Form of Indemnification Agreement



 Exhibit 10.15 
 INDEMNIFICATION AGREEMENT 
 This Indemnification Agreement (the “Agreement”), is dated as
of ____________, 2008 between Clearwater Paper Corporation, a Delaware corporation (the “Corporation”), and _____________ (“Indemnitee”). 
 W I T N E S S E T H: 
 WHEREAS, Indemnitee is either a member of the board of directors of the Corporation
(the “Board of Directors”), a member of the board of managers or board of directors of a wholly-owned subsidiary of the Corporation, an officer of the Corporation or an officer of a wholly-owned subsidiary of the Corporation, or one or
more of such positions, and in such capacity or capacities, or otherwise as an Agent (as hereinafter defined) of the Corporation, is performing a valuable service for the Corporation; and 
 WHEREAS, the Corporation is aware that competent and experienced persons are increasingly reluctant to serve as directors or officers of corporations or
other business entities unless they are protected by comprehensive indemnification and liability insurance, due to increased exposure to litigation costs and risks resulting from their service to such entities, and because the exposure frequently
bears no reasonable relationship to the compensation of such directors and officers; and 
 WHEREAS, the Board of Directors of the
Corporation has concluded that, to retain and attract talented and experienced individuals to serve or continue to serve as officers, directors or managers of the Corporation or its subsidiaries, and to encourage such individuals to take the
business risks necessary for the success of the Corporation, it is necessary for the Corporation contractually to indemnify directors and officers and to assume for itself to the fullest extent permitted by law expenses and damages in connection
with claims against such officers, directors or managers in connection with their service to the Corporation; and 
 WHEREAS,
Section 145 of the General Corporation Law of Delaware (the “DGCL”), under which the Corporation is organized, empowers the Corporation to indemnify by agreement its officers, directors, employees and agents, and persons who serve, at
the request of the Corporation, as directors, officers, employees or agents of other corporations or enterprises, and expressly provides that the indemnification provided by the DGCL is not exclusive; and 
 WHEREAS, the Corporation desires and has requested the Indemnitee to serve or continue to serve as a director, officer or agent of the Corporation or one
or more of its subsidiaries free from undue concern for claims for damages arising out of or related to such services to the Corporation; and 
 WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Corporation on the condition that he or she be indemnified as herein provided; and 







 WHEREAS, it is intended that Indemnitee shall be paid promptly by the Corporation all amounts necessary
to effectuate in full the indemnity provided herein: 
 NOW, THEREFORE, in consideration of the premises and the covenants in this Agreement,
and of Indemnitee serving or continuing to serve the Corporation or one or more of its subsidiaries as an Agent and intending to be legally bound hereby, the parties hereto agree as follows: 
 1. Services by Indemnitee. Indemnitee agrees to serve or continue to serve (a) as a director or an officer of the Corporation, or as a
manager, director or employee of a wholly-owned subsidiary of the Corporation, or one or more of such positions, so long as Indemnitee is duly appointed or elected and qualified in accordance with the applicable provisions of the certificate of
incorporation and bylaws of the Corporation, and until such time as Indemnitee resigns or fails to stand for election or is removed from Indemnitee’s position, or (b) otherwise as an Agent of the Corporation. Indemnitee may from time to
time also perform other services at the request or for the convenience of, or otherwise benefiting the Corporation or one or more of its subsidiaries. Indemnitee may at any time and for any reason resign or be removed from such position (subject to
any other contractual obligation or other obligation imposed by operation of law), in which event the Corporation shall have no obligation under this Agreement to continue Indemnitee in any such position. 
 2. Indemnification of Indemnitee. Subject to the limitations set forth herein and particularly in Section 6 hereof, the Corporation shall
indemnify Indemnitee as follows: 
 (a) The Corporation shall, with respect to any Proceeding (as hereinafter defined), indemnify Indemnitee
to the fullest extent permitted by applicable law or as such law may from time to time be amended (but, in the case of any such amendment, only to the extent such amendment permits the Corporation to provide broader indemnification rights than the
law permitted the Corporation to provide before such amendment). The right to indemnification conferred herein shall be presumed to have been relied upon by Indemnitee in serving or continuing to serve the Corporation as an Agent and shall be
enforceable as a contract right. Without in any way diminishing the scope of the indemnification provided by this Section 2(a), the rights of indemnification of Indemnitee shall include but shall not be limited to those rights hereinafter set
forth. 
 (b) The Corporation shall indemnify Indemnitee if Indemnitee is or was a party or is threatened to be made a party to any
Proceeding (other than an action by or in the right of the Corporation) by reason of the fact that Indemnitee is or was an Agent of the Corporation, or any subsidiary of the Corporation, or by reason of the fact that Indemnitee is or was serving at
the request of the Corporation as an Agent of another corporation, partnership, joint venture, trust or other enterprise, against Expenses (as hereinafter defined) or Liabilities (as hereinafter defined), actually and reasonably incurred by
Indemnitee in connection with such Proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding,
had no reasonable cause to believe Indemnitee’s conduct was unlawful. 
  

