection with such
change or relocation.

 

(b)           Change in Payment Instructions to
Obligors.  Except as may be required by the Administrative Agent
pursuant to Section 8.2(b), such Loan Party will not add or terminate
any bank as a Collection Bank, or make any change in the instructions to
Obligors regarding payments to be made to any Lock-Box or Collection Account,
unless the Administrative Agent shall have received, at least ten (10) days
before the proposed effective date therefor, (i) written notice of such
addition, termination or change and (ii) with respect to the addition of a
Collection Bank or a Collection Account or Lock-Box, an executed Collection
Account Agreement with respect to the new Collection Account or Lock-Box;
provided, however, that the Master Servicer may make changes in instructions to
Obligors regarding payments if such new instructions require such Obligor to
make payments to another existing Collection Account.

 

(c)           Modifications to Contracts and
Credit and Collection Policy.  Without the prior written consent of
the Administrative Agent, such Loan Party will not, and will not permit any
Originator to, make any change to the Credit and Collection Policy that could
adversely affect the collectibility of the Receivables or decrease the credit
quality of any newly created Receivables.  Except as provided in Section
8.2(d), the Master Servicer will not, and will not permit any Originator
to, extend, amend or otherwise modify the terms of any Receivable or any
Contract related thereto other than in accordance with the Credit and
Collection Policy.

 

24

 

(d)           Sales, Liens.  Borrower
will not sell, assign (by operation of law or otherwise) or otherwise dispose
of, or grant any option with respect to, or create or suffer to exist any
Adverse Claim) upon (including, without limitation, the filing of any financing
statement) or with respect to, any of the Collateral, or assign any right to
receive income with respect thereto (other than, in each case, the creation of
a security interest therein in favor of the Administrative Agent as provided
for herein), and Borrower will defend the right, title and interest of the
Secured Parties in, to and under any of the foregoing property, against all
claims of third parties claiming through or under Borrower or any Originator. 
Borrower will not create or suffer to exist any mortgage, pledge, security
interest, encumbrance, lien, charge or other similar arrangement on any of its
inventory.

 

(e)           Use of Proceeds. 
Borrower will not use the proceeds of the Advances for any purpose other than
(i) paying for Receivables and Related Security under and in accordance with
the Receivables Sale Agreement, including without limitation, making payments
on the Subordinated Notes to the extent permitted thereunder and under the
Receivables Sale Agreement, (ii) paying its ordinary and necessary operating
expenses when and as due, and (iii) making Restricted Junior Payments to the
extent permitted under this Agreement.

 

(f)            Termination Date Determination. 
Borrower will not designate the Termination Date (as defined in the Receivables
Sale Agreement), or send any written notice to any Originator in respect
thereof, without the prior written consent of the Administrative Agent, except
with respect to the occurrence of such Termination Date arising pursuant to Section
5.1(d) of the Receivables Sale Agreement.

 

(g)           Restricted Junior Payments. 
Borrower will not make any Restricted Junior Payment if after giving effect
thereto, Borrower’s Net Worth (as defined in the Receivables Sale Agreement)
would be less than the Required Capital Amount (as defined in the Receivables
Sale Agreement).

 

(h)           Borrower Indebtedness. 
Borrower will not incur or permit to exist any Indebtedness except:  (i)
the Aggregate Unpaids, (ii) the Subordinated Notes, and (iii) other current
accounts payable arising in the ordinary course of business and not overdue.

 

(i)            Prohibition on Additional
Negative Pledges.  No Loan Party will enter into or assume any
agreement (other than this Agreement and the other Transaction Documents)
prohibiting the creation or assumption of any Adverse Claim upon the Collateral
except as contemplated by the Transaction Documents, or otherwise prohibiting
or restricting any transaction contemplated hereby or by the other Transaction
Documents, and no Loan Party will enter into or assume any agreement creating
any Adverse Claim upon the Subordinated Note.

 

(j)            Ownership of Borrower. 
Borrower shall not have more than one stockholder at any time.

 

25

 

Article
VIII

 

Administration
and Collection

 

Section
8.1            Designation of Master
Servicer.

 

(a)           The servicing, administration and
collection of the Receivables shall be conducted by such Person (the “Master Servicer”) so designated from
time to time in accordance with this Section 8.1. 
Louisiana-Pacific is hereby designated as, and hereby agrees to perform the
duties and obligations of, the Master Servicer pursuant to the terms of this
Agreement.  The Administrative Agent may at any time after the occurrence
of an LP Downgrade Event designate as Master Servicer any Person to succeed
Louisiana-Pacific or any successor Master Servicer provided that the Rating
Agency Condition is satisfied.  In addition, with the prior written
consent of the Administrative Agent in its sole discretion, Borrower may at any
time designate any Person to succeed Louisiana-Pacific or any successor Master
Servicer provided that the Rating Agency Condition is satisfied.

 

(b)           Louisiana-Pacific may delegate, and
Louisiana-Pacific hereby advises the Lender, the Committed Banks and the
Administrative Agent that it has delegated, to the other Originators, as
sub-Master Servicers of the Master Servicer (each a “Subservicer”), certain of its duties
and responsibilities as Master Servicer hereunder in respect of the Receivables
originated by such other Originator.  Without the prior written consent of
the Administrative Agent, Louisiana-Pacific shall not be permitted to delegate
any of its duties or responsibilities as Master Servicer to any Person other
than (i) Borrower, (ii) the other Originators, and (iii) with respect to
Defaulted Receivables, outside collection agencies in accordance with its
customary practices.  Neither Borrower nor any Subservicer shall be
permitted to further delegate to any other Person any of the duties or
responsibilities of the Master Servicer delegated to it by
Louisiana-Pacific.  If at any time pursuant to the terms hereof the
Administrative Agent or the Borrower pursuant to the foregoing subsection
(a) shall designate as Master Servicer any Person other than
Louisiana-Pacific, all duties and responsibilities theretofore delegated by
Louisiana-Pacific to Borrower or any Subservicer may, at the discretion of the
Administrative Agent, be terminated forthwith on notice given by the
Administrative Agent to Louisiana-Pacific and to Borrower and each Subservicer;
provided, however, upon the revocation of the power of the Master
Servicer, each Subservicer’s power to act hereunder shall be automatically
revoked.

 

(c)           Notwithstanding the foregoing subsection
(b) as long as Louisiana-Pacific or an Affiliate of Louisiana-Pacific is
Master Servicer hereunder:  (i) Louisiana-Pacific shall be and remain
primarily liable to the Administrative Agent, the Committed Banks and the Lender
for the full and prompt performance of all duties and responsibilities of the
Master Servicer hereunder and (ii) the Administrative Agent, the Committed
Banks and the Lender shall be entitled to deal exclusively with
Louisiana-Pacific in matters relating to the discharge by the Master Servicer
of its duties and responsibilities hereunder.  So long as
Louisiana-Pacific is the Master Servicer, none of Administrative Agent, the
Committed Banks or the Lender shall be required to give notice, demand or other
communication to any Person other than Louisiana-Pacific in order for
communication to the Master Servicer and its Subservicer or other delegate with
respect thereto to be accomplished.  Louisiana-Pacific, at all times that
it is the Master

 

26

 

Servicer, shall be responsible for providing any
Subservicer or other delegate of the Master Servicer with any notice given to
the Master Servicer under this Agreement.

 

Section 8.2            Duties of Master Servicer.

 

(a)           The Master Servicer shall take or
cause to be taken all such actions as may be necessary or advisable to collect
each Receivable from time to time, all in accordance with applicable laws,
rules and regulations, with reasonable care and diligence, and in accordance
with the Credit and Collection Policy.

 

(b)           The Master Servicer will instruct all
Obligors to pay all Collections directly to a Lock-Box or Collection
Account.  The Master Servicer shall effect a Collection Account Agreement
substantially in the form of Exhibit VI (or such other form as the
Administrative Agent shall approve in its sole discretion) with each bank party
to a Collection Account at any time.  In the case of any remittances
received in any Lock-Box or Collection Account that shall have been identified,
to the satisfaction of the Master Servicer, to not constitute Collections or
other proceeds of the Receivables or the Related Security, the Master Servicer
shall promptly remit such items to the Person identified to it as being the
owner of such remittances.  From and after the date the Administrative
Agent delivers to any Collection Bank a Collection Notice pursuant to Section
8.3, the Administrative Agent may request that the Master Servicer, and the
Master Servicer thereupon promptly shall instruct all Obligors with respect to
the Receivables, to remit all payments thereon to a new depositary account
specified by the Administrative Agent and, at all times thereafter, Borrower
and the Master Servicer shall not deposit or otherwise credit, and shall not
permit any other Person to deposit or otherwise credit to such new depositary
account any cash or payment item other than Collections.

 

(c)           The Master Servicer shall administer
the Collections in accordance with the procedures described herein and in Article
II.  The Master Servicer shall set aside and hold in trust for the
account of Borrower, the Committed Banks and the Lender their respective shares
of the Collections in accordance with Article II.  The Master
Servicer shall, upon the request of the Administrative Agent, segregate, in a
manner acceptable to the Administrative Agent, all cash, checks and other
instruments received by it from time to time constituting Collections from the
general funds of the Master Servicer or Borrower prior to the remittance
thereof in accordance with Article II.  If the Master Servicer
shall be required to segregate Collections pursuant to the preceding sentence,
the Master Servicer shall segregate and deposit with a bank designated by the
Administrative Agent such allocable share of Collections of Receivables set
aside for the Lender and the Committed Banks on the first Business Day
following receipt by the Master Servicer of such Collections, duly endorsed or
with duly executed instruments of transfer.  Notwithstanding the
foregoing, neither the Master Servicer nor any Subservicer shall have any
disbursement or other authority in respect of the Collection Accounts except in
accordance with the Collection Account Agreements and the specific or standing
authorizations from time to time given by the Administrative Agent or
Authorized Officers of the Borrower and in effect.

 

(d)           The Master Servicer may, in
accordance with the Credit and Collection Policy, extend the maturity of any
Receivable or adjust the Outstanding Balance of any Receivable as the Master
Servicer determines to be appropriate to maximize Collections thereof;
provided, however, that such extension or adjustment shall not alter the status
of such Receivable as a

 

27

 

Delinquent Receivable or Defaulted Receivable or limit
the rights of the Administrative Agent, the Committed Banks or the Lender under
this Agreement.  Notwithstanding anything to the contrary contained
herein, the Administrative Agent shall, after the occurrence of an Incipient
Event, have the absolute and unlimited right to direct the Master Servicer to
commence or settle any legal action with respect to any Receivable or to
foreclose upon or repossess any Related Security.

 

(e)           The Master Servicer shall hold in
trust for Borrower and the Administrative Agent on behalf of the Secured
Parties all Records that (i) evidence or relate to the Receivables, the related
Contracts and Related Security or (ii) are otherwise necessary or desirable to
collect the Receivables and shall, as soon as practicable upon demand of the
Administrative Agent, deliver or make available to the Administrative Agent all
such Records, at a place selected by the Administrative Agent.  The Master
Servicer shall, as soon as practicable following receipt thereof turn over to
Borrower any cash collections or other cash proceeds received with respect to
Indebtedness not constituting Receivables.  The Master Servicer shall,
from time to time at the request of the Administrative Agent, furnish to the
Administrative Agent (promptly after any such request) a calculation of the
amounts set aside for the Committed Banks and the Lender pursuant to Article
II.

 

(f)            Any payment by an Obligor in respect
of any indebtedness owed by it to Originator or Borrower shall, except as
otherwise specified by such Obligor or otherwise required by contract or law
and unless otherwise instructed by the Administrative Agent, be applied as a
Collection of any Receivable of such Obligor (starting with the oldest such
Receivable) to the extent of any amounts then due and payable thereunder before
being applied to any other receivable or other obligation of such Obligor.

 

Section 8.3            Collection Notices.

 

The Administrative Agent
is authorized at any time to date and to deliver to the Collection Banks the
Collection Notices.  Borrower hereby transfers to the Administrative Agent
for the benefit of the Secured Parties, effective when the Administrative Agent
delivers such notice, the exclusive ownership and control of each Lock-Box and
the Collection Accounts.  In case any authorized signatory of Borrower
whose signature appears on a Collection Account Agreement shall cease to have
such authority before the delivery of such notice, such Collection Notice shall
nevertheless be valid as if such authority had remained in force. 
Borrower hereby authorizes the Administrative Agent, and agrees that the
Administrative Agent shall be entitled (a) at any time after delivery of the
Collection Notices, to endorse Borrower’s name on checks and other instruments
representing Collections, (b) at any time after the occurrence of an
Amortization Event, to enforce the Receivables, the related Contracts and the
Related Security, and (c) at any time after the occurrence of an Amortization
Event, to take such action as shall be necessary or desirable to cause all
cash, checks and other instruments constituting Collections of Receivables to
come into the possession of the Administrative Agent rather than Borrower.

 

Section
8.4            Responsibilities of
Borrower.

 

Anything herein to the
contrary notwithstanding, the exercise by the Administrative Agent, the
Committed Banks and the Lender of their rights hereunder shall not release the

 

28

 

Master Servicer, any Originator or Borrower from any
of their duties or obligations with respect to any Receivables or under the
related Contracts.  None of the Administrative Agent, the Lender nor the
Committed Banks shall have any obligation or liability with respect to any
Receivables or related Contracts, nor shall any of them be obligated to perform
the obligations of Borrower.

 

Section 8.5            Monthly Reports.

 

The Master Servicer shall
prepare and forward to the Administrative Agent (a) on each Monthly Reporting
Date, a Monthly Report and an electronic file of the data contained therein and
(b) at such times as the Administrative Agent shall request, a listing by
Obligor of all Receivables together with an aging of such Receivables; provided,
however that the Master Servicer shall deliver a Monthly Report more frequently
than monthly upon the request of the Administrative Agent.

 

Section 8.6            Servicing Fee.

 

As compensation for the
Master Servicer’s servicing activities on its behalf, including the Master Servicer’s
undertaking of the indemnification obligations provided for in Section 5 and
Section 11 of the Multi-Party Agreement Relating To Lockbox Services, dated as
of November 15, 2001 among the Borrower, the Master Servicer, the
Administrative Agent and Bank of America, N.A. or any other Collection Account
Agreement, Borrower hereby agrees to pay the Master Servicer the Servicing Fee,
which fee shall be paid in arrears on each Scheduled Settlement Date out of
Collections.  No Subservicer shall be entitled to receive any Servicing
Fee provided for herein, but shall be entitled to receive a monthly fee for
each Calculation Period in respect of its duties as Subservicer solely from the
Master Servicer in an amount agreed to by such Subservicer and the Master Servicer.

 

Article IX

 

Amortization
Events

 

Section 9.1            Amortization Events.

 

The occurrence of any one
or more of the following events shall constitute an Amortization Event:

 

(a)           Any Loan Party or Performance
Guarantor shall fail to make any payment or deposit required to be made by it
under the Transaction Documents when due and such failure shall continue for
one (1) Business Day after notice thereof has been given by the Administrative
Agent to such Loan Party or Performance Guarantor, as the case may be.

 

(b)           Any representation or warranty made
by Performance Guarantor or any Loan Party in any Transaction Document to which
it is a party or in any other document delivered pursuant thereto shall prove
to have been incorrect when made or deemed made or any other certification or
statement made by Performance Guarantor or any Loan Party shall prove to have
been incorrect in any material respect when made or deemed made.

 

29

 

(c)           Any Loan Party shall fail to perform
or observe any covenant contained in Section 7.2 or 8.5 when due.

 

(d)           Any Loan Party or Performance
Guarantor shall fail to perform or observe any other covenant or agreement
under any Transaction Documents and such failure shall continue for ten (10)
consecutive Business Days.

 

(e)           Failure of Borrower to pay any
Indebtedness (other than the Aggregate Unpaids) when due or the default by
Borrower in the performance of any term, provision or condition contained in
any agreement under which any such Indebtedness was created or is governed, the
effect of which is to cause, or to permit the holder or holders of such
Indebtedness to cause, such Indebtedness to become due prior to its stated
maturity; or any such Indebtedness of Borrower shall be declared to be due and
payable or required to be prepaid (other than by a regularly scheduled payment)
prior to the date of maturity thereof.

 

(f)            Failure of Performance Guarantor,
the Louisiana-Pacific or any of their respective Subsidiaries (other than
Borrower) to pay Indebtedness in excess of $25,000,000 in aggregate principal
amount (hereinafter, “Material
Indebtedness”) when due; or the default by Performance
Guarantor, the Louisiana-Pacific or any of their respective Subsidiaries other
than Borrower in the performance of any term, provision or condition contained
in any agreement under which any Material Indebtedness was created or is
governed that continues after the expiration of any applicable cure or grace
period or that is not waived by the holder or holders of such Indebtedness, the
effect of which is to cause, or to permit the holder or holders of such
Material Indebtedness to cause, such Material Indebtedness to become due prior
to its stated maturity; or any Material Indebtedness of Performance Guarantor,
Louisiana-Pacific or any of their respective Subsidiaries other than Borrower
shall be declared to be due and payable or required to be prepaid (other than
by a regularly scheduled payment) prior to the date of maturity thereof.

 

(g)           An Event of Bankruptcy shall occur
with respect to Performance Guarantor, any Loan Party or any of their
respective Subsidiaries.

 

(h)           As at the end of any Calculation
Period:

 

(i)           the
three-month rolling average Delinquency Ratio shall exceed 2.20%,

 

(ii)          the
three-month rolling average Default Ratio shall exceed .75%, or

 

(iii)         the
three-month rolling average Dilution Ratio shall exceed .75%.

 

(i)            A Change of Control shall occur.

 

(j)            (i) One or more final judgments for
the payment of money in an amount in excess of $25,000,000, individually or in
the aggregate, shall be entered against Performance Guarantor or any of its
Subsidiaries (other than Borrower) on claims not covered by insurance or as to
which the insurance carrier has denied its responsibility, and such judgment
shall continue unsatisfied and in effect for thirty (30) consecutive days
without a stay of execution, or (ii) one or more final judgments for the
payment of money in an aggregate amount of $10,750 or more shall be entered
against Borrower.

 

30

 

(k)           The “Termination Date” under and as
defined in the Receivables Sale Agreement shall occur under the Receivables
Sale Agreement or any Originator shall for any reason cease to transfer, or
cease to have the legal capacity to transfer, or otherwise be incapable of
transferring Receivables to Borrower under the Receivables Sale Agreement.

 

(l)            This Agreement shall terminate in
whole or in part (except in accordance with its terms), or shall cease to be
effective or to be the legally valid, binding and enforceable obligation of
Borrower, or any Obligor shall directly or indirectly contest in any manner
such effectiveness, validity, binding nature or enforceability, or the
Administrative Agent for the benefit of the Secured Parties shall cease to have
a valid and perfected first priority security interest in the Collateral.

 

(m)          On any Settlement Date, after giving
effect to the turnover of Collections by the Master Servicer on such date and
the application thereof to the Aggregate Unpaids in accordance with this
Agreement, the Aggregate Principal shall exceed the Borrowing Limit.

 

(n)           The Performance Undertaking shall
cease to be effective or to be the legally valid, binding and enforceable
obligation of Performance Guarantor, or Performance Guarantor shall directly or
indirectly contest in any manner such effectiveness, validity, binding nature
or enforceability of its obligations thereunder.

 

(o)           The Internal Revenue Service shall
file notice of a lien pursuant to Section 6323 of the Tax Code with regard to
any of the Collateral and such lien shall continue until the earlier of (i)
seven (7) days after inception and (ii) knowledge by any Secured Party of such
lien, or the PBGC shall, or shall indicate its intention to, file notice of a
lien pursuant to Section 4068 of ERISA with regard to any of the Collateral.

 

(p)           Any Plan of Performance Guarantor or
any of its ERISA Affiliates:

 

(i)            shall
fail to be funded in accordance with the minimum funding standard resulting
from an accumulated funding deficiency as required by applicable law, the terms
of such Plan, Section 412 of the Tax Code or Section 302 of ERISA for any plan
year or a waiver of such standard is sought or granted with respect to such
Plan under applicable law, the terms of such Plan or Section 412 of the Tax
Code or Section 303 of ERISA; or

 

(ii)           is
being, or has been, terminated or the subject of termination proceedings under
applicable law or the terms of such Plan; or

 

(iii)          shall
require Performance Guarantor or any of its ERISA Affiliates to provide
security under applicable law, the terms of such Plan, Section 401 or 412 of
the Tax Code or Section 306 or 307 of ERISA; or

 

(iv)          results
in a liability to Performance Guarantor or any of its ERISA Affiliates under
applicable law, the terms of such Plan, or Title IV ERISA,

 

and there shall result from any such failure, waiver,
termination or other event a liability to the PBGC or a Plan that would have a
Material Adverse Effect.

 

31

 

(q)           Any event shall occur which (i)
materially and adversely impairs the ability of the Originators to originate
Receivables of a credit quality that is at least equal to the credit quality of
the Receivables sold or contributed to Borrower on the date of this Agreement
or (ii) has, or could be reasonably expected to have a Material Adverse Effect.

 

(r)            An LP Downgrade Event shall occur.

 

(s)           Immediately after giving effect to
each settlement on any Settlement Date, the Net Pool Balance shall be less than
the sum of the Aggregate Principal plus the Required Reserve.

 

Section 9.2            Remedies.

 

Upon the occurrence of an
Amortization Event and/or at any time thereafter, the Administrative Agent may,
or upon the direction of the Required Liquidity Banks shall, take any of the
following actions:  (a) replace the Person then acting as Master Servicer
if the Administrative Agent has not already done so (b) declare the
Amortization Date to have occurred, whereupon the Aggregate Commitment shall
immediately terminate and the Amortization Date shall forthwith occur, all
without demand, protest or further notice of any kind, all of which are hereby
expressly waived by each Loan Party; provided, however, that upon the
occurrence of an Event of Bankruptcy with respect to any Loan Party, the
Amortization Date shall automatically occur, without demand, protest or any
notice of any kind, all of which are hereby expressly waived by each Loan
Party, (c) deliver the Collection Notices to the Collection Banks, (d) exercise
all rights and remedies of a secured party upon default under the UCC and other
applicable laws, and (e) notify Obligors of the Administrative Agent’s security
interest in the Receivables and other Collateral.  The aforementioned
rights and remedies shall be without limitation, and shall be in addition to
all other rights and remedies of the Administrative Agent, the Committed Banks
and the Lender otherwise available under any other provision of this Agreement,
by operation of law, at equity or otherwise, all of which are hereby expressly
preserved, including, without limitation, all rights and remedies provided
under the UCC, all of which rights shall be cumulative.

 

Article X

 

Indemnification

 

Section 10.1         Indemnities by the Loan Parties.

