EXHIBIT 1 

Case 1:01-cv-00109-SSB Document 60-2 Filed 12/12/2003 Page 1 of 10
CHAMPION INTERNA'T'IONAL CORPORATION 

REORGANIZATION SEVERANCE POLICY 

AdMiion of the -P+ ' cv: 

in Section 1 .3) hereby adopts the, Champion Irge 

Sgverance Policy tk828 ('Policy'}. The Policy, effective as of the ctosing date of the Merger, consists of this document and the attached Summary Plan Description (and 

any amendments1wreto) of the Policy, the provisions of which are made apart hereof and 

herein by reference . 

2. Purpose of the Pot - - The purpose of the Polity; is to provide certain 

Severance and other benefits to employees ;of the Company Whose employment is 

Terminated as a result of Reorganization. The Policy is an employee benefft plan under Title I 

of the Employee Retirement Income Security Act of 1974,' as amended ("ERISA'). 

3. Amendment and Termination. The Company shall have the right to amend 

andlor terminate the Policy at any time for whatever reasons it may deem appropriate 

without prior notice, except that, (1) the Pension Enhancement described in Paragraph 3, 

may not be extended beyond one year and (2) for, the one-year period immediately following 

the Merger, (a) the Policy shall not be terminated,' and (b) no amendment will be effective if 

it would adversely affect the rights, expectancies, or benefits of' any Eligible Employee 

provided by the Policy as in effect as of the closing date of the Merger. 

4. Severabil ty of Provisions: if any provision of the Policy should be held invalid 

a unenforceable, such invalidity or unenfoiceablTtyshall not affect any other provisions of the 

Policy, and the Policy shall be construed and enforced as if such provision had not been 

included. 

Approved, may 26 . 2000 

~ B. i 

Paul 8. Records 

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5. Applicable Laws. The Policy shall be construed, administered and governed in 

all respects under and by the laws of the State of Connecticut, except where such laws are 

preempted by applicable federal legislation. 

IN WITNESS WHEREOF, the authorized delegate of the -Pension and Employee 

Benefits Committee of Champion international Corlwration, on behalf of : said Committee, has 

executed the Policy by sigrang this document as evidence of its adoption. 

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ion ? din! 

1 .5 Earnings is; 

CHAMPION INTERNATIONAL CORPORATION 

REORGANIZATION SEVERANCE POLICY fk828 

The Policy sets forth certain benefits extended to Eligible :Employe Terminated during the Policy Period as a result of Reorganization: 

ns 

rator is the Company. 

whose employment is 

Cause is deliberate unacceptable performance of duties; deliberate unsatisfactory 

performance (Employee refuses to improve unsatisfactory performance),' excessive 

absenteeism, vrolation of rules, gross negligence, dishonesty acts in bad faith, fraud 

and/or insubordination: 

vane is Champion International Corporation prior to the Merger- ':(including its 

United States subsidiaries), and after the Merger company is the corporation that 

survives the Merger. 

1 .4 Credited Service is an Eligible Employee's period of employment' with the Company 

to and including the date of Termination, but not including years of service that have 

been taken into account for a prior severance payment from . the Company. 

(a) for a salaried employee; the greater of the annual base salary at the 

commencement of the' Policy Period or the highest annual base salary at any 

time during the Policy Period ; a week's Earnings is determined by dividing 

such annual base salary by 52; 

for a non-represented hourly employee, the greater of the hourly base rate at 

the commencement of the Policy Period or the highest hourly base rate at 

any time during the Policy Period; one weeks Earnings is determined by 

multiplying such hourly base rate by 40. 

1 .6 Eligible Employee is an Employee who is Terminated and who has executed and 

delivered an effective Release. 

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(a) 

(b) 

Merger is the merger 1 

and Champion Interna 

1 .9 Policy is this Champioln tntema 

1 .10 Policy Pedod is the period from the closing d 

one-year anniversary. . 

r Company or 

1 .14 Terminated or Termination is either. 

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an employee who is a party to one of the 14' executive severance agreements 

referred to in the Company's Disclosure Letter to thi 

(7 

Employee is : any non-repmsented regular or art-time regul 

employee of the Company and its domestic subsidiaries except. 

an employee of a foreign subsidiary o 

international P 

Corporation. 

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Corporati 

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bsidiary thereof 

Reorganization Severance Poticv 

of the, Merger to and' including its 

Release is the Release and Waiver in a form acceptable to the Company. An 

effective Release is one that.has been executed and delivered and not revoked. 

1 .12 Reorganization consists of employment action(s) resulting in an Eligible Employee's 

Termination during the Policy: Period:' 

1 .13 Retirement Plan is theChampion International Corporation Salaried Retirement Plan 

#00'1 . any other Company hourly pension plan andror any other Company qualified 

or no i-qualified retirement plan in which the Eligible Employee is a member. 

