Fiber Supply Agreement - Del-Tin Fiber LLC and Deltic Farm & Timber Co. Inc.


                            FIBER SUPPLY AGREEMENT


               THIS FIBER SUPPLY AGREEMENT is entered into as of February
21, 1995, between Del-Tin Fiber L.L.C., an Arkansas limited liability
company ('Del-Tin'), and Deltic Farm & Timber Co., Inc., an Arkansas
corporation ('Deltic').

A.    Del-Tin plans to construct, own and operate a facility (the 'Facility')
      to manufacture medium density fiberboard ('MDF').

B.    Deltic owns a fifty percent membership interest in Del-Tin.  Deltic has
      approximately 313,000 acres of timberland in Arkansas, and produces
      sawdust, shavings and chips (collectively, 'Wood Fiber') from two
      sawmills and a chipping facility.

C.    It is projected that the Facility will require approximately 450,000
      tons of Wood Fiber per year when it is operating at full capacity.

D.    It is projected that Deltic will produce approximately 200,000 tons of
      residue chips per year from its sawmill in Waldo, Arkansas (the 'Waldo
      Residue Chips'), after addition of second shift at the Waldo sawmill.

E.    Del-Tin desires to secure a supply of Wood Fiber for the Facility, and
      Deltic desires to supply Wood Fiber to Del-Tin.

               In consideration of the mutual covenants and agreements set
forth herein, the parties agree as follows:

1.    Fiber Supply.

      1.1   Preferred Supplier.  Deltic shall be the preferred supplier of
            Wood Fiber to Del-Tin.  Del-Tin shall purchase residue chips from
            third parties only to the extent Del-Tin's residue chip
            requirements exceed the quantity of Waldo Residue Chips made
            available to Del-Tin in accordance with the terms of this
            Agreement.

      1.2   Residue Chips from Waldo Sawmill.  Deltic agrees to sell to
            Del-Tin, and Del-Tin agrees to purchase from Deltic, all Waldo
            Residue Chips.  Notwithstanding the foregoing, Deltic may, at its
            option, withhold up to 10% of the Waldo Residue Chips.  The
            delivered price (F.O.B. Del-Tin's facility) for Waldo Residue
            Chips shall approximate the weighted average delivered price of
            like-kind residue chips available to Del-Tin from third parties
            located within a 70 mile radius of the facility.  Prior to the
            Commencement Date, and prior to the commencement of each calendar
            year thereafter, Deltic and Del-Tin shall agree upon the delivered
            price for Waldo Residue Chips.  The agreed price shall be firm
            until the beginning of the next calendar year.

       1.3  Secondary Fiber.  Del-Tin shall have first call on Wood Fiber from
            the following Deltic secondary sources (collectively, 'Secondary
            Fiber'):

            (a)   residue chips produced at Deltic's sawmill in Ola, Arkansas;

            (b)   roundwood chips produced at Deltic's chipping facility in
                  Waldo, Arkansas; and

            (c)   shavings and/or sawdust produced at Deltic's sawmill in
                  Waldo, Arkansas.

            Any Secondary Fiber so called by Del-Tin shall be sold at market
            prices F.O.B. Deltic's facilities.  Deltic shall not be required
            to breach any contract or agreement to accommodate a call for
            Secondary Fiber by Del-Tin.

       1.4  Displacement by Deltic.  At any time on ten days' notice, Deltic
            may displace any or all Wood Fiber being acquired by Del-Tin from
            third parties ('Third Party Fiber') with a like volume of like
            kind Secondary Fiber; provided, however, that Del-Tin shall not be
            required to breach any contract or agreement to accommodate such
            displacement.  Any Secondary Fiber so put by Deltic shall be at
            the same total cost to Del-Tin (inclusive of transportation) as
            the Third Party Fiber being displaced.

2.          Term.

            2.1   Definitions.  The following terms shall have the meanings
                  indicated:

                  2.1.1   'Start-Up Date' means the first day of production of
                          MDF at the Facility.

