# EDGAR Filing Document

**Accession Number:** 0000051434
**File Stem:** 0000051434-26-000055
**Filing Date:** 2026-2
**Character Count:** 869009
**Document Hash:** 7698737d5752f38f5846ccf8400f8187
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000051434-26-000055.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0000051434-26-000055

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 166

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260227

**DATE AS OF CHANGE**: 20260227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INTERNATIONAL PAPER CO /NEW/
- **CENTRAL INDEX KEY:** 0000051434
- **STANDARD INDUSTRIAL CLASSIFICATION:** PAPER MILLS [2621]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 130872805
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-03157
- **FILM NUMBER:** 26700414

**BUSINESS ADDRESS:**
- **STREET 1:** 6400 POPLAR AVENUE
- **CITY:** MEMPHIS
- **STATE:** TN
- **ZIP:** 38197
- **BUSINESS PHONE:** 901-419-7000

**MAIL ADDRESS:**
- **STREET 1:** 6400 POPLAR AVENUE
- **CITY:** MEMPHIS
- **STATE:** TN
- **ZIP:** 38197

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INTERNATIONAL PAPER & POWER CORP
- **DATE OF NAME CHANGE:** 19710527

?xml version='1.0' encoding='ASCII'? ip-20251231

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549** 

**FORM 10-K** 

---

| | |
|:---|:---|
| ☒ | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
|  | **For the fiscal year ended** |
|  | **12/31/2025** |
|  | **or** |
| ☐ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**  |
|  | **For the transition period from - to -** |

---

Commission File No. 1-3157

![Image_0.jpg](ip-20251231_g1.jpg)

**INTERNATIONAL PAPER COMPANY** 

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **New York** | **13-0872805** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

---

| | | |
|:---|:---|:---|
| **6400 Poplar Avenue** | **6400 Poplar Avenue** | **6400 Poplar Avenue** |
| **Memphis,** | **Tennessee** | **Tennessee** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) |
| **38197** | **38197** | **38197** |
| (Zip Code) | (Zip Code) | (Zip Code) |
| **Registrant's telephone number, including area code:** | **901** | **419-9000** |

---

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange on which registered** |
| Common Shares | IP | New York Stock Exchange |
| Common Shares | IPC | London Stock Exchange |

---

Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ◻

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ◻&nbsp;&nbsp;&nbsp;&nbsp;No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of

1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to

such filing requirements for the past 90 days. Yes ☒ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule

405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was

required to submit such files). Yes ☒ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting

company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and

"emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Large accelerated filer  | Accelerated filer  | Non-accelerated filer | Smaller reporting company | Emerging growth company |
| ☒ | ☐ | ☐ | ☐ | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with

any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. □

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its

internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting

firm that prepared or issued its audit report. ☒

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included

in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based

compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ◻

The aggregate market value of the Company's outstanding common stock held by non-affiliates of the registrant, computed by reference to the

closing price as reported on the New York Stock Exchange, as of the last business day of the registrant's most recently completed second fiscal

quarter (June 30, 2025) was approximately $24,671,507,117.

The number of shares outstanding of the Company's common stock as of February 20, 2026 was 529,469,427.

Documents incorporated by reference:

Portions of the registrant's proxy statement filed within 120 days of the close of the registrant's fiscal year in connection with registrant's 2026

annual meeting of shareholders are incorporated by reference into Part III of this Form 10-K.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**INTERNATIONAL PAPER COMPANY**

**INDEX TO ANNUAL REPORT ON FORM 10-K**

**FOR THE YEAR ENDED DECEMBER 31, 2025** 

---

| | | |
|:---|:---|:---|
| **<u>PART I.</u>** |  | <u>[1](#i5ba32aeab3f947f28a9e9ed735c0c7c4_13)</u> |
| **ITEM 1.** | **<u>[BUSINESS.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_16)</u>** | <u>[1](#i5ba32aeab3f947f28a9e9ed735c0c7c4_16)</u> |
|  | <u>[General](#i5ba32aeab3f947f28a9e9ed735c0c7c4_19)</u> | <u>[1](#i5ba32aeab3f947f28a9e9ed735c0c7c4_19)</u> |
|  | <u>[Human Capital](#i5ba32aeab3f947f28a9e9ed735c0c7c4_22)</u> | <u>[3](#i5ba32aeab3f947f28a9e9ed735c0c7c4_22)</u> |
|  | <u>[Competition and Costs](#i5ba32aeab3f947f28a9e9ed735c0c7c4_25)</u> | <u>[6](#i5ba32aeab3f947f28a9e9ed735c0c7c4_25)</u> |
|  | <u>[Marketing and Distribution](#i5ba32aeab3f947f28a9e9ed735c0c7c4_28)</u> | <u>[7](#i5ba32aeab3f947f28a9e9ed735c0c7c4_28)</u> |
|  | <u>[Description of Principal Products](#i5ba32aeab3f947f28a9e9ed735c0c7c4_31)</u> | <u>[7](#i5ba32aeab3f947f28a9e9ed735c0c7c4_31)</u> |
|  | <u>[Government Regulation](#i5ba32aeab3f947f28a9e9ed735c0c7c4_34)</u> | <u>[7](#i5ba32aeab3f947f28a9e9ed735c0c7c4_34)</u> |
|  | <u>[Environmental Protection](#i5ba32aeab3f947f28a9e9ed735c0c7c4_37)</u> | <u>[7](#i5ba32aeab3f947f28a9e9ed735c0c7c4_37)</u> |
|  | <u>[Climate Change](#i5ba32aeab3f947f28a9e9ed735c0c7c4_40)</u> | <u>[8](#i5ba32aeab3f947f28a9e9ed735c0c7c4_40)</u> |
|  | <u>[Raw Materials](#i5ba32aeab3f947f28a9e9ed735c0c7c4_43)</u> | <u>[11](#i5ba32aeab3f947f28a9e9ed735c0c7c4_43)</u> |
|  | <u>[Information About Our Executive Officers](#i5ba32aeab3f947f28a9e9ed735c0c7c4_46)</u> | <u>[11](#i5ba32aeab3f947f28a9e9ed735c0c7c4_46)</u> |
|  | <u>[Forward-looking Statements](#i5ba32aeab3f947f28a9e9ed735c0c7c4_49)</u> | <u>[12](#i5ba32aeab3f947f28a9e9ed735c0c7c4_49)</u> |
| **ITEM 1A.** | **<u>[RISK FACTORS.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_52)</u>** | <u>[13](#i5ba32aeab3f947f28a9e9ed735c0c7c4_52)</u> |
| **ITEM 1B.** | **<u>[UNRESOLVED STAFF COMMENTS.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_55)</u>** | <u>[31](#i5ba32aeab3f947f28a9e9ed735c0c7c4_55)</u> |
| **ITEM 1C.** | **<u>[CYBERSECURITY.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_58)</u>** | <u>[31](#i5ba32aeab3f947f28a9e9ed735c0c7c4_58)</u> |
| **ITEM 2.** | **<u>[PROPERTIES.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_61)</u>** | <u>[33](#i5ba32aeab3f947f28a9e9ed735c0c7c4_61)</u> |
|  | <u>[Mills and Plants](#i5ba32aeab3f947f28a9e9ed735c0c7c4_64)</u> | <u>[33](#i5ba32aeab3f947f28a9e9ed735c0c7c4_64)</u> |
|  | <u>[Capital Investments and Dispositions](#i5ba32aeab3f947f28a9e9ed735c0c7c4_67)</u> | <u>[34](#i5ba32aeab3f947f28a9e9ed735c0c7c4_67)</u> |
| **ITEM 3.** | **<u>[LEGAL PROCEEDINGS.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_70)</u>** | <u>[34](#i5ba32aeab3f947f28a9e9ed735c0c7c4_70)</u> |
| **ITEM 4.** | **<u>[MINE SAFETY DISCLOSURES.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_73)</u>** | <u>[34](#i5ba32aeab3f947f28a9e9ed735c0c7c4_73)</u> |
| **<u>PART II.</u>** |  | <u>[35](#i5ba32aeab3f947f28a9e9ed735c0c7c4_76)</u> |
| **ITEM 5.** | **<u>[MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED](#i5ba32aeab3f947f28a9e9ed735c0c7c4_79)</u>**<br>**<u>[STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY](#i5ba32aeab3f947f28a9e9ed735c0c7c4_79)</u>**<br>**<u>[SECURITIES.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_79)</u>**<br>| <u>[35](#i5ba32aeab3f947f28a9e9ed735c0c7c4_79)</u> |
| **ITEM 6.** | **RESERVED** |  |
| **ITEM 7.** | **<u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>**<br>**<u>[AND RESULTS OF OPERATIONS.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>**<br>| <u>[36](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u> |
|  | <u>[Executive Summary](#i5ba32aeab3f947f28a9e9ed735c0c7c4_91)</u> | <u>[37](#i5ba32aeab3f947f28a9e9ed735c0c7c4_91)</u> |
|  | <u>[Results of Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_94)</u> | <u>[42](#i5ba32aeab3f947f28a9e9ed735c0c7c4_94)</u> |
|  | <u>[Description of Business Segments](#i5ba32aeab3f947f28a9e9ed735c0c7c4_97)</u> | <u>[44](#i5ba32aeab3f947f28a9e9ed735c0c7c4_97)</u> |
|  | <u>[Business Segment Results](#i5ba32aeab3f947f28a9e9ed735c0c7c4_100)</u> | <u>[44](#i5ba32aeab3f947f28a9e9ed735c0c7c4_100)</u> |
|  | <u>[Liquidity and Capital Resources](#i5ba32aeab3f947f28a9e9ed735c0c7c4_103)</u> | <u>[45](#i5ba32aeab3f947f28a9e9ed735c0c7c4_103)</u> |
|  | <u>[Critical Accounting Policies and Significant Accounting Estimates](#i5ba32aeab3f947f28a9e9ed735c0c7c4_106)</u> | <u>[49](#i5ba32aeab3f947f28a9e9ed735c0c7c4_106)</u> |
|  | <u>[Legal Proceedings](#i5ba32aeab3f947f28a9e9ed735c0c7c4_109)</u> | <u>[53](#i5ba32aeab3f947f28a9e9ed735c0c7c4_109)</u> |
|  | <u>[Recent Accounting Developments](#i5ba32aeab3f947f28a9e9ed735c0c7c4_112)</u> | <u>[53](#i5ba32aeab3f947f28a9e9ed735c0c7c4_112)</u> |
|  | <u>[Effect of Inflation](#i5ba32aeab3f947f28a9e9ed735c0c7c4_115)</u> | <u>[53](#i5ba32aeab3f947f28a9e9ed735c0c7c4_115)</u> |
|  | <u>[Foreign Currency Effects](#i5ba32aeab3f947f28a9e9ed735c0c7c4_118)</u> | <u>[53](#i5ba32aeab3f947f28a9e9ed735c0c7c4_118)</u> |
|  | <u>[Market Risk](#i5ba32aeab3f947f28a9e9ed735c0c7c4_121)</u> | <u>[54](#i5ba32aeab3f947f28a9e9ed735c0c7c4_121)</u> |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**INTERNATIONAL PAPER COMPANY**

**INDEX TO ANNUAL REPORT ON FORM 10-K**

**FOR THE YEAR ENDED DECEMBER 31, 2025** 

---

| | | |
|:---|:---|:---|
| **ITEM 7A.** | **<u>[QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET](#i5ba32aeab3f947f28a9e9ed735c0c7c4_124)</u>**<br>**<u>[RISK.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_124)</u>**<br>| <u>[54](#i5ba32aeab3f947f28a9e9ed735c0c7c4_124)</u> |
| **ITEM 8.** | **<u>[FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>** | <u>[55](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> |
|  | <u>[Report of Management on Financial Statements, Internal Control over](#i5ba32aeab3f947f28a9e9ed735c0c7c4_130)</u><br><u>[Financial Reporting and Internal Control Environment and Board of](#i5ba32aeab3f947f28a9e9ed735c0c7c4_130)</u><br><u>[Directors Oversight](#i5ba32aeab3f947f28a9e9ed735c0c7c4_130)</u><br>| <u>[55](#i5ba32aeab3f947f28a9e9ed735c0c7c4_130)</u> |
|  | <u>[Reports of Deloitte & Touche LLP, Independent Registered Public](#i5ba32aeab3f947f28a9e9ed735c0c7c4_133)</u><br><u>[Accounting Firm](#i5ba32aeab3f947f28a9e9ed735c0c7c4_133)</u> <br>| <u>[57](#i5ba32aeab3f947f28a9e9ed735c0c7c4_133)</u> |
|  | <u>[Consolidated Statement of Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_136)</u> | <u>[62](#i5ba32aeab3f947f28a9e9ed735c0c7c4_136)</u> |
|  | <u>[Consolidated Statement of Comprehensive Income (Loss)](#i5ba32aeab3f947f28a9e9ed735c0c7c4_139)</u> | <u>[63](#i5ba32aeab3f947f28a9e9ed735c0c7c4_139)</u> |
|  | <u>[Consolidated Balance Sheet](#i5ba32aeab3f947f28a9e9ed735c0c7c4_142)</u> | <u>[64](#i5ba32aeab3f947f28a9e9ed735c0c7c4_142)</u> |
|  | <u>[Consolidated Statement of Cash Flows](#i5ba32aeab3f947f28a9e9ed735c0c7c4_145)</u> | <u>[65](#i5ba32aeab3f947f28a9e9ed735c0c7c4_145)</u> |
|  | <u>[Consolidated Statement of Changes in Equity](#i5ba32aeab3f947f28a9e9ed735c0c7c4_148)</u> | <u>[66](#i5ba32aeab3f947f28a9e9ed735c0c7c4_148)</u> |
|  | <u>[Notes to Consolidated Financial Statements](#i5ba32aeab3f947f28a9e9ed735c0c7c4_151)</u> | <u>[67](#i5ba32aeab3f947f28a9e9ed735c0c7c4_151)</u> |
| **ITEM 9.** | **<u>[CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON](#i5ba32aeab3f947f28a9e9ed735c0c7c4_217)</u>**<br>**<u>[ACCOUNTING AND FINANCIAL DISCLOSURE.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_217)</u>**<br>| <u>[120](#i5ba32aeab3f947f28a9e9ed735c0c7c4_217)</u> |
| **ITEM 9A.** | **<u>[CONTROLS AND PROCEDURES.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_220)</u>** | <u>[120](#i5ba32aeab3f947f28a9e9ed735c0c7c4_220)</u> |
| **ITEM 9B.** | **<u>[OTHER INFORMATION.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_223)</u>** | <u>[120](#i5ba32aeab3f947f28a9e9ed735c0c7c4_223)</u> |
| **ITEM 9C.** | **<u>[DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT](#i5ba32aeab3f947f28a9e9ed735c0c7c4_226)</u>**<br>**<u>[INSPECTIONS.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_226)</u>**<br>| <u>[120](#i5ba32aeab3f947f28a9e9ed735c0c7c4_223)</u> |
| **<u>PART III.</u>** |  | <u>[121](#i5ba32aeab3f947f28a9e9ed735c0c7c4_229)</u> |
| **ITEM 10.** | **<u>[DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_232)</u>** | <u>[121](#i5ba32aeab3f947f28a9e9ed735c0c7c4_232)</u> |
| **ITEM 11.** | **<u>[EXECUTIVE COMPENSATION.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_235)</u>** | <u>[121](#i5ba32aeab3f947f28a9e9ed735c0c7c4_235)</u> |
| **ITEM 12.** | **<u>[SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND](#i5ba32aeab3f947f28a9e9ed735c0c7c4_238)</u>**<br>**<u>[MANAGEMENT AND RELATED STOCKHOLDER MATTERS.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_238)</u>**<br>| <u>[122](#i5ba32aeab3f947f28a9e9ed735c0c7c4_238)</u> |
| **ITEM 13.** | **<u>[CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND](#i5ba32aeab3f947f28a9e9ed735c0c7c4_241)</u>**<br>**<u>[DIRECTOR INDEPENDENCE.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_241)</u>**<br>| <u>[122](#i5ba32aeab3f947f28a9e9ed735c0c7c4_241)</u> |
| **ITEM 14.** | **<u>[PRINCIPAL ACCOUNTANT FEES AND SERVICES.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_244)</u>** | <u>[122](#i5ba32aeab3f947f28a9e9ed735c0c7c4_244)</u> |
| **<u>PART IV.</u>** |  | <u>[122](#i5ba32aeab3f947f28a9e9ed735c0c7c4_247)</u> |
| **ITEM 15.** | **<u>[EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_250)</u>** | <u>[122](#i5ba32aeab3f947f28a9e9ed735c0c7c4_250)</u> |
|  | <u>[Additional Financial Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_253)</u> | <u>[123](#i5ba32aeab3f947f28a9e9ed735c0c7c4_253)</u> |
| **ITEM 16.** | **<u>[FORM 10-K SUMMARY.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_256)</u>** | <u>[129](#i5ba32aeab3f947f28a9e9ed735c0c7c4_256)</u> |
|  | **<u>[SIGNATURES.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_259)</u>** | <u>[130](#i5ba32aeab3f947f28a9e9ed735c0c7c4_259)</u> |
| **APPENDIX I** | **<u>[2025 LISTING OF FACILITIES.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_262)</u>** | <u>[A-1](#i5ba32aeab3f947f28a9e9ed735c0c7c4_262)</u> |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[PART I.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_13)</u>**

**<u>[ITEM 1. BUSINESS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_16)</u>**

**<u>[GENERAL](#i5ba32aeab3f947f28a9e9ed735c0c7c4_19)</u>**

**DESCRIPTION OF BUSINESS**

International Paper Company (the "Company," "International Paper" or "IP", which may also be referred to as "we"

or "us") is a global leader in sustainable packaging solutions. We produce renewable fiber-based packaging

products with manufacturing operations in North America, Latin America, Europe and North Africa. We are a New

York corporation, incorporated in 1941 as the successor to the New York corporation of the same name organized in

1898. In recent years, the Company has undergone significant transformation designed to simplify our operations,

strengthen performance and position the business for long-term value creation.

**STRATEGY**

At International Paper, we follow the IP 80/20 performance system. The 80/20 approach is a disciplined, data-driven

operating model focused on simplification, segmentation, resourcing and growth. In recent years the Company has

taken actions to drive meaningful operational improvement and increase strategic flexibility across our global

portfolio, including:

---

| | | | |
|:---|:---|:---|:---|
| **Simplify** | **Segment** | **Resource** | **Grow** |
| Focusing on our core <br>business: sustainable <br>packaging solutions<br>| Concentrating on the right <br>geographies within each region <br>| Tailoring investment and capital <br>allocation strategies to meet distinct <br>needs<br>| Winning with customers and <br>providing superior customer <br>experiences<br>|
| Exiting non-core businesses | Planning to separate into two <br>independent, publicly traded <br>companies in North America and <br>EMEA (announced Jan 2026)<br>| Investing in greenfield packaging <br>facilities; plans for two new plants <br>announced in 2025<br>| Enhancing investor base in both <br>North America and EMEA<br>|
| Optimizing internal processes <br>and organizational structures <br>to reduce complexity<br>| Prioritizing the right customer <br>segments and product offerings<br>| Investing in our talent and putting <br>the right people in the right roles to <br>create value<br>| Focusing on achieving an <br>advantaged cost position<br>|

---

We remain confident that the initiatives undertaken as part of our transformational journey will unlock substantial

value at IP and strengthen the Company for our employees, customers and shareholders.

***2025 Highlights***

***•***Financial: Net sales in 2025 totaled $23.63 billion and cash provided by operating activities totaled $1.7

billion.

• Strategic Acquisition: Completed the acquisition of DS Smith Ltd. ("DS Smith"), advanced regional

integration and implemented the 80/20 performance system within the new teams; enabled cross-business

sharing of best practices.

• Strategic Divestiture: Sold our Global Cellulose Fibers business for $1.5 billion to American Industrial

Partners (completed January 2026).

• Portfolio Rationalizations: Exited non-core businesses and markets, streamlined our footprint and

redeployed resources where needed.

• Organizational Improvements: Streamlined our organizational structure to eliminate redundancies created

by the acquisition, further decentralized our teams, outsourced some functional areas and better resourced

high value-creation areas.

• Shareholder Returns: Returned $977 million to shareholders in dividends.

• Packaging Focused Company: Took actions to position IP as a pure play company dedicated exclusively to

sustainable packaging.

***2026 Focus***

In 2026, we will continue to drive sustainable value creation and advance our company. Through the application of

our 80/20 performance system, we will execute our strategy with a sharp focus on achieving an advantaged cost

position, delivering superior customer experience and capturing a high relative supply position in the right

geographies, with the right customers and the right product offerings. A critical priority will be the execution of the

strategic separation to create two independent, publicly traded companies in North America and EMEA, which we

aim to complete near the end of 2026 or early 2027. In North America, the business will continue strengthening its

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

position in the region, focusing on customers and leading on innovation with an advantaged cost position. In EMEA,

we will prepare the business to stand alone as an independent, publicly traded entity following the separation with

the goal of becoming the leading provider of innovative, sustainable packaging solutions in EMEA.

From 2021 through 2025, International Paper's capital expenditures totaled approximately $5.4 billion, excluding

mergers and acquisitions. These expenditures reflect our continuing efforts to use our capital strategically to

improve product quality and environmental performance, as well as lower costs, maintain reliability of operations

and deploy strategic capital for capacity expansion. Capital expenditures in 2025 were approximately $1.9 billion

and are expected to be approximately $2.0 billion to $2.1 billion in 2026. You can find more information about capital

expenditures in <u>[Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>.

Discussions of acquisitions can be found in <u>[Note 7 Acquisitions](#i5ba32aeab3f947f28a9e9ed735c0c7c4_172)</u> of <u>[Item 8. Financial Statements and Supplementary](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> 

<u>[Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>.

You can find discussions of restructuring charges and other special items in <u>[Item 7. Management's Discussion and](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u> 

<u>[Analysis of Financial Condition and Results of Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>. For further discussion on our business strategies, see

<u>[Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>.

**CURRENT BUSINESS OVERVIEW**

In the United States, as of the date of this filing, the Company operated 15 packaging mills, 159 converting and

packaging plants and 15 recycling plants. Additionally, production facilities in Europe, North Africa and Latin America

included 14 containerboard mills, 159 converting and packaging plants and 20 recycling plants. Substantially all our

businesses have experienced, and are likely to continue to experience, cycles relating to industry capacity and

general economic conditions.

**VALUES**

We are guided by our Company values:

• Safety – Above all else, we care about people. We look out for each other to ensure everyone is physically

and emotionally safe.

• Ethics – We act honestly and operate with integrity and respect. We promote a culture of transparency and

accountability.

• Excellence – We set high expectations and deliver outstanding results for each other, our customers and

our shareholders.

**SEGMENTS**

We operate under two divisions, which form the basis for the two segments we report, Packaging Solutions North

America and Packaging Solutions EMEA. A description of these business segments can be found in <u>[Item 7.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u> 

<u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>.

**AVAILABLE INFORMATION**

Throughout this Annual Report on Form 10-K, we "incorporate by reference" certain information in parts of other

documents filed with the U.S. Securities and Exchange Commission ("SEC"). The SEC permits us to disclose

important information by referring you to those documents. Our annual reports on Form 10-K, quarterly reports on

Form 10-Q, current reports on Form 8-K and proxy statements, along with all other reports and any amendments

thereto filed with or furnished to the SEC, are publicly available free of charge on the Investors section of our

website at www.internationalpaper.com as soon as reasonably practicable after we electronically file such material

with, or furnish it to, the SEC. We encourage you to refer to such information.

You can learn more about us by visiting our website at www.internationalpaper.com, which includes information

about the Company, our SEC filings, financial and other information for investors. Information on our website could

be deemed to be material information. We encourage investors, the media, and other interested parties to visit this

website regularly for updates. The information contained on or connected to our website is not incorporated by

reference into this Annual Report on Form 10-K and should not be considered part of this or any other report that we

file with or furnish to the SEC. Our internet address is included as an inactive textual reference only.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[HUMAN CAPITAL](#i5ba32aeab3f947f28a9e9ed735c0c7c4_22)</u>** 

**EMPLOYEES** 

As of December 31, 2025, we have approximately 62,602 employees, nearly 30,421 of whom are in the United

States. Of our U.S. employees, 20,705 are hourly, with unions representing approximately 11,498 employees. Of

this number, 8,622 are represented by the United Steelworkers union ("USW").

International Paper, the USW, and several other unions have entered into five master agreements covering various

U.S. mills and converting facilities. Four of the master agreements are with the USW and include members from the

International Association of Machinists and Aerospace Workers, International Brotherhood of Electrical Workers,

United Food and Commercial Workers International Union and Workers Unite at certain U.S. mills and converting

facilities. The Company also has a master agreement with District Counsel 2, which is affiliated with the Printing

Packaging & Production Workers Union of North America that covers additional converting facilities. Individual

facilities continue to have local agreements for subjects not covered by the master agreements. If local facility

agreements are not successfully negotiated at the time of expiration, under the terms of the master agreements, the

local agreements will automatically renew with the same terms in effect.

In addition to our U.S. labor agreements, we operate manufacturing facilities across EMEA, where labor relations

are governed by local laws, works councils, national unions, and country specific collective bargaining frameworks.

Labor practices, employment protections, and negotiation processes in these regions can differ significantly from

those in the U.S. and may impose additional requirements related to consultation, employee representation, and

changes in operations. The Company works collaboratively with these local bodies and employee representatives,

but labor related regulations, negotiations, or disruptions in any of these jurisdictions could impact operations, costs,

or workforce flexibility.

**SAFETY AND WELLBEING**

At International Paper, we value safety above all else. The safety and well-being of our employees, visitors and

business partners is fundamental to how we operate. In 2025, we reinforced our commitment to safety performance

and further implemented our Safety Excellence strategy, which is designed to strengthen our safety culture across

all operations.

Our Board of Directors has oversight of our safety strategy, and in 2025 began receiving updates on our Safety

Excellence efforts at every Board meeting, elevating safety as a standing governance priority and reinforcing

accountability at the highest levels of the Company. In addition, in 2026 the Board participated in an intensive, in-

person safety training led by our third-party safety consultant alongside senior management, further strengthening

alignment on our Safety Excellence objectives and modeling the leadership behaviors we expect throughout the

organization.

Through our Safety Excellence efforts, we are building a culture guided by five key attributes:

1. We speak up and take action – every time, without fear.

2. We show up where the work happens and listen with intent.

3. We lead with humility and curiosity.

4. We proactively eliminate risk and invest in what matters.

5. We create a culture of care, trust, and accountability.

To ensure lasting impact, in 2025 we continued engagement of a leading safety consultant and initiated

comprehensive, top-down training and cascading through every level of leadership. Members of our executive

teams actively participated in safety leadership training, personal coaching and in-field demonstrations, reinforcing

accountability and modeling the behaviors we expect across the organization. These efforts are part of a broader

plan to embed safety into every aspect of our operations, with additional initiatives scheduled for 2026 and 2027 to

further advance our culture of safety excellence and engage every team member across IP.

We believe that safety performance and operational performance are inextricably linked. Plants and mills that

operate safely are less likely to experience unplanned process interruptions and downtime. The culture we are

building to improve safety performance also improves asset reliability, enhances production stability and supports

more consistent cost performance. Accordingly, the key drivers of strong safety performance contribute directly to

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

operational excellence and, in turn, to our financial results. Our focus on Safety Excellence is therefore both a

cultural imperative and a key operational priority.

Our goal is to achieve zero serious injuries and fatalities at all sites and see that everyone goes home safely at the

end of each workday. This commitment means empowering every team member to stop unsafe work without

hesitation. To advance this goal, the following endeavors were undertaken in 2025:

• Trained 163 top leaders in 84 sessions that included classroom modules and coaching;

• Began training 3,400 site level leaders through classroom modules and in-field coaching;

• Established a Safety Governance Team in North America made up of executive leaders responsible for all

North American operations;

• Elevated safety updates as a standing agenda item at every meeting of the Board of Directors;

• Executed targeted investments to sustainably reduce exposure to harm in our facilities; and

• Celebrated team members who modeled our safety culture through personal recognition by our CEO and

sharing stories across the enterprise, reinforcing a culture where safety leadership is valued and visible.

We also believe workplace safety encompasses holistic well-being. We are committed to supporting the mental,

emotional, physical, professional and financial well-being of our employees and their families. Through our

Employee Assistance Program ("EAP"), offered at no cost to employees and family members, we provide resources

such as counseling, well-being coaching, financial guidance, identity theft resolution and support for emotional and

psychological safety. We believe these services help employees manage stress, build resilience, and achieve

personal and professional goals. Our holistic approach to wellness also includes tools and guidance for

incorporating wellness habits into daily life, ensuring our employees have the support they need to thrive.

**TALENT MANAGEMENT**

The attraction, retention and development of our employees is critical to our success. We strive to create a positive

employee experience that begins at onboarding. Our Human Resources Talent Management Team hosts online

Global New Employee Orientation for employees and each business conducts onsite new hire integration training

unique to its business and/or facility. This experience continues through our continuous learning, development and

performance management programs. We provide continuing education courses that are relevant to our industry and

job functions within the Company, including both instructor-led and online training through our Learning

Management System ("LMS") MyLearning platform. Across the enterprise in 2025, employees completed nearly

830,000 learning activities through our platform.

In addition, we have created learning paths for specific positions that are designed to encourage an employee's

advancement and growth within our organization, such as our REACH (Recruit, Engage, Align College Hires)

program and Global Manufacturing Training Initiative programs. Through REACH we recruit and develop early-

career engineers and safety professionals for our U.S. mills, preparing them to become future leaders. We invest in

the growth and development of our employees by providing a multi-dimensional approach to learning that

empowers, intellectually grows and professionally develops our employees. Our Global Manufacturing Training

Initiative provides training services to hourly operations and maintenance employees in our mills in a standardized

and structured manner. On the converting side of our business, nearly 100 front line and future leaders participated

in our multi-day in-person Leadership Application and Professional Development and Manufacturing Management

Associate Programs during 2025.

We develop leaders through a broad range of LMS virtual and in-person resources, courses and workshops for

individual contributors, people leaders and teams. In 2025, 44 senior leaders participated in the first offering of a

multi-part workshop series developed in partnership with The Aspen Institute. The program focused on cultivating

purpose-driven leadership, trust and collaboration, and equipping participants with the mindset and skills to navigate

complexity and drive meaningful impact.

We support employees in pursuing and preparing for future positions at the Company in several ways. We provide

tuition reimbursement and student loan assistance to help employees repay qualified student loans. We also offer

peer mentoring and leadership and career development training to support and develop our employees. These

resources provide employees with the skills and support they need to achieve their career goals, build management

skills and become leaders within our Company.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

The labor market for both hourly and salaried workers continues to be competitive. For additional information

regarding risks related to the current labor market, see <u>[Item 1A. Risk Factors](#i5ba32aeab3f947f28a9e9ed735c0c7c4_52)</u> – ***We operate in a challenging*** 

***market for talent and may fail to attract and retain qualified personnel, including key management*** 

***personnel.***

**COMPENSATION AND BENEFITS**

We view compensation and benefits as part of how we attract, engage and retain our talented workforce. We do so

by rewarding performance while ensuring competitive compensation in our local markets around the world. We

continually evaluate our compensation and benefits so that we offer optimal compensation programs and remain a

leading employer of choice in the areas in which we operate.

**TEAM-ORIENTED CULTURE**

At International Paper, we strive to create a high-trust, high-performance culture. We focus on promoting a culture

that leverages the talents of all employees, and implementing practices that attract, recruit and retain a broad array

of talent, guided by our ongoing dedication to equal employment opportunity for all. We believe our efforts will lead

to improved business results, as teams with a broad range of perspectives drive innovation, enhance decision-

making, and better reflect the markets we serve.

We support enterprise-wide employee-led resource groups ("ERGs") that are open to all employees and provide a

forum to communicate and exchange ideas and build a network of relationships across the Company. Our ERGs

are designed to help educate and motivate our global workforce, strengthening our business practices.

The make-up of our Board of Directors reflects our efforts to seek the most qualified board candidates with a broad

range of experiences and perspectives.

Our Executive Leadership Team ("ELT") is currently comprised of our chief executive officer, two executive vice

presidents and three senior vice presidents who oversee crucial functions and business units within the Company.

By virtue of our secondary listing on the London Stock Exchange, International Paper is now subject to certain

board composition disclosure requirements under the UK Listing Rules (the "UKLR") established by the UK

Financial Conduct Authority (the "FCA"). The information below is required under UKLR 14.3.30R. The required

disclosure below is set out as of December 31, 2025 and the data provided in relation to the Board and executive

officers has been collected through the annual Directors and Officers' questionnaire.

---

| | | |
|:---|:---|:---|
| **UKLR Reporting Standards (the** <br>**"Standards")**<br>| **Result** | **Further notes** |
| At least 40% of the Board are women. | Not met | 30% of the Board were women. |
| At least one member of the Board is from an <br>ethnic minority. <br>| Met | There were two ethnic minority men on the Board.  |
| At least one of the senior Board positions <br>(Chair, CEO, Senior Independent Director <br>(SID) or CFO) is a woman.<br>| Not met | The senior Board positions of Chairman, CEO, CFO and <br>Lead Director are currently held by men. Until the <br>individuals in those positions retire or otherwise leave, the <br>Company will not meet the Standards. <br>|

---

In accordance with UKLR 14.3.31R, numerical data on the ethnic background and sex of the individuals on the

Company's Board and in its executive management as of December 31, 2025 is set out below:

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Number of** <br>**Board Members**<br>| **Percentage of** <br>**the Board** <sup>1</sup><br>| **Number of** <br>**senior** <br>**positions on** <br>**the Board** <br>**(CEO, CFO, SID** <br>**and Chair)** <sup>2</sup><br>| **Number in** <br>**executive** <br>**management** <sup>3</sup><br>| **Percentage of** <br>**executive** <br>**management**<br>|
| Men | 7 | 70% | 2 <sup>4</sup> | 5 <sup>5</sup> | 100% |
| Women | 3 | 30% <sup>6</sup> |  | 0 <sup>7</sup> | —% |
| Not specified/prefer not to say |  | —% |  |  | —% |
| White British or other White <br>(including minority white groups)<br>| 8 | 80% | 2 | 5 | 100% |
| Mixed multiple ethnic groups |  | —% |  |  | —% |
| Asian/Asian British |  | —% |  |  | —% |
| Black/African Caribbean/Black <br>British<br>| 2 | 20% |  |  | —% |
| Other ethnic group including Arab |  | —% |  |  | —% |
| Not specified/prefer not to say |  | —% |  |  | —% |

---

<sup>1</sup>Information presented in this column reflects only our non-employee directors and does not include our CEO.

<sup>2</sup>The Company is reporting on the positions of CEO, CFO, Chairman of the Board and Lead Director.

<sup>3</sup> Executive management is defined, in accordance with the UKLR, as International Paper's Executive Leadership Team, which includes our

Corporate Secretary.

<sup>4</sup> Andrew K. Silvernail holds the position of CEO and Chair. Christopher M. Connor holds the position of Lead Director, which is the equivalent of

the SID. The position of CFO is not held by a member of the Board.

<sup>5</sup> "Executive management" as used in this table includes our CEO.

<sup>6</sup> As part of its succession planning, the Board actively considers highly qualified women candidates whose skills, experience and perspectives

align with the Company's long-term strategy while advancing progress toward the objectives outlined in UKLR 14.3.31R.

<sup>7</sup> Melissa S. Flores joined the Company as senior vice president, chief human resources officer on January 5, 2026. Following Ms. Flores's

appointment, the number of women serving as members of executive management is 1 or 17%.

**COMMUNITY ENGAGEMENT**

Our community engagement efforts extend across the globe and support social and educational needs through

charitable giving, volunteerism and product donations. We also partner with agencies to help communities prepare

for and recover from natural disasters. In 2025, we invested approximately $16 million to address critical needs in

the communities around the world where we work and live.

I**NTELLECTUAL PROPERTY, PATENTS, AND TRADEMARKS**

We rely on a combination of patent, copyright, trademark, design, trade secret, and internet domain laws to

establish and protect our intellectual property rights in the United States and in foreign jurisdictions. The Company's

practice is to file applications and obtain patents for products and services we believe improve our value proposition

to customers. We maintain a portfolio of trademarks and service marks registered with the U.S. Patent and

Trademark Office and in certain foreign jurisdictions, unregistered trademarks, licenses, and internet domain names

that we consider important to the marketing of our products and business. These trademarks and service marks

include those entity and product names that appear in this Annual Report on Form 10-K and our logo, as well as

names of other products and marketing-related taglines. Our registered intellectual property has various expiration

dates. The Company also relies on trade secret and other confidential information protection for manufacturing

processes, product specifications, formulae, analyses, market information, forecasts, and other competitively

sensitive information.

**<u>[COMPETITION AND COSTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_25)</u>**

The packaging sector is large and fragmented, and the areas into which we sell our principal products are very

competitive. Our products compete with similar products produced by other forest products companies. We also

compete, in some instances, with companies in other industries and against substitutes for wood-fiber products.

Many factors influence the Company's competitive position, including price, cost, product quality and services. You

can find more information about the impact of these factors on operating profits in <u>[Item 7. Management's Discussion](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u> 

<u>[and Analysis of Financial Condition and Results of Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[MARKETING AND DISTRIBUTION](#i5ba32aeab3f947f28a9e9ed735c0c7c4_28)</u>**

The Company sells products directly to end users and converters, as well as through agents, resellers and

distributors.

**<u>[DESCRIPTION OF PRINCIPAL PRODUCTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_31)</u>**

The Company's principal products fall into several categories as described below and also in <u>[Item 7. Management's](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u> 

<u>[Discussion and Analysis of Financial Condition and Results of Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>. We produce renewable fiber-based

packaging solutions, primarily servicing industrial consumer goods and e-commerce markets. The Company

manufactures a broad range of containerboard and corrugated packaging products, which are used to protect, ship

and display goods across diverse end-use categories. Our containerboard portfolio includes linerboard, medium,

whitetop, and saturating kraft, which serve as the base materials for corrugated packaging. The Company converts

containerboard into corrugated boxes, bulk bins, shipping containers and specialty packaging through its network of

U.S. and international converting facilities. These products support customers in industries such as food and

beverage, agriculture, industrial manufacturing, personal care pharmaceuticals and consumer goods.

**<u>[GOVERNMENTAL REGULATION](#i5ba32aeab3f947f28a9e9ed735c0c7c4_34)</u>**

The Company's policy is to operate its mills and plants in compliance with all applicable laws and regulations such

that it protects the environment and the health and safety of its employees. We operate our businesses and sell

products globally. In each of the jurisdictions in which we operate, we are subject to a variety of laws and

regulations governing various aspects of our business, including general business regulations as well as those

governing the manufacturing, production, content, handling, storage, transport, marketing and sale of our products.

Our operations are also subject to forestry reserve requirements, other environmental regulations and occupational

health and safety laws. Violations can result in substantial fines, administrative sanctions, criminal penalties,

revocations of operating permits and/or shutdowns of our facilities, litigation, other liabilities, as well as damage to

our reputation. We incur costs to comply with these requirements. For additional information regarding risks

associated with environmental matters, see <u>[Item 1A. Risk Factors](#i5ba32aeab3f947f28a9e9ed735c0c7c4_52)</u> – ***We are subject to a wide variety of laws,*** 

***regulations and other governmental requirements that may change in significant ways, and the cost of*** 

***compliance, or the failure to comply with such requirements, could impact our business and results of*** 

***operations.*** 

**<u>[ENVIRONMENTAL PROTECTION](#i5ba32aeab3f947f28a9e9ed735c0c7c4_37)</u>**

Our 2030 goals establish the foundation for our efforts to support healthy and abundant forests, strengthen

communities, operate sustainably and advance renewable solutions. Through these efforts and more, the Company

tackles the toughest issues in the value chain to improve its environmental footprint and promote the long-term

sustainability of natural capital.

Our approach to sustainability considers our entire value chain, from sourcing raw materials responsibly and

working safely, to making renewable, recyclable products and providing a market for recovered products. To help

inform and prioritize the focus of our sustainability strategy, we have engaged with internal and external

stakeholders, assessed key issues, associated risks and opportunities, and incorporated sustainability

considerations into our processes.

The Company's operations are subject to extensive and evolving federal, state, local, and international laws and

regulations governing the protection of the environment and became more so in 2025 in light of our increased scale

and global presence. Company manufacturing processes involve discharges to water, air emissions, water intake

and waste handling and disposal activities, all of which are subject to a variety of environmental laws and

regulations, along with requirements of environmental permits or analogous authorizations issued by various

governmental authorities. Our continuing objectives include: (i) controlling emissions and discharges from our

facilities to avoid adverse impacts on the environment, and (ii) maintaining compliance with applicable laws and

regulations.

The Company has been named as a potentially responsible party ("PRP") in environmental remediation actions

under various federal and state laws, including the Comprehensive Environmental Response, Compensation and

Liability Act of 1980, as amended ("CERCLA"). For additional information regarding certain remediation actions, see

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

<u>[Note 14 Commitments and Contingent Liabilities](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u> of <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>. For

additional information regarding risks associated with environmental matters, see <u>[Item 1A. Risk Factors](#i5ba32aeab3f947f28a9e9ed735c0c7c4_52)</u> – ***We are*** 

***subject to a wide variety of laws, regulations and other governmental requirements that may change in*** 

***significant ways, and the cost of compliance with such requirements, or the failure to comply with such*** 

***requirements, could impact our business and results of operations.*** 

**<u>[CLIMATE CHANGE](#i5ba32aeab3f947f28a9e9ed735c0c7c4_40)</u>**

The Company recognizes the impact of climate change on people and our planet. To manage climate-related risks,

we are taking actions throughout our value chain to help advance a low-carbon economy. We aligned our annual

sustainability reporting with the recommendations of the International Financial Reporting Standards S2 Climate-

related Disclosures in the 2024 reporting cycle. As part of our climate reports, we identify and report on climate-

related opportunities. We identify and evaluate physical and transition climate-related risks through our enterprise

risk management process.

The Company's 2024 Climate Report (which, prior to 2024, was referred to as the Company's Task Force on

Climate-related Financial Disclosures Report or "TCFD Report") provides climate related disclosures as of

December 31, 2024, consistent with the four core recommendations and 11 recommended disclosures set out in the

June 2017 Final Report published by the TCFD (the "Final 2017 TCFD Report)". Our 2025 Climate Report, which

will be available later in 2026, will provide climate related disclosures as of December 31, 2025, consistent with the

four core recommendations and 11 recommended disclosures set out in the Final 2017 TCFD Report. For ease of

review and given the detailed and technical content of these disclosures, the Climate Report is considered to be the

most appropriate location for the disclosures. This statement is provided in accordance with UKLR 14.3.24R. Our

corporate sustainability reports, including our 2024 and 2025 Climate Report, are or will be available at

www.internationalpaper.com/reports.

We transform renewable resources into recyclable products that people depend on every day. We aim to produce

low carbon products that have a positive impact on nature. To this end, we source renewable fiber from responsibly

managed forests and recycled raw materials. We then use a circular manufacturing process that makes the most of

resources and byproducts, while reducing the environmental impacts of our operations. At the end of use, the

majority of our low-carbon fiber-based products are recycled into new products at a higher rate than any other base

material. We work to advance the shift to a low-carbon, circular economy by designing products that are 100%

reusable, recyclable or compostable.