(a) a termination by the Company of the employment of an Employee for any 

reason other than Cause, disability (subject to Section 6 hereof), or death, 

which Termination occurs within the Policy Period_ Subject to (b) below, it 

shall not be deemed a termination of employment if after the Merger the 

Employee is transferred to the employment of international Paper Company 

or a subsidiary thereof: or 

(b) a termination during the Policy Period by an Employee of his or her 

employment under the following circumstances: 

during the Policy Period there is either a reduction in the Employee's 

Earnings or a relocation of an Employee's principal place of 

employment other than to the Borough of Manhattan in the City of New 

York, New York (if the Employee's principal place of employment 

immediately prior to the Policy Period is Stamford, Connecticut) or to 

any other location that is not more than thirty-five (35) miles by 

automobile from the location of the Employee's principal place of 

employment immediately prior to the Policy Period; provided that a 

relocation of an Employee's principal place of employment from a 

foreign assignment to the Employee's home location will not be 

deemed a Termination ; and 

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(ii) the Employee elects to terminate his or her employment upon not Jess 

than thlrty .(30) calendar days' advance written` notice to`.the-Company 

given within not more than thirty (30)'calendar days after the earlier of 

either receipt by the Employee. of written notice . of such reduction or 

relocation, or the date on which the first payment of the reduced 

Earnings- is received by the Employee or the date on which the 

relocation of the Employee's principal place employment becomes 

An Eiglole Employee shall be entitled to' receive a severance bene 

amount payable pursuant to any other severance or termination 

the Company, (excluding retention pay letters) or the foNOwfng: - 

(b) one (1) week's (or partial week's) Earnings for each year (or 

Servlo% plus 

(c) one (t) weeks (or partial week's) 

Service over fifteen (15) years. 

The payment described in this paragraph shall not e 

Section 3 Pension Enhancement 

Section a COBRA 

2001 1620 513 666 4971 

for each year (or partial year) of Credited 

tf an Eligible Employee has attained age 49 as of the date of Termination and the Eligible 

Employee's age plus years of service equal' at least 59, the Eligible Employee's pension 

benefit from the Retirement Plan shall be enhanced by crediting the Eligible Employee with 

the most beneficial combination of an additional six (6) years of age and/or service credit 

under the Retirement Plan for early or normal retirement. As part of such enhanced benefit 

the Eligible Employee shall be entitled to post retirement death benefits, life insurance and 

medical plan coverage. 

An Eligible Employee who elects COBRA coverage shall have the COBRA medical and dental 

premium payments waived until the earlier to occur of (i) the last day of the ninth month 

following Termination, or (if) the date the Eligible Employee ceases to be eligible for COBRA 

coverage. 

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If an EGgibte Employee who was an active employee of the Company on or after January 1, 

1995 is receiving or claiming benefits pursuant to workers' compensation law(s). Social 

Security disability law(s) or a disability plan of the Company during the Policy 'Period, 

benefits pursuant to Section 2, Section 3 and Section 7 will not be paid unless and until the 

Eligible Employee is released by an independent medical examiner or "other physician to 

return to such employee's regular job duties within the Policy Period: 

Section 7 Mtscellaneous Benefits 

7.1 Vacation Pav 

7.2 Retirement Plan or an Hourly Pension Plan Pavout 

7.3 Emolovee and Family Assistance Program (EAP) - 

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An Eligible Employee WO receive a lump sum payment for banked vacation, earned 

but unused vacation and, it eligible to retire (under the provisions of Section 3 

otherwise), accrued vacation . 

An Eligible Employee not eligible to retire; pursuant to the tenns of the Retirement Plan 

who becomes a terminated vested participant pursuant to the Retirement Plan will 

receive in a lump sum the actuarial equivalent of such terminated; participant's vested 

benefit determined under the Retirement Plan it such benefit has a present value of 

$5,000 or less. 

An Eligible Employee will have EAP coverage extended for a maximum of five (5) visits 

provided that, H the Eligible Employee has not already commenced visits, the first visit 

occurs within the six-month period following such Eligible Employee's Termination . 

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Financial or retirement planning assistance wit 

as described in separate documents. 

Section 10 Administration and Intemratatiom 

Section 11 Claims Procedure 

11-1 Ctaims 

JLL-09-2001 16" 20 513 868 4971 

(b) Payments due pursuant to Section 2 of the Policy shall be, paid following the later of 

the date the Eligible Employee delivers an effective ,Release or the Termination date, 

provided that payments made under Section 5(a) will be made on normal 'payroll - 

dates and the lump sum payment under' Section 5(b) will be made within eight (8) 

The : Company shall have the right to amend and/or terminate the Policy at, any time for 

whatever reasons it may deem appropriate without prior notice, except that, for the ore-year 

period immediately following the Merger, (a) the Policy shall not be terminated, and (b) no 

amendment will be effective it it would adversely affect the rights, expectancies, or benefits 

d any Eiigible Employee provided by the Policy as in effect as of the dosing of the Merger. 