 

Without limiting any
other rights that the Administrative Agent, the Lender or any Committed Bank
may have hereunder or under applicable law, (a) Borrower hereby agrees to
indemnify (and pay upon demand to) the Administrative Agent, the Lender, each
of the Committed Banks, each of the Liquidity Banks and each of the respective
assigns, officers, directors, agents and employees of the foregoing (each, an “Indemnified Party”) from and against
any and all damages, losses, claims, taxes, liabilities, costs, expenses and
for all other amounts payable, including attorneys’ fees (which attorneys may
be employees of the Administrative Agent, the Committed Banks or the Lender)
and disbursements (all of the foregoing being collectively referred to as “Indemnified Amounts”) awarded against
or incurred by any of them arising out of or as a result of this Agreement or
the acquisition, either directly or

 

 

32

 

indirectly, by the Lender, any Committed Bank or any
Liquidity Bank of an interest in the Receivables, and (b) the Master Servicer
hereby agrees to indemnify (and pay upon demand to) each Indemnified Party for
Indemnified Amounts awarded against or incurred by any of them arising out of
the Master Servicer’s activities as Master Servicer hereunder excluding,
however, in all of the foregoing instances under the preceding clauses (a)
and (b):

 

(i)            Indemnified
Amounts to the extent a final judgment of a court of competent jurisdiction
holds that such Indemnified Amounts resulted from gross negligence or willful
misconduct on the part of the Indemnified Party seeking indemnification;

 

(ii)           Indemnified
Amounts to the extent the same includes losses in respect of Receivables that
are uncollectible on account of the insolvency, bankruptcy or lack of
creditworthiness of the related Obligor; or

 

(iii)          taxes
imposed by any jurisdiction in which such Indemnified Party’s principal
executive office is located, on or measured by the overall net income of such
Indemnified Party to the extent that the computation of such taxes is
consistent with the characterization for income tax purposes of the acquisition
by any Committed Bank or the Lender of Loans as a loan or loans by such
Committed Bank or the Lender to Borrower secured by the Receivables, the
Related Security, the Collection Accounts and the Collections;

 

provided, however, that nothing contained in this
sentence shall limit the liability of any Loan Party or limit the recourse of
any Committed Bank or the Lender to any Loan Party for amounts otherwise
specifically provided to be paid by such Loan Party under the terms of this
Agreement.  Without limiting the generality of the foregoing
indemnification, Borrower shall indemnify the Administrative Agent, each
Committed Bank and the Lender for Indemnified Amounts (including, without
limitation, losses in respect of uncollectible receivables, regardless of
whether reimbursement therefor would constitute recourse to Borrower or the
Master Servicer) relating to or resulting from:

 

(c)           any representation or warranty made
by any Loan Party or any Originator (or any officers of any such Person) under
or in connection with this Agreement, any other Transaction Document or any
other information or report delivered by any such Person pursuant hereto or
thereto, which shall have been false or incorrect when made or deemed made;

 

(d)           the failure by Borrower, the Master
Servicer or any Originator to comply with any applicable law, rule or
regulation with respect to any Receivable or Contract related thereto, or the
nonconformity of any Receivable or Contract related thereto included therein
with any such applicable law, rule or regulation or any failure of any
Originator to keep or perform any of its obligations, express or implied, with
respect to any Contract;

 

(e)           any failure of Borrower, the Master
Servicer or any Originator to perform its duties, covenants or other
obligations in accordance with the provisions of this Agreement or any other
Transaction Document;

 

33

 

(f)            any products liability, personal
injury or damage suit, or other similar claim arising out of or in connection
with merchandise, insurance or services that are the subject of any Contract or
any Receivable;

 

(g)           any dispute, claim, offset or defense
(other than discharge in bankruptcy of the Obligor) of the Obligor to the
payment of any Receivable (including, without limitation, a defense based on
such Receivable or the related Contract not being a legal, valid and binding
obligation of such Obligor enforceable against it in accordance with its
terms), or any other claim resulting from the sale of the merchandise or
service related to such Receivable or the furnishing or failure to furnish such
merchandise or services;

 

(h)           the commingling of Collections of
Receivables at any time with other funds;

 

(i)            any investigation, litigation or
proceeding related to or arising from this Agreement or any other Transaction
Document, the transactions contemplated hereby, the use of the proceeds of any
Advance, the Collateral or any other investigation, litigation or proceeding
relating to Borrower, the Master Servicer or any Originator in which any
Indemnified Party becomes involved as a result of any of the transactions
contemplated hereby;

 

(j)            any inability to litigate any claim
against any Obligor in respect of any Receivable as a result of such Obligor
being immune from civil and commercial law and suit on the grounds of
sovereignty or otherwise from any legal action, suit or proceeding;

 

(k)           any Amortization Event;

 

(l)            any failure of Borrower to acquire
and maintain legal and equitable title to, and ownership of any of the
Collateral from the applicable Originator, free and clear of any Adverse Claim
(other than as created hereunder); or any failure of Borrower to give
reasonably equivalent value to any Originator under the Receivables Sale
Agreement in consideration of the transfer by such Originator of any
Receivable, or any attempt by any Person to void such transfer under statutory
provisions or common law or equitable action;

 

(m)          any failure to vest and maintain
vested in the Administrative Agent for the benefit of the Secured Parties, or
to transfer to the Administrative Agent for the benefit of the Secured Parties,
a valid first priority perfected security interests in the Collateral, free and
clear of any Adverse Claim (except as created by the Transaction Documents);

 

(n)           the failure to have filed, or any
delay in filing, financing statements or other similar instruments or documents
with respect to any Originator or any Loan Party under the UCC of any
applicable jurisdiction or other applicable laws with respect to any
Collateral, and the proceeds thereof, whether at the time of any Advance or at
any subsequent time;

 

(o)           any action or omission by any Loan
Party which reduces or impairs the rights of the Administrative Agent, the
Committed Banks or the Lender with respect to any Collateral or the value of
any Collateral;

 

34

 

(p)           any attempt by any Person to void any
Advance or the Administrative Agent’s security interest in the Collateral under
statutory provisions or common law or equitable action; and

 

(q)           the failure of any Receivable
included in the calculation of the Net Pool Balance as an Eligible Receivable
to be an Eligible Receivable at the time so included.

 

Section 10.2         Defense of Claims.

 

(a)           An Indemnified Party shall, after
obtaining actual knowledge, thereof, promptly notify Borrower in writing of any
action, suit or proceeding brought against such Indemnified Party which could
give rise to any payment by Borrower or the Master Servicer under Section 10.1
(a “Claim”) as to which
indemnification is sought (unless Borrower or Master Servicer theretofore has
notified such Indemnified Party of such Claim); except that the failure to give
such notice shall not release Borrower or the Master Servicer, as the case may
be, from any of its obligations under this Agreement, however Borrower’s or the
Master Servicer’s, as the case may be, obligations shall be reduced to the
extent that failure to promptly give notice of any action, suit or proceeding
against such Indemnified Party (i) impairs Borrower or the Master Servicer, as
the case may be, from defending such Claim or (ii) increases the amount for
which Borrower or the Master Servicer, as the case may be, is liable in
accordance with Section 10.1.  Within forty-five days after
receiving notice from an Indemnified Party of any Claim as to which
indemnification is sought, Borrower or the Master Servicer, as the case may be,
if is so desires may elect in writing, subject to the provisions of the
following paragraph, to control, at its sole cost and expense, and to assume
full responsibility for, the defense of such Claim with counsel acceptable to
the Indemnified Parties in their reasonable discretion; provided, that
the Borrower has agreed in writing on or prior to the assumption of such
defense to indemnify such Indemnified Party for such Claim.  If Borrower
or the Master Servicer, as the case may be, elects to assume the defense of
such Claim, it shall keep the Indemnified Party which is the subject of such
proceeding fully apprised of the status of the proceeding and shall provide
such Indemnified Party with all information with respect to such proceeding as
such Indemnified Party may reasonably request.  If Borrower or Master
Servicer, as the case may be, does not elect to assume control, as provided for
above, and provided it is not preventing from assuming such control pursuant to
the provisions of clause (b) below, the applicable Indemnified Party shall, at
the expense of Borrower or the Master Servicer, as the case may be, supply
Borrower with all such information and documents reasonably requested by
Borrower or Master Servicer, as the case may be.

 

(b)           Notwithstanding any of the foregoing
to the contrary, Borrower or the Master Servicer, as the case may be, shall not
be entitled to control and assume responsibility for the defense of such Claim
if in the reasonable opinion of such Indemnified Party, (i) there exists an
actual or potential conflict of interest, such that such Indemnified Party
determines that it is desirable to retain control of such proceeding (ii) such
Claim involves the risk of criminal liability to such Indemnified Party or
(iii) the control of such Claim would involve a conflict of interest.  In
the circumstances described above, the Indemnified Party shall be entitled to
control and assume responsibility for the defense of such claim or liability,
subject to Section 10.1, at the expense of Borrower or the Master
Servicer, as the case may be.

 

35

 

(c)           No Indemnified Party shall settle any
Claim without the prior written consent of Borrower or the Master Servicer, as
the case may be (which consent shall not be unreasonably withheld or
delayed).  Neither Borrower nor the Master Servicer, as the case may be,
may settle any Claim without the prior written consent of each affected
Indemnified Party which consent may not be unreasonably withheld or delayed in
the case of a money settlement not involving an admission of liability of such
Indemnified Party, nor may Borrower or the Master Servicer, as the case may be,
settle any Claim if such settlement results, or could reasonably be expected to
result, in criminal liability of such Indemnified Party.

 

Section 10.3         Increased Cost and Reduced Return.

 

If after the date hereof,
any Funding Source shall be charged any fee, expense or increased cost on
account of the adoption of any applicable law, rule or regulation (including
any applicable law, rule or regulation regarding capital adequacy) or any
change therein, or any change in the interpretation or administration thereof
by any governmental authority, central bank or comparable agency charged with
the interpretation or administration thereof, or compliance with any request or
directive (whether or not having the force of law) of any such authority,
central bank or comparable agency (a “Regulatory
Change”):  (a) that subjects any Funding Source to any
charge or withholding on or with respect to any Funding Agreement or a Funding
Source’s obligations under a Funding Agreement, or on or with respect to the
Receivables, or changes the basis of taxation of payments to any Funding Source
of any amounts payable under any Funding Agreement (except for changes in the
rate of tax on the overall net income of a Funding Source or taxes excluded by Section
10.1) or (b) that imposes, modifies or deems applicable any reserve,
assessment, insurance charge, special deposit or similar requirement against
assets of, deposits with or for the account of a Funding Source, or credit
extended by a Funding Source pursuant to a Funding Agreement or (c) that
imposes any other condition the result of which is to increase the cost to a
Funding Source of performing its obligations under a Funding Agreement, or to
reduce the rate of return on a Funding Source’s capital as a consequence of its
obligations under a Funding Agreement, or to reduce the amount of any sum received
or receivable by a Funding Source under a Funding Agreement or to require any
payment calculated by reference to the amount of interests or loans held or
interest received by it, then, upon demand by the Administrative Agent, subject
to Section 10.5, Borrower shall pay to the Administrative Agent, for the
benefit of the relevant Funding Source, such amounts charged to such Funding
Source or such amounts to otherwise compensate such Funding Source for such
increased cost or such reduction.

 

Section 10.4         Other Costs and Expenses.

 

Borrower shall pay to the
Administrative Agent, each Committed Bank and the Lender on demand all costs
and out-of-pocket expenses in connection with the preparation, execution,
delivery and administration of this Agreement, the transactions contemplated
hereby and the other documents to be delivered hereunder, including without
limitation, the cost of each such Person’s auditors auditing the books, records
and procedures of Borrower (but only to the extent Borrower is obligated to pay
such audit expenses pursuant to the Fee Letter and Section 7.1(d)), fees
and out-of-pocket expenses of legal counsel for the Lender, each Committed Bank
and the Administrative Agent (which such counsel may be employees of the
Lender, such Committed Bank or the Administrative Agent) with respect thereto
and with respect to advising the Lender,

 

36

 

any Committed Bank and the Administrative Agent as to
their respective rights and remedies under this Agreement.  Borrower shall
pay to the Administrative Agent on demand any and all costs and expenses of the
Administrative Agent, any Committed Bank and the Lender, if any, including
counsel fees and expenses in connection with the enforcement of this Agreement
and the other documents delivered hereunder and in connection with any
restructuring or workout of this Agreement or such documents, or the
administration of this Agreement following an Amortization Event.  Subject
to Section 10.4, Borrower shall reimburse Blue Ridge on demand for all
other costs and expenses incurred by Blue Ridge (“Other Costs”), including, without limitation, the cost
of auditing Blue Ridge’s books by certified public accountants, the cost of
rating the Commercial Paper by independent financial rating agencies, and the
fees and out-of-pocket expenses of counsel for Blue Ridge or any counsel for
any shareholder of Blue Ridge with respect to advising Blue Ridge or such
shareholder as to matters relating to Blue Ridge’s operations.

 

Section 10.5         Allocations.

 

Blue Ridge or the
Administrative Agent on behalf of Blue Ridge shall allocate the liability for
Other Costs and/or Regulatory Changes among Borrower and other Persons with
whom Blue Ridge has entered into agreements to purchase interests in or finance
receivables and other financial assets (“Other
Customers”).  If any Other Costs and/or any Regulatory
changes are attributable to Borrower and not attributable to any Other
Customer, Borrower shall be solely liable for such Other Costs and/or
Regulatory changes.  However, if Other Costs and/or Regulatory changes are
attributable to Other Customers and not attributable to Borrower, such Other
Customer shall be solely liable for such Other Costs and/or Regulatory
changes.  All allocations to be made pursuant to the foregoing provisions
of this Article X shall be made by Blue Ridge or the Administrative
Agent on behalf of Blue Ridge in its sole discretion and shall be binding on
Borrower and the Master Servicer.

 

Article XI

 

The
Administrative Agent

 

Section 11.1         Authorization and Action.

 

The Lender and each
Committed Bank, on behalf of itself and its assigns, hereby designates and
appoints Wachovia to act as its agent under the Transaction Documents and under
the Liquidity Agreement, and authorizes the Administrative Agent to take such
actions as agent on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms of the Liquidity Agreement or the
Transaction Documents, together with such powers as are reasonably incidental
thereto.  The Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth in the Liquidity Agreement
or in any Transaction Document, or any fiduciary relationship with the
Committed Banks and the Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities on the part of the
Administrative Agent shall be read into the Liquidity Agreement or any
Transaction Document or otherwise exist for the Administrative Agent.  In
performing its functions and duties under the Liquidity Agreement and the
Transaction Documents, the Administrative Agent shall act solely as agent for
the Committed Banks and the Lender and does not assume nor shall

 

37

 

be deemed to have assumed any obligation or
relationship of trust or agency with or for any Loan Party or any of such Loan
Party’s successors or assigns.  The Administrative Agent shall not be
required to take any action that exposes the Administrative Agent to personal
liability or that is contrary to the Liquidity Agreement or any Transaction
Document or applicable law.  The appointment and authority of the
Administrative Agent hereunder shall terminate upon the indefeasible payment in
full of all Aggregate Unpaids.  Each Committed Bank and the Lender hereby
authorizes the Administrative Agent to execute each of the UCC financing
statements, each Collection Account Agreement on behalf of the Secured Parties
(the terms of which shall be binding on each Secured Party).

 

Article XII

 

Assignments;
Participations

 

Section 12.1         Assignments.

 

(a)           Each of the Administrative Agent, the
Loan Parties and the Liquidity Banks hereby agrees and consents to the complete
or partial assignment by Blue Ridge of all or any portion of its rights under,
interest in, title to and obligations under this Agreement to the Liquidity
Banks pursuant to the Liquidity Agreement.

 

(b)           Each of the parties hereto, on behalf
of its successors and assigns, hereby agrees and consents to the complete or
partial sale by any Committed Bank of all or any portion of its rights under,
interest in, title to and obligations under this Agreement to an Eligible
Assignee regardless of whether such sale constitutes an assignment or the sale
of a participation in such rights and obligations; provided, however,
that any partial sale by a Committed Bank shall be in a minimum amount of
$25,000,000 or an integral multiple of $1,000,000 in excess thereof; provided
further that any complete or partial sale by a Committed Bank shall, prior to
an Amortization Event, be subject to the prior written consent of the Borrower
(which consent shall not be unreasonably withheld).  Each Committed Bank
shall deliver to each of its assignees an assignment in substantially the form
the Assignment and Acceptance, which shall be duly executed by such Committed
Bank, assigning any such rights under, interest in, title to and obligations
under this Agreement to the assignee.  Upon any assignment pursuant to this
Section 12.1(b) the respective assignee receiving such assignment shall
have all the rights of the assigning Committed Bank hereunder and all
references to the Committed Banks shall be deemed to apply to such assignee.

 

(c)           No Loan Party may assign any of its
rights or obligations under this Agreement without the prior written consent of
the Administrative Agent, each of the Committed Banks and the Lender and
without satisfying the Rating Agency Condition.

 

(d)           There shall be no more than 99
beneficial owners of an interest in this Agreement or the obligations of the
Borrower hereunder.

 

38

 

Article XIII

 

Security
Interest

 

Section
13.1         Grant of Security Interest.

 

To secure the due and
punctual payment of the Aggregate Unpaids, whether now or hereafter existing,
due or to become due, direct or indirect, or absolute or contingent, including,
without limitation, all Indemnified Amounts, in each case pro rata according to
the respective amounts thereof, the Borrower hereby grants to the
Administrative Agent, for the benefit of the Secured Parties, a security
interest in, all of the Borrower’s right, title and interest, whether now owned
and existing or hereafter arising in and to all accounts, deposit accounts, chattel
paper, electronic chattel paper, instruments, general intangibles and other
assets and all proceeds thereof, whether now owned or hereafter acquired, now
existing or hereafter arising and wherever located, including, without
limitation, all Receivables, the Related Security, the Collections, all
accounts, general intangibles, bank accounts, securities, instruments and other
assets of Borrower and all proceeds of the foregoing (collectively, the “Collateral”).

 

Section
13.2         Termination after Final
Payout Date.

 

Each of the Secured
Parties hereby authorizes the Administrative Agent, and the Administrative
Agent hereby agrees, promptly after the Final Payout Date to execute and
deliver to the Borrower such UCC termination statements as may be necessary to
terminate the Administrative Agent’s security interest in and Lien upon the
Collateral, all at the Borrower’s expense.  Upon the Final Payout Date,
all right, title and interest of the Administrative Agent and the other Secured
Parties in and to the Collateral shall terminate.

 

Article XIV

 

Miscellaneous

 

Section 14.1         Waivers and Amendments.

 

(a)           No failure or delay on the part of
the Administrative Agent, any Committed Bank or the Lender in exercising any
power, right or remedy under this Agreement shall operate as a waiver thereof,
nor shall any single or partial exercise of any such power, right or remedy
preclude any other further exercise thereof or the exercise of any other power,
right or remedy.  The rights and remedies herein provided shall be cumulative
and nonexclusive of any rights or remedies provided by law.  Any waiver of
this Agreement shall be effective only in the specific instance and for the
specific purpose for which given.

 

(b)           No provision of this Agreement may be
amended, supplemented, modified or waived except in writing in accordance with
the provisions of this Section 14.1(b).  The Lender, the Required
Committed Banks, Borrower and the Administrative Agent, at the direction of the
Required Liquidity Banks, may enter into written modifications or waivers of
any provisions of this Agreement, provided, however, that no such modification
or waiver shall:

 

39

 

(i)            without
the consent of the Lender, each Committed Bank and each affected Liquidity
Bank, (A) extend the Liquidity Termination Date or the date of any payment or
deposit of Collections by Borrower or the Master Servicer, (B) reduce the rate
or extend the time of payment of Interest or any CP Costs (or any component of
Interest or CP Costs),  reduce any fee payable to the Administrative Agent
for the benefit of the Lender and the Committed Banks, (C) change the amount of
the principal of any Loan or the Aggregate Principal, (D) amend, modify or
waive any provision of the definition of Required Liquidity Banks or this Section
14.1(b), (E) consent to or permit the assignment or transfer by Borrower of
any of its rights and obligations under this Agreement, (F) change the
definition of “Eligible Receivable,” “Loss Reserve,” “Dilution Reserve,”
“Interest Reserve,” “Servicing Reserve,” “Servicing Fee Rate,” “Required
Reserve” or “Required Reserve Factor Floor” or (G) amend or modify any defined
term (or any defined term used directly or indirectly in such defined term)
used in clauses (A) through (G) above in a manner that would
circumvent the intention of the restrictions set forth in such clauses; or

 

(ii)           without
the written consent of the then Administrative Agent, amend, modify or waive
any provision of this Agreement if the effect thereof is to affect the rights
or duties of such Administrative Agent,

 

and any material amendment, waiver or other
modification of this Agreement shall require satisfaction of the Rating Agency
Condition.

 

Section 14.2         Notices.

 

Except as provided in
this Section 14.2, all communications and notices provided for hereunder
shall be in writing (including bank wire, telecopy or electronic facsimile
transmission or similar writing) and shall be given to the other parties hereto
at their respective addresses or telecopy numbers set forth on the signature
pages hereof or at such other address or telecopy number as such Person may
hereafter specify for the purpose of notice to each of the other parties
hereto.  Each such notice or other communication shall be effective (a) if
given by telecopy, upon the receipt thereof, (b) if given by mail, three (3)
Business Days after the time such communication is deposited in the mail with
first class postage prepaid or (c) if given by any other means, when received
at the address specified in this Section 14.2.  Borrower hereby
authorizes the Administrative Agent to effect Advances and Interest Period and
Interest Rate selections based on telephonic notices made by any Person whom
the Administrative Agent in good faith believes to be acting on behalf of
Borrower.  Borrower agrees to deliver promptly to the Administrative Agent
a written confirmation of each telephonic notice signed by an authorized
officer of Borrower; provided, however, the absence of such confirmation shall
not affect the validity of such notice.  If the written confirmation
differs from the action taken by the Administrative Agent, the records of the
Administrative Agent shall govern absent manifest error.

 

Section
14.3         Protection of
Administrative Agent’s Security Interest.

 

(a)           Borrower agrees that from time to
time, at its expense, it will promptly execute and deliver all instruments and
documents, and take all actions, that may be necessary or

 

40

 

desirable, or that the Administrative Agent may
request, to perfect, protect or more fully evidence the Administrative Agent’s
security interest in the Collateral, or to enable the Administrative Agent, the
Committed Banks or the Lender to exercise and enforce their rights and remedies
hereunder.  At any time, the Administrative Agent may, or the
Administrative Agent may direct Borrower or the Master Servicer to, notify the
Obligors of Receivables, at Borrower’s expense, of the security interests of
the Administrative Agent for the benefit of the Secured Parties under this
Agreement and may also direct that payments of all amounts due or that become
due under any or all Receivables be made directly to the Administrative Agent
or its designee.  Borrower or the Master Servicer (as applicable) shall,
at the request of the Lender or any Committed Bank, withhold the identity of
such Person in any such notification.

 

(b)           If any Loan Party fails to perform
any of its obligations hereunder, the Administrative Agent, the Committed Banks
or the Lender may (but shall not be required to) perform, or cause performance
of, such obligations, and the Administrative Agent’s, the Committed Banks’ or
the Lender’s costs and expenses incurred in connection therewith shall be
payable by Borrower as provided in Section 10.4.  Each Loan Party
irrevocably authorizes the Administrative Agent at any time and from time to
time in the sole discretion of the Administrative Agent, and appoints the
Administrative Agent as its attorney-in-fact, to act on behalf of such Loan
Party (i) to execute on behalf of Borrower as debtor and to file financing
statements necessary or desirable in the Administrative Agent’s sole discretion
to perfect and to maintain the perfection and priority of the interest of the
Secured Parties in the Receivables and (ii) to file a carbon, photographic or
other reproduction of this Agreement or any financing statement with respect to
the Receivables as a financing statement in such offices as the Administrative
Agent in its sole discretion deems necessary or desirable to perfect and to
maintain the perfection and priority of the Administrative Agent’s security
interest in the Collateral, for the benefit of the Secured Parties.  This
appointment is coupled with an interest and is irrevocable.  (A) each of
the Loan Parties hereby authorizes the Administrative Agent to file financing
statements and other filing or recording documents with respect to the
Receivables and Related Security (including any amendments thereto, or
continuation or termination statements thereof), without the signature or other
authorization of such Loan Party, in such form and in such offices as the
Administrative Agent reasonably determines appropriate to perfect or maintain
the perfection of the security interest of the Administrative Agent hereunder,
(B) each of the Loan Parties acknowledges and agrees that it is not authorized
to, and will not, file financing statements or other filing or recording
documents with respect to the Receivables or Related Security (including any
amendments thereto, or continuation or termination statements thereof), without
the express prior written approval by the Administrative Agent, consenting to
the form and substance of such filing or recording document, and (C) each of
the Loan Parties approves, authorizes and ratifies any filings or recordings
made by or on behalf of the Administrative Agent in connection with the
perfection of the security interests in favor of Borrower or the Administrative
Agent.