Through improvements in operations, equipment, energy efficiency and fuel diversity, we are working to achieve

company-wide reductions in Scope 1 and Scope 2 greenhouse gas ("GHG") emissions. As part of our 2030 goals,

we targeted incremental reductions of 35% in our Scope 1, 2, and 3 GHG emissions by 2030 in comparison to 2019

levels. We intend to continue to evaluate and implement projects as we pursue this 2030 GHG goal. This includes

ongoing energy efficiency efforts and capital projects to phase out our most carbon intensive fuel sources (Scope 1)

as well as developing GHG reduction strategies for our energy sourcing (Scope 2) and broader supply chain

footprint (Scope 3). In addition, we were an early adopter of the Taskforce on Nature-related Financial Disclosures

("TNFD"). We published our first TNFD report in 2025 with 2024 data that aligns with TNFD recommendations,

which have been designed to (i) meet the corporate reporting requirements of organizations across jurisdictions; (ii)

be consistent with the global baseline for corporate sustainability reporting; and (iii) be aligned with the global policy

goals outlined in the Kunming-Montreal Global Biodiversity Framework, which was adopted to halt and reverse

nature loss by 2030.

We use carbon-neutral biomass and manufacturing residuals to generate a majority of the manufacturing energy at

our mills. We believe our efforts to advance sustainable forest management and restore forest landscapes are an

important lever for mitigating climate change through carbon storage in forests.

**INTERNATIONAL EFFORTS**

The 2015 Paris Agreement compels international efforts and voluntary commitments toward reducing the emissions

of GHGs. Although the United States has withdrawn from the 2015 Paris Agreement, IP recognizes the importance

of global policy action to achieve emission reductions consistent with an increase of "well below 2 ° Celsius above

pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 ° Celsius." Consistent

with this objective, participating countries aim to balance GHG emissions generation and sequestration in the

second half of this century or, in effect, achieve net-zero global GHG emissions.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

To assist member countries in meeting GHG reduction obligations, the European Union operates an Emissions

Trading System ("EU ETS"). Our operations in the EU experience indirect impacts of the EU ETS through

purchased power pricing. To date, neither the direct nor indirect impacts of the EU ETS have been material to the

Company. We continue to evaluate potential future impacts in light of (i) our plans to separate our EMEA packaging

business into an independent public company and (ii) ongoing developments in the global climate-policy

frameworks, including the evolution of the 2015 Paris Agreement's non-binding national commitments and

transparency framework. or allocation of, and market prices for, GHG credits. In 2025, many countries failed to

submit updated climate targets, which has contributed to continued uncertainty in the allocation and market pricing

of GHG credits.

Additionally, the EU's Corporate Sustainability Reporting Directive ("CSRD"), Corporate Sustainability Due Diligence

Directive ("CSDDD") and Deforestation Regulation ("EUDR"), each impose additional compliance responsibilities on

the Company. The CSRD requires additional reporting processes for greater accountability. The Company's first

reporting year under the CSRD is expected to be 2028. The CSRD standards replace the existing Non-Financial

Reporting Directive and expand reporting requirements for companies operating in the EU. The implementation

timeline varies depending on the type of entity.

The CSDDD requires reporting and documentation about due diligence systems covering company and supply

chains. The CSDDD became effective in 2024 and EU member states have two years to implement through national

laws and decide on enforcement. The CSDDD implementation and compliance timeline may vary based on details

once finalized by each member state.

The EUDR requires companies trading in products derived from certain commodities to conduct extensive diligence

on the value chain to ensure goods do not result from recent deforestation, forest degradation or breaches of local

environmental and social laws. The Company is evaluating the implications of the EUDR to its business with

expected reporting to begin after December 30, 2026.

However, following the planned separation of our EMEA business into an independent public company, International

Paper will review its obligations to report under these requirements.

**U.S. EFFORTS, INCLUDING STATE, REGIONAL AND LOCAL MEASURES**

Responses to climate change may result in regulatory risks as new laws and regulations aimed at reducing GHG

emissions come into effect. The EPA manages regulations to: (i) control GHGs from mobile sources by adopting

transportation fuel efficiency standards; (ii) control GHG emissions from new Electric Generating Units; (iii) control

emissions from new oil and gas processing operations; and (iv) require reporting of GHGs from sources of GHGs

greater than 25,000 tons per year.

Several U.S. states have enacted or are considering legal measures requiring the reduction and reporting of GHG

emissions by companies and public utilities. While current regulations in these jurisdictions have not had, and are

not expected to have, a material impact on the Company, we continue to monitor developments closely.

In particular, the State of California has enacted two laws that introduce expanded climate-related disclosure

obligations:

• California Climate Corporate Data Accountability Act (SB 253) requires annual public reporting of Scope 1

and Scope 2 GHG emissions, beginning with fiscal-year 2025 data to be disclosed by August 2026.

• California Climate-Related Financial Risk Act (SB 261) mandates disclosure of climate-related reporting

obligations on companies doing business in California meeting specified thresholds, subject to the

resolution of ongoing legal challenges. In 2026, IP voluntarily self-reported under SB 261 using our 2024

Climate Report.

The Company is actively preparing to meet the upcoming requirements of SB 261 and will continue to monitor state-

level climate legislation, evaluate its implications on our operations and update disclosures as laws take effect and

regularity clarity evolves. It is unclear what impacts, if any, future state-level or local GHG rules will have on the

Company's operations, as well as the outcome of any legal challenges to these rules.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**SUMMARY**

Regulation related to GHGs and climate change continues to evolve in the areas of the world in which we do

business. Because it remains unclear what actions regulators may take or when such actions may occur, it is not

reasonably possible at this time to estimate the Company's costs of compliance with rules that have not yet been

adopted or implemented, may never be adopted or implemented or may be subject to legal challenge. In addition to

possible direct impacts, future legislation and regulation could indirectly impact the Company. For example, higher

prices for transportation, energy and other inputs, as well as more protracted air permitting processes, could cause

delays and higher costs to implement capital projects. Other possible indirect impacts include influence on

competitive position due to customer and end-consumer preferences regarding low-carbon, circular products with a

high recycling rate along with tax credit and funding opportunities to expand green energy production and carbon

credit generation. The Company has controls and procedures in place designed to track GHG emissions from our

facilities and stay informed about developments concerning possible climate-related laws, regulations, accords, and

policies where we operate. We regularly assess whether such developments may have a material effect on the

Company, its operations or financial condition, and whether we have any related disclosure obligations under

applicable rules and regulations.

Moreover, compliance with legal requirements related to GHGs and/or climate change currently in effect or enacted

in the future are expected to require future expenditures to meet GHG emission reduction, disclosure or other

obligations. These obligations may include carbon taxes, the requirement to purchase GHG credits or the need to

acquire carbon offsets. We may also incur significant expenditures in relation to our efforts to meet our internal

targets or goals with respect to GHGs and climate change, including our 2030 goal on GHGs as discussed above.

Furthermore, in connection with complying with legal requirements and/or our efforts to meet our internal targets

and goals, we have made and expect to continue to make capital and other investments to displace traditional fossil

fuels, such as fuel oil and coal, with lower carbon alternatives, such as biomass and natural gas. Rather than rely on

carbon offsets, we focus on reducing energy consumption as well as relative GHG emissions across our mills and

manufacturing facilities. Currently, these efforts and obligations have not materially impacted the Company, but such

efforts and obligations may have a material impact on the Company in the future.

We believe sustainability is a key element of corporate governance with oversight of management's initiatives and

efforts provided by our Board of Directors and committees of the Board of Directors.

Our Board of Directors has primary oversight of the Company's enterprise risk management program, which

includes sustainability. The Board receives updates from our Chief Sustainability Officer ("CSO") and additional

members of management. Our Board also conducts periodic reviews of components of the sustainability strategy

and performance and reviews material key sustainability-related developments and issues. Our standing

committees share responsibility for sustainability as described below:

*Audit and Finance Committee*

• Reviews processes and controls for external reporting of sustainability and social impact data and metrics.

• Reviews related disclosures in Annual Report on Form 10-K and other sustainability reports.

*Governance Committee*

• Reviews and reassesses adequacy of, and oversees compliance with, our Corporate Governance

Guidelines.

• Seeks Board of Director candidates with a broad range of skills, experiences and perspectives.

*Public Policy and Environment Committee ("PPE Committee")*

• Reviews sustainability and social impact policies, plans and performance to ensure commitments to

stewardship.

• Stays current on emerging sustainability and social impact trends and issues impacting the Company.

At the management level, ownership and governance of sustainability matters is embedded in the organization from

the top down. Our CEO and ELT are responsible for corporate strategy and leadership including incorporation of our

sustainability goals and standards into our daily operations and long-term business strategy. Our ELT, which is

comprised of two executive vice presidents and three senior vice presidents who report directly to the CEO and

oversee critical functions and business units within the Company, evaluates sustainability issues based on input

from the businesses. The ELT receives several sustainability updates from our CSO.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

For additional information regarding risks associated with climate change and the evolving regulatory landscape,

see <u>[Item 1A. Risk Factors](#i5ba32aeab3f947f28a9e9ed735c0c7c4_52)</u> – ***We are subject to risks associated with climate change and other sustainability*** 

***matters and global, regional and local weather conditions as well as legal, regulatory and market responses*** 

***to climate change; We are subject to a wide variety of laws, regulations and other government requirements*** 

***that may change in significant ways, and the cost of compliance with such requirements, or the failure to*** 

***comply with such requirements, could impact our business and results of operations.***

Additional information regarding climate change and the Company is available in our annual Sustainability Report

and Climate Report, both of which can, or will be, found on our website at www.internationalpaper.com. Our 2025

Sustainability Report and 2025 Climate Report will be available later in 2026. The information contained in such

reports is not incorporated by reference into this Annual Report on Form 10-K and should not be considered part of

this or any other report that we file with or furnish to the SEC. Any targets or goals with respect to sustainability

matters discussed herein or in our sustainability reports as noted above are forward-looking statements and may be

aspirational. These targets or goals are not guarantees of future results and involve assumptions and known and

unknown risks and uncertainties, some of which are beyond our control.

**<u>[RAW MATERIALS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_43)</u>**

Raw materials essential to our businesses include wood fiber, mainly purchased in the form of pulpwood, wood

chips and old corrugated containers ("OCC"), and certain chemicals, including caustic soda, starch and adhesives.

For further information concerning fiber supply purchase agreements, see <u>[Liquidity and Capital Resources](#i5ba32aeab3f947f28a9e9ed735c0c7c4_103)</u> of <u>[Part II,](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u> 

<u>[Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u> .

**<u>[INFORMATION ABOUT OUR EXECUTIVE OFFICERS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_46)</u>**

The following are the executive officers of our Company as of the date of this filing.

**Andrew K. Silvernail,** 55, joined International Paper as chief executive officer on May 1, 2024 and became

chairman of the International Paper Board of Directors on October 1, 2024. Mr. Silvernail has two decades of

experience leading global companies in the manufacturing and technology sectors. He joined IP from KKR & Co.,

Inc., a global investment firm, where he served as an executive advisor, and 5 Nails, LLC, a private investment

advisory firm where he served as founder, chair and chief executive officer (2022-2024). Prior to this role, Mr.

Silvernail served as the chairman and chief executive officer of Madison Industries, one of the world's largest

privately held companies (2021). Prior to that, Silvernail served as chairman and chief executive officer of IDEX

Corporation (NYSE: IEX) (2011-2020). Mr. Silvernail previously held executive positions at Rexnord Industries,

Newell Rubbermaid (NASDAQ: NWL) and Danaher Corporation (NYSE: DHR). He serves on the board of directors

of Stryker Corporation (NYSE: SYK) and Potter Global Technologies, a privately held company specializing in fire

and safety solutions.

**Melissa S. Flores**, 43, senior vice president, chief human resources officer since January 5, 2026. Ms. Flores leads

the human resources function. Ms. Flores previously served as chief human resources officer for IDEX Corporation

(NYSE: IEX) (2021-2025). Prior to that, she served in various other leadership roles at IDEX including Group Vice

President of Talent (2019-2021) and Group Vice President of Human Resources.

**W. Thomas Hamic**, 59, executive vice president and president - Packaging Solutions North America since

September 1, 2024. In this role, Mr. Hamic leads the Container and Containerboard businesses in North America.

Prior to this promotion, Mr. Hamic served as senior vice president - North American Container and chief commercial

officer (January 2023-2024). Mr. Hamic also served as senior vice president - Global Cellulose Fibers and

Enterprise Commercial Excellence (2020-2022) as well as various other leadership roles at the Company since

joining International Paper in 1991.

**Lance T. Loeffler**, 48, senior vice president, chief financial officer of the Company since April 1, 2025. In this role,

he has leadership responsibilities for the Company's global financial strategy and finance functions. Before joining

IP, Mr. Loeffler worked for Halliburton (NYSE: HAL) where he most recently served as senior vice president, Middle

East and North Africa (2022-2024). Prior to this role, Mr. Loeffler held other positions at Halliburton including

executive vice president and chief financial officer (2018-2022).

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**Timothy S. Nicholls**, 64, executive vice president and president – Packaging Solutions EMEA effective April 1,

2025. Prior to this role, he served two separate terms as the Company's chief financial officer – from 2007-2011,

and again from 2018-2025. At completion of the DS Smith business combination, Mr. Nicholls began serving in his

current position leading the EMEA business. Mr. Nicholls previously served in various leadership roles at the

Company since joining International Paper in 1999.

**Joseph R. Saab**, 57, senior vice president, general counsel and corporate secretary since July 2022. In addition to

leading all Legal functions for the Company, Mr. Saab also has responsibility for Corporate Security and served as

the interim senior vice president – Human Resources twice during leadership changes (August 2024-February

2025; June 2025-January 2026). Mr. Saab previously served as vice president, deputy general counsel and

assistant corporate secretary (2019-2022) and in other leadership roles with the Company since joining International

Paper in 2001.

There are no family relationships, as defined by the instructions to this item, among any of the Company's executive

officers and any other executive officers or directors of the Company.

**<u>[FORWARD-LOOKING STATEMENTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_49)</u>**

Certain statements in this Annual Report on Form 10-K that are not historical in nature may be considered "forward-

looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended.

Forward-looking statements can be identified by the use of forward-looking or conditional words such as "expects,"

"anticipates," "believes," "estimates," "could," "should," "can," "forecast," "outlook," "intend," "look," "may," "will,"

"remain," "confident," "commit" and "plan" or similar expressions. These statements are not guarantees of future

performance and reflect management's current views and speak only as to the dates the statements are made and

are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or

implied in these statements. All statements, other than statements of historical fact, are forward-looking statements,

including, but not limited to, statements regarding anticipated financial results, economic conditions, industry trends,

future prospects, and the anticipated benefits, execution and consummation of strategic corporate transactions.

Factors which could cause actual results to differ include but are not limited to: (i) our ability to consummate and

achieve the benefits expected from, and other risks associated with our plans to separate our North America and

Europe, Middle East and Africa ("EMEA") operations into two independent public companies and other acquisitions,

joint ventures, divestitures, spinoffs, capital investments and other corporate transactions on a timely basis or at all

including the risk that an impairment charge may be recorded for goodwill or other intangible assets, which could

lead to decreased assets and reduced net earnings; (ii) our ability to complete regional integration and implement

our plans, forecasts, the internal control framework of DS Smith, including assessment of its internal control over

financial reporting; (iii) risks associated with our strategic business decisions including facility closures, business

exits, operational changes, restructuring initiatives and portfolio rationalizations intended to support the Company's

80/20 approach for long-term growth; (iv) our failure to comply with the obligations associated with being a public

company listed on the New York Stock Exchange and the London Stock Exchange and the costs associated

therewith; (v) risks with respect to climate change and global, regional, and local weather conditions, as well as risks

related to our targets and goals with respect to climate change and the emission of greenhouse gases and other

sustainability matters, including our ability to meet such targets and goals; (vi) loss contingencies and pending,

threatened or future litigation, including with respect to environmental and antitrust related matters; (vii) the level of

our indebtedness, including our obligations related to becoming the guarantor of the DS Smith Euro Medium Term

Notes programme, risks associated with our variable rate debt, and changes in interest rates (including the impact

of currently elevated, but moderating, interest rate levels); (viii) the impact of global and domestic economic

conditions and industry conditions, including with respect to current challenging macroeconomic conditions,

inflationary pressures and changes in the cost or availability of raw materials, energy sources and transportation

sources, supply chain shortages and disruptions, competition we face, cyclicality and changes in consumer

preferences, demand and pricing for our products, and conditions impacting the credit, capital and financial markets;

(ix) risks arising from conducting business internationally, domestic and global geopolitical conditions, military

conflict (including the Russia/Ukraine conflict, the conflict in the Middle East, the further expansion of such conflicts,

and the geopolitical and economic consequences associated therewith as well as broader geopolitical tensions

involving major global actors, including those related to China and Venezuela), changes in currency exchange rates,

including in light of our increased proportion of assets, liabilities and earnings denominated in foreign currencies,

trade policies (including but not limited to protectionist measures and the imposition of new or increased tariffs; the

effects of the U.S. Supreme Court's recent decision striking down certain previously imposed tariffs and creating

uncertainty regarding potential tariff refunds and the future scope of U.S. tariff authority; and the impact of new

executive orders that may restructure or reauthorize tariff measures through alternative legal mechanisms, as well

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

as the potential impact of retaliatory tariffs and other penalties including retaliatory policies against the United

States) and global trade tensions, downgrades in our credit ratings, and/or the credit ratings of banks issuing certain

letters of credit, issued by recognized credit rating organizations; (x) the amount of our future pension funding

obligations, and pension and healthcare costs; (xi) the costs of compliance, or the failure to comply with, existing,

evolving or new environmental (including with respect to climate change and greenhouse gas emissions), tax, trade,

labor and employment, privacy, anti-bribery and anti-corruption, and other U.S. and non-U.S. governmental laws,

regulations and policies (including but not limited to those in the United Kingdom and European Union); (xii) any

material disruption at any of our manufacturing facilities or other adverse impact on our operations due to severe

weather, natural disasters, climate change or other causes; (xiii) cybersecurity and information technology risks,

including as a result of security breaches and cybersecurity incidents; (xiv) our exposure to claims under our

agreements with Sylvamo Corporation; (xv) our ability to attract and retain qualified personnel and maintain good

employee or labor relations; (xvi) our ability to maintain effective internal control over financial reporting; and (xvii)

our ability to adequately secure and protect our intellectual property rights. These and other factors that could cause

or contribute to actual results differing materially from such forward-looking statements can be found in our press

releases and reports filed with the U.S. Securities and Exchange Commission. In addition, other risks and

uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the

accuracy of any forward-looking statements. The Company undertakes no obligation to publicly update any forward-

looking statements, whether as a result of new information, future events or otherwise.

**<u>[ITEM 1A. RISK FACTORS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_52)</u>**

The following is a summary of the material risks and uncertainties that could affect our business, financial condition

and results of operations. You should read this summary together with the more detailed description of each risk

factor contained below.

**Risks Related to Industry Conditions**

• Fluctuations in the prices of and the demand for our products due to factors such as economic cyclicality

and changes in customer or consumer preferences, and government regulations.

• Changes in the cost and availability of raw materials, energy and transportation have recently affected, and

could continue to affect, our profitability.

• Competition and downward pricing pressure in the global packaging industry could negatively impact our

financial results.

**Risks Related to Market and Economic Factors**

• Maintenance of two exchange listings may adversely affect liquidity in the market for our shares of common

stock and result in pricing differentials of shares of common stock between two exchanges.

• Developments in general business and economic conditions could have an adverse effect on the demand

for our products, our financial condition and the results of our operations.

• Changes in international conditions or other risks arising from conducting business internationally could

adversely affect our business and operations.

**Risks Related to our Operations**

• We are subject to a wide variety of laws, regulations and other government requirements that may change

in significant ways, and the cost of compliance with such requirements, or the failure to comply with such

requirements could impact our business and results of operations.

• Material disruptions at one of our manufacturing facilities could negatively impact financial results.

• We operate in a challenging market for talent and may fail to attract and retain qualified personnel, including

key management personnel.

• Our failure to maintain good employee or labor relations may affect our respective operations.

• We may be unable to realize the expected benefits and costs savings associated with restructuring

initiatives, including our 80/20 approach.

• We may not achieve the expected benefits from strategic acquisitions, joint ventures, divestitures, spin-offs,

capital investments, capital projects and other corporate transactions that are or will be pursued.

• We are subject to cybersecurity and information technology risks related to breaches of security pertaining

to sensitive company, customer, employee and vendor information as well as breaches in the technology

used to manage operations and other business processes.

• Our continued growth will depend on our ability to retain existing customers and attract new customers.

• Uninsured losses or losses in excess of our insurance coverage for various risks could have an adverse

financial effect on our business.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

• We may not be able to adequately secure and protect our intellectual property rights, which could harm our

competitive advantage.

• We may fail to identify or leverage digital transformation initiatives.

**Risks Related to the Separation**

• The proposed separation of our EMEA packaging business may not be completed, on the currently

contemplated timeline or at all.

**Risks Related to our Indebtedness**

• Changes in credit ratings issued by nationally recognized statistical rating organizations could adversely

affect our cost of financing and have an adverse effect on the market price of our securities.

• The level of our indebtedness could adversely affect our financial condition and impair our ability to operate

our business.

• We are subject to risks associated with variable rate debt.

• Downgrades in the credit ratings of banks issuing certain letters of credit will increase our cost of

maintaining certain indebtedness and may result in the acceleration of deferred taxes.

**Risks Related to Legal Proceedings and Compliance Costs**

• Results of legal proceedings could have a material effect on our consolidated financial results.

• We could be exposed to liability for Brazilian taxes under our agreements with Sylvamo Corporation.

• Failure to remediate a material weakness in DS Smith's internal control over financial reporting could

adversely affect our business and results of operations.

**Risks Related to Climate and Weather and Social and Environmental Impact Reporting**

• We are subject to risks associated with climate change and other sustainability matters and global, regional

and local weather conditions as well as by legal, regulatory, and market responses to climate change.

**Risks Related to our Pension and Healthcare Costs**

• Our pension and health care costs are subject to numerous factors which could cause these costs to

change.

• Our pension plans are currently fully funded on a projected benefit obligation basis; however, the possibility

exists that over time we may be required to make cash payments to the plan, reducing the cash available

for our business.

The Company faces a variety of risks, including risks in the normal course of business and through global, regional,

and local events that could have an adverse impact on its reputation, operations, and financial performance.

The following are material risk factors of which we are aware, including risk factors that could cause the Company's

actual results to differ materially from those contemplated in any forward-looking statement. If any of the events or

circumstances described in any of the following risk factors occurs, our business, results of operations and/or

financial condition could be materially and adversely affected, and our actual results may differ materially from those

contemplated in any forward-looking statements we make in any public disclosures. Additional factors that could

affect our business, results of operations and/or financial condition are discussed elsewhere in this Annual Report

on Form 10-K (including in <u>[Item 7. Management's Discussion and Analysis of Financial Condition and Results of](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u> 

<u>[Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>) and in the Company's other filings with the U.S. Securities and Exchange Commission.

**RISKS RELATED TO INDUSTRY CONDITIONS** 

***Fluctuations in the prices of and the demand for our products due to factors such as economic cyclicality*** 

***and changes in customer or consumer preferences, and government regulation could materially affect our*** 

***financial condition, results of operations and cash flows.*** 

Substantially all of our business has experienced, and is expected to continue to experience, cycles relating to

industry capacity, customer demand, and general economic conditions. The length and magnitude of these cycles

have varied over time and by product. Product prices and sales volumes have fallen in the past, and there can be

no assurance that this will not recur. New or existing producers of paper and sustainable packaging products may

add or adjust capacity affecting available supply. Further, changes in customer or consumer preferences may

increase or decrease the demand for fiber-based products and non-fiber substitutes. Customer and consumer

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

preferences change based on, among other factors, cost, convenience, health concerns and perceptions and an

increased awareness of sustainability considerations. In some areas, customers have increasingly shown interest in

environmentally friendly products such as fiber-based packaging. Advances in non-fiber technologies such as

plastic packaging or other materials could result in decreased demand for our products. In addition, legal

developments, such as new governmental regulations on single-use packaging products could significantly alter the

market for our products. Any of the foregoing, including a failure to anticipate and respond to changing trends,

customer preferences and technological and regulatory developments, could have a material adverse effect on our

business, financial condition, results of operations and/or future prospects. A lack of investor confidence in the paper

and packaging industry could also have a negative impact on our business, financial condition, results of operations

and/or future prospects.

***Changes in the cost and availability of raw materials, energy and transportation have recently affected, and*** 

***could continue to affect, our profitability.*** 

We rely heavily on the use of certain raw materials (principally virgin wood fiber, recycled fiber, caustic soda, starch

and adhesives), energy sources (principally biomass, natural gas, electricity and fuel oil) and third-party transport

companies. The market price of virgin wood fiber varies based on availability, demand, quality, and source. The

global supply and demand for recycled fiber may be affected by factors such as trade policies between countries,

individual governments' legislation and regulations, and general macroeconomic conditions. In addition, the

increase in demand of products manufactured, in whole or in part, from recycled fiber, on a global basis, may cause

significant fluctuations in recycled fiber prices. Taking into account ongoing inflationary conditions in domestic and

global markets, we have experienced, and may continue to experience, a significant increase in various costs,

including recycled fiber, energy, freight, chemical, and other supply chain costs, which has adversely affected, and

may continue to adversely affect, our operations. Moreover, the availability of labor and the market price for fuel

may affect third-party transportation costs.

In addition, because our business operates in highly competitive industry segments, we have not always been able

to, and may in the future be unable to, recoup past or future increases in the costs of any raw materials, energy

sources or transportation sources from customers, which significantly affect profitability. In addition, where we are

able to recoup our cost increases, there may be a delay between the onset of the cost increases and the

recoupment. Any inability to recover input cost increases could lead to a material adverse effect on our business,

financial condition, results of operations and/or future prospects.

We have significant exposure to energy costs, in particular gas, electricity and other fuel costs. Energy prices have

fluctuated dramatically in the past and may continue to increase and/or fluctuate in the future. Transportation costs

are also impacted by energy costs since a key component of transportation costs relates to the cost of oil. We have

employed and expect to continue to employ, strategies, including hedging a portion of our energy costs, and risk

mitigation tools to reduce the volatility of energy costs and ensure a degree of certainty over future energy costs.

However, there can be no certainty that those strategies and tools will continue to manage such impact in the future.

Volatile and increasing energy prices, including as a consequence of the conflict between Russia and Ukraine as

well as heightened geopolitical tensions in regions such as the Middle East, China, and recent events in Venezuela,

or a failure to effectively implement such strategies and tools could have a material adverse effect on our business,

financial condition, results of operations and/or future prospects.

***Competition and downward pricing pressure in the global packaging industry could negatively impact our*** 

***financial results.***

We operate in a competitive international environment. Our products compete with other forest products and

packaging companies in the markets where we operate.

Product innovations, manufacturing and operating efficiencies, additional manufacturing capacity, distribution and

commercial strategies pursued or achieved by competitors, and the entry of new competitors, could negatively

impact our financial results. In addition, our products compete with companies that produce substitutes for wood-

fiber products, such as plastics and various types of metal. Customer shifts away from wood-fiber products toward

such substitute products may adversely affect our business and financial results. Further, we depend on critical

suppliers and key customers. An inability to foster these relationships and to manage any material changes in

commercial terms and service levels could have a material adverse impact on our business, financial condition,

results of operations and/or future prospects.

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Pricing in the paper and packaging industries can be affected by, among other things, product commoditization,

changes in demand, entrance or withdrawal of new competitors or capacity, changes in product supply, and the

introduction of new products, technologies and equipment, including the use of artificial intelligence ("AI") and

machine learning solutions. We face significant pressure to reduce per unit costs to achieve commercially

acceptable returns. In circumstances where we are unable to adjust the relevant cost base sufficiently, pricing

pressure could have a material adverse effect on our business, financial condition, results of operations and/or

future prospects.

**RISKS RELATED TO MARKET AND ECONOMIC FACTORS**

***Our maintenance of two exchange listings may adversely affect liquidity in the market for our shares of*** 

***common stock and result in pricing differentials of shares of common stock between the two exchanges.*** 

Trading in shares of common stock on the London Stock Exchange ("LSE") and the NYSE takes place in different

currencies (pound sterling on the LSE and U.S. dollars on the NYSE) and at different times (resulting from different

time zones, different trading hours and different trading days for the LSE and the NYSE). The trading prices of

shares of common stock on these two exchanges may at times differ due to these and other factors. Any decrease

in the price of shares of common stock on the NYSE could cause a decrease in the trading price of shares of

common stock on the LSE and vice versa.

The benefits we expect of the dual listing on the NYSE and the LSE, which are increased liquidity, visibility among

investors and access to investors who may be able to hold listed shares in the United Kingdom, but not the United

States, and vice versa, may not be realized or, if realized, may not be sustained, and the costs and additional

regulatory burdens associated with a dual listing may ultimately outweigh the associated benefits.

***We are affected by developments in general business and economic conditions, which could have an***

***adverse effect on the demand for our products, our financial condition and the results of our operations***

***including our ability to pay a cash dividend.***

General economic conditions may adversely affect industrial non-durable goods production, consumer confidence

and spending, and employment levels, all which impact demand for our products, or otherwise adversely affect our

business. We may also be adversely affected by catastrophic or other unforeseen events, natural disasters,

geopolitical events, military conflicts, terrorism, port and canal blockages and similar disruptions, political, financial

or social instability, or civil or social unrest. Future health epidemics or pandemics could also adversely impact

portions of our business to varying degrees, including as the result of change in demand for certain products, supply

chain and labor disruptions, and higher costs. These effects could have a material impact on our business, results of

operations, cash flow, liquidity, or financial condition. Moreover, negative economic conditions or other adverse

developments with respect to our business have resulted in and may in the future result in impairment charges,

including impairments related to divested or acquired businesses whose carrying values may not be recoverable,

any of which could be material. Volatility or uncertainty in the financial, capital and credit markets, and negative

developments associated with interest rates, asset values, currency exchange rates and the availability of credit,

could also have a material adverse effect on our business, financial condition and results of operations and could

adversely affect our liquidity, access to capital markets and ability to pay a dividend.

Macroeconomic conditions in the U.S., Europe and globally remain challenging and volatile. Recent periods have

been characterized not only by persistent inflationary pressures, elevated interest rates, challenging labor market

conditions, tariff policies and heightened trade policy uncertainty but also by slowing global economic growth,

weakening global trade and investment flows, supply chain realignments, currency volatility, shifting fiscal and

monetary policies across major economies and adverse effects and uncertainty associated with current geopolitical

conditions. Our operations have been adversely affected and could continue to be adversely affected in the future,

by these challenging macroeconomic and geopolitical conditions, including as the result of lower demand for certain

products, and higher raw material and labor costs. Further, because the markets for packaging products in many

industrialized countries are generally mature, there is a significant degree of correlation between economic growth

and demand for packaging products. Therefore, any deterioration in macroeconomic conditions in the U.S., Europe

and/or globally resulting in a slowdown in economic growth may correlate with a corresponding decline in demand

for packaging products in those markets. Moreover, any significant deterioration in current negative macroeconomic

conditions, or any recovery therefrom that is significantly slower than anticipated, could have a material adverse

effect on our business, results of operations or financial condition. In addition, there can be no assurance that

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dividends will continue to be declared or paid at historical levels, and any reduction or suspension of dividends

could negatively impact our stock price. Further, if negative macroeconomic conditions result in significant

disruptions to capital and financial markets, the cost of borrowing, our ability to access capital on favorable terms,

and our overall liquidity could be adversely affected.

***Changes in international conditions or other risks arising from conducting business internationally could*** 

***adversely affect our business and operations.*** 

As a global producer of renewable fiber-based packaging products, we operate in many different countries. As a

result, we are vulnerable to risks related to our international operations. These risks, which can vary substantially by

country, may include economic or political instability, geopolitical events, corruption, anti-American sentiment,

expropriation measures, social and ethnic unrest, natural disasters, military conflicts and terrorism, the regulatory

environment (including the risks of operating in developing or emerging markets in which there are significant

uncertainties regarding the interpretation and enforceability of legal requirements and the enforceability of

contractual rights and intellectual property rights), adverse currency fluctuations, foreign exchange control regimes

(including restrictions on currency conversion), downturns or changes in economic conditions (including in relation

to commodity inflation), adverse tax consequences or rulings, import restrictions, controls or other trade protection

measures, economic sanctions, health guidelines and safety protocols, nationalization, changes in social, political or

labor conditions, and adverse developments regarding sustainability, environmental regulations and trade policies

and agreements, any of which risks could negatively affect our financial results. For example, a portion of our sales

could be adversely affected by changes in economic conditions and demographics, including as a result of tariffs.

Trade protection measures in favor of local producers of competing products, including governmental subsidies,

tariffs, tax benefits and other measures may give local producers a competitive advantage and adversely impact our

operating results and our business prospects in these countries. Likewise, disruption in existing trade agreements or

increased trade friction between countries (such as in relation to the trade tensions between the U.S. and China),

could have a negative effect on our business and results of operations by restricting the free flow of goods and

services across borders. Additionally, the U.S. government in 2025 increased certain rates and broadened the

scope of certain tariffs imposed on goods imported into the U.S., such as from China, which may strain international

trade relations and increase the risk that foreign governments implement retaliatory tariffs on goods imported from

the United States. Specifically, the U.S. federal government implemented tariffs on certain foreign goods and may

implement additional tariffs on foreign goods. If lasting, such tariffs and any further legislation or actions taken by the

U.S. federal government that restrict trade, such as additional tariffs, trade barriers, and other protectionist or

retaliatory measures taken by governments in Europe, Asia, and other countries, could adversely impact our ability

to sell products and services in our international markets. Tariffs have increased the cost of certain capital items,

including materials and equipment used in our capital investments. These increased costs could adversely impact

the profit margin that we earn on our products, which could make our products less competitive and reduce

consumer demand. Countries may also adopt other protectionist measures that could limit our ability to offer our

products and services. Conversely, these tariffs and retaliatory tariffs may be subject to further changes or

negotiations which could lower or remove them in the near or longer term with a return to more normalized trade

conditions in some instances. Due to this uncertainty, the ultimate impact of any tariffs and trade tension is unclear

and will depend on various factors, including if there are negotiated bilateral agreements to remove or lower tariffs,

and the timing, amount, scope and nature of the tariffs that remain implemented.

Recent legal and policy developments have further increased uncertainty. On February 20, 2026, the U.S. Supreme

Court struck down several of the sweeping tariffs imposed through a series of executive orders, holding that the

tariffs exceeded the authority granted under the International Emergency Economic Powers Act. The Court's ruling

eliminated key tariffs on imports from numerous major trading partners and created uncertainty regarding the status

of various trade agreements and tariff related obligations. The Court did not determine whether importers are owed

refunds for tariffs previously paid, although estimates suggest that potential refunds could be substantial, and

federal agencies must now determine how to administer the ruling. In response to the Supreme Court's decision,

the government announced new Executive Orders on February 20, 2026, aimed at restructuring U.S. tariff policy

and exploring alternative statutory authorities to impose or maintain tariffs. The scope, timing, and implementation of

these Executive Orders remains uncertain, and may result in new or modified tariff regimes, additional regulatory

requirements, or further trade friction with U.S. trading partners. We may become entitled to refunds of certain tariffs

previously paid; however, whether any refund will be available, and the amount and timing of any such refund,

remain uncertain and subject to ongoing administrative processes and additional federal guidance. We are

continuing to evaluate the impact of both the Supreme Court's ruling and the new Executive Orders on our supply

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chain, input costs, pricing, capital investments, and overall operating results, and the ultimate impact, if any, on our

business is not yet known.

We may continue to be adversely affected by ongoing geopolitical instability and the economic consequences and

disruptions arising therefrom, including as the result of the military conflict between Russia and Ukraine, the conflict

in the Middle East, and increasing tensions between China and Taiwan. These risks may be further heightened in

the event of the expansion in the scope or escalation of any such conflicts. In addition, changes to economic

sanctions programs, could put us at risk of violating sanctions because of an existing presence in a newly

sanctioned jurisdiction or relationship with a newly sanctioned entity if we fail or are unable to end such presence or

relationship in a timely manner.

In addition, our international operations are subject to laws related to operations in foreign jurisdictions, including

laws prohibiting bribery of government officials and other corrupt practices. Anti-bribery laws such as the U.K.

Bribery Act 2010, the Foreign Corrupt Practices Act of 1977, and similar worldwide anti-corruption laws generally

prohibit companies and their intermediaries from making improper payments to public officials for the purpose of

obtaining or retaining business. Further, the U.S. Department of the Treasury's Office of Foreign Assets Control and

other non-U.S. government entities maintain economic sanctions targeting various countries, persons and entities.

We are also subject to the laws and regulations of governmental and regulatory agencies. Failure to comply with

domestic or foreign laws could result in various adverse consequences for us including the imposition of civil or

criminal sanctions, reputational damage and the prosecution of executives overseeing international operations.

We are exposed to the translation of the results of overseas subsidiaries into their respective reporting currencies,

as well as the impact of currency fluctuations on their commercial transactions denominated in foreign currencies.

Adverse movements in foreign exchange rates relating to foreign currency denominated commodities, assets and

liabilities, and transactions could have a material impact on our business, financial condition, results of operations

and/or future prospects.

**RISKS RELATED TO OUR OPERATIONS** 

***We are subject to a wide variety of laws, regulations and other government requirements that may change*** 

***in significant ways, and the cost of compliance with such requirements, or the failure to comply with such*** 

***requirements, could impact our business and results of operations.*** 

As a publicly listed company, we are subject to the reporting requirements of the Exchange Act and the Sarbanes-

Oxley Act of 2002 (the "Sarbanes-Oxley Act"), and the listing requirements of the NYSE. By virtue of our secondary

listing on the LSE, we are also subject to the listing requirements of the LSE, the Market Abuse Regulation and

Disclosure Guidance and Transparency Rules. The Exchange Act requires that we file annual and other reports with

respect to our business, financial condition and results of operations. The Sarbanes-Oxley Act requires, among

other things, that we establish and maintain effective internal controls and procedures for financial reporting. Any

failure to maintain effective controls or any difficulties encountered implementing required new or improved controls

could cause us to fail to meet our reporting obligations, which could have a material adverse effect on our business

and the trading price of our common stock.

Our operations are subject to regulation under a wide variety of domestic and international laws, regulations and

other government requirements, including, among others, those relating to the environment, health and safety, labor

and employment, data privacy, tax, trade, competition and corruption and health care. There can be no assurance

that laws, regulations and government requirements will not be changed, applied or interpreted in ways that will

require us to modify our respective operations and objectives or affect our respective returns on investments by

restricting existing activities and products or increasing costs. In addition, any failure or alleged failure to comply

with applicable laws, regulations or other government requirements could have an adverse effect on our reputation

and financial results or may result in, among other things, litigation, revocation of required licenses, internal

investigations, governmental investigations or proceedings, administrative enforcement actions, fines and civil and

criminal liability.

We are subject to increasingly stringent federal, state, local and international laws governing the protection of the

environment that continue to evolve as new guidance is provided by regulatory and governing bodies and as

pending or future litigation is resolved. The changing laws, regulations and standards relating to corporate

governance, sustainability matters and public disclosures in various jurisdictions create uncertainty for public

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companies, increase legal and compliance costs and make activities more time consuming. We have incurred, and,

following completion of our planned separation of the EMEA packaging business, expect to continue to incur and

invest resources, significant capital, operating and other expenditures complying with applicable and forthcoming

environmental laws and regulations, including with respect to GHG emissions and other climate-related matters.

These investments may lead to higher operating expenses as the cost of compliance increases. Our environmental

expenditures include, among other areas, those related to air and water quality, waste disposal and the cleanup of

soil and groundwater, including situations where we have been identified as a potentially responsible party.

Following the separation of our EMEA packaging business, we will evaluate our exposure to international climate

regulations.

There can be no assurance that future remediation requirements and compliance with existing and new laws and

requirements will not require significant expenditures, or that existing reserves for specific matters will be adequate

to cover future costs. We could also incur substantial fines or sanctions, enforcement actions (including orders

limiting operations or requiring corrective measures), natural resource damages claims, cleanup and closure costs,

third-party claims for property damage and personal injury and reputational harm as a result of violations of, or

liabilities under, environmental laws, regulations, codes and common law. The amount and timing of environmental

expenditures is difficult to predict, and, in some cases, liability may be imposed without regard to contribution or to

whether we knew of, or caused, the release of hazardous substances. Additionally, if our compliance efforts with

new applicable laws, regulations, and standards do not align with the expectations of regulatory or governing bodies

due to ambiguities in their application and implementation, or if they differ from interpretations arising from related

litigation, we may face legal actions. This could negatively impact our business, financial condition, operational

results, and cash flow.

Our global operations are subject to complex and evolving domestic and international data privacy laws and

regulations, such as the European Union's General Data Protection Regulation, the UK's General Data Protection

Regulation, any supplemental applicable European Union member state or UK national data protection laws,

China's Personal Information Protection Law and comprehensive privacy laws in many U.S. states. These laws

impose a range of compliance obligations regarding the handling of personal data. There are significant penalties

for non-compliance, including monetary fines, disruption of operations and reputational harm. Moreover, other states

and governmental authorities around the world have introduced or passed, or are considering, similar legislation

which may impose varying standards and requirements on data collection, use and processing activities.

This increasingly restrictive and evolving global regulatory environment related to data privacy and data protection

may continue to require changes to our business practices, and give rise to significantly expanded compliance

burdens, costs and enforcement risks. Moreover, many of these laws and regulations are subject to uncertain

application, interpretation or enforcement standards that could result in claims, changes to business practices, data

processing and security systems, penalties, increased operating costs or other impacts on our business.

Additionally, regulatory bodies and others tasked with enforcing privacy and data protection laws have been actively

engaging in enforcement investigations and actions. These laws often provide for civil penalties for violations, as

well as private rights of action for data breaches that may increase data breach litigation. We use internal and

external resources to monitor compliance with relevant legislation and continually evaluate and, where necessary,

modify data processing practices and policies to comply with evolving privacy laws. Nevertheless, relevant

regulatory authorities could determine that our data handling practices fail to address all the requirements of certain

new laws, which could subject us to penalties and/or litigation. In addition, there is no assurance that our security

controls over personal data, the training of employees and vendors on data privacy and data security, and policies,

procedures and practices will prevent the improper handling of, disclosure of or access to personal data. Any such

unauthorized access, use or disclosure in violation of applicable privacy and data protection laws could cause

reputational harm and loss of consumer confidence and subject us to government enforcement actions (including

fines), or result in private litigation, which could result in loss of revenue, increased costs, liability for monetary

damages, fines and/or criminal prosecution, all of which could negatively affect our business and operating results.

We are also exposed to the risk of changes in tax law and tax rates in a number of jurisdictions. The costs

associated with these laws and regulations are substantial and possible future laws and regulations or changes to

existing laws and regulations (including the imposition of higher taxes) could require us to incur additional expenses

or capital expenditures or result in restrictions on or suspensions of operations. For example, the Organization for

Economic Cooperation and Development (the "OECD") has issued a framework pursuant to which EU and non-EU

countries (including countries in which we operate) have enacted a 15% global minimum tax applied on a country-

by-country basis (the "Pillar Two rule"). In many of the countries implementing the Pillar Two rule, the first

component of the Pillar Two rule became effective in 2024 and the second component in 2025. In January 2026, the

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OECD/G20 issued administrative guidance modifying application of the Pillar Two rule through a Side-by-Side

system introducing two new Pillar Two safe harbors for US-parented multinational corporations, effective beginning

in 2026. The application of these safe harbors by each country that has implemented Pillar Two now depends on the

respective countries' enacting the Side-by-Side system. It is possible that the Pillar Two rule could adversely impact

our effective tax rate in future periods. Additionally, administrative guidance with respect to tax law can be

incomplete or vary from legislative intent, and therefore the application of the tax law is uncertain. While we believe

our reported positions comply with relevant tax laws and regulations, taxing authorities could interpret the

application of certain laws and regulations differently. We have been and continue to be subject to tax audits in

various taxing jurisdictions around the world. In some cases, we have appealed, and may continue to appeal,

assessments by taxing authorities, including in the court system. As such, tax controversy matters may result in

previously unrecorded tax expenses, accelerated cash tax payments, higher future tax expenses, or the

assessment of interest and penalties.

