Management Deferred Compensation Plan



 Exhibit 10.6 
 CLEARWATER PAPER CORPORATION 
 MANAGEMENT DEFERRED COMPENSATION PLAN 
 Effective December 16, 2008 








	1.	ESTABLISHMENT AND PURPOSE 

 (a) The Clearwater Paper
Corporation Management Deferred Compensation Plan was adopted effective as of December 16, 2008, by the Board of Directors of Clearwater Paper Corporation to provide an opportunity for senior management of Clearwater Paper Corporation who have
made the maximum elective contributions permitted under the 401(k) Plan to elect to defer additional compensation and to invest and accumulate such compensation on a tax-deferred basis. 
 (b) This Plan is also intended to provide the rules and regulations for deferral of awards under the Clearwater Paper Corporation Annual Incentive Plan
(the “AIP”) beginning with the 2009 performance period. 
 (c) Pursuant to the Employee Matters Agreement by and between Potlatch
Corporation and Clearwater Paper Corporation (the “EMA”), all deferred compensation liabilities under the Potlatch Corporation Management Performance Award Plan, the Potlatch Corporation Management Performance Award Plan II and the
Potlatch Corporation Management Deferred Compensation Plan (collectively, the “Prior Plans”) with respect to “Clearwater Employees” (as defined in the EMA) have been transferred to and assumed by this Plan. 
 (d) Deferral and payment elections made by Clearwater Employees under the Potlatch Corporation Management Performance Award Plan II and the Potlatch
Corporation Management Deferred Compensation Plan shall be given effect under this Plan. Certain provisions applicable to the payment of deferred compensation amounts transferred from the Potlatch Corporation Management Performance Award Plan, which
are not subject to Section 409A of the Code, are set forth in Addendum A to this Plan. 
 (e) The provisions of this Plan for
elections to defer base salary are effective for base salary earned on or after January 1, 2009. 
 (f) The Plan is intended to comply
with the requirements of Section 409A of the Code. The Plan is intended to constitute an unfunded program for the benefit of a select group of management or highly compensated employees of ERISA, and, as such, to be exempt from all of the
provisions of Parts 2, 3, and 4 of Title I of ERISA. 
  

	2.	DEFINITIONS 

 (a) “Affiliate” means any
other entity which would be treated as a single employer with the Corporation under Section 414(b) or (c) of the Code, provided that in applying such Sections and in accordance with the rules of Treasury Regulations
Section 1.409A-1(h)(3), the language “at least 50 percent” shall be used instead of “at least 80 percent.” 
 (b)
“AIP” means the Clearwater Paper Corporation Annual Incentive Plan and any successor plan thereto. 
 (c) “Beneficiary”
means the person or persons designated by the Employee to receive payment of the Employee’s Deferred Compensation Account in the event of the death of the Employee. 
  


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 (d) “Board” and “Board of Directors” means the board of directors of the Corporation.

 (e) “Code” means the Internal Revenue Code of 1986, as amended. 
 (f) “Committee” means the Compensation Committee of the Board. 
 (g) “Compensation” means the amount of compensation due by the Corporation to an Employee for his or her services as an Employee as either (i) annual base salary or (ii) an award under the AIP.

 (h) “Corporation” means Clearwater Paper Corporation, a Delaware corporation. 
 (i) “Deferred Compensation Account” means the bookkeeping account established pursuant to Section 6 on behalf of each Employee who elects
to participate in the Plan, including any account transferred to this Plan from a Prior Plan. Within an Employee’s Deferred Compensation Account, a Directed Investment Account, Stock Unit Account, Cash Account, and appropriate sub-accounts,
shall be maintained as are necessary for the proper administration of a Participant’s Deferred Compensation Account. An Employee who has made a deferral under a Prior Plan shall be deemed to have elected to participate in this Plan. A separate
Deferred Compensation Account shall be maintained on behalf of each Employee with respect to any deferred compensation amounts transferred to this Plan from the MPAP, as described in Addendum A. 
 (j) “Disabled” means an Employee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months. 
 (k) “Distribution” means the distribution by Potlatch Corporation to its stockholders of all of the outstanding shares of the common stock of Clearwater Paper Corporation then owned by Potlatch Corporation, pursuant to the
Separation and Distribution Agreement between Potlatch Corporation and Clearwater Paper Corporation. 
 (l) “Dividend Equivalent”
means an amount equal to the cash distribution paid on an outstanding share of the Corporation’s common stock. Dividend Equivalents shall be credited to Stock Units as if each Stock Unit were an outstanding share of the Corporation’s
common stock, except that Dividend Equivalents shall also be credited to fractional Stock Units. 
 (m) “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended. 
 (n) “Employee” means a full-time salaried employee of the Corporation or any
subsidiary thereof. 
 (o) “401(k) Plan” means the Clearwater Salaried 401(k) Plan, as amended. 
 (p) “MPAP” means the Potlatch Corporation Management Performance Award Plan. 
  

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 (q) “MPAP II” means the Potlatch Corporation Management Performance Award Plan II. 