 

Section 14.4         Confidentiality.

 

(a)           Each Loan Party, each Committed Bank,
the Administrative Agent and the Lender shall maintain and shall cause each of
its employees and officers to maintain the confidentiality of this Agreement
and the other confidential or proprietary information with respect to each Loan
Party, the Administrative Agent, any Committed Bank and Blue Ridge and

 

41

 

their respective businesses obtained by it or them in
connection with the structuring, negotiating and execution of the transactions
contemplated herein, except that such Loan Party, the Administrative Agent, any
Committed Bank and the Lender and its officers and employees may disclose such
information to such Person’s respective external accountants and attorneys and
as required by any applicable law or order of any judicial or administrative
proceeding.

 

(b)           Anything herein to the contrary
notwithstanding, each Loan Party hereby consents to the disclosure of any
nonpublic information with respect to it (i) to the Administrative Agent, the
Committed Banks, the Liquidity Banks or Blue Ridge by each other, (ii) by the
Administrative Agent, any Committed Bank or the Lender to any prospective or
actual assignee or participant of any of them who executes a confidentiality
agreement for the benefit of the applicable Loan Party on terms comparable to
those required of the Administrative Agent, the Lender and any Committed Bank
hereunder with respect to such disclosed information, (iii) by the
Administrative Agent to any rating agency, Commercial Paper dealer or provider
of a surety, guaranty or credit or liquidity enhancement to Blue Ridge or any
entity organized for the purpose of purchasing, or making loans secured by,
financial assets for which Wachovia acts as the administrative agent and (iv)
to any officers, directors, employees, outside accountants and attorneys of any
of the foregoing, provided that each such Person is informed of the
confidential nature of such information and in the case of any Person referred
to in clause (iii), the Administrative Agent shall use reasonable efforts to
cause each such Person to agree to keep such information confidential.  In
addition, the Committed Banks, the Lender and the Administrative Agent may
disclose any such nonpublic information with respect to any Loan Party to the
extent required pursuant to any law, rule, regulation, direction, request or
order of any judicial, administrative or regulatory authority or proceedings
with competent jurisdiction (whether or not having the force or effect of law).

 

Section 14.5         Bankruptcy Petition.

 

Borrower, the Master
Servicer, the Administrative Agent, each Committed Bank and each Liquidity Bank
hereby covenants and agrees that, prior to the date that is one year and one
day after the payment in full of all outstanding senior indebtedness of Blue
Ridge, it will not institute against, or join any other Person in instituting
against, Blue Ridge any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or other similar proceeding under the laws of the
United States or any state of the United States.

 

Section 14.6         Limitation of Liability.

 

Except with respect to
any claim arising out of the willful misconduct or gross negligence of Blue
Ridge, the Administrative Agent, any Committed Bank or any Liquidity Bank, no
claim may be made by any Loan Party or any other Person against Blue Ridge, the
Administrative Agent, any Committed Bank or any Liquidity Bank or their
respective Affiliates, directors, officers, employees, attorneys or agents for
any special, indirect, consequential or punitive damages in respect of any
claim for breach of contract or any other theory of liability arising out of or
related to the transactions contemplated by this Agreement, or any act,
omission or event occurring in connection therewith; and each Loan Party hereby
waives, releases, and agrees not to sue upon any claim for any such damages,
whether or not accrued and whether or not known or suspected to exist in its
favor.

 

42

 

Section 14.7         CHOICE OF LAW.

 

THIS AGREEMENT SHALL BE
GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OTHER THAN
SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW.

 

Section 14.8         CONSENT TO JURISDICTION.

 

EACH PARTY TO THIS
AGREEMENT HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY
UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK, IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
DOCUMENT EXECUTED BY SUCH PERSON PURSUANT TO THIS AGREEMENT, AND EACH SUCH
PARTY HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES
ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN
INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE
AGENT, THE COMMITTED BANKS OR THE LENDER TO BRING PROCEEDINGS AGAINST ANY LOAN
PARTY IN THE COURTS OF ANY OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY
ANY LOAN PARTY AGAINST THE ADMINISTRATIVE AGENT, THE COMMITTED BANKS OR THE
LENDER OR ANY AFFILIATE OF THE ADMINISTRATIVE AGENT, THE LENDER OR ANY
COMMITTED BANK INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING
OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED
BY SUCH LOAN PARTY PURSUANT TO THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT
IN NEW YORK, NEW YORK.

 

Section 14.9         WAIVER OF JURY TRIAL.

 

TO THE EXTENT PERMITTED
BY APPLICABLE LAW, EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER
SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO,
OR CONNECTED WITH THIS AGREEMENT, ANY DOCUMENT EXECUTED BY ANY LOAN PARTY
PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR
THEREUNDER.

 

Section 14.10       Integration; Binding Effect; Survival
of Terms.

 

(a)           This Agreement and each other
Transaction Document contain the final and complete integration of all prior
expressions by the parties hereto with respect to the subject matter hereof and
shall constitute the entire agreement among the parties hereto with respect to
the subject matter hereof superseding all prior oral or written understandings.

 

43

 

(b)           This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and permitted assigns (including any trustee in bankruptcy).  This
Agreement shall create and constitute the continuing obligations of the parties
hereto in accordance with its terms and shall remain in full force and effect
until terminated in accordance with its terms; provided, however, that the
rights and remedies with respect to (i) any breach of any representation and
warranty made by any Loan Party pursuant to Article V, (ii) the indemnification
and payment provisions of Article X, and Sections 14.5 and 14.6
shall be continuing and shall survive any termination of this Agreement.

 

Section
14.11       Counterparts; Severability;
Section References.

 

This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which when taken together shall constitute one and the same
Agreement.  Delivery of an executed counterpart of a signature page by
facsimile shall be effective as delivery of a manually executed counterpart of
this Agreement.  Any provisions of this Agreement which are prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.  Unless otherwise expressly indicated, all
references herein to “Article,” “Section,” “Schedule” or “Exhibit” shall mean
articles and sections of, and schedules and exhibits to, this Agreement.

 

[signature pages
follow]

 

44

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed and delivered by their
duly authorized officers as of the date hereof.

 

	
   

  	
  LP RECEIVABLES
  CORPORATION

  	
   

  
	
   

  	
  as Borrower

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
  LP Receivables
  Corporation

  	
   

  
	
   

  	
  c/o Louisiana-Pacific
  Corporation

  	
   

  
	
   

  	
  805 S.W. Broadway

  	
   

  
	
   

  	
  Portland, OR 97205-3033

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LOUISIANA-PACIFIC
  CORPORATION

  	
   

  
	
   

  	
  as Master Servicer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
  Louisiana-Pacific
  Corporation

  	
   

  
	
   

  	
  805 S.W. Broadway

  	
   

  
	
   

  	
  Portland, OR 97205-3033

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

 

	
   

  	
  BLUE RIDGE ASSET
  FUNDING CORPORATION

  
	
   

  	
   

  
	
   

  	
  BY:  WACHOVIA
  BANK, N.A.,

  
	
   

  	
  as Attorney-In-Fact

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
  Blue Ridge Asset
  Funding Corporation

  
	
   

  	
  c/o Wachovia Bank,
  N.A., as Administrative Agent

  
	
   

  	
  100 North Main Street

  
	
   

  	
  Winston-Salem, NC 27150

  
	
   

  	
  Telephone:  (336)
  735-6097

  
	
   

  	
  Facsimile:  (336)
  735-6099

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK,
  N.A.,

  
	
   

  	
  as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
  Wachovia Bank, N.A.

  
	
   

  	
  191 Peachtree Street,
  N.E.

  
	
   

  	
  Atlanta, GA 30303

  
	
   

  	
  Telephone:  (404)
  332-1398

  
	
   

  	
  Facsimile: 
  (404) 332-5152

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

	
   

  	
  WACHOVIA BANK,
  N.A.,

  
	
   

  	
  as Committed Bank

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
  Wachovia Bank, N.A.

  
	
   

  	
  191 Peachtree Street,
  N.E.

  
	
   

  	
  Atlanta, GA 30303

  
	
   

  	
  Telephone:  (404)
  332-1398

  
	
   

  	
  Facsimile: 
  (404) 332-5152

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $125,000,000.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

 

EXHIBIT I

 

DEFINITIONS

 

As used in this Agreement, the following terms shall
have the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):

 

Adjusted Dilution Ratio:  At any time, the rolling average
of the Dilution Ratio for the 12 Calculation Periods then most recently ended.

 

Additional Committed Bank:  As defined in Section 4.7(a).

 

Advance:  A borrowing hereunder consisting
of the aggregate amount of the several Loans made on the same Borrowing Date.

 

Adverse Claim:  A lien, security interest, charge
or encumbrance, or other right or claim in, of or on any Person’s assets or
properties in favor of any other Person.

 

Administrative Agent:  As defined in the preamble to
this Agreement.

 

Administrative Agent’s
Account: 
Account #8735-098787 at Wachovia Bank, N.A., ABA #053100494.

 

Advance Account:  A cash collateral account in the
name of Administrative Agent and maintained by a Committed Bank at an Eligible
Institution (which may include such Committed Bank, so long as such Committed
Bank is an Eligible Institution) and which is established to fund Advances
hereunder by such Committed Bank pursuant to Section 4.7.

 

Advance Account Deposit:  As defined in Section 4.7(b).

 

Advance Account Party:  As defined in Section 4.7(f).

 

Affiliate:  With respect to any Person, any
other Person directly or indirectly controlling, controlled by, or under direct
or indirect common control with, such Person or any Subsidiary of such
Person.  A Person shall be deemed to control another Person if the
controlling Person owns 10% or more of any class of voting securities of the
controlled Person or possesses, directly or indirectly, the power to direct or
cause the direction of the management or policies of the controlled Person,
whether through ownership of stock, by contract or otherwise.

 

Aggregate Commitment:  $125,000,000.

 

Aggregate Principal:  On any date of determination, the
aggregate outstanding principal amount of all Advances outstanding on such
date.

 

Aggregate Reduction:  As defined in Section 1.3.

 

I-1

 

Aggregate Unpaids:  At any time, an amount equal to
the sum of (i) the Aggregate Principal, plus (ii) all Recourse Obligations
(whether due or accrued) at such time.

 

Agreement:  This Credit and Security
Agreement, as it may be amended or modified and in effect from time to time.

 

Alternate Base Rate:  For any day, the rate per annum equal to the higher as of such
day of (i) the Prime Rate, or (ii) one-half of one percent (0.50)% above the
Federal Funds Effective Rate.  For purposes of determining the Alternate
Base Rate for any day, changes in the Prime Rate or the Federal Funds Effective
Rate shall be effective on the date of each such change.

 

Alternate Base Rate Loan:  A Loan which bears interest at
the Alternate Base Rate or the Default Rate.

 

Amortization Date:  The earliest to occur of (i) the
Business Day immediately prior to the occurrence of an Event of Bankruptcy with
respect to any Loan Party, (ii) the Business Day specified in a written notice
from the Administrative Agent following the occurrence of any other
Amortization Event, (iii) the date which is 1 Business Day after the
Administrative Agent’s receipt of written notice from Borrower that it wishes
to terminate the facility evidenced by this Agreement and (iv) November 15,
2004.

 

Amortization Event:  As defined in Article IX.

 

Assignment and Acceptance:  An assignment and acceptance
entered into by a Committed Bank and an Eligible Assignee and accepted by the
Administrative Agent in substantially the form of Exhibit XIII.

 

Authorized Officer:  With respect to any Person, its
president, corporate controller, treasurer, assistant treasurer, chief
financial officer or chief executive officer.

 

Bank Funding:  The portion of the Aggregate
Principal that is funded by the Committed Banks pursuant to Section 1.1(a).

 

Blue Ridge:  As defined in the preamble to
this Agreement.

 

Blue Ridge Termination
Date: 
November 15, 2002.

 

Borrower:  As defined in the preamble to
this Agreement.

 

Borrowing Base:  On any date of determination, the
Net Pool Balance as of the last day of the period covered by the most recent
Monthly Report, minus the Required Reserve as of the last day of the
period covered by the most recent Monthly Report, minus Deemed
Collections that have occurred since the most recent Cut-Off Date to the extent
that such Deemed Collections exceed the Dilution Reserve, minus the
Rebate Reserve as of the most recent Cut-Off Date.

 

Borrowing Date:  A Business Day on which an
Advance is made hereunder.

 

Borrowing Limit:  As defined in Section 1.1(a).

 

I-2

 

Borrowing Notice:  As defined in Section 1.2.

 

Broken Funding Costs:  For any CP Rate Loan or LIBO Rate
Loan which:  (i) in the case of a CP Rate Loan, has its principal reduced
without compliance by Borrower with the notice requirements hereunder, (ii) in
the case of a CP Rate Loan, is assigned under the Liquidity Agreement, or (iii)
in the case of a LIBO Rate Loan, is terminated or reduced prior to the last day
of its Interest Period, an amount equal to the excess, if any, of (A) the CP
Costs or Interest (as applicable) that would have accrued on such Loan during
the remainder of the Interest Period or the tranche period for Commercial Paper
determined by the Administrative Agent to relate to such Loan (as applicable)
subsequent to the date of such reduction, assignment or termination (or in
respect of clause (ii) above, the date such Aggregate Reduction was
designated to occur pursuant to the Reduction Notice) of the principal of such
Loan if such reduction, assignment or termination had not occurred or such
Reduction Notice had not been delivered, over (B) the sum of (x) to the extent
all or a portion of such principal is allocated to another Loan, the amount of
CP Costs or Interest actually accrued during the remainder of such period on
such principal for the new Loan, and (y) to the extent such principal is not
allocated to another Loan, the income, if any, actually received during the
remainder of such period by the holder of such Loan from investing the portion
of such principal not so allocated.  In the event that the amount referred
to in clause (B) exceeds the amount referred to in clause (A),
the Lender, the Liquidity Bank or Committed Bank, as the case may be, agree to
pay to Borrower the amount of such excess.  If any CP Rate Loan or LIBO
Rate Loan does not become subject to an Aggregate Reduction following the
delivery of any Reduction Notice, the applicable Broken Funding Costs shall be
an amount equal to all costs incurred as a result of the failure to make such
Aggregate Reduction which are not recovered through the payment of interest
hereunder.  All Broken Funding Costs shall be due and payable hereunder
upon demand.

 

Business Day:  Any day on which banks are not
authorized or required to close in New York, New York or Atlanta, Georgia, and
The Depository Trust Company of New York is open for business, and, if the
applicable Business Day relates to any computation or payment to be made with
respect to the LIBO Rate, any day on which dealings in dollar deposits are
carried on in the London interbank market.

 

Calculation Period:  A Fiscal Month.

 

Cash Discount Reserve:  The highest Cash Discount Reserve
Percentage over the past 12 Calculation Periods.

 

Cash Discount Reserve
Percentage: 
As of any Cut-Off Date, the ratio (expressed as a percentage), computed by
dividing the aggregate amount of contractual cash discounts given by the
Originators during the Calculation Period ending on such Cut-Off Date by the
aggregate sales generated by the Originators during the immediately preceding
Calculation Period.

 

Change of Control:  (a)  Louisiana-Pacific shall
cease to own 100% of the outstanding equity interests of Borrower free and
clear of any Adverse Claim or, (b) any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
excluding any employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan),

 

I-3

 

becomes the “beneficial owner” (as defined in Rules
13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person
or group shall be deemed to have “beneficial ownership” of all securities that
such person or group has the right to acquire (such right, an “option right”),
whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of 30%
or more of the Stock of any Originator or the Performance
Guarantor entitled to vote for members of the board of directors or equivalent
governing body of such Person on a partially diluted basis (i.e., taking into
account all such securities that such person or group has the right to acquire
pursuant to any option rights in both the dividend and divisor used in
calculating such percentage); or (c) during any period of 12 consecutive
months, a majority of the members of the board of directors or other equivalent
governing body of any Originator or the Performance Guarantor cease to be
composed of individuals (i) who were members of that board or equivalent
governing body on the first day of such period, (ii) whose election or
nomination to that board or equivalent governing body was approved by
individuals referred to in clause (i) above constituting at the time of such
election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or other
equivalent governing body was approved by individuals referred to in clauses
(i) and (ii) above constituting at the time of such election or nomination at
least a majority of that board or equivalent governing body.

 

Claim:  As defined in Section 10.2(a).

 

Closing Date:  November 15, 2001.

 

Collateral:  As defined in Section 13.1.

 

Collection Account:  Each concentration account,
depositary account, lock-box account or similar account in which any
Collections are collected or deposited and which is listed on Exhibit IV
as such exhibit may be updated from time to time in accordance with Section
7.2(b).

 

Collection Account
Agreement: 
An agreement substantially in the form of Exhibit VI among an
Originator, Master Servicer, Borrower, the Administrative Agent and a
Collection Bank (or such other form as the Administrative Agent shall approve
in its sole discretion).

 

Collection Bank:  At any time, any of the banks
holding one or more Collection Accounts.

 

Collection Notice:  A notice, in substantially the
form of Annex A to Exhibit VI, from the Administrative Agent to a
Collection Bank.

 

Collections:  With respect to any Receivable,
all cash collections and other cash proceeds in respect of such Receivable,
including, without limitation, all Finance Charges or other related amounts
accruing in respect thereof and all cash proceeds of Related Security with
respect to such Receivable.

 

Commercial Paper:  Promissory notes of Blue Ridge
issued by Blue Ridge in the commercial paper market.

 

I-4

 

Commitment:  As to each Committed Bank, the
dollar amount of its commitment to make Advances under this Agreement, as set
forth on the signature pages hereto, which Commitments in the aggregate shall
equal the Borrowing Limit.

 

Committed Bank:  As defined in the preamble.

 

Committed Bank Maturity
Date:  With
respect to any Advance Account Deposit, (i) if established in respect of a
Non-Renewing Committed Bank, the earlier of the Amortization Date and the close
of business of the Administrative Agent on the third anniversary of the Closing
Date or (ii) if established in respect of a Downgraded Committed Bank, the earlier
of the Amortization Date and such Committed Bank’s Commitment Termination Date
or, if such Committed Bank is or becomes a Non-Renewing Committed Bank, the
earlier of (i) the Amortization Date and (ii) the close of business of the
Administrative Agent on the third anniversary of the Closing Date.

 

Commitment Termination
Date:  With
respect to each Committed Bank, November 15, 2004 or such later date as may be
agreed in writing from time to time by Borrower, the Master Servicer, the
Lender, the Administrative Agent and such Committed Bank.

 

Contingent Obligation:  Of a Person means any agreement,
undertaking or arrangement by which such Person assumes, guarantees, endorses,
contingently agrees to purchase or provide funds for the payment of, or otherwise
becomes or is contingently liable upon, the obligation or liability of any
other Person, or agrees to maintain the net worth or working capital or other
financial condition of any other Person, or otherwise assures any creditor of
such other Person against loss, including, without limitation, any comfort
letter, operating agreement, take-or-pay contract or application for a letter
of credit.

 

Contract:  With respect to any Receivable,
any and all instruments, agreements, invoices or other writings pursuant to
which such Receivable arises or which evidences such Receivable.

 

CP Costs:  For each day, the sum of (1)
discount or interest accrued on Pooled Commercial Paper on such day, plus (2)
any and all accrued commissions in respect of placement agents and Commercial
Paper dealers, and issuing and paying agent fees incurred, in respect of such
Pooled Commercial Paper for such day, plus (3) other costs associated with
funding small or odd-lot amounts with respect to all receivable purchase or
other financing facilities which are funded by Pooled Commercial Paper for such
day, minus (4) any accrual of income net of expenses received on such day from
investment of collections received under all receivable purchase or financing
facilities funded substantially with Pooled Commercial Paper, minus (5) any
payment received on such day net of expenses in respect of Broken Funding Costs
(or similar costs) related to the prepayment of any investment of Blue Ridge
pursuant to the terms of any receivable purchase or financing facilities funded
substantially with Pooled Commercial Paper.  In addition to the foregoing
costs, if Borrower shall request any Advance during any period of time
determined by the Administrative Agent in its sole discretion to result in
incrementally higher CP Costs applicable to such Advance, the principal
associated with any such Advance shall, during such period, be deemed to be
funded by Blue Ridge in a special pool (which may include capital associated
with other receivable purchase or financing facilities) for purposes of

 

I-5

 

determining such additional CP Costs applicable only to such special
pool and charged each day during such period against such principal.

 

CP Rate Loan:  Each Loan
of Blue Ridge prior to the time, if any, when (i) it is refinanced with a
Liquidity Funding pursuant to the Liquidity Agreement, or (ii) an Amortization
Event occurs and the accrual of Interest thereon at the Default Rate commences.

 

Credit and Collection Policy:  Borrower’s
credit and collection policies and practices relating to Contracts and
Receivables existing on the date hereof and summarized in Exhibit VII
hereto, as modified from time to time in accordance with this Agreement.

 

Cut-Off Date:  The last
day of a Calculation Period.

 

Days Sales Outstanding:  As
of any day, an amount equal to the product of (i) the sum of the actual number
of days in the preceding three (3) Calculation Periods, multiplied by (ii) the
amount obtained by dividing (A) the aggregate outstanding balance of
Receivables as of the most recent Cut-Off Date, by (B) the aggregate amount of
Receivables created during the three (3) Calculation Periods including and
immediately preceding such Cut-Off Date.

 

Deemed Collections: 
Collections deemed received by the Borrower under Section 1.4(a).

 

Default Horizon Ratio:  As
of any Cut-Off Date, the ratio (expressed as a decimal) computed by dividing
(i) the aggregate sales generated by the Originators during the three
Calculation Periods ending on such Cut-Off Date, by (ii) the Net Pool Balance
as of such Cut-off Date.

 

Default Rate:  A rate
per annum equal to the sum of (i) the Alternate Base Rate plus (ii) 2.00%,
changing when and as the Alternate Base Rate changes.

 

Default Ratio:  As of any
Cut-Off Date, the ratio (expressed as a percentage) computed by dividing (i)
the total amount of Receivables which became Defaulted Receivables during the
Calculation Period that includes such Cut-Off Date, by (ii) the aggregate sales
generated by the Originators during the Calculation Period occurring three
months prior to the Calculation Period ending on such Cut-Off Date.

 

Defaulted Receivable:  A
Receivable:  (i) as to which the Obligor
thereof has suffered an Event of Bankruptcy; (ii) which, consistent with the
Credit and Collection Policy, would be written off Borrower’s books as
uncollectible; or (i) as to which any payment, or part thereof, remains unpaid
for 61 days or more from the original due date for such payment.

 

Delinquency Ratio:  At any
time, a percentage equal to (i) the aggregate Outstanding Balance of all
Receivables that were Delinquent Receivables at such time divided by (ii) the
aggregate Outstanding Balance of all Receivables at such time.

 

Delinquent Receivable:  A
Receivable as to which any payment, or part thereof, remains unpaid for 31-60
days from the original due date for such payment.

 

I-6

 

Dilution:  The
amount of any reduction or cancellation of the Outstanding Balance of a
Receivable as described in Section 1.4(a) other than any such reduction
or cancellation resulting for any cash discount, rebate or refund.

 

Dilution Horizon Ratio:  As
of any Cut-off Date, a ratio (expressed as a decimal), computed by dividing (i)
the aggregate sales generated by the Originators during the one Calculation
Period ending on such Cut-Off Date, by (ii) the Net Pool Balance as of such
Cut-Off Date.

 

Dilution Ratio:  As of any Cut-Off Date, a ratio (expressed
as a percentage), computed by dividing (i) the total amount of decreases in
Outstanding Balances due to Dilutions during the Calculation Period ending on
such Cut-Off Date, by (ii) the aggregate sales generated by the Originators
during the Calculation Period one Calculation Period prior to the current
Calculation Period ending on such Cut-Off Date.