AI continues to evolve rapidly, and, as with many technological innovations, it presents risks and challenges that

could affect its adoption and our business. Uncertainty in the global and legal regulatory regime relating to AI may

require significant resources to modify and maintain business practices to comply with international laws, the nature

of which cannot be determined at this time. Multiple jurisdictions, including Europe, the U.S. federal government,

and certain U.S. states, have already proposed or enacted laws, regulations, and other requirements governing AI.

In Europe, the EU AI Act, adopted in May 2024, entered its implementation phase in 2025 and imposes extensive

transparency, risk management and data governance obligations for AI systems, particularly those classified as high

risk, with significant fines for noncompliance. Additional implementing measures are expected. In the United States,

2025 marked a shift in federal AI policy with the government establishing a national AI policy framework aimed at

asserting federal preemption over divergent state AI laws. States continue to adopt AI statutes creating varied

compliance regimes addressing accountability, automated decision-making, transparency, worker protections and

privacy. Changes in regulatory regimes, or the adoption of new or more restrictive requirements, could make it more

difficult to use AI tools, require us to change our business practices, or limit AI usage which may lead to

inefficiencies or competitive disadvantages.

***Material disruptions at one of our manufacturing facilities could negatively impact financial results.***

We operate facilities in compliance with applicable rules and regulations and take measures to minimize the risks of

disruption. A material disruption at our corporate headquarters, a manufacturing facility or key mill could prevent us

from meeting customer demand, reduce sales and/or negatively impact our financial condition. Any of our

manufacturing facilities or any machines within an otherwise operational facility, could cease operations

unexpectedly due to a number of events, including:

• adverse weather events like fires, floods, earthquakes, hurricanes, winter storms and extreme

temperatures, or other catastrophes (including adverse weather conditions that may be intensified by

climate change);

• the effect of a drought or reduced rainfall on its water supply;

• disruption in the supply of raw materials or other manufacturing inputs;

• terrorism or threats of terrorism, security incidents or other threats to employee safety;

• information system disruptions or failures due to any number of causes, including cyber-attacks;

• domestic and international laws and regulations applicable to us and any of our respective business

partners, including joint venture partners, around the world;

• unscheduled maintenance outages;

• prolonged power failures;

• an equipment failure;

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• a chemical spill or release;

• explosion of a boiler or other equipment;

• damage or disruptions caused by third parties operating on or adjacent to a manufacturing facility;

• disruptions in the transportation infrastructure, including roads, bridges, railroad tracks and tunnels;

• a widespread outbreak of an illness or any other communicable disease, or any other public health crisis or

any impacts related to government regulation as a result thereof;

• failure of third-party service providers and business partners to satisfactorily fulfill their commitments and

responsibilities in a timely manner and in accordance with agreed upon terms;

• labor difficulties; and

• other operational problems.

Any such downtime or facility damage could prevent us from meeting production targets, customer demand and

satisfying customer requirements, which may necessitate unplanned expenditures, resulting in lower sales and have

a negative effect on our financial results.

***We operate in a challenging market for talent and may fail to attract and retain qualified personnel,*** 

***including key management personnel.*** 

Our ability to operate and grow our business depends on our ability to attract and retain employees with the skills

necessary to operate and maintain our facilities, produce our products and serve our customers. The market for

both hourly workers and salaried workers continues to be competitive, particularly for employees with specialized

technical and trade experience. This, along with the current competitive labor market and ongoing cost-pressured

conditions, has led to higher labor costs. In addition, we rely on our key executive and management personnel to

manage our business efficiently and effectively. The unanticipated departure of key executive and management

employees, particularly in a challenging market for attracting and retaining employees, could adversely affect our

business. Moreover, changing demographics and labor work-force trends, including evolving expectations around

remote and hybrid work, work-life balance expectations and increased return-to-office requirements, may make it

difficult for us to attract, retain or replace retiring or departing employees. The failure to retain and/or recruit

additional or substitute senior managers and/or other key employees and a failure to identify and resource for future

capability requirements such that there is a gap in skills and knowledge across key business areas, or if higher labor

costs and shortages persist, could have a material adverse effect on our business, financial condition, results of

operations and/or future prospects.

***Our failure to maintain good employee or labor relations may affect our respective operations.*** 

Future developments in relation to our business could adversely affect employee or labor relations. Good employee

and labor relations depend on the ability to drive innovation, manage change and engage the workforce, and failure

to do so could have a material adverse effect on our business, financial condition, results of operations and/or future

prospects. Further, labor disputes or other problems could lead to a substantial interruption to our business and

have a material adverse effect on our business, financial condition, results of operations and/or future prospects.

A significant number of our employees located outside of the U.S. are represented by unions, trade unions and

national works councils. We have collective bargaining agreements in place with U.S. and international trade

unions. In the U.S., we may not be able to successfully negotiate new collective bargaining agreements once our

current contracts with unions expire without work stoppages or labor difficulties, or we may be unable to renegotiate

such contracts on favorable terms. The mill master collective bargaining agreement and related mill joint pension

council master agreement with the United Steelworkers union (the "USW") will expire in August 2027 and

September 2027, respectively. The converting master collective bargaining agreements and related converting joint

pension council master agreement which will expire in April and September 2028, respectively. The USW represents

approximately 8,622 employees in our mills and converting facilities. In Europe, we have collective agreements in

place with trade unions, and also have agreements in place with the European Works Council, which brings

together employee representatives from the different European countries in which we operate and provides a forum

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for information sharing and consultation. We have experienced limited work stoppages in the past and may

experience work stoppages in the future. Further, labor organizations may attempt to organize groups of additional

employees from time to time, and recent and potential changes in labor laws could make it easier for them to do so.

If there is a substantial change to the terms of any collective bargaining agreements or an agreement acceptable to

us cannot be reached at all when the collective agreements are renewed, we could face increased labor costs or

disruptions as a result of labor union activity in the future. If we experience any extended interruption of operations

at any of the relevant facilities as a result of strikes or other work stoppages, or if unions, trade unions and national

works councils are able to organize additional groups of our employees, our operating costs could increase and our

operational flexibility could be reduced.

***We may be unable to realize the expected benefits and cost savings associated with restructuring*** 

***initiatives, including our 80/20 approach.*** 

We have restructured portions of our operations from time to time and have current restructuring initiatives taking

place and planned for North America and EMEA. In 2025, we agreed to sell our Global Cellulose Fibers business,

which we completed in January 2026, and exited the converting bag business. In North America, we actioned

closure of three mills, two recycling facilities, and six box plants, as well as one sheet plant, one sheet feeder, one

molded fiber facility and one box-to-sheet-feeder conversion. In EMEA, we actioned closures of 17 packaging

plants, one mill and one recycling center. Together these actions reduced the workforce by approximately 1,400. On

January 29, 2026, we announced plans to separate our EMEA packaging business into an independent public

company. Through the 80/20 approach, we intend to deliver profitable market share growth by striving to be the

lowest-cost producer, and the most reliable and innovative sustainable packaging solutions provider to our

customers across North America and EMEA. As part of our 80/20 approach, we intend to guide investments and

align resources to win with customers, while reducing complexity and cost across the Company. To that end, we

have been implementing restructuring initiatives. To that end, we have incurred, and expect to incur, charges in

connection with our restructuring initiatives.

We may be unable to realize the expected benefits from these and other restructuring initiatives that we may in the

future undertake. In particular, restructuring activities may divert the attention of management, disrupt operations

and fail to achieve the intended cost and operational benefits. If the Company is unable to realize the expected

benefits from its restructuring initiatives, the Company's financial results could be adversely impacted. In addition,

because we are unable to predict or control market conditions, including changes in the supply and demand for our

products, product prices or manufacturing costs, we may not be able to predict the appropriate time to undertake

restructurings. Further, cash and non-cash charges may be incurred in connection with restructuring activities,

which may be material. Moreover, judgment is required to estimate restructuring charges, and these estimates, and

the assumptions underlying them, may change as additional information becomes available or facts or

circumstances related to restructuring initiatives change.

***We may not achieve the expected benefits from strategic acquisitions, joint ventures, divestitures, spin-***

***offs, capital investments, capital projects and other corporate transactions that are or will be pursued.*** 

Our strategy for long-term growth, productivity and profitability depends, in part, on our ability to accomplish prudent

acquisitions, joint ventures, divestitures, spin-offs, and other strategic corporate transactions and to realize the

benefits expected from such transactions, including the planned separation of our EMEA packaging business.

Ongoing capital investment is also required to expand, maintain and upgrade existing facilities, to develop new

facilities and to ensure compliance with new regulatory requirements. As part of our 80/20 approach, our capital

spending has increased. Capital projects may experience unanticipated disruptions or delays and the desired

benefits from those projects may not be realized. These risks include a deterioration in macroeconomic conditions,

shortages or higher costs of capital equipment or materials, delays in obtaining permits or other required approvals,

changes in laws and regulations or operational challenges. Our ability to advance capital investments depends on

the availability of cash flow. If our cash flow decreases due to market conditions, increased operating costs,

tightening credit markets, or other factors, we may be required to defer, scale back or cancel planned capital

projects. Such delays or reductions could limit our ability to pursue our strategic priorities, maintain or improve

operational efficiency or respond effectively to competitive or regulatory pressures. We are subject to the risk that

the expected benefits from such transactions and capital investments may not be achieved. This failure could

require an impairment charge to be recorded for goodwill or other intangible assets, which could lead to decreased

assets and reduced net earnings. Among the benefits expected from the strategic separation of our EMEA

packaging business, as well as completed acquisitions and joint ventures are synergies, cost savings, growth

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opportunities and access to new markets (or a combination thereof), and in the case of divestitures, the realization

of proceeds from the sale of businesses and assets to purchasers who place a higher strategic value on such

businesses and assets.

Corporate transactions of this nature that we may pursue involve a number of special risks, including with respect to

the inability to realize business goals with such transactions as noted above, including our assumptions, the focus of

management's attention on these transactions, the assimilation or separation of businesses, the demands on

financial, operational and information technology systems, our ability to integrate and separate personnel, labor

models, financials, customer relationships, supply chain and logistics, IT and other systems successfully, business

culture compatibility, the possibility of becoming responsible for substantial contingent or unanticipated legal

liabilities as the result of corporate transactions, and changes in our geographic footprint and in the complexity of

our operations.

Moreover, effective internal controls are necessary to provide reliable and accurate financial reports, and the

planned separation of our North America and EMEA businesses may create complexity in our financial systems and

internal controls and make them more difficult to manage. Further regional integration of businesses into our internal

control system could cause us to fail to meet our financial reporting obligations. Moreover, any failure to integrate

the regional businesses, or delay in integrating the regional businesses, or IT systems of regional businesses could

create an increased risk of cybersecurity incidents. Following our regional integration, efforts may not produce the

expected margins or cash flows. Furthermore, we may finance these strategic transactions by incurring additional

debt or issuing equity, which could increase leverage or impact our ability to access capital in the future.

***We are subject to cybersecurity and information technology risks related to breaches of security pertaining*** 

***to sensitive company, customer, employee and vendor information as well as breaches in the technology*** 

***used to manage operations and other business processes.*** 

Our business operations rely on securely managed information technology systems, some of which are provided or

managed by third parties, for data capture, processing, storage and reporting. We have invested in information

technology security initiatives and risk management, as well as incident response, business continuity and disaster

recovery plans, but it is not possible to eliminate all systematic or external risk. Further, the development and

maintenance of information technology security measures is costly and requires ongoing monitoring, testing and

updating as technologies and processes change, and efforts to overcome security measures become increasingly

sophisticated. Additionally, the global regulatory environment surrounding information security, data privacy and data

protection is becoming increasingly restrictive and is evolving frequently.

The current cyber threat environment presents increased risk for all companies, including those in our industry. Like

other global companies, our systems are subject to recurring attempts by third parties to access information,

manipulate data or disrupt operations. In this regard, we have experienced cyber threats and events from time to

time, although none have materially affected us, including our results of operations or financial condition. Given the

current cyber threat environment, the volume and intensity of cybersecurity attacks and attempted intrusions are

expected to increase in the future. We work with a large and increasing number of third-party vendors, suppliers,

platforms, software, applications, and technologies, each of which may be subject to a cybersecurity incident or

information technology failure that impacts our business or operations. We may be required to spend significant

resources to verify the implementation of cybersecurity controls by our vendors and suppliers. In addition, despite

careful security and controls design, implementation, updating, monitoring and independent third-party verification,

our information technology systems, together with those of our third-party providers or joint venture partners, have

been and could again be compromised or disrupted due to factors such as employee error or malfeasance, cyber-

attacks, including ransomware, malware, phishing attacks, advanced persistent threats, social engineering,

credential stuffing or distributed denial-of-service attacks or data or security breaches by malicious actors such as

common hackers, criminal groups or nation-state organizations or social activist ("hacktivist") organizations,

disruptions resulting from geopolitical events, natural disasters, failures or impairments of telecommunications

networks or other catastrophic events. Such attacks are increasing in complexity, and the rapid evolution and

increased adoption of AI technologies may intensify cybersecurity risks by making cyber-attacks more difficult to

detect, contain, and mitigate. Furthermore, remote working and personal device use increases the risks of cyber

incidents and the improper dissemination of personal or confidential information. Moreover, the hardware, software

or applications we use may have inherent vulnerabilities or defects of design, manufacture or operations or could be

inadvertently or intentionally implemented or used in a manner that could compromise information security. In

addition, cybersecurity-related threats may remain undetected for an extended period of time.

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Any cybersecurity attack, data or security breach, other security incident, compromise, damage, disruption, outage

or shutdown to our or the information technology systems or networks, or those of any businesses with which we

interact could result in lost sales, business delays, negative publicity or reputational impact, and a loss of customer

confidence, and have a material adverse effect on our business or financial results. Any such incident or breach

could also result in operational or supply chain disruptions, data loss, corruption or manipulation, or information

misappropriation including, but not limited to, interruption to systems availability, denial of access to and misuse of

applications required by customers to conduct business, the acquisition, use or disclosure of data or inability to

access data, the release of confidential information about our operations, and subject us to litigation and

government enforcement actions. Further, in such event, access to applications required to plan operations, source

materials, manufacture and ship finished goods and account for orders could be denied or misused. Theft of

intellectual property or trade secrets, and loss or inappropriate disclosure of confidential company, employee,

customer or vendor information, could also stem from such incidents. Moreover, any significant cybersecurity event

could require us to devote significant management time and resources in response to such event, interfere with the

pursuit of other important business strategies and initiatives, and cause us to incur additional expenditures, which

could be material, including to investigate and remediate such event, recover lost data, prevent future compromises

and adapt systems and practices in response to such events. There is no assurance that any remedial actions will

meaningfully limit the success of future attempts to breach our information systems, particularly because malicious

actors are increasingly sophisticated and utilize tools and techniques specifically designed to circumvent security

measures, avoid detection and obfuscate forensic evidence, which means we may be unable to identify, investigate

or remediate effectively or in a timely manner. Further, we are subject to an increasing number of cybersecurity

reporting obligations in different jurisdictions that vary in their scope and application, which may add complexities in

providing complete and reliable information about cybersecurity incidents to customers, counterparties, and

regulators, as well as the public. Corporate actions may impact our cybersecurity risk profile. As part of the strategic

separation of our EMEA packaging business, we intend to assess and address these cybersecurity risks to ensure

robust protection of our operations and data assets. Additionally, while insurance coverage designed to address

certain aspects of cyber risks may be in place, such insurance coverage may be insufficient to cover all losses or all

types of claims that may arise in connection with such incidents.

***Our continued growth will depend on our ability to retain existing customers and attract new customers.*** 

Our future growth will depend on our ability to retain existing customers, attract new customers as well as make

existing customers and new customers increase their volume commitments. There can be no assurance that

customers will continue to use our products or that they will be able to continue to attract new volumes at the same

rate as in the past.

A customer's use of our products may decrease for a variety of reasons, including the customer's level of

satisfaction with our products and services, the expansion of business to offer new products, the effectiveness of

our support services, the pricing of our products, the pricing, range and quality of competing products, the effects of

global economic conditions, regulatory limitations, trust, perception and interest in the paper and packaging industry

and in their products. Furthermore, customers can and do switch purchases between competing packaging

providers.

Any failure by us to retain existing customers, attract new customers, and increase revenue from both new and

existing customers could have a material adverse effect on our business, results of operations, financial condition

and/or future prospects. These efforts may require substantial financial expenditures, commitments of resources,

developments of processes, and other investments and innovations without a guarantee that existing customers will

be retained and/or new customers will be attracted.

***Uninsured losses or losses in excess of our insurance coverage for various risks could have an adverse*** 

***financial effect on our business.*** 

We maintain business insurance that we consider to be adequate and appropriate for our business and activities.

Certain types of risks such as losses due to natural disasters, riots, acts of war or terrorism are, however, either

uninsurable or not economically insurable. In addition, even if a loss is insured, we may be required to pay a

significant deductible on any claim for recovery of such loss prior to the insurer being obliged to reimburse the loss,

or the amount of the loss may exceed the coverage for the loss. Any uninsured losses could have a material

adverse effect on our business, financial condition, results of operations and/or future prospects.

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***We may not be able to adequately secure and protect our intellectual property rights, which could harm our*** 

***competitive advantage.*** 

We rely on intellectual property laws to protect our rights to certain aspects of our systems, products and processes

including product designs, proprietary technologies, research and concepts. For example, our packaging business

owns hundreds of patents covering our designs and products. Trademarks and licenses and their effective

management play an important role in protecting intellectual property rights. The actions taken by us to protect our

respective proprietary rights may be inadequate to prevent imitation or unauthorized use. The laws of various

countries offer different levels of protection for intellectual property rights and there can be no assurance that our

intellectual property rights will not be challenged, invalidated, misappropriated or circumvented by third parties. Any

of these possibilities could have a material adverse effect on our business, financial condition, results of operations

and/or future prospects.

***We may fail to identify, prioritize or implement digital and/or AI transformation initiatives.***

We may fail to identify, prioritize or implement digital and/or AI transformation initiatives across our operations,

including areas such as product design, materials sourcing, manufacturing, logistics, and customer delivery. Our

failure to adopt or scale these capabilities in a timely manner could impair our ability to meet evolving customer

expectations or may result in us falling behind our competitors with regards to innovation, speed to market,

manufacturing efficiency, and service performance. Any such shortfall could have a material adverse effect on our

business, financial condition, results of operations and/or future growth prospects.

**RISKS RELATED TO THE SEPARATION** 

***The proposed separation of our EMEA packaging business may not be completed, on the terms or the*** 

***timeline announced, if at all, and we may fail to realize some or all of the potential benefits of the proposed*** 

***separation.*** 

On January 29, 2026, we announced our intention to create two independent, publicly traded companies:

International Paper will be comprised of its current business in North America including both legacy IP and DS

Smith assets, and the EMEA packaging business will be comprised of both legacy DS Smith and IP assets in

EMEA. The separation is expected to be structured as a spin-off of the combined EMEA Packaging business to

shareholders and is expected to be completed within 12-15 months, subject to the satisfaction of certain customary

conditions, including final approval by the IP Board of Directors as well as the filing and effectiveness of a

registration statement with the U.S. Securities and Exchange Commission and the publication of a prospectus

approved by the U.K. Financial Conduct Authority.

Executing the proposed separation will require significant amounts of time and effort, which could divert

management attention, disrupt the activities of our employees and have negative implications for our relationships

with our customers and other third parties. We also expect to incur additional costs and expenses in connection with

the separation.

The proposed separation is complex, and completion of the proposed separation and the timing of its completion

will be subject to a number of factors and conditions, including the readiness of the new company to operate as an

independent public company, the successful integration of both legacy DS Smith and International Paper

businesses in EMEA into one packaging business and finalization of the capital structure of the new company. The

complexity and magnitude of the restructuring and regional integration efforts associated with the separation are

significant and will continue to result in substantial costs. The restructuring and regional integration processes could

cause an interruption of, or loss of momentum in, the other activities of the Company, and our failure to meet the

challenges involved in successfully restructuring and regionally integrating legacy DS Smith and International Paper

businesses in North America and EMEA, respectively, could adversely affect the ability to separate and our

business financial condition, results of operations, and cash flows. Further, unanticipated developments could delay,

prevent or otherwise adversely affect the proposed separation, including disruptions in general or financial market

conditions, material adverse changes in business or industry conditions, unanticipated costs and potential problems

or delays in obtaining various regulatory and tax approvals or clearances. There can be no assurances regarding

the ultimate timing or structure of the proposed separation or that we will be able to complete the proposed

separation on the terms or on the timeline that was announced, if at all. In the event that the separation is not

completed, we will have incurred and may continue to incur, certain significant non-recurring costs related to the

separation without realizing the anticipated benefits.

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If the separation is completed, we may not be able to achieve the full strategic and financial benefits that are

expected to result from the separation. An inability to realize some or all of the anticipated benefits of the separation,

as well as any delays encountered in the process, could have an adverse effect on our business, financial condition,

results of operations and cash flows. There can be no assurance that the combined value of the common stock and

ordinary shares of the two companies will be equal or exceed the value that our common stock might have been

had the proposed separation not occurred.

**RISKS RELATED TO OUR INDEBTEDNESS**

***Changes in credit ratings issued by nationally recognized statistical rating organizations could adversely*** 

***affect our cost of financing and have an adverse effect on the market price of our securities.*** 

Maintaining an investment-grade credit rating is an important element of our financial strategy. A downgrade of

ratings below investment grade will likely eliminate our ability to access the commercial paper market, may limit

access to the capital markets, have an adverse effect on the market price of our securities, increase borrowing

costs and require us to post collateral for derivatives in a net liability position. The desire to maintain an investment

grade rating may cause us to take certain actions designed to improve our respective cash flow, including the sale

of assets, suspension or reduction of dividends and reductions in capital expenditures and working capital.

Certain of our debt agreements provide for an interest rate increase in case of a credit rating downgrade. This

applies to agreements governing approximately $4.0 billion of our debt as of December 31, 2025. As a result, a

downgrade in credit rating may lead to an increase in interest expenses. There can be no assurance that our credit

ratings will remain in effect for any given period of time or that such ratings will not be lowered, suspended or

withdrawn entirely by the rating agencies if, in each rating agency's judgment, circumstances so warrant. Any such

downgrade, suspension or withdrawal of credit ratings could adversely affect our cost of borrowing, limit access to

the capital markets or result in more restrictive covenants in agreements governing the terms of any future

indebtedness that we may incur.

***The level of our indebtedness could adversely affect our financial condition and impair our ability to***

***operate our business.***

As of December 31, 2025, we had approximately $9.8 billion of outstanding indebtedness. The level of our

indebtedness could have important consequences to our financial condition, operating results and business,

including the following:

• it may limit our ability to obtain additional debt or equity financing for working capital, capital expenditures,

product development, dividends, share repurchases, debt service requirements, acquisitions and general

corporate or other purposes;

• a portion of our cash flows from operations will be dedicated to payments on indebtedness and will not be

available for other purposes, including operations, capital expenditures and future business opportunities;

• the debt service requirements of our indebtedness could make it more difficult for us to satisfy other

obligations;

• it may limit our ability to adjust to changing market conditions, including taking actions in connection with

changes in interest rates (such as in the current elevated interest rate environment), and place us at a

competitive disadvantage compared to our competitors that have less debt;

• it may increase our exposure to risks related to fluctuations in foreign currency as we earn profits in a

variety of currencies around the world and our debt is denominated in U.S. dollars, British pounds and

Euros;

• it may increase our exposure to the risk of increased interest rates insofar as we are compelled to refinance

indebtedness in an environment where rates, despite moderating in 2025, remain elevated and subject to

ongoing volatility; and

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• it may increase our vulnerability to a downturn in general economic conditions or in our business and may

make us unable to carry out capital spending that is important to our growth.

In addition, we are subject to agreements governing our indebtedness that require us to meet and maintain certain

financial ratios and covenants. A significant or prolonged downturn in general business and economic conditions, or

other significant adverse developments with respect to our results of operations or financial condition, may affect

our ability to comply with these covenants or meet those financial ratios and tests and could require us to take

action to reduce our debt or to act in a manner contrary to our current business objectives. Moreover, the

restrictions associated with these financial ratios and covenants may prevent us from taking actions that we believe

would be in the best interest of our business and may make it difficult for us to execute our business strategy

successfully or effectively compete with companies that are not similarly restricted. Additionally, despite these

restrictions, we may be able to incur substantial additional indebtedness in the future, which might subject us to

additional restrictive covenants that could affect our financial and operational flexibility and otherwise increase the

risks associated with our indebtedness as noted above.

***We are subject to risks associated with variable rate debt.*** 

We are subject to interest rate risk associated with short-term cash investments, variable rate debts, supply chain

financing and short-term debt. We are also exposed to interest rate risk in relation to our installment notes and loans

in the Temple Inland timber monetization special purpose entities. We have variable rate debt in the aggregate

amount of approximately $2.1 billion as of December 31, 2025. Interest rates rose significantly during 2022-2024

but declined in 2025 following adjustments made by the Federal Reserve in response to economic conditions.

Interest rates could remain volatile in 2026. Changes in interest rates impact the earnings on our short-term cash

investments, the interest rate payable on our variable rate debt and credit agreements, the cost of supply chain

financing and the refinance rate on our short-term debt.

***Downgrades in the credit ratings of banks issuing certain letters of credit will increase our cost of*** 

***maintaining certain indebtedness and may result in the acceleration of deferred taxes.*** 

We are subject to the risk that a bank with currently issued irrevocable letters of credit supporting installment notes

in connection with Temple Inland's 2007 sales of forestlands, may be downgraded below the required rating. Prior to

2013, certain banks had fallen below the required ratings threshold and were successfully replaced, or waivers were

obtained regarding their replacement. As a result of continuing uncertainty in the banking environment, the three

letter-of-credit banks currently in place remain subject to risk of downgrade and the number of qualified replacement

banks remains limited. The downgrade of one or more of these banks may subject us to additional costs of securing

a replacement letter-of-credit bank or could result in an acceleration of deferred income taxes of $487 million if

replacement banks cannot be obtained.

**RISKS RELATED TO LEGAL PROCEEDINGS AND COMPLIANCE COSTS**

***Results of legal proceedings could have a material effect on our consolidated financial results.*** 

We are a party to various legal, regulatory and governmental proceedings and other related matters, including with

respect to antitrust and environmental matters. In addition, we are and may become subject to other loss

contingencies, both known and unknown, which may relate to past, present and future facts, events, circumstances

and occurrences. Should an unfavorable outcome occur in connection with the legal, regulatory or governmental

proceedings or our other loss contingencies or we become subject to any such loss contingencies in the future,

there could be a material adverse impact on our financial results. See <u>[Note 14 - Commitments and Contingent](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u> 

<u>[Liabilities](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u> of <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> for further information.

For example, we (through both International Paper and our DS Smith legacy subsidiaries operating in Italy) are

among several of companies operating in the paper packaging industry subject to a decision by the Italian

Competition Authority concerning anti-competitive behavior in Italy. We are further subject to a number of actual and

threatened claims for compensation arising out of or relating to the decision by the Italian Competition Authority. In

addition, International Paper has been named as a defendant in a purported class action complaint that alleges civil

violation of Sections 1 and 3 of the Sherman Act. The complaint alleges that the defendants, beginning on

November 1, 2020 through the present, conspired to fix, raise, maintain, and/or stabilize prices of containerboard

products and seeks to recover treble damages, injunctive relief, attorneys' fees and actual damages.

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The Company is defending and intends to continue to defend robustly against such claims. It is too early to predict

or reasonably estimate the overall outcome or ultimate potential liability (if any) that might be incurred in connection

therewith, and there can be no guarantee that the aggregate of possible damages could not have a material impact

on our financial condition.

***We could be exposed to liability for Brazilian taxes under our agreements with Sylvamo Corporation.*** 

In connection with the spin-off of Sylvamo Corporation ("Sylvamo"), we previously entered into agreements with

Sylvamo and its subsidiaries, including among others a tax matters agreement. Under the tax matters agreement,

we could have significant payment obligations in connection with certain Brazilian tax matters. Under this

agreement, we have agreed to pay 60% of the first $300 million of any liability resulting from the resolution of these

Brazilian tax matters (with Sylvamo paying the remaining 40% of the first $300 million of any such liability) and

100% of any liability resulting from the Brazilian tax matters over $300 million. These Brazilian tax matters relate to

assessments for the tax years 2007-2015 of approximately $106 million in tax (adjusted for variation in currency

exchange rates) and approximately $288 million in interest, penalties, and fees (adjusted for variation in currency

exchange rates). Accordingly, the assessments total approximately $394 million (adjusted for variation in currency

exchange rates), although interest, penalties and fees continue to accrue. Under the tax matters agreement, our

potential liability for such assessments would currently be approximately $274 million (adjusted for variation in

currency exchange rates). If we were found liable to pay such amounts, this could have an adverse effect on our

business, financial condition, results of operations and/or cash flow. See Note <u>[14 - Commitments and Contingent](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u> 

<u>[Liabilities](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u> of <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> for further information.

***DS Smith previously identified material weaknesses in its internal controls over financial reporting,*** 

***including its Information Technology General Control environment, that, if not properly remediated, could*** 

***increase the costs, expenses and management time required to meet the standards required by Section 404*** 

***of the Sarbanes-Oxley Act, and therefore adversely affect the business of the Company and its share price.***

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting,

such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated

financial statements will not be prevented or detected on a timely basis.

Prior to January 31, 2025, DS Smith was not required to comply with Section 404 of the Sarbanes-Oxley Act or to

formally assess the effectiveness of its internal controls over financial reporting for that purpose. As described under

<u>[Item 8 "Report of Management on Financial Statements](#i5ba32aeab3f947f28a9e9ed735c0c7c4_130)</u>" and <u>[Item 9A. "Controls and Procedures](#i5ba32aeab3f947f28a9e9ed735c0c7c4_220)</u>," in connection

with the preparation of the acquisition proxy statement, the independent auditors identified material weaknesses in

DS Smith's internal control environment including Information Technology General Controls ("ITGCs") in fiscal years

ended April 30, 2022, April 30, 2023, and April 30, 2024, which would have constituted material weaknesses under

Section 404 of the Sarbanes-Oxley Act. DS Smith's ITGCs were not consistently operating effectively due to

inappropriate user and administrative access, ineffective change-management, inadequate third-party management,

and insufficient authentication and security protocols.

In accordance with SEC guidance, our management's assessment of the effectiveness of the Company's internal

control over financial reporting as of December 31, 2025, excluded DS Smith. During 2025, International Paper

worked to incorporate the internal controls and procedures for DS Smith into the Company's internal control

environment and will continue to incorporate the internal controls and procedures for the legacy DS Smith assets in

North America post separation. Management is focused on remediating the DS Smith ITGC deficiencies, and has

initiated a redesign of ITGCs across DS Smith systems, including enhancing governance over user access and

system changes, by delivering training across DS Smith to further educate and upskill control and process owners.

Management intends to implement the redesigned control framework in 2026.

These remediation measures may be time consuming and costly and there is no assurance that these initiatives will

ultimately have the intended effects. The deficiencies in DS Smith's internal control over financial reporting will not

be considered remediated until the controls operate for a sufficient period and management has concluded, through

testing that these controls operate effectively. If we do not successfully remediate the deficiencies, or if other

deficiencies are identified or arise in the future, we may incur additional costs and expenses and will be required to

dedicate management's time to meeting the standards required by Section 404 of the Sarbanes-Oxley Act. In such

case, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic

reports, in addition to applicable stock exchange listing requirements and requirements under certain of our

agreements, which could adversely affect investor confidence in us, our business, and the trading price of our

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common stock. In addition, these DS Smith ITGC deficiencies may also have the effect of heightening other risks

described in this "Risk Factors" section.

**RISKS RELATED TO CLIMATE AND WEATHER AND SOCIAL AND ENVIRONMENTAL IMPACT REPORTING**

***We are subject to risks associated with climate change and other sustainability matters and global, regional*** 

***and local weather conditions as well as by legal, regulatory, and market responses to climate change.*** 

Climate change impacts, including rising temperatures, extreme temperature events (such as prolonged heat or

freezing conditions) and the increasing severity and/or frequency of adverse weather conditions, may result in

operational impacts on our facilities, as well as supply chain disruptions and increased raw material and other costs.

These adverse weather conditions and other physical impacts which may be exacerbated as the result of climate

change include floods, hurricanes, tornadoes, earthquakes, hailstorms, wildfires, snow, ice storms and drought.

Climate change may also contribute to the decreased productivity of forests, a key source in the production of paper

products, and adverse impacts on the distribution and abundance of species, and the spread of disease and insect

epidemics, any of which developments could adversely affect forestland management and the availability of energy

and water resources. The effects of climate change and global, regional and local weather conditions, including the

resulting financial costs of compliance with legal or regulatory initiatives, could have a material adverse effect on our

results of operations and business.

In recent years, there has been a heightened focus, including from investors, customers, the general public,

domestic and foreign governmental (including but not limited to the United Kingdom and the European Union) and

nongovernmental authorities, regarding sustainability matters, including with respect to climate change, greenhouse

gas ("GHG") emissions, packaging and waste, sustainable supply chain practices, biodiversity, deforestation, land,

energy and water use, and human capital matters. This heightened focus on sustainability matters, including climate

change, has resulted in more prescriptive reporting requirements with respect to sustainability metrics and other

new requirements, an increased expectation that such metrics will be voluntarily disclosed by companies such as

ours, and increased pressure with respect to making commitments, setting targets, or establishing goals, and taking

action to meet them, which has caused and is expected to continue to cause the Company to incur increased

compliance costs. As the result of this increased focus and commitment to sustainability matters, we (either

voluntarily and/or as required by applicable law and regulation) have provided disclosure and established targets

and goals with respect to various sustainability matters, including climate change. For example, we have publicly

committed to reducing our Scope 1, 2 and 3 GHG emissions by 35% from 2019 to 2030. Meeting these and other

sustainability targets and goals have increased our capital and operational costs. Further, we may continue to

establish, increase and/or revise such disclosure, targets and goals in the future. For example, as we prepare to

separate our EMEA operations, we intend to assess International Paper's 2030 goals and adapt our existing targets

and timelines. Efforts to achieve our initiatives and goals, including collecting, measuring, and reporting

sustainability information, involve operational, reputational, financial, legal, and other challenges and may result in

additional costs or delays related to achieving our 2030 goals. Such efforts may have a negative impact on us,

including our brand name, reputation, and the market price of our common stock.

There also continues to be a lack of consistency in implementation expectations of legal and regulatory initiatives

regarding climate change across jurisdictions and various governmental entities. Additional expenses are expected

to be incurred because of domestic and international regulators requiring additional disclosures regarding GHG

emissions. Further, there can be no assurance regarding the extent to which our climate and other sustainability

targets can be achieved, and the achievement of these targets is subject to various risks and uncertainties, some of

which are outside our control. Moreover, there is no assurance that investments made in furtherance of achieving

such targets and goals will meet investor expectations or any binding or non-binding legal standards regarding

sustainability performance. If we are unable to meet climate and other sustainability targets and goals, on projected

timelines or at all, or if such goals and targets are perceived negatively, including the perception that they are not

sufficiently robust or, conversely, are too costly or not otherwise in our best interests, investor, customer and other

stakeholder relationships could be damaged, which could adversely impact our reputation, business and results of

operations. Moreover, not all our competitors establish climate or other sustainability targets and goals at

comparable levels, which could result in competitors having lower supply chain or operating costs as well as

reduced reputational risks associated with not meeting such goals.

We may be unable to manage energy demand needs within our sustainability targets and certain of our respective

acquisitions may bring new sustainability challenges. Such inability to manage sustainability demands and

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challenges could have a significant impact on our business, financial condition, results of operations and/or future

prospects. Other climate-related business risks that we face, include risks related to the transition to a lower-carbon

economy, such as increased prices for fossil fuels; the introduction of a carbon tax; increased regulation of

operations and products, and the resulting potential for increased litigation; and more stringent and/or complex

environmental and other permitting requirements. To the extent that climate-related business risks materialize,

particularly if we are unprepared for them, we may incur unexpected costs, and our business may be materially and

adversely affected.

Additionally, sustainability reporting is becoming more broadly expected by regulators, investors, shareholders, and

other third parties. If we do not adapt to or comply with such investor, customer, or other stakeholder expectations,

or if we are perceived to have not responded appropriately or quickly enough to growing sustainability related

concerns for sustainability issues, regardless of whether there is a regulatory or legal requirement to do so, we may

suffer reputational damage or be precluded from doing business with certain customers. Our business, financial

condition, and/or the market price of our common stock could be materially and adversely affected. Further, our

sustainability and goals may not be favored by certain stakeholders, whose priorities and expectations may not align

or may be opposed to one another, which could result in public scrutiny or reputational damage, and could impact

the attraction and retention of investors, customers, and employees.

**RISKS RELATED TO OUR PENSION AND HEALTHCARE COSTS**

***Our pension and health care costs are subject to numerous factors which could cause these costs to*** 

***change.*** 

We have defined benefit pension plans covering substantially all U.S. salaried employees hired prior to July 1, 2004,

and substantially all hourly union and non-union employees regardless of hire date. We froze participation for U.S.

salaried employees under these plans, including credited service and compensation on or after January 1, 2019;

however, the pension freeze does not affect benefits accrued through December 31, 2018.

We continue to provide retiree health care benefits to certain former U.S. employees, as well as financial assistance

toward the cost of individual retiree medical coverage for certain former U.S. salaried employees. Prior to the

acquisition, DS Smith and its predecessor entities maintained a number of separate defined benefit pension

arrangements for different employee groups. These plans were closed or frozen at different times and, in some

cases, were subsequently terminated or transitioned to multiemployer plans. For certain union represented groups,

we continue to make required contributions or other payments tied to historical withdrawal liabilities or plan funding

obligations. We also assumed a small legacy retiree life insurance benefit for a limited group of former employees,

which will continue only for the remaining covered participants through 2027. DS Smith did not provide retiree health

care benefits to its U.S. employees, and no new retiree health care obligations were created as part of the

acquisition.

Pension costs are dependent upon numerous factors resulting from actual plan experience and assumptions of

future experience. Pension plan assets are primarily made up of equity and fixed income investments. Fluctuations

in actual market returns on plan assets, changes in general interest rates and in the number of retirees may impact

pension costs in future periods. Likewise, changes in assumptions regarding current discount rates and expected

rates of return on plan assets could increase pension costs. However, the impact of market fluctuations has been

reduced as a result of investments in our pension plan asset portfolio which hedge the impact of changes in interest

rates on the plan's funded status. Drivers for fluctuating health costs include unit cost changes, health care

utilization by participants, and potential changes in legal requirements and government oversight. If any of these

factors cause pension costs or health care benefits to increase in future periods, this could have an adverse effect

on our business, financial condition, results of operations and/or cash flow.

***Our U.S. and UK funded pension plans are currently fully funded on a projected benefit obligation basis;*** 

***however, the possibility exists that over time we may be required to make cash payments to the plans,*** 

***reducing the cash available for our business.*** 

We record an asset or a liability associated with our pension plans equal to the surplus of the fair value of plan

assets above the benefit obligation or the excess of the benefit obligation over the fair value of plan assets. As of

December 31, 2025, we had an overfunded U.S. qualified pension with a surplus of $366 million and an overfunded

UK qualified pension with a surplus of $112 million. When aggregated with U.S. nonqualified pension obligations,

the benefit surplus recorded under the provisions of Accounting Standards Codification 715, "Compensation –

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

Retirement Benefits," as of December 31, 2025 was $148 million. The amount and timing of future contributions,

which could be material, will depend upon a number of factors, including the actual earnings, changes in values of

plan assets and changes in interest rates. If benefit obligations under the qualified pensions exceed the value of

plan assets by more than permitted under applicable statutory minimum funding requirements, then we may be

required to make additional contributions. Such contributions may have an adverse effect on our operational results

and cash flow.

**<u>[ITEM 1B. UNRESOLVED STAFF COMMENTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_55)</u>**

None.

**<u>[ITEM 1C. CYBERSECURITY](#i5ba32aeab3f947f28a9e9ed735c0c7c4_58)</u>**

**RISK MANAGEMENT AND STRATEGY**

The Company's cybersecurity risk management processes are integrated into our overall risk management system.

The Company has a formalized enterprise risk management program overseen by the Board of Directors and

committees of the Board of Directors that addresses strategic, operational, financial, compliance, legal and

information technologies and cybersecurity risks. Each year, the Chief Audit Executive provides the Board of

Directors and members of the ELT with a comprehensive update on the Company's risk management activities. This

update includes a structured, collaborative review through which key risks are examined and prioritized. In 2025, the

Board of Directors identified seven priority risks for the Company, including cybersecurity.

The Company has an Information Technology ("IT") Risk Governance Program that aligns with our enterprise risk

management framework and assists with fulfilling oversight responsibilities for major IT risks, including cybersecurity

risks. An enterprise Cyber Governance, Risk, and Compliance function manages overall Company cyber risk,

coordinating risk management functions with each business. Business and IT leaders conduct cyber risk reviews

monthly within each business. These monthly reviews include the evaluation of new and evolving risks,

management of risk mitigation plans, and a review of all cybersecurity incidents meeting certain criteria.

***Our Cybersecurity Risk Assessment Program*** 

The Company has a risk assessment program in place to assess, identify and manage material risks from

cybersecurity threats. Cybersecurity risks the Company faces include targeted attacks, ransomware, malware,

phishing attacks, data theft, other data or security breaches, virus and intrusion software, as well as attacks to our

website, financial applications, operational technology, telecommunications and human resources data. Key aspects

of the Company's cybersecurity program include the following:

• layered technical protective capabilities and detective surveillance controls;

• using independent third parties to assess the Company's practices related to, and provide expertise and

assistance with, various aspects of information security, as further described below;

• courses and awareness training on information security for employees with Company email or access to

Company devices, including phishing, social engineering and other cybersecurity training as well as

targeted training for specific roles based on responsibilities and risk level;

• global security and privacy policies; and

• business continuity, incident response and disaster recovery procedures, including table top exercises

involving senior leaders.

The Company does not believe that risks from cybersecurity threats, including as a result of any previous

cybersecurity incidents, have materially affected the Company, including its business strategy, results of operations

or financial condition. For a full discussion of cybersecurity risks facing the Company, please see <u>[Part I, Item 1A.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_52)</u> 

<u>[Risk Factors](#i5ba32aeab3f947f28a9e9ed735c0c7c4_52)</u> - ***We are subject to cybersecurity and information technology risks related to breaches of*** 

***security pertaining to sensitive company, customer, employee and vendor information as well as breaches*** 

***in technology used to manage operations and other business processes.***

The Company carries cyber insurance which provides coverage in connection with cybersecurity breaches.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

***Engagement of Third Parties***

The Company engages third parties in connection with assessing, identifying and managing its cybersecurity risks.

All of the following activities were conducted in both regions in 2025, except for the annual security program

assessment which was completed in North America and is planned for EMEA in 2026:

• Engagement of an independent third party with incident response expertise to provide intelligence-based

cybersecurity solutions and services to assist the Company with preparing for, preventing, investigating,

responding to and remediating cybersecurity incidents, including attacks that target on-premise, cloud, and

critical infrastructure environments.

• Engagement of an independent third party to conduct an annual security program assessment of the

controls, maturity and performance of the Company's information security program and the information

security risk associated with the Company's business systems. The assessment uses the National Institute

of Standards and Technology Cybersecurity Framework as its benchmark.

• Engagement of a leading third-party service provider to periodically perform an external and an internal

penetration assessment using industry standard tools and techniques.

In 2025, the Company began transitioning to a strategic outsourcing model for certain North America IT functions to

enhance efficiency and resilience.

The Company has employed the following processes to oversee and identify material risks from cybersecurity

threats associated with the Company's use of third-party service providers in North America and EMEA including the

following:

• The Company's cybersecurity risk management program takes into account third-party systems whereby

the Company could be impacted by the compromise of the security of vendors or other business relations of

the Company, and the Company has a comprehensive third-party access management system.