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 (c) The Corporation shall indemnify Indemnitee if Indemnitee was or is a party or is threatened to be
made a party to any Proceeding by or in the right of the Corporation or any subsidiary of the Corporation to procure a judgment in its favor by reason of the fact that Indemnitee is or was an Agent of the Corporation, or any subsidiary of the
Corporation, or by reason of the fact that Indemnitee is or was serving at the request of the Corporation as an Agent of another corporation, partnership, joint venture, trust or other enterprise, against Expenses and, to the fullest extent
permitted by law, Liabilities if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, except that no indemnification shall be made in respect of any claim,
issue or matter as to which Indemnitee shall have been adjudged to be liable to the Corporation unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such action or suit was brought shall determine
upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery of the State of Delaware or such
other court shall deem proper. 
 3. Advancement of Expenses. All reasonable Expenses incurred by or on behalf of Indemnitee
(including costs of enforcement of this Agreement) shall be advanced from time to time by the Corporation to Indemnitee within thirty (30) days after the receipt by the Corporation of a written request for an advance of Expenses, whether prior
to or after final disposition of a Proceeding (except to the extent that there has been a Final Adverse Determination (as hereinafter defined) that Indemnitee is not entitled to be indemnified for such Expenses), including without limitation any
Proceeding brought by or in the right of the Corporation. The written request for an advancement of any and all Expenses under this paragraph shall contain reasonable detail of the Expenses incurred by Indemnitee. In the event that such written
request shall be accompanied by an affidavit of counsel to Indemnitee to the effect that such counsel has reviewed such Expenses and that such Expenses are reasonable in such counsel’s view, then such expenses shall be deemed reasonable in the
absence of clear and convincing evidence to the contrary. By execution of this Agreement, Indemnitee shall be deemed to have made whatever undertaking as may be required by law at the time of any advancement of Expenses with respect to repayment to
the Corporation of such Expenses. In the event that the Corporation shall breach its obligation to advance Expenses under this Section 3, the parties hereto agree that Indemnitee’s remedies available at law would not be adequate and that
Indemnitee would be entitled to specific performance. 
 4. Presumptions and Effect of Certain Proceedings. Upon making a request for
indemnification, Indemnitee shall be presumed to be entitled to indemnification under this Agreement and the Corporation shall have the burden of proof to overcome that presumption in reaching any contrary determination. The termination of any
Proceeding by judgment, order, settlement, arbitration award or conviction, or upon a plea of nolo contendere or its equivalent shall not affect this presumption or, except as determined by a final judicial decision adverse to Indemnitee from which
there is no further right to appeal, establish a presumption with regard to any factual matter relevant to determining Indemnitee’s rights to indemnification hereunder. If the person or persons so empowered to make a determination pursuant to
Section 5 hereof shall have failed to make the requested determination within the period provided for in Section 5, a determination that Indemnitee is entitled to indemnification shall be deemed to have been made. 
  