 

Dilution Reserve:  For any
Calculation Period, the product (expressed as a percentage) of:

 

(i)            the sum of (A) two (2) times
the Adjusted Dilution Ratio as of the immediately preceding Cut-Off Date, plus
(B) the Dilution Volatility Component as of the immediately preceding Cut-Off
Date, times

 

(ii)           the Dilution Horizon Ratio as of the immediately preceding
Cut-Off Date.

 

Dilution Volatility
Component:  For any
Calculation Period, as of the most recent Cut-Off Date, the product (expressed
as a percentage) of (i) the difference between (A) the highest three (3)-month
rolling average Dilution Ratio over the past 12 Calculation Periods and (B) the
Adjusted Dilution Ratio, and (ii) a fraction, the numerator of which is equal
to the amount calculated in (i)(A) of this definition and the denominator of
which is equal to the amount calculated in (i)(B) of this definition.

 

Downgraded Committed Bank:  As defined in Section 4.6.

 

Downgraded Liquidity Bank:  A Liquidity Bank which has been the subject
of a Downgrading Event.

 

Downgrading Event:  With respect to any Person means the
lowering of the rating with regard to the short-term securities of such Person
to below (i) A-1 by S&P, or (ii) P-1 by Moody’s.

 

Eligible Assignee:  A
commercial bank (i) having a combined capital and surplus of at least
$250,000,000 (ii) with a rating of its short-term securities equal to or higher
than (x) A-1 by S&P and (y) P-1 by Moody’s and (iii) that is reasonably
acceptable to Louisiana-Pacific, provided such consent shall not be required
following the occurrence of an Incipient Event or an Amortization Event.

 

Eligible Institution:  A depository
institution or trust company, organized under the laws of the United States or
any state thereof, that (i) is a member of the Federal Deposit Insurance
Corporation, (ii) has a combined capital and surplus of not less than
$250,000,000 and (iii) has (or is a Subsidiary of a Person that has) a
long-term unsecured debt rating of at least A or better by S&P and A2 or
better by Moody’s.

 

I-7

 

Eligible Receivable:  At any
time, a Receivable:

 

(i)            the Obligor of which (A) if a
natural person, is a resident of the United States or, if a corporation or
other business organization, is organized under the laws of the United States
or any political subdivision thereof and has its chief executive office in the
United States; (B) is not an Affiliate of any of the parties hereto; and (C) is
not a government or a governmental subdivision or agency,

 

(ii)           which is not a Defaulted Receivable
or owing from an Obligor as to which more than 50% of the aggregate Outstanding
Balance of all Receivables owing from such Obligor are Defaulted Receivables,

 

(iii)          which was not a Defaulted Receivable
or a Delinquent Receivable on the date on which it was acquired by Borrower
from the applicable Originator,

 

(iv)          which by its terms is due and payable
within 61 days of the original billing date therefor and has not had its
payment terms extended more than once,

 

(v)           which is an “account” or a “payment
intangible” within the meaning of Section 9-102, of the UCC of all applicable
jurisdictions,

 

(vi)          which is denominated and payable only in
United States dollars in the United States,

 

(vii)         which arises under a Contract which, together
with such Receivable, is in full force and effect and constitutes the legal,
valid and binding obligation of the related Obligor enforceable against such
Obligor in accordance with its terms subject to no offset, counterclaim or
other defense,

 

(viii)        which arises under a Contract which (A) does
not require the Obligor under such Contract to consent to the transfer, sale,
pledge or assignment of the rights and duties of the applicable Originator or
any of its assignees under such Contract and (B) does not contain a
confidentiality provision that purports to restrict the ability of the Lender
or the Committed Banks to exercise their rights under this Agreement,
including, without limitation, its right to review the Contract,

 

(ix)           which arises under a Contract that contains an
obligation to pay a specified sum of money, contingent only upon the sale of
goods or the provision of services by the applicable Originator,

 

(x)            which, together with the Contract related
thereto, does not contravene any law, rule or regulation applicable thereto
(including, without limitation, any law, rule and regulation relating to truth
in lending, fair credit billing, fair credit reporting, equal credit
opportunity, fair debt collection practices and privacy) and with respect to
which no part of the Contract related thereto is in violation of any such law,
rule or regulation,

 

I-8

 

(xi)           which satisfies in all material
respects all applicable requirements of the Credit and Collection Policy except
to the extent such failure to comply could have a
Material Adverse Effect,

 

(xii)          which was generated in the ordinary
course of the applicable Originator’s business,

 

(xiii)         which arises solely from the sale of
goods or the provision of services to the related Obligor by the applicable
Originator, and not by any other Person (in whole or in part),

 

(xiv)        which is not subject to any dispute,
counterclaim, right of rescission, set-off, counterclaim or any other defense
(including defenses arising out of violations of usury laws) of the applicable
Obligor against the applicable Originator or any other Adverse Claim, and the
Obligor thereon holds no right as against such Originator to cause such Originator
to repurchase the goods or merchandise the sale of which shall have given rise
to such Receivable (except with respect to sale discounts effected pursuant to
the Contract, or defective goods returned in accordance with the terms of the
Contract); provided, however, that if such dispute, offset, counterclaim or
defense affects only a portion of the Outstanding Balance of such Receivable,
then such Receivable may be deemed an Eligible Receivable to the extent of the
portion of such Outstanding Balance which is not so affected, and provided,
further, that Receivables of any Obligor which has any accounts payable by the
applicable Originator or by a wholly-owned Subsidiary of such Originator (thus
giving rise to a potential offset against such Receivables) may be treated as
Eligible Receivables to the extent that the Obligor of such Receivables has
agreed pursuant to a written agreement in form and substance satisfactory to
the Administrative Agent, that such Receivables shall not be subject to such
offset,

 

(xv)         as to which the applicable Originator
has satisfied and fully performed all obligations on its part with respect to
such Receivable required to be fulfilled by it, and no further action is
required to be performed by any Person with respect thereto other than payment
thereon by the applicable Obligor,

 

(xvi)        as to which each of the representations
and warranties contained in Sections 5.1(i), (j), (r), (s),
and (t) is true and correct, and

 

(xvii)       all right, title and interest to and in
which has been validly transferred by the applicable Originator directly to
Borrower under and in accordance with the Receivables Sale Agreement, as to
which all conditions to the transfer by the Originator thereof under the
Receivables Sale Agreement have been satisfied, as to which all representations
and warranties made by the Originator thereof are true and correct in, under
and in accordance with the Receivables Sale Agreement and Borrower has good and
marketable title thereto free and clear of any Adverse Claim.

 

ERISA:  The Employee
Retirement Income Security Act of 1974, as amended from time to time, and any
rule or regulation issued thereunder.

 

I-9

 

ERISA Affiliate:  Any trade
or business (whether or not incorporated) under common control with Performance
Guarantor within the meaning of Section 414(b) or (c) of the Tax Code (and
Sections 414(m) and (o) of the Tax Code for purposes of provisions relating to
Section 412 of the Tax Code).

 

Event of Bankruptcy:  Shall be
deemed to have occurred with respect to a Person if either:

 

(i)            a case or other proceeding shall be
commenced, without the application or consent of such Person, in any court,
seeking the liquidation, reorganization, debt arrangement, dissolution, winding
up, or composition or readjustment of debts of such Person, the appointment of
a trustee, receiver, custodian, liquidator, assignee, sequestrator or the like
for such Person or all or substantially all of its assets, or any similar
action with respect to such Person under any law relating to bankruptcy,
insolvency, reorganization, winding up or composition or adjustment of debts,
and such case or proceeding shall continue undismissed, or unstayed and in
effect, for a period of 60 consecutive days; or an order for relief in respect
of such Person shall be entered in an involuntary case under the federal
bankruptcy laws or other similar laws now or hereafter in effect; or

 

(ii)           such Person shall commence a
voluntary case or other proceeding under any applicable bankruptcy, insolvency,
reorganization, debt arrangement, dissolution or other similar law now or
hereafter in effect, or shall consent to the appointment of or taking
possession by a receiver, liquidator, assignee, trustee (other than a trustee under
a deed of trust, indenture or similar instrument), custodian, sequestrator (or
other similar official) for, such Person or for any substantial part of its
property, or shall make any general assignment for the benefit of creditors, or
shall be adjudicated
insolvent, or admit in writing its inability to pay its debts generally as they
become due, or, if a corporation or similar entity, its board of directors
shall vote to implement any of the foregoing.

 

Existing Commitment Termination Date:  As
defined in Section 4.7(a).

 

Facility Account: 
Borrower’s account no. 6261-003003 at Wachovia.

 

Facility Termination Date:  The
earlier of (i) the Committed Bank Termination Date and (ii) the Amortization
Date.

 

Federal Bankruptcy Code: 
Title 11 of the United States Code entitled “Bankruptcy,” as amended and
any successor statute thereto.

 

Federal Funds Effective Rate:  For
any period, a fluctuating interest rate per annum for each day during such
period equal to (i) the weighted average of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by
federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the preceding Business Day) by the Federal Reserve Bank of
New York in the Composite Closing Quotations for U.S. Government Securities; or
(ii) if such rate is not so published for any day which is a Business Day, the
average of the quotations at approximately 11:30 a.m. (New York time) for such
day on such transactions received by the Administrative Agent from three
federal funds brokers of recognized standing selected by it.

 

I-10

 

Fee Letter:  That certain letter agreement
dated as of the date hereof among Borrower, Louisiana-Pacific and the
Administrative Agent, as it may be amended or modified and in effect from time
to time.

 

Final Payout Date:  The date on which all Aggregate
Unpaids have been paid in full and the Aggregate Commitment has been
terminated.

 

Finance Charges:  With respect to a Contract, any
finance, interest, late payment charges or similar charges owing by an Obligor
pursuant to such Contract.

 

Fiscal Month:  A fiscal month of
Louisiana-Pacific and its Subsidiaries as described on Exhibit XIV, as
such exhibit may be updated pursuant to Section 7.1(b)(viii); provided,
if Louisiana-Pacific fails to timely deliver an updated Exhibit XIV, a
Fiscal Month not covered by the existing Exhibit XIV shall be deemed to
be a calendar month until such date as an updated Exhibit XIV is
provided to the Administrative Agent.

 

Funding Agreement:  (i) this Agreement, (ii) the
Liquidity Agreement and (iii) any other agreement or instrument executed by any
Funding Source with or for the benefit of Blue Ridge.

 

Funding Source:  (i) any Liquidity Bank or (ii)
any insurance company, bank or other funding entity providing liquidity, credit
enhancement or back-up purchase support or facilities to Blue Ridge.

 

GAAP:  Generally accepted accounting
principles in effect in the United States of America as of the date of this
Agreement.

 

Incipient Event:  An event or circumstance which
the Administrative Agent determines in its sole discretion may either (i)
materially and adversely affect any portion or all of the Collateral or the
financial prospects of any Loan Party, Performance Guarantor or any Originator
or (ii) otherwise have a Material Adverse Effect.

 

Indebtedness:  Of a Person means such Person’s
(i) obligations for borrowed money, (ii) obligations representing the deferred
purchase price of property or services (other than accounts payable arising in
the ordinary course of such Person’s business payable on terms customary in the
trade), (iii) obligations, whether or not assumed, secured by liens or payable
out of the proceeds or production from property now or hereafter owned or
acquired by such Person, (iv) obligations which are evidenced by notes,
acceptances, or other instruments, (v) capitalized lease obligations, (vi) net
liabilities under interest rate swap, exchange or cap agreements, (vii)
Contingent Obligations and (viii) liabilities in respect of unfunded vested
benefits under plans covered by Title IV of ERISA.

 

Independent Director:  A member of the Board of
Directors of Borrower who is not at such time, and has not been at any time during
the preceding five (5) years:  (i) a director, officer, employee or
affiliate of Performance Guarantor, any Originator or any of their respective
Subsidiaries or Affiliates (other than Borrower), or (ii) the beneficial owner
(at the time of such individual’s appointment as an Independent Director or at
any time thereafter while serving as an Independent Director) of any of the
outstanding common shares of Borrower, any Originator, or any of their
respective Subsidiaries or Affiliates, having general voting rights.

 

I-11

 

Interest:  For each respective Interest
Period relating to Loans funded with a Liquidity Funding or a Bank Funding, an
amount equal to the product of the applicable Interest Rate for each Loan
multiplied by the principal of such Loan for each day elapsed during such
Interest Period, annualized on a 360 day basis.

 

Interest Period:  With respect to any Loan held by
a Liquidity Bank or a Committed Bank:

 

(i)            if
Interest for such Loan is calculated on the basis of the LIBO Rate, a period of
one, two, three or six months, or such other period as may be mutually
agreeable to the Administrative Agent and Borrower, commencing on a Business
Day selected by Borrower or the Administrative Agent pursuant to this
Agreement.  Such Interest Period shall end on the day in the applicable
succeeding calendar month which corresponds numerically to the beginning day of
such Interest Period, provided, however, that if there is no such numerically
corresponding day in such succeeding month, such Interest Period shall end on
the last Business Day of such succeeding month; or

 

(ii)           if
Interest for such Loan is calculated on the basis of the Alternate Base Rate, a
period commencing on a Business Day selected by Borrower and agreed to by the
Administrative Agent, provided that no such period shall exceed one month.

 

If any Interest Period would end on a day which is not
a Business Day, such Interest Period shall end on the next succeeding Business
Day, provided, however, that in the case of Interest Periods corresponding to
the LIBO Rate, if such next succeeding Business Day falls in a new month, such
Interest Period shall end on the immediately preceding Business Day.  In
the case of any Interest Period for any Loan which commences before the
Amortization Date and would otherwise end on a date occurring after the
Amortization Date, such Interest Period shall end on the Amortization
Date.  The duration of each Interest Period which commences after the
Amortization Date shall be of such duration as selected by the Administrative
Agent.

 

Interest Rate:  With respect to each Loan of the
Liquidity Banks and the Committed Banks, the LIBO Rate, the Alternate Base Rate
or the Default Rate, as applicable.

 

Interest Reserve:  For any Calculation Period, the
product (expressed as a percentage) of (i) 1.5 times (ii) the Alternate
Base Rate as of the immediately preceding Cut-Off Date times (iii) a
fraction the numerator of which is the highest Days Sales Outstanding for the
most recent 12 Calculation Periods and the denominator of which is 360.

 

Lender:  Blue Ridge.

 

LIBO Rate:  For any Interest Period, the rate
per annum determined on the basis of the offered rate for deposits in U.S.
dollars of amounts equal or comparable to the principal amount of the related
Loan offered for a term comparable to such Interest Period, which rates appear
on a Bloomberg L.P. terminal, displayed under the address “US0001M
<Index> Q <Go>“ effective as of 11:00 A.M., London time, two Business
Days prior to the first day of such Interest Period, provided that if no such
offered rates appear on such page, the LIBO Rate for such Interest Period will
be the arithmetic average (rounded upwards, if necessary, to the next higher
1/100th of 1%) of rates quoted by not less than two major banks in New York,
New York, selected by the Administrative Agent, at approximately 10:00 a.m.(New
York time), two Business Days prior to

 

I-12

 

the first day of such Interest Period, for deposits in
U.S. dollars offered by leading European banks for a period comparable to such
Interest Period in an amount comparable to the principal amount of such Loan,
divided by (ii) one minus the maximum aggregate reserve requirement (including
all basic, supplemental, marginal or other reserves) which is imposed against
the Administrative Agent in respect of Eurocurrency liabilities, as defined in
Regulation D of the Board of Governors of the Federal Reserve System as in
effect from time to time (expressed as a decimal), applicable to such Interest
Period.  The LIBO Rate shall be rounded, if necessary, to the next higher
1/16 of 1%.

 

LIBO Rate Loan:  A Loan which bears interest at
the LIBO Rate.

 

Liquidity Agreement:  That certain Liquidity Asset
Purchase Agreement dated as of November 15, 2001, by and among Blue Ridge, the
Administrative Agent and the banks from time to time party thereto, as the same
may be amended, restated and/or otherwise modified from time to time.

 

Liquidity Banks:  The commercial lending
institutions from time to time party to the Liquidity Agreement as liquidity
providers thereunder.

 

Liquidity Commitment:  As to each Liquidity Bank, its
commitment under the Liquidity Agreement (which shall equal 102% of its
Commitment hereunder).

 

Liquidity Funding:  (i) A purchase made by any
Liquidity Bank pursuant to its Liquidity Commitment of all or any portion of,
or any undivided interest in, a Loan held by Blue Ridge.

 

Liquidity Termination
Date:  The
earlier to occur of the following:

 

(i)            the
date on which the Liquidity Banks’ Liquidity Commitments expire, cease to be
available to Blue Ridge or otherwise cease to be in full force and effect; or

 

(ii)           the
date on which a Downgrading Event with respect to a Liquidity Bank shall have
occurred and been continuing for not less than 30 days, and either (A) the
Downgraded Liquidity Bank shall not have been replaced by an Eligible Assignee
pursuant to the Liquidity Agreement, or (B) the Liquidity Commitment of such
Downgraded Liquidity Bank shall not have been funded or collateralized in such
a manner that will avoid a reduction in or withdrawal of the credit rating
applied to the Commercial Paper to which such Liquidity Agreement applies by
any of the rating agencies then rating such Commercial Paper.

 

Loan:  Any loan made by the
Lender or any Committed Bank to the Borrower pursuant to this Agreement. 
Each Loan shall either be a CP Rate Loan, an Alternate Base Rate Loan or a LIBO
Rate Loan, selected in accordance with the terms of this Agreement.

 

Loan Parties:  As defined in the preamble to
this Agreement.

 

Lock-Box:  Each locked postal box with
respect to which a bank who has executed a Collection Account Agreement has
been granted exclusive access for the purpose of retrieving and processing
payments made on the Receivables and which is listed on Exhibit IV.

 

I-13

 

Loss Reserve:  For any Calculation Period, the
product (expressed as a percentage) of (i) 2.0, times (ii) the highest three-month
rolling average Default Ratio during the 12 Calculation Periods ending on the
immediately preceding Cut-Off Date, times (iii) the Default Horizon Ratio as of
the immediately preceding Cut-Off Date.

 

Louisiana-Pacific:  As defined in the preamble to this
Agreement.

 

LP Downgrade Event:  The occurrence of any of the
following:  (i) the long-term unsecured senior debt rating of
Louisiana-Pacific shall be downgraded below BB- by S&P and Ba3 by Moody’s,
(ii) during the Ratings Downgrade Period, either (x) the rating agency which
did not issue a downgrade shall downgrade the long-term unsecured senior debt
rating of Louisiana-Pacific or (y) any rating agency shall downgrade the
long-term unsecured senior debt rating of Louisiana-Pacific a second time or (iii)
the Ratings Downgrade Period shall have expired.

 

Master Servicer:  At any time the Person (which may
be the Administrative Agent) then authorized pursuant to Article VIII to
service, administer and collect Receivables.

 

Material Adverse Effect:  A material adverse effect on (i)
the financial condition or operations of Borrower or the financial condition or
operations of Louisiana-Pacific, Performance Guarantor, any Originator and any
of their respective Subsidiaries taken as a whole, (ii) the ability of any Loan
Party to perform its obligations under this Agreement or any other Transaction
Document to which it is a party or the Performance Guarantor to perform its
obligations under the Performance Undertaking, (iii) the legality, validity or
enforceability of this Agreement or any other Transaction Document against any
Loan Party, Performance Guarantor or any Originator, (iv) the Administrative
Agent’s security interest, for the benefit of the Secured Parties, in the
Receivables generally or in any significant portion of the Receivables, the
Related Security or the Collections with respect thereto, or (v) the
collectibility of the Receivables generally or of any material portion of the
Receivables.

 

Monthly Report:  A report in substantially the
form of Exhibit IX (appropriately completed), furnished by the Master
Servicer to the Administrative Agent pursuant to Section 8.5.

 

Monthly Reporting Date:  Each date indicated on Exhibit
XIV as the Monthly Reporting Date or with respect to any additional Monthly
Report requested by the Administrative Agent pursuant to Section 8.5,
such date as the Administrative Agent shall indicate in any such request; provided,
however, if such Exhibit XIV is not updated as required by Section
7.1(b)(viii), then the Monthly Reporting Date shall be the fifteenth day of
each calendar month (or if any such day is not a Business Day, the next
succeeding Business Day thereafter).

 

Moody’s:  Moody’s Investors Service, Inc.

 

Net Pool Balance:  At any time, the aggregate
Outstanding Balance of all Eligible Receivables at such time reduced by which
the aggregate Outstanding Balance of all Eligible Receivables of each Obligor
and its Affiliates exceeds the Obligor Concentration Limit for such Obligor.

 

Non-Renewing Committed
Bank:  As
defined in Section 4.7(b).

 

Notice of Conversion:  As defined in Section 4.7(c).

 

I-14

 

Obligor:  A Person obligated to make
payments pursuant to a Contract.

 

Obligor Concentration
Limit:  At
any time, in relation to the aggregate Outstanding Balance of
Receivables owed by any single Obligor and its Affiliates (if any), the
applicable concentration limit shall be determined as follows for Obligors who
have short term unsecured debt ratings currently assigned to them by S&P
and Moody’s (or in the absence thereof, the equivalent long term unsecured
senior debt ratings):

 

	
  S&P
  Rating

  	
   

  	
  Moody’s
  Rating

  	
   

  	
  Allowable %
  of Eligible Receivables

  	
   

  
	
  A-1+

  	
   

  	
  P-1

  	
   

  	
  10%

  	
   

  
	
  A-1

  	
   

  	
  P-1

  	
   

  	
  8%

  	
   

  
	
  A-2

  	
   

  	
  P-2

  	
   

  	
  6%

  	
   

  
	
  A-3

  	
   

  	
  P-3

  	
   

  	
  3%

  	
   

  
	
  Below A-3 or Not
  Rated

  by either S&P or

  Moody’s

  	
   

  	
  Below P-3 or Not

  Rated by either S&P or

  Moody’s

  	
   

  	
  2%

  	
   

  

 

;provided, however, that (i) if any Obligor has
a split rating, the applicable rating will be the lower of the two, (ii) if any
Obligor is not rated by either S&P or Moody’s, the applicable Obligor
Concentration Limit shall be the one set forth in the last line of the table
above, and (iii) subject to satisfaction of the Rating Agency Condition and/or
an increase in the Required Reserve Factor Floor upon the Borrower’s request
from time to time, the Administrative Agent may agree to a higher percentage of
Eligible Receivables for a particular Obligor and its Affiliates (each such
higher percentage, a “Special
Concentration Limit”), it being understood that any Special
Concentration Limit may be cancelled by the Administrative Agent upon not less
than five (5) Business Days’ written notice to the Loan Parties; provided,
further that for the purposes of computing the Net Pool Balance, the Special
Concentration Limit with respect to Home Depot, Inc. and Boise Cascade
Corporation shall be the sum of the amount computed based to the applicable
rating of Home Depot, Inc. or Boise Cascade Corporation, as the case may be,
described above plus $5,500,000 with respect to Home Depot, Inc. and $2,500,000
with respect to Boise Cascade Corporation.

 

Originator:  Each of Louisiana-Pacific and LP
Wood Polymers, Inc., in its capacity as a originator under the Receivables Sale
Agreement.

 

Outstanding Balance:  Of any Receivable at any time
means the then outstanding principal balance thereof.

 

Participant:  As defined in Section 12.2.

 

PBGC:  The Pension Benefit Guaranty
Corporation, or any successor thereto.

 

Pension Plan:  A pension plan (as defined in
Section 3(2) of ERISA) subject to Title IV of ERISA which Performance Guarantor
sponsors or maintains, or to which it makes, is making, or is obligated to make
contributions, or in the case of a multiple employer plan (as described in 

 

I-15

 

Section 4064(a) of ERISA) has made contributions at
any time during the immediately preceding five plan years.