(r) “Performance-Based Compensation” means compensation the amount of which, or the entitlement to which, is contingent on the satisfaction
of preestablished organizational or individual performance criteria relating to a performance period of at least twelve (12) consecutive months. Organizational or individual performance criteria are considered preestablished if established in
writing by not later than ninety (90) days after the commencement of the period of service to which the criteria relates, provided that the outcome is substantially uncertain at the time the criteria are established. Performance-Based
Compensation does not include any amount or portion of any amount that will be paid either regardless of performance, or based upon a level of performance that is substantially certain to be met at the time the criteria is established. Compensation
may be Performance-Based Compensation where the amount will be paid regardless of satisfaction of the performance criteria due to the Employee’s death, disability, or a Change in Control Event (as defined in Treasury Regulation Section
l.409A-3(i)(5)), provided that a payment made under such circumstances without regard to the satisfaction of the performance criteria will not constitute performance-based compensation. For this purpose, a disability refers to any medically
determinable physical or mental impairment resulting in the Participant’s inability to perform the duties of his or her position or any substantially similar position, where such impairment can be expected to result in death or can be expected
to last for a continuous period of not less than six months. Performance-Based Compensation may include payments based upon subjective performance criteria, provided that: (i) the subjective performance criteria are bona fide and relate to the
performance of the Participant, a group of service providers that includes the Participant, or a business unit for which the Participant provides services (which may include the entire organization); and (ii) the determination that any
subjective performance criteria have been met is not made by the Participant or a family member of the Participant (as defined in Section Code 267(c)(4) applied as if the family of an individual includes the spouse of any member of the family), or a
person under the effective control of the Participant or such a family member, and no amount of the compensation of the person making such determination is effectively controlled in whole or in part by the Participant or such a family member.

 (s) “Plan” means the Clearwater Paper Corporation Management Deferred Compensation Plan. 
 (t) “Plan Year” means the 12-month period beginning January 1 and ending December 31. 
 (u) “Prior Plan” means the Potlatch Corporation Management Performance Award Plan, the Potlatch Corporation Management Performance Award Plan
II and the Potlatch Corporation Management Deferred Compensation Plan. 
 (v) “Separation from Service” means termination of an
Employee’s service as an Employee consistent with Section 409A of the Code and the regulations promulgated thereunder. For purposes of the Plan, “Separation from Service” generally means termination of an Employee’s
employment as a common-law employee of the Corporation and each Affiliate of the Corporation. A Separation from Service will not be deemed to have occurred if an Employee 

  

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continues to provide services to the Corporation or an Affiliate in a capacity other than as an employee and if the former employee is providing a level of
bona fide services that is fifty percent (50%) or more of the average level of services rendered, during the immediately preceding thirty-six (36) months of employment with the Corporation or Affiliate; provided, however, that a Separation
from Service will be deemed to have occurred if it is reasonably anticipated that an Employee’s service with the Corporation and its Affiliates will terminate after a certain date or the level of bona fide services that the Employee will
perform after such date (whether as an employee or another capacity) will permanently reduce to a rate that is less than twenty percent (20%) of the bona fide level of services rendered, on average, during the immediately preceding thirty-six
(36) months (or if employed by the Corporation and its Affiliates less than thirty-six (36) months, such lesser period). However, the employment relationship is treated as continuing intact while the individual is on military leave, sick
leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the individual’s right to reemployment with the service recipient is provided either by statute or by contract. If the
period of leave exceeds six months and the individual’s right to reemployment is not provided either by statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period.

 (w) “Stock Units” means the deferred portion of Compensation, which is converted into a unit denominated in shares of the
Corporation’s common stock. 
 (x) “Value” means the closing price of the Corporation’s common stock as reported in the
New York Stock Exchange, Inc., composite transactions reports for the relevant date. 
 (y) “Variable Fractions Method” is a
distribution method for amounts payable in installments. The amount of the first installment is determined by dividing the Participant’s account balance by the total number of installments due. Each subsequent annual installment is equal to the
Participant’s account balance as adjusted for earnings or losses since the last distribution date divided by a denominator equal to the total number of installments due minus the number of installments previously paid. 
 (z) “Year” shall mean the calendar year. 
  

	3.	ELIGIBILITY TO MAKE DEFERRALS 

 (a) Each Employee
who is in a position that is eligible for Long-Term Incentive awards (an “Eligible Employee”) and has made the maximum elective deferrals under Section 402(g) of the Code or the maximum elective contributions permitted under the terms
of the 401(k) Plan shall be eligible to elect to defer base salary under the Plan. 
 (b) Each Eligible Employee who is eligible to receive
an award under the AIP shall be eligible to defer such award under the Plan; provided that, an Employee who is required to defer his or her award shall automatically become a participant in this Plan. 
  