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 5. Procedure for Determination of Entitlement to Indemnification. 
 (a) Whenever Indemnitee believes that Indemnitee is entitled to indemnification pursuant to this Agreement, Indemnitee shall submit a written request for
indemnification to the Corporation. Any request for indemnification shall include sufficient documentation or information reasonably available to Indemnitee for the determination of entitlement to indemnification. In any event, Indemnitee shall
submit Indemnitee’s claim for indemnification within a reasonable time, not to exceed five (5) years after any judgment, order, settlement, dismissal, arbitration award, conviction, acceptance of a plea of nolo contendere or its
equivalent, or final determination, whichever is the later date for which Indemnitee requests indemnification. The Secretary or other appropriate officer of the Corporation shall, promptly upon receipt of Indemnitee’s request for
indemnification, advise the Board of Directors in writing that Indemnitee has made such request. Determination of Indemnitee’s entitlement to indemnification shall be made not later than sixty (60) days after the Corporation’s receipt
of Indemnitee’s written request for such indemnification, provided that any request for indemnification for Liabilities, other than amounts paid in settlement, shall have been made after a determination thereof in a Proceeding. If it is so
determined that the Indemnitee is entitled to indemnification, and Indemnitee has already paid the Liabilities, reimbursement to the Indemnitee shall be made within ten (10) days after such determination; otherwise, the Corporation shall pay
the Liabilities on behalf of Indemnitee if and when Indemnitee becomes legally obligated to make payment. 
 (b) The Corporation shall be
entitled to select the decision-making authority by which Indemnitee’s entitlement to indemnification will be heard; provided, however, that if there has been a Change in Control of the Corporation, Independent Legal Counsel (as hereinafter
defined) shall determine whether Indemnitee is entitled to indemnification. The decision-making authority shall be any one of the following: 
 (i) the Disinterested Directors (as hereinafter defined), by majority vote thereof, even though less than a quorum; 
 (ii) a committee of Disinterested Directors designated by majority vote of Disinterested Directors, even though less than a quorum; 
 (iii) Independent Legal Counsel, whose determination shall be made in a written opinion; or 
 (iv) the stockholders of the Corporation. 
 6. Specific Limitations on Indemnification. Notwithstanding anything in this Agreement to the contrary, the Corporation shall not be obligated under this Agreement to make any payment to Indemnitee with respect
to any Proceeding: 
 (a) To the extent that payment is actually made to Indemnitee under any insurance policy, or is made to Indemnitee by
the Corporation or an affiliate otherwise than pursuant to this Agreement. Notwithstanding the availability of such insurance, Indemnitee also may claim indemnification from the Corporation pursuant to this Agreement by assigning to the Corporation
any claims under such insurance to the extent Indemnitee is paid by the Corporation; 
  

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 (b) Provided there has been no Change in Control, for Liabilities in connection with Proceedings settled
without the Corporation’s consent, which consent, however, shall not be unreasonably withheld; 
 (c) For an accounting of profits made
from the purchase or sale by Indemnitee of securities of the Corporation within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or similar provisions of any state statutory or
common law; 
 (d) To the extent it would be otherwise prohibited by law, if so established by a final judicial decision adverse to
Indemnitee from which there is no further right to appeal; or 
 (e) Commenced by Indemnitee (other than a Proceeding commenced by Indemnitee
to enforce Indemnitee’s rights under this Agreement), unless the commencement of such Proceeding was authorized by the Board of Directors. 
 7. Fees and Expenses of Independent Legal Counsel. The Corporation agrees to pay the reasonable fees and expenses of Independent Legal Counsel should such Independent Legal Counsel be retained to make a determination of
Indemnitee’s entitlement to indemnification pursuant to Section 5(b) of this Agreement, and to fully indemnify such Independent Legal Counsel against any and all expenses and losses incurred by such Independent Legal Counsel arising out of
or relating to this Agreement or such Independent Legal Counsel’s engagement pursuant hereto. 
 8. Remedies of Indemnitee.