• The Company conducts risk-based due diligence on the profiles of third-party service providers with respect

to cybersecurity risks prior to engagement.

• Providers of critical and outsourced services are continuously monitored with respect to security risks,

including periodic audits and compliance reviews.

• The Company also requires service providers to adhere to the Company's cybersecurity standards,

maintain robust security controls, and provide prompt notification of any actual or suspected breach

impacting Company data or operations.

These measures are designed to mitigate risks associated with use of third parties including outsourcing of non-

core IT functions overseas while maintaining compliance with applicable regulatory requirements and protecting the

integrity of the Company's systems and data. We expect the transition to be finalized in the second quarter of 2026.

Additionally, our Internal Audit team conducts annual assessments of our cyber programs and controls.

***Oversight of Third Parties***

The Company has processes to oversee and identify material risks from cybersecurity threats associated with the

Company's use of third-party service providers. In this regard, the Company's cybersecurity risk management

program takes into account third-party systems whereby the Company could be impacted by the compromise of the

security of vendors or other business relations of the Company, and the Company has a comprehensive third-party

access management system. In addition, the Company conducts risk-based due diligence on the profiles of third-

party service providers with respect to cybersecurity risks prior to engagement, and providers of critical and

outsourced services are continuously monitored with respect to security risks, including periodic audits and

compliance reviews. The Company also requires service providers to adhere to the Company's cybersecurity

standards, maintain robust security controls, and provide prompt notification of any actual or suspected breach

impacting Company data or operations.

These measures are designed to mitigate risks associated with use of third parties including outsourcing of non-

core IT functions overseas while maintaining compliance with applicable regulatory requirements and protecting the

integrity of the Company's systems and data.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**CYBERSECURITY GOVERNANCE** 

***Role of the Board of Directors and its Committees***

International Paper has an integrated board and executive-level governance structure that oversees risks from

cybersecurity threats. The Company's Board of Directors has primary oversight of our enterprise risk management

program, which includes cybersecurity risk. Moreover, the Board of Directors is supported in its oversight by the

Audit and Finance Committee and Public Policy and Environment Committee ("PPE Committee"), which share

oversight responsibilities related to the Company's information security programs. The Audit and Finance

Committee reviews management's cybersecurity and information security risk management programs and controls,

including processes for management's identification and reporting of material cybersecurity incidents. The PPE

Committee reviews technology issues pertinent to the Company including those associated with information and

operational technology, cybersecurity and data security and assesses related Company strategies.

Our Board of Directors, Audit and Finance Committee and PPE Committee each receive periodic updates on

cybersecurity issues from management (including our Chief Information Security Officer ("CISO")). For example, the

CISO provides reports to the Audit and Finance Committee and PPE Committee annually regarding cybersecurity

risks, as well as plans and strategies to mitigate those risks.

***Role of Management***

At a management level, our cybersecurity risk management program is led by our CISO. Our current CISO has

been with the Company for over 30 years, worked in Information Technology for over 25 years, and has led the

Company's security efforts since 2011. Appointed as the Company's first CISO in 2019, our CISO stays current on

cybersecurity issues and trends through continuing education activities such as participation at conferences and in

webinars. Our CISO reports to our Chief Financial Officer. Additionally, our CISO and members of the cybersecurity

team hold several industry recognized certifications, such as Certified Information Systems Security Professional,

Certified Information Security Manager, and Certified Ethical Hacker, among others.

The Company has adopted a global cyber-incident response plan which provides for controls and procedures in

connection with cybersecurity events, including escalation procedures summarized below. The cyber-incident

response plan captures our North America and EMEA operations and is designed to address non-operational and

operational cybersecurity events. Evaluation and response to cybersecurity events is led by our Cybersecurity

Incident Response Teams ("CIRTs"), under the direction of our CISO. The CIRTs are made up of subject matter

experts representing information security, information technology, operational technology and legal. The CIRTs

perform an impact assessment with respect to cybersecurity incidents, gathers facts and provides a chronology of

events in connection therewith, and lead remediation and recovery activities. Our General Counsel, Senior Vice

President, Chief Human Resources Officer, Chief Ethics and Compliance Officer (or their respective designees),

Global Chief Privacy Officer and CISO review and assess significant non-operational data breaches. Cybersecurity

events that meet specified criteria for operational impact are escalated for further review to our Business Continuity

Incident Command Teams ("Incident Command Teams"). The Incident Command Teams perform an initial

assessment that includes evaluation of the cybersecurity event's severity, response required, and estimated

business cost, and leads the execution of business continuity plans to maintain Company operations. Cybersecurity

events meeting certain criteria are escalated to our Disclosure Committee, General Counsel and Chief Financial

Officer for further review, and, if appropriate, may be further elevated for the review of the Board of Directors. The

Disclosure Committee, General Counsel and Chief Financial Officer assess and determine materiality using the

facts gathered and chronology of events provided by the Incident Command Team. If deemed material, the event

will be timely reported on a Current Report on Form 8-K in accordance with applicable SEC rules.

**<u>[ITEM 2. PROPERTIES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_61)</u>**

**<u>[MILLS AND PLANTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_64)</u>**

A listing of our production facilities by segment, the vast majority of which we own, can be found in <u>[Appendix I](#i5ba32aeab3f947f28a9e9ed735c0c7c4_262)</u> 

hereto, which is incorporated herein by reference.

The Company's facilities are in good operating condition and are suited for the purposes for which they are

presently being used. We continue to study the economics of modernization or adopting other alternatives for higher

cost facilities.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[CAPITAL INVESTMENTS AND DISPOSITIONS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_67)</u>**

Given the size, scope and complexity of our business interests, we continually examine and evaluate a wide variety

of business opportunities and planning alternatives, including possible acquisitions and sales or other dispositions of

properties. You can find a discussion about the level of planned capital investments for 2026 and dispositions and

restructuring activities as of December 31, 2025 in <u>[Item 7. Management's Discussion and Analysis of Financial](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u> 

<u>[Condition and Results of Operations](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u> and in <u>[Note 7 Acquisitions](#i5ba32aeab3f947f28a9e9ed735c0c7c4_172)</u> of <u>[Item 8. Financial Statements and Supplementary](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> 

<u>[Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>.

**<u>[ITEM 3. LEGAL PROCEEDINGS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_70)</u>**

Information concerning certain legal proceedings of the Company is set forth in <u>[Note 14 Commitments and](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u> 

<u>[Contingent Liabilities](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u> of <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> which is incorporated herein by

reference.

The Company is not subject to any administrative or judicial proceeding arising under any federal, state or local

provisions that have been enacted or adopted regulating the discharge of materials into the environment or primarily

for the purpose of protecting the environment that is likely to result in monetary sanctions of $1 million or more.

**<u>[ITEM 4. MINE SAFETY DISCLOSURES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_73)</u>**

Not applicable.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[PART II.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_76)</u>**

**<u>[ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND](#i5ba32aeab3f947f28a9e9ed735c0c7c4_79)</u>** 

**<u>[ISSUER PURCHASES OF EQUITY SECURITIES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_79)</u>**

As of the filing of this Annual Report on Form 10-K, the Company's common stock is traded on the New York Stock

Exchange (NYSE: IP) and the London Stock Exchange (LSE: IPC). As of February 20, 2026, there were

approximately 9,994 record holders of common stock of the Company.

We pay regular quarterly cash dividends and currently expect to continue to pay regular quarterly cash dividends in

the foreseeable future, though each quarterly dividend payment is subject to review and approval by our Board of

Directors.

The table below presents information regarding the Company's purchases of its equity securities for the time

periods presented.

**PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS.**

---

| | | | | |
|:---|:---|:---|:---|:---|
| Period | Total Number of Shares <br>Purchased (a)<br>| Average Price Paid per <br>Share<br>| Total Number of Shares <br>(or Units) Purchased as <br>Part of Publicly <br>Announced Programs<br>| Maximum Number <br>(or Approximate Dollar <br>Value) of Shares that <br>May Yet Be Purchased <br>Under the Plans or <br>Programs (in billions)<br>|
| October 1, 2025 - October 31, 2025 | 7562 | $46.97 |  | $2.96 |
| November 1, 2025 - November 30, 2025 | 12146 | 45.27 |  | 2.96 |
| December 1, 2025 - December 31, 2025 | 2718 | 41.93 |  | 2.96 |
| Total | 22426 |  |  |  |

---

*(a)22,426 shares were acquired from employees or members of our Board of Directors as a result of share withholdings to pay income taxes* 

*under the Company's stock program. On October 11, 2022, our Board of Directors increased the authorization up to a total of $3.35 billion* 

*shares. This repurchase program does not have an expiration date. As of December 31, 2025, approximately $2.96 billion aggregate* 

*shares of our common stock remained authorized for repurchase.* 

**PERFORMANCE GRAPH**

*The performance graph shall not be deemed "soliciting material" or to be "filed" with the Commission or subject to* 

*Regulation 14A or 14C under, or to the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended,* 

*(the "Exchange Act") and will not be deemed to be incorporated by reference into any filing of the Company under* 

*the Securities Act of 1933, as amended, or the Exchange Act, except to the extent the Company specifically* 

*incorporates it by reference into such a filing.*

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

The following line graph compares a $100 investment in Company stock on December 31, 2020 with a $100

investment in our peer group and the S&P Composite-500 Stock Index (S&P 500 Index) also made at market close

on December 31, 2020. The graph portrays total return, 2020-2025, assuming reinvestment of all dividends.

![performance graph3.jpg](ip-20251231_g2.jpg)

1)The companies included in the Peer Group are Klabin S.A., Mondi Group, Packaging Corporation of America and Stora Enso Group.

2)Returns are calculated in $USD.

**<u>[ITEM 6. RESERVED](#i5ba32aeab3f947f28a9e9ed735c0c7c4_85)</u>**

**<u>[ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>**

**<u>[OPERATIONS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_88)</u>**

The following discussion and analysis of our financial condition and results of operations should be read in

conjunction with our consolidated financial statements and related notes included in "<u>[Item 8. Financial Statements](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> 

<u>[and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>" of this Annual Report on Form 10-K. In addition to historical consolidated financial

information, the following discussion contains forward-looking statements that reflect our plans, estimates, and

beliefs that involve significant risks and uncertainties. Our actual results could differ materially from those discussed

in the forward-looking statements. Factors that could cause or contribute to those differences include those

discussed below and elsewhere in this Annual Report on Form 10-K, particularly in Item 1A "Risk Factors" and

"Forward-Looking Statements."

The following generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024.

Discussion of historical items in 2023, and year-to-year comparisons between 2024 and 2023, can be found in our

Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 21,

2025, under Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of

Operations.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[EXECUTIVE SUMMARY](#i5ba32aeab3f947f28a9e9ed735c0c7c4_91)</u>**

**2025 Financial Summary**

• Net sales of $23.63 billion

• Loss from continuing operations of $(2.84) billion includes the following:

◦ $2.47 billion pre-tax non-cash goodwill impairment charge

◦ $958 million non-cash accelerated depreciation associated with asset rationalization decisions

◦ $626 million of restructuring charges

• Adjusted EBITDA (non-GAAP) from continuing operations of $2.98 billion <sup>(1)</sup>

• Cash provided by operating activities of $1.70 billion

• Free cash flow (non-GAAP) of $(159) million <sup>(1)</sup>

<sup>(1)</sup> See "<u>[Non-GAAP Financial Measures](#iecd83fa0a96640e381eef5fd6e8bf638_134110)</u>" for a list of our non-GAAP financial measures and reconciliations to the

most directly comparable GAAP measures.

**Overview** 

Throughout 2025, we continued to execute a multi-year transformation designed to simplify our portfolio, sharpen

our regional focus and improve underlying earnings power. The Company undertook significant strategic and

operational changes driven largely by our 80/20 performance system, the integration of DS Smith and the

divestiture of our Global Cellulose Fibers ("GCF") business.

The Company acquired DS Smith in early 2025 for an enterprise value of approximately $9.9 billion. The acquisition

expanded our geographic reach across both the North America and EMEA regions, enabling advantaged cost

positions, superior customer experiences and improved supply positions. Integration progressed rapidly during

2025, with teams applying the 80/20 performance system across both regions to streamline combined operations,

optimize production footprints, and realize supply chain and commercial synergies. By year-end, we had executed

approximately $710 million of full run-rate cost-out actions, including synergy benefits attributable to the DS Smith

combination.

In North America, we continued to leverage 80/20 to simplify our business operations and focus our resources to

accelerate growth. In our packaging business, we exited non-strategic export and specialty markets and rationalized

higher cost capacity to better align with profitable customer demand. We achieved approximately $510 million of

run-rate cost savings in 2025 with the closures of several mills and plants, allowing us to increase investment in our

remaining assets. We also entered into a definitive agreement to divest our GCF business, positioning the company

as a pure play leading sustainable packaging solutions company.

Parallel with our efforts in North America, the Company advanced its integration and transformation strategy in

EMEA, where it launched the 80/20 performance system with approximately $200 million of run-rate cost-out

actions and synergy benefits actioned in 2025. Early adoption from teams across the regions has supported a

smooth rollout as the Company positions the EMEA business for its next phase of operational focus and regional

alignment.

In the first quarter of 2026, we completed the sale of our GCF business to American Industrial Partners for $1.5

billion. We intend to use proceeds from the transaction to support strategic reinvestment in our packaging business,

reduce debt to improve our credit profile and preserve financial flexibility and maintenance of a strong investment-

grade credit rating.

On January 29, 2026, the Company announced plans to separate into two independent, publicly traded companies:

International Paper will be comprised of its current business in North America including both legacy IP and DS

Smith assets, and the EMEA packaging business will be comprised of both legacy DS Smith and IP assets in

EMEA. The separation is expected to be structured as a spinoff of the EMEA business to shareholders, with

International Paper retaining a meaningful ownership stake. The transaction is expected to be completed within 12

to 15 months, subject to customary approvals, including final approval by IP's Board of Directors, filing and

effectiveness of registration statement with the U.S. SEC and publication of prospectus approved by the U.K.

Financial Conduct Authority. No assurance can be provided regarding the ultimate timing or structure of the

proposed separation or its eventual completion.

The Company expects that creating two regionally focused businesses will allow each to tailor strategies to their

distinct markets, enhance management focus, and support long-term value creation. In 2026, the Company expects

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

to continue advancing its transformation strategy through the planned strategic separation, targeted investment

agendas, and continued operational improvements across its regional platforms. This strategic action represents the

next phase of our transformation and is designed to advance long-term value creation for customers and

shareholders. Following the separation, International Paper plans to intensify its focus on its North American

operations, with an emphasis on targeted capital allocation, investments in productivity and innovation, and

disciplined strategic acquisitions.

As previously disclosed, IP intends to retain a meaningful ownership stake in the EMEA packaging business, which

is expected to be listed on both London Stock Exchange and the New York Stock Exchange. For additional

information about the separation, including process steps and anticipated impacts, please see <u>[Note 22 Subsequent](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2327)</u> 

<u>[Events](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2327)</u> of <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> and <u>[Part I, Item 1A. Risk Factors](#i5ba32aeab3f947f28a9e9ed735c0c7c4_52)</u> - Risks Related

to the Separation.

**Market Conditions**

Throughout 2025, the Company operated in challenging demand environments across both North America and

EMEA. In North America, market demand was weaker than expected throughout most of the year as economic

uncertainty from tariffs, slower housing starts, weaker consumer sentiment and lower industrial production

negatively impacted box demand. Although industry growth was subdued throughout 2025, we grew above market

in the second half of the year as we gained commercial momentum through our focused customer service and

reliability efforts. In EMEA, overall demand remained relatively soft throughout 2025 as macroeconomic uncertainty

and volatility persisted, influenced by trade uncertainty, geopolitical tensions in the Middle East and the Russia-

Ukraine conflict.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>Non-GAAP Financial Measures</u>**

The non-GAAP financial measures presented in this Form 10-K as referenced below have limitations as analytical

tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in

accordance with GAAP. In addition, because not all companies utilize identical calculations, the Company's

presentation of non-GAAP measures in this Form 10-K may not be comparable to similarly titled measures

disclosed by other companies, including companies in the same industry as the Company. Users are cautioned not

to place undue reliance on any non-GAAP financial measures presented in this Form 10-K.

**Below are the Company's key non-GAAP financial measures and their definitions:** 

***Adjusted operating earnings (loss) and adjusted operating earnings (loss) per share*** are defined as earnings

(loss) from continuing operations (a GAAP measure) excluding net special items and non-operating pension

expense (income). Earnings (loss) from continuing operations and diluted earnings (loss) from continuing operations

per share are the most directly comparable GAAP measures. The Company calculates adjusted operating earnings

(loss) by excluding the after-tax effect of non-operating pension expense (income) and net special items, as

described in greater detail below, from earnings (loss) from continuing operations reported under GAAP. Adjusted

operating earnings (loss) per share is calculated by dividing adjusted operating earnings (loss) by diluted average

shares of common stock outstanding. Management uses these non-GAAP financial measures to focus on ongoing

operations and believes that such non-GAAP financial measures are useful to investors in assessing the operational

performance of the Company and enabling investors to perform meaningful comparisons of past and present

consolidated operating results from continuing operations. The Company believes that using these non-GAAP

financial measures, along with the most directly comparable GAAP measures, provides for a more complete

analysis of the Company's results of operations.

***Adjusted EBITDA from continuing operations*** is defined as earnings (loss) from continuing operations before

income taxes and equity earnings (loss), interest expense, net, net special items, non-operating pension expense

(income) and depreciation and amortization. Earnings (loss) from continuing operations before income taxes and

equity earnings (loss) is the most directly comparable GAAP measure. Beginning in 2025, management is also

using this measure to focus on on-going operations and believes this measure is useful to investors. This change

reflects investor feedback and management's view that Adjusted EBITDA from continuing operations provides a

meaningful measure of the operating performance of the Company and helps enable investors to perform

meaningful comparisons of past and present consolidated operating results from continuing operations.

***Free cash flow*** is defined as cash provided by (used for) operations less capital expenditures, and the most directly

comparable GAAP measure is cash provided by (used for) operations. Management utilizes this measure in

connection with managing our business and believes that free cash flow is useful to investors as a liquidity measure

because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a

strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It

should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

***Operational income tax provision and operational effective income tax rate*** are calculated by adjusting the

earnings (loss) from continuing operations before income taxes and equity earnings (loss), income tax provision

(benefit) and rate to exclude net special items and non-operating pension expense (income). The most directly

comparable GAAP measures are the reported income tax provision and effective income tax rate, respectively.

Management believes that this presentation provides useful information to investors by providing a meaningful

comparison of the income tax rate between past and present periods.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**Below are reconciliations of the non-GAAP financial measures noted above to their most directly** 

**comparable GAAP measures:** 

Non-operating pension expense (income) represents amortization of prior service cost, amortization of actuarial

gains/losses, expected return on assets and interest cost. The Company excludes these amounts from our adjusted

operating earnings (loss) as the Company does not believe these items reflect ongoing operations. These particular

pension cost elements are not directly attributable to current employee service. The Company includes service cost

in our non-GAAP measure as it is directly attributable to employee service, and the corresponding employees' other

compensation elements, in connection with ongoing operations.

See Effects of Special Items Expense (Income) for additional detail regarding the net special items expense

(income) referenced in the tables below.

***Reconciliation of Earnings (loss) from continuing operations to Adjusted operating earnings (loss)*** 

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | 2024 |
| Earnings (Loss) from Continuing Operations | **$(2838)** | $725 |
| Add back - Non-operating pension expense (income) | **(12)** | (42) |
| Add back - Net special items expense (income)  | **3237** | 235 |
| Income tax effect - Non-operating pension and special items (a) | **(487)** | (447) |
| **Adjusted Operating Earnings (Loss)** | **$(100)** | $471 |

---

*(a) For the year ended December 31, 2025, this amount includes tax benefits of $271 million related to the EMEA goodwill impairment and $62* 

*million related to capital losses associated with the announced agreement to sell our GCF business. This amount also includes tax expense of $3* 

*million on the non-operating pension income and a tax benefit of $157 million associated with other special items. For the year ended December* 

*31, 2024, this amount includes a tax benefit of $416 million related to internal legal entity restructuring. This amount also includes tax expense of* 

*$10 million on the non-operating pension income and a tax benefit of $41 million associated with other special items.* 

***Reconciliation of Earnings (loss) from continuing operations to Adjusted operating earnings (loss) on a per*** 

***share basis*** 

---

| | | |
|:---|:---|:---|
| | **2025** | **2024** |
| Diluted Earnings (Loss) Per Share from Continuing Operations | **$(5.61)** | $2.05 |
| Add back - Non-operating pension expense (income) per share | **(0.02)** | (0.12) |
| Add back - Net special items expense (income) per share | **6.40** | 0.66 |
| Income tax effect per share - Non-operating pension and special items  | **(0.97)** | (1.26) |
| Adjusted Operating Earnings (Loss) Per Share | **$(0.20)** | $1.33 |

---

***Reconciliation of Earnings (loss) from continuing operations to Adjusted EBITDA from continuing*** 

***operations***

---

| | | |
|:---|:---|:---|
| ***In millions*** | **2025** | **2024** |
| Earnings (Loss) from Continuing Operations | **$(2838)** | $725 |
| Add back: Income tax provision (benefit) | **(533)** | (361) |
| Less: Equity earnings (loss), net of taxes | **(3)** | (5) |
| Earnings (Loss) from Continuing Operations Before Income Taxes and Equity Earnings <br>(Loss)<br>| **(3368)** | 369 |
| Interest expense, net | **372** | 214 |
| Special items | **3237** | 245 |
| Non-operating pension expense (income) | **(12)** | (42) |
| Depreciation and amortization | **2747** | 850 |
| **Adjusted EBITDA from Continuing Operations** | **$2976** | $1636 |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

***Reconciliation of Cash provided by operations to Free cash flow***

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | **2024** |
| Cash provided by operations | **$1698** | $1678 |
| Adjustments: |  |  |
| Capital expenditures | **(1857)** | (921) |
| **Free Cash Flow** | **$(159)** | $757 |

---

***Reconciliation of Income tax provision (benefit) to Operational tax provision (benefit) and the reported***

***effective income tax rate to the operational effective tax rate***

---

| | | | | |
|:---|:---|:---|:---|:---|
| *In millions* | **2025** | **2025** | **2024** | **2024** |
|  | **Provision (Benefit)** | **Rate** | **Provision (Benefit)** | **Rate** |
| Income tax provision (benefit) and reported effective income tax <br>rate<br>| **$(533)** | **16%** | $(361) | (98)% |
| Income tax effect - non-operating pension (income) expense and <br>special items<br>| **487** |  | 447 |  |
| **Operational Tax Provision (Benefit) and Operational** <br>**Effective Tax Rate**<br>| **$(46)** | **32%** | $86 | 15% |

---

***Effects of Net Special Items Expense (Income)***

Pre-tax special items included in continuing operations totaling $3.24 billion and $235 million were recorded in 2025

and 2024, respectively. Details of these charges were as follows:

---

| | | |
|:---|:---|:---|
| ***Special Items*** | | |
| *In millions* | **2025** | **2024** |
| PS EMEA goodwill impairment | **$2467**<br> **(a)** | $— |
| Severance and other costs | **626**<br> **(b)** | 104<br> (b) |
| DS Smith combination costs | **237**<br> **(c)** | 86<br> (c) |
| Net (gains) losses on sales and impairments of businesses | **(25)**<br> **(d)** |  |
| Net (gains) losses on sales and impairments of assets | **(70)**<br> **(e)** | (59)<br> (e) |
| Environmental remediation adjustments | **2**<br> **(f)** | 60<br> (f) |
| Strategic advisory fees | **—** | 37<br> (c) |
| Third-party warehouse fire | **—** | 13<br> (g) |
| Italy antitrust | **—** | (6)<br> (h) |
| Legal reserve adjustments | **—** | 10<br> (i) |
| Interest related to settlement of tax audits | **—** | (10)<br> (j) |
| **Total Pre-Tax Special Items** | **$3237** | $235 |

---

*(a) Non-cash goodwill impairment related to the Company's PS EMEA business segment recorded in impairment of goodwill.*

*(b) Severance and other costs associated with the Company's 80/20 approach which includes the realignment of resources and mill strategic* 

*actions recorded primarily in restructuring and other charges, net.* 

*(c) Transaction related costs that the Company believes are not reflective of the Company's underlying operations. 2025 includes $29 million* 

*recorded in cost of products sold, $158 million recorded in selling and administrative expenses and $50 million recorded in taxes other than* 

*payroll and income taxes. 2024 includes $123 million recorded in selling and administrative expenses.*

*(d) Includes a charge related to the sale of the Company's kraft paper bag business and a net gain related to the sale of five European box plants* 

*in Mortagne, Saint-Amand and Cabourg (France), Ovar (Portugal) and Bilbao (Spain) to satisfy regulatory commitments in connection with the* 

*DS Smith combination.*

*(e) Includes gains on assets sales related to our permanently closed Courtland, Alabama paper mill and Orange, Texas containerboard mill and* 

*charges associated with the sale of the Company's aircraft and other assets.*

*(f) Environmental remediation adjustments associated with remediation work at sites that have been closed/divested that the Company believes* 

*are not reflective of the Company's underlying operations recorded in cost of products sold.*

*(g) The Company's cost for third-party damages associated with a warehouse fire in Morocco recorded in cost of products sold.*

*(h) Settlement associated with an Italian antitrust matter initially recorded as a special item in 2019 recorded in cost of products sold.*

*(i) Legal reserve adjustment associated with a previously discontinued business recorded in cost of products sold.*

*(j) Interest income on tax overpayments in prior years associated with the settlement of certain tax audits recorded in interest expense, net.*

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[RESULTS OF OPERATIONS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_94)</u>**

The following summarizes our results from operations for the year ended December 31, 2025 compared with the

year ended December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | **2024** | **Change** |
| Net sales | **$23634** | $15835 | $7799 |
| Cost of products sold | **16637** | 11397 | 5240 |
| Selling and administrative expenses | **2050** | 1703 | 347 |
| Depreciation and amortization | **2747** | 851 | 1896 |
| Distribution expenses | **2000** | 1180 | 820 |
| Taxes other than payroll and income taxes | **210** | 119 | 91 |
| Restructuring charges, net (a) | **626** | 103 |  |
| Impairment of goodwill (a) | **2467** |  |  |
| Net (gains) losses on sales and impairments of businesses (a) | **(25)** |  |  |
| Net (gains) losses on sales and impairments of assets (a) | **(70)** | (59) |  |
| Interest expense, net | **372** | 214 | 158 |
| Non-operating pension (income) expense | **(12)** | (42) |  |
| Earnings from continuing operations before income taxes and equity earnings (loss) | **(3368)** | 369 |  |
| Income tax provision (benefit) | **(533)** | (361) |  |
| Equity earnings (loss), net of taxes | **(3)** | (5) |  |
| Earnings (loss) from continuing operations | **(2838)** | 725 |  |
| Discontinued operations, net of taxes | **(678)** | (168) |  |
| **Net earnings (loss)** | **$(3516)** | $557 |  |

---

(a) Refer to special items discussion on page <u>[41](#iecd83fa0a96640e381eef5fd6e8bf638_134109)</u>.

**TWELVE MONTHS ENDED DECEMBER 31, 2025 COMPARED TO THE TWELVE MONTHS ENDED DECEMBER 31, 2024**

The following is a discussion of International Paper's consolidated results of operations for the year ended

December 31, 2025, and the major factors affecting these results compared to 2024.

Refer to the <u>[Effects of Net Special Items Expense (Income)](#iecd83fa0a96640e381eef5fd6e8bf638_134109)</u> section for details of net special items expense (income)

discussed below.

***Net sales***

Compared to the year ended December 31, 2024, net sales for the year ended December 31, 2025 increased by

$7.8 billion. DS Smith accounted for $7.8 billion of net sales in 2025. For IP legacy, the increase of $46 million was

driven by higher sales prices partially offset by lower sales volumes. Additional details on net sales are provided in

the <u>[Business Segment Results](#i5ba32aeab3f947f28a9e9ed735c0c7c4_100)</u>section below.

***Cost of products sold***

Compared to the year ended December 31, 2024, cost of products sold for the year ended December 31, 2025

increased by $5.2 billion. DS Smith accounted for $5.8 billion of total cost of products sold in 2025 and net special

items charges of $31 million were included in 2025 compared to $77 million in 2024. For IP legacy, cost of products

sold was impacted by lower raw materials and operating materials of $542 million, partially offset by increases in

fuel and utility expenses of $111 million.

***Selling and administrative expenses***

Compared to the year ended December 31, 2024, selling and administrative expenses for the year ended

December 31, 2025 increased by $347 million. DS Smith accounted for $442 million of total selling and

administrative expenses in 2025 and net special items charges of $158 million were included in 2025 compared to

$123 million in 2024. For IP legacy, selling and administrative expenses were impacted by decreases in incentive

compensation of $148 million and increases in other costs of $21 million.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

***Depreciation and amortization***

Compared to the year ended December 31, 2024, depreciation and amortization for the year ended December 31,

2025 increased by $1.9 billion. DS Smith accounted for $1.3 billion of depreciation and amortization in 2025,

including $403 million of accelerated depreciation associated with mill and other strategic actions. For IP legacy, the

increase compared to 2024 was due to an increase of $553 million in accelerated depreciation related to mill and

other strategic actions in 2025.

***Distribution expenses***

Compared to the year ended December 31, 2024, distribution expenses for the year ended December 31, 2025

increased by $820 million. DS Smith accounted for $858 million of distribution expenses in 2025. For IP legacy,

distribution expenses were impacted by lower freight costs and lower sales volumes compared to 2024.

***Taxes other than payroll and income taxes***

Compared to the year ended December 31, 2024, taxes other than payroll and income taxes for the year ended

December 31, 2025 increased by $91 million. DS Smith accounted for $33 million of taxes other than payroll and

income taxes in 2025. Net special items charges of $50 million were included in taxes other than payroll and income

taxes in 2025. For IP legacy, taxes other than payroll and income taxes were impacted by higher real estate taxes

compared to 2024.

***Interest expense, net***

Compared to the year ended December 31, 2024, interest expense, net for the year ended December 31, 2025

increased by $158 million. DS Smith accounted for $160 million of interest expense, net in 2025 and net special

items income of $10 million was included in interest expense, net in 2024. For IP legacy, interest expense, net was

impacted by higher interest income.

***Income tax provision (benefit)***

A net income tax benefit from continuing operations of $533 million was recorded for 2025 and the reported effective

income tax rate was 16%. This includes a tax benefit of $271 million related to the EMEA goodwill impairment and a

tax benefit of $62 million related to capital losses associated with the announced agreement to sell our GCF

business, which closed in January 2026. Excluding these items, a $157 million net tax benefit for other special items

and $3 million tax expense related to non-operating pension income, the operational tax provision (benefit) (non-

GAAP) for 2025 was $46 million, or 32% of pre-tax earnings before equity earnings.

A net income tax benefit from continuing operations of $361 million was recorded for 2024 and the reported effective

income tax rate was (98)%. This includes a tax benefit of $416 million related to internal legal entity restructuring.

Excluding these items, a $41 million net tax benefit for other special items and $10 million tax expense related to

non-operating pension income, the operational tax provision (non-GAAP) for 2024 was $86 million, or 15% of pre-

tax earnings before equity earnings.

Compared to the year ended December 31, 2024, the operational effective tax rate increased by 17% in 2025. DS

Smith accounted for a significant increase in the foreign taxes driving up the operational effective tax rate in the

year.

Refer to "<u>[Non-GAAP Financial Measures](#iecd83fa0a96640e381eef5fd6e8bf638_134110)</u>" for a reconciliation of the net income tax provision (benefit) (GAAP) to the

operational income tax provision (benefit) (non-GAAP) and the reported effective income tax rate (GAAP) to the

operational effective income tax rate (non-GAAP).

***Discontinued operations, net of taxes***

On August 21, 2025, the Company announced that it had reached a definitive agreement with American Industrial

Partners ("AIP") to sell its GCF business. All current and historical operating results of the GCF business are

presented as Discontinued Operations, net of taxes, in the consolidated statements of operations. All current and

historical assets and liabilities of the GCF business are classified as Assets held for sale and Long-Term Assets

Held For Sale and Liabilities held for sale and Long-Term Liabilities Held For Sale in the accompanying consolidated

balance sheets. See <u>[Note 8 - Divestiture](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2234)</u> of <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> for further

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

details.

Discontinued operations, net of taxes for 2025 and 2024 includes the operating earnings of the GCF business.

Discontinued operations, net of taxes also includes the following charges (benefits):

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | **2024** |
| Net loss on impairment of the GCF business | **$1070** | $— |
| Global Cellulose Fibers transaction costs | **52** | 5 |
| Severance and other costs (benefits) | **(8)** | 123 |
| **Total** | **$1114** | $128 |

---

**<u>[DESCRIPTION OF BUSINESS SEGMENTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_97)</u>**

The Company currently operates in two segments: Packaging Solutions North America ("PS NA") and Packaging

Solutions EMEA ("PS EMEA"). These segments are organized by geography and align with the Company's internal

management structure. All segments are differentiated on a common product, common customer basis consistent

with the business segmentation generally used in the forest products industry. See <u>[Note 21 - Financial Information](#i5ba32aeab3f947f28a9e9ed735c0c7c4_211)</u> 

<u>[by Business Segment](#i5ba32aeab3f947f28a9e9ed735c0c7c4_211)</u> of <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> for further details regarding the

Company's business segments.

The majority of our business is focused on creating fiber-based packaging that protects and promotes goods,

enables worldwide commerce and helps keep consumers safe. We meet our customers' most challenging sales,

shipping, storage and display requirements with sustainable solutions. Our U.S. production capacity was

approximately 11 million tons annually as of December 31, 2025.

Containerboard includes linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft.

Approximately 75% of our production is converted into corrugated packaging and other packaging by our 170 North

American corrugated packaging plants. Additionally, we recycle approximately one million tons of OCC and mixed

and white paper through our 15 U.S. recycling plants. Our corrugated packaging plants are supported by regional

design centers, which offer total packaging solutions and supply chain initiatives. In EMEA, our operations include

14 containerboard mills, 148 corrugated packaging plants and 20 recycling plants.

**<u>[BUSINESS SEGMENT RESULTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_100)</u>**

The following tables present net sales and business segment operating profit (loss), which is the Company's

measure of segment profitability and is defined as earnings (loss) before income taxes and equity earnings (losses),

including the impact of less than wholly owned subsidiaries and excluding interest expense, net, corporate

expenses, net, net special items and non-operating pension expense. Business segment operating profit (loss) is a

measure reported to our management for purposes of making decisions about allocating resources to our business

segments and assessing the performance of our business segments and is presented in our financial statement

footnotes in accordance with ASC 280 - "Segment Reporting." For additional information regarding business

segment operating profit (loss), including a description of the manner in which business segment operating profit

(loss) is calculated, see <u>[Note 21 - Financial Information by Business Segment](#i5ba32aeab3f947f28a9e9ed735c0c7c4_211)</u> of <u>[Item 8. Financial Statements and](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> 

<u>[Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>.

Demand for our products is closely correlated with non-durable industrial goods production, as well as with demand

for e-commerce, processed foods, poultry, meat and agricultural products. In addition to prices and volumes, major

factors affecting profitability are raw material and energy costs, freight costs, mill outage costs, manufacturing

efficiency and product mix.

***PS NA***

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | 2024 |
| **Sales** | **$15175** | $14293 |
| **Business Segment Operating Profit (Loss)** | **$572** | $891 |

---

***PS NA*** 2025 results include sales of $611 million and business segment operating profit (loss) of $(346) million for

the DS Smith business. For legacy IP PS NA, sales increased in 2025 compared with 2024, driven by higher sales

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

prices, partially offset by lower volumes reflecting the impact of our box go-to-market strategy and mill strategic

actions. Cost of products sold decreased by $241 million and was impacted by lower volumes, lower planned

maintenance downtime costs and lower input costs, partially offset by higher operating costs. Operating costs were

higher primarily due to increased costs on materials and services and increased spending on maintenance and

reliability, partially offset by lower economic downtime. Input costs were lower, driven by lower recovered fiber and

wood costs, partially offset by higher energy and chemical costs. Selling and administrative expenses were $52

million lower due to lower incentive compensation expense. Distribution costs were $37 million lower driven by

lower sales volumes. Depreciation and amortization expense was $564 million higher, driven by accelerated

depreciation associated with our mill and other strategic actions.

Looking ahead to the first quarter of 2026, compared with the fourth quarter of 2025, sales volumes for corrugated

boxes are expected to be lower due to seasonality and the exit of non-strategic markets. Operating costs are

expected to be flat. Planned maintenance outage costs are expected to be higher due to the timing of planned

outages. Operating and input costs are expected to be relatively flat.

***PS EMEA*** 

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | 2024 |
| **Sales** | **$8451** | $1355 |
| **Business Segment Operating Profit (Loss)** | **$(236)** | $60 |

---

***PS EMEA*** 2025 results include sales of $7.2 billion and business segment operating profit (loss) of $(321) million for

the DS Smith business. For legacy IP PS EMEA, sales were lower in 2025 compared with 2024, reflecting lower

volumes in a soft demand environment and an unfavorable product mix. Cost of products sold decreased $54

million and was impacted by lower volumes, lower operating costs and lower input costs, primarily for energy costs.

Selling and administrative expenses were $12 million lower driven by incentive compensation expense. Distribution

expense was $25 million lower driven by lower sales volumes.

Entering the first quarter of 2026, compared with the fourth quarter of 2025, sales volumes are expected to be

higher due to known customer wins. Average sales margins are expected to be higher, reflecting a favorable

product mix. Operating costs are expected to be higher primarily driven by the timing of energy subsidies and

increased volumes. Planned maintenance outage costs are expected to be lower due to the timing of planned

outages. Input costs are expected to be higher primarily driven by elevated energy costs.

**<u>[LIQUIDITY AND CAPITAL RESOURCES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_103)</u>**

**OVERVIEW**

A major factor in International Paper's liquidity and capital resource planning is generation of operating cash flow,

which is highly sensitive to changes in the pricing and demand for our major products. While changes in key

operating cash costs, such as raw material, energy, mill outage and distribution, have an effect on operating cash

generation, we believe our focus on commercial and operational excellence, as well as our ability to tightly manage

costs and working capital has improved our cash flow generation over an operating cycle.

Use of cash during 2025 was primarily focused on working capital requirements, capital spending into the business

for growth including mill and plant improvements, equipment and new greenfield investments and returning cash to

shareholders through dividends.

**CASH PROVIDED BY OPERATING ACTIVITIES**

Cash provided by operations, including discontinued operations, totaled $1.7 billion in both 2025 and 2024. Cash

used by working capital components (accounts receivable, contract assets and inventory less accounts payable and

accrued liabilities, interest payable and other) totaled $834 million in 2025, compared with cash used by working

capital components of $10 million in 2024. The change in cash provided by operations in 2025 compared to the

2024 period was primarily due to significant payments made in 2025 that impacted operating cash flow, including

DS Smith transaction costs and severance payments, as well as incentive compensation and other benefit

payments.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**INVESTMENT ACTIVITIES**

Cash used for investment activities, including discontinued operations, totaled $1.0 billion in 2025 compared with

$808 million in 2024. The increase in cash used for investment activities in 2025 compared to 2024 is mainly due to

higher capital expenditures of $936 million, offset by an increase in proceeds from sale of fixed assets of $127

million, proceeds from divestitures, net of transaction costs of $141 million and net cash acquired from acquisitions

of $414 million.

Including discontinued operations, capital expenditures were $1.9 billion in 2025, or 64% of depreciation and

amortization, compared with $921 million in 2024, or 71% of depreciation and amortization. Capital spending as a

percentage of depreciation and amortization, including discontinued operations, was impacted by accelerated

depreciation of $958 million and $233 million for the years ended December 31, 2025 and December 31, 2024,

respectively, related to mill strategic actions and other 80/20 actions.

The following table shows capital expenditures by business segment for the years ended December 31, 2025 and

2024:

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | 2024 |
| Packaging Solutions North America | **$1115** | $710 |
| Packaging Solutions EMEA | **573** | 53 |
| Subtotal | **1688** | 763 |
| Corporate and other (a) | **169** | 158 |
| **Capital Expenditures** | **$1857** | $921 |

---

(a) Includes capital expenditures related to Corporate and GCF.

***Acquisitions*** 

See <u>[Note 7 Acquisitions](#i5ba32aeab3f947f28a9e9ed735c0c7c4_172)</u> of <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> for a discussion of the Company's

acquisitions.

**FINANCING ACTIVITIES**

Financing activities during 2025 included debt issuances of $409 million and reductions of $255 million for a net

increase of $154 million. Financing activities during 2024 included debt issuances of $102 million and reductions of

$141 million.

There were no early debt extinguishments during the years ended December 31, 2025 and December 31, 2024.

Other financing activities during 2025 included the net issuance of approximately 3.7 million shares of treasury

stock, while repurchases of common stock and payments of restricted stock withholding taxes totaled $65 million.

During 2025, no shares of common stock were repurchased under the Company's share repurchase program.

Through December 31, 2025, the Company had repurchased 119.8 million shares at an average price of $46.23, for

a total of approximately $5.5 billion, since the repurchase program began in September 2013. The Company paid

cash dividends totaling $977 million during 2025.

Other financing activities during 2024 included the net issuance of approximately 2.0 million shares of treasury

stock. Repurchases of common stock and payments of restricted stock withholding taxes totaled $23 million. During

2024, no shares of common stock were repurchased under the Company's share repurchase program. Through

December 31, 2024, the Company has repurchased 119.8 million shares at an average price of $46.23, for a total of

approximately $5.5 billion, since the repurchase program began in September 2013. The Company paid cash

dividends totaling $643 million during 2024.

***Interest Rate Swaps***

Our policy is to manage interest cost using a mixture of fixed-rate and variable-rate debt. To manage this risk,

International Paper utilizes interest rate swaps to change the mix of fixed and variable rate debt. During 2020,

International Paper terminated its interest rate swaps with a notional amount of $700 million and maturities ranging

from 2024 to 2026 with an approximate fair value of $85 million. Subsequent to the termination of the interest rate

swaps, the fair value basis adjustment is amortized to earnings as interest income over the same period as a debt

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

premium on the previously hedged debt. The Company had no outstanding interest rate swaps for the years ended

December 31, 2025 and 2024.

***Variable Interest Entities***

Information concerning variable interest entities is set forth in <u>[Note 15 Variable Interest Entities](#i5ba32aeab3f947f28a9e9ed735c0c7c4_193)</u> of <u>[Item 8. Financial](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> 

<u>[Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>.

**LIQUIDITY AND CAPITAL RESOURCES OUTLOOK FOR 2026**

We intend to continue making choices for the use of cash that are consistent with our capital allocation framework to

drive long-term value creation. These include maintaining a strong balance sheet and investment grade credit

rating, and creating value with a continued focus on cost reduction and making organic investments to maintain our

world-class system and strengthen our businesses.

On January 23, 2026, the Company completed the previously announced sale of its GCF business to AIP for $1.5

billion, including the issuance of preferred stock with an aggregate initial liquidation preference of $190 million. The

Company plans to use a portion of the proceeds from the sale of the GCF business to pay down existing debt.

As of December 31, 2025, approximately $2.96 billion remain authorized for repurchase under our share

repurchase program, which has no expiration date. We may repurchase shares under such authorization in open

market transactions (including block trades), privately negotiated transactions or otherwise, subject to prevailing

market conditions, our liquidity requirements, applicable securities laws requirements and other factors. In addition,

we have paid regular quarterly cash dividends and expect to continue to pay regular quarterly cash dividends in the

foreseeable future. Each quarterly dividend is subject to review and approval by our Board of Directors.