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	4.	PARTICIPATION 

 (a) Each Employee who is eligible to
participate in the Plan pursuant to Section 3 above shall, prior to the beginning of each Year and in accordance with the applicable deadline established by the Committee, have the option to make an irrevocable election to defer a percentage of
his or her Compensation earned during the following Year before the beginning of each such Year. Compensation paid after December 31 of a Plan Year for services performed by the Employee during the final payroll period of the calendar year and
which payroll period includes the last day of such calendar year shall be treated as earned for services performed in the year paid. 
 (b)
Notwithstanding the foregoing, an Employee may make an irrevocable election to participate during a Year with respect to Compensation earned during that Year and subsequent to the filing of such election, provided such election is made within thirty
(30) days of the Employee’s initial eligibility to participate in this Plan and any other nonqualified deferred compensation plans treated as a single plan with this Plan under Section 409A of the Code. Any such initial election shall
apply only to Compensation earned for services performed after the date of the election. If compensation is due for services performed over a period of time which includes the period both before and the period after the date of the election, the
election will apply to an amount equal to the total amount of the compensation paid for such performance period multiplied by the ratio of the number of days remaining in the performance period after the election over the total number of days in the
performance period. 
 (c) Notwithstanding the preceding rules, a deferral election for an award of Compensation under the AIP, which
constitutes Performance-Based Compensation, may be made no later than six months before the end of such performance period. This special election rule is available only (i) if the Employee performs services for the Company or its Affiliate
continuously from the later of the beginning of the performance period or the date the performance criteria are established through the date an Election is made with respect to such payment, (ii) the Election is made before the amount of the
Performance-Based Compensation to be received becomes reasonably ascertainable or, if the Performance-Based Compensation is a specified or calculable amount, when the amount is substantially certain to be paid, and (iii) the performance period
is at least twelve (12) months in duration. 
 (d) The Committee may also adopt such additional or alternative election rules provided
that such rules comply with the rules of Section 409A of the Code and applicable regulatory authority. 
  

	5.	DEFERRAL ELECTIONS 

 (a) An Employee who elects to
participate in the Plan with respect to annual base salary or an award under the AIP for a Year shall file a deferral election with respect to each type of Compensation on such form as the Committee shall prescribe, which shall indicate: 

(i) The amount or percentage of each type of Compensation that such Employee elects to defer pursuant to the terms of the Plan. The percentage must be
in increments of ten percent (10%) and may not exceed fifty percent (50%) in the case of annual base salary. 

  

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An election to voluntarily defer an award under the AIP shall be for not less than fifty percent (50%) of such award. Notwithstanding the foregoing, an
election to defer compensation may not reduce the Employee’s remaining compensation below the amount necessary to satisfy applicable employment tax withholding, income tax withholding, and benefit plan withholding. This election shall be
irrevocable with respect to each type of Compensation for that Year to which it applies after the applicable deadline for making such election as provided in Section 4 for that Year. 
 (ii) The percentage of the Compensation deferred pursuant to the election that is to be converted into Stock Units or deemed invested in any other
investment account available under Section 7. 
 (b) An Employee who elects to Participate in the Plan shall have only one form of
payment election in effect for all amounts deferred under the Plan. Subject to Section 5(c), below, at the time of an Employee’s initial election to defer base salary or an award under the AIP, the Employee shall file an election and shall
indicate: 
 (i) Whether the deferred Compensation shall be paid in a lump sum or paid in five (5), ten (10), or fifteen (15) annual
installments. For purposes of the Plan, installment payments shall be treated as a single distribution for purposes of Section 409A of the Code. Deferred Compensation shall be paid in fifteen (15) annual installments unless the Employee
elects otherwise. 
 (ii) Whether benefit payments shall commence immediately upon Separation from Service or attainment of a specified age,
if later. 
 (c) A Participant’s election as to the time and form of payment of deferred Compensation shall be irrevocable and binding
on all deferred Compensation under the Plan. For avoidance of doubt it is intended that a Participant shall have only one method of payment in effect. Notwithstanding any provision herein to the contrary, an Employee or former Employee may revoke a
previous election and make a new election as to the time and form of distribution under the Plan. Such new election shall take effect twelve (12) months after it is filed with the Committee and shall apply only to that portion of the
Employee’s or former Employee’s Deferred Compensation Account and/or Stock Units scheduled to be paid more than twelve (12) months after the date the election is filed with the Committee; provided, however, that the newly scheduled
distribution date must be at least five years later than the originally scheduled distribution date. 
 (d) For purposes of determining the
payment election in effect for a participant with existing deferrals under the MPAP II or the Potlatch Corporation Management Deferred Compensation Plan as of the date this Plan is effective, such existing payment election shall remain in effect for
all existing and future deferrals under the Plan unless the Employee elects and becomes subject to a new payment election in accordance with the rules of this paragraph. Notwithstanding the limitations on changes in the time or form of payment under
this Section, a Participant may, not later than the date permitted by the Committee, which shall in no event be later than December 31, 2008, change his or her election with respect to the time or form of payment for his or her Deferred
Compensation Account, provided that such election shall not be 

  

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effective if it would defer payment of an amount otherwise payable in the year the election to change payment is made or would accelerate any payment into
the year the election to change the payment date is made. 
  