 (a) In the event that (i) a determination pursuant to Section 5 hereof is made that Indemnitee is not entitled to
indemnification, (ii) advances of Expenses are not made pursuant to this Agreement, (iii) payment has not been timely made following a determination of entitlement to indemnification pursuant to this Agreement, or (iv) Indemnitee
otherwise seeks enforcement of this Agreement, Indemnitee shall be entitled to a final adjudication in the Court of Chancery of the State of Delaware of the remedy sought. Alternatively, unless court approval is required by law for the
indemnification sought by Indemnitee, Indemnitee at Indemnitee’s option may seek an award in arbitration to be conducted by a single arbitrator pursuant to the commercial arbitration rules of the American Arbitration Association now in effect,
which award is to be made within ninety (90) days following the filing of the demand for arbitration. The Corporation shall not oppose Indemnitee’s right to seek any such adjudication or arbitration award. In any such proceeding or
arbitration Indemnitee shall be presumed to be entitled to indemnification and advancement of Expenses under this Agreement, and the Corporation shall have the burden of proof to overcome that presumption. 
  

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 (b) In the event that a determination that Indemnitee is not entitled to indemnification, in whole or in
part, has been made pursuant to Section 5 hereof, the decision in the judicial proceeding or arbitration provided in paragraph (a) of this Section 8 shall be made de novo and Indemnitee shall not be prejudiced by reason of a
determination that Indemnitee is not entitled to indemnification. 
 (c) If a determination that Indemnitee is entitled to indemnification
has been made pursuant to Section 5 hereof, or is deemed to have been made pursuant to Section 4 hereof or otherwise pursuant to the terms of this Agreement, the Corporation shall be bound by such determination. 
 (d) The Corporation shall be precluded from asserting that the procedures and presumptions of this Agreement are not valid, binding and enforceable. The
Corporation shall stipulate in any such court or before any such arbitrator that the Corporation is bound by all the provisions of this Agreement and is precluded from making any assertion to the contrary. 
 (e) Expenses reasonably incurred by Indemnitee in connection with Indemnitee’s request for indemnification under, seeking enforcement of, or to
recover damages for breach of, this Agreement shall be borne by the Corporation when and as incurred by Indemnitee, provided that by execution of this Agreement Indemnitee agrees to repay to the Corporation any such expenses borne by the Corporation
if the expenses relate to a claim for indemnification hereunder and there is a final judicial determination (from which there is no further right to appeal) that Indemnitee is not entitled to such indemnification. 
 9. Contribution. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to
Indemnitee for any reason whatsoever, the Corporation, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or
for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative
benefits received by the Corporation and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Corporation (and its directors, officers, employees and agents) and
Indemnitee in connection with such event(s) and/or transaction(s). 
 10. Maintenance of Insurance. The Corporation agrees that so
long as Indemnitee shall have consented to serve or shall continue to serve as a director or officer of the Corporation, as a director, manager or officer of a wholly-owned subsidiary of the Corporation, or one or more of such positions, or as an
Agent of the Corporation, and thereafter so long as Indemnitee shall be subject to any possible Proceeding (such periods being hereinafter sometimes referred to as the “Indemnification Period”), the Corporation will use all reasonable
efforts to maintain in effect for the benefit of Indemnitee one or more valid, binding and enforceable policies of directors’ and officers’ liability insurance from such insurers and providing for such coverage (both in scope and amount)
as shall be approved by the Board of Directors of the Corporation from time to time. Anything in this Agreement to the contrary notwithstanding, to the extent that and for so long as the Corporation shall choose to continue to maintain any policies
of directors’ 

  