***Long-Term Debt***

The following summarizes certain material provisions of our long-term debt facilities and current obligations. The

following description is only a summary, does not purport to be complete and is qualified in its entirety by reference

to the documents governing such indebtedness. For additional information regarding the Company's credit

agreements, outstanding and assumed indebtedness, see <u>[Note 16 Debt and Lines of Credit](#i5ba32aeab3f947f28a9e9ed735c0c7c4_196)</u> of <u>[Item 8. Financial](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> 

<u>[Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>.

At December 31, 2025, International Paper's U.S. dollar denominated credit facilities totaled $1.9 billion, comprised

of a $1.4 billion contractually committed bank credit agreement and up to $500 million available under its

receivables securitization program. Management believes these credit agreements provide sufficient liquidity to

manage operating cash flow variability during the current economic cycle. The credit agreements generally provide

for interest rates at a floating rate index plus a pre-determined margin tied to International Paper's credit rating. At

December 31, 2025, the Company had no borrowings outstanding under the $1.4 billion credit agreement or the

$500 million receivables securitization program. The Company's credit agreements contain no restrictive covenants

other than the financial covenants as described in <u>[Note 16 - Debt and Lines of Credit](#i5ba32aeab3f947f28a9e9ed735c0c7c4_196)</u> of <u>[Item 8. Financial](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> 

<u>[Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>, and the borrowings under the receivables securitization program being limited

by eligible receivables. The Company was in compliance with all its debt covenants at December 31, 2025 and

within the thresholds stipulated. The financial covenants do not restrict any borrowings under the credit agreements.

*Commercial Paper*

In addition to the $1.9 billion capacity under the Company's credit agreements, International Paper has a

commercial paper program with a borrowing capacity of $1.0 billion supported by its $1.4 billion credit agreement.

Under the terms of the Company's commercial paper program, individual maturities on borrowings may vary, but not

exceed one year from the date of issue. Interest bearing notes may be issued either as fixed or floating rate notes.

The Company had no borrowings outstanding as of December 31, 2025 and December 31, 2024 under this

program.

*Assumed Debt*

In 2025, International Paper assumed foreign denominated debt of DS Smith in various currencies.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

*Euro Medium Term Notes* 

Our subsidiary DS Smith initiated consent solicitations with the holders of several series of its outstanding euro- and

sterling denominated notes to approve certain amendments to the notes' terms and related trust deeds (the "Euro

Medium Term Notes"). The amendments were designed to align DS Smith's reporting and covenant framework with

that of International Paper following the acquisition, and to provide greater flexibility for the reorganization of DS

Smith's subsidiaries. As part of the solicitation process, International Paper agreed to provide guarantees of DS

Smith's obligations under each series of the Euro Medium Term Notes. These amendments and guarantees were

implemented in March 2025 through supplemental trust deeds. All principal amounts of the affected Euro Medium

Term Notes remain outstanding.

*Credit and Bank Facilities*

The Company amended and restated its £1.25 billion multi-currency credit facility agreement, its €200 million credit

facility and €60 million committed bank facility. The amendments (i) replaced the Company's standalone financial

reporting requirements with International Paper's financial information; (ii) aligned the facility's financial covenant

with those in International Paper's existing credit facilities; and (iii) updated certain events of default and

undertakings to reflect International Paper's financing framework and to provide additional flexibility for potential

subsidiary reorganization within the International Paper group.

The £1.25 billion multi-currency credit facility allows for British pound sterling, euro and U.S. dollar-denominated

borrowings at floating rates plus a pre-determined margin, with borrowings generally denominated to match the

Company's cashflows. At December 31, 2025, the Company had €975 million and £10 million (approximately $1.2

billion) borrowings outstanding under the credit facility. The Company's credit facility agreement is not subject to any

restrictive covenants other than that International Paper must comply with the same negative covenants as per its

existing credit facilities. IP was in compliance with all its debt covenants at December 31, 2025, and was well below

the thresholds stipulated under the covenants as defined in the credit facility agreement. Further the financial

covenants do not restrict any borrowings under the £1.25 billion credit facility agreement.

The €200 million credit facility agreement provides for interest rates at a fixed rate for each facility. At December 31,

2025, the Company had €163 million (approximately $191 million) borrowings outstanding under the credit facility

agreement.

The credit facility agreements do not impose restrictive covenants other than requiring International Paper to comply

with the same negative covenants applicable to its existing credit facilities. IP was in compliance with all applicable

covenants as of December 31, 2025, and remained well within the thresholds. The financial covenants do not

restrict the Company's ability to borrow under the credit facility agreement.

The €60 million committed bank facility, maturing in 2026, allows for British pound sterling, euro and US dollar-

denominated borrowings. At December 31, 2025, there were no borrowings outstanding under this agreement. The

Company has a £50 million uncommitted bank facility. At December 31, 2025, the Company had €55 million

(approximately $65 million) borrowings outstanding under this agreement.

During the year ended December 31, 2025, the Company had debt reductions of $255 million in 2025, related

primarily to $26 million of capital leases, $27 million of environmental development bonds ("EDB"), $95 million of

industrial development bonds ("IDB") and $61 million of bonds. In addition, during the year ended December 31,

2025, the Company also had debt issuances of $165 million of industrial development bonds. The Company also

borrowed $244 million under its foreign denominated credit facilities during 2025.

***Capital Expenditures***

We increased capital spending in 2025 as the Company accelerated several multi-year investments to support our

80/20 approach, enhance mill productivity, expand capacity in key growth markets, and modernize equipment to

improve safety, reliability and energy efficiency. In North America, these 2025 authorizations include investment of

$250 million to convert a machine at the Riverdale mill in Selma, Alabama to produce containerboard and

construction of a new state-of-the-art sustainable packaging box plant in Waterloo, Iowa.

Capital expenditures for 2026 are planned at approximately $1.95 billion to $2.05 billion, or about 98% to 103% of

depreciation and amortization, reflecting continued execution of these strategic projects. The timing and scope of

planned investments will depend on operational needs and the availability of operating cash flows, and certain

projects may be deferred if cash generation or market conditions weaken.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

International Paper expects to be able to meet projected capital expenditures, service existing debt, meet working

capital and dividend requirements and make common stock and/or debt repurchases for the next 12 months and for

the foreseeable future thereafter with current cash balances and cash from operations, supplemented as required

by its existing credit facilities. The Company will continue to rely on debt and capital markets for the majority of any

necessary long-term funding not provided by operating cash flows. Funding decisions will be guided by our capital

structure planning objectives. The primary goals of the Company's capital structure planning are to maximize

financial flexibility and maintain appropriate levels of liquidity to meet our needs while managing balance sheet debt

and interest expense. We have repurchased, and may continue to repurchase, our common stock (under our

existing share repurchase program) and debt (including through open market purchases, privately negotiated

transactions or otherwise) to the extent consistent with this capital structure planning, and subject to prevailing

market conditions, our liquidity requirements, applicable securities laws requirements and other factors. The

majority of International Paper's debt is accessed through global public capital markets where we have a wide base

of investors.

Maintaining an investment grade credit rating is an important element of International Paper's financing strategy. At

December 31, 2025, the Company held long-term credit ratings of BBB (stable outlook) and Baa2 (stable outlook)

by S&P and Moody's, respectively.

Contractual obligations for future payments under existing debt and lease commitments and purchase obligations at

December 31, 2025, were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *In millions* | 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter |
| Debt maturities (a) | $992 | $2584 | $739 | $381 | $807 | $4328 |
| Operating lease obligations | 245 | 190 | 124 | 72 | 46 | 100 |
| Purchase obligations (b) | 3018 | 661 | 432 | 311 | 263 | 1150 |
| Total (c) | $4255 | $3435 | $1295 | $764 | $1116 | $5578 |

---

*(a)Includes financing lease obligations.*

*(b)Includes fiber supply and other service and supply agreements.* 

*(c)The table above does not reflect: (i) approximately $344 million of unrecognized tax benefits due to the uncertainty regarding the timing* 

*and amount of payment; (ii) $37 million of Deemed Repatriation Transition Tax under the 2017 Tax Cuts and Jobs Act, which will be* 

*settled in 2026; and (iii) $487 million deferred tax liability related to the Temple-Inland timber monetization, which will be settled with the* 

*maturity of the notes in 2027.*

We consider the undistributed earnings of our foreign subsidiaries as of December 31, 2025, to be permanently

reinvested and, accordingly, no U.S. income taxes have been provided thereon (see <u>[Note 13 Income Taxes](#i5ba32aeab3f947f28a9e9ed735c0c7c4_187)</u> of <u>[Item](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> 

<u>[8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>). We do not anticipate the need to repatriate funds to the United

States to satisfy domestic liquidity needs arising in the ordinary course of business, including liquidity needs

associated with our domestic debt service requirements.

***Pension Obligations and Funding***

At December 31, 2025, the projected benefit obligation for the Company's defined benefit plans determined under

U.S. GAAP was approximately $144 million lower than the fair value of plan assets. Plans that are subject to

minimum funding requirements had plan assets of $486 million higher than the projected benefit obligation. Under

current IRS funding rules, the calculation of minimum funding requirements differs from the calculation of the

present value of plan benefits (the "projected benefit obligation") for accounting purposes. Funding contributions

depend on the funding methods selected by the Company. The selected methods allow for the smoothing of asset

values and interest rates used to measure the funding obligations. The Company continually reassesses the

amount and timing of any discretionary contributions and elected not to make any voluntary contributions in 2023,

2024 or 2025. At this time, we do not expect to have any required contributions to our plans in 2026, although the

Company may elect to make future voluntary contributions. The timing and amount of future contributions, which

could be material, will depend on a number of factors, including the actual earnings and changes in values of plan

assets and changes in interest rates.

**<u>[CRITICAL ACCOUNTING POLICIES AND SIGNIFICANT ACCOUNTING ESTIMATES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_106)</u>**

The preparation of financial statements in conformity with U.S. GAAP requires International Paper to establish

accounting policies and to make estimates that affect both the amounts and timing of the recording of assets,

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

liabilities, revenues and expenses. Some of these estimates require subjective judgments about matters that are

inherently uncertain.

Accounting policies whose application has had or is reasonably likely to have a material impact on the reported

results of operations and financial position of International Paper, and that can require a significant level of

estimation or uncertainty by management that affect their application, include the accounting for impairment of long-

lived assets and goodwill, pensions, income taxes and business combinations. Management has discussed the

selection of critical accounting policies and the effect of significant estimates with the Audit and Finance Committee

of the Company's Board of Directors and with its independent registered public accounting firm.

**IMPAIRMENT OF LONG-LIVED ASSETS AND GOODWILL**

Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that

indicate that the carrying value of the assets may not be recoverable. A recoverability test is performed by

comparing the undiscounted cash flows to the carrying value of the assets. If the carrying amount is less than the

undiscounted cash flows, the fair value of the assets is compared to the carrying value to determine if they are

impaired. An impairment of a long-lived asset exists when the asset's carrying amount exceeds its fair value.

In conjunction with the previous announcement and subsequent sale of the Global Cellulose Fibers business to AIP

for $1.5 billion, the Company evaluated the long-lived assets for impairment. As a result, the Company recorded a

net pre-tax charge of $1.07 billion ($805 million after taxes) for the year ended December 31, 2025 due to the

difference between the sales price less estimated selling costs and the carrying value. This non-cash charge is

included in Discontinued Operations, net of taxes in the accompanying consolidated statements of operations.

We perform an annual goodwill impairment as of October 1. Additionally, interim assessments of possible

impairments of goodwill are also made when events or changes in circumstances indicate that the carrying value of

the asset may not be recoverable through future operations. A goodwill impairment exists when the carrying amount

of goodwill exceeds its fair value.

ASU 2011-08, "Intangibles - Goodwill and Other," allows entities testing goodwill for impairment the option of

performing a qualitative assessment before performing the quantitative goodwill impairment test. If a qualitative

assessment is performed, an entity is not required to perform the quantitative goodwill impairment test unless the

entity determines that, based on that qualitative assessment, it is more likely than not that its fair value is less than

its carrying value.

The January 31, 2025 acquisition of DS Smith added approximately $4.3 billion of goodwill, of which $3.4 billion was

allocated to the PS EMEA reporting unit and $0.9 billion was related to the PS NA reporting unit.

The Company completed its annual goodwill impairment testing for the PS NA and PS EMEA reporting units as of

October 1, 2025. Based on this assessment, no impairment was identified for either reporting unit.

Later in the fourth quarter of 2025, the Company, as part of its annual strategic review, identified a triggering event

driven by its updated strategic plan impacted by macroeconomic and industry outlooks, as well as the Company's

evaluation of a potential separation into two independent, publicly traded companies. In response, the Company

performed a quantitative goodwill impairment test for the PS NA and PS EMEA reporting units, comparing each

reporting unit's carrying value to its estimated fair value.

Estimated fair values were determined using discounted future cash flows and market multiples, which use inputs

that are classified within Level 2 and Level 3 of the fair value hierarchy. The discounted cash flow approach requires

significant management judgments, including assumptions related to forecasts of future revenues, operating

margins, and discount rates. The market-multiple approach under the guideline public company method similarly

requires significant assumptions regarding adjusted EBITDA multiples.

As of December 31, 2025, the quantitative impairment test concluded that the carrying amount of the PS EMEA

reporting unit exceeded its estimated fair value. As a result, the Company recorded a goodwill impairment charge of

approximately $2.47 billion, which is reflected in Impairment of goodwill in the accompanying consolidated

statement of operations. After the impairment charge the carrying value of the PS EMEA reporting unit approximates

fair value. The estimated fair value of the PS EMEA reporting unit is sensitive to the underlying assumptions and a

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

material change in any one, or combination of assumptions, could result in material future goodwill impairment. The

carrying amount of the PS NA reporting unit did not exceed its estimated fair value, and no impairment was

recorded for that reporting unit.

**PENSION BENEFIT OBLIGATIONS**

The calculation of the pension benefit obligation and corresponding expense amounts are determined annually, with

involvement of International Paper's consulting actuary, and are dependent upon various assumptions including the

expected long-term rate of return on plan assets, discount rates, projected future compensation increases and

mortality rates.

The calculations of pension benefit obligations and expense require decisions about a number of key assumptions

that can significantly affect liability and expense amounts, including the expected long-term rate of return on plan

assets and the discount rate used to calculate plan liabilities.

Benefit obligations and fair values of plan assets as of December 31, 2025, for International Paper's pension plan

were as follows:

---

| | | |
|:---|:---|:---|
| *In millions* | Benefit<br>Obligation<br>| Fair Value of<br>Plan Assets<br>|
| U.S. qualified pension | **$8116** | **$8482** |
| U.S. nonqualified pension | **218** | **—** |
| Non-U.S. pension | **1116** | **1112** |

---

The table below shows the discount rate used by International Paper to calculate U.S. pension obligations for the

years shown:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | 2024 | 2023 |
| U.S. Discount rate  | **5.53%** | 5.68% | 5.10% |
| Non-U.S. Discount rate | **5.11%-5.16%** | 4.99% | 5.88% |

---

International Paper determines the actuarial assumptions to calculate liability information as of December 31 each

year or more frequently if required and pension expense for the following year. International Paper consults with our

third-party actuary in determining these actuarial assumptions. The expected long-term rate of return on plan assets

is based on projected rates of return for current asset classes in the plan's investment portfolio. The discount rate

assumption was determined based on a hypothetical settlement portfolio selected from a universe of high-quality

corporate bonds.

The expected long-term rate of return on U.S. pension plan assets used to determine net periodic cost for the year

ended December 31, 2025 was 7.00%.

Decreasing the expected long-term rate of return on U.S. plan assets by an additional 0.25% would increase 2026

pension expense by approximately $21 million, while a decrease of 0.25% in the discount rate would increase

pension expense by approximately $13 million.

Actual rates of return earned on U.S. pension plan assets for each of the last 10 years were:

---

| | | | |
|:---|:---|:---|:---|
| **Year** | **Return** | **Year** | **Return** |
| **2025** | **11.8%** | 2020 | 24.7% |
| 2024 | (0.1)% | 2019 | 23.9% |
| 2023 | 7.3% | 2018 | (3.0)% |
| 2022 | (22.0)% | 2017 | 19.3% |
| 2021 | 7.7% | 2016 | 7.1% |

---

ASC 715, "Compensation – Retirement Benefits," provides for delayed recognition of actuarial gains and losses,

including amounts arising from changes in the estimated projected plan benefit obligation due to changes in the

assumed discount rate, differences between the actual and expected return on plan assets, and other assumption

changes. These net gains and losses are recognized in pension expense prospectively over a period that

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

approximates the average remaining service period of active employees expected to receive benefits under the

plans to the extent that they are not offset by gains and losses in subsequent years.

The increase in 2025 pension expense primarily reflects lower asset returns, higher interest cost due to a higher

discount rate, and the impact of curtailment and settlement losses.

Assuming that discount rates, expected long-term returns on plan assets and rates of future compensation

increases remain the same as of December 31, 2025, projected future net periodic pension plan expense (income)

would be as follows:

---

| | | |
|:---|:---|:---|
| *In millions* | 2027 | 2026 |
| Pension expense (income) |  |  |
| U.S. plans | $(27) | $(14) |
| Non-U.S. plans | (6) | (6) |
| **Net (income) expense** | $(33) | $(20) |

---

The Company estimates that it will record net pension income of approximately $14 million for its U.S. defined

benefit plans in 2026, compared to expense of $42 million in 2025.

The market value of plan assets for International Paper's U.S. qualified pension plan at December 31, 2025 totaled

approximately $8.5 billion, consisting of approximately 64% hedging assets and 36% return seeking assets. The

Company's funding policy for its qualified pension plan is to contribute amounts sufficient to meet legal funding

requirements, plus any additional amounts that the Company may determine to be appropriate considering the

funded status of the plan, tax deductibility, the cash flows generated by the Company, and other factors. The

Company continually reassesses the amount and timing of any discretionary contributions and could elect to make

voluntary contributions in the future. There were no required contributions to the U.S. qualified plan in 2025. The

nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $49 million for the

year ended December 31, 2025.

**INCOME TAXES**

International Paper records its global tax provision based on the respective tax rules and regulations for the

jurisdictions in which it operates. Where the Company believes that a tax position is supportable for income tax

purposes, the item is included in its income tax returns. Where treatment of a position is uncertain, liabilities are

recorded based upon the Company's evaluation of the "more likely than not" outcome considering technical merits

of the position based on specific tax regulations and facts of each matter. Changes to recorded liabilities are only

made when an identifiable event occurs that changes the likely outcome, such as settlement with the relevant tax

authority, the expiration of statutes of limitation for the subject tax year, change in tax laws, or recent court cases

that are relevant to the matter. Accrued interest related to these uncertain tax positions is recorded in our

consolidated statement of operations in Interest expense, net. The Company's uncertain tax positions were $384

million and $204 million at December 31, 2025 and 2024, respectively.

Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will

not be realized. Significant judgment is required in assessing the need for and magnitude of appropriate valuation

allowances against deferred tax assets. This assessment is completed by tax jurisdiction and relies on both positive

and negative evidence available, with significant weight placed on recent financial results. Cumulative reported pre-

tax income is considered objectively verifiable positive evidence of our ability to generate positive pre-tax income in

the future. In accordance with GAAP, when there is a recent history of pre-tax losses, there is little or no weight

placed on forecasts for purposes of assessing the recoverability of our deferred tax assets. When necessary, we

use systematic and logical methods to estimate when deferred tax liabilities will reverse and generate taxable

income and when deferred tax assets will reverse and generate tax deductions. Assumptions, judgment, and the

use of estimates are required when scheduling the reversal of deferred tax assets and liabilities, and the exercise is

inherently complex and subjective. The realization of these assets is dependent on generating future taxable

income, as well as successful implementation of various tax planning strategies. The Company's valuation

allowance was $1.5 billion and $1.2 billion at December 31, 2025 and 2024, respectively.

While International Paper believes that these judgments and estimates are appropriate and reasonable under the

circumstances, actual resolution of these matters may differ from recorded estimated amounts.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**BUSINESS COMBINATIONS**

We account for acquisitions under ASC 805, Business Combinations, which requires allocating the purchase price

to the fair values of assets acquired and liabilities assumed as of the acquisition date. This process involves

significant estimates and assumptions, particularly for property, plant and equipment and identifiable intangible

assets such as customer relationships and lists, trade names, and technology. Key inputs include forecasted cash

flows, discount rates, market data, and other valuation factors. These estimates are inherently judgmental and

subject to change as additional information becomes available during the measurement period (up to 12 months

after closing).

On January 31, 2025, we completed the combination with DS Smith for $9.9 billion. The purchase price allocation

resulted in goodwill for the excess of purchase price over the fair value of net assets acquired. The fair value

assigned to the assets and liabilities acquired above were measured using Level 2 and Level 3 inputs. The

estimated fair value of inventory was determined using the Comparative Sales and Replacement Cost methods.

Fair value estimates related to the trade name and patents identified intangible assets were determined using the

Relief from Royalty method. The fair value estimates related to customer relationships and lists identified intangible

assets were determined using the Multi-Period Excess Earnings method. The plants, properties and equipment,

specifically the machinery and equipment and buildings and improvements, were valued using either the indirect or

direct methods of the Cost Approach, while the land was valued using the Sales Comparison Approach. We have

finalized the fair values of property, plant and equipment, intangible assets, and certain tax-related items, with

assistance from third-party valuation specialists. See <u>[Note 1](#i5ba32aeab3f947f28a9e9ed735c0c7c4_154)</u> and <u>[Note 7](#i5ba32aeab3f947f28a9e9ed735c0c7c4_172)</u> of <u>[Item 8. Financial Statements and](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> 

<u>[Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> for additional details.

**<u>[LEGAL PROCEEDINGS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_109)</u>**

Information concerning certain legal proceedings involving the Company is set forth in <u>[Item 8. Financial Statements](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> 

<u>[and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>, which is incorporated by reference herein. Except as set forth in <u>[Note 14 Commitments](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u> 

<u>[and Contingent Liabilities](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u>, the Company is not subject to any administrative or judicial proceeding arising under any

federal, state or local provisions that have been enacted or adopted regulating the discharge of materials into the

environment or primarily for the purpose of protecting the environment that is likely to result in monetary sanctions

of $1 million or more.

**<u>[RECENT ACCOUNTING DEVELOPMENTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_112)</u>**

See <u>[Note 2 Recent Accounting Developments](#i5ba32aeab3f947f28a9e9ed735c0c7c4_157)</u> of <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> for a

discussion of new accounting pronouncements.

**<u>[EFFECT OF INFLATION](#i5ba32aeab3f947f28a9e9ed735c0c7c4_115)</u>** 

Inflationary increases in certain input costs, such as energy, wood fiber and chemical costs, can impact the

Company's operating results as can general inflationary conditions, including labor market conditions, economic

activity, consumer behavior, and supply shortages and disruptions. During 2025, inflationary pressures stabilized

and moderated over the year and did not have a significant impact on our operating results. The Company's

operating results are more strongly influenced by economic supply and demand factors in specific markets due to

the impact on sales prices and volumes and exchange rate fluctuations when compared to inflationary factors.

**<u>[FOREIGN CURRENCY EFFECTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_118)</u>**

International Paper has operations in a number of countries. Its operations in those countries also export to, and

compete with imports from other regions. As such, currency movements can have a number of direct and indirect

impacts on the Company's financial statements. Direct impacts include the translation of international operations'

local currency financial statements into U.S. dollars and the remeasurement impact associated with non-functional

currency financial assets and liabilities. Indirect impacts include the change in competitiveness of imports into, and

exports out of, the United States (and the impact on local currency pricing of products that are traded

internationally). In general, a weaker U.S. dollar and stronger local currency is beneficial to International Paper. The

currencies that have the most impact are the euro and pound sterling.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[MARKET RISK](#i5ba32aeab3f947f28a9e9ed735c0c7c4_121)</u>**

We use financial instruments, including fixed and variable rate debt, to finance operations, for capital spending

programs and for general corporate purposes. Additionally, financial instruments, including various derivative

contracts, are used to hedge exposures to interest rate, commodity and foreign currency risks. We do not use

financial instruments for trading purposes. Information related to International Paper's debt obligations is included in

<u>[Note 16 Debt and Lines of Credit](#i5ba32aeab3f947f28a9e9ed735c0c7c4_196)</u> of <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>.

The fair value of our debt and financial instruments varies due to changes in market interest and foreign currency

rates and commodity prices since the inception of the related instruments. We assess this market risk utilizing a

sensitivity analysis. The sensitivity analysis measures the potential loss in earnings, fair values and cash flows

based on a hypothetical 10% change (increase and decrease) in interest and currency rates and commodity prices.

**INTEREST RATE RISK**

Our exposure to market risk for changes in interest rates relates primarily to short- and long-term debt obligations

and investments in marketable securities. We invest in investment-grade securities issued by financial institutions

and in AAA-rated money market mutual funds, while limiting our exposure to any one issuer or fund. Our

investments in marketable securities at December 31, 2025 and 2024 are stated at cost, which approximates

market due to their short-term nature. At December 31, 2025, our interest rate risk exposure related to these

investments was not material.

We issue fixed and floating rate debt in a proportion that management deems appropriate based on current and

projected market conditions. Derivative instruments, such as interest rate swaps, may be used to execute this

strategy. At December 31, 2025 and 2024, the fair value of the net liability of financial instruments with exposure to

interest rate risk was approximately $7.1 billion and $4.0 billion, respectively. The potential increase in fair value

resulting from a 10% adverse shift in quoted interest rates would have been approximately $895 million and $206

million at December 31, 2025 and 2024, respectively.

**COMMODITY PRICE RISK**

The objective of our commodity exposure management is to minimize volatility in earnings due to large fluctuations

in the price of commodities. Commodity swap or forward purchase contracts may be used to manage risks

associated with market fluctuations in energy prices. At December 31, 2025 and 2024, the net fair value of these

contracts was $21 million liability and $3 million asset. The potential loss in fair value from a 10% adverse change in

quoted commodity prices for these contracts would have been approximately $40 million and $2 million at

December 31, 2025 and 2024, respectively.

**FOREIGN CURRENCY RISK**

International Paper transacts business in many currencies and is also subject to currency exchange rate risk

through investments and businesses owned and operated in foreign countries. The currencies that have the most

impact are the euro and pound sterling. Our objective in managing the associated foreign currency risks is to

minimize the effect of adverse exchange rate fluctuations on our after-tax cash flows as well as financial statement

impact. We address these risks on as needed basis by entering into cross-currency interest rate swaps, foreign

exchange contracts, or foreign currency denominated debt designated as net investment hedges.

At December 31, 2025 and 2024, the net fair value of foreign currency derivative instruments was immaterial. The

potential loss in fair value for such financial instruments from a 10% adverse change in quoted foreign currency

exchange rates was also immaterial.

**<u>[ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#i5ba32aeab3f947f28a9e9ed735c0c7c4_124)</u>**

See the preceding discussion regarding market risk.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>**

**REPORT OF MANAGEMENT ON:**

**Financial Statements**

The management of International Paper Company is responsible for the preparation of the consolidated financial

statements in this Annual Report on Form 10-K. The consolidated financial statements have been prepared using

accounting principles generally accepted in the United States of America considered appropriate in the

circumstances to present fairly the Company's consolidated financial position, results of operations and cash flows

on a consistent basis. Management has also prepared the other information in this Annual Report on Form 10-K and

is responsible for its accuracy and consistency with the consolidated financial statements.

As can be expected in a complex and dynamic business environment, some financial statement amounts are based

on estimates and judgments. Even though estimates and judgments are used, measures have been taken to

provide reasonable assurance of the integrity and reliability of the financial information contained in this Annual

Report on Form 10-K. We have formed a Disclosure Committee to oversee this process.

The accompanying consolidated financial statements have been audited by the independent registered public

accounting firm Deloitte & Touche LLP (PCAOB ID No. 34). During its audits, Deloitte & Touche LLP was given

unrestricted access to all financial records and related data, including minutes of all meetings of shareholders and

the Board of Directors and all committees of the Board of Directors. Management believes that all representations

made to the independent auditors during their audits were valid and appropriate.

**Internal Control Over Financial Reporting**

The management of International Paper Company is also responsible for establishing and maintaining adequate

internal control over financial reporting (as defined in Rules (13a-15(e) and 15d-15(e) under the Exchange Act).

ICFR is the process designed by, or under the supervision of, our principal executive officer and principal financial

officer, and effected by our Board of Directors, management and other personnel to provide reasonable assurance

regarding the reliability of financial reporting and the preparation of financial statements for external purposes. All

internal control systems have inherent limitations, including the possibility of circumvention and overriding of

controls, and therefore can provide only reasonable assurance of achieving the designed control objectives. The

Company's internal control system is supported by written policies and procedures, contains self-monitoring

mechanisms, and is audited by our internal audit function. Appropriate actions are taken by management to correct

deficiencies as they are identified. Our procedures for financial reporting include the active involvement of senior

management, our Audit and Finance Committee and our staff of highly qualified financial and legal professionals.

The Company has assessed the effectiveness of its internal control over financial reporting as of December 31,

2025. In making this assessment, it used the criteria described in "Internal Control – Integrated Framework (2013)"

issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on this

assessment, management believes that, as of December 31, 2025, the Company's internal control over financial

reporting was effective.

In accordance with SEC guidance, management's assessment of the effectiveness of the Company's internal

control over financial reporting as of December 31, 2025 excluded DS Smith, which was acquired by the Company

during the last fiscal year on January 31, 2025. DS Smith constituted approximately 43% of the Company's total

assets as of December 31, 2025 and approximately 33% of the Company's total net sales for the year ended

December 31, 2025, respectively.

The Company's independent registered public accounting firm, Deloitte & Touche LLP, has issued its report on the

effectiveness of the Company's internal control over financial reporting.

**Internal Control Environment And Board Of Directors Oversight**

Our internal control environment includes an enterprise-wide attitude of integrity and control consciousness that

establishes a positive "tone at the top." This is exemplified by our ethics program that includes long-standing

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principles and policies on ethical business conduct that require employees to maintain the highest ethical and legal

standards in the conduct of International Paper business, which have been distributed to all employees. The

Company provides a toll-free telephone helpline whereby any employee may anonymously report suspected

violations of law or International Paper's policy; and maintains an office of ethics and business practice. The internal

control system further includes careful selection and training of supervisory and management personnel,

appropriate delegation of authority and division of responsibility, dissemination of accounting and business policies

throughout International Paper, and an extensive program of internal audits with management follow-up.

The Board of Directors, assisted by the Audit and Finance Committee, monitors the integrity of the Company's

financial statements and financial reporting procedures, the performance of the Company's internal audit function

and independent auditors, and other matters set forth in its charter. The Audit and Finance Committee, which

consists of independent directors, meets regularly with representatives of management, and with the independent

auditors and the Internal Auditor, with and without management representatives in attendance, to review their

activities. The Audit and Finance Committee Charter takes into account the New York Stock Exchange rules relating

to audit committees and the SEC rules and regulations promulgated as a result of the Sarbanes-Oxley Act of 2002.

The Audit and Finance Committee has reviewed and discussed the consolidated financial statements for the year

ended December 31, 2025, including critical accounting policies and significant management judgments, with

management and the independent auditors. The Audit and Finance Committee's report recommending the inclusion

of such financial statements in this Annual Report on Form 10-K will be set forth in our Proxy Statement.

![AndySilvernailSignature.jpg](ip-20251231_g3.jpg)

ANDREW K. SILVERNAIL

CHAIRMAN AND CHIEF EXECUTIVE OFFICER

![Lance Signature.jpg](ip-20251231_g4.jpg)

LANCE T. LOEFFLER

SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#i5ba32aeab3f947f28a9e9ed735c0c7c4_133)</u>**

To the shareholders and the Board of Directors of International Paper Company:

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated balance sheets of International Paper Company and subsidiaries

(the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations,

comprehensive income (loss), changes in equity, and cash flows for each of the three years in the period ended

December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the

financial statements present fairly, in all material respects, the financial position of the Company as of December 31,

2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended

December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United

States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on

criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring

Organizations of the Treadway Commission and our report dated February 27, 2026, expressed an unqualified

opinion on the Company's internal control over financial reporting.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an

opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with

the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal

securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the

PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan

and perform the audit to obtain reasonable assurance about whether the financial statements are free of material

misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of

material misstatement of the financial statements, whether due to error or fraud, and performing procedures that

respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

disclosures in the financial statements. Our audits also included evaluating the accounting principles used and

significant estimates made by management, as well as evaluating the overall presentation of the financial

statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters** 

The critical audit matters communicated below are matters arising from the current-period audit of the financial

statements that were communicated or required to be communicated to the Audit and Finance Committee and that

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially

challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way

our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit

matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which

they relate.

***Retirement Plans — Fair value of other investments — Refer to Note 19 to the financial statements***

*Critical Audit Matter Description*

As of December 31, 2025, the Company's US Pension Plan held approximately $2.2 billion in investments whose

reported value is determined based on net asset value ("NAV"). The strategic asset allocation policy prescribed by

the Company's US Pension Plan includes permissible investments in certain hedge funds, private equity funds, and

real estate funds whose reported values are determined based on the estimated NAV of each investment.

These NAVs are generally determined by the US Pension Plan's third-party administrators or fund managers and

are subject to review and oversight by management of the Company and its third-party investment advisors.

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Given a lack of a readily determinable value of these investments and the subjective nature of the valuation

methodologies and unobservable inputs used in these methodologies, auditing the NAV associated with these

investments requires a high degree of auditor judgment and an increased extent of effort.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to the determination of NAV associated with the Company's US Pension Plan's

investments in hedge funds, private equity funds, and real estate funds included the following, among others:

• We tested the effectiveness of controls over the Company's determination and evaluation of NAV, including

those related to the reliability of NAVs reported by third-party administrators and fund managers.

• We inquired of management and the investment advisors regarding changes to the investment portfolio and

investment strategies.

• We obtained a confirmation from the third-party custodian as of December 31, 2025 of all individual

investments held in trust for the US Pension Plan to confirm the existence of each individual asset held in

trust.

• For selected investment funds with a fiscal year end of December 31, we performed a retrospective review

in which we compared the estimated fair value recorded by the Company in the December 31, 2024

financial statements, to the actual fair value of the fund (using the per-share NAV disclosed in the fund's

subsequently issued audited financial statements), to evaluate the appropriateness of management's

estimation process.

• We rolled forward the valuation from selected funds' most recently audited financial statements to

December 31, 2025. This roll forward procedure included consideration of the Company's transactions in

the fund during the period, as well as an estimate of the funds' returns based on an appropriate,

independently obtained benchmark or index. We then compared our independent fund valuation estimate to

the December 31, 2025, balance recorded by the Company. For certain selected funds, our roll forward

procedures included alternative procedures, such as inspecting trust statements for observable transactions

near year-end to compare to the estimated fair value.

• For certain investments, we inquired of management to understand year-over-year changes in the fund

manager's estimate of NAV and compared the fund's return on investment to other available qualitative and

quantitative information.

***Goodwill – Packaging Solutions EMEA – Refer to Notes 1 and 12 to the financial statements***

*Critical Audit Matter Description*

The Company's evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit

to its carrying value annually or whenever events or changes in circumstances indicate that an evaluation should be

completed. The Company estimates the fair value of its reporting units using income and market approaches. The

estimate of the fair value using the income approach requires management to make significant estimates and

assumptions related to forecasts of future revenues and operating margins, and discount rates. The determination

of the fair value using the market approach requires management to make significant assumptions related to

earnings before interest, taxes, depreciation, and amortization ("EBITDA") multiples for guideline public companies.

Changes to the assumptions and estimates may result in a significantly different estimate of the fair value of the

reporting units, which could result in a different assessment of the recoverability of goodwill or the impairment

amount of goodwill.

During the fourth quarter of 2025, the Company identified a triggering event as part of its annual strategic review,

driven by updated macroeconomic and industry outlooks, as well as the Company's evaluation of a potential

separation into two independent, publicly traded companies. We identified the assessment of goodwill for

impairment for Packaging Solutions EMEA ("PS EMEA") during the fourth quarter as a critical audit matter because

of the significant estimates and assumptions management made to estimate the fair value of the reporting unit, and

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the sensitivity of the estimate to changes in the assumptions, specifically the forecasts of future revenues and

operating margins, and the discount rate used in the income approach; and the selection of EBITDA multiples of

guideline public companies in the market approach. This required a high degree of auditor judgment and an

increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures

to evaluate the reasonableness of management's estimates and assumptions.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to forecasts of future revenues and operating margins, and the selection of the

discount rate, and EBITDA multiples of guideline public companies for the PS EMEA reporting unit, included the

following, among others:

• We tested the effectiveness of controls over management's goodwill impairment evaluation, including those

over the determination of the fair value of the PS EMEA reporting unit, such as controls related to

management's forecasts of future revenues and operating margins and selection of the discount rate and

EBITDA multiples of guideline public companies.

• We evaluated the reasonableness of management's forecasts of future revenues and operating margins of

PS EMEA by comparing the forecasts to (1) forecasted information in industry reports, market data, and

guideline public company information, (2) internal communications to management and the board of

directors, and (3) external communications made by management to analysts and investors.

• With the assistance of our fair value specialists, we evaluated the reasonableness of the selection of the

discount rate and EBITDA multiples of guideline public companies, by:

▪Testing the source information underlying the determination of the discount rate, testing the

mathematical accuracy of the calculation, and developing a range of independent estimates and

comparing those to the discount rate selected by management.

▪Comparing the reporting unit's growth and profitability to the guideline public companies selected,

testing the source information underlying the determination of the EBITDA multiples, developing a

range of independent estimates and comparing those to the EBITDA multiples selected by

management, and testing the mathematical accuracy of the calculation.

***Business Combinations – Acquisition of DS Smith – Valuation of Customer Relationships and Lists – Refer*** 

***to Note 1 and Note 7 to the financial statements*** 

*Critical Audit Matter Description*

The Company completed the acquisition of DS Smith for $9.9 billion on January 31, 2025. The Company allocates

the total consideration of the assets acquired and liabilities assumed based on their estimated fair value as of the

business combination date. The identifiable intangible assets acquired in connection with the acquisition of DS

Smith included customer relationships and lists of $3.4 billion. Management estimated the fair value of the customer

relationships and lists intangible asset using the multi-period excess earnings method, which is a specific

discounted cash flow method. The fair value determination of the customer relationships and lists required

management to make significant estimates and assumptions related to forecasts of future revenues and operating

margins, and selection of the customer attrition rate and discount rate.

We identified the customer relationships and lists intangible asset as a critical audit matter because there was a

high degree of auditor judgment and extent of effort involved in applying audit procedures and evaluating the

significant assumptions related to forecasts of future revenues and operating margins, and the selection of customer

attrition rate and discount rate, including the need to involve our fair value specialists.

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*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to the forecasts of future revenues and operating margins, and the selection of the

customer attrition rate and discount rate for the customer relationships and lists intangible asset included the

following, among others:

• We tested the effectiveness of controls over the fair value of the customer relationships and lists intangible

asset, including management's controls over the forecasts of future revenues and operating margins, and

selection of the customer attrition rate and discount rate.

• We evaluated the reasonableness of management's forecasts of future revenues and operating margins by

comparing the projections to forecasted information in industry reports and companies in its peer group.

• With the assistance of our fair value specialists, we evaluated the reasonableness of the (1) mathematical

accuracy of the valuation for customer relationships and lists intangible asset, and (2) the following

significant valuation assumptions:

▪Customer attrition rate by testing the source information underlying the determination of the rate

and testing the mathematical accuracy of the calculations.

▪Discount rate by developing a range of independent estimates and comparing those to the discount

rate selected by management.

/s/ Deloitte & Touche LLP

Memphis, Tennessee

February 27, 2026

We have served as the Company's auditor since 2002.

**<u>[REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#i5ba32aeab3f947f28a9e9ed735c0c7c4_133)</u>**

To the shareholders and the Board of Directors of International Paper Company:

**Opinion on Internal Control over Financial Reporting**

We have audited the internal control over financial reporting of International Paper Company and subsidiaries (the

"Company") as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework

(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion,

the Company maintained, in all material respects, effective internal control over financial reporting as of

December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by

COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United

States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2025, of the

Company and our report dated February 27, 2026, expressed an unqualified opinion on those financial statements.

As described in the Report of Management on Internal Control over Financial Reporting, management excluded

from its assessment the internal control over financial reporting at DS Smith, which was acquired on January 31,

2025, and whose financial statements constitute 43% of total assets and 33% of total net sales of the consolidated

financial statement amounts as of and for the year ended December 31, 2025. Accordingly, our audit did not include

the internal control over financial reporting at DS Smith.

**Basis for Opinion**

The Company's management is responsible for maintaining effective internal control over financial reporting and for

its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report

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of Management on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the

Company's internal control over financial reporting based on our audit. We are a public accounting firm registered

with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the

PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting

was maintained in all material respects. Our audit included obtaining an understanding of internal control over

financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and

operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we

considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance

regarding the reliability of financial reporting and the preparation of financial statements for external purposes in

accordance with generally accepted accounting principles. A company's internal control over financial reporting

includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,

accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable

assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance

with generally accepted accounting principles, and that receipts and expenditures of the company are being made

only in accordance with authorizations of management and directors of the company; and (3) provide reasonable

assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's

assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may

become inadequate because of changes in conditions, or that the degree of compliance with the policies or

procedures may deteriorate.