 

Performance Guarantor:  Louisiana-Pacific.

 

Performance Undertaking:  That certain Performance
Undertaking, dated as of November 15, 2001 by Performance Guarantor in favor of
Borrower, substantially in the form of Exhibit X, as the same may be
amended, restated or otherwise modified from time to time.

 

Person:  An individual, partnership,
corporation (including a business trust), limited liability company, joint
stock company, trust, unincorporated association, joint venture or other
entity, or a government or any political subdivision or agency thereof.

 

Plan:  An employee benefit plan (as
defined in Section 3(3) of ERISA) which Performance Guarantor or any of its
ERISA Affiliates sponsors or maintains or to which Performance Guarantor or any
of its ERISA Affiliates makes, is making, or is obligated to make contributions
and includes any Pension Plan, other than a Plan maintained outside the United
States primarily for the benefit of Persons who are not U.S. residents.

 

Pooled Commercial Paper:  Commercial Paper notes of Blue
Ridge subject to any particular pooling arrangement by Blue Ridge, but
excluding Commercial Paper issued by Blue Ridge for a tenor and in an amount
specifically requested by any Person in connection with any agreement effected
by Blue Ridge.

 

Prime Rate:  A rate per annum equal to the prime rate of interest
announced from time to time by Wachovia (which is not necessarily the lowest
rate charged to any customer), changing when and as said prime rate changes.

 

Proposed Reduction Date:  As defined in Section 1.3.

 

Pro Rata Share:  At any time with respect to any
Committed Bank, (i) with respect to any payment to be made to such Committed
Bank, the percentage equivalent of a fraction the numerator of which is equal
to the portion of the Aggregate Principal that has been funded by such Person
at such time and the denominator of which is equal to the Aggregate Principal
at such time and (ii) with respect to any Advance to be made by any Committed
Bank, the percentage equivalent of a fraction, the numerator of which is equal
to such Person’s Commitment and the denominator of which is equal to the
Borrowing Limit.

 

Rating Agency Condition:  That Blue Ridge has received
written notice from S&P and Moody’s that an amendment, a change, a waiver
or other action will not result in a withdrawal or downgrade of the then
current ratings on Blue Ridge’s Commercial Paper.

 

Ratings Downgrade Period:  The period beginning on the date
on which S&P or Moody’s downgrades the long-term unsecured senior debt
rating of Louisiana-Pacific to below BB- by S&P or Ba3 by Moody’s and
ending on the date six months thereafter.

 

I-16

 

Rebate and Allowance
Accrual:  As
of any Cut-Off Date, the aggregate balance of the accrual for rebates and
allowances held by the Originators during the Calculation Period ending on such
Cut-Off Date for the payment of rebates and allowances in future Calculation
Periods.

 

Rebate Reserve:  As of any Cut-Off Date, the
Rebate and Allowance Accrual times 1.5.

 

Receivable:  All indebtedness and other
obligations owed to Borrower or any Originator (at the time it arises, and before
giving effect to any transfer or conveyance under the Receivables Sale
Agreement) or in which Borrower or an Originator has a security interest or
other interest, including, without limitation, any indebtedness, obligation or
interest constituting an account, chattel paper, instrument or general
intangible, arising in connection with the sale of inventory by an Originator
to any Obligor, if a natural person, who is a resident of the United States or,
if a corporation or other business organization, who is organized under the
laws of the United States or any political subdivision thereof and has its
chief executive office in the United States, and further includes, without
limitation, the obligation to pay any Finance Charges with respect thereto. 
Indebtedness and other rights and obligations arising from any one transaction,
including, without limitation, indebtedness and other rights and obligations
represented by an individual invoice, shall constitute a Receivable separate
from a Receivable consisting of the indebtedness and other rights and
obligations arising from any other transaction; provided further, that any
indebtedness, rights or obligations referred to in the immediately preceding
sentence shall be a Receivable regardless of whether the account debtor or
Borrower treats such indebtedness, rights or obligations as a separate payment
obligation.

 

Receivables Sale
Agreement: 
That certain Receivables Sale Agreement, dated as of November 15, 2001, among
the Originators and Borrower, as the same may be amended, restated or otherwise
modified from time to time.

 

Records:  With respect to any Receivable,
all Contracts and other documents, books, records and other information
(including, without limitation, computer programs, tapes, disks, punch cards,
data processing software and related property and rights) relating to such
Receivable, any Related Security therefor and the related Obligor.

 

Recourse Obligations:  As defined in Section 2.1.

 

Reduction Notice:  As defined in Section 1.3.

 

Regulatory Change:  As defined in Section 10.3.

 

Related Security:  All of Borrower’s right, title
and interest in, to and under the Performance Undertaking, each Collection
Account and with respect to any Receivable:

 

(i) all of
Borrower’s interest in the inventory and goods (including returned or
repossessed inventory or goods), if any, the sale of which by an Originator
gave rise to such Receivable, and all insurance contracts with respect thereto,

 

(ii)                all
other security interests or liens and property subject thereto from time to
time, if any, purporting to secure payment of such Receivable, whether pursuant
to the

 

I-17

 

Contract related to such Receivable or otherwise,
together with all financing statements and security agreements describing any
collateral securing such Receivable,

 

(iii)               all
guaranties, letters of credit, insurance and other agreements or arrangements
of whatever character from time to time supporting or securing payment of such
Receivable whether pursuant to the Contract related to such Receivable or
otherwise,

 

(iv)              all
service contracts and other contracts and agreements associated with such
Receivable,

 

(v)               all
Records related to such Receivable,

 

(vi)              all
of Borrower’s right, title and interest in, to and under the Receivables Sale
Agreement in respect of such Receivable, and

 

(vii)             all
proceeds of any of the foregoing.

 

Required Committed Banks:  At any time, Committed Banks with
commitments in excess of 66-2/3% of the Aggregate Commitment.

 

Required Liquidity Banks:  At any time, Liquidity Banks with
commitments in excess of 66-2/3% of the Aggregate Commitment.

 

Required Notice Period:  The number of days required
notice set forth below applicable to the Aggregate Reduction indicated below:

 

	
  Aggregate Reduction

  	
   

  	
  Required Notice Period

  
	
  < 25% of the
  Aggregate Commitment

  	
   

  	
  2 Business Days

  
	
  > 25% but < 50%
  of the Aggregate Commitment

  	
   

  	
  4 Business Days

  
	
  > 50% of Aggregate
  Commitment

  	
   

  	
  5 Business Days

  

 

Required Reserve:  On any day, the sum of the Roll
Forward Differential Reserve plus the product of (i) the greater of (A)
the Required Reserve Factor Floor and (B) the sum of the Loss Reserve, the
Interest Reserve, the Dilution Reserve, the Cash Discount Reserve and the
Servicing Reserve, times (ii) the Net Pool Balance as of the last day of the
period covered by the most recent Monthly Report.

 

Required Reserve Factor
Floor:  For
any Calculation Period, the sum (expressed as a percentage) of (i) 8.0% plus
(ii) the product of the Adjusted Dilution Ratio and the Dilution Horizon Ratio,
in each case, as of the immediately preceding Cut-Off Date.

 

I-18

 

Restricted Junior Payment:  (i) any dividend or other
distribution, direct or indirect, on account of any shares of any class of
capital stock of Borrower now or hereafter outstanding, except a dividend
payable solely in shares of that class of stock or in any junior class of stock
of 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 Borrower now or hereafter outstanding, (iii) any
payment or prepayment of principal of, premium, if any, or interest, fees or
other charges on or with respect to, and any redemption, purchase, retirement,
defeasance, sinking fund or similar payment and any claim for rescission with
respect to the Subordinated Notes (as defined in the Receivables Sale
Agreement), (iv) any payment made to redeem, purchase, repurchase or retire, or
to obtain the surrender of, any outstanding warrants, options or other rights
to acquire shares of any class of capital stock of Borrower now or hereafter
outstanding, and (v) any payment of management fees by Borrower (except for
reasonable management fees to any Originator or its Affiliates in reimbursement
of actual management services performed).

 

Review:  As defined in Section 7.1(d).

 

Revolving Period:  The period from the Closing Date
to the Amortization Date.

 

Roll Forward Differential
Reserve: 
$1,000,000; provided that the Administrative Agent may require a lower, higher
or no Roll Forward Differential Reserve in its sole discretion based upon
audits conducted with respect to the Receivables.

 

S&P:  Standard and Poor’s Ratings
Services, a division of The McGraw Hill Companies, Inc.

 

Scheduled Monthly
Reporting Date: 
The 20th day of each Fiscal Month.

 

Scheduled Settlement Date:  The 2nd Business Day after each
Scheduled Monthly Reporting Date.

 

Secured Parties:  The Administrative Agent, the
Lender, the Liquidity Banks, the Indemnified Parties and the Committed Banks.

 

Separateness Agreement:  That certain Separateness
Agreement, dated as of November 19, 2001 by and among Louisiana-Pacific, the
Borrower and LP Wood Polymers, Inc.

 

Servicing Fee:  For each day in a Calculation
Period:

 

(i)                an
amount equal to (A) the Servicing Fee Rate (or, at any time while
Louisiana-Pacific or one of its Affiliates is the Master Servicer, such lesser
percentage as may be agreed between the Borrower and the Master Servicer on an
arms’ length basis based on then prevailing market terms for similar services),
times (B) the aggregate Outstanding Balance of all Receivables at the close of
business on the Cut-Off Date immediately preceding such Calculation Period,
times (C) 1/360; or

 

(ii)               on
and after the Master Servicer’s reasonable request made at any time when
Louisiana-Pacific or one of its Affiliates is no longer acting as Master
Servicer hereunder, an alternative amount specified by the successor Master
Servicer not

 

I-19

 

exceeding (A) 110% of such Master Servicer’s
reasonable costs and expenses of performing its obligations under this
Agreement during the preceding Calculation Period, divided by (B) the number of
days in the current Calculation Period.

 

Servicing Fee Rate:  1.0% per annum.

 

Servicing Reserve:  For any Calculation Period, the
product (expressed as a percentage) of (i) the Servicing Fee Rate, times (ii) a
fraction, the numerator of which is the highest Days Sales Outstanding for the
most recent 12 Calculation Periods and the denominator of which is 360.

 

Settlement Date:  (i) the 2nd Business
Day after each Monthly Reporting Date, and (ii) the last day of the relevant
Interest Period in respect of each Loan of the Liquidity Banks, or the
Committed Banks, as the case may be.

 

Settlement Period:  (i) in respect of each Loan
funded through the issuance of Commercial Paper, the immediately preceding
Calculation Period, and (ii) in respect of each Loan funded through a Liquidity
Funding or Bank Funding, the entire Interest Period of such Liquidity Funding
or Bank Funding, as the case may be.

 

Subservicer:  As defined in Section 8.1(b).

 

Subsidiary:  Of a Person means (i) any corporation
more than 50% of the outstanding securities having ordinary voting power of
which shall at the time be owned or controlled, directly or indirectly, by such
Person or by one or more of its Subsidiaries or by such Person and one or more
of its Subsidiaries, or (ii) any partnership, association, limited liability
company, joint venture or similar business organization more than 50% of the
ownership interests having ordinary voting power of which shall at the time be
so owned or controlled.

 

Tax Code:  The Internal Revenue Code of
1986, as the same may be amended from time to time.

 

Terminating Tranche:  As defined in Section 4.3(b).

 

Transaction Documents:  Collectively, this Agreement,
each Borrowing Notice, the Receivables Sale Agreement, each Collection Account
Agreement, the Performance Undertaking, the Fee Letter, the Subordinated Note
(as defined in the Receivables Sale Agreement) and all other instruments,
documents and agreements executed and delivered in connection herewith.

 

UCC:  The Uniform Commercial Code as
from time to time in effect in the specified jurisdiction.

 

Unmatured Amortization
Event:  An
event which, with the passage of time or the giving of notice, or both, would
constitute an Amortization Event.

 

Wachovia:  Wachovia Bank, N.A. in its
individual capacity.

 

All accounting terms not specifically defined herein
shall be construed in accordance with GAAP.  All terms used in Article 9
of the UCC in the State of New York, and not specifically defined herein, are
used herein as defined in such Article 9.

 

 

I-20

 

EXHIBIT II

 

FORM OF BORROWING NOTICE

 

---

 

[Borrower’s Name]

 

BORROWING NOTICE

dated
______________, 20__

for Borrowing on
________________, 20__

 

 

Wachovia Bank, N.A., as Administrative Agent

191 Peachtree Street, N.E., GA-423

Atlanta, Georgia 30303

 

Attention:  Elizabeth R. Wagner, Fax No. (404)
332-5152

 

Ladies and Gentlemen:

 

Reference is made to the
Credit and Security Agreement dated as of November 15, 2001 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”) among LP
Receivables Corporation (the “Borrower”),
Louisiana-Pacific, as initial Master Servicer, Blue Ridge Asset Funding
Corporation, as Lender and Wachovia Bank N.A., individually and as
Administrative Agent.  Capitalized terms defined in the Credit Agreement
are used herein with the same meanings.

1.              The [Master Servicer, on behalf of the] Borrower hereby
certifies, represents and warrants to the Administrative Agent, the Committed
Banks and the Lender that on and as of the Borrowing Date (as hereinafter
defined):

(a)           all applicable conditions precedent
set forth in Article VI of the Credit Agreement have been satisfied;

 

(b)           each of its representations and
warranties contained in Section 5.1 of the Credit Agreement will be true
and correct as if made on and as of the Borrowing Date;

 

(c)           no event will have occurred and is
continuing, or would result from the requested Advance, that constitutes an
Amortization Event or Unmatured Amortization Event;

 

(d)           the Facility Termination Date has not
occurred; and

 

(e)           after giving effect to the Loans
comprising the Advance requested below, the Aggregate Principal will not exceed
the Borrowing Limit.

 

2.              The [Master Servicer, on behalf of the] Borrower hereby
requests that Blue Ridge make an Advance on ___________, 20__ (the “Borrowing Date”) as follows:

 

II-1

 

(a)           Aggregate Amount of Advance: 
$_____________.

 

(b)           If
the Advance is funded with a Liquidity Funding or a Bank Funding, [Master
Servicer on behalf of the] Borrower requests that Blue Ridge make an Alternate Base Rate Loan that
converts into LIBO Rate Loan with an Interest Period of _____ months on the
third Business Day after the Borrowing Date.

 

3.              Please disburse the proceeds of the Loans as follows:

 

[Apply $________ to
payment of principal and interest of existing Loans due on the Borrowing
Date].  [Apply $______ to payment of fees due on the Borrowing Date].
[Wire transfer $________ to account no. ________ at ___________ Bank, in [city,
state], ABA No. __________, Reference:  ________].

 

IN WITNESS WHEREOF, the
[Master Servicer, on behalf of the] Borrower has caused this Borrowing Request
to be executed and delivered as of this ____ day of ___________,.

 

	
   

  	
  [Louisiana-Pacific
  Corporation, as Master Servicer, on behalf of:] LP Receivables Corporation,
  as Borrower

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Title:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
										

 

II-2

 

EXHIBIT III

 

JURISDICTION OF
FORMATION; PLACES OF BUSINESS OF THE LOAN PARTIES; LOCATIONS OF RECORDS,

 

FEDERAL EMPLOYER
IDENTIFICATION NUMBER(S)

LP
Receivables Corporation

 

Jurisdiction of Formation: Delaware

 

Places of Business: 805 S.W Broadway, Portland, Oregon
97205-3033 (Chief Executive Office)

 

Locations of Records:

 

N. 13403 Government Way

Hayden Lake, Idaho  83835

 

340 E. Big Beaver Rd. #105

Troy, Michigan  48083

 

10115 Kincey Ave #150

Huntersville, NC  28078

 

Federal Employer
Identification Number: 93-1329216

 

Legal, Trade and Assumed Names: LP Receivables
Corporation.

 

Louisiana-Pacific
Corporation

 

Jurisdiction of Formation: Delaware

 

Places of Business: 805 S.W Broadway, Portland, Oregon
97205-3033 (Chief Executive Office)

 

Locations of Records:

 

N. 13403 Government Way

Hayden Lake, Idaho  83835

 

340 E. Big Beaver Rd. #105

Troy, Michigan  48083

 

10115 Kincey Ave #150

Huntersville, NC  28078

 

Federal Employer Identification Number: 93-0609074

 

Legal, Trade and Assumed Names: Louisiana-Pacific
Corporation.

 

III-1

 

EXHIBIT IV

 

NAMES OF COLLECTION
BANKS; LOCK-BOXES & COLLECTION ACCOUNTS

 

Lock-boxes;
Collection Accounts; Collection Banks

 

	
  Company

  	
   

  	
  Bank Name

  	
   

  	
  Account No.

  	
   

  	
  Acct. Purpose

  	
   

  	
  Bank Address

  	
   

  	
  City

  	
   

  	
  State

  	
   

  	
  Zip

  
	
  LP Corp

  	
   

  	
  Bank of America

  	
   

  	
  12330-53134

  	
   

  	
  Lockbox Account

  	
   

  	
  File # 53564

  	
   

  	
  Los Angeles

  	
   

  	
  CA

  	
   

  	
  90074

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LP Corp

  	
   

  	
  Bank of America

  	
   

  	
  4970094285

  	
   

  	
  Depository

  	
   

  	
  2900 W. Davis

  	
   

  	
  Conroe

  	
   

  	
  TX

  	
   

  	
  77304

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LP Corp

  	
   

  	
  Idaho Independent Bank

  	
   

  	
  0200003838

  	
   

  	
  Depository

  	
   

  	
  8882 N. Government Way

  	
   

  	
  Hayden Lake

  	
   

  	
  ID

  	
   

  	
  83835

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LP Corp

  	
   

  	
  Wachovia Atlanta

  	
   

  	
  1864085323

  	
   

  	
  Lockbox Account

  	
   

  	
  PO Box 920022

  	
   

  	
  Atlanta

  	
   

  	
  GA

  	
   

  	
  30392

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LP Corp

  	
   

  	
  Wachovia Dallas

  	
   

  	
  1864085323

  	
   

  	
  Lockbox Account

  	
   

  	
  PO Box 951235

  	
   

  	
  Dallas

  	
   

  	
  TX

  	
   

  	
  75395

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LP Corp

  	
   

  	
  Wells Fargo-Regulus
  West

  	
   

  	
  4159576628

  	
   

  	
  Lockbox Account

  	
   

  	
  PO Box 4000-98

  	
   

  	
  Portland

  	
   

  	
  OR

  	
   

  	
  97208

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LP Corp

  	
   

  	
  Wells Fargo-Regulus
  West

  	
   

  	
  4159576628

  	
   

  	
  Lockbox Account

  	
   

  	
  PO Box 44479

  	
   

  	
  San Francisco

  	
   

  	
  CA

  	
   

  	
  94144

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LP Corp

  	
   

  	
  First Union National
  Bank

  	
   

  	
  2000000717265

  	
   

  	
  Lockbox Account

  	
   

  	
  PO Box 60335

  	
   

  	
  Charlotte

  	
   

  	
  NC

  	
   

  	
  28260

  

 

IV-1

 

EXHIBIT V

 

FORM OF COMPLIANCE
CERTIFICATE

 

 

To:  Wachovia Bank, N.A., as Administrative Agent

 

This Compliance
Certificate is furnished pursuant to that certain Credit and Security Agreement
dated as of November 15, 2001 among LP Receivables Corporation (the “Borrower”), Louisiana-Pacific
Corporation (the “Master Servicer”),
Blue Ridge Asset Funding Corporation and Wachovia Bank, N.A., as administrative
agent (the “Agreement”).

 

THE UNDERSIGNED HEREBY
CERTIFIES THAT:

 

1.              I am the duly elected _________________ of Borrower.

 

2.              I have reviewed the terms of the Agreement and I have
made, or have caused to be made under my supervision, a detailed review of the
transactions and conditions of Borrower and its Subsidiaries during the
accounting period covered by the attached financial statements.

 

3.              The examinations described in paragraph 2 did
not disclose, and I have no knowledge of, the existence of any condition or
event which constitutes an Amortization Event or Unmatured Amortization Event,
as each such term is defined under the Agreement, during or at the end of the
accounting period covered by the attached financial statements or as of the
date of this Certificate[, except as set forth in paragraph 5 below].

 

4.              Schedule I attached hereto sets forth financial
data and computations evidencing the compliance with certain covenants of the
Agreement, all of which data and computations are true, complete and correct.

 

[5.            Described below are the exceptions,
if any, to paragraph 3 by listing, in detail, the nature of the
condition or event, the period during which it has existed and the action which
Borrower has taken, is taking, or proposes to take with respect to each such
condition or event:  ____________________]

 

V-1

 

The foregoing
certifications, together with the computations set forth in Schedule I
hereto and the financial statements delivered with this Certificate in support
hereof, are made and delivered as of ______________, 20__.

 

 

	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
   

  	
   

  	 

	
   

  	
  Title:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

V-2

 

SCHEDULE I TO
COMPLIANCE CERTIFICATE

 

A.            Schedule of Compliance as of __________, ____ with
Section ___ of the Agreement.  Unless otherwise defined herein, the terms
used in this Compliance Certificate have the meanings ascribed thereto in the
Agreement.

 

This schedule relates to the Calculation Period ended:
_______________

 

S-1

 

EXHIBIT VI

 

FORM OF COLLECTION
ACCOUNT AGREEMENT

 

COLLECTION ACCOUNT
AGREEMENT

 

November 15, 2001

 

[Collection Bank Name]

[Collection Bank Address]

 

Attn:  ____________________

Fax No. (___) ______________

 

Re:            [Name of current Lock-Box
owner]/[Borrower’s Name]

 

Ladies and Gentlemen:

 

Reference is hereby made
to each of the [departmental] post office boxes listed on Schedule 1
hereto (each, a “Lock-Box”)
of which [Collection Bank Name], a _________ banking association (hereinafter “you”), has exclusive control for the
purpose of receiving mail and processing payments therefrom pursuant to the
[Lock-Box Service Agreement] dated _______________, originally by and between
_____________ (the “Company”)
and you (the “Service Agreement”).

 

1.              You hereby confirm your agreement to perform the
services described in the Service Agreement.  Among the services you have
agreed to perform therein, is to endorse all checks and other evidences of
payment received in each of the Lock-Boxes, and credit such payments to account
no. _____________ (the “Lock-Box Account”).

 

2.              The Company hereby informs you that it has transferred
to its affiliate, LP Receivables Corporation, a Delaware corporation (the “Borrower”) all of the Company’s right,
title and interest in and to the items from time to time received in the
Lock-Boxes and/or deposited in the Lock-Box Account, but that the Company has
agreed to continue to service the receivables giving rise to such items. 
Accordingly, the Company and the Borrower hereby request that the name of the
Lock-Box Account be changed to “LP Receivables Corporation”  The Borrower
hereby further advises you that it has pledged the receivables giving rise to
such items to Wachovia Bank, N.A. as administrative agent for certain secured
parties (in such capacity, the “Administrative
Agent”) and has granted a security interest to the
Administrative Agent in all of the Borrower’s right, title and interest in and
to the Lock-Box Account and the funds therein.

 

3.              Each of the Company and the Borrower hereby irrevocably
instructs you, and you hereby agree, that upon receiving notice from the
Administrative Agent in the form attached hereto as Annex A:

 

VI-1

 

(i)            the name of the Lock-Box Account
will be changed to “Wachovia Bank, N.A., as Administrative Agent” (or any
designee of the Administrative Agent), and the Administrative Agent will have
exclusive ownership of and access to the Lock-Boxes and the Lock-Box Account,
and none of the Company, the Borrower, nor any of their respective affiliates
will have any control of the Lock-Boxes or the Lock-Box Account or any access
thereto, (ii) you will either continue to send the funds from the Lock-Boxes to
the Lock-Box Account, or will redirect the funds as the Administrative Agent
may otherwise request, (iii) you will transfer monies on deposit in the
Lock-Box Account to the following account:

 

	
  Bank Name:

  	
   

  	
  Wachovia
  Bank, N.A.