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and officers’ liability insurance during the Indemnification Period, the Corporation shall maintain similar and equivalent insurance for the benefit of
Indemnitee during the Indemnification Period. 
 11. Modification, Waiver, Termination and Cancellation. No supplement, modification,
termination, cancellation or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. 
 12. Subrogation. In the event of
payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such
rights, including the execution of such documents necessary to enable the Corporation effectively to bring suit to enforce such rights. 
 13. Notice by Indemnitee and Defense of Claim. Indemnitee shall promptly notify the Corporation in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any
matter, whether civil, criminal, administrative or investigative which may result in the right to indemnification or the advancement of Expenses, but the omission so to notify the Corporation will not relieve it from any liability that it may have
to Indemnitee if such omission does not prejudice the Corporation’s rights. If such omission does prejudice the Corporation’s rights, the Corporation will be relieved from liability only to the extent of such prejudice. Notwithstanding the
foregoing, such omission will not relieve the Corporation from any liability that it may have to Indemnitee otherwise than under this Agreement. With respect to any Proceeding as to which Indemnitee notifies the Corporation of the commencement
thereof: 
 (a) The Corporation will be entitled to participate therein at its own expense; and 
 (b) The Corporation jointly with any other indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel reasonably
satisfactory to Indemnitee; provided, however, that the Corporation shall not be entitled to assume the defense of any Proceeding if there has been a Change in Control or if Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Corporation and Indemnitee with respect to such Proceeding. After notice from the Corporation to Indemnitee of its election to assume the defense thereof, the Corporation will not be liable to Indemnitee under this Agreement for
any Expenses subsequently incurred by Indemnitee in connection with the defense thereof, other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ Indemnitee’s own counsel in such
Proceeding, but the fees and expenses of such counsel incurred after notice from the Corporation of its assumption of the defense thereof shall be at the expense of Indemnitee unless: 
 (i) the employment of counsel by Indemnitee has been authorized by the Corporation; 
  

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 (ii) Indemnitee shall have reasonably concluded that counsel engaged by the Corporation
may not adequately represent Indemnitee due to, among other things, actual or potential differing interests; or 
 (iii) the
Corporation shall not in fact have employed counsel to assume the defense in such Proceeding or shall not in fact have assumed such defense and be acting in connection therewith with reasonable diligence; in each of which cases the fees and expenses
of such counsel shall be at the expense of the Corporation. 
 (c) The Corporation shall not settle any Proceeding in any manner that would
impose any penalty or limitation on Indemnitee without Indemnitee’s written consent; provided, however, that Indemnitee will not unreasonably withhold his or her consent to any proposed settlement. 
 14. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if
(i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on
which it is so mailed: 
  

	 	(a)	If to Indemnitee, to: 

  

									
		 	  
	  		  		  	
		 	  
	  		  		  	
		 	  
	  		  		  	
		 	  
	  		  		  	

  

	 	(b)	If to the Corporation, to: 


	 	    	Clearwater Paper Corporation 


	 	    	601 W. Riverside Avenue 


	 	    	Suite 1100 


	 	    	Spokane, WA 99201 


	 	    	Attn: General Counsel 

 or to such other address as may have been furnished
to Indemnitee by the Corporation or to the Corporation by Indemnitee, as the case may be. 
 15. Nonexclusivity. The rights of
Indemnitee hereunder shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under applicable law, the Corporation’s certificate of incorporation or bylaws, or any agreements, vote of stockholders, resolution of
the Board of Directors or otherwise, and to the extent that during the Indemnification Period the rights of the then existing directors and officers are more favorable to such directors or officers than the rights currently provided to Indemnitee
thereunder or under this Agreement, Indemnitee shall be entitled to the full benefits of such more favorable rights. 
 16. Certain
Definitions. 
 (a) “Agent” shall mean any person who is or was, or who has consented to serve as, a director, officer,
employee, agent, fiduciary, joint venturer, partner, manager or other official of 

  