/s/ Deloitte & Touche LLP

Memphis, Tennessee

February 27, 2026

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**<u>[CONSOLIDATED STATEMENT OF OPERATIONS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_136)</u>**

---

| | | | |
|:---|:---|:---|:---|
| *In millions, except per share amounts, for the years ended December 31* | **2025** | 2024 | 2023 |
| **NET SALES** | **$23634** | $15835 | $16033 |
| **COSTS AND EXPENSES** |  |  |  |
| Cost of products sold  | **16637** | 11397 | 11512 |
| Selling and administrative expenses | **2050** | 1703 | 1257 |
| Depreciation and amortization  | **2747** | 851 | 1146 |
| Distribution expenses | **2000** | 1180 | 1240 |
| Taxes other than payroll and income taxes | **210** | 119 | 127 |
| Restructuring charges, net | **626** | 103 | 65 |
| Impairment of goodwill | **2467** |  |  |
| Net (gains) losses on sales and impairments of businesses | **(25)** |  |  |
| Net (gains) losses on sales and impairments of assets | **(70)** | (59) |  |
| Interest expense, net | **372** | 214 | 230 |
| Non-operating pension (income) expense | **(12)** | (42) | 54 |
| **EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY** <br>**EARNINGS (LOSSES)**<br>| **(3368)** | 369 | 402 |
| Income tax provision (benefit) | **(533)** | (361) | 68 |
| Equity earnings (loss), net of taxes | **(3)** | (5) | (21) |
| **EARNINGS (LOSS) FROM CONTINUING OPERATIONS** | **(2838)** | 725 | 313 |
| Discontinued operations, net of taxes | **(678)** | (168) | (25) |
| **NET EARNINGS (LOSS)** | **(3516)** | 557 | 288 |
| **BASIC EARNINGS (LOSS) PER SHARE** |  |  |  |
| Earnings (loss) from continuing operations | **$(5.61)** | $2.09 | $0.90 |
| Discontinued operations | **(1.34)** | (0.49) | (0.07) |
| Net earnings (loss) | **$(6.95)** | $1.60 | $0.83 |
| **DILUTED EARNINGS (LOSS) PER SHARE** |  |  |  |
| Earnings (loss) from continuing operations | **$(5.61)** | $2.05 | $0.89 |
| Discontinued operations | **(1.34)** | (0.48) | (0.07) |
| Net earnings (loss) | **$(6.95)** | $1.57 | $0.82 |

---

*The accompanying notes are an integral part of these financial statements.*

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**<u>[CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)](#i5ba32aeab3f947f28a9e9ed735c0c7c4_139)</u>**

---

| | | | |
|:---|:---|:---|:---|
| *In millions for the years ended December 31* | **2025** | 2024 | 2023 |
| **NET EARNINGS (LOSS)** | **$(3516)** | $557 | $288 |
| **OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX** |  |  |  |
| Amortization of pension and postretirement prior service costs and net loss: |  |  |  |
| U.S. plans (less tax of $24, $22 and $29) | **75** | 69 | 87 |
| Non-U.S. plans (less tax of $0, $0 and $0) | **—** |  | (1) |
| Pension and postretirement liability adjustments: |  |  |  |
| U.S. plans (less tax of $46, $(33) and $(56)) | **142** | (102) | (170) |
| Non-U.S. plans (less tax of $(1), $(1) and $0) | **(4)** | (3) | 3 |
| Change in cumulative foreign currency translation adjustment (less tax of $0, $0 and $0) | **1032** | (121) | 441 |
| Net gains/(losses) on cash flow hedging derivatives: |  |  |  |
| Net gains/(losses) on cash flow hedging derivatives (less tax of $16, $0, and $0) | **(69)** |  |  |
| Reclassification adjustment for (gains) losses included in net earnings (losses) (less tax of $5, <br>$0, and $0)<br>| **18** |  |  |
| **TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX** | **1194** | (157) | 360 |
| **COMPREHENSIVE INCOME (LOSS)** | **$(2322)** | $400 | $648 |

---

*The accompanying notes are an integral part of these financial statements.*

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**<u>[CONSOLIDATED BALANCE SHEET](#i5ba32aeab3f947f28a9e9ed735c0c7c4_142)</u>** 

---

| | | |
|:---|:---|:---|
| *In millions, except per share amounts, at December 31* | **2025** | 2024 |
| **ASSETS** |  |  |
| Current Assets |  |  |
| Cash and temporary investments | **$1145** | $1062 |
| Accounts and notes receivable (less allowances of $70 in 2025 and $30 in 2024) | **3791** | 2402 |
| Contract assets | **635** | 362 |
| Assets held for sale | **1800** | 1016 |
| Inventories | **2012** | 1486 |
| Other current assets | **723** | 96 |
| Total Current Assets | **10106** | 6424 |
| Plants, Properties and Equipment, net | **14443** | 7916 |
| Goodwill | **5326** | 3038 |
| Intangibles, net | **4043** | 72 |
| Long-Term Financial Assets of Variable Interest Entities (Note 15) | **2349** | 2331 |
| Right of Use Assets | **697** | 402 |
| Overfunded Pension Plan Assets | **486** | 93 |
| Long-Term Assets Held For Sale | **—** | 1876 |
| Deferred Charges and Other Assets | **514** | 648 |
| **TOTAL ASSETS** | **$37964** | $22800 |
| **LIABILITIES AND EQUITY** |  |  |
| Current Liabilities |  |  |
| Notes payable and current maturities of long-term debt | **$992** | $191 |
| Accounts payable | **3902** | 2110 |
| Accrued payroll and benefits | **834** | 680 |
| Liabilities held for sale | **502** | 344 |
| Other current liabilities | **1669** | 933 |
| Total Current Liabilities | **7899** | 4258 |
| Long-Term Debt | **8839** | 5362 |
| Deferred Income Taxes | **1898** | 1028 |
| Long-Term Nonrecourse Financial Liabilities of Variable Interest Entities (Note 15) | **2127** | 2120 |
| Long-Term Lease Obligations | **486** | 269 |
| Underfunded Pension Benefit Obligations | **316** | 232 |
| Postretirement and Postemployment Benefit Obligation | **133** | 133 |
| Long-Term Liabilities Held For Sale | **—** | 125 |
| Other Liabilities | **1439** | 1100 |
| Commitments and Contingent Liabilities (Note 14) |  |  |
| Equity |  |  |
| Common stock $1 par value, 2025 - 627.0 shares and 2024 - 448.9 shares | **627** | 449 |
| Paid-in capital | **14414** | 4732 |
| Retained earnings | **4885** | 9393 |
| Accumulated other comprehensive loss | **(528)** | (1722) |
|  | **19398** | 12852 |
| Less: Common stock held in treasury, at cost, 2025 – 99.0 shares and 2024 – 101.5 shares | **4571** | 4679 |
| Total Equity | **14827** | 8173 |
| **TOTAL LIABILITIES AND EQUITY** | **$37964** | $22800 |

---

*The accompanying notes are an integral part of these financial statements.*

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[CONSOLIDATED STATEMENT OF CASH FLOWS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_145)</u>**

---

| | | | |
|:---|:---|:---|:---|
| *In millions for the years ended December 31* | **2025** | 2024 | 2023 |
| **OPERATING ACTIVITIES** |  |  |  |
| Net earnings (loss)  | **$(3516)** | $557 | $288 |
| Depreciation and amortization | **2882** | 1305 | 1432 |
| Deferred income tax provision (benefit), net | **(855)** | (473) | (156) |
| Restructuring charges, net | **618** | 221 | 99 |
| Impairment of goodwill | **2467** |  |  |
| Net (gains) losses on sales and impairments of businesses | **1045** |  |  |
| Net (gains) losses on sales and impairments of assets | **(70)** | (58) |  |
| Net (gains) losses on sales and impairments of equity method investments | **—** |  | 153 |
| Periodic pension (income) expense, net | **39** | 1 | 94 |
| Equity method dividends received | **—** |  | 13 |
| Other, net | **(78)** | 135 | (88) |
| Changes in operating assets and liabilities |  |  |  |
| Accounts and notes receivable | **91** | 59 | 255 |
| Contract assets | **(21)** | 36 | 48 |
| Inventories | **158** | 12 | 73 |
| Accounts payable and other liabilities | **(1027)** | (140) | (402) |
| Interest payable | **22** | 16 | (19) |
| Other | **(57)** | 7 | 43 |
| **CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES** | **1698** | 1678 | 1833 |
| **INVESTMENT ACTIVITIES** |  |  |  |
| Capital expenditures | **(1857)** | (921) | (1141) |
| Acquisitions, net of cash acquired | **414** |  |  |
| Proceeds from divestitures, net of transaction costs | **141** |  |  |
| Proceeds from sales of equity method investments, net of transaction costs | **—** |  | 472 |
| Proceeds from sale of fixed assets | **218** | 91 | 4 |
| Proceeds from insurance recoveries | **28** | 25 |  |
| Other | **32** | (3) | (3) |
| **CASH PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES** | **(1024)** | (808) | (668) |
| **FINANCING ACTIVITIES** |  |  |  |
| Issuance of debt | **409** | 102 | 783 |
| Reduction of debt | **(255)** | (141) | (780) |
| Change in book overdrafts | **181** | (69) | (8) |
| Repurchases of common stock and payments of restricted stock tax withholding | **(65)** | (23) | (218) |
| Dividends paid | **(977)** | (643) | (642) |
| Other | **(1)** | (1) | (1) |
| **CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES** | **(708)** | (775) | (866) |
| **Effect of Exchange Rate Changes on Cash** | **25** | (38) | 10 |
| **Change in Cash and Temporary Investments** | **(9)** | 57 | 309 |
| **Cash and Temporary Investments** |  |  |  |
| Beginning of the period | **1170** | 1113 | 804 |
| End of the period | **$1161** | $1170 | $1113 |

---

*The accompanying notes are an integral part of these financial statements.*

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](#i5ba32aeab3f947f28a9e9ed735c0c7c4_148)</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| *In millions* | **Common** <br>**Stock** <br>**Issued**<br>| **Paid-in** <br>**Capital**<br>| **Retained** <br>**Earnings**<br>| **Accumulated** <br>**Other** <br>**Comprehensive** <br>**Income (Loss)**<br>| **Common** <br>**Stock Held** <br>**In Treasury,** <br>**At Cost**<br>| **Total Equity** |
| *BALANCE, JANUARY 1, 2023* | $449 | $4725 | $9855 | $(1925) | $4607 | $8497 |
| Issuance of stock for various plans, net |  | 5 |  |  | (77) | 82 |
| Repurchase of stock |  |  |  |  | 220 | (220) |
| Dividends ($1.850 per share) |  |  | (652) |  |  | (652) |
| Comprehensive income (loss) |  |  | 288 | 360 |  | 648 |
| *BALANCE, DECEMBER 31, 2023* | 449 | 4730 | 9491 | (1565) | 4750 | 8355 |
| Issuance of stock for various plans, net |  | 2 |  |  | (94) | 96 |
| Repurchase of stock |  |  |  |  | 23 | (23) |
| Dividends ($1.850 per share) |  |  | (655) |  |  | (655) |
| Comprehensive income (loss) |  |  | 557 | (157) |  | 400 |
| *BALANCE, DECEMBER 31, 2024* | 449 | 4732 | 9393 | (1722) | 4679 | 8173 |
| **Issuance of stock for various plans, net** | **—** | **(49)** | **—** | **—** | **(173)** | **124** |
| **Issuance of stock for DS Smith acquisition** | **178** | **9731** | **—** | **—** | **—** | **9909** |
| **Repurchase of stock** | **—** | **—** | **—** | **—** | **65** | **(65)** |
| **Dividends ($1.850 per share)** | **—** | **—** | **(992)** | **—** | **—** | **(992)** |
| **Comprehensive income (loss)** | **—** | **—** | **(3516)** | **1194** | **—** | **(2322)** |
| ***BALANCE, DECEMBER 31, 2025*** | **$627** | **$14414** | **$4885** | **$(528)** | **$4571** | **$14827** |

---

*The accompanying notes are an integral part of these financial statements.*

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_151)</u>**

**<u>[NOTE 1](#i5ba32aeab3f947f28a9e9ed735c0c7c4_154)</u><u>[SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_154)</u>**

**NATURE OF BUSINESS**

International Paper (the "Company") is a global producer of renewable fiber-based packaging products with primary

markets and manufacturing operations in North America and Europe and additional markets and manufacturing

operations in Latin America and North Africa. Substantially all of our businesses have experienced, and are likely to

continue to experience, cycles relating to available industry capacity and general economic conditions.

**FINANCIAL STATEMENTS**

These consolidated financial statements have been prepared in conformity with accounting principles generally

accepted in the United States that require the use of management's estimates. Actual results could differ from

management's estimates. Certain amounts from prior year have been reclassified to conform with the current year

financial statement presentation.

***DS Smith*** 

As a result of the acquisition of DS Smith, the Chief Operating Decision Maker (CODM) began reviewing and

managing the Company's financial results and operations under a revised structure that reflects the scope of the

Company's continuing operations: Packaging Solutions North America (PS NA) and Packaging Solutions EMEA (PS

EMEA). The PS EMEA segment includes the Company's legacy EMEA Industrial Packaging business and the

EMEA DS Smith business. As such, amounts related to the Company's legacy EMEA Industrial Packaging business

have been recast out of the Industrial Packaging segment into the new PS EMEA segment for all prior periods. The

North America DS Smith business has been included in the PS NA segment. Amounts related to the Company's

legacy North America Industrial Packaging business have been reported in the PS NA segment for all prior periods.

See <u>[Note 7](#i5ba32aeab3f947f28a9e9ed735c0c7c4_172)</u> for further details regarding the DS Smith acquisition and <u>[Note 21](#i5ba32aeab3f947f28a9e9ed735c0c7c4_211)</u> for further details regarding business

segments.

***Global Cellulose Fibers Discontinued Operations***

Following the announcement on August 21, 2025 of a definitive agreement to sell the Global Cellulose Fibers (GCF)

business, the GCF business is no longer a reportable segment and all current and historical operating results of the

GCF business are presented as Discontinued Operations, net of taxes, in the consolidated statements of

operations. All current and historical assets and liabilities of the Global Cellulose Fibers business are classified as

Assets held for sale and Long-Term Assets Held For Sale and Liabilities held for sale and Long-Term Liabilities Held

For Sale in the accompanying consolidated balance sheets. See <u>[Note 8](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2234)</u> for further details regarding the Global

Cellulose Fibers business and discontinued operations.

**DISCONTINUED OPERATIONS**

A discontinued operation may include a component or a group of components of the Company's operations. A

disposal of a component or a group of components is reported in discontinued operations if the disposal represents

a strategic shift that has or will have a major effect on the Company's operations and financial results when the

following occurs: (1) a component (or group of components) meets the criteria to be classified as held for sale; (2)

the component or group of components is disposed of by sale; or (3) the component or group of components is

disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spin-off). For any

component classified as held for sale or disposed of by sale or other than by sale, qualifying for presentation as a

discontinued operation, the Company reports the results of operations of the discontinued operations (including any

gain or loss recognized on the disposal or loss recognized on classification as held for sale of a discontinued

operation), less applicable income taxes (benefit), as a separate component in the consolidated statements of

operations for current and all prior periods presented. The Company also reports assets and liabilities associated

with discontinued operations as separate line items on the consolidated balance sheets. The Company recorded

discontinued operations for the years ended December 31, 2025, 2024 and 2023 in connection with the sale of its

Global Cellulose Fibers business and for the year ended December 31, 2023 in connection with the sale of its equity

method investment in Ilim. See <u>[Note 8](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2234)</u> and <u>[Note 11](#i5ba32aeab3f947f28a9e9ed735c0c7c4_181)</u> for further details.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**CONSOLIDATION**

The consolidated financial statements include the accounts of International Paper and subsidiaries for which we

have a controlling financial interest, including variable interest entities for which we are the primary beneficiary. All

significant intercompany balances and transactions are eliminated.

**EQUITY METHOD INVESTMENTS**

The equity method of accounting is applied for investments when the Company has significant influence over the

investee's operations, or when the investee is structured with separate capital accounts. Our material equity method

investments are described in <u>[Note 11](#i5ba32aeab3f947f28a9e9ed735c0c7c4_181)</u>.

**OTHER-THAN-TEMPORARY IMPAIRMENT**

The Company evaluates our equity method investments for other-than-temporary impairment ("OTTI") when

circumstances indicate the investment may be impaired. When a decline in fair value is deemed to be an OTTI, an

impairment is recognized to the extent that the fair value is less than the carrying value of the investment. We

consider various factors in determining whether a loss in value of an investment is other than temporary including:

the length of time and the extent to which the fair value has been below cost, the financial condition of the investee,

and our intent and ability to retain the investment for a period of time sufficient to allow for recovery of value.

Management makes certain judgments and estimates in its assessment including but not limited to: identifying if

circumstances indicate a decline in value is other than temporary, expectations about operations, as well as

industry, financial, regulatory and market factors.

**BUSINESS COMBINATIONS**

The Company allocates the total consideration of the assets acquired and liabilities assumed based on their

estimated fair value as of the business combination date. In developing estimates of fair values for long-lived

assets, including identifiable intangible assets, the Company utilizes a variety of inputs including forecasted cash

flows, anticipated growth rates, discount rates, customer attrition rates, estimated replacement costs and

depreciation and obsolescence factors. Determining the fair value for specifically identified intangible assets such as

customer relationships and lists and developed technology involves judgment. We may refine our estimates and

make adjustments to the assets acquired and liabilities assumed over a measurement period, not to exceed one

year. Upon the conclusion of the measurement period or the final determination of the values of assets acquired and

liabilities assumed, whichever comes first, any subsequent adjustments are charged to the consolidated statements

of operations. Subsequent actual results of the underlying business activity supporting the specifically identified

intangible assets could change, requiring us to record impairment charges or adjust their economic lives in future

periods. See <u>[Note 7](#i5ba32aeab3f947f28a9e9ed735c0c7c4_172)</u> for further details.

**RESTRUCTURING LIABILITIES AND COSTS**

For operations to be closed or restructured, a liability and related expense is recorded when a present obligation

exists and the amount of the obligation can be reasonably estimated. For termination costs associated with

employees covered by a written or substantive plan, a liability is recorded when it is probable that employees will be

entitled to benefits and the amount can be reasonably estimated. For termination costs associated with employees

not covered by a written and broadly communicated policy covering involuntary termination benefits (severance

plan), a liability is recorded for costs to terminate employees (one-time termination benefits) when the termination

plan has been approved and committed to by management, the employees to be terminated have been identified,

the termination plan benefit terms are communicated, the employees identified in the plan have been notified and

actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or

that the plan will be withdrawn. The timing and amount of an accrual is dependent upon the type of benefits granted,

the timing of communication and other provisions that may be provided in the benefit plan. The accounting for each

termination is evaluated individually. See <u>[Note 6](#i5ba32aeab3f947f28a9e9ed735c0c7c4_169)</u> for further details.

**REVENUE RECOGNITION**

Generally, the Company recognizes revenue on a point-in-time basis when the Company transfers control of the

goods to the customer. For customized goods where the Company has a legally enforceable right to payment for

the goods, the Company recognizes revenue over time, which generally is, as the goods are produced.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

The Company's revenue is primarily derived from fixed consideration; however, we do have contract terms that give

rise to variable consideration, primarily volume rebates, early payment discounts and other customer refunds. The

Company estimates its volume rebates at the individual customer level based on the most likely amount method

outlined in ASC 606 "Revenue from Contracts with Customers". The Company estimates early payment discounts

and other customer refunds based on the historical experience across the Company's portfolio of customers to

record reductions in revenue that is consistent with the expected value method outlined in ASC 606. Management

has concluded that these methods result in the best estimate of the consideration the Company will be entitled to

from its customers.

The Company has elected to present all sales taxes on a net basis, account for shipping and handling activities as

fulfillment activities, recognize the incremental costs of obtaining a contract as expense when incurred if the

amortization period of the asset the Company would recognize is one year or less, and not record interest income or

interest expense when the difference in timing of control or transfer and customer payment is one year or less. See

<u>[Note 3](#i5ba32aeab3f947f28a9e9ed735c0c7c4_160)</u> for further details.

**TEMPORARY INVESTMENTS**

Temporary investments with an original maturity of three months or less and money market funds with greater than

three-month maturities but with the right to redeem without notice are treated as cash equivalents and are stated at

cost, which approximates market value. See <u>[Note 9](#i5ba32aeab3f947f28a9e9ed735c0c7c4_175)</u> for further details.

**INVENTORIES**

Inventories include all costs directly associated with manufacturing products: materials, labor, and manufacturing

overhead. In the United States, costs of raw materials and finished paper products are generally determined using

the last-in, first-out method. These inventories are measured at the lower of cost or market. Other inventories are

valued using the first-in, first-out or average cost methods. These inventories are measured at the lower of cost or

net realizable value. See <u>[Note 9](#i5ba32aeab3f947f28a9e9ed735c0c7c4_175)</u> for further details.

**LEASED ASSETS**

Operating lease right of use ("ROU") assets and liabilities are recognized at the commencement date of the lease

based on the present value of lease payments over the lease term. The Company's leases may include options to

extend or terminate the lease. These options to extend are included in the lease term when it is reasonably certain

that we will exercise that option. Some leases have variable payments, however, because they are not based on an

index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases

primarily relate to common area maintenance, insurance, taxes and utilities. Variable payments for equipment,

vehicles, and leases within supply agreements primarily relate to usage, repairs and maintenance. As the implicit

rate is not readily determinable for most of the Company's leases, the Company applies a portfolio approach using

an estimated incremental borrowing rate to determine the initial present value of lease payments over the lease

terms on a collateralized basis over a similar term, which is based on market and company specific information. We

use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate, and apply the rate

based on the currency of the lease, which is updated on a quarterly basis for measurement of new lease liabilities.

Leases having a lease term of twelve months or less are not recorded on the balance sheet and the related lease

expense is recognized on a straight-line basis over the term of the lease. In addition, the Company has applied the

practical expedient to account for the lease and non-lease components as a single lease component for all of the

Company's leases. See <u>[Note 10](#i5ba32aeab3f947f28a9e9ed735c0c7c4_178)</u> for further details.

**PLANTS, PROPERTIES AND EQUIPMENT**

Plants, properties and equipment, net are stated at cost, less accumulated depreciation. Expenditures for

betterments are capitalized, whereas normal repairs and maintenance are expensed as incurred. Depreciation for

the majority of paper mills, as well as other plants and equipment, is calculated using the straight-line method and

depreciation for certain paper mills is based on the units-of-production method. If a decision is made to abandon

plants, properties or equipment before the end of its useful life, depreciation expense is revised to reflect the

shortened useful life. See <u>[Note 9](#i5ba32aeab3f947f28a9e9ed735c0c7c4_175)</u> for further details.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**GOODWILL**

Annual evaluation for possible goodwill impairment is performed as of the beginning of the fourth quarter of each

year, with additional interim evaluation performed when management believes that it is more likely than not, that

events or circumstances have occurred that would result in the impairment of a reporting unit's goodwill.

The Company has the option to evaluate goodwill for impairment by first performing a qualitative assessment of

events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less

than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines that it

is not more likely than not that the fair value of a reporting unit is less than its carrying amounts, then the

quantitative goodwill impairment test is not required to be performed. If the Company determines that it is more

likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company does not elect

the option to perform an initial qualitative assessment, the Company is required to perform the quantitative goodwill

impairment test. In performing this evaluation, the Company estimates the fair value of its reporting unit using a

weighted approach based on discounted future cash flows and market multiples. The determination of fair value

using the discounted cash flow approach requires management to make significant estimates and assumptions

related to forecasts of future revenues, operating margins and discount rates. The determination of fair value using

market multiples requires management to make significant assumptions related to adjusted earnings before interest,

taxes, depreciation, and amortization ("EBITDA") multiples. For reporting units whose carrying amount is in excess

of their estimated fair value, the reporting unit will record an impairment charge by the amount that the carrying

amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting

unit.

**IMPAIRMENT OF LONG-LIVED ASSETS**

Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that

indicate that the carrying value of the assets may not be recoverable. A recoverability test is performed by

comparing the undiscounted cash flows to carrying value of the assets. The inputs related to the undiscounted cash

flows requires judgments as to whether assets are held and used or held for sale, the weighting of operational

alternatives being considered by management and estimates of the amount and timing of expected future cash

flows from the use of the long-lived assets generated by their use. If the carrying amount is less than the

undiscounted cash flows, the fair value of the assets is compared to the carrying value to determine if they are

impaired. We estimate fair value using discounted cash flows and other valuation techniques as needed. Impaired

assets are recorded at their estimated fair value.

**INCOME TAXES**

International Paper uses the asset and liability method of accounting for income taxes whereby deferred income

taxes are recorded for the future tax consequences attributable to differences between the financial statement and

tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected

to apply to taxable income in the years in which those temporary differences are expected to be recovered or

settled. Deferred tax assets and liabilities are remeasured to reflect new tax rates in the periods rate changes are

enacted.

International Paper records its global tax provision based on the respective tax rules and regulations for the

jurisdictions in which it operates. Where the Company believes that a tax position is supportable for income tax

purposes, the item is included in its income tax returns. Where treatment of a position is uncertain, liabilities are

recorded based upon the Company's evaluation of the "more likely than not" outcome considering technical merits

of the position based on specific tax regulations and facts of each matter. Changes to recorded liabilities are only

made when an identifiable event occurs that changes the likely outcome, such as settlement with the relevant tax

authority, the expiration of statutes of limitation for the subject tax year, change in tax laws, or recent court cases

that are relevant to the matter. Accrued interest related to these uncertain tax positions is recorded in our

consolidated statements of operations in Interest expense, net.

The judgments and estimates made by the Company are based on management's evaluation of the technical merits

of a matter, assisted as necessary by consultation with outside consultants, historical experience and other

assumptions that management believes are appropriate and reasonable under current circumstances. Actual

resolution of these matters may differ from recorded estimated amounts, resulting in adjustments that could

materially affect future financial statements. See <u>[Note 13](#i5ba32aeab3f947f28a9e9ed735c0c7c4_187)</u> for further details.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will

not be realized. Significant judgment is required in assessing the need for and magnitude of appropriate valuation

allowances against deferred tax assets. This assessment is completed by tax jurisdiction and relies on both positive

and negative evidence available, with significant weight placed on recent financial results. Cumulative reported pre-

tax income is considered objectively verifiable positive evidence of our ability to generate positive pre-tax income in

the future. In accordance with GAAP, when there is a recent history of pre-tax losses, there is little or no weight

placed on forecasts for purposes of assessing the recoverability of our deferred tax assets. When necessary, we

use systematic and logical methods to estimate when deferred tax liabilities will reverse and generate taxable

income and when deferred tax assets will reverse and generate tax deductions. Assumptions, judgment, and the

use of estimates are required when scheduling the reversal of deferred tax assets and liabilities, and the exercise is

inherently complex and subjective. The realization of these assets is dependent on generating future taxable

income, as well as successful implementation of various tax planning strategies.

International Paper uses the flow-through method to account for investment tax credits earned on eligible open-loop

biomass facilities and combined heat and power system expenditures. Under this method, the investment tax

credits are recognized as a reduction to income tax expense in the year they are earned rather than a reduction in

the asset basis.

**ENVIRONMENTAL REMEDIATION COSTS**

Costs associated with environmental remediation obligations are accrued when such costs are probable and

reasonably estimable. Such accruals are adjusted as further information develops or circumstances change. See

<u>[Note 14](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u> for further details.

**DERIVATIVES AND HEDGING** 

The Company and its subsidiaries are exposed to certain risks relating to its ongoing financial arrangements. The

Company uses derivative financial instruments, primarily commodity swaps and forward contracts, to manage

currency and commodity risks associated with the Company's underlying business activities and the financing of

these activities. As a matter of policy, we do not use financial instruments for speculative purposes.

ASC 815 requires entities to recognize all derivative instruments as either assets or liabilities in the statement of

financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative

instrument depends on whether it has been designated and qualifies as part of a hedge accounting relationship and,

further, on the type of hedge accounting relationship. The cash flows related to derivatives and hedges are

classified in the same category as the underlying transaction.

For those derivative or nonderivative instruments that are designated and qualify as hedging instruments under ASC

815, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value

hedge, cash flow hedge, or a net investment hedge.

Gains or losses on cash flow hedges are deferred as a component of AOCL and are reclassified into earnings at the

time the hedged item affects earnings, presented in the same income statement line item as the underlying hedged

item (i.e., in "cost of products sold" when the hedged transactions are commodity cash flows associated with energy

purchases to facilitate operations). If it becomes probable that a forecasted transaction will not occur, previously

deferred gains and losses related to those forecasted transactions would be recognized in earnings in the current

period.

Gains and losses on net investment hedges are recorded in the cumulative translation adjustment component of

AOCL, offsetting the translation adjustment of the net investment being hedged. Any deferred gains or losses

previously recorded in the cumulative translation adjustment component of AOCL will remain in AOCL until the

hedged net investment is sold or substantially liquidated, at which time the cumulative deferred gains or losses are

reclassified into earnings as a component of gain or loss on the sale of the hedged net investment.

To qualify for hedge accounting, a specified level of hedge effectiveness between the hedging instrument and the

item being hedged must be achieved at inception and maintained throughout the hedged period. We formally

document our risk management objectives, our strategies for undertaking the hedge transactions, the nature of and

relationships between the hedging instruments and hedged items, and the method for assessing hedge

effectiveness. Additionally, for qualified hedges of forecasted transactions, we specifically identify the significant

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

characteristics and expected terms of the forecasted transactions. Our designated derivative contracts include

commodity swap contracts and forward contracts. Commodity swap contracts effectively modify the Company's

exposure to changes in natural gas and electricity prices by allowing the Company to purchase energy on a fixed-

rate basis. Forward contracts effectively modify the Company's exposure to fluctuations in the cost of carbon credits

by allowing the Company to purchase carbon credits on a fixed-rate basis. These agreements involve the receipt of

floating-rate amounts in exchange for fixed-rate amounts over the life of the agreements. See <u>[Note 17](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2277)</u> for further

details.

**TRANSLATION OF FINANCIAL STATEMENTS**

Balance sheets of non-U.S. dollar functional currency entities are translated into U.S. dollars at year-end exchange

rates, while statements of operations are translated at average rates. Adjustments resulting from financial statement

translations are included as cumulative translation adjustments in Accumulated other comprehensive income (loss).

**FAIR VALUE MEASUREMENTS**

The guidance for fair value measurements and disclosures sets out a fair value hierarchy that groups fair value

measurement inputs into the following three classifications:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs other than quoted prices included within Level 1 that are observable for

the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability reflecting the reporting entity's own assumptions or external

inputs from inactive markets.

Transfers between levels are recognized at the end of the reporting period.

**<u>[NOTE 2](#i5ba32aeab3f947f28a9e9ed735c0c7c4_157)</u><u>[RECENT ACCOUNTING DEVELOPMENTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_157)</u>**

Other than as described below, no new accounting pronouncement issued or effective during the fiscal year has had

or is expected to have a material impact on the consolidated financial statements.

**RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS**

***Income Taxes***

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax

Disclosures." This guidance requires companies to enhance income tax disclosures, particularly around rate

reconciliations and income taxes paid information. This guidance is effective for annual reporting periods beginning

after December 15, 2024. The Company adopted this guidance on a prospective basis effective January 1, 2025 -

see <u>[Note 13 - Income Taxes](#i5ba32aeab3f947f28a9e9ed735c0c7c4_187)</u> for impacts to the related disclosures.

**RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED**

***Government Grants***

In December 2025, the FASB issued ASU 2025-10, "Government Grants (Topic 832): Accounting for Government

Grants Received by Business Entities." This guidance establishes accounting for government grants received by a

business including guidance for grants related to assets and grants related to income. This guidance is effective for

annual reporting periods beginning after December 15, 2028 and interim periods within that fiscal year. Early

adoption is permitted. The Company is currently evaluating the provisions of this guidance.

***Derivatives and Hedging***

In November 2025, the FASB issued ASU 2025-09, "Derivatives and Hedging (Topic 815): Hedge Accounting

Improvements." This guidance includes changes to more closely align hedge accounting with the economics of an

entity's risk management activities. This guidance is effective for annual reporting periods beginning after December

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

15, 2026 and interim periods within that fiscal year. Early adoption is permitted. The Company is currently

evaluating the provisions of this guidance.

***Intangible Assets***

In September 2025, the FASB issued ASU 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software

(Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software." This guidance provides

criteria that must be met for entities to capitalize software development costs and factors to consider if there is

significant uncertainty associated with the development activities of the software. This guidance is effective for

annual reporting periods beginning after December 15, 2027 and interim periods within that fiscal year. Early

adoption is permitted. The Company is currently evaluating the provisions of this guidance.

***Disaggregation of Income Statement Expenses***

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income -

Expense Disaggregation Disclosures (Subtopic 220-40)." This guidance requires companies to provide more

detailed information of certain income statement expenses within the footnotes to the financial statements. This

guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods within

fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating

the provisions of this guidance.

**<u>[NOTE 3](#i5ba32aeab3f947f28a9e9ed735c0c7c4_160)</u><u>[REVENUE RECOGNITION](#i5ba32aeab3f947f28a9e9ed735c0c7c4_160)</u>**

**DISAGGREGATED REVENUE**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** |
| ***Reportable Segments*** | **Packaging** <br>**Solutions North** <br>**America**<br>| **Packaging** <br>**Solutions** <br>**EMEA**<br>| **Corporate &** <br>**Intersegment**<br>| **Total** |
| **Primary Geographical Markets (a)**  |  |  |  |  |
| United States | **$14431** | **$—** | **$8** | **$14439** |
| EMEA | **—** | **8451** | **—** | **8451** |
| Pacific Rim and Asia | **31** | **—** | **—** | **31** |
| Americas, other than U.S. | **713** | **—** | **—** | **713** |
| Total | **$15175** | **$8451** | **$8** | **$23634** |

---

*(a) Net sales are attributed to countries based on the location of the reportable segment making the sale.*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | 2024 | 2024 | 2024 | 2024 |
| ***Reportable Segments*** | Packaging <br>Solutions North <br>America<br>| Packaging <br>Solutions <br>EMEA<br>| Corporate & <br>Intersegment<br>| Total |
| **Primary Geographical Markets (a)**  |  |  |  |  |
| United States | $13500 | $— | $186 | $13686 |
| EMEA |  | 1355 |  | 1355 |
| Pacific Rim and Asia | 63 |  | 1 | 64 |
| Americas, other than U.S. | 730 |  |  | 730 |
| Total | $14293 | $1355 | $187 | $15835 |

---

*(a) Net sales are attributed to countries based on the location of the reportable segment making the sale.*

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | 2023 | 2023 | 2023 | 2023 |
| ***Reportable Segments*** | Packaging <br>Solutions <br>North America<br>| Packaging <br>Solutions <br>EMEA<br>| Corporate & <br>Intersegment<br>| Total |
| **Primary Geographical Markets (a)**  |  |  |  |  |
| United States | $13435 | $— | $342 | $13777 |
| EMEA |  | 1398 |  | 1398 |
| Pacific Rim and Asia | 37 |  |  | 37 |
| Americas, other than U.S. | 821 |  |  | 821 |
| Total | $14293 | $1398 | $342 | $16033 |

---

*(a) Net sales are attributed to countries based on the location of the reportable segment making the sale.*

**REVENUE CONTRACT BALANCES**

A contract asset is created when the Company recognizes revenue on its customized products prior to having an

unconditional right to payment from the customer, which generally does not occur until title and risk of loss passes

to the customer.

A contract liability is created when customers prepay for goods prior to the Company transferring those goods to the

customer. The contract liability is reduced once control of the goods is transferred to the customer. The majority of

our customer prepayments are received during the fourth quarter each year for goods that will be transferred to

customers over the following twelve months. Contract liabilities of $18 million and $30 million are included in Other

current liabilities in the accompanying consolidated balance sheet as of December 31, 2025 and 2024, respectively.

The difference between the opening and closing balances of the Company's contract assets and contract liabilities

primarily results from the difference between the price and quantity at comparable points in time for goods which we

have an unconditional right to payment or receive prepayment from the customer, respectively.

**PERFORMANCE OBLIGATIONS AND SIGNIFICANT JUDGMENTS**

International Paper's principal business is to manufacture and sell fiber-based packaging goods. As a general rule,

none of our businesses provide equipment installation or other ancillary services outside of producing and shipping

packaging products to customers.

The nature of the Company's contracts can vary based on the business, customer type and region; however, in all

instances it is International Paper's customary business practice to receive a valid order from the customer, in which

each parties' rights and related payment terms are clearly identifiable.

Contracts or purchase orders with customers could include a single type of product or it could include multiple

types/grades of products. Regardless, the contracted price with the customer is agreed to at the individual product

level outlined in the customer contracts or purchase orders. The Company does not bundle prices; however, we do

negotiate with customers on pricing and rebates for the same products based on a variety of factors (e.g. level of

contractual volume, geographical location, etc.).

Management has concluded that the prices negotiated with each individual customer are representative of the

stand-alone selling price of the product.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[NOTE 4](#i5ba32aeab3f947f28a9e9ed735c0c7c4_163)</u><u>[EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON](#i5ba32aeab3f947f28a9e9ed735c0c7c4_163)</u>**

**<u>[SHAREHOLDERS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_163)</u>**

Basic earnings per share is computed by dividing earnings by the weighted average number of common shares

outstanding. Diluted earnings (loss) per share is computed assuming that all potentially dilutive securities were

converted into common shares.

There are no adjustments required to be made to net income for purposes of computing basic and diluted earnings

(loss) per share.

A reconciliation of the amounts included in the computation of basic earnings (loss) per share from continuing

operations and diluted earnings (loss) per share from continuing operations is as follows:

---

| | | | |
|:---|:---|:---|:---|
| *In millions, except per share amounts* | **2025** | 2024 | 2023 |
| Earnings (loss) from continuing operations  | **$(2838)** | $725 | $313 |
| Weighted average common shares outstanding | **505.7** | 347.2 | 346.9 |
| Effect of dilutive securities (a) |  |  |  |
| Restricted performance share plan | **—** | 7.0 | 2.2 |
| **Weighted average common shares outstanding – assuming dilution** | **505.7** | 354.2 | 349.1 |
| **Basic earnings (loss) per share from continuing operations** | **$(5.61)** | $2.09 | $0.90 |
| **Diluted earnings (loss) per share from continuing operations** | **$(5.61)** | $2.05 | $0.89 |

---

(a) 4.5 million of securities were anti-dilutive for 2025 and were not included in the table.

**<u>[NOTE 5](#i5ba32aeab3f947f28a9e9ed735c0c7c4_166)</u><u>[OTHER COMPREHENSIVE INCOME (LOSS)](#i5ba32aeab3f947f28a9e9ed735c0c7c4_166)</u>** 

The following table presents changes in Accumulated Other Comprehensive Loss ("AOCL"), net of tax, reported in

the consolidated financial statements for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| ***In millions*** | **2025** | 2024 | 2023 |
| **Defined Benefit Pension and Postretirement Adjustments** |  |  |  |
| Balance at beginning of period | **$(1312)** | $(1276) | $(1195) |
| Other comprehensive income (loss) before reclassifications | **138** | (105) | (167) |
| Amounts reclassified from accumulated other comprehensive loss | **75** | 69 | 86 |
| Balance at end of period | **(1099)** | (1312) | (1276) |
| **Change in Cumulative Foreign Currency Translation Adjustments**  |  |  |  |
| Balance at beginning of period | **(402)** | (281) | (722) |
| Other comprehensive income (loss) before reclassifications | **1032** | (121) | (76) |
| Amounts reclassified from accumulated other comprehensive loss | **—** |  | 517 |
| Balance at end of period | **630** | (402) | (281) |
| **Net Gains and Losses on Cash Flow Hedging Derivatives** |  |  |  |
| Balance at beginning of period | **(8)** | (8) | (8) |
| Other comprehensive income (loss) before reclassifications | **(69)** |  |  |
| Amounts reclassified from accumulated other comprehensive loss | **18** |  |  |
| Balance at end of period | **(59)** | (8) | (8) |
| **Total Accumulated Other Comprehensive Income (Loss) at End of Period** | **$(528)** | $(1722) | $(1565) |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

Reclassifications out of AOCL for the three years ended December 31 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Amount Reclassified from Accumulated** <br>**Other Comprehensive Loss** | **Amount Reclassified from Accumulated** <br>**Other Comprehensive Loss** | **Amount Reclassified from Accumulated** <br>**Other Comprehensive Loss** | **Location of Amount** <br>**Reclassified from AOCL** |
| | **2025** | 2024 | 2023 | **Location of Amount** <br>**Reclassified from AOCL** |
| ***In millions*** |  |  |  |  |
| **Defined benefit pension and postretirement items:** |  |  |  |  |
| Prior-service costs | **$(19)** | $(13) | $(23)<br> (a) | Non-operating pension expense |
| Actuarial gains/(losses) | **(80)** | (78) | (92)<br> (a) | Non-operating pension expense |
| Total pre-tax amount | **(99)** | (91) | (115) |  |
| Tax (expense)/benefit | **24** | 22 | 29 |  |
| Net of tax | **(75)** | (69) | (86) |  |
| **Change in cumulative foreign currency translation** <br>**adjustments:**<br>|  |  |  |  |
| Business divestiture | **—** |  | (517)<br> (b) | Discontinued Operations, net of <br>taxes <br>|
| Tax (expense)/benefit | **—** |  |  |  |
| Net of tax | **—** |  | (517) |  |
| **Net gains and losses on cash flow hedging** <br>**derivatives:**<br>|  |  |  |  |
| Cash flow hedges- interest rate contracts | **(1)** |  |  | Interest expense, net |
| Cash flow hedges- commodity contracts | **(22)** |  |  | Cost of products sold |
| Total pre-tax amount | **(23)** |  |  |  |
| Tax (expense)/benefit | **5** |  |  |  |
| Net of tax | **(18)** |  |  |  |
| **Total reclassifications for the period, net of tax** | **$(93)** | $(69) | $(603) |  |

---

*(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see <u>[Note](#i5ba32aeab3f947f28a9e9ed735c0c7c4_202)</u>*

*<u>[19 - Retirement and Postretirement Plans](#i5ba32aeab3f947f28a9e9ed735c0c7c4_202)</u> for additional details).*

*(b) See <u>[Note 11 - Equity Method Investments](#i5ba32aeab3f947f28a9e9ed735c0c7c4_181)</u> for additional details for 2023 amounts.*

**<u>[NOTE 6](#i5ba32aeab3f947f28a9e9ed735c0c7c4_169)</u><u>[RESTRUCTURING CHARGES, NET](#i5ba32aeab3f947f28a9e9ed735c0c7c4_169)</u>**

***2025:*** During 2025, restructuring and other charges, net, totaling $626 million before taxes were recorded. The

charges included:

---

| | |
|:---|:---|
| *In millions* | **2025** |
| Red River mill closure costs (a) | **$84** |
| Savannah mill closure costs (b) | **125** |
| Riceboro mill closure costs (c) | **96** |
| Resource and asset realignment - PS EMEA (d) | **262** |
| Resource realignment - PS NA (e) | **59** |
| **Total** | **$626** |

---

(a) Includes severance charges of $18 million, the majority of which have been paid, inventory charges of $26 million and other charges of $40

million for the year ended December 31, 2025. Inventory charges of $19 million are recorded in Inventories, severance charges of $5 million are

recorded in Accrued payroll and benefits and other costs of $32 million are recorded in Other current liabilities and Other Liabilities in the

accompanying consolidated balance sheet as of December 31, 2025.

(b) Includes severance charges of $30 million, inventory charges of $38 million and other charges of $57 million for the year ended December 31,

2025. Severance charges of $12 million are recorded in Accrued payroll and benefits, $33 million of inventory charges are recorded in Inventories

and other costs of $56 million are recorded in Other current liabilities and Other Liabilities in the accompanying consolidated balance sheet as of

December 31, 2025. The remaining severance charges will be paid in 2026.

(c) Includes severance charges of $12 million, the majority of which have been paid, inventory charges of $29 million and other charges of $55

million for the year ended December 31, 2025. Severance charges of $4 million are recorded in Accrued payroll and benefits, inventory charges

of $25 million are recorded in Inventories and other costs of $16 million are recorded in Other current liabilities and Other Liabilities in the

accompanying consolidated balance sheet as of December 31, 2025.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

(d) Includes costs of $262 million for the year ended December 31, 2025 for PS EMEA. Severance charges of $137 million are recorded in

Accrued payroll and benefits and other costs of $83 million are recorded in Other current liabilities and Other Liabilities in the accompanying

consolidated balance sheet as of December 31, 2025. The severance charges are expected to be paid within the next twelve months.

(e) Includes costs of $59 million for the year ended December 31, 2025 for PS NA. Severance charges of $47 million are recorded in Accrued

payroll and benefits in the accompanying consolidated balance sheet as of December 31, 2025. The severance charges are expected to be paid

within the next twelve months.

***2024:*** During 2024, restructuring and other charges, net, totaling $103 million before taxes were recorded. The

charges included:

---

| | |
|:---|:---|
| *In millions* | 2024 |
| 80/20 approach (a) | $103 |

---

(a) Severance and other costs related to the resource realignment component of our 80/20 approach. The severance charges are recorded in

Accrued payroll and benefits and Other Liabilities in the accompanying consolidated balance sheet. The majority of these charges were paid

in 2025.

***2023:*** During 2023, restructuring and other charges, net, totaling $65 million before taxes were recorded. The

charges included:

---

| | |
|:---|:---|
| *In millions* | 2023 |
| Orange, Texas mill closure costs (a) | $81 |
| Building a Better IP (b) | (16) |
| **Total** | $65 |

---

(a) Includes $25 million of severance charges, $30 million of inventory charges and $26 million of other costs associated with the closure of our

containerboard mill in Orange, Texas. The majority of the severance charges were paid in 2024.

(b) Revision of severance estimates related to our Building a Better IP initiative.

**<u>[NOTE 7](#i5ba32aeab3f947f28a9e9ed735c0c7c4_172)</u><u>[ACQUISITIONS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_172)</u>**

On January 31, 2025, the Company completed its acquisition of the entire issued and to be issued share capital of

DS Smith, a leading provider of sustainable paper-based packaging solutions across Europe and North America.

This acquisition combines two complementary businesses to create a global leader in sustainable packaging

solutions with industry leading positions in two geographies, Europe and North America. The acquisition is expected

to enhance the efficiency of the Company's core operations in North America with the integration of DS Smith's

complementary U.S. business and strengthen the Company's capabilities to advance its strategy to be a truly global

sustainable packaging solutions leader.