  
	
  Location:

  	
   

  	
  Winston-Salem, SC

  
	
  ABA Routing No.:

  	
   

  	
  ABA # 053100494

  
	
  Credit Account No.:

  	
   

  	
  For credit to Blue
  Ridge Asset Funding

  
	
  Account #8735-098787.

  
	
  Reference:  Blue
  Ridge/LP Receivables Corporation

  
	
  Attention:  John
  Dillon, tel. (336) 732-2690

  

 

or to such other account as the Administrative Agent
may specify, (iv) all services to be performed by you under the Service
Agreement will be performed on behalf of the Administrative Agent, and (v) all
correspondence or other mail which you have agreed to send to the Company or
the Borrower will be sent to the Administrative Agent at the following address:

 

Wachovia Bank, N.A., as Administrative Agent

191 Peachtree Street

Mail Stop GA-423

Atlanta, GA  30303

Attn:  Elizabeth K. Wagner, 
           Asset-Backed Finance

FAX:  (404) 332- 5152

 

Moreover, upon such notice, the Administrative Agent
will have all rights and remedies given to the Company (and the Borrower, as
the Company’s assignee) under the Service Agreement.  The Borrower agrees,
however, to continue to pay all fees and other assessments due thereunder at
any time.

 

4.              You hereby acknowledge that monies deposited in the
Lock-Box Account or any other account established with you by the
Administrative Agent for the purpose of receiving funds from the Lock-Boxes are
subject to the liens of the Administrative Agent, and will not be subject to
deduction, set-off, banker’s lien or any other right you or any other party may
have against the Company or the Borrower except that you may debit the Lock-Box
Account for any items deposited therein that are returned or otherwise not
collected and for all charges, fees, commissions and expenses incurred by you
in providing services hereunder, all in accordance with your customary
practices for the charge back of returned items and expenses.

 

VI-2

 

5.              You will be liable only for direct damages in the event
you fail to exercise ordinary care.  You shall be deemed to have exercised
ordinary care if your action or failure to act is in conformity with general
banking usages or is otherwise a commercially reasonable practice of the
banking industry.  You shall not be liable for any special, indirect or
consequential damages, even if you have been advised of the possibility of
these damages.

 

6.              The parties acknowledge that you may assign or transfer
your rights and obligations hereunder solely to a wholly-owned subsidiary of [insert
name of Collection Bank’s holding company].

 

7.              Borrower agrees to indemnify you for, and hold you
harmless from, all claims, damages, losses, liabilities and expenses, including
legal fees and expenses, resulting from or with respect to this letter
agreement and the administration and maintenance of the Lock-Box Account and
the services provided hereunder, including, without limitation:  (a) any
action taken, or not taken, by you in regard thereto in accordance with the
terms of this letter agreement, (b) the breach of any representation or
warranty made by the Borrower pursuant to this letter agreement, (c) any item,
including, without limitation, any automated clearinghouse transaction, which
is returned for any reason, and (d) any failure of the Borrower to pay any
invoice or charge to you for services in respect to this letter agreement and
the Lock-Box Account or any amount owing to you from the Borrower with respect
thereto or to the service provided hereunder.

 

8.              THIS LETTER AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER WILL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WHICH STATE SHALL BE YOUR
“LOCATION” FOR PURPOSES OF THE UNIFORM COMMERCIAL CODE.  This letter
agreement may be executed in any number of counterparts and all of such
counterparts taken together will be deemed to constitute one and the same
instrument.

 

9.              This letter agreement contains the entire agreement
between the parties, and may not be altered, modified, terminated or amended in
any respect, nor may any right, power or privilege of any party hereunder be
waived or released or discharged, except upon execution by all parties hereto
of a written instrument so providing.  In the event that any provision in
this letter agreement is in conflict with, or is inconsistent with, any
provision of the Service Agreement, this letter agreement will exclusively
govern and control.  Each party agrees to take all actions reasonably
requested by any other party to carry out the purposes of this letter agreement
or to preserve and protect the rights of each party hereunder.

 

Please indicate your
agreement to the terms of this letter agreement by signing in the space
provided below.  This letter agreement will become effective immediately
upon execution

 

VI-3

 

of a counterpart of this letter agreement by all parties
hereto.

 

	
   

  	
  Very truly
  yours,

  	 

	
   

  	
   

  	 

	
   

  	
  [NAME OF CURRENT
  LOCK-BOX OWNER]

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Title:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

	
   

  	
  LP RECEIVABLES
  CORPORATION

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Title:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

Acknowledged and agreed to as of the

date first above written:

 

	
  [COLLECTION BANK]

  	 

	
   

  	 

	
  By:

  	
   

  	
   

  	
   

  	 

	
  Name:

  	
   

  	
   

  	
   

  	 

	
  Title:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

	
  WACHOVIA BANK, N.A., as Administrative Agent

  	 

	
   

  	 

	
  By:

  	
   

  	
   

  	
   

  	 

	
  Name:

  	
   

  	
   

  	
   

  	 

	
  Title:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

VI-4

 

ANNEX A

 

FORM OF NOTICE

 

[On letterhead of
the Administrative Agent]

 

[Date]

 

[Collection Bank Name]

[Collection Bank Address]

 

Attn:  ____________________

Fax No. (___) ______________

 

Re:             [Name
of current Lock-Box owner]/[Borrower Name]

 

Ladies and Gentlemen:

 

We hereby notify you that
we are exercising our rights pursuant to that certain letter agreement dated
November 15, 2001 (the “Letter Agreement”)
among [Name of current Lock-Box Owner], LP Receivables Corporation, you and us,
to have the name of, and to have exclusive ownership and control of, account
no. __________ identified in the Letter Agreement (the “Lock-Box Account”) maintained with
you, transferred to us.  The Lock-Box Account will henceforth be a
zero-balance account, and funds deposited in the Lock-Box Account should be
sent at the end of each day to the account specified in Section 3(i) of the
Letter Agreement, or as otherwise directed by the undersigned.  You have
further agreed to perform all other services you are performing under the
“Service Agreement” (as defined in the Letter Agreement) on our behalf.

 

We appreciate your
cooperation in this matter.

 

	
   

  	
  Very truly yours,

  	 

	
   

  	
   

  	 

	
   

  	
  WACHOVIA BANK, N.A.,

  	 

	
   

  	
  as
  Administrative Agent

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Title:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

A-1

 

SCHEDULE 1

 

	
  Lock–Box
  Post Office Address

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  

 

A-2

 

EXHIBIT VII

 

CREDIT AND COLLECTION
POLICY

 

See Exhibit V to
Receivables Sale Agreement

 

 

VII-1

 

EXHIBIT IX

 

FORM OF MONTHLY REPORT

[to be attached]

 

IX-1

 

EXHIBIT X

 

FORM OF PERFORMANCE
UNDERTAKING

 

This Performance Undertaking
(this “Undertaking”),
dated as of November 15, 2001, is executed by Louisiana-Pacific Corporation, a
Delaware corporation (the “Performance
Guarantor”) in favor of LP Receivables Corporation, a Delaware
corporation (together with its successors and assigns, “Recipient”).

 

RECITALS

 

1.             LP Wood Polymer, Inc. (“LP Wood”), Performance Guarantor (in its individual
capacity), and Recipient have entered into a Receivables Sale Agreement, dated
as of November 15, 2001 (as amended, restated or otherwise modified from time
to time, the “Sale Agreement”),
pursuant to which LP Wood and Performance Guarantor, subject to the terms and
conditions contained therein, are selling and/or contributing their respective
right, title and interest in their accounts receivable to Recipient.

 

2.             Performance Guarantor owns one hundred percent (100%) of
the capital stock of LP Wood and Recipient and accordingly, Performance
Guarantor, is expected to receive substantial direct and indirect benefits from
the sale or contribution of receivables by LP Wood to Recipient pursuant to the
Sale Agreement (which benefits are hereby acknowledged).

 

3.             As an inducement for Recipient to acquire LP Wood’s
accounts receivable pursuant to the Sale Agreement, Performance Guarantor has
agreed to guaranty the due and punctual performance by LP Wood of its
obligations under the Sale Agreement, as well as the Servicing Related
Obligations (as hereinafter defined).

 

4.             Performance Guarantor wishes to guaranty the due and
punctual performance by LP Wood of its obligations to Recipient under or in respect of the
Sale Agreement and the Servicing Related Obligations (as hereinafter defined),
as provided herein.

 

AGREEMENT

 

NOW, THEREFORE,
Performance Guarantor hereby
agrees as follows:

 

Section 1.  Definitions. 
Capitalized terms used herein and not defined herein shall the respective
meanings assigned thereto in the Sale Agreement or the Credit and Security
Agreement (as hereinafter defined).  In addition:

 

Guaranteed Obligations:  Collectively:  (i) all covenants,
agreements, terms, conditions and indemnities to be performed and observed by
LP Wood under and pursuant to the Sale Agreement and each other document
executed and delivered by LP Wood pursuant to the Sale Agreement, including,
without limitation, the due and punctual payment of all sums which are or

 

X-1

 

may become due and owing by LP Wood under the Sale
Agreement, whether for fees, expenses (including counsel fees), indemnified
amounts or otherwise, whether upon any termination or for any other reason and
(ii) all obligations of LP Wood appointed as Subservicer pursuant to the Credit
and Security Agreement (defined below) (A) as Subservicer under the Credit and
Security Agreement, dated as of November 15, 2001 by and among Recipient, as
Borrower, Louisiana-Pacific Corporation, as Master Servicer, Blue Ridge Asset
Funding Corporation, the committed banks named therein and Wachovia Bank, N.A.,
as Administrative Agent (as amended, restated or otherwise modified, the “Credit and Security Agreement” and,
together with the Sale Agreement, the “Agreements”)
or (B) which arise pursuant to Article VIII of the Credit and Security
Agreement as a result of its termination as Subservicer (all such obligations
under this clause (ii), collectively, the “Servicing Related Obligations”).

 

Section 2.  Guaranty
of Performance of Guaranteed Obligations.  Performance Guarantor
hereby guarantees to Recipient, the full and punctual payment and performance
by LP Wood of its Guaranteed Obligations.  This Undertaking is an
absolute, unconditional and continuing guaranty of the full and punctual
performance of all Guaranteed Obligations of LP Wood under the Agreements and
each other document executed and delivered by LP Wood pursuant to the
Agreements and is in no way conditioned upon any requirement that Recipient
first attempt to collect any amounts owing by LP Wood to Recipient, the
Administrative Agent, the Committed Banks or the Lender from any other Person
or resort to any collateral security, any balance of any deposit account or
credit on the books of Recipient, the Administrative Agent, the Committed Banks
or the Lender in favor of LP Wood or any other Person or other means of
obtaining payment.  Should LP Wood default in the payment or performance
of any of its Guaranteed Obligations, Recipient (or its assigns) may cause the
immediate performance by Performance Guarantor of the Guaranteed Obligations
and cause any payment Guaranteed Obligations to become forthwith due and
payable to Recipient (or its assigns), without demand or notice of any nature
(other than as expressly provided herein), all of which are hereby expressly
waived by Performance Guarantor.  Notwithstanding the foregoing, this
Undertaking is not a guarantee of the collection of any of the Receivables and
Performance Guarantor shall not be responsible for any Guaranteed Obligations
to the extent the failure to perform such Guaranteed Obligations by LP Wood
results from Receivables being uncollectible on account of the insolvency,
bankruptcy or lack of creditworthiness of the related Obligor; provided that
nothing herein shall relieve LP Wood from performing in full its Guaranteed
Obligations under the Agreements or Performance Guarantor of its undertaking hereunder
with respect to the full performance of such duties.

 

Section 3.  Performance
Guarantor’s Further Agreements to Pay.  Performance Guarantor further
agrees, as the principal obligor and not as a guarantor only, to pay to
Recipient (and its assigns), forthwith upon demand in funds immediately
available to Recipient, all costs and expenses (including court costs and legal
expenses) incurred or expended by Recipient in connection with the Guaranteed
Obligations, this Undertaking and the enforcement thereof, together with
interest on amounts recoverable under this Undertaking from the time when such
amounts become due until payment, at a rate of interest (computed for the
actual number of days elapsed based on a 360 day year) equal to the Prime Rate
plus 2% per annum, such rate of interest changing when and as the Prime Rate
changes.

 

X-2

 

Section 4.  Waivers
by Performance Guarantor.  Performance Guarantor waives notice of
acceptance of this Undertaking, notice of any action taken or omitted by
Recipient (or its assigns) in reliance on this Undertaking, and any requirement
that Recipient (or its assigns) be diligent or prompt in making demands under
this Undertaking, giving notice of any Termination Event, Amortization Event,
other default or omission by LP Wood or asserting any other rights of Recipient
under this Undertaking.  Performance Guarantor warrants that it has
adequate means to obtain from LP Wood, on a continuing basis, information
concerning the financial condition of LP Wood, and that it is not relying on
Recipient to provide such information, now or in the future.  Performance
Guarantor also irrevocably waives all defenses (i) that at any time may be
available in respect of the Aggregate Unpaids by virtue of any statute of
limitations, valuation, stay, moratorium law or other similar law now or
hereafter in effect or (ii) that arise under the law of suretyship, including
impairment of collateral.  Recipient (and its assigns) shall be at liberty,
without giving notice to or obtaining the assent of Performance Guarantor and
without relieving Performance Guarantor of any liability under this
Undertaking, to deal with LP Wood and with each other party who now is or after
the date hereof becomes liable in any manner for any of the Guaranteed
Obligations, in such manner as Recipient in its sole discretion deems fit, and
to this end Performance Guarantor agrees that the validity and enforceability
of this Undertaking, including without limitation, the provisions of Section
7, shall not be impaired or affected by any of the following:  (a) any
extension, modification or renewal of, or indulgence with respect to, or
substitutions for, the Guaranteed Obligations or any part thereof or any
agreement relating thereto at any time; (b) any failure or omission to enforce
any right, power or remedy with respect to the Guaranteed Obligations or any
part thereof or any agreement relating thereto, or any collateral securing the
Guaranteed Obligations or any part thereof; (c) any waiver of any right, power
or remedy or of any Termination Event, Amortization Event, or default with
respect to the Guaranteed Obligations or any part thereof or any agreement
relating thereto; (d) any release, surrender, compromise, settlement, waiver,
subordination or modification, with or without consideration, of any other
obligation of any person or entity with respect to the Guaranteed Obligations
or any part thereof; (e) the enforceability or validity of the Guaranteed
Obligations or any part thereof or the genuineness, enforceability or validity
of any agreement relating thereto or with respect to the Guaranteed Obligations
or any part thereof; (f) the application of payments received from any source
to the payment of any payment obligations of LP Wood or any part thereof or
amounts which are not covered by this Undertaking even though Recipient (or its
assigns) might lawfully have elected to apply such payments to any part or all
of the payment obligations of LP Wood or to amounts which are not covered by
this Undertaking; (g) the existence of any claim, setoff or other rights which
Performance Guarantor may have at any time against LP Wood in connection
herewith or any unrelated transaction; (h) any assignment or transfer of the
Guaranteed Obligations or any part thereof; or (i) any failure on the part of
LP Wood to perform or comply with any term of the Agreements or any other
document executed in connection therewith or delivered thereunder, all whether
or not Performance Guarantor shall have had notice or knowledge of any act or
omission referred to in the foregoing clauses (a) through (i) of
this Section 4.

 

Section 5.  Unenforceability
of Guaranteed Obligations Against LP Wood.  Notwithstanding (a) any
change of ownership of LP Wood or the insolvency, bankruptcy or any other
change in the legal status of LP Wood; (b) the change in or the imposition of
any law, decree, regulation or other governmental act which does or might
impair, delay or in any way affect the validity, enforceability or the payment
when due of the Guaranteed Obligations; (c) the

 

X-3

 

failure of LP Wood or Performance Guarantor to
maintain in full force, validity or effect or to obtain or renew when required
all governmental and other approvals, licenses or consents required in
connection with the Guaranteed Obligations or this Undertaking, or to take any
other action required in connection with the performance of all obligations
pursuant to the Guaranteed Obligations or this Undertaking; or (d) if any of
the moneys included in the Guaranteed Obligations have become irrecoverable
from LP Wood for any other reason other than final payment in full of the
payment obligations of LP Wood in accordance with their terms, this Undertaking
shall nevertheless be binding on Performance Guarantor.  This Undertaking
shall be in addition to any other guaranty or other security for the Guaranteed
Obligations, and it shall not be rendered unenforceable by the invalidity of
any such other guaranty or security.  In the event that acceleration of
the time for payment of any of the Guaranteed Obligations is stayed upon the
insolvency, bankruptcy or reorganization of LP Wood or for any other reason
with respect to LP Wood, all such amounts then due and owing with respect to
the Guaranteed Obligations under the terms of the Agreements, or any other
agreement evidencing, securing or otherwise executed in connection with the
Guaranteed Obligations, shall be immediately due and payable by Performance
Guarantor.

 

Section 6.  Representations
and Warranties.  Performance Guarantor hereby represents and warrants
to Recipient that:

 

(a)     Existence
and Standing.  Performance Guarantor is a corporation duly organized,
validly existing and in good standing under the laws of its state of
incorporation.  Performance Guarantor is duly qualified to do business and
is in good standing as a foreign corporation, and has and holds all corporate
power and all governmental licenses, authorizations, consents and approvals
required to carry on its business in each jurisdiction in which its business is
conducted except where the failure to so qualify or so hold could not
reasonably be expected to have a Material Adverse Effect.

 

(b)     Authorization,
Execution and Delivery; Binding Effect.  The execution and delivery by
Performance Guarantor of this Undertaking, and the performance of its
obligations hereunder, are within its corporate powers and authority and have
been duly authorized by all necessary corporate action on its part.  This
Undertaking has been duly executed and delivered by Performance
Guarantor.  This Undertaking constitutes the legal, valid and binding
obligation of Performance Guarantor enforceable against Performance Guarantor
in accordance with its terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization or other similar laws
relating to or limiting creditors’ rights generally and by general principles
of equity (regardless of whether enforcement is sought in a proceeding in
equity or at law).

 

(c)     No
Conflict; Government Consent.  The execution and delivery by
Performance Guarantor of this Undertaking, and the performance of its
obligations hereunder do not contravene or violate (i) its certificate or articles
of incorporation or by-laws, (ii) any law, rule or regulation applicable to it,
(iii) any restrictions under any agreement, contract or instrument to which it
is a party or by which it or any of its property is bound, or (iv) any order,
writ, judgment, award, injunction or decree binding on or affecting it or its
property, and do not result in the creation or imposition of any Adverse Claim
on assets of Performance Guarantor or its

 

X-4

 

Subsidiaries (except as created hereunder) except, in
any case, where such contravention or violation could not reasonably be
expected to have a Material Adverse Effect.

 

(d)     Financial
Statements.  The consolidated financial statements of Performance
Guarantor and its consolidated Subsidiaries dated as of December 31, 2000 and
June 30, 2001 heretofore delivered to Recipient have been prepared in
accordance with generally accepted accounting principles consistently applied
and fairly present in all material respects the consolidated financial
condition and results of operations of Performance Guarantor and its
consolidated Subsidiaries as of such dates and for the periods ended on such
dates.  Since the later of (i) June 30, 2001 and (ii) the last time this
representation was made or deemed made, no event has occurred which would or
could reasonably be expected to have a Material Adverse Effect.

 

(e)     Taxes. 
Performance Guarantor has filed all United States federal tax returns and all
other tax returns which are required to be filed and have paid all taxes due
pursuant to said returns or pursuant to any assessment received by Performance
Guarantor or any of its Subsidiaries, except such taxes, if any, as are being
contested in good faith and as to which adequate reserves have been
provided.  The United States income tax returns of Performance Guarantor
have been audited by the Internal Revenue Service through the fiscal year ended
December 31, 1997.  No federal or state tax liens have been filed and no
claims are being asserted with respect to any such taxes.  The charges,
accruals and reserves on the books of Performance Guarantor in respect of any
taxes or other governmental charges are adequate.

 

(f)     Litigation
and Contingent Obligations.  Except as disclosed in the filings made
by Performance Guarantor with the Securities and Exchange Commission, there are
no actions, suits or proceedings pending or, to the best of Performance
Guarantor’s knowledge threatened against or affecting Performance Guarantor or
any of its properties, in or before any court, arbitrator or other body, that
could reasonably be expected to have a material adverse effect on (i) the
business, properties, condition (financial or otherwise) or results of
operations of   Performance Guarantor and its Subsidiaries taken as a
whole, (ii) the ability of Performance Guarantor to perform its obligations
under this Undertaking, or (iii) the validity or enforceability of any of this
Undertaking or the rights or remedies of Recipient hereunder.  Performance
Guarantor does not have any material contingent obligations not provided for or
disclosed in the financial statements referred to in Section 6(d).

 

Section 7.  Subrogation;
Subordination.  Notwithstanding anything to the contrary contained
herein, until the Guaranteed Obligations are paid in full Performance
Guarantor:  (a) will not enforce or otherwise exercise any right of
subrogation to any of the rights of Recipient, the Administrative Agent, any
Committed Bank or the Lender against LP Wood, (b) hereby waives all rights of
subrogation (whether contractual, under Section 509 of the United States
Bankruptcy Code, at law or in equity or otherwise) to the claims of Recipient,
the Administrative Agent, the Committed Banks and the Lender against LP Wood and
all contractual, statutory or legal or equitable rights of contribution,
reimbursement, indemnification and similar rights and “claims” (as that term is
defined in the United States Bankruptcy Code) which Performance Guarantor might
now have or hereafter acquire against LP Wood that arise from the existence or
performance of Performance Guarantor’s obligations hereunder, (c) will not
claim any setoff, recoupment or counterclaim against LP Wood in respect of any
liability of Performance

 

X-5

 

Guarantor to LP Wood and (d) waives any benefit of and
any right to participate in any collateral security which may be held by
Recipient, the Administrative Agent, any Committed Bank or the Lender. 
The payment of any amounts due with respect to any indebtedness of LP Wood now
or hereafter owed to Performance Guarantor is hereby subordinated to the prior
payment in full of all of the Guaranteed Obligations.  Performance
Guarantor agrees that, after the occurrence of any default in the payment or
performance of any of the Guaranteed Obligations, Performance Guarantor will
not demand, sue for or otherwise attempt to collect any such indebtedness of LP
Wood to Performance Guarantor until all of the Guaranteed Obligations shall
have been paid and performed in full.  If, notwithstanding the foregoing
sentence, Performance Guarantor shall collect, enforce or receive any amounts
in respect of such indebtedness while any Obligations are still unperformed or
outstanding, such amounts shall be collected, enforced and received by
Performance Guarantor as trustee for Recipient (and its assigns) and be paid
over to Recipient (or its assigns) on account of the Guaranteed Obligations
without affecting in any manner the liability of Performance Guarantor under
the other provisions of this Undertaking.  The provisions of this Section
7 shall be supplemental to and not in derogation of any rights and remedies
of Recipient under any separate subordination agreement which Recipient may at
any time and from time to time enter into with Performance Guarantor.