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the Corporation or a subsidiary or an affiliate of the Corporation, or any other entity (including without limitation, an employee benefit plan), in each
case either at the request of, for the convenience of, or otherwise to benefit the Corporation or a subsidiary of the Corporation. Any person who is or was serving as a manager, director, officer, employee or agent of a subsidiary of the Corporation
shall be deemed to be serving, or have served, at the request of the Corporation. 
 (b) “Change in Control” shall mean the
occurrence, after the Spin-off Date, of any of the following: 
 (i) Both (A) any “person” (as defined below)
is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing at least twenty percent (20%) of the total voting power represented by the
Corporation’s then outstanding voting securities and (B) the beneficial ownership by such person of securities representing such percentage is not approved by a majority of the Continuing Directors (as defined below); 
 (ii) Any “person” is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Corporation representing at least fifty percent (50%) of the total voting power represented by the Corporation’s then outstanding voting securities; 
 (iii) A change in the composition of the Board of Directors occurs, as a result of which fewer than two-thirds of the incumbent directors
are directors who either (A) had been directors of the Corporation on the “look-back date” (as defined below) (the “Original Directors”) or (B) were elected, or nominated for election, to the Board of Directors with the
affirmative votes of at least a majority in the aggregate of the Original Directors who were still in office at the time of the election or nomination and directors whose election or nomination was previously so approved (the directors referenced in
clauses (A) and (B) of this Section 16(b)(iii) shall be referred to collectively as the “Continuing Directors”); 
 (iv) The stockholders of the Corporation approve a merger or consolidation of the Corporation with any other corporation, if such merger or consolidation would result in the voting securities of the Corporation
outstanding immediately prior thereto representing (either by remaining outstanding or by being converted into voting securities of the surviving entity) 50% or less of the total voting power represented by the voting securities of the Corporation
or such surviving entity outstanding immediately after such merger or consolidation; or 
 (v) The stockholders of the
Corporation approve (A) a plan of complete liquidation of the Corporation or (B) an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets. 
 For purposes of Subsections (i) and (ii) above, the term “person” shall have the same meaning as when used in Sections 13(d) and
14(d) of the Exchange Act, but shall exclude (x) a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or of a parent or subsidiary of the Corporation or (y) a corporation owned directly or
indirectly 

  

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by the stockholders of the Corporation in substantially the same proportions as their ownership of the common stock of the Corporation. 
 For purposes of Subsection (iii) above, the term “look-back date” shall mean the later of (x) the Spin-off Date or (y) the date
24 months prior to the date of the event that may constitute a “Change in Control.” 
 Any other provision of this
Section 16(b) notwithstanding, the term “Change in Control” shall not include a transaction, if undertaken at the election of the Corporation, the result of which is to sell all or substantially all of the assets of the Corporation to
another corporation (the “surviving corporation”); provided that the surviving corporation is owned directly or indirectly by the stockholders of the Corporation immediately following such transaction in substantially the same proportions
as their ownership of the Corporation’s common stock immediately preceding such transaction; and provided, further, that the surviving corporation expressly assumes this Agreement. 
 (c) “Disinterested Director” shall mean a director of the Corporation who is not or was not a party to the Proceeding in respect of
which indemnification is being sought by Indemnitee. 
 (d) “Expenses” shall include all direct and indirect costs
(including, without limitation, attorneys’ fees, retainers, court costs, transcripts, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, all other
disbursements or out-of-pocket expenses and reasonable compensation for time spent by Indemnitee for which Indemnitee is otherwise not compensated by the Corporation or any third party) actually and reasonably incurred in connection with either the
investigation, defense, settlement or appeal of a Proceeding or establishing or enforcing a right to indemnification under this Agreement, applicable law or otherwise; provided, however, that “Expenses” shall not include any Liabilities.