Upon closing, IP issued 0.1285 shares for each DS Smith share, resulting in the issuance of 178,126,631 new

shares of IP common stock ("New Company Common Stock"). As a result of the share issuance, the holders of the

New Company Common Stock own approximately 34.1% of the Company's outstanding share capital. Based on the

issuance of 178,126,631 new shares and the closing price of 55.63 on the close of January 31, 2025, the total

purchase consideration for the completed acquisition was approximately $9.9 billion. Acquisition-related costs were

$96 million and $86 million for the years ended December 31, 2025 and December 31, 2024, respectively, and were

recorded in Selling and administrative expenses and Taxes other than payroll and income taxes in the

accompanying consolidated statements of operations. On February 4, 2025, the Company began trading the New

Company Common Stock and continues to be listed on the New York Stock Exchange under the trading symbol "IP"

and via a secondary listing on the London Stock Exchange under the trading symbol "IPC." The headquarters of the

combined company is based in Memphis, Tennessee, and the EMEA headquarters has been established at DS

Smith's existing main office in London.

The Company is accounting for the acquisition under ASC 805, "Business Combinations" and the results of

operations have been included in International Paper's financial statements beginning with the date of acquisition.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

The following table summarizes the fair value assigned to assets and liabilities acquired as of January 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
| ***In millions*** | **Preliminary** | **Adjustments (a)** | **Final** |
| Cash and temporary investments | **$448** | **$—** | **$448** |
| Accounts and notes receivable | **1386** | **(85)** | **1301** |
| Contract assets | **—** | **236** | **236** |
| Inventories | **852** | **(226)** | **626** |
| Other current assets | **147** | **164** | **311** |
| Plants, properties and equipment | **6429** | **278** | **6707** |
| Intangibles | **4327** | **(412)** | **3915** |
| Goodwill | **4048** | **287** | **4335** |
| Overfunded pension plan assets | **79** | **—** | **79** |
| Right of use assets | **257** | **13** | **270** |
| Deferred charges and other assets | **56** | **28** | **84** |
| **Total assets acquired** | **18029** | **283** | **18312** |
| Notes payable and current maturities of long-<br>term debt<br>| **60** | **58** | **118** |
| Accounts payable | **1654** | **6** | **1660** |
| Accrued payroll and benefits | **240** | **(8)** | **232** |
| Other current liabilities | **608** | **175** | **783** |
| Long-term debt | **3634** | **(63)** | **3571** |
| Deferred income taxes | **1520** | **(7)** | **1513** |
| Underfunded pension benefit obligation | **78** | **(7)** | **71** |
| Long-term lease obligations | **177** | **22** | **199** |
| Other liabilities | **149** | **107** | **256** |
| **Total liabilities assumed** | **8120** | **283** | **8403** |
| **Net assets acquired** | **$9909** | **$—** | **$9909** |

---

(a) Revisions to the preliminary purchase price allocation were made as the Company refined its initial estimates within the adjustment period.

These adjustments were not driven by events or changes that occurred after the acquisition date.

The fair value assigned to the assets and liabilities acquired above were measured using Level 2 and Level 3

inputs, which are further defined in <u>[Note 1](#i5ba32aeab3f947f28a9e9ed735c0c7c4_154)</u>. The estimated fair value of inventory was determined using the

Comparative Sales and Replacement Cost methods. Fair value estimates related to the trade name and patents

identified intangible assets were determined using the Relief from Royalty method. The fair value estimates related

to customer relationships and lists identified intangible assets were determined using the Multi-Period Excess

Earnings method. The plants, properties and equipment, specifically the machinery and equipment and buildings

and improvements, were valued using either the indirect or direct methods of the Cost Approach, while the land was

valued using the Sales Comparison Approach. The allocation of the consideration transferred to the assets acquired

and liabilities assumed has been finalized. Goodwill is not deductible for local income tax purposes and is primarily

related to the value of new customers through expansion opportunities not reflected in the fair value of the existing

customers relationships and the value of the intellectual property beyond selected life for trade names.

Since acquisition, Net sales of $7.9 billion and Net earnings (loss) of $(3.5) billion have been included in the

Company's consolidated statement of operations for the year ended December 31, 2025.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

The identifiable intangible assets acquired in connection with the acquisition of DS Smith included the following:

---

| | | |
|:---|:---|:---|
| *In millions* | **Estimated Fair Value** | **Average Useful Life**  |
| Customer relationships and lists | **$3434** | 19 years |
| Tradenames | **363** | 15 years |
| Software (a) | **90** | 3 - 5 years |
| Other (b) | **28** | 10 years |
| **Total** | **$3915** |  |

---

(a) Of this balance, $57 million has been placed in service and $33 million is in development.

(b) Includes $10 million of intangible assets with indefinite lives.

Below are the consolidated results on an unaudited pro forma basis assuming the DS Smith acquisition had closed

on January 1, 2024:

---

| | | |
|:---|:---|:---|
| | **Year Ended** | **Year Ended** |
| *In millions* | **2025**<br>**(Unaudited)**<br>| **2024**<br>**(Unaudited)**<br>|
| Net Sales | **$24369** | $24298 |
| Net Earnings (Loss) | **(3541)** | 198 |

---

The unaudited pro forma information for the twelve months ended December 31, 2025 includes additional

amortization expense on identifiable intangible assets of $16 million and additional depreciation expense on

identifiable fixed assets of $28 million and excludes the write-off of the estimated fair value of inventory of $30

million and the non-recurring integration costs associated with the acquisition of $113 million.

The unaudited pro forma information for the twelve months ended December 31, 2024 includes additional

amortization expense on identifiable intangible assets of $192 million, additional depreciation expense on

identifiable fixed assets of $336 million, incremental expense of $30 million associated with the write-off of the

estimated fair value of inventory and non-recurring integration costs associated with the acquisition of $113 million.

The unaudited pro forma consolidated financial information was prepared for comparative purposes only and

includes certain adjustments, as noted above. The adjustments are estimates based on currently available

information and actual amounts may have differed materially from these estimates. They do not reflect the effect of

costs or synergies that would have been expected to result from the integration of the acquisition. The pro forma

information does not purport to represent International Paper's actual results of operations as if the transaction

described above would have occurred as of January 1, 2024, nor is it necessarily an indicator of future results.

In connection with the DS Smith acquisition, the European Commission issued its Phase I clearance of the business

combination between International Paper and DS Smith on January 31, 2025, with the condition that International

Paper commit to divest five European plants in Mortagne, Saint-Amand, and Cabourg (France), Ovar (Portugal) and

Bilbao (Spain). On June 30, 2025, the Company completed the sale of these locations to Palm Group of Germany

for €125 million (approximately $147 million at the June 30, 2025 exchange rate) in cash. In conjunction with the

completed sale, the Company recorded a net gain of $46 million for the year ended December 31, 2025, which is

included in Net (gains) losses on sales and impairments of businesses in the accompanying consolidated statement

of operations.

**<u>[NOTE 8 -](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2234)</u><u>[DIVESTITURE](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2234)</u>**

On January 23, 2026, the Company completed the previously announced sale of its Global Cellulose Fibers

business to AIP for $1.5 billion, including the issuance of preferred stock with an aggregate initial liquidation

preference of $190 million. The fair value of the preferred stock is estimated using an income approach, which is

classified as Level 2 within the fair value hierarchy. The fair value is calculated as the probability-weighted present

value over all future modelled payoffs.

In conjunction with this previous announcement and subsequent sale, the Company recorded a net pre-tax charge

of $1.07 billion ($805 million after taxes) for the year ended December 31, 2025 related to the impairment of the

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

Global Cellulose Fibers business. This non-cash charge is included in Discontinued Operations, net of taxes in the

accompanying consolidated statements of operations.

All current and historical operating results of the Global Cellulose Fibers business are presented as Discontinued

Operations, net of taxes, in the consolidated statements of operations. All current and historical assets and liabilities

of the Global Cellulose Fibers business are classified as Assets held for sale and Long-Term Assets Held For Sale

and Liabilities held for sale and Long-Term Liabilities Held For Sale in the accompanying consolidated balance

sheets.

The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and

Equity Earnings reconciled to Discontinued Operations, net of taxes, related to the Global Cellulose Fibers business

for all current and prior periods presented in the consolidated statements of operations:

---

| | | | |
|:---|:---|:---|:---|
| | **Twelve Months Ended December 31,**  | **Twelve Months Ended December 31,**  | **Twelve Months Ended December 31,**  |
| *In millions* | **2025** | 2024 | 2023 |
| **Net Sales** | **$2470** | $2783 | $2883 |
| **Costs and Expenses** |  |  |  |
| Cost of products sold | **1724** | 1978 | 2117 |
| Selling and administrative expenses | **187** | 136 | 102 |
| Depreciation and amortization | **135** | 454 | 286 |
| Distribution expenses | **250** | 295 | 336 |
| Taxes other than payroll and income taxes | **27** | 28 | 27 |
| Restructuring charges, net | **(8)** | 118 | 34 |
| Net loss on impairment of business | **1070** |  |  |
| Interest expense, net | **(2)** | (4) | 2 |
| **Earnings (Loss) Before Income Taxes and Equity Earnings (Loss)** | **(913)** | (222) | (21) |
| Income tax provision (benefit) | **(235)** | (54) | (10) |
| **Discontinued Operations, Net of Taxes** | **$(678)** | $(168) | $(11) |

---

The following summarizes the major classes of assets and liabilities of the Global Cellulose Fibers business and

reconciled to Assets held for sale and Liabilities held for sale as of December 31, 2025 in the accompanying

consolidated balance sheet:

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | |
|:---|:---|
| *In millions* | **December 31, 2025** |
| Cash and temporary investments | **$10** |
| Accounts and notes receivable, net | **537** |
| Contract assets | **38** |
| Inventories | **270** |
| Other current assets | **15** |
| Plants, Properties and Equipment | **1761** |
| Right of Use Assets | **36** |
| Deferred Charges and Other Assets | **116** |
|  | **2783** |
| Impairment Charge | **(1070)** |
| **Assets held for sale** | **1713** |
| Notes payable and current maturities of long-term debt | **2** |
| Accounts payable | **239** |
| Accrued payroll and benefits | **68** |
| Other current liabilities | **60** |
| Long-Term Debt | **4** |
| Deferred Income Taxes | **42** |
| Long-Term Lease Obligations | **19** |
| Other Liabilities | **63** |
| **Liabilities held for sale** | **$497** |

---

The impairment charge represents the adjustment to reduce the carrying value of the disposal group to the fair

value of the disposal group, defined as the sale price less estimated selling costs, which are Level 2 inputs.

The following summarizes the major classes of assets and liabilities of the Global Cellulose Fibers business and

reconciled to Assets held for sale, Long-Term Assets Held For Sale, Liabilities held for sale and Long-Term

Liabilities Held For Sale as of December 31, 2024 in the accompanying consolidated balance sheet:

---

| | |
|:---|:---|
| *In millions* | December 31, 2024 |
| Cash and temporary investments | $109 |
| Accounts and notes receivable, net | 564 |
| Contract assets | 35 |
| Inventories | 298 |
| Other current assets | 10 |
| **Assets held for sale** | 1016 |
| Plants, Properties and Equipment | 1742 |
| Right of Use Assets | 31 |
| Deferred Charges and Other Assets | 103 |
| **Long-Term Assets Held For Sale** | 1876 |
| Notes payable and current maturities of long-term debt | 2 |
| Accounts payable | 205 |
| Accrued payroll and benefits | 69 |
| Other current liabilities | 68 |
| **Liabilities held for sale** | 344 |
| Long-Term Debt | 6 |
| Deferred Income Taxes | 44 |
| Long-Term Lease Obligations | 24 |
| Other Liabilities | 51 |
| **Long-Term Liabilities Held For Sale** | $125 |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

The following summarizes the cash provided by (used for) operations and cash provided by (used for) investment

activities related to the Global Cellulose Fibers business and included in the consolidated statements of cash flows:

---

| | | | |
|:---|:---|:---|:---|
| *In millions for the years ended December 31* | **2025** | 2024 | 2023 |
| **Cash Provided By (Used For) Operating Activities** | **$545** | $375 | $408 |
| **Cash Provided By (Used For) Investment Activities** | **(135)** | (118) | (150) |

---

**<u>[NOTE 9](#i5ba32aeab3f947f28a9e9ed735c0c7c4_175)</u><u>[SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION](#i5ba32aeab3f947f28a9e9ed735c0c7c4_175)</u>**

**TEMPORARY INVESTMENTS** 

Temporary investments totaled $477 million and $892 million at December 31, 2025 and 2024, respectively.

**ACCOUNTS AND NOTES RECEIVABLE**

Accounts and notes receivable, net, by classification were:

---

| | | |
|:---|:---|:---|
| *In millions at December 31* | **2025** | 2024 |
| Accounts and notes receivable: |  |  |
| Trade (less allowances of $70 in 2025 and $30 in 2024) | **$3355** | $2150 |
| Other | **436** | 252 |
| **Total** | **$3791** | $2402 |

---

As a result of the DS Smith acquisition, IP has a trade receivable factoring program that allows the Company to sell

trade receivables without recourse.

**INVENTORIES** 

---

| | | |
|:---|:---|:---|
| *In millions at December 31* | **2025** | 2024 |
| Raw materials | **$447** | $160 |
| Finished packaging products | **792** | 767 |
| Operating supplies | **691** | 529 |
| Other | **82** | 30 |
| **Inventories** | **$2012** | $1486 |

---

The last-in, first-out inventory method is used to value most of International Paper's U.S. inventories. Approximately

56% of total raw materials and finished products inventories were valued using this method. The last-in, first-out

inventory reserve was $327 million and $272 million at December 31, 2025 and 2024, respectively.

**PLANTS, PROPERTIES AND EQUIPMENT** 

---

| | | |
|:---|:---|:---|
| *In millions at December 31* | **2025** | 2024 |
| Packaging facilities | **$31861** | $23245 |
| Other properties and equipment | **932** | 1015 |
| Gross cost | **32793** | 24260 |
| Less: Accumulated depreciation | **18350** | 16344 |
| **Plants, properties and equipment, net** | **$14443** | $7916 |

---

Non-cash additions to plants, properties and equipment included within accounts payable were $240 million, $94

million and $132 million at December 31, 2025, 2024 and 2023, respectively.

Annual straight-line depreciable lives generally are, for buildings - 20 to 40 years, and for machinery and equipment

- 3 to 20 years. Depreciation expense was $2.5 billion, $831 million and $1.1 billion for the years ended

December 31, 2025, 2024 and 2023, respectively. Depreciation expense for the years ended December 31, 2025,

2024 and 2023 includes $958 million, $11 million and $347 million, respectively, of accelerated depreciation related

to mill and plant closures and other 80/20 actions. Cost of products sold excludes depreciation and amortization

expense.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**ACCOUNTS PAYABLE** 

Under a supplier finance program, International Paper agrees to pay the relevant banks the stated amount of

confirmed invoices from its designated suppliers on the original maturity dates of the invoices. International Paper or

the relevant banks may terminate the agreement on notice periods from 28 to 90 days. The supplier invoices that

have been confirmed as valid under the program require payment in full on the due date with no terms exceeding

180 days. The accounts payable balance included $368 million and $90 million of supplier finance program liabilities

as of December 31, 2025 and 2024, respectively.

The following table presents supplier finance program obligations confirmed and paid for the years ended

December 31, 2025 and 2024:

---

| | |
|:---|:---|
| *In millions* |  |
| Confirmed obligations outstanding at December 31, 2023 | $90 |
| Invoiced confirmed during the year | 421 |
| Confirmed invoices paid during the year  | (421) |
| Confirmed obligations outstanding at December 31, 2024 | 90 |
| Assumed as part of DS Acquisition | **274** |
| Invoiced confirmed during the year | **1382** |
| Confirmed invoices paid during the year | **(1378)** |
| **Confirmed obligations outstanding at December 31, 2025** | **$368** |

---

**INTEREST**

Interest payments of $550 million, $437 million and $459 million were made during the years ended December 31,

2025, 2024 and 2023, respectively.

Amounts related to interest were as follows:

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | 2024 | 2023 |
| Interest expense | **$551** | $432 | $418 |
| Interest income  | **179** | 218 | 188 |
| Capitalized interest costs | **28** | 21 | 22 |

---

**ASSET RETIREMENT OBLIGATIONS**

At December 31, 2025 and 2024, we had recorded liabilities of $193 million and $88 million, respectively, related to

asset retirement obligations.

In connection with potential future closures or redesigns of certain production facilities, it is possible that the

Company may be required to take steps to remove certain materials from these facilities. Applicable regulations and

standards provide that the removal of certain materials would only be required if the facility were to be demolished

or underwent major renovations. At this time, any such obligations have an indeterminate settlement date, and the

Company believes that adequate information does not exist to apply an expected-present-value technique to

estimate any such potential obligations. Accordingly, the Company does not record a liability for such remediation

until a decision is made that allows reasonable estimation of the timing of such remediation.

**<u>[NOTE](#i5ba32aeab3f947f28a9e9ed735c0c7c4_178)</u><u>[10](#i5ba32aeab3f947f28a9e9ed735c0c7c4_178)</u><u>[LEASES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_178)</u>**

International Paper leases various real estate, including certain operating facilities, warehouses, office space and

land. The Company also leases material handling equipment, vehicles, and certain other equipment. The

Company's leases have remaining lease terms of up to 28 years.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**COMPONENTS OF LEASE EXPENSE**

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | 2024 | 2023 |
| Operating lease costs, net | **$258** | $172 | $168 |
| Variable lease costs  | **50** | 51 | 37 |
| Short-term lease costs, net | **112** | 61 | 56 |
| Finance lease cost |  |  |  |
| Amortization of lease assets | **15** | 9 | 9 |
| Interest on lease liabilities | **3** | 2 | 2 |
| Total lease cost, net | **$438** | $295 | $272 |

---

**SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES**

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **Classification** | **2025** | 2024 |
| **Assets** |  |  |  |
| Operating lease assets | Right of use assets | **$697** | $402 |
| Finance lease assets | Plants, properties and equipment, net (a) | **70** | 31 |
| Total leased assets |  | **$767** | $433 |
| **Liabilities** |  |  |  |
| Current |  |  |  |
| Operating | Other current liabilities | **$221** | $144 |
| Finance | Notes payable and current maturities of <br>long-term debt<br>| **17** | 9 |
| Noncurrent |  |  |  |
| Operating | Long-term lease obligations | **486** | 269 |
| Finance | Long-term debt | **54** | 31 |
| Total lease liabilities |  | **$778** | $453 |

---

*(a) Finance leases are recorded net of accumulated amortization of $69 million and $59 million at December 31, 2025 and 2024, respectively.*

**LEASE TERM AND DISCOUNT RATE**

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | 2024 |
| **Weighted average remaining lease term (years)** |  |  |
| Operating leases | **4.8** | 3.6 |
| Finance leases | **6.0** | 7.2 |
| **Weighted average discount rate** |  |  |
| Operating leases | **4.23%** | 4.34% |
| Finance leases | **4.19%** | 4.93% |

---

**SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES**

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | **2024** | **2023** |
| Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
| Operating cash flows related to operating leases | **$296** | $202 | $180 |
| Operating cash flows related to financing leases | **5** | 3 | 3 |
| Financing cash flows related to finance leases | **19** | 9 | 13 |
| Right of use assets obtained in exchange for lease liabilities |  |  |  |
| Operating leases | **582** | 185 | 216 |
| Finance leases | **35** | 6 | 12 |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**MATURITY OF LEASE LIABILITIES**

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **Operating Leases**  | **Financing Leases** | **Total** |
| 2026 | $245 | $20 | $265 |
| 2027 | 190 | 25 | 215 |
| 2028 | 124 | 12 | 136 |
| 2029 | 72 | 10 | 82 |
| 2030 | 46 | 4 | 50 |
| Thereafter | 100 | 12 | 112 |
| Total lease payments | 777 | 83 | 860 |
| Less imputed interest | 70 | 12 | 82 |
| Present value of lease liabilities  | **$707** | **$71** | **$778** |

---

**<u>[NOTE 11](#i5ba32aeab3f947f28a9e9ed735c0c7c4_181)</u><u>[EQUITY METHOD INVESTMENTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_181)</u>**

The Company accounted for the following investment under the equity method of accounting.

**ILIM S.A. ("Ilim")**

On September 18, 2023, pursuant to a previously announced agreement, the Company completed the sale of its

50% equity interest in Ilim S.A. ("Ilim"), which was a joint venture that operated a pulp and paper business in Russia

and its subsidiaries including Ilim Group, to its joint venture partners for $484 million in cash. The Company also

completed the sale of all of its Ilim Group shares (constituting a 2.39% stake) for $24 million, and divested other

non-material residual interests associated with Ilim, to its joint venture partners. Following the completed sales, the

Company no longer has an interest in Ilim or any of its subsidiaries. Additionally, we incurred transaction fees of $36

million in the third quarter of 2023 in connection with the sale of our investment.

The Company reclassified currency translation adjustments in AOCL of $517 million to the investment at the

completion of the transaction.

All historical results of the Ilim investment are presented as Discontinued Operations, net of taxes in the

consolidated statement of operations.

The following summarizes the items comprising Equity Earnings, Impairment Charges, Tax Expense (Benefit),

Discontinued Operations and Dividends related to the sale of our equity interest in Ilim:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***In millions*** | **Equity Earnings** | **Impairment Charges** | **Tax Expense** <br>**(Benefit)**<br>| **Discontinued Operations,** <br>**net of taxes (a)**<br>| **Dividends** |
| Year Ended December 31, <br>2023<br>| $112 | $135 | $(9) | $(14) | $13 |

---

*(a)Discontinued operations, net of taxes is Equity Earnings less Impairment Charges and Tax Expense (Benefit).*

The Company's remaining equity method investments are not material.

**<u>[NOTE 12](#i5ba32aeab3f947f28a9e9ed735c0c7c4_184)</u><u>[GOODWILL AND OTHER INTANGIBLES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_184)</u>**

**GOODWILL**

The following table presents changes in the goodwill balances as allocated to each reportable business segment for

the years ended December 31, 2025 and 2024:

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **Packaging** <br>**Solutions** <br>**North America**<br>| **Packaging** <br>**Solutions** <br>**EMEA**<br>| **Total** |
| Balance as of December 31, 2023 |  |  |  |
| Goodwill | $3337 | $76 | $3413 |
| Accumulated impairment losses  | (296) | (76) | (372) |
|  | 3041 |  | 3041 |
| Currency translation | (3) |  | (3) |
| Balance as of December 31, 2024 |  |  |  |
| Goodwill | 3334 | 76 | 3410 |
| Accumulated impairment losses  | (296) | (76) | (372) |
|  | 3038 |  | 3038 |
| **Goodwill additions (a)** | **873** | **3462** | **4335** |
| **Goodwill reductions (b)** | **—** | **(2467)** | **(2467)** |
| **Currency translation** | **(2)** | **422** | **420** |
| **Balance as of December 31, 2025** |  |  |  |
| **Goodwill** | **3968** | **3960** | **7928** |
| **Accumulated impairment losses**  | **(59)** | **(2543)** | **(2602)** |
| **Total** | **$3909** | **$1417** | **$5326** |

---

 *(a) Reflects the acquisition of DS Smith. See <u>[Note 7 - Acquisitions](#i5ba32aeab3f947f28a9e9ed735c0c7c4_172)</u> for further details.*

*(b) Reflects PS EMEA Impairment losses and PS NA write-offs of previously impaired goodwill of $237 million and accumulated* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*impairment losses of $(237) million.*

The Company completed its annual goodwill impairment testing for the Packaging Solutions North America (PS NA)

and Packaging Solutions EMEA (PS EMEA) reporting units as of October 1, 2025. Based on this assessment, no

impairment was identified for either reporting unit.

During the fourth quarter of 2025, the Company identified a triggering event as part of its annual strategic review,

driven by updated macroeconomic and industry outlooks, as well as the Company's evaluation of a potential

separation into two independent, publicly traded companies. In response, the Company performed a quantitative

goodwill impairment test for the PS NA and PS EMEA reporting units, comparing each reporting unit's carrying value

to its estimated fair value.

Estimated fair values were determined using discounted future cash flows and market multiples, which use inputs

that are classified within Level 2 and Level 3 of the fair value hierarchy. The discounted cash flow approach requires

significant management judgments, including assumptions related to forecasts of future revenues, operating

margins and discount rates. The market-multiple approach similarly requires significant assumptions regarding

adjusted EBITDA multiples.

The quantitative impairment test concluded that the carrying amount of the PS EMEA reporting unit exceeded its

estimated fair value. As a result, the Company recorded a goodwill impairment charge of approximately

$2.47 billion, which is reflected in Impairment of goodwill in the accompanying consolidated statement of operations.

The carrying amount of the PS NA reporting unit did not exceed its estimated fair value, and no impairment was

recorded for that reporting unit.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**OTHER INTANGIBLES**

Identifiable intangible assets are recorded in Deferred Charges and Other Assets in the accompanying consolidated

balance sheets and comprised the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | 2024 | 2024 | 2024 |
| *In millions at December 31* | **Gross**<br>**Carrying**<br>**Amount**<br>| **Accumulated**<br>**Amortization**<br>| **Net** <br>**Intangible** <br>**Assets**<br>| Gross<br>Carrying<br>Amount<br>| Accumulated<br>Amortization<br>| Net <br>Intangible <br>Assets<br>|
| Customer relationships and lists | **$4063** | **$535** | **$3528** | $394 | $329 | $65 |
| Trade names | **398** | **21** | **377** |  |  |  |
| Software | **142** | **39** | **103**<br> (a) | 12 | 12 |  |
| Other | **102** | **67** | **35** | 68 | 61 | 7 |
| **Total**  | **$4705** | **$662** | **$4043** | $474 | $402 | $72 |

---

(a) Of this balance, $76 million has been placed in service and $27 million is in development.

The Company recognized the following amounts as amortization expense related to intangible assets:

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | 2024 | 2023 |
| Amortization expense related to intangible assets | **$259** | $25 | $25 |

---

Based on current intangibles subject to amortization, estimated amortization expense for each of the succeeding

years is as follows:

---

| | |
|:---|:---|
| ***In millions*** | **Amortization Expense** |
| 2026 | $286 |
| 2027 | 267 |
| 2028 | 263 |
| 2029 | 237 |
| 2030 | 232 |
| Thereafter | 2737 |
| **Total** | $4022 |

---

**<u>[NOTE 13](#i5ba32aeab3f947f28a9e9ed735c0c7c4_187)</u><u>[INCOME TAXES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_187)</u>**

The components of International Paper's earnings from continuing operations before income taxes and equity

earnings by taxing jurisdiction were as follows:

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | 2024 | 2023 |
| Earnings (loss) |  |  |  |
| U.S. | **$(224)** | $127 | $203 |
| Non-U.S. | **(3144)** | 242 | 199 |
| **Earnings (loss) from continuing operations before income taxes and equity** <br>**earnings (losses)**<br>| **$(3368)** | $369 | $402 |

---

The provision (benefit) for income taxes from continuing operations (excluding noncontrolling interests) by taxing

jurisdiction was as follows:

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | 2024 | 2023 |
| Current tax provision (benefit) |  |  |  |
| U.S. federal | **$(13)** | $(71) | $132 |
| U.S. state and local | **3** | 26 | 10 |
| Non-U.S. | **92** | 42 | 36 |
|  | **$82** | $(3) | $178 |
| Deferred tax provision (benefit) |  |  |  |
| U.S. federal | **$(352)** | $(252) | $(125) |
| U.S. state and local | **(65)** | (92) | 12 |
| Non-U.S. | **(198)** | (14) | 3 |
|  | **$(615)** | $(358) | $(110) |
| **Income tax provision (benefit)** | **$(533)** | $(361) | $68 |

---

The Company's deferred income tax provision (benefit) includes a $(1) million benefit, a $1 million expense and a

$(6) million benefit for 2025, 2024 and 2023, respectively, for the effect of various changes in non-U.S. and U.S.

state tax rates.

In 2025, International Paper made income tax payments (net of refunds) of $161 million, consisting of $39 million of

U.S. Federal tax payments, $13 million of U.S. state and local income tax payments and $109 million of non-U.S.

tax payments. Of these amounts, income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid

(net of refunds) in the following jurisdictions:

---

| | |
|:---|:---|
| ***In millions*** | **Income Tax Payments (Net of Refunds)**  |
| Germany | **$18** |
| Ireland | **13** |
| Italy | **9** |
| Mexico | **25** |
| Morocco | **20** |
| Spain | **13** |

---

The Company made income tax payments, net of refunds, of $394 million and $340 million in 2024 and 2023,

respectively.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

The following table reconciles income tax expense using the statutory U.S. Federal income tax rate to the

consolidated income tax provision and reported effective tax rate in 2025:

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | **Effective Income Tax Rate %** |
| **Earnings (loss) from continuing operations before income taxes and equity** <br>**earnings**<br>| **$(3368)** | **n/a** |
| Statutory U.S. income tax rate | **21%** | **n/a** |
| Tax expense (benefit) using statutory U.S. income tax rate | **(707)** | **21%** |
| State and local income taxes, net of federal income tax effect (a) | **(39)** | **1%** |
| Foreign tax effects: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luxembourg: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOL Expiration | **134** | **(4)%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Deductible Expenses | **32** | **(1)%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation Allowance | **(140)** | **4%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **8** | **—%** |
| ***Subtotal Luxembourg*** | ***34*** | ***(1)%*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portugal: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **(62)** | **2%** |
| ***Subtotal Portugal*** | ***(62)*** | ***2%*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United Kingdom: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impact of rate differential on non-U.S. permanent differences and earnings | **(54)** | **2%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Deductible Expenses | **558** | **(17)%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Taxable Income | **(2)** | **—%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Permanent Differences | **11** | **—%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **9** | **—%** |
| ***Subtotal United Kingdom*** | ***522*** | ***(15)%*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Foreign Jurisdictions | **56** | **(2)%** |
| **Total Foreign Tax Effects** | **550** | **(16)%** |
| Effect of cross-border tax laws: |  |  |
| Outside basis difference | **(570)** | **17%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. tax on non-U.S. earnings (GILTI and Subpart F) | **15** | **—%** |
| **Total Effect of Cross-Border Tax Laws** | **(555)** | **16%** |
| Tax credits | **(35)** | **1%** |
| Valuation allowances | **250** | **(7)%** |
| Nontaxable or nondeductible items | **(27)** | **1%** |
| Worldwide changes in unrecognized tax benefits | **32** | **(1)%** |
| Other | **(2)** | **—%** |
| **Income tax provision (benefit)** | **$(533)** | **16%** |

---

*(a) State taxes in California, Georgia, Illinois, Louisiana, Mississippi, New Jersey, Tennessee, and Wisconsin made up the majority (greater than* 

*50%) of the tax effect in this category.*

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

The following table reconciles income tax expense using the statutory U.S. Federal income tax rate to the

consolidated income tax provision and reported effective tax rate in 2024 and 2023:

---

| | | |
|:---|:---|:---|
| *In millions* | 2024 | 2023 |
| **Earnings (loss) from continuing operations before income taxes and equity earnings** | $369 | $402 |
| Statutory U.S. income tax rate | 21% | 21% |
| Tax expense (benefit) using statutory U.S. income tax rate | 77 | 84 |
| State and local income taxes | (52) | 8 |
| Impact of rate differential on non-U.S. permanent differences and earnings | (23) | (6) |
| Non-taxable income | (4) | (2) |
| Non-deductible business expenses | 20 | 7 |
| Non-deductible compensation | 8 | 7 |
| Tax audits |  | (12) |
| Foreign derived intangible income deduction |  | 2 |
| US tax on non-U.S. earnings (GILTI and Subpart F) | 32 | (1) |
| Foreign tax credits | 7 | 6 |
| General business and other tax credits | (36) | (29) |
| Tax expense (benefit) on equity earnings | (1) | (4) |
| Legal entity restructuring expense (benefit) | (391) | 4 |
| Other, net | 2 | 4 |
| **Income tax provision (benefit)** | $(361) | $68 |
| **Effective income tax rate** | (98)% | 17% |

---

The tax effects of significant temporary differences, representing deferred income tax assets and liabilities at

December 31, 2025 and 2024, were as follows:

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | 2024 |
| Deferred income tax assets: |  |  |
| Postretirement benefit accruals | **$69** | $72 |
| Pension obligations | **—** | 63 |
| Tax credits | **191** | 183 |
| Net operating and capital loss carryforwards | **1313** | 1181 |
| Compensation reserves | **186** | 224 |
| Lease obligations | **177** | 112 |
| Environmental reserves | **143** | 131 |
| Investments | **3** | 4 |
| Research and development expenditures | **5** | 240 |
| Outside basis difference | **622** |  |
| Other | **466** | 203 |
| Gross deferred income tax assets | **$3175** | $2413 |
| Less: valuation allowance (a) | **(1535)** | (1201) |
| **Net deferred income tax asset** | **$1640** | $1212 |
| Deferred income tax liabilities: |  |  |
| Intangibles | **$(1132)** | $(133) |
| Right of use assets | **(177)** | (112) |
| Pension obligations | **(26)** |  |
| Plants, properties and equipment | **(1722)** | (1528) |
| Forestlands, related installment sales, and investment in subsidiary | **(487)** | (486) |
| Gross deferred income tax liabilities | **$(3544)** | $(2259) |
| **Net deferred income tax liability (b)** | **$(1904)** | $(1047) |

---

*(a) The net change in the total valuation allowance for the years ended December 31, 2025 and 2024 was an increase of $334 million and an* 

*increase of $353 million, respectively.* 

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

*(b)The net deferred income tax liability for the years ended December 31, 2025 and 2024 includes net deferred tax liability of $42 million and* 

*$44 million included in held for sale.* 

Deferred income tax assets and liabilities are recorded in the accompanying consolidated balance sheets under the

captions Deferred charges and other assets and Deferred income taxes, respectively. The $487 million of deferred

tax liabilities for forestlands, related installment sales, and investment in subsidiary is attributable to a 2007 Temple-

Inland installment sale of forestlands (see <u>[Note 15 - Variable Interest Entities](#i5ba32aeab3f947f28a9e9ed735c0c7c4_193)</u>).

During 2025, the Company incurred a $2.47 billion impairment charge related to the PS EMEA business segment.

The impairment charge results in a deferred tax asset related to the investment in its PS EMEA subsidiaries. The

Company intends to realize a portion of this deferred tax asset in 2026 for which a capital loss will be recognized for

U.S. federal and state income tax purposes. A valuation allowance is recognized on the deferred tax asset to the

extent the capital loss exceeds anticipated future capital gains. This results in the recognition of a net tax benefit of

$271 million.

During 2024, the Company completed an internal legal entity restructuring for which a capital loss was recognized

for U.S. federal and state income tax purposes resulting in a tax benefit of $401 million. The Company intends to

carry back a portion of the loss to prior years and has set up a receivable in the amount of $265 million. The

remaining capital loss will be carried forward to offset future capital gains, and, as such, the Company recorded a

deferred tax asset in the amount of $136 million for the year ended December 31, 2025.

A reconciliation of the beginning and ending amount of unrecognized tax benefits recorded in Other Liabilities in the

accompanying consolidated balance sheet for the years ended December 31, 2025, 2024 and 2023 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | 2024 | 2023 |
| Balance at January 1 | **$(204)** | $(173) | $(177) |
| Assumed as part of DS Smith acquisition | **(133)** |  |  |
| (Additions) reductions for tax positions related to current year | **(26)** | (10) | (13) |
| (Additions) for tax positions related to prior years | **(26)** | (40) | (11) |
| Reductions for tax positions related to prior years | **14** | 7 | 1 |
| Settlements | **4** | 4 | 17 |
| Expiration of statutes of limitations | **1** | 6 | 11 |
| Currency translation adjustment | **(14)** | 2 | (1) |
| **Balance at December 31** | **$(384)** | $(204) | $(173) |

---

If the Company were to prevail on the unrecognized tax benefits recorded, substantially all of the balances at

December 31, 2025, 2024 and 2023 would benefit the effective tax rate.

The Company accrues interest on unrecognized tax benefits as a component of interest expense. Penalties, if

incurred, are recognized as a component of income tax expense. The Company had approximately $92 million and

$50 million accrued for the payment of estimated interest and penalties associated with unrecognized tax benefits at

December 31, 2025 and 2024, respectively.

The Company is currently subject to audits in the United States and other taxing jurisdictions around the world.

Generally, tax years 2012 through 2024 remain open and subject to examination by the relevant tax authorities. The

Company frequently faces challenges regarding the amount of taxes due. These challenges include positions taken

by the Company related to the timing, nature, and amount of deductions and the allocation of income among

various tax jurisdictions.

On September 3, 2024, the Company received the Unagreed Revenue Agent Report from the Internal Revenue

Service relating to investment tax credits for the 2017-2019 years that currently are under examination. The

estimated net incremental tax liability associated with the proposed adjustments would be approximately $50

million. The Company disagrees with the proposed adjustments and initiated the administrative appeals process on

October 30, 2024 with the filing of our Protest of the proposed adjustments. An unfavorable resolution in the

administrative appeals process or future tax litigation could result in cash tax payments and could adversely impact

the effective tax rate.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

On July 4, 2025, the United States enacted the One Big Beautiful Bill Act ("OBBBA"). The OBBBA made significant

tax law changes, including the extension of certain provisions of the 2017 Tax Cuts and Jobs Act, modifications to

the U.S. international tax framework and the reinstatement of favorable treatment for certain business-related

deductions. The tax provisions of the OBBBA have staggered effective dates beginning in 2025 and extending

through 2027. The OBBBA did not have a material impact on the Company's income tax provision or effective tax

rate for the year ended December 31, 2025.

The Company provides for foreign withholding taxes and any applicable U.S. state income taxes on earnings

intended to be repatriated from non-U.S. subsidiaries, which we believe will be limited in the future to each year's

current earnings. No provision for these taxes on undistributed earnings of non-U.S. subsidiaries as of

December 31, 2025 has been made, as these earnings are considered indefinitely invested. Determination of the

amount of taxes that might be paid on these undistributed earnings if eventually remitted in a taxable manner is not

practicable.

If management decided to monetize the Company's foreign investments, we would recognize the tax cost related to

the excess of the book value over the tax basis of those investments. This would include foreign withholding taxes

and any applicable U.S. Federal and state income taxes. Determination of the tax cost that would be incurred upon

monetization of the Company's foreign investments is not practicable; however, we do not believe it would be

material.

The following details the scheduled expiration dates of the Company's net operating loss and income tax credit and

capital loss carryforwards:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *In millions* | 2025<br>Through<br>2034<br>| 2035<br>Through<br>2044<br>| Indefinite | Total |
| U.S. federal and non-U.S. NOLs | $39 | $483 | $506 | $1028 |
| State taxing jurisdiction NOLs (a) | 20 | 31 |  | 51 |
| U.S. federal NOL |  |  | 70 | 70 |
| U.S. federal, non-U.S. and state tax credit carryforwards (a) | 85 | 10 | 96 | 191 |
| U.S. federal and state capital loss carryforwards (a) | 164 |  |  | 164 |
| **Total** | **$308** | **$524** | **$672** | **$1504** |
| Less: valuation allowance (a) | (82) | (499) | (494) | (1075) |
| **Total, net** | **$226** | **$25** | **$178** | **$429** |

---

*(a) State amounts are presented net of federal benefit.*

**<u>[NOTE 14](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u><u>[COMMITMENTS AND CONTINGENT LIABILITIES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_190)</u>**

***General***

The Company is involved in various inquiries, administrative proceedings and litigation relating to environmental and

safety matters, personal injury, product liability, labor and employment, contracts, sales of property, intellectual

property, tax, and other matters, that arise in the normal course of business. These matters may raise difficult and

complicated legal issues and may be subject to many uncertainties and complexities. Moreover, some of these

matters allege substantial or indeterminate monetary damages.

International Paper reviews inquiries, administrative proceedings and litigation, including with respect to

environmental matters, on an ongoing basis and establishes an estimated liability for specific legal proceedings and

other loss contingencies when it determines that the likelihood of an unfavorable outcome is probable, and the

amount of the loss can be reasonably estimated. In addition, if the likelihood of an unfavorable outcome with respect

to material loss contingencies is reasonably possible and International Paper is able to determine an estimate of the

possible loss or range of loss, whether in excess of a related accrued liability of where there is no accrued liability,

International Paper will disclose the estimate of the possible loss or range of loss. When no amount in a range of

loss is more likely than any other amount in the range, the low end of the range is used as the estimate of the

possible loss. International Paper's assessment of whether a loss is probable is based on management's

assessment of the ultimate outcome of the matter.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

Assessments of lawsuits and claims and the estimates reflected herein, are subject to significant judgments about

future events, rely heavily on estimates and assumptions, and are otherwise subject to significant known and

unknown uncertainties. The matters underlying such estimates may change from time to time and actual losses may

vary significantly from current estimates. Additionally, the estimated liability for loss contingencies does not include

matters or losses that are not reasonably estimable and probable.

Based on information currently known to International Paper, management believes that loss contingencies arising

from pending matters, including the matters described herein, will not have a material adverse effect on the

consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in

such matters, some of which are beyond the Company's control, and the large or indeterminate damages sought in

some of these matters, a future adverse ruling, settlement, unfavorable development, or increase in accruals with

respect to these matters could result in future charges that could be materially adverse to the Company's results of

operations or cash flows in any particular reporting period.

***Environmental***

The Company has been named as a potentially responsible party ("PRP") in environmental remediation actions

under various U.S. federal and state laws, including the Comprehensive Environmental Response, Compensation

and Liability Act of 1980, as amended ("CERCLA"). Many involve cleanup of hazardous substances at large

commercial landfills that received waste from multiple sources. Liability for CERCLA cleanups is typically allocated

among the PRPs. There are other remediation costs typically associated with the cleanup of hazardous substances

at the Company's current, closed and formerly-owned facilities, and recorded as liabilities in the consolidated

balance sheets.

Remediation costs are recorded in the consolidated financial statements when they become probable and

reasonably estimable. Reserve amounts may decline as remediation spending occurs. International Paper's

estimated probable liability for these environmental matters, totaled approximately $270 million and $279 million in

the aggregate as of December 31, 2025 and December 31, 2024, respectively.

**Cass Lake:** One matter involves a closed wood-treatment facility located in Cass Lake, Minnesota . The Company

is performing remedial action ("RA") and continues to cooperate with the U.S. Environmental Protection Agency

("EPA") on the remaining remediation goals. The estimated liability for the Cass Lake superfund site was $47 million

and $48 million as of December 31, 2025 and December 31, 2024, respectively.

**Kalamazoo River:** The Company is a PRP for the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund

Site in Michigan, related to polychlorinated biphenyls contamination linked in part to a paper mill formerly owned by

St. Regis Paper Company ("St. Regis"), to which the Company is a successor.

• Operable Unit 5, Area 1 ("OU5"): In 2016, the EPA issued a special notice letter and a unilateral

administrative order ("UAO") directing PRPs to perform the remedy and seeking $37 million in

reimbursement costs. The Company continues to comply with the UAO while preserving defenses.

• Operable Unit 1 ("OU1"): The EPA issued a Record of Decision ("ROD") in 2016 and initiated RA activities in

2021. The Company received a UAO in 2022 and began performing the RA in 2023. Reserves of $27

million were established in 2022, increased by $27 million in 2024, and increased by $7 million in 2025 to

account for the reasonably estimable costs for the next phases of the RA.

The total combined reserve for liabilities for OU5, Area 1 and OU1 was $20 million and $29 million as of

December 31, 2025 and December 31, 2024, respectively.