                  2.1.2   'Commencement Date' means a date approximately 60
                          days prior to the Start-Up Date.  The
                          Commencement Date shall be set by agreement
                          between Del-Tin and Deltic.

                  2.1.3   'Ramp-Up Period' means the period from the
                          Commencement Date to the Start-Up Date, and
                          continuing for so long thereafter as may be
                          necessary to allow the Facility to reach full
                          production.

            2.2   Term; Renewal; Termination.  The Initial term of this
                  Agreement shall commence on the Commencement Date and shall
                  continue for a period of five years from the Start-Up Date.
                  The term of this Agreement shall be automatically extended
                  for successive five year periods unless either party
                  notifies the other in writing at least 180 days prior to the
                  effective date of such extension of its desire not to extend
                  the term of this Agreement.  Notwithstanding the foregoing,
                  this Agreement may be terminated by either party on 60 days'
                  notice to the other if Deltic ceases to own at least a 50
                  percent membership interest in Del-Tin.

            2.3   Obligations During Ramp-Up Period.  Deltic acknowledges that
                  Del-Tin's chip requirements during the Ramp-Up Period are
                  projected to be less than will be required when the Facility
                  reaches full production.  Accordingly, during the Ramp-Up
                  Period, the purchase and sale obligations of Del-Tin and
                  Deltic, respectively, shall be reduced to the extent that
                  Del-Tin's chip requirements are less than Deltic's output
                  capabilities for Waldo Residue Chips.

3.          Deltic's Obligations.

            3.1   Order Acceptance.  To the extent of Deltic's production
                  capability (subject to the above holdback provisions),
                  Deltic shall accept and fill on a timely basis orders from
                  Del-Tin for Waldo Residue Chips.

            3.2   Regularity.  Deltic shall endeavor to deliver Del-Tin's
                  orders for Wood Fiber in regular, uniform quantities unless
                  delivery in such a fashion is not possible due to events
                  beyond Deltic's reasonable control.

            3.3   Transportation.  Deltic agrees to make all necessary and
                  reasonable arrangements to provide an adequate supply of
                  suitably constructed and equipped trucks to transport Wood
                  Fiber from its facilities to Del-Tin.

4.          Del-Tin's Obligations.

            4.1   Wood Fiber Usage Budget.  Del-Tin shall prepare and submit
                  to Deltic a budget containing Wood Fiber usage projections
                  for the Facility.  The first Wood Fiber usage budget shall
                  be submitted to Deltic at least 30 days prior to the
                  estimated Start-Up Date.  Thereafter, a Wood Fiber usage
                  budget shall be submitted to Deltic annually at least 30
                  days prior to the beginning of each calendar year.

            4.2   Regularity.  Del-Tin shall endeavor to purchase Wood Fiber
                  from Deltic in regular, uniform quantities unless purchases
                  in such a fashion are not possible due to events beyond
                  Del-Tin's reasonable control.

5.          Payment.

            5.1   Basis for Payment.  The gross and tare weights of all
                  shipments of Wood Fiber to Del-Tin shall be determined by
                  means of Del-Tin's truck scales which will weigh and
                  automatically record on weight scale tickets the weight of
                  the trucks and the cargo therein.  Each such weight scale
                  ticket shall show the date and time of delivery and
                  departure.

            5.2   Payment Schedule.  Del-Tin agrees to pay Deltic weekly for
                  all Wood Fiber sold and delivered to Del-Tin by Deltic.
                  Payments shall be calculated based upon the weight scale
                  tickets, and shall be due and payable on Friday of each
                  week, for shipments received the next preceding week.
                  Accompanying each payment, Del-Tin agrees to furnish Deltic
                  with the appropriate weight scale tickets evidencing the
                  quantities of Wood Fiber delivered and accepted by Del-Tin
                  during the next preceding calendar week.