	6.	ESTABLISHMENT OF DEFERRED COMPENSATION ACCOUNTS 

 (a) For each Employee who has deferred compensation under the AIP or who has elected to defer base salary, the Corporation shall establish a Deferred Compensation Account to which shall be credited an amount equal to that portion of the
Compensation which would have been payable currently to the Employee but for the terms of the deferral election. 
 (b) If the deferral
election includes an election to convert a percentage of the Compensation deferred pursuant to the election into Stock Units, the number of full and fractional Stock Units shall be determined as follows: 
 (i) For an award under the AIP that is deferred under this Plan, the number of full and fractional Stock Units shall equal the number of shares of the
Corporation’s common stock determined by dividing the dollar value of the portion of the award to be converted into Stock Units by the closing price of the Corporation’s common stock on the date of the Committee meeting at which the award
payments are approved (or the most recent trading day if the Committee does not meet on a trading day). 
 (ii) Amounts of base salary which
are deferred and with respect to which the Employee has elected to defer into Stock Units shall be accumulated in the Cash Account subject to Section 7 below and shall be converted into full and fractional Stock Units on a quarterly basis as of
the first trading day of each calendar quarter by dividing the accumulated amount by the Value of the Corporation’s common stock on such crediting date. 
 (c) Deferred Compensation Accounts shall be established for any Employee for whom deferred compensation amounts have been transferred to this Plan from a Prior Plan. A separate Deferred Compensation Account shall be
maintained on behalf of each Employee with respect to any deferred compensation amounts transferred to this Plan from the MPAP, as described in Addendum A. 
 (d) Amounts credited to an Employee’s Deferred Compensation Account shall be fully vested at all times. 
  

	7.	TREATMENT OF DEFERRED COMPENSATION ACCOUNT AND STOCK UNITS DURING DEFERRAL PERIOD 

 (a) Directed Investment Account. The balance of each Employee’s Directed Investment Account shall be adjusted, for earnings and losses commencing with the date as of which any amount is credited to the
Directed Investment Account. Such earnings or losses during the deferral period for amounts credited to a Participant’s Directed Investment Account shall be computed by reference to the rate of return on one or more of the investment
alternatives that are available under the 401(k) Plan and which are designated by the Committee as available under this Plan. Each Employee may select (in ten percent (10%) increments) which investment alternative(s) will be used for this
purpose with respect to his or her deferred Compensation, and 

  

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the alternative(s) selected need not be the same as the Employee has selected under the 401(k) Plan, but any such selection will apply only prospectively.
The Committee shall determine how frequently such selections may be changed. 
 (b) Stock Unit Account. On each dividend payment date,
dividend equivalents shall be credited to each full and fractional Stock Unit to the extent such Stock Unit was in the Participant’s Stock Unit Account on the dividend record date immediately preceding the applicable dividend payment date. Such
dividend equivalents shall be converted into Stock Units as of the dividend payment date by dividing the amount of the dividend equivalents by the Value of the Corporation’s common stock on the dividend payment date. 
 (c) Cash Account. Amounts credited to the Cash Account shall be credited with additional amounts on a quarterly basis. Credits shall be made at a
rate equal to 120% of the long-term applicable federal rate, with quarterly compounding, as published under Section 1274(d) of the Code for the first month of each calendar quarter. For periods on and after January 1, 2009 (or such later
date as the Committee shall determine), the Cash Account shall be available only for the temporary holding of amounts pending conversion into Stock Units in accordance with Section 6, and Participants shall not be permitted to select the Cash
Account as a deemed investment for their deferrals. 
 (d) Effect of Certain Transactions. In the event that there occurs a dividend
or other distribution of shares of the Corporation’s common stock (“Shares”), a dividend in the form of cash or other property that materially affects the fair market value of the Shares, a stock split, a reverse stock split, a
split-up, a split-off, a spin-off, a combination or subdivision of Shares or other securities of the Corporation, an exchange of Shares for other securities of the Corporation, or a similar transaction or event that materially affects the fair
market value of the Shares, the Committee, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, shall make appropriate adjustments in the number of each Participant’s
Stock Units determined as of the date of such occurrence. 
  

	8.	FORM AND TIME OF PAYMENT OF DEFERRED COMPENSATION ACCOUNT 

 Subject to Section 8(b), payment of a Employee’s Deferred Compensation Account shall
commence on the April 15th following the later of (i) the end of the quarter in which Separation from Service occurs, or (ii) the
Participant’s attainment of the age elected by the Participant under Section 5(b) of the Plan. A Participant may request an earlier distribution of an amount credited to his or her Deferred Compensation Account upon the occurrence of an
unforeseeable emergency within the meaning of Section 409A and the regulations thereunder as determined by the Committee, but only to the extent necessary to alleviate the emergency. Payment of a Employee’s Stock Units shall also be made
at such time except that, within the six-month period beginning on the last date on which Compensation have been converted into Stock Units on behalf of the Employee, to the extent that Committee reasonably determines that earlier payment would
result in a violation of Federal securities laws, payment of the Employee’s Stock Units shall be made on the last day of the month in which such six-month period expires. Notwithstanding the previous sentence, Stock Unit payments shall be made
following the Employee’s death, Disability or the date of the Employee’s Separation from Service, without regard to whether such six-month period has expired. For the purpose of payment, Stock Units shall be converted to cash based on the
Value of the Corporation’s common stock on the last trading day of the month preceding the month during which the distribution is due to be made. 
  