The Administrator has the authority, responsibility and discretion to determine all questions 

of eligibility and status and has the right to interpret the provisions of the Policy. Any 

determination by the Administrator shall be final and conclusive. 

(a) In the event that a benefit has not been paid under the Policy in whole or in 

part. the person claiming such payment may apply for payment either 

individually or through a representative by writing' to the Director - Benefits 

Administration, Champion International 'Corporation, Knightsbridge Drive, 

Hamilton, Ohio 45020. 

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fi the' claim has been. denied (or if no response from Director - Benefits 

Administration is received wither 30 days), the person claiming payment has the right 

to request a review of the denied claim, to review pertinent documents and to submit 

any comments in writing. The request for review of the' denied claim shah- be 

submitted to the Vice :President --Employee Benefits at the address set forth in 

Section 12.1 (a) within 60 days of receipt of the claim denial (or within 90 days of 

filing of the claim if no response from the Director of Benefits was received). The 

request for review of the: denied claim will be considered and ruted upon within 30 

days of the fling of such request. 

(i) specific reasons for denial ; 

(i) specific reference to Policy,provision,c 

description of additional Information i 

processed; and 

(iv) list of steps to 

Section 12 General Policy information . 

Any claim for payment or such other action under the Policy must be made as set 

forth in this Section 11 and must be made within one year after the occurrence : of the 

event for which the claim is made. Failure to file the claim within such one-year 

period shall completely discharge the Policy and' the Company of " liability and. shall 

bar any and all actions in connection with such claim for payment or other action. 

(a) The Company is the sponsor of the Policy. The Administrator is the 

Company. The Administrator can be reached at 

Vice President - Employee Benefits 

Champion International Corporation 

One Champion Plaza 

Stamford, CT 06921 

The telephone number is (203) 356-7056. 

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12.2 Plan Identification 

(b) The 'Employer Identification Number is 13-1427390 and the Plan Number is 

12.3 F_endin 

j The official name of the Policy Js thef Chamnion intern nal ration 

ReorSanizat!on varance Policv 11828 . 

Benefits are paid out of the Company's general assets with re 

banal its and its retirement plans with respect to the pension er 

12.4 Financial Records 

re kept Administrator. 

be delivered to: 

The Policy's financial records 

12.5 Agent for Service of Leaal Process 

Service of legal process in connection with this Poli 

Section 1 3_ ERtSA Ri is 

13.1 

(b) Policy documents are available far review at the local Human Resources 

Department Most . day-to-day questions can be answered by the Human 

Resources representative . 

Senior Associate Counsel, Human Resources 

Champion International Corporation 

Ore Champion Plaza 

Stamford, CT 06921 

Service also may be mad on the A 

Legal Rights and Protection 

13.2 <txa_mination of Documents 

13.3 Fiduciaries 

Jta_-09-2001 16:20 513 868 4971 

inistrator . 

to the severance 

vent. 

ERISA requires that an employee, be' informed of rights and protections as a plan 

participant (for ERISA purposes the Policy is considered a plan). 

ERISA provides that each participant be entitled to examine on any business day 

during normal woridrig hours all pertinent plan documents, contracts, collective 

bargaining agreements and copies of all documents filed for the plan with the United 

States Department of Labor. These documents can be examined and/or obtained 

without charge at the local Human Resources Department; or . at the Corporate 

Benefits Department located at One Champion Plaza, Stamford, Connecticut, 06921 

or by writing to the Vice President - Employee Benefits at the same address. 

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The individuals who are responsible'Jor the operation and administration 0 

employee-benefit plan such as the Policy are called 'fiduciaries'. These fiduciaries 

viii continue to operate and administer the plan in a reasonable and prudent manner 

the exclusive interests of the, employee arid other participants in mind. 

in tne unwety event . that1here is re , to bevew,that an employee. 

been prevented from- asserting .,". rights outlined herein. . or that the 

fiduciaries have misused their trust, an employee is. urged to write to the V`ice 

President w Benefits. . An.amployee also has the right up seek assistance ffo 

the United States Department of. Labor. or such employee can file suit in state 

or federal court (If a dawn for benefits is denied in whole or in part). H 'a suit is 

filed, the court twill decide who should pay court-costs and legal fees . : 

(b) AfflxKjgh the Company does not contemplate that it wilt ever be necessary to 

resort to gotremmienlial or 

judicial bodies to enforce the right of an employes, 

the employee's employment status with the Company will not be adversely 

affected in any manner if such action is tak 

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