6.          Title and Risk of Loss.

            Title to Wood Fiber shall pass to Del-Tin when the Wood Fiber
            is unloaded at Del-Tin's facility.  Responsibility for loss of,
            or damage to, the Wood Fiber shall pass from Deltic to Del-Tin
            upon the passage of title.

7.          Insurance.

            7.1   Liability Insurance.  Deltic shall submit to Del-Tin
                  certificates evidencing that insurance of the types and the
                  amounts specified below has been obtained by Deltic, and
                  Deltic shall maintain such insurance at all times during the
                  term of this Agreement or any extension or renewal thereof:

                  (a)   Statutory workers' compensation coverage, and
                        employers liability coverage with minimum limits of
                        liability of $500,000.

                  (b)   Commercial general liability coverage with minimum
                        limits of $1,000,000 per occurrence bodily injury
                        liability and property damage liability combined and
                        $2,000,000 in the aggregate.

                  (c)   Comprehensive automobile liability coverage insuring
                        all owned, non-owned and hired automobiles, with
                        minimum limits of liability of $1,000,000 per
                        occurrence for bodily injury and property damage
                        combined.

            7.2   General Insurance Matters.  The above policies shall be
                  endorsed to name Del-Tin as an additional insured.  All
                  insurance certificates shall provide that the insurance will
                  not be cancelled without 30 days prior written notice to
                  Del-Tin.  The above provisions with respect to Deltic
                  providing insurance are solely for the benefit of Deltic and
                  Del-Tin, and third parties shall have no rights under or by
                  reason of such provisions.

8.          Force Majeure.

            8.1   Defined.  'Force Majeure' means any event or condition which
                  wholly or partially delays or prevents such party from
                  performing any of its obligations hereunder and is beyond
                  the reasonable control of, and occurs without the fault or
                  negligence of, the party affected thereby including, without
                  limitation, acts of God, acts of the public enemy,
                  insurrections, riots, labor disputes, labor or material
                  shortages, fires, explosions, floods, breakdowns of or
                  damages to plants, equipment or facilities, interruptions to
                  transportation, embargoes, or orders or acts of any court or
                  government authority having jurisdiction or any military
                  authority.

            8.2   Suspension of Obligations.  If, as a result of Force
                  Majeure, it becomes impossible or impractical for either
                  party to carry out its obligations hereunder (other than any
                  obligation to pay money when due in accordance with the
                  terms of this Agreement) in whole or in part, then such
                  obligations shall be suspended to the extent necessary by
                  such Force Majeure during its continuance.  The party
                  affected by such Force Majeure shall give prompt written
                  notice to the other party of the nature and probable
                  duration of such Force Majeure, and of the extent of its
                  effects on such party's performance hereunder.  Each party
                  shall, in the event it experiences Force Majeure, use all
                  commercially reasonable efforts to eliminate such Force
                  Majeure and/or its effects on such party's performance
                  hereunder insofar as is practicable and with all reasonable
                  dispatch; provided, that neither party shall be obligated to
                  expend monies in order to eliminate Force Majeure and/or its
                  effects, if in such party's sole judgment, such expenditures
                  would be economically unjustifiable.

9.          Defaults; Termination.

            In the event either party hereto defaults in or fails to comply
            with any material provision herein contained, and such default
            is not the result of Force Majeure, and if, within thirty days
            (or within seven days, for any obligation to pay money when due
            in accordance with the terms of this Agreement) after the
            nondefaulting party gives written notice of such default or
            noncompliance to the defaulting party, the defaulting party
            fails to remedy such default or noncompliance, the
            nondefaulting party may, at its option, either suspend its
            performance under this Agreement, or terminate this Agreement,
            effective in either case upon giving written notice to that
            effect to the defaulting party; provided, however, that any
            such suspension or termination shall not affect any obligation
            then existing hereunder.  Such right to suspend performance or
            terminate this Agreement shall not be an exclusive remedy and
            shall be in addition to all other remedies provided herein or
            available at law or in equity.  The failure to exercise any
            right or insist upon strict adherence to any term or condition
            in any one or more instances shall not be construed as a waiver
            of the right of strict performance for the future or as a
            relinquishment of such obligations, conditions or rights.