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 The amount of each payment due for a Deferred
Compensation Account shall be determined by application of the Variable Fractions Method. Each annual installment for Years subsequent to the Year in which payment commences shall be made on April 15th. 
 In the case of a Employee who has both Stock Units and other deemed
investment accounts available under Section 7, if a partial distribution of a deferred portion of Compensation is to be made and if the Employee’s Stock Units are immediately payable in accordance with the first paragraph of this Section,
payment shall be made partially from the Employee’s Stock Units and partially from such other deemed investment accounts, in proportion to the relative value of the Employee’s Stock Units and such other accounts. If the Employee’s
Stock Units are not immediately payable in accordance with the previous paragraph, the partial payment shall be made entirely from such other deemed investment accounts, in proportion to the relative value of such accounts. 
 Notwithstanding any other provision of the Plan to the contrary: 
 (a) No distribution shall be made from the Plan that would constitute an impermissible acceleration of payment as defined in Section 409A(a)(3) of the Code and regulations promulgated thereunder; and 

(b) A distribution made to an Employee who is identified as a Key Employee at the time of his or her Separation from Service will be delayed for a
minimum of six (6) months if the Employee’s distribution is triggered by his or her Separation from Service. Any payment that otherwise would have been made except for the application of this subsection (b) during such six (6)-month
period will be made in one (1) lump sum payment no later than the last day of the second month following the month that is six (6) months from the date of the Employee’s Separation from Service. The Employee’s Deferred
Compensation Account shall continue to be adjusted for earnings and losses and Dividend Equivalents during the delay. The determination of which Employees are Key Employees will be made by the Corporation in its sole discretion in accordance with
this subsection (b) and Sections 416(i) and 409A of the Code and the regulations promulgated thereunder. 
 (i) “Identification
Date” means each December 31. 
 (ii) “Key Employee” means an Employee who, on an Identification Date, is: 
 (A) An officer of the Corporation having annual compensation greater than the compensation limit in Section 416(i)(1)(A) (i) of the Code,
provided that no more than fifty (50) officers of the Corporation shall be determined to be Key Employees as of any Identification Date; 
 (B) A five percent (5%) owner of the Corporation; or 
 (C) A one percent (1%) owner of the Corporation having annual
compensation from the Corporation of more than $150,000. 
  

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 If an Employee is identified as a Key Employee on an Identification Date, then such Employee shall be
considered a Key Employee for purposes of the Plan during the period beginning on the first April 1 following the Identification Date and ending on the next March 31. 
 (c) Notwithstanding the foregoing, a lump sum distribution shall be made in the Committee’s discretion to clear out a small balance held for the
benefit of the Participant (or his or her Beneficiary) provided that the Committee’s decision is evidenced in-writing prior to the date of the distribution, the distribution is not greater than the applicable dollar amount under
Section 402(g)(1)(B) of the Code and the payment results in the termination of all benefits due under the plan and all other “account balance plans” treated as a single nonqualified deferred compensation plan with this Plan under
Treasury Regulation Section 1.409A-1(c)(2). 
 (d) If a Plan benefit is payable to a minor or a person declared incompetent or to a
person incapable of handling the disposition of property, the Committee may direct payment to the guardian, legal representative or person having the care and custody of such minor, incompetent or person. The Administrator may require proof of
incompetency, minority, incapability or guardianship as it may deem appropriate prior to distribution. Such distribution shall completely discharge the Committee, the trustees of any trusts, and the Corporation from all liability with respect to
such benefit. 
  

	9.	EFFECT OF DEATH OF PARTICIPANT 

 Upon the death of a
participating Employee, all amounts, if any, remaining in his or her Deferred Compensation Account shall be distributed to the Beneficiary designated by the Employee. Such distribution shall be made at the time or times specified in the
Employee’s deferral election. If the designated Beneficiary does not survive the Employee or dies before receiving payment in full of the Employee’s Deferred Compensation Account, payment shall be made to the estate of the last to die of
the Employee or the designated Beneficiary. 
  