 

Section 8.  Termination
of Performance Undertaking.  Performance Guarantor’s obligations
hereunder shall continue in full force and effect until all Obligations are
finally paid and satisfied in full and the Credit and Security Agreement is
terminated, provided that this Undertaking shall continue to be effective or
shall be reinstated, as the case may be, if at any time payment or other
satisfaction of any of the Guaranteed Obligations is rescinded or must
otherwise be restored or returned upon the bankruptcy, insolvency, or
reorganization of LP Wood or otherwise, as though such payment had not been
made or other satisfaction occurred, whether or not Recipient (or its assigns)
is in possession of this Undertaking.  No invalidity, irregularity or
unenforceability by reason of the federal bankruptcy code or any insolvency or
other similar law, or any law or order of any government or agency thereof
purporting to reduce, amend or otherwise affect the Guaranteed Obligations
shall impair, affect, be a defense to or claim against the obligations of
Performance Guarantor under this Undertaking.

 

Section 9.  Effect
of Bankruptcy.  This Performance Undertaking shall survive the
insolvency of LP Wood and the commencement of any case or proceeding by or
against LP Wood under the federal bankruptcy code or other federal, state or
other applicable bankruptcy, insolvency or reorganization statutes.  No
automatic stay under the federal bankruptcy code with respect to LP Wood or
other federal, state or other applicable bankruptcy, insolvency or
reorganization statutes to which LP Wood is subject shall postpone the
obligations of Performance Guarantor under this Undertaking.

 

Section 10.  Setoff. 
Regardless of the other means of obtaining payment of any of the Guaranteed
Obligations, Recipient (and its assigns) is hereby authorized at any time and
from time to time, without notice to Performance Guarantor (any such notice
being expressly waived by Performance Guarantor) and to the fullest extent
permitted by law, to set off and apply any deposits and other sums against the
obligations of Performance Guarantor under this Undertaking, whether or not
Recipient (or any such assign) shall have made any demand under this
Undertaking and although such Obligations may be contingent or unmatured.

 

X-6

 

Section 11.  Taxes. 
All payments to be made by Performance Guarantor hereunder shall be made free
and clear of any deduction or withholding.  If Performance Guarantor is
required by law to make any deduction or withholding on account of tax or
otherwise from any such payment, the sum due from it in respect of such payment
shall be increased to the extent necessary to ensure that, after the making of
such deduction or withholding, Recipient receive a net sum equal to the sum
which they would have received had no deduction or withholding been made.

 

Section 12.  Further
Assurances.  Performance Guarantor agrees that it will from time to
time, at the request of Recipient (or its assigns), provide information
relating to the business and affairs of Performance Guarantor as Recipient may
reasonably request.  Performance Guarantor also agrees to do all such
things and execute all such documents as Recipient (or its assigns) may
reasonably consider necessary or desirable to give full effect to this
Undertaking and to perfect and preserve the rights and powers of Recipient
hereunder.

 

Section 13.  Successors
and Assigns.  This Performance Undertaking shall be binding upon
Performance Guarantor, its successors and permitted assigns, and shall inure to
the benefit of and be enforceable by Recipient and its successors and
assigns.    Performance Guarantor may not assign or transfer any
of its obligations hereunder without the prior written consent of each of
Recipient and the Administrative Agent. Without limiting the generality of the
foregoing sentence, Recipient may assign or otherwise transfer the Agreements,
any other documents executed in connection therewith or delivered thereunder or
any other agreement or note held by them evidencing, securing or otherwise
executed in connection with the Guaranteed Obligations, or sell participations
in any interest therein, to any other entity or other person, and such other
entity or other person shall thereupon become vested, to the extent set forth
in the agreement evidencing such assignment, transfer or participation, with
all the rights in respect thereof granted to the Recipient herein.  The
Secured Parties are made express third party beneficiaries of this Undertaking
and may exercise the rights of Recipient under Section 2 and 3 from time to
time.

 

Section 14.  Amendments
and Waivers.  No amendment or waiver of any provision of this
Undertaking nor consent to any departure by Performance Guarantor therefrom
shall be effective unless the same shall be in writing and signed by Recipient,
the Administrative Agent and Performance Guarantor.  No failure on the
part of Recipient to exercise, and no delay in exercising, any right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right hereunder preclude any other or further exercise thereof or the
exercise of any other right.

 

Section 15.  Notices. 
All notices and other communications provided for hereunder shall be made in
writing and shall be addressed as follows:  if to Performance Guarantor,
at the address set forth beneath its signature hereto, and if to Recipient, at
the addresses set forth beneath its signature hereto, or at such other
addresses as each of Performance Guarantor or any Recipient may designate in
writing to the other.  Each such notice or other communication shall be
effective (1) if given by telecopy, upon the receipt thereof, (2) if given by
mail, three (3) Business Days after the time such communication is deposited in
the mail with first class postage prepaid or (3) if given by any other means,
when received at the address specified in this Section 15.

 

X-7

 

Section 16.  GOVERNING
LAW.  THIS UNDERTAKING SHALL BE CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW) OF THE STATE OF NEW YORK.

 

Section 17.  CONSENT
TO JURISDICTION.  EACH OF PERFORMANCE GUARANTOR AND RECIPIENT HEREBY
IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES
FEDERAL OR NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS UNDERTAKING, THE
AGREEMENTS OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION THEREWITH OR DELIVERED
THEREUNDER AND EACH OF THE PERFORMANCE GUARANTOR AND RECIPIENT HEREBY
IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY
BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION
IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.

 

Section 18.  Bankruptcy
Petition.  Performance Guarantor hereby covenants and agrees that,
prior to the date that is one year and one day after the payment in full of all
outstanding senior Indebtedness of Blue Ridge, it will not institute against,
or join any other Person in instituting against, Blue Ridge any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceeding under the laws of the United States or any state of the
United States.

 

Section 19.  Miscellaneous. 
This Undertaking constitutes the entire agreement of Performance Guarantor with
respect to the matters set forth herein. The rights and remedies herein
provided are cumulative and not exclusive of any remedies provided by law or
any other agreement, and this Undertaking shall be in addition to any other
guaranty of or collateral security for any of the Guaranteed Obligations. 
The provisions of this Undertaking are severable, and in any action or
proceeding involving any state corporate law, or any state or federal
bankruptcy, insolvency, reorganization or other law affecting the rights of
creditors generally, if the obligations of Performance Guarantor hereunder
would otherwise be held or determined to be avoidable, invalid or unenforceable
on account of the amount of Performance Guarantor’s liability under this
Undertaking, then, notwithstanding any other provision of this Undertaking to
the contrary, the amount of such liability shall, without any further action by
Performance Guarantor or Recipient, be automatically limited and reduced to the
highest amount that is valid and enforceable as determined in such action or
proceeding.  Any provisions of this Undertaking which are prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  Unless otherwise
specified, references herein to “Section” shall mean a reference to sections of
this Undertaking.

 

X-8

 

IN WITNESS WHEREOF,
Performance Guarantor has caused this Undertaking to be executed and delivered
as of the date first above written.

 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Title:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Address for Notices: 

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
											

 

X-9

 

EXHIBIT XI

 

FORM OF NOTICE OF
COMMITTED BANK ADVANCE

 

To:          [Non-Renewing
Committed Bank/Downgraded Committed Bank]

 

Attention: __________________

 

Ladies and Gentlemen:

 

The undersigned,
Louisiana-Pacific Corporation (“Louisiana-Pacific”)
refers to the Credit and Security Agreement, dated as of November 15, 2001
among LP Receivables Corporation, as borrower (the “Borrower”), Louisiana-Pacific, as
master servicer, the committed banks from time to time party thereto, Blue
Ridge Asset Funding Corporation, as Lender (“Blue Ridge”) and Wachovia Bank, N.A., as administrative
agent (the “Administrative Agent”)
(as the same may be amended, supplemented, or otherwise modified from time to
time, the “Credit Agreement”). 
Capitalized terms not otherwise defined herein being used shall have the
meanings assigned to such terms in the Credit Agreement.

 

Louisiana-Pacific hereby
gives you, a [Non-Renewing Committed
Bank][Downgraded Committed Bank], notice, irrevocably, pursuant to Section
4.7(b) of the Credit Agreement that the Borrower hereby requests an Advance
Account Deposit under the Credit Agreement, and in connection therewith sets
forth below the information relating to such Advance Account Deposit (the “Proposed Deposit”) as required by Section
4.7(b) of the Credit Agreement:

 

(a)           The deposit date of the Proposed
Deposit is ______________.

 

(b)           The aggregate amount of the Proposed
Deposit is $______________ which is your Commitment minus the portion of
the Aggregate Principal advanced by you, whether pursuant to the Credit
Agreement or pursuant to the Liquidity Agreement (after giving effect to any
assignment of any Loan to you).

 

IN WITNESS WHEREOF, the
Louisiana-Pacific, ______, on behalf of the Borrower has caused this Notice of
Conversion to be executed and delivered as of this ____ day of ___________,
_____.

 

	
   

  	
  LOUISIANA-PACIFIC
  CORPORATION,

  	 

	
   

  	
  as Master
  Servicer, on behalf of LP Receivables Corporation, as Borrower

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Title:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

 

XI-1

 

EXHIBIT XII

 

FORM OF NOTICE OF
CONVERSION

 

To:          Wachovia
Bank, N.A., as Administrative Agent

            191 Peachtree Street, N.E., GA-31261

            Atlanta, GA 30303

 

Attention: Elizabeth
Wagner, Fax No. (404) 332-5152

 

Ladies and Gentlemen:

 

The undersigned,
Louisiana-Pacific Corporation (“Louisiana-Pacific”)
refers to the Credit and Security Agreement, dated as of November 15, 2001
among LP Receivables Corporation., as borrower (the “Borrower”), Louisiana-Pacific, as
master servicer (the “Master
Servicer”), the committed
banks from time to time party thereto, Blue Ridge Asset Funding Corporation, as
Lender (“Blue Ridge”) and
Wachovia Bank, N.A., as administrative agent (the “Administrative Agent”) (as the same
may be amended, supplemented, or otherwise modified from time to time, the “Credit Agreement”).  Capitalized
terms not otherwise defined herein being used shall have the meanings assigned
to such terms in the Credit Agreement.

 

1.              The Master Servicer hereby gives you notice,
irrevocably, pursuant to Section 4.7(c) of the Credit Agreement that the
Borrower hereby requests to convert [all/a
portion] of the Advance Account Deposit of [Name of Non-Renewing Committed Bank(s)][Name of
Downgraded Committed Bank(s)] to an Advance under the Credit
Agreement, and in connection therewith sets forth below the information
relating to such Advance (the “Proposed
Advance”) as required by Section 4.7(c) of the Credit
Agreement:

 

(a)           The date of the Proposed Advance is
______________.

 

(b)           The aggregate amount of the Proposed
Advance is $______________.

2.  The Master
Servicer, on behalf of the Borrower hereby certifies, represents and warrant to
the Administrative Agent, the Lender and the Committed Banks that on and as of
the date of the Proposed Advance:

 

(a)           all applicable conditions precedent
set forth in Article VI of the Credit Agreement have been satisfied;

 

(b)           each of its representations and
warranties contained in Section 5.1 of the Credit Agreement will be true
and correct as if made on and as of the date of such Advance;

 

(c)           no event will have occurred and is
continuing, or would result from the requested Advance, that constitutes an
Amortization Event or Unmatured Amortization Event;

 

XII-1

 

(d)           the Amortization Date has not occurred;
and

 

(e)           after giving effect to the Advance
requested below, the Aggregate Principal will not exceed the Borrowing Limit.

 

XII-2

 

IN WITNESS WHEREOF, the
Master Servicer, on behalf of the Borrower has caused this Notice of Conversion
to be executed and delivered as of this ____ day of ___________, _____.

 

	
   

  	
  LOUISIANA-PACIFIC
  CORPORATION,

  	 

	
   

  	
  as Master
  Servicer, on behalf of LP Receivables Corporation, as Borrower

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Name:

  	
   

  	
   

  	
   

  	 

	
   

  	
  Title:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

XII-3

 

EXHIBIT XIII

 

FORM OF ASSIGNMENT AND
ACCEPTANCE

 

Dated __________

 

Reference is made to the
Credit and Security Agreement dated as of November 15, 2001 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”) among LP
Receivables Corporation (the “Borrower”),
Louisiana-Pacific Corporation (the “Master
Servicer”), the Committed Banks named therein, Blue Ridge Asset
Funding Corporation, and Wachovia Bank N.A., as Administrative Agent. 
Capitalized terms defined in the Credit Agreement are used herein with the same
meanings.

 

[Name of
Non-Renewing Committed Bank] (the “Assignor”)
and [Name of Additional Committed Bank]
(the “Assignee”) agree as
follows:

 

1.              The Assignor hereby sells and assigns to the Assignee,
and the Assignee hereby purchases and assumes from the Assignor, that interest
in and to all of the Assignor’s rights and obligations under the Credit
Agreement as of the date hereof which represents the percentage interest
specified in Section 1 of Schedule 1 of all outstanding rights
and obligations of the Assignor under the Credit Agreement, including, without
limitation, such interest in the portion of the Aggregate Principal funded by
the Assignor.  After giving effect to such sale and assignment, the
portion of Aggregate Principal with respect to the Assignee will be as set
forth in Section 2 of Schedule 1.

 

2.              The Assignor (i) represents and warrants that it is the
legal and beneficial owner of the interest being assigned by it hereunder and
that such interest is free and clear of any adverse claim; (ii) makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any other
instrument or document furnished pursuant thereto; and (iii) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of Blue Ridge or the performance or observance by Blue
Ridge of any of its obligations under the Credit Agreement or any other
instrument or document furnished pursuant thereto.

 

3.              The Assignee (i) confirms that it has received a copy
of the Credit Agreement, together with copies of such financial statements and
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Assignment and Acceptance;
(ii) agrees that it will, independently and without reliance upon the
Administrative Agent, the Assignor or any other Committed Bank and based on
such documents and information as it shall deem appropriate at the time, continue
to make its own credit decisions in taking or not taking action under the
Credit Agreement; (iii) confirms that it is an Eligible Assignee; (iv)
appoints and authorizes the Administrative Agent to take such action as agent
on its behalf and to exercise such powers under the Credit Agreement as are
delegated

 

XIII-1

 

 to the Administrative Agent, by the terms
thereof, together with such powers as are reasonably incidental thereto; and
(v) agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Agreement are required to be performed by
it as a Committed Bank.

 

4.              Following the execution of this Assignment and
Acceptance by the Assignor and the Assignee, it will be delivered to the
Administrative Agent for acceptance and recording by the Administrative
Agent.  The effective date of this Assignment and Acceptance (the “Transfer Date”) shall be the date of
acceptance thereof by the Administrative Agent , unless a later date is
specified in Section 3 of Schedule 1 hereof.

 

5.              Upon such acceptance by the Administrative Agent and
upon such recording by the Administrative Agent, as of the Transfer Date, (i)
the Assignee shall be a party to the Agreement and, to the extent provided in
this Assignment and Acceptance, have the rights and obligations of a Committed
Bank thereunder and (ii) the Assignor shall, to the extent provided in this
Assignment and Acceptance, relinquish its rights and be released from its obligations
under the Credit Agreement.

 

6.              Upon such acceptance by the Administrative Agent and
upon such recording by the Administrative Agent, from and after the Transfer
Date, the Administrative Agent shall make, or cause to be made, all payments
under the Credit Agreement in respect of the interest assigned hereby
(including, without limitation, all payments of principal and interest with
respect thereto) to the Assignee.  The Assignor and Assignee shall make
all appropriate adjustments in payments under the Credit Agreement for periods
prior to the Transfer Date directly between themselves.

 

7.              This Assignment and Acceptance shall be governed by,
and construed in accordance with, the laws of the State of New York.

 

[remainder of page
intentionally left blank]

 

XIII-2

 

IN WITNESS WHEREOF, the
parties hereto have caused this Assignment and Acceptance to be executed by
their respective officers thereunto duly authorized, as of the date first above
written.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  [NAME
  OF ASSIGNOR]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Address for notices

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Address]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  [NAME
  OF ASSIGNEE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Address for notices

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  [Address]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Acknowledged and
  accepted

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  this

  	
   

  	
  day of 

  	
   

  	
  ,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WACHOVIA BANK, N.A.,

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  as Administrative Agent

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																

 

XIII-3

 

Schedule 1

to

Assignment and
Acceptance

Dated _________

 

Section 1.

 

Percentage Interest:                             ________%

 

 

Section 2.

 

Assignee’s Commitment                     $____________

 

Aggregate Principal

Owing to the Assignee:      $_____________

 

 

Section 3.

 

Transfer Date:
___________________

 

XIII-4

 

EXHIBIT XIV

 

FISCAL MONTHS

 

[to be attached]

 

XIV-1

 

EXHIBIT XV

 

MATERIAL ADVERSE EFFECT

 

Since June 30, 2001,
Louisiana-Pacific Corporation has filed the following reports with the
Securities and Exchange Commission:

 

1.    Quarterly Report on Form
10-Q filed on August 14, 2001.

2.    Current Report on Form 8-K
filed on August 13, 2001

3.    Current Report on Form 8-K
filed on July 20, 2001.

 

In addition, on October 24, 2001, Louisiana-Pacific
released a press release regarding its third quarter 2001 financial
results.  (A copy of such release is attached hereto.)

 

Except for facts disclosed or described in the
foregoing reports and press release, since June 30, 2001, no event has occurred
that would a material adverse effect on the financial condition or operations
of Louisiana-Pacific and its Subsidiaries, taken as a whole, or the ability of
Louisiana-Pacific to perform its obligations under this Agreement.

 

XV-1

 

SCHEDULE
A

 

DOCUMENTS TO BE DELIVERED
TO THE AGENT

 

ON OR PRIOR TO THE
CLOSING DATE

 

1.              Executed copies of the Credit and Security Agreement
and all other Transaction Documents, duly executed by the parties thereto.

 

2.              A Secretary’s certificate of each Loan Party and
Performance Guarantor certifying:

 

(a)           A copy of the Resolutions of the
Board of Directors of each Loan Party and Performance Guarantor authorizing
such Person’s execution, delivery and performance of the Transaction Documents
to which it is a party and the other documents to be delivered by it hereunder;

 

(b)           A copy of the Organizational
Documents of each Loan Party and Performance Guarantor (also certified, to the
extent that such documents are filed with any governmental authority, by the
Secretary of State of such Person’s jurisdiction of incorporation on or within
thirty (30) days prior to closing);

 

(c)           Good Standing Certificates for each
Loan Party and Performance Guarantor issued by the Secretaries of State of such
Person’s state of formation and each jurisdiction where it has material
operations, each of which is listed below, dated on or within thirty (30) days
prior to closing:

 

a.     
Borrower: Oregon, Delaware

 

b.              
Master Servicer/Performance Guarantor: Alabama, California, Colorado, Delaware,
Florida, Georgia, Idaho, Indiana, Louisiana, Maine, Michigan, Minnesota,
Mississippi, Montana, North Carolina, Ohio, Oregon, Texas, Washington,
Wisconsin, Wyoming

 

(d)           The names and signatures of the
officers authorized on its behalf to execute this Agreement and any other
Transaction Documents to which it is a party.

 

3.              Pre-filing state and federal tax lien, judgment lien
and UCC lien searches against each Loan Party dated on or within thirty (30)
days of the Closing Date from the following jurisdictions:

 

a.     
Borrower: Delaware, Oregon, Multnomah County, Oregon

 

b.       Master
Servicer:  Delaware, Oregon, Multnomah County, Oregon

 

4.              Time stamped receipt copies of proper financing
statements, duly filed under the UCC on or before the date of the initial
Advance in all jurisdictions as may be necessary or, in the opinion of the
Administrative Agent, desirable, under the UCC of all appropriate

 

A-1

 

jurisdictions or any comparable law in order to
perfect the ownership interests contemplated by this Agreement and each other
Transaction Document.

 

5.              Time stamped receipt copies of proper UCC termination
statements, if any, necessary to release all security interests and other
rights of any Person in the Receivables, Contracts or Related Security
previously granted by Borrower or any Originator.

 

6.              Executed copies of Collection Account Agreements for
each Lock-Box and Collection Account.

 

7.              A favorable opinion of legal counsel for the Loan
Parties, Performance Guarantor and the Originators reasonably acceptable to the
Administrative Agent which addresses the following matters and such other
matters as the Administrative Agent may reasonably request:

 

(a)           due authorization, execution,
delivery, enforceability and other corporate matters with respect to each of
the Loan Parties and the Originators;

 

(b)           the creation of a first priority
perfected security interest in favor of the Administrative Agent for the
benefit of the Secured Parties in (1) all of the Receivables and Related
Security and (2) all proceeds of any of the foregoing;

 

(c)           the existence of a “true sale” of the
Receivables from each Originator to the Borrower under the Receivables Sale
Agreement;

 

(d)           the inapplicability of the doctrine
of substantive consolidation to the Borrower and any Originator or the Master
Servicer in connection with any bankruptcy proceeding involving any Loan Party
or any Originator.

 

8.              A Compliance Certificate of the chief financial officer
of each Loan Party, each Originator and Performance Guarantor certifying that,
as of the closing date, no Termination Event or Unmatured Termination Event
exists and is continuing.

 

9.              The Fee Letter.

 

10.           A Monthly Report as at _____________,
2001.

 

11.           Executed copies of (i) all consents
from and authorizations by any Persons and (ii) all waivers and amendments to
existing credit facilities, that are necessary in connection with this
Agreement and all other Transaction Documents.

 

12.           If applicable, a direction letter
executed by each of the Loan Parties and each of the Originators authorizing
the Administrative Agent and Blue Ridge, and directing warehousemen to allow
the Administrative Agent and Blue Ridge to inspect and make copies from such
Loan Party’s or Originator’s books and records maintained at off-site data
processing or storage facilities.

 

13.           The Liquidity Agreement, duly
executed by each of the parties thereto.

 

A-2

 

14.           If applicable, for each Liquidity
Bank that is not incorporated under the laws of the United States of America,
or a state thereof, two duly completed copies of United States Internal Revenue
Service Form W-8BEN or W-8ECI, as applicable, certifying in either case that
the Committed Bank is entitled to receive payments under the Agreement without
deduction or withholding of any United States federal income taxes.

 

A-3

 

FIRST AMENDMENT

TO

RECEIVABLES SALE AGREEMENT

 

This First Amendment to
Receivables Sale Agreement (this “Agreement”) is made and entered into on
December __, 2001, by Louisiana-Pacific
Corporation (“Louisiana-Pacific”), LP Wood Polymers, Inc. (“LP Wood,” and
together with Louisiana-Pacific, the “Originators”) and LP Receivables
Corporation (“Buyer”).

 

RECITALS:

 

WHEREAS, the Originators and
Buyers have entered into the Receivable Sale Agreement (the “Agreement”) dated
as of November 15, 2001;

 

WHEREAS, LP Wood desires to
dissolve, cease its corporate existence, cease to be an Originator and cease to
sell Receivables (as defined in the Agreement) to Buyer under the Agreement,
all effective as of the close of business on December 31, 2001 (the “Effective
Time”);

 

WHEREAS, the dissolution of
LP Wood may constitute a breach of, among other provisions, Sections 4.1(c),
4.2(a) and 5.1(d) of the Agreement, and the Originators and Buyer desire to
amend the Agreement on the terms and conditions set forth herein to reflect the
dissolution of LP Wood effective as of the Effective Time.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein, the
Originators and Buyers hereby agree as follows:

 

1.             Capitalized terms used but not defined in this Amendment
shall have the meanings assigned to them in the Agreement.

 

2.             Buyer hereby approves the dissolution of LP Wood
effective as of the Effective Time and waives any breach, default, Termination
Event or Unmatured Termination Event occurring under Section 4.1(c), 4.2(a) or
5.1(d) of the Agreement as the result thereof.