10.         Impossibility and Frustration of Purpose.

            The parties' failure, after good faith efforts, to reach agreement
            as to the delivered price for Waldo Residue Chips [Section  1.2]
            shall be deemed a frustration of purpose and render the
            performance of this Agreement impossible.

11.         Indemnification.

            Each party agrees to indemnify and hold harmless from all loss,
            damage and expense of any nature (including reasonable attorneys'
            fees) to the extent caused by the negligence or wilful misconduct
            of the indemnifying party, or the indemnifying party's agents,
            employees or subcontractors; provided, however, that NEITHER PARTY
            SHALL BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES
            (INCLUDING LOSS OF SALES OR LOSS OF PROFITS) OF THE  OTHER.

12.         Notices.

            Any notice required or permitted to be given by one party to the
            other hereunder or by law shall be deemed on the first business
            day after such notice is delivered by hand, courier or facsimile,
            or mailed by certified mail, return receipt requested, postage
            prepaid, as follows:

Deltic:                       Deltic Farm & Timber Co., Inc.
                              200 Peach Street (71730)
                              P.O. Box 7000
                              El Dorado, Arkansas 71731-7000
                              Facsimile No. (501) 864-6565
                              Attention: Ron L. Pearce

Del-Tin:                      Del-Tin Fiber L.L.C.
                              P.O. Box 1647
                              El Dorado, AR 71731-1647
                              Attention: Glenn Gray


or to such other address as may be designated by a party in accordance with
the provisions of this section.

13.         Confidentiality.

            In connection with this Agreement the parties may from time to
            time exchange proprietary data and confidential information.
            The parties agree to keep in confidence and not exploit all
            such proprietary data and confidential information received in
            connection with this Agreement.  It is understood and agreed,
            however, that such information may be disclosed when requested
            by a court or government agency, or when a law or regulation
            requires that it be reported to a regulatory agency.  The
            provisions of this Section 13 shall survive the termination or
            expiration of this Agreement.

14.         Miscellaneous.

            14.1  No Assignment.  Neither Deltic nor Del-Tin shall transfer or
                  assign this Agreement, or any of its rights or obligations
                  hereunder, in whole or in part, without the prior written
                  consent of the other party.

            14.2  Entire Agreement.  This Agreement embodies the entire
                  agreement and understanding between the parties with respect
                  to the subject matter hereof, and supersedes all prior and
                  contemporaneous negotiations, agreements, and understandings
                  between the parties.

            14.3  Amendments.  This Agreement shall not be amended except by a
                  writing, signed by both parties, containing the
                  restated/additional section.

            14.4  Governing Law.  This Agreement shall be governed by and
                  interpreted in accordance with the laws of the State of
                  Arkansas.

            14.5  Independent Contractor.  Each party to this Agreement is an
                  independent contractor and neither shall have the right to
                  control the methods and means by which the other party or
                  any of its employees, agents or subcontractors conducts its
                  independent business operations.

            14.6  Headings for Convenience Only.  The insertion of headings
                  are for convenience of reference only and shall not affect
                  the construction or interpretation of this Agreement.

            14.7  Severability.  In the event that any part, article, section,
                  paragraph or clause of this Agreement shall be held to be
                  indefinite, invalid or otherwise unenforceable, the entire
                  Agreement shall not fail on account thereof and the balance
                  of the Agreement shall continue in full force and effect.


                                    DEL-TIN FIBER L.L.C.


                                    By: /s/ Glenn R. Gray
                                       -----------------------------------
                                          Glenn R. Gray
                                          General Manager

                                    DELTIC FARM & TIMBER CO., INC.


                                    By: /s/  Ron L. Pearce
                                       -----------------------------------
                                          Ron L. Pearce
                                          President