	10.	CLAIMS AND REVIEW PROCEDURE 

 (a) Informal
Resolution of Questions. Any participant who has questions or concerns about his or her deferred Compensation under the Plan is encouraged to communicate with the Vice President, Human Resources. If this discussion does not give the participant
satisfactory results, a formal claim for benefits may be made within one (1) year of the event giving rise to the claim in accordance with the procedures of this Section 10. 
 (b) Formal Benefits Claim - Review by Appeals Committee. A participant may make a written request for review of any matter concerning his or her
deferred Compensation under the Plan. The claim must be addressed to the Appeals Committee, Management Deferred Compensation Plan, Clearwater Paper Corporation, 601 W. Riverside Avenue, Suite 1100, Spokane, Washington 99201. The Corporation’s
Appeals Committee shall decide the action to be taken with respect to any such request and may require additional information, if necessary, to process the request. The Appeals Committee shall review the request and shall issue its decision, in
writing, no later than ninety (90) days after the date the request is received, unless the circumstances require an extension of time. If such an extension is required, written notice of the extension shall be furnished to the person making the
request within the initial ninety (90)-day 

  

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period, and the notice shall state the circumstances requiring the extension and the date by which the Appeals Committee expects to reach a decision on the
request. In no event shall the extension exceed a period of ninety (90) days from the end of the initial period. 
 (c) Notice of
Denied Request. If the Appeals Committee denies a request in whole or in part, it shall provide the person making the request with written notice of the denial within the period specified in Subsection (b) above. The notice shall set forth
the specific reason for the denial, reference to the specific Plan provisions upon which the denial is based, a description of any additional material or information necessary to perfect the request, an explanation of why such information is
required, and an explanation of the Plan’s appeal procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse
benefit determination on review. 
 (d) Appeal to Appeals Committee. 
 (i) A person whose request has been denied in whole or in part (or such person’s authorized representative) may file an appeal of the decision in
writing with the Appeals Committee within sixty (60) days of receipt of the notification of denial. The appeal must be addressed to: Appeals Committee, Management Deferred Compensation Plan, Clearwater Paper Corporation, 601 W. Riverside
Avenue, Suite 1100, Spokane, Washington 99201. The Appeals Committee, for good cause shown, may extend the period during which the appeal may be filed for another sixty (60) days. The appellant and his or her authorized representative shall be
permitted to submit written comments, documents, records and other information relating to the claim for benefits. Upon request and free of charge, the appellant should be provided reasonable access to and copies of, all documents, records or other
information relevant to the appellant’s claim. 
 (ii) The Appeals Committee’s review shall take into account all comments,
documents, records and other information submitted by the appellant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The Appeals Committee’s review shall not be
restricted to those provisions of the Plan cited in the original denial of the claim. 
 (iii) The Appeals Committee shall issue a written
decision within a reasonable period of time but not later than sixty (60) days after receipt of the appeal, unless special circumstances require an extension of time for processing, in which case the written decision shall be issued as soon as
possible, but not later than one-hundred twenty (120) days after receipt of an appeal. If such an extension is required, written notice shall be furnished to the appellant within the initial sixty (60)-day period. This notice shall state the
circumstances requiring the extension and the date by which the Appeals Committee expects to reach a decision on the appeal. 
 (iv) If the
decision on the appeal denies the claim in whole or in part written notice shall be furnished to the appellant. Such notice shall state the reason(s) for the denial, including references to specific Plan provisions upon which the denial was based.
The notice shall state that the appellant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim for 

  

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benefits. The notice shall describe any voluntary appeal procedures offered by the Plan and the appellant’s right to obtain the information about such
procedures. The notice shall also include a statement of the appellant’s right to bring an action under Section 502(a) of ERISA. 
 (v) The decision of the Appeals Committee on the appeal shall be final, conclusive and binding upon all persons and shall be given the maximum possible deference allowed by law. 
 (e) Exhaustion of Remedies. No legal or equitable action for benefits under the Plan shall be brought unless and until the claimant has submitted
a written claim for benefits in accordance with Section 10(a) above, has been notified that the claim is denied in accordance with Section 10(c) above, has filed a written request for a review of the claim in accordance with
Section 10(d) above, and has been notified in writing that the Appeals Committee has affirmed the denial of the claim in accordance with Section 10(d) above; provided, however, that an action for benefits may be brought after the Appeals
Committee has failed to act on the claim within the time prescribed in Section 10(b) and Section 10(d), respectively. 
  

	11.	PARTICIPANT’S RIGHTS UNSECURED 

 The interest
under the Plan of any participating Employee and such Employee’s right to receive a distribution from the Plan shall be an unsecured claim against the general assets of the Corporation. The Deferred Compensation Account and all deemed
investment accounts available under Section 7 shall be bookkeeping entries only and no Employee shall have an interest in or claim against any specific asset of the Corporation pursuant to the Plan. Notwithstanding the foregoing, the
Corporation may, in its discretion, choose to contribute to the Clearwater Paper Corporation Benefits Protection Trust Agreement to assist with the payment of benefits under the Plan. 
  

	12.	STATEMENT OF DEFERRED COMPENSATION ACCOUNT AND STOCK UNITS 

 The Committee shall provide an annual statement of each participating Employee’s Deferred Compensation Account as soon as practicable after the end of each calendar year. 
  

	13.	NONASSIGNABILITY OF INTERESTS 

 The interest and
property rights of any Employee under the Plan shall not be subject to option nor be assignable either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other
creditor’s process, and any act in violation of this Section 13 shall be void. 
  