 

3.             Effective as of the Effective Time, all references to LP
Wood in the Agreement shall be deemed stricken and of no further force or
effect, LP Wood shall cease to be a party to the Agreement and
LP Wood shall have no further rights, duties, obligations or liabilities
under the Agreement, other than rights, duties, liabilities or obligations
accruing prior to the Effective Time; provided, however, the indemnification
and payment provisions of Article VI of the Agreement and Section 7.5
of the Agreement shall survive after the Effective Time.  Without limiting the generality of the
foregoing, LP Wood shall have no right or obligation to sell, transfer or
assign Receivables to Buyer under the Agreement after the Effective Time.  The provisions of this Amendment shall not,
however, affect any transfer, sale or assignment of Receivables by LP Wood to
Buyer under the Agreement prior to the Effective Time.

 

 

4.             This Amendment shall be effective only upon the
execution and delivery by Wachovia Bank, N.A., in its capacities as
Administrative Agent for the benefit of the Secured Parties, Committed Bank and
Liquidity Bank, and Blue Ridge Asset Funding Corporation of the of the consent
attached hereto.

 

5              Except as modified hereby, the Agreement shall remain
in full force and effect.  In the event
of any conflict between this Amendment and the Agreement, this Amendment shall
control.

 

EXECUTED as of the date
first above written.

 

	
   

  	
  LOUISIANA-PACIFIC
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LP WOOD POLYMERS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LP RECEIVABLES CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

 

2

 

CONSENT

 

The undersigned hereby
consent and agree to the dissolution of LP Wood Polymers, Inc., the
amendment of the Receivables Sale Agreement dated as of November 15, 2001,
by and among LP Wood Polymers, Inc., Louisiana-Pacific Corporation and
LP Receivables Corporation, pursuant to the First Amendment to Receivables
Sale Agreement (the “Amendment”) dated as of December ___, 2001, and the
waivers contained in the Amendment.  In
addition, the undersigned hereby waive any breach, default, Amortization Event
or Unmatured Amortization Event occurring under Section 9.1(g) of the Credit
Agreement as a result of the dissolution of LP Wood Polymers, Inc.

 

Executed on December __,
2001.

 

	
   

  	
  WACHOVIA BANK, N.A.,

  
	
   

  	
  as Administrative Agent
  for the Secured Parties,

  
	
   

  	
  Committed Bank and

  
	
   

  	
  Liquidity Bank

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BLUE RIDGE ASSET FUNDING
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:SECOND AMENDMENT

TO STANDBY
PURCHASE

AND NOTE SUPPORT
AGREEMENT

 

THIS SECOND
AMENDMENT (this “Second Amendment”), dated as of November 15, 2001, is
entered into by and among LOUISIANA-PACIFIC CORPORATION, a Delaware Corporation
(“L-P”), BANK OF AMERICA, N.A., a national banking association (“BofA”),
and CANADIAN IMPERIAL BANK OF COMMERCE, a Canadian chartered bank (“CIBC”).

 

RECITALS:

 

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

 

B.         L-P is concurrently herewith
terminating the Credit Agreement as defined in the Agreement prior to this
Second Amendment and entering into a senior revolving credit facility with
BofA, as administrative agent, and a syndicate of banks (the “New Credit
Agreement”).  In connection with
such transactions, L-P, BofA and CIBC wish to amend the Agreement subject to
the terms and conditions hereto.

 

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

 

1.          Defined Terms.

 

(a)       The Agreement is hereby amended to add
the following defined terms:

 

“Average Inventory
Coverage Ratio” shall mean the Inventory Coverage Ratio averaged over any
applicable month.

 

“BofA Canadian
Credit Agreement” means those various credit agreements, each dated September
24, 1999 between Bank of America Canada and certain borrowers.

 

“BofA Pledged
Installment Notes” means, collectively, those Installment Notes numbered 0573,
0575, 0577, 0578, 0579, 0580, 0600 and 0601 (with respect to any such Installment
Note for so long as pledged as collateral for the amounts payable under the
BofA Canadian Credit Agreements).

 

1

 

“Canadian Credit
Agreements” means the BofA Canadian Credit Agreements and the CIBC Canadian
Credit Agreements.

 

“Canadian Dollars”
means lawful money of Canada.

 

“Canadian Dollar
Equivalent” means, as of any date of determination, the equivalent amount in
Canadian Dollars as determined by reference to the rate published in the Wall
Street Journal on such date as the rate for purchase of Canadian Dollars with
U.S. Dollars.

 

“CIBC Canadian
Credit Agreements” means those various credit agreements each dated September
24, 1999 between CIBC and certain borrowers.

 

“CIBC Pledged
Installment Notes” means, collectively, those Installment Notes numbered 0586,
0587, 0588, 0589, 0590, 0591, 0592 and 0593 (with respect to any such
Installment Note, for so long as pledged as collateral for the amounts payable
under the CIBC Canadian Credit Agreements).

 

“Collateral Agent”
shall have the meaning given such term in the Security Agreement.

 

“Eligible
Inventory” shall mean Inventory as defined in the California Uniform Commercial
Code in which the Collateral Agent has a perfected first priority security
interest except for Liens permitted under Sections 7.01(c) and 7.01(d) of the
Credit Agreement but excluding (a) Inventory which is not owned by L-P free and
clear of all security interests, liens, encumbrances except for Liens permitted
under the Security Agreement or the Credit Agreement or claims asserted by any
third party, and (b) Inventory which the Collateral Agent, in its reasonable
discretion, deems to be obsolete, slow-moving, unsalable, damaged, defective or
unfit for further processing.

 

“Inventory
Coverage Ratio” shall mean the ratio of (y) the Inventory Value to (x) the
aggregate principal amount outstanding under the Pledged Installment Notes as
of the date such Inventory Value was measured.

 

“Inventory Value”
shall mean, as of any measurement date under Paragraph 2(a)(ii), the Canadian
Dollar Equivalent (calculated as of such date) of the value of the Eligible
Inventory, calculated based on generally accepted accounting principles,
excluding the Canadian Dollar Equivalent (calculated as of such date) of the
LIFO reserve amount recorded on the Company’s books and records.

 

“Pledged
Installment Notes” means, collectively, the BofA Pledged Installment Notes and
the CIBC Pledged Installment Notes.

 

2

 

“Second Amendment”
means the Second Amendment to Standby Purchase and Note Support Agreement dated
as of November 15, 2001 among L-P and the Standby Lenders.

 

“Standby Lender”
means either of CIBC or BofA, in their capacity as parties to the Agreement, or
any of their successors or permitted assigns under Paragraph 3(f) of the
Agreement; and “Standby Lenders” shall mean all such parties collectively.

 

“U.S. Dollars”
means lawful money of the United States.

 

“U.S. Dollar
Equivalent” means, as of any date of determination, the equivalent amount in
U.S.  Dollars as determined by reference
to the rate published in the Wall Street Journal on such date as the rate for
purchase of U.S. Dollars with Canadian Dollars.

 

(b)        Unless otherwise defined herein, capitalized
terms used in this Amendment shall have the meanings assigned to them in the
Agreement.

 

2.         Other Amendments to Agreement.

 

(a)        The Agreement is hereby amended by
adding the word “Pledged” before the two instances of the term “Installment
Notes” in the first sentence of Paragraph 2 and before the two instances of
such term in Paragraph 2(c).

 

(b)       The Agreement is hereby amended by
deleting Paragraphs 2(a) and 2(b) thereof in their entirety and replacing them
with the following:

 

(a)       Covenants by L-P.

 

(i)     L-P shall comply with all of the covenants
set forth under the headings “Affirmative Covenants” and “Negative Covenants”
in the credit agreement dated as of November 15, 2001 among L-P, the several
financial institutions from time to time party thereto (collectively, the
“Banks”) and BofA, as agent for the Banks (without giving effect to any waiver
or amendment thereto which has not been consented to by the Standby Lenders,
the “Credit Agreement”), subject in each case to any applicable grace periods provided
for in the Credit Agreement, and except for the covenants in Sections 6.01(d)
and (e), 6.06(d), and 6.13 of the Credit Agreement.  The covenants described in the immediately preceding sentence, as
from time to time constituted pursuant to the immediately preceding sentence,
are incorporated herein by this reference with the same force and effect as
though they were set forth herein in their entirety, and shall be effective for
the purposes of this Agreement irrespective of any further waiver, amendment,
expiration, termination, invalidity or unenforceability of the Credit
Agreement.  Any waiver or amendment of
such covenants as incorporated herein shall require consent of the Standby
Lenders to be effective as a waiver or amendment of such covenants as 

 

3

 

 incorporated herein, notwithstanding that
such amendment or waiver may have been become effective with respect to the
Credit Agreement.  L-P shall give prompt
written notice to each Standby Lender of any pending or proposed modification
to the Credit Agreement and with respect to the entering into of a new
agreement replacing all or any part of the financing provided under the Credit
Agreement, and shall also promptly send a copy to each Standby Lender of any
notice of default under the Credit Agreement which it may receive from
Administrative Agent.  Concurrently with L-P obtaining the approval,
waiver or consent, as applicable, with respect to an amendment of the Credit
Agreement or with respect to the entering into of a new agreement replacing all
or any part of the financing provided under the Credit Agreement, L-P shall
offer the terms of such amendment or new agreement, as the case may be, to the
Standby Lenders.

 

(ii)     L-P shall maintain an Average Inventory
Coverage Ratio, measured for and as of the end of each month, equal to not less
than (i) for each January, February and March, 1:8:1:0, (ii) for each April,
May and June, 1.9 to 1.0, and (iii) for each other month, 2.0 to 1.0.  L-P shall deliver to Collateral Agent and
the Standby Lenders detailed calculations of compliance with the foregoing
covenant, certified by a Responsible Officer of L-P as presenting, in all
material respects, such calculations fairly and in a manner consistent with other
such calculations in all material respects, concurrently with delivery and
certification of the monthly financial statements delivered pursuant to Section
6.01(c) of the Credit Agreement.

 

(b)          Representations of L-P.

 

(i)      L-P represents and warrants to BofA and
CIBC that, as of the Effective Date under and as defined in the Second
Amendment, the representations and warranties made by L-P set forth under the
heading “Representations and Warranties” in the Credit Agreement are true and
correct, except that L-P does not herein make the representations and
warranties set forth in Section 5.09 and in the last two sentences of Section
5.08 of the Credit Agreement.

 

(c)     Paragraph 2(d) is hereby amended by adding
the words “, in the Security Agreement or in the Second Lien Deed of
Trust”  after the words “Credit
Agreement.”

 

(d)     Paragraph 3(c) is hereby amended by adding
the words “or by facsimile” before the words “to the parties”; adding the words
“or facsimile numbers” after the word “addresses”; adding the words “or
facsimile number” after the word “address”; and deleting sections (i), (ii) and
(iii) thereof in their entirety and replacing them with the following:

 

4

 

(i)         if to L-P, to

 

Louisiana-Pacific
Corporation

805 SW Broadway,
Suite 700

Portland,
Oregon  97205

Attention:  Vice President and Chief Financial Officer

Facsimile:  (503) 821-5322

 

With a courtesy
copy to:

 

Brobeck, Phleger
& Harrison LLP

One Market, Spear
Street Tower

San Francisco,
California  94105

Attention:  Douglas M. Young

Facsimile:  (415) 442-1010

 

(ii)         if to BofA, to

 

Bank of America,
N.A.

555 California
Street, 41St. Floor

Mail Code  CA5-705-12-12

San Francisco,
California  94104

Attention:  Mr. Michael J. Balok

Facsimile:  (415) 622-4585

 

With a courtesy
copy to:

 

Morrison &
Foerster LLP

425 Market Street

San Francisco,
California  94105-2482

Attention:  Keith C. Wetmore

Facsimile:  (415) 268-7522

 

(iii)        if to CIBC, to

 

Canadian Imperial
Bank of Commerce

BCE Place, P.O.
Box 500

161 Bay Street,
8th Floor

Toronto,
Ontario  M5J 258

Attention:  Managing Director, Credit Capital Markets

Facsimile:  (416) 956-6680

 

5

 

(e)        The Agreement is hereby amended to add
the following Paragraph 4 thereof:

 

4.          Security.  At all times after the Effective Date under
and as defined in the Second Amendment, all obligations of L-P to BofA and CIBC
under this Agreement shall be secured in accordance with the Collateral Agency
and Security Agreement (the “Security Agreement”) and with the Second Lien Deed
of Trust, Security Agreement, Timber Filing, and Assignment of Rental (the
“Second Lien Deed of Trust”), each by L-P in favor of BofA and CIBC and dated
as of November 15, 2001.

 

(f)         The Agreement is hereby amended to add
the following Paragraph 5 thereof:

 

5.          Obligations Absolute; Waivers.  L-P agrees that BofA and CIBC may, at any
time and from time to time, and without notice to L-P, make any agreement with
L-P Acquisition or with any other person or entity that has any liability with
respect to any of the Pledged Installment Notes or providing collateral as
security for the Pledged Installment Notes, for the extension, renewal, payment
compromise, discharge or release of the obligations under the Pledged Installment
Notes or any collateral (in whole or in part), or for any modification or
amendment of the terms thereof or of any instrument or agreement evidencing or
relating to the obligations under the Pledged Installment Notes or the
provision of collateral, all without in any way impairing, releasing,
discharging or otherwise affecting the obligations of L-P under this
Agreement.  L-P waives any defense
arising by reason of any disability or other defense of L-P Acquisition or any
other person or entity that has any liability with respect to any of the
Pledged Installment Notes, or the cessation from any cause whatsoever of the
liability of any such party, or any claim that L-P’s obligations exceed or are
more burdensome than those of L-P Acquisition, and L-P waives the benefit of
any statute of limitations affecting the liability of L-P hereunder.  L-P waives any right to enforce any remedy
that BofA or CIBC now has or may hereafter have against L-P Acquisition and
waives any benefit of any right to participate in any security now or hereafter
held by BofA or CIBC.  Further, L-P
consents to the taking of, or failure to take, any action that might in any
manner or to any extent vary the risks of L-P under this Agreement or that, but
for this provision, might operate as a discharge of L-P.

 

(g)        The Agreement is hereby amended to add
the following Paragraph 6 thereof:

 

6

 

6.          Fees for Services.

 

(a)        L-P covenants and agrees to pay to BofA
administrative and collateral agent fees with respect to this Agreement and the
security provided for hereunder.  Such
fees shall become due and payable on the first Interest Payment Date as such
term is defined in the Installment Notes after the date of the Second Amendment
under the Installment Notes and on each such Installment Payment Date
thereafter and shall be payable in U.S. Dollars in an amount equal to 3.000%
per annum on the U.S. Dollar Equivalent (calculated as of the applicable
Interest Payment Date) of the principal amount outstanding during the Interest
Period then ended of the BofA Pledged Installment Notes less the U.S. Dollar
Equivalent (calculated as of the applicable Interest Payment Date) of the
amount payable under BofA Pledged Installment Notes on each such Interest Payment
Date on account of the “Margin” as such term is defined in the BofA Pledged
Installment Notes; provided that, if L-P’s long-term unsecured debt rating
falls to a level equal to or below BB- by S&P and Ba3 by Moody’s, then the
foregoing reference to 3.000% per annum shall thereupon become 3.750% per
annum.

 

(b)        L-P covenants and agrees to pay to CIBC
administrative and documentation fees with respect to the Canadian Credit
Agreements and the security therefor, including the Installment Notes.  Such fees shall become due and payable on
the first Interest Payment Date after the date of the Second Amendment hereof
under the Installment Notes and on each such Interest Payment Date thereafter
and shall be an amount equal to 3.000% per annum on the principal amount
outstanding during the Interest Period then ended of the CIBC Pledged
Installment Notes less the amount payable under the CIBC Pledged Installment
Notes on each such Interest Payment Date on account of the “Margin” as such
term is defined in the CIBC Pledged Installment Notes; provided that, if L-P’s
long-term unsecured debt rating falls to a level equal to or below BB- by
S&P and Ba3 by Moody’s, then the foregoing reference to 3.000% per annum
shall thereupon become 3.750% per annum.

 

(c)        Interest shall by payable by L-P with
respect to any fee hereunder which is not timely paid  at a rate equal to the Default Rate applicable to Base Rate Loans
(each as defined under the Credit Agreement) and shall be payable upon demand
to the Standby Lender or Standby Lenders for whose account such fee is payable.

 

(d)        If L-P shall be required by law or any
authority or agency charged with the administration thereof to withhold or
deduct any taxes or other amounts (“Withholding Taxes”) imposed or levied by or
on behalf of the United States or any state thereof or any authority or agency
thereof from or in respect of the fees payable under clause (b) of this
Paragraph 6, then L-P shall pay to CIBC such additional amounts as may be
necessary

 

7

 

so that after
making all required withholdings or deductions of Withholding Taxes CIBC
receives from L-P the amount of fees which would otherwise have been receivable
by CIBC absent any such Withholding Taxes; provided however that no such
additional amounts shall be payable if the liability for such Withholding Taxes
arises as a result of CIBC performing any of the services for which such fee is
payable in the United States.

 

(h)        The Agreement is hereby amended to add
the following Paragraph 7 thereof:

 

7.        Confidentiality.  The Collateral Agent and each Standby Lender
agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its and its Affiliates’ (as
defined in the Credit Agreement) directors, officers, employees and agents,
including accountants, legal counsel and other advisors (it being understood
that the Persons (as defined in the Credit Agreement) 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; (c) to the extent 
required by applicable laws or regulations or by any subpoena or similar
legal process; (d) to any other party to this Agreement or to any Lender (as
defined in the Credit Agreement); (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder; (f) subject to an agreement containing
provisions substantially the same as those of this Paragraph 7, to any
successor or assign or potential successor or assign of Collateral Agent or
Standby Lender or potential participant in any Standby Lender’s rights or
obligations under this Agreement; (g) with the prior written consent of L-P;
(h) to the extent such Information (i) becomes publicly available other than as
a result of a breach of this Paragraph 7 or (ii) becomes available to it on a
nonconfidential basis from a source other than L-P or any of its Subsidiaries
(as defined in the Credit Agreement), provided that such source is not bound by
a confidentiality agreement with L-P or any of its Subsidiaries known to such
Collateral Agent or Standby Lender; or (i) to the National Association of
Insurance Commissioners or any other similar organization or any nationally
recognized rating agency that requires access to information about a Standby
Lender’s or its Affiliates’ investment portfolio in connection with ratings
issued with respect to such Standby Lender or its Affiliates.  In addition, the Collateral Agent and the
Standby Lenders may disclose the existence of this Agreement and information
about this Agreement to market data collectors, similar service providers to
the lending industry, and service providers to the Collateral Agent and the
Standby Lenders in connection with the administration and management of this
Agreement, the Security Agreement, and the Second Lien Deed of Trust.  For the purposes of this 

 

8

 

Paragraph 7,
“Information” means all information received from L-P or any of its
Subsidiaries relating to L-P or any of its Subsidiaries or their respective
businesses, other than any such information that is available to the Collateral
Agent or any Standby Lender on a nonconfidential basis prior to disclosure by
L-P; provided that, in the case of information received from L-P after the date
hereof, such information is clearly identified in writing at the time of
delivery as confidential.  Any Person
required to maintain the confidentiality of Information as provided in this
Paragraph 7 shall be considered to have complied with its obligation to do so
if such Person has taken normal and reasonable precautions and exercised
reasonably due care to maintain the confidentiality of such Information.

 

3.          Representations and Warranties.  L-P hereby represents and warrants as
follows:

 

(a)       No breach or default has occurred and is
continuing under the Agreement, as amended by this Second Amendment.

 

(b)      The execution, delivery and performance of
this Second Amendment by L-P have been duly authorized by all necessary
corporate and other action and do not and will not require any registration
with, consent or approval of, notice to or action by, any person (including any
governmental agency) in order to be effective and enforceable.  The Agreement, as amended by this Second
Amendment, constitutes the legal, valid and binding obligation of L-P,
enforceable against L-P in accordance with its respective terms, without
defense, counterclaim or offset, except as enforceability may be limited by
Debtor Relief Laws (as defined in the New Credit Agreement) or by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law).

 

(c)      All its representations and warranties
contained in the Agreement as amended by this Second Amendment are true and
correct as though made on and as of the Effective Date (except to the extent
such representations and warranties specifically relate to an earlier date, in
which case they were true and correct as of such earlier date).

 

(d)      It is entering into this Second Amendment
on the basis of its own investigation and for its own reasons, without reliance
upon BofA or CIBC or any other person.

 

4.            Effective Date.  This Second Amendment will become effective
as of the date (the “Effective Date”) on which BofA and CIBC have, with
respect to each of the following items, either received such item in form and
substance acceptable to BofA and CIBC, or waived delivery of such item:

 

(a)      an original or facsimile of this Second
Amendment, duly executed by BofA, CIBC and L-P;

 

9

 

(b)      evidence that all conditions precedent to
the effectiveness of the New Credit Agreement other than the effectiveness of
this Second Amendment have occurred or been waived pursuant to the terms of the
New Credit Agreement;

 

(c)      an original or facsimile of the Second
Lien Deed of Trust, Security Agreement, Timber Filing and Assignment of Rental
dated as of the date hereof, duly executed by L-P and duly notarized, in favor
of BofA and CIBC (the “Second Lien Deed of Trust”);

 

(d)      an original or facsimile of the Security
Agreement dated as of the date hereof, duly executed by L-P in favor of BofA
and CIBC (the “Security Agreement”);

 

(e)      UCC financing statements, duly executed by
L-P if required, and otherwise in suitable form to be filed, registered or
recorded as necessary or advisable to perfect the security interests created by
the Security Agreement;

 

(f)       written advice relating to the security
interests created by the Security Agreement and judgment searches as BofA and
CIBC may reasonably request with respect to any of the collateral under the
Security Agreement, and evidence that all actions necessary or, in the
reasonable opinion of BofA or CIBC, desirable to perfect and protect the first
priority security interest created by the Security Agreement have been taken;
and

 

(g)      an opinion of counsel to L-P substantially
in the form of Exhibit A hereto.

 

5.           Miscellaneous.

 

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

 

(b)     L-P hereby agrees that its obligations
under the Agreement remain in effect and are not impaired, released, discharged
or otherwise affected by the amendments to the Canadian Credit
Agreements being made concurrently herewith, and acknowledges and agrees that
any future amendments made to the Canadian Credit Agreements also shall not so
affect its obligations under the Agreement.

 

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

 

10

 

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

 

(e)      The parties hereto acknowledge and agree
that, notwithstanding anything to the contrary herein, in the Agreement (as
amended hereby and as may be amended, supplemented, or modified from time to
time), or in any other document, L-P is not, and shall not be deemed, a
guarantor, surety or indemnitor with respect to any obligation arising under or
in connection with any of the Canadian Credit Agreements (as they may be
amended, supplemented, or modified from time to time).

 

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

 

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

 

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

 

(i)       L-P hereby covenants to pay or to
reimburse BofA and CIBC, upon demand, for all reasonable costs and expenses
(including reasonable attorney fees and expenses) incurred in connection with
(i) the development, preparation, negotiation, execution and delivery of this
Second Amendment, the Security Agreement, the Second Lien Deed of Trust, any
UCC financing statements reasonably required by the Collateral Agent with
respect to the personal property collateral under the Second Lien Deed of
Trust, and any other amendments or other documents relating to any of the
foregoing, and (ii) the recording or filing of the Second Lien Deed of Trust
with the respective thirteen counties in Texas and the filing of, and of-record
searches with respect to, such UCC financing statements.

 

(j)       L-P and each Standby Lender shall use
their respective reasonable efforts to cause a fully executed Amendment No. 2
to each of the Canadian Credit Agreements to be executed and delivered not
later than December 1, 2001.  L-P shall
use its best efforts to assist the Collateral Agent in completing the recording
and filing referenced in Section 5(i) hereof as soon as practicable after the
Effective Date.

 

11

 

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

 

	
   

  	
  LOUISIANA-PACIFIC CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  CANADIAN IMPERIAL BANK OF COMMERCE

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
								

 

12

 

EXHIBIT A

 

FORM OF OPINION OF
COUNSEL TO L-P

 

[See attached.]

 

13

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