 (e) “Final Adverse Determination” shall mean that a determination that Indemnitee is not entitled to indemnification
shall have been made pursuant to Section 5 hereof and either (1) a final adjudication in the Court of Chancery of the State of Delaware from which there is no further right of appeal or decision of an arbitrator pursuant to
Section 8(a) hereof shall have denied Indemnitee’s right to indemnification hereunder, or (2) Indemnitee shall have failed to file a complaint in a Delaware court or seek an arbitrator’s award pursuant to Section 8(a) for a
period of one hundred twenty (120) days after the determination made pursuant to Section 5 hereof. 
 (f) “Independent
Legal Counsel” shall mean a law firm or a member of a firm selected by the Corporation and approved by Indemnitee (which approval shall not be unreasonably withheld) or, if there has been a Change in Control, selected by Indemnitee and
approved by the Corporation (which approval shall not be unreasonably withheld), that neither is presently nor in the past five (5) years has been retained to represent: (i) the Corporation or any of its subsidiaries or affiliates, or
Indemnitee or any corporation of which Indemnitee was or is a director, officer, employee or agent, or any subsidiary or affiliate of such a corporation, in any material matter, or (ii) any other party to the Proceeding giving rise to a claim
for indemnification 

  

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hereunder. Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the Corporation or Indemnitee in an action to determine Indemnitee’s right to indemnification under this Agreement. 
 (g) “Liabilities” shall mean liabilities of any type whatsoever including, but not limited to, any judgments, fines, ERISA excise taxes
and penalties, penalties and amounts paid in settlement (including all interest assessments and other charges paid or payable in connection with or in respect of such judgments, fines, penalties or amounts paid in settlement) of any Proceeding.

 (h) “Proceeding” shall mean any threatened, pending or completed action, claim, suit, arbitration, alternate dispute
resolution mechanism, investigation, administrative hearing or any other proceeding whether civil, criminal, administrative or investigative, that is associated with Indemnitee’s being an Agent of the Corporation. 
 (i) “Spin-off Date” shall mean the date on which Potlatch Corporation distributes on a pro rata basis to stockholders of Potlatch
Corporation all of the outstanding shares of common stock of the Corporation. 
 17. Binding Effect; Duration and Scope of Agreement.
This Agreement (a) shall be binding upon successors and assigns of the Corporation (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the
Corporation), and (b) shall be binding upon and inure to the benefit of the heirs, estate and personal and legal representatives of the Indemnitee. This Agreement shall be deemed to be effective as of the later of (i) the Spin-off Date and
(ii) the commencement date of Indemnitee’s service as an officer or director of the Corporation or as a manager, director or employee of a wholly-owned subsidiary of the Corporation, or one or more of such positions, and shall continue in
effect during the Indemnification Period, regardless of whether Indemnitee continues to serve as an Agent. 
 18. Severability. If any
provision or provisions of this Agreement (or any portion thereof) shall be held to be invalid, illegal or unenforceable for any reason whatsoever: 
 (a) the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby; and 
 (b) to the fullest extent legally possible, the provisions of this Agreement shall be construed so as to give effect to the intent of any provision held invalid, illegal or unenforceable. 
 19. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, as applied
to contracts between Delaware residents entered into and to be performed entirely within the State of Delaware, without regard to conflict of laws rules. 
 20. Consent to Jurisdiction. The Corporation and Indemnitee each irrevocably consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection with any action or proceeding that
arises out of or relates to this Agreement and agree that any 

  

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action instituted under this Agreement shall be brought only in the state courts of the State of Delaware. 
 21. Entire Agreement. This Agreement represents the entire agreement between the parties hereto, and there are no other agreements, contracts or
understandings between the parties hereto with respect to the subject matter of this Agreement, except as specifically referred to herein or as provided in Section 15 hereof. 
 22. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but
all of which together shall constitute one and the same Agreement. 
 IN WITNESS WHEREOF, the Corporation has caused this Agreement to be
executed by a duly authorized officer and Indemnitee has executed this Agreement as of the date first above written. 
  

			
	 CLEARWATER PAPER CORPORATION,
 a Delaware
corporation

		
	By	 	 
		
	Its	 	 


  

	
	INDEMNITEE
	
	 
	


  
  
  

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