	14.	ADMINISTRATION OF THE PLAN 

 The Plan shall be
administered by the Committee. In addition to the powers and duties otherwise set forth in the Plan, the Committee shall have full power and authority to administer and interpret the Plan, to establish procedures for administering the Plan and to
take any and all necessary action in connection therewith, including retaining outside managers to assist with the administration of the Plan. The Committee’s interpretation and construction of the Plan shall be conclusive and binding on all
persons. In its discretion, the Committee may delegate to the Vice President, Human Resources the authority for the effective administration of the Plan and for assigning responsibility to designated managers to carry out such duties. 
  

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 Within thirty (30) days after a Change of Control (as defined in Section 17), the Committee
shall appoint an independent committee consisting of at least three (3) current (as of the effective date of the Change of Control) or former Corporation officers and directors, which shall thereafter administer all claims for benefits under
the Plan. Upon such appointment the Committee shall cease to have any responsibility for claims administration under the Plan. 
  

	15.	AMENDMENT OR TERMINATION OF THE PLAN 

 (a) The Board
or the Committee may amend, suspend or terminate the Plan at any time. The foregoing notwithstanding, the Plan may not be amended (including any amendment to this Section 15) or terminated by the Board or the Committee if such amendment or
termination would or adversely affect or impair the Employee’s right to receive amounts credited to his or her Deferred Compensation Account. 
 (b) Except as provided in Section 15(c) or as otherwise permitted under Section 409A of the Code, in the event of termination of the Plan, the Employees’ Deferred Compensation Accounts may, in the Board’s or the
Committee’s discretion, be distributed within the period beginning twelve months after the date the Plan was terminated and ending twenty-four months after the date the Plan was terminated, or pursuant to Section 8, if earlier. If the Plan
is terminated and Deferred Compensation Accounts are distributed, the Board or the Committee shall terminate all account balance non-qualified deferred compensation plans with respect to all Employees and shall not adopt a new account balance
non-qualified deferred compensation plan for at least three (3) years after the date the Plan was terminated. A termination and liquidation of the Plan under this Section 15(b) shall be made only in compliance with Treasury Regulation
Section 1.409A-3(j)(4)(ix)(c). 
 (c) The Board or the Committee may terminate the Plan upon a corporate dissolution of the Corporation
that is taxed under Section 331 of the Code or with the approval of a bankruptcy court pursuant to 11 U.S.C. Section 503(b)(1)(A), provided that the Employees’ Deferred Compensation Accounts are distributed and included in the gross
income of the Employees by the latest of (i) the Year in which the Plan terminates or (ii) the first Year in which payment of the Deferred Compensation Accounts is administratively practicable. 
 (d) Notwithstanding the foregoing, the Vice President, Human Resources of the Corporation shall have the power and authority to amend the Plan with
respect to any amendment that (i) does not materially increase the cost of the Plan to the Corporation or (ii) is intended to comply with new or changed legal requirements applicable to the Plan, including, but not limited to,
Section 409A of the Code. 
  

	16.	SUCCESSORS AND ASSIGNS 

 The Plan shall be binding
upon the Corporation, its successors and assigns, and any parent corporation of the Corporation’s successors or assigns. Notwithstanding that the Plan may be binding upon a successor or assign by operation of law, the Corporation shall require
any successor or assign to expressly assume and agree to be bound by the Plan in the same manner and to the same extent that the Corporation would be if no succession or assignment had taken place. 
  

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	17.	CHANGE IN CONTROL 

 For purposes of the Plan,
“Change of Control” shall mean 
 (a) Upon consummation of a merger or consolidation involving the Corporation (a “Business
Combination”), in each case, unless, following such Business Combination, 
 (i) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the then outstanding shares of common stock of the Corporation (the “Outstanding Common Stock”) and the then outstanding voting securities of the Corporation entitled to vote
generally in the election of directors (the “Outstanding Voting Securities”) immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the corporation or other entity resulting from such Business Combination (including, without limitation, a
corporation or other entity which as a result of such transaction owns the Corporation either directly or through one or more subsidiaries), 
 (ii) no individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act)) (a “Person”) (excluding any corporation or other entity
resulting from such Business Combination or any employee benefit plan (or related trust) sponsored or maintained by the Corporation or any of its subsidiaries or such other corporation or other entity resulting from such Business Combination)
beneficially owns, directly or indirectly, 30% or more of, respectively, the then outstanding shares of common stock or common equity of the corporation or other entity resulting from such Business Combination or the combined voting power of the
then outstanding voting securities of such corporation or other entity except to the extent that such ownership is based on the beneficial ownership, directly or indirectly, of Outstanding Common Stock or Outstanding Voting Securities immediately
prior to the Business Combination, and 
 (iii) at least a majority of the members of the board of directors or similar governing body of the
corporation or other entity resulting from such Business Combination were members of the Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
 (b) On the date that individuals who, as of 11:59 p.m. (Pacific) on the date of the Distribution, constitute the Board of Directors (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board of Directors; provided, however, that any individual who becomes a member of the Board on or subsequent to the day immediately following the date of the Distribution
whose election, or nomination for election by the Corporation’s stockholders, was approved by a vote of at least a majority of the members of the Board then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, but excluding, for purposes of this proviso, any such individual whose appointment to the Board occurs as a result of an actual or threatened election contest with respect to the election or 

  

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removal of a member or members of the Board, an actual or threatened solicitation of proxies or consents or any other actual or threatened action by, or on
behalf of, any Person other than the Incumbent Board; or 
 (c) Upon the acquisition on or after the date of the Distribution by any Person
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either 
 (i) the then
Outstanding Common Stock, or 
 (ii) the combined voting power of the Outstanding Voting Securities; 
 provided, however, that the following acquisitions shall not be deemed to be covered by this paragraph (c): 
 (A) any acquisition of Outstanding Common Stock or Outstanding Voting Securities by the Corporation, 
 (B) any acquisition of Outstanding Common Stock or Outstanding Voting Securities by any employee benefit plan (or related trust) sponsored or maintained
by the Corporation, or 
 (C) any acquisition of Outstanding Common Stock or Outstanding Voting Securities by any corporation pursuant to a
transaction which complies with clauses (i), (ii) and (iii) of paragraph (a) of this Section; or 
 (d) Upon the consummation
of the sale, lease or exchange of all or substantially all of the assets of the Corporation; or 
 (b) (e) Upon the approval by the
stockholders of the Corporation of a complete liquidation or dissolution of the Corporation. 
  

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 ADDENDUM A 
 SPECIAL PROVISIONS APPLICABLE TO BENEFITS TRANSFERRED FROM 
 THE POTLATCH CORPORATION MANAGEMENT PERFORMANCE
AWARD PLAN 
 (THE “MPAP”) 
 The following provisions shall apply solely with respect to certain benefits transferred from the MPAP and assumed by this Plan pursuant to the Employee Matters Agreement by and between Potlatch Corporation and Clearwater Paper Corporation.
This Addendum is intended to apply solely to compensation that was both deferred and vested prior to January 1, 2005, and earnings on such amounts, which compensation and earnings are “grandfathered” from the application of section
409A of the Code (collectively, the “Grandfathered Benefits”). Accordingly, this Addendum shall not apply to any compensation originally deferred under this Plan, or originally deferred under the MPAP II or Potlatch Corporation Management
Deferred Compensation Plan and transferred to this Plan, or to any earnings on such amounts. 
 The Committee shall cause separate Deferred
Compensation Accounts to be established under this Plan to account for such Grandfathered Benefits separately from other benefits accrued under this Plan. The following provisions, which are based on Section 9 of the MPAP, shall apply solely to
such Grandfathered Benefits in lieu of the provisions of Sections 7 and 8 of this Plan (except as specifically provided below). Defined terms not otherwise defined in this Plan shall have the meaning given such terms under the MPAP. 
 DEFERRAL OF AWARDS; FORM AND TIME OF PAYMENT 
  

	(a)	A participant may elect to defer receipt of payment of a single Award or all future Awards under the MPAP until after termination of employment pursuant to rules and regulations
adopted by the Committee. In addition, in the absence of such an election, if the payment of an Award would cause the participant’s annual compensation to exceed the amount deductible under the Internal Revenue Code, the participant will be
required to defer receipt of the portion of the Award that would be non-deductible in the Award Year until after termination of employment. Such rules and regulations shall establish procedures for the Committee, at its discretion, to accelerate the
schedule of payments of deferred Awards. 

  

	(b)	The Award, the payment of which is deferred under (a) above, shall be converted at the participant’s election into cash and/or full and fractional stock units equal to the
number of shares the participant would have received if the Award had not been deferred. 

 On each dividend payment date,
dividend equivalents shall be credited to each full and fractional stock unit to the extent such stock unit was in the participant’s deferred account on the dividend record date immediately preceding the applicable dividend payment date. Such
dividend equivalents shall be converted into stock units as of the dividend payment date by dividing the amount of the dividend equivalents by the closing price of Potlatch Corporation’s common stock on the dividend payment date. 

  

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 Stock units shall be subject to adjustment as provided in Section 7(d) of the Plan. 
  

	(c)	The cash portion of an Award, the payment of which was deferred under (a) above, shall be credited with earnings during the period of deferral through December 31 of the
Plan Year preceding the Plan Year in which payment of the amounts deferred hereunder is made. The earnings credited shall be based on the following: 

  

	 	(i)	For periods prior to January 1, 2009, earnings shall be calculated using an interest rate equal to 70% of the higher of the following averages, compounded annually:
(i) the prime rate charged by the major commercial banks as of the first business day of each month (as reported in an official publication of the Federal Reserve System) or (ii) the average monthly long-term rate of A-rated corporate
bonds (as published in Moody’s Bond Record). 

  

	 	(ii)	For periods on and after January 1, 2009, earnings shall be calculated using an interest rate equal to 120% of the long-term applicable federal rate, with quarterly
compounding, as published under Section 1274(d) of the Code for the first month of each calendar quarter. 

  

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