The Company, along with NCR Corporation and Weyerhauser, was named as a defendant by Georgia-Pacific

Consumer Products LP, Fort James Corporation and Georgia Pacific LLC (collectively, "GP") in a contribution and

cost recovery action for alleged pollution at the site related to the Company's potential CERCLA liability. The lawsuit

seeks contribution under CERCLA for approximately $79 million in past cleanup costs and unspecified future

remediation costs. Although a district court initially fixed the past cost amount at approximately $50 million (plus

interest to be determined) with 15% of those past costs allocated to the Company, the Sixth Circuit Court of Appeals

(the "Sixth Circuit") ultimately found the lawsuit was time-barred. GP attempted further appeals, but the U.S.

Supreme Court declined review. GP later sought a ruling that all parties were jointly and severally liable for future

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

costs. The District Court agreed, but on appeal the Sixth Circuit vacated that decision as well. The U.S. Supreme

Court denied GP's petition for certiorari in October 2025, making the Sixth Circuit's ruling final.

**Harris County:** International Paper and McGinnis Industrial Maintenance Corporation ("MIMC"), a subsidiary of

Waste Management, Inc. ("WMI"), are PRPs at the San Jacinto River Waste Pits Superfund Site in Harris County,

Texas. The PRPs actively participate in activities at the site and share costs.

The Company initially reserved $65 million for estimated remediation costs: (a) $10 million for the southern

impoundment; and (b) $55 million for the northern impoundment. The reserve represented the Company's 50%

share of our estimate of the low end of the range of probable remediation costs. Reserves increased from

2020-2025 as completion of engineering estimates and higher than expected southern impoundment waste

volumes increased projected costs. The Company substantially completed the RA for the southern impoundment in

2024. With respect to the northern impoundment, design revisions in 2024 and 2025 resulted in an increase to the reserve

of $27 million. The total estimated liability for the southern and northern impoundment was $97 million and $98

million as of December 31, 2025 and December 31, 2024, respectively. The current reserve primarily reflects the

Company's 50% share of our estimate of the low end of the range of probable costs for the northern impoundment.

Additional losses in excess of our recorded liability are possible due to uncertainties in future cost, timing and the

development of additional site technical data pertaining to geotechnical, hydrological and other environmental

conditions.

**Versailles Pond:** The Company is a responsible party for the investigation and remediation of Versailles Pond, a

57-acre dammed river impoundment in Sprague, Connecticut contaminated with polychlorinated biphenyls, mercury,

and metals.. A preliminary remediation plan was developed in 2023 and a $30 million reserve established.

Negotiations with state and federal governmental officials about scope and timing of the remediation are ongoing.

The total estimated liability for Versailles Pond was $29 million and $30 million as of December 31, 2025 and

December 31, 2024, respectively.

***Asbestos-Related Matters***

We have been named as a defendant in various asbestos-related personal injury litigation, in both U.S. state and

federal court, primarily in relation to the prior operations of certain companies previously acquired by the Company.

The Company's total recorded liability with respect to pending and future asbestos-related claims was $103 million

and $100 million net of insurance recoveries as of December 31, 2025 and December 31, 2024, respectively. While

it is reasonably possible that the Company may incur losses in excess of its recorded liability with respect to

asbestos-related matters, we are unable to estimate any loss or range of loss in excess of such liability, and do not

believe additional material losses are probable.

***Antitrust***

On July 29, 2025, 12 containerboard producers, including International Paper, were named as defendants in a

purported class action complaint that alleges a civil violation of Sections 1 and 3 of the Sherman Act. The suit is

captioned Artuso Pastry Foods Corp v. Packaging Corp. of America (N.D. Ill.). The complaint alleges that the

defendants, beginning in November 1, 2020 through the time of filing, conspired to fix, raise, maintain, and/or

stabilize prices of containerboard products and finished packaging products made from containerboard. The alleged

class is formed from persons who purchased containerboard products directly from one or more defendants for use

or delivery in the United States during the period November 1, 2020 to the present. The complaint seeks to recover

an unspecified amount of treble damages, injunctive relief, attorneys' fees and actual damages on behalf of the

purported class.

Given the early stage of the claim and our intention to defend robustly against such claim, it is too early to predict or

reasonably estimate the overall outcome or ultimate potential liability (if any) that might be incurred. There can be

no guarantee that the aggregate of possible damages could not have a material impact on our financial condition.

In March 2017, the Italian Competition Authority ("ICA") commenced an investigation into the Italian packaging

industry to determine whether producers of corrugated sheets and boxes violated the applicable European

competition law. In April 2019, the ICA concluded its investigation and issued initial findings alleging that over 30

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

producers, including International Paper's Italian packaging subsidiary ("IP Italy") and certain subsidiaries of DS

Smith operating in Italy ("DS Smith Italy"), improperly coordinated the production and sale of corrugated sheets and

boxes. In August 2019, the ICA issued its decision and assessed IP Italy a fine of €29 million (approximately $31

million at the then-current exchange rates) for participation in the boxes coordination, which was recorded in the

third quarter of 2019. Following a series of appeals by IP Italy to the Italian Council of State, IP Italy's fine was

reduced by €6 million (approximately $6 million). As of December 31, 2025, after giving effect to this development,

the Company did not have any remaining liability related to IP Italy's fine. IP Italy has further appealed the most

recent decision (in July 2024) seeking further reduction. DS Smith Italy was also subject to the ICA decision but not

fined, given its position as leniency applicant. IP Italy, DS Smith Italy, and other producers also have been named in

lawsuits, and we have received other claims, by a number of customers for damages associated with the alleged

anticompetitive conduct. Given the early stages of these claims and the intention of the Company to defend robustly

against such claims, it is too early to predict the overall outcome and ultimate potential liability (if any) that might be

incurred in connection therewith, and there can be no guarantee that the aggregate of possible damages against IP

Italy and DS Smith Italy could not, together, have a material impact on the Company's financial condition.

***Guarantees***

In connection with sales of businesses, property, equipment, forestlands and other assets, International Paper

commonly makes representations and warranties relating to such businesses or assets, and may agree to

indemnify buyers with respect to tax and environmental liabilities, breaches of representations and warranties, and

other matters. Where liabilities for such matters are determined to be probable and reasonably estimable, accrued

liabilities are recorded at the time of sale as a cost of the transaction.

***Brazil Goodwill Tax Matter:*** The Brazilian Federal Revenue Service has challenged the deductibility of goodwill

amortization generated in a 2007 acquisition by Sylvamo do Brasil Ltda. ("Sylvamo Brazil"), which was a wholly

owned subsidiary of the Company until the October 1, 2021 spin-off of the Printing Papers business, after which it

became a subsidiary of Sylvamo Corporation ("Sylvamo"). Sylvamo Brazil received assessments for the tax years

2007-2015 totaling approximately $106 million (adjusted for variation in currency exchange rates) in tax, plus

interest, penalties and fees. The interest, penalties and fees currently total approximately $288 million (adjusted for

variation in currency exchange rates). Accordingly, the assessments currently total approximately $394 million

(adjusted for variation in currency exchange rates). After an initial favorable ruling challenging the basis for these

assessments, Sylvamo Brazil received subsequent unfavorable decisions from the Brazilian Administrative Council

of Tax Appeals. Sylvamo Brazil appealed these decisions. On October 11, 2024, the federal regional court issued a

ruling favorable to Sylvamo Brazil in the first stage of judicial review on the assessments for tax years 2007 and

2008-2012, comprising approximately $250 million of the total $394 million as of December 31, 2025. On December

18, 2024, the Brazilian Federal Revenue Service appealed this ruling. This tax litigation matter may take many

years to resolve. Sylvamo Brazil and International Paper believe the transaction underlying these assessments was

appropriately evaluated, and that Sylvamo Brazil's tax position should be sustained, based on Brazilian tax law.

This matter pertains to a business that was conveyed to Sylvamo on October 1, 2021, as part of our spin-off

transaction. Pursuant to the terms of the tax matters agreement entered into between the Company and Sylvamo,

the Company will pay 60% and Sylvamo will pay 40%, on up to $300 million of any assessment related to this

matter, and the Company will pay all amounts of the assessment over $300 million. Under the terms of the tax

matters agreement, decisions concerning the conduct of the litigation related to this matter, including strategy,

settlement, pursuit and abandonment, will be made by the Company. Sylvamo thus has no control over any decision

related to this ongoing litigation. The Company intends to vigorously defend this historical tax position against the

current assessments and any similar assessments that may be issued for tax years subsequent to 2015. The

Brazilian government may enact a tax amnesty program that would allow Sylvamo Brazil to resolve this dispute for

less than the assessed amount. As of October 1, 2021, in connection with the recording of the distribution of assets

and liabilities resulting from the spin-off transaction, the Company established a liability representing the initial fair

value of the contingent liability under the tax matters agreement. The contingent liability was determined in

accordance with ASC 460 "Guarantees" based on the probability weighting of various possible outcomes. The initial

fair value estimate and recorded liability as of December 31, 2021 was $48 million and remains this amount at

December 31, 2025. This liability will not be increased in subsequent periods unless facts and circumstances

change such that an amount greater than the initial recognized liability becomes probable and estimable.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[NOTE 15](#i5ba32aeab3f947f28a9e9ed735c0c7c4_193)</u><u>[VARIABLE INTEREST ENTITIES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_193)</u>** 

In connection with the acquisition of Temple-Inland in February 2012, two special purpose entities became wholly-

owned subsidiaries of International Paper. The use of the two wholly-owned special purpose entities discussed

below preserved the tax deferral that resulted from the 2007 Temple-Inland timberlands sales. As of December 31,

2025, this deferred tax liability was $487 million, which will be settled with the maturity of the notes in 2027.

In October 2007, Temple-Inland sold 1.55 million acres of timberland for $2.4 billion. The total consideration

consisted almost entirely of notes due in 2027 issued by the buyer of the timberland, which Temple-Inland

contributed to two wholly-owned, bankruptcy-remote special purpose entities. The notes are shown in Long-term

financial assets of variable interest entities in the accompanying consolidated balance sheet and are supported by

$2.4 billion of irrevocable letters of credit issued by three banks, which are required to maintain minimum credit

ratings on their long-term debt.

In December 2007, Temple-Inland's two wholly-owned special purpose entities borrowed $2.1 billion which is shown

in Long-term nonrecourse financial liabilities of variable interest entities. The loans are repayable in 2027 and are

secured by the $2.4 billion of notes and the irrevocable letters of credit securing the notes, and are nonrecourse to

us. The loan agreements provide that if a credit rating of any of the banks issuing the letters of credit is downgraded

below the specified threshold, the letters of credit issued by that bank must be replaced within 30 days with letters of

credit from another qualifying financial institution.

As of both December 31, 2025 and 2024, the fair value of the notes receivable was $2.3 billion. As of both

December 31, 2025 and 2024, the fair value of this debt was $2.1 billion. The notes receivable and debt are

classified as Level 2 within the fair value hierarchy.

Activity between the Company and the 2007 financing entities was as follows:

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | 2024 | 2023 |
| Revenue (a) | **$129** | $152 | $146 |
| Expense (b) | **115** | 136 | 136 |
| Cash receipts (c) | **113** | 135 | 122 |
| Cash payments (d) | **110** | 130 | 123 |

---

*(a)The revenue is included in Interest expense, net, in the accompanying consolidated statements of operations and includes approximately* 

*$19 million for the years ended December 31, 2025, 2024 and 2023, respectively, of accretion income for the amortization of the purchase* 

*accounting adjustment on the Financial assets of variable interest entities.*

*(b) The expense is included in Interest expense, net, in the accompanying consolidated statements of operations and includes approximately* 

*$7 million for the years ended December 31, 2025, 2024 and 2023, respectively, of accretion expense for the amortization of the purchase* 

*accounting adjustment on the Long-term nonrecourse financial liabilities of variable interest entities.*

*(c) The cash receipts are interest received on the Financial assets of special purpose entities.*

*(d) The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities.*

**<u>[NOTE 16](#i5ba32aeab3f947f28a9e9ed735c0c7c4_196)</u><u>[DEBT AND LINES OF CREDIT](#i5ba32aeab3f947f28a9e9ed735c0c7c4_196)</u>**

The borrowing capacity of the Company's commercial paper program is $1.0 billion supported by its $1.4 billion

credit agreement. Under the terms of this program, individual maturities on borrowings may vary, but not exceed

one year from the date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. The

Company had no borrowings outstanding as of December 31, 2025 and December 31, 2024 under this program.

At December 31, 2025, the Company's credit facilities totaled $1.9 billion, excluding the DS Smith credit facilities

discussed below. The credit facilities generally provide for interest rates at a floating rate index plus a pre-

determined margin dependent upon International Paper's credit rating. The credit facilities include a $1.4 billion

contractually committed bank facility with a maturity date of June 2028. The liquidity facilities also include up to $500

million of uncommitted financings based on eligible receivables balances under a receivable securitization program

that expires in June 2026. As of December 31, 2025 and December 31, 2024, the Company had no borrowings

outstanding under the program.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

Below is a table of the foreign denominated credit facilities:

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **December 31, 2025** |  |  |
| **Credit Facilities** | **Borrowing** <br>**Currency**<br>| **USD Equivalent** <br>**Capacity**<br>| **USD Equivalent** <br>**Outstanding**<br>|
| 2.834% Amortizing credit facility - due 2026-2029 | EUR | **$191** | **$191** |
| Floating rate instruments:  |  |  |  |
| Committed bank facility maturing May 2027 | GBP, EUR, USD | **1684** | **1158** |
| Uncommitted facility | GBP, EUR, USD | **67** | **65** |
| Committed bank facility maturing December 2026  | GBP, EUR, USD | **70** | **—** |
| Total |  | **$2012** | **$1414** |

---

Following the DS Smith acquisition, International Paper assumed foreign denominated debt of DS Smith in various

currencies with an approximated value of $3.6 billion. In March 2025, the Company amended and restated DS

Smith's credit facility agreements and entered into agreements to guarantee the outstanding notes of DS Smith.

A summary of all long-term debt follows:

---

| | | |
|:---|:---|:---|
| *In millions at December 31* | **2025** | 2024 |
| 7.350% notes – due 2025 | **$—** | $39 |
| 7.750% notes – due 2025 | **—** | 22 |
| 0.875% notes – due 2026 (EUR) | **705** |  |
| 7.200% notes – due 2026 | **58** | 58 |
| 6.400% notes – due 2026 | **5** | 5 |
| 4.375% notes – due 2027 (EUR) | **998** |  |
| 7.150% notes – due 2027 | **7** | 7 |
| 6.875% notes – due 2029 | **10** | 10 |
| 2.875% notes – due 2029 (GBP) | **337** |  |
| 4.500% notes – due 2030 (EUR) | **764** |  |
| 5.000% notes – due 2035 | **407** | 407 |
| 6.650% notes – due 2037 | **3** | 3 |
| 8.700% notes – due 2038 | **86** | 86 |
| 7.300% notes – due 2039 | **453** | 453 |
| 6.000% notes – due 2041 | **585** | 585 |
| 4.800% notes – due 2044 | **686** | 686 |
| 5.150% notes – due 2046 | **449** | 449 |
| 4.400% notes – due 2047 | **647** | 647 |
| 4.350% notes – due 2048 | **740** | 740 |
| Floating rate notes – due 2027 – 2030 (a) | **308** | 308 |
| Environmental and industrial development bonds – due 2025 – 2031 (b) | **437** | 394 |
| Floating rate term loan - due 2028 | **600** | 600 |
| Foreign denominated credit facilities | **1414** |  |
| Total principal | **9699** | 5499 |
| Capitalized leases | **71** | 43 |
| Premiums, discounts, and debt issuance costs | **(35)** | (39) |
| Terminated interest rate swaps | **48** | 51 |
| Other  | **48** | 1 |
| Total (c) | **9831** | **5555** |
| Less: current maturities | **992** | 193 |
| **Long-term debt** | **$8839** | $5362 |

---

*(a)The weighted average interest rate on these notes was 4.0% in 2025 and 4.6% in 2024.*

*(b)The weighted average interest rate on these bonds was 3.7% in 2025 and 2.8% in 2024.*

*(c)The fair market value was approximately $9.6 billion at December 31, 2025 and $5.2 billion at December 31, 2024. Debt fair value* 

*measurements use Level 2 inputs.*

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

At December 31, 2025, contractual obligations for future payments of debt maturities (including finance lease

liabilities disclosed in <u>[Note 10 - Leases](#i5ba32aeab3f947f28a9e9ed735c0c7c4_178)</u> and excluding the timber monetization structures disclosed in <u>[Note 15 -](#i5ba32aeab3f947f28a9e9ed735c0c7c4_193)</u> 

<u>[Variable Interest Entities](#i5ba32aeab3f947f28a9e9ed735c0c7c4_193)</u>) by calendar year were as follows over the next five years: 2026 – $992 million; 2027 –

$2.6 billion; 2028 – $739 million; 2029 – $381 million; and 2030 – $807 million.

The Company's financial covenants require the maintenance of a minimum net worth, as defined in our debt

agreements, of $9.0 billion and a total debt-to-capital ratio of less than 60%. Net worth is defined as the sum of

common stock, paid-in capital and retained earnings, less treasury stock plus any cumulative goodwill impairment

charges. The calculation also excludes accumulated other comprehensive income/(loss) and both the current and

long-term Nonrecourse Financial Liabilities of Variable Interest Entities. The total debt-to-capital ratio is defined as

total debt divided by the sum of total debt plus net worth. As of December 31, 2025, we were in compliance with our

debt covenants.

**<u>[NOTE 17](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2277)</u><u>[DERIVATIVES AND HEDGING ACTIVITIES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2277)</u>**

As a multinational company, International Paper is exposed to market risks, such as changes in interest rates,

currency exchange rates and commodity prices.

International Paper periodically uses derivatives and other financial instruments to hedge exposures to interest rate,

commodity and currency risks. International Paper does not hold or issue financial instruments for trading purposes.

For hedges that meet the hedge accounting criteria at inception, International Paper formally designates and

documents the instrument as a fair value hedge, a cash flow hedge or a net investment hedge of a specific

underlying exposure.

***Commodity Risk Management***

The Company has entered into commodity swap and commodity forward contracts which have been designated as

cash flow hedges of commodity price risk associated with forecasted purchases and sales of various commodities

used in the Company's operations. These commodity contracts are used to manage exposure to changes in natural

gas, electricity, and carbon credit prices. Individual commodity contracts are entered into up to three years prior to

the occurrence of the hedged transactions.

***Foreign Currency Risk Management***

The Company and its subsidiaries periodically use non-derivative, foreign currency denominated loans to hedge the

Company's foreign currency exposure related to the translation of its net investment in foreign subsidiaries. Certain

of these loans are designated as net investment hedges.

The component of the gains and losses on our net investment in these designated foreign operations, driven by

changes in foreign exchange rates, are economically offset by remeasurements of our foreign-currency

denominated debt.

The notional amounts of financial instruments used in hedging transactions were as follows:

---

| | | |
|:---|:---|:---|
| ***In millions*** | **December 31, 2025** | **December 31, 2024** |
| Electricity contracts (MWh) | **1.9** | 0.3 |
| Natural gas contracts (MWh) | **12.1** |  |
| Carbon credit contracts (tons) | **0.1** |  |
| External debt (EUR) | **€3,293** | €— |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

The following table shows gains or losses recognized in AOCL, net of tax, related to derivative instruments:

---

| | | |
|:---|:---|:---|
|  | **Gain (Loss) Recognized in AOCL on Derivatives**  | **Gain (Loss) Recognized in AOCL on Derivatives**  |
|  | **Twelve Months Ended December 31,**  | **Twelve Months Ended December 31,**  |
| ***In millions*** | **2025** | **2024** |
| Derivatives in Cash Flow Hedging Relationships: |  |  |
| Commodity contracts | **$(69)** | $— |
| Derivatives in Net Investment Hedging Relationships: |  |  |
| External debt | **$(160)** | $— |

---

Based on our valuation at December 31, 2025, and assuming market rates remain constant through contract

maturities, we expect transfers to earnings of the existing gain or losses reported in AOCL on cash flow hedges

during the next 12 months to correspond with the current assets and liabilities portion of the derivative as disclosed

below.

The amounts of gains and losses recognized in the consolidated statements of operations on financial instruments

used in hedging transactions were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Gain (Loss) Reclassified from AOCL Into** <br>**Earnings (Loss)** | **Gain (Loss) Reclassified from AOCL Into** <br>**Earnings (Loss)** | **Location of Gain (Loss)**<br>**Reclassified from AOCL**<br>|
| | **Twelve Months Ended December 31,**  | **Twelve Months Ended December 31,**  | |
| ***In millions*** | **2025** | **2024** |  |
| Derivatives in Cash Flow Hedging Relationships: |  |  |  |
| Commodity contracts | **$(17)** | $— | Cost of products sold |
| Interest rate contract | **(1)** |  | Interest expense, net |
| Total | **$(18)** | $— |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Gain (Loss) Recognized in Earnings** <br>**(Loss)** | **Gain (Loss) Recognized in Earnings** <br>**(Loss)** | **Location of Gain (Loss)** <br>**In Statement of Operations**<br>|
| | **Twelve Months Ended December 31,**  | **Twelve Months Ended December 31,**  | |
| ***In millions*** | **2025** | **2024** |  |
| Derivatives in Cash Flow Hedging Relationships: |  |  |  |
| Commodity contracts | **$(70)** | $— | Cost of products sold |
| Derivatives Not Designated as Hedging Instruments: |  |  |  |
| Commodity contracts | **31** | (24) | Cost of products sold |
| Total | **$(39)** | $(24) |  |

---

***Fair Value Measurements***

The Company uses the discounted cash flow valuation methodology for measuring the fair value of any financial

assets or liabilities. Transfers between levels, if any, are recognized at the end of the reporting period. International

Paper's derivatives are classified as Level 2 within the fair value hierarchy. Fair value hierarchies are further defined

in <u>[Note 1](#i5ba32aeab3f947f28a9e9ed735c0c7c4_154)</u>.

The following table provides a summary of the impact of our derivative instruments in the balance sheet:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Assets** | **Assets** | **Liabilities** | **Liabilities** |
| ***In millions*** | **December 31,** <br>**2025**<br>| **December 31,** <br>**2024**<br>| **December 31,** <br>**2025**<br>| **December 31,** <br>**2024**<br>|
| Derivatives designated as hedging instruments |  |  |  |  |
| Commodity contracts – cash flow | **$2** | $— | **$63** | $— |
| Derivatives not designated as hedging instruments |  |  |  |  |
| Commodity contracts | **67** | 3 | **27** |  |
| Total derivatives | **$69**<br> **(a)** | $3<br> (b) | **$90**<br> **(c)** | $— |

---

(a)Includes $47 million recorded in Other current assets and $22 million recorded in Deferred charges and other assets in the

accompanying consolidated balance sheet.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

(b)Includes $3 million recorded in Other current assets in the accompanying consolidated balance sheet.

(c)Includes $73 million recorded in Other current liabilities and $17 million recorded in Other liabilities in the accompanying consolidated

balance sheet.

The above contracts are subject to enforceable master netting arrangements that provide rights of offset with each

counterparty when amounts are payable on the same date in the same currency or in the case of certain specified

defaults. Management has made an accounting policy election to not offset the fair value of recognized derivative

assets and derivative liabilities in the balance sheet. The amounts owed to the counterparties and owed to the

Company are considered immaterial with respect to each counterparty and in the aggregate with all counterparties.

***Credit-Risk-Related Contingent Features***

International Paper evaluates credit risk by monitoring its exposure with each counterparty to ensure that exposure

stays within acceptable policy limits. Credit risk is also mitigated by contractual provisions with the majority of our

banks. Certain of the contracts include a credit support annex that requires the posting of collateral by the

counterparty or International Paper based on each party's rating and level of exposure. Based on the Company's

current credit rating, the collateral threshold is generally $15 million. The commodity swap and commodity forward

contracts entered into by the Company do not contain collateral posting requirements.

If the lower of the Company's credit rating by Moody's or S&P were to drop below investment grade, the Company

would be required to post collateral for all of its derivatives in a net liability position, although no derivatives would

terminate. There were no derivative instruments containing credit-risk-related contingent features in a net liability

position as of December 31, 2025. The Company was not required to post any collateral as of December 31, 2025.

**<u>[NOTE 18](#i5ba32aeab3f947f28a9e9ed735c0c7c4_199)</u><u>[CAPITAL STOCK](#i5ba32aeab3f947f28a9e9ed735c0c7c4_199)</u>**

The authorized capital stock at both December 31, 2025 and 2024, consisted of 990,850,000 shares of common

stock, $1 par value; 400,000 shares of cumulative $4 preferred stock, without par value (stated value $100 per

share); and 8,750,000 shares of serial preferred stock, $1 par value. The serial preferred stock is issuable in one or

more series by the Board of Directors without further shareholder action.

The following is a roll forward of shares of common stock for the three years ended December 31, 2025, 2024 and

2023:

---

| | | |
|:---|:---|:---|
|  | **Common Stock** | **Common Stock** |
| *In thousands* | **Issued** | **Treasury** |
| Balance at January 1, 2023 | 448916 | 98632 |
| Issuance of stock for various plans, net |  | (1647) |
| Repurchase of stock |  | 5894 |
| Balance at December 31, 2023 | 448916 | 102879 |
| Issuance of stock for various plans, net |  | (2028) |
| Repurchase of stock |  | 648 |
| Balance at December 31, 2024 | 448916 | 101499 |
| **Issuance of stock for various plans, net** | **—** | **(3678)** |
| **Issuance of stock for DS Smith acquisition** | **178127** | **—** |
| **Repurchase of stock** | **—** | **1170** |
| **Balance at December 31, 2025** | **627043** | **98991** |

---

**<u>[NOTE 19](#i5ba32aeab3f947f28a9e9ed735c0c7c4_202)</u><u>[RETIREMENT AND POSTRETIREMENT PLANS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_202)</u>**

International Paper sponsors and maintains the Retirement Plan of International Paper Company (the "Pension

Plan"), a tax-qualified defined benefit pension plan that provides retirement benefits to certain employees.

The Pension Plan provides defined pension benefits based on years of credited service and either final average

earnings (salaried employees and hourly employees receiving salaried benefits), hourly job rates or specified

benefit rates (hourly and union employees).

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

In connection with our acquisition, International Paper acquired the existing DS Smith Group Pension Scheme (the

"Group Scheme"), a U.K. funded defined benefit plan providing pension benefits and lump sum benefits to members

and dependents. The Group Scheme closed to new entrants and future accruals as of April 30, 2011. International

Paper also acquired various non-U.S. retirement benefit arrangements as part of the acquisition, some of which are

considered to be defined benefit pension plans for accounting purposes.

The Company also has two unfunded nonqualified defined benefit pension plans: the Pension Restoration Plan that

provides retirement benefits based on eligible compensation in excess of limits set by the Internal Revenue Service,

and the Unfunded Supplemental Retirement Plan for Senior Managers ("SERP"), which is an alternative retirement

plan for salaried employees who are senior vice presidents and above or who are designated by the chief executive

officer as participants. These nonqualified plans are only funded to the extent of benefits paid, which totaled $49

million, $23 million and $22 million in 2025, 2024 and 2023, respectively, and which are expected to be $20 million

in 2026.

Effective January 1, 2019, the Company froze participation, including credited service and compensation, for

salaried employees under the Pension Plan, the Pension Restoration Plan and the SERP. This change does not

affect benefits accrued through December 31, 2018. For service after December 31, 2018, employees affected by

the freeze receive a Company contribution to their individual Retirement Savings Account as described later in this

<u>[Note 19](#i5ba32aeab3f947f28a9e9ed735c0c7c4_202)</u>.

Many non-U.S. employees are covered by various retirement benefit arrangements, some of which are considered

to be defined benefit pension plans for accounting purposes.

**OBLIGATIONS AND FUNDED STATUS**

The following table shows the changes in the benefit obligation and plan assets for 2025 and 2024 and the plans'

funded status.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | 2024 | 2024 |
| *In millions* | **U.S.**<br>**Plans**<br>| **Non-**<br>**U.S.**<br>**Plans**<br>| U.S.<br>Plans<br>| Non-<br>U.S.<br>Plans<br>|
| Change in projected benefit obligation: |  |  |  |  |
| Benefit obligation, January 1 | **$8345** | **$56** | $8982 | $58 |
| Service cost | **44** | **7** | 53 | 3 |
| Interest cost | **457** | **54** | 447 | 3 |
| Actuarial loss (gain) | **125** | **(19)** | (547) | 5 |
| Plan amendments | **—** | **—** | 16 |  |
| Participant Contributions | **—** | **1** |  |  |
| Acquisitions | **—** | **1004** |  |  |
| Divestitures | **—** | **(4)** |  |  |
| Curtailments | **—** | **(1)** |  | (4) |
| Settlements | **(28)** | **(5)** |  | (2) |
| Benefits paid | **(613)** | **(67)** | (609) | (3) |
| Special termination benefits | **4** | **—** | 3 |  |
| Effect of foreign currency exchange rate movements | **—** | **90** |  | (4) |
| **Benefit obligation, December 31** | **$8334** | **$1116** | $8345 | $56 |
| Change in plan assets: |  |  |  |  |
| Fair value of plan assets, January 1 | **$8189** | **$20** | $8836 | $20 |
| Actual return on plan assets | **884** | **41** | (57) | 1 |
| Company contributions | **49** | **27** | 23 | 4 |
| Benefits paid | **(612)** | **(67)** | (609) | (2) |
| Settlements | **(28)** | **(5)** |  | (2) |
| Acquisitions | **—** | **1012** |  |  |
| Transfer Payments | **—** | **—** | (4) |  |
| Effect of foreign currency exchange rate movements | **—** | **84** |  | (1) |
| **Fair value of plan assets, December 31** | **$8482** | **$1112** | $8189 | $20 |
| **Funded status, December 31** | **$148** | **$(4)** | $(156) | $(36) |
| Amounts recognized in the consolidated balance sheets: |  |  |  |  |
| Overfunded pension plan assets | **$367** | **$119** | $92 | $— |
| Underfunded pension benefit obligation - current (a) | **(21)** | **(5)** | (49) | (2) |
| Underfunded pension benefit obligation - non-current | **(198)** | **(118)** | (199) | (34) |
|  | **$148** | **$(4)** | $(156) | $(36) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Amounts recognized in accumulated other comprehensive <br>income (loss) under ASC 715 (pre-tax):<br>|  |  |  |  |
| Prior service cost (credit) | **$75** | **$—** | $94 | $— |
| Net actuarial loss (gain) | **1414** | **(2)** | 1691 | (5) |
|  | **$1489** | **$(2)** | $1785 | $(5) |

---

(a) Amounts included in Other current liabilities in the accompanying consolidated balance sheets.

The non-current asset for the qualified plan is included in the accompanying consolidated balance sheets under

Overfunded Pension Plan Assets. The non-current portion of the liability is included with the pension liability under

Underfunded Pension Benefit Obligation.

The largest contributor to the actuarial loss affecting the benefit obligation was the decrease in the discount rate

from 5.68% at December 31, 2024 to 5.53% at December 31, 2025.

The following are the components of the amounts recognized in other comprehensive income ("OCI") related to

U.S. and non-U.S. plans during the years ended 2025, 2024 and 2023:

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| *In millions* | **U.S.**<br>**Plans**<br>| **Non-**<br>**U.S.**<br>**Plans**<br>| **U.S.**<br>**Plans**<br>| **Non-**<br>**U.S.**<br>**Plans**<br>| **U.S.**<br>**Plans**<br>| **Non-**<br>**U.S.**<br>**Plans**<br>|
| Current year actuarial (gain) loss | **$(200)** | **$3** | $106 | $— | $192 | $(3) |
| Amortization of actuarial (gain) loss | **(69)** | **—** | (78) |  | (93) | 1 |
| Current year prior service cost | **—** | **—** | 16 |  | 26 |  |
| Amortization of prior service cost | **(14)** | **—** | (13) |  | (23) |  |
| Settlements | **(8)** | **—** |  |  |  |  |
| Curtailments | **(5)** | **—** |  | 4 |  |  |
| Effect of foreign currency exchange rate movements | **—** | **—** |  | 1 |  | (1) |
|  | **$(296)** | **$3** | $31 | $5 | $102 | $(3) |

---

The portion of the change in the funded status that was recognized in net periodic benefit cost and OCI for the U.S.

plans was $(254) million, $32 million and $197 million in 2025, 2024 and 2023, respectively. The portion of the

change in funded status for the non-U.S. plans was $1 million, $11 million and $2 million in 2025, 2024 and 2023,

respectively.

The accumulated benefit obligation at both December 31, 2025 and 2024 was $8.3 billion for our U.S. defined

benefit plans and $1.1 billion and $46 million at December 31, 2025 and 2024, respectively, for our non-U.S. defined

benefit plans.

The following table summarizes information for pension plans with an accumulated benefit obligation in excess of

plan assets at December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
| *In millions* | **U.S.**<br>**Plans**<br>| **Non-U.S.**<br>**Plans**<br>| U.S.<br>Plans<br>| Non-U.S.<br>Plans<br>|
| Projected benefit obligation | **$218** | **$198** | $248 | $55 |
| Accumulated benefit obligation | **218** | **172** | 248 | 46 |
| Fair value of plan assets | **—** | **74** |  | 20 |

---

ASC 715, "Compensation – Retirement Benefits" provides for delayed recognition of actuarial gains and losses,

including amounts arising from changes in the estimated projected plan benefit obligation due to changes in the

assumed discount rate, differences between the actual and expected return on plan assets and other assumption

changes. These net gains and losses are recognized prospectively over a period that approximates the average

remaining service period of active employees expected to receive benefits under the plans to the extent that they

are not offset by gains in subsequent years.

**NET PERIODIC PENSION EXPENSE**

Service cost is the actuarial present value of benefits attributed by the plans' benefit formula to services rendered by

employees during the year. Interest cost represents the increase in the projected benefit obligation, which is a

discounted amount, due to the passage of time. The expected return on plan assets reflects the computed amount

of current-year earnings from the investment of plan assets using an estimated long-term rate of return.

Net periodic pension expense for qualified and nonqualified U.S. and non-U.S. defined benefit plans comprised the

following:

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | 2024 | 2024 | 2023 | 2023 |
| *In millions* | **U.S.**<br>**Plans**<br>| **Non-**<br>**U.S.**<br>**Plans**<br>| U.S.<br>Plans<br>| Non-<br>U.S.<br>Plans<br>| U.S.<br>Plans<br>| Non-<br>U.S.<br>Plans<br>|
| Service cost | **$44** | **$7** | $53 | $3 | $48 | $4 |
| Interest cost | **457** | **54** | 447 | 3 | 459 | 3 |
| Expected return on plan assets | **(560)** | **(63)** | (593) |  | (530) | (1) |
| Actuarial loss (gain) | **70** | **—** | 78 |  | 93 | (1) |
| Amortization of prior service cost | **14** | **—** | 13 |  | 23 |  |
| Curtailment | **5** | **(1)** |  |  |  |  |
| Settlement loss | **8** | **—** |  |  |  |  |
| Special termination benefits | **4** | **—** | 3 |  | 1 |  |
| **Net periodic pension (income)** <br>**expense**<br>| **$42** | **$(3)** | $1 | $6 | $94 | $5 |

---

The components of net periodic pension expense other than the Service cost component are included in Non-

operating pension (income) expense in the Consolidated Statements of Operations.

The increase in 2025 pension expense primarily reflects lower asset returns, higher interest cost due to a higher

discount rate, and the impact of curtailment and settlement losses.

**ASSUMPTIONS**

International Paper evaluates its actuarial assumptions annually as of December 31 (the measurement date) and

considers changes in these long-term factors based upon market conditions and the requirements for employers'

accounting for pensions. These assumptions are used to calculate benefit obligations as of December 31 of the

current year and pension expense to be recorded in the following year (i.e., the discount rate used to determine the

benefit obligation as of December 31, 2025 is also the discount rate used to determine net pension expense for the

2026 year).

Major actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our

defined benefit plans are presented in the following table:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | 2024 | 2024 | 2023 | 2023 |
|  | **U.S.**<br>**Plans**<br>| **Non-**<br>**U.S.**<br>**Plans**<br>| U.S.<br>Plans<br>| Non-<br>U.S.<br>Plans<br>| U.S.<br>Plans<br>| Non-<br>U.S.<br>Plans<br>|
| Actuarial assumptions used to determine benefit obligations as of <br>December 31:<br>|  |  |  |  |  |  |
| Discount rate (b) | **5.53%** | **5.11% - 5.16%** | 5.68% | 4.99% | 5.10% | 5.88% |
| Rate of compensation increase (c) | **3.00%** | **2.90% - 3.39%** | 3.00% | 3.37% | 3.00% | 3.40% |
| Actuarial assumptions used to determine net periodic pension cost for <br>years ended December 31:<br>|  |  |  |  |  |  |
| Discount rate (a) | **5.52% - 5.68%** | **4.99%** | 5.10% | 5.88% | 5.40% | 5.31% |
| Expected long-term rate of return on plan assets  | **7.00%** | **3.63%** | 7.00% | 3.79% | 6.50% | 3.83% |
| Rate of compensation increase | **3.00%** | **3.31%** | 3.00% | 3.40% | 3.00% | 3.36% |

---

*(a) Nonqualified benefit cost reflects 5.68% for the period January 1, 2025 to March 31, 2025 and 5.52% for the period April 1, 2025 to* 

*December 31, 2025.*

*(b) The discount rate assumption reflects a rate of 5.11% applied to the non-U.S. Plans and the 5.16% applied to the Group Scheme.* 

*(c)The rate of compensation increase reflects a rate of 2.90% applied to the Group Scheme and the 3.39% applied to the non-U.S. Plans.*

The expected long-term rate of return on plan assets is based on projected rates of return for current asset classes

in the plan's investment portfolio. Projected rates of return are developed through an asset/liability study in which

projected returns for each of the plan's asset classes are determined after analyzing historical experience and future

expectations of returns and volatility of the various asset classes.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolio is

developed considering the effects of active portfolio management and expenses paid from plan assets. The

discount rate assumption was determined from a universe of high-quality corporate bonds. A settlement portfolio is

selected and matched to the present value of the plan's projected benefit payments. To calculate pension expense

for 2026, the Company will use an expected long-term rate of return on plan assets of 7.00% for the Retirement

Plan of International Paper, a discount rate of 5.53% and an assumed rate of compensation increase of 3.00%. The

Company estimates that it will record net pension expense (income) of approximately $(14) million for its U.S.

defined benefit plans in 2026, compared to expense of $42 million in 2025. To calculate pension expense for 2026,

the Company will use an expected long-term rate of return on plan assets of 6.53% for the Group Scheme, a

discount rate of 5.16% and an assumed rate of compensation increase of 2.90%. The Company estimates that it will

record net pension income of approximately $(19) million for the Group Scheme benefit plans in 2026, compared to

income of $(16) million in 2025.

For non-U.S. pension plans, assumptions reflect economic assumptions applicable to each country.

The following illustrates the effect on the U.S. plan pension expense for 2026 of a 25 basis point decrease in the

above assumptions:

---

| | |
|:---|:---|
| *In millions* | 2026 |
| Expense (Income): |  |
| Discount rate | $13 |
| Expected long-term rate of return on plan assets | 21 |

---

**PLAN ASSETS**

International Paper's Board of Directors has appointed a Fiduciary Review Committee that is responsible for

fiduciary oversight of the U.S. Pension Plan, approving investment policy and reviewing the management and

control of plan assets. Pension Plan assets are invested to maximize returns within prudent levels of risk.

The Pension Plan maintains a strategic asset allocation policy that designates target allocations by asset class.

Investments are diversified across classes and within each class to minimize the risk of large losses. Derivatives,

including swaps, forward and futures contracts, may be used as asset class substitutes or for hedging or other risk

management purposes. Periodic reviews are made of investment policy objectives and investment manager

performance.

The Group Scheme has appointed a Board of Trustees responsible for the oversight of the Scheme, preparing the

Statement of Investment Principles, and preparing, maintaining and revising a Schedule of Contributions. The

investment strategy of the Scheme is designed to protect the security of members' accrued rights, limit volatility in

the contribution rate, and to manage risk in a controlled fashion to achieve incremental excess return. The Group

Scheme has established a strategic objective and investment benchmark, along with a long-term de-risking

framework. Pension plan assets acquired as part of the DS Smith acquisition outside of the Group Scheme are not

material.

International Paper's U.S. pension allocations by type of fund at December 31, 2025 and 2024 and target

allocations were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Asset Class** | **2025** | **2024** | **Target**<br>**Allocations**<br>|
| Hedging assets | **64%** | 62% | 61% - 72% |
| Return seeking assets (a) | **36%** | 38% | 28% - 39% |
| **Total** | **100%** | 100% |  |

---

*(a) Return seeking assets include Real Estate (8% for 2025 and 8% for 2024) and Private Equity (6% and 7% for 2025 and 2024, respectively).*

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

The Group Scheme allocations by type of fund at December 31, 2025 and target allocations were as follows:

---

| | | |
|:---|:---|:---|
| **Asset Class** | **2025** | **Target**<br>**Allocations**<br>|
| Hedging Assets | **63%** | 57.5% - 70.0% |
| Return Seeking Assets | **37%** | 27.0% - 43.0% |
| **Total** | **100%** |  |

---

The fair values of International Paper's pension plan assets at December 31, 2025 and 2024 by asset class are

shown below. Hedge funds disclosed in the following table are allocated to hedging assets for target allocation

purposes.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** |
| **U.S. Plan - Asset Class** | **Total** | **Quoted Prices in**<br>**Active Markets For**<br>**Identical Assets**<br>**(Level 1)**<br>| **Significant**<br>**Observable**<br>**Inputs**<br>**(Level 2)**<br>| **Significant**<br>**Unobservable**<br>**Inputs**<br>**(Level 3)**<br>|
| *In millions* |  |  |  |  |
| Equities | **$1522** | **$912** | **$610** | **$—** |
| Fixed income | **4671** | **—** | **4663** | **8** |
| Derivatives | **22** | **—** | **—** | **22** |
| Cash and cash equivalents | **99** | **99** | **—** | **—** |
| Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedge funds | **1033** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Private equity | **500** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate funds | **635** |  |  |  |
| **Total Investments** | **$8482** | **$1011** | **$5273** | **$30** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** |
| **Group Scheme - Asset Class** | **Total** | **Quoted Prices in**<br>**Active Markets For**<br>**Identical Assets**<br>**(Level 1)**<br>| **Significant**<br>**Observable**<br>**Inputs**<br>**(Level 2)**<br>| **Significant**<br>**Unobservable**<br>**Inputs**<br>**(Level 3)**<br>|
| *In millions* |  |  |  |  |
| Fixed income | **$779** | **$—** | **$779** | **$—** |
| Cash and cash equivalents | **8** | **8** | **—** | **—** |
| Other investments: |  |  |  |  |
| Private fixed income | **219** |  |  |  |
| **Total Investments** | **$1006** | **$8** | **$779** | **$—** |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fair Value Measurement at December 31, 2024** | **Fair Value Measurement at December 31, 2024** | **Fair Value Measurement at December 31, 2024** | **Fair Value Measurement at December 31, 2024** | **Fair Value Measurement at December 31, 2024** |
| U.S. Plan - Asset Class | Total | Quoted Prices in<br>Active Markets For<br>Identical Assets<br>(Level 1)<br>| Significant<br>Observable<br>Inputs<br>(Level 2)<br>| Significant<br>Unobservable<br>Inputs<br>(Level 3)<br>|
| *In millions* |  |  |  |  |
| Equities | $1537 | $972 | $565 | $— |
| Fixed income | 4227 |  | 4220 | 7 |
| Derivatives | 9 |  |  | 9 |
| Cash and cash equivalents | (20) | (20) |  |  |
| Other investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedge funds | 1148 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Private equity | 599 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate funds | 689 |  |  |  |
| **Total Investments** | $8189 | $952 | $4785 | $16 |

---

In accordance with accounting standards, certain investments that are measured at NAV are not classified in the fair

value hierarchy.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Other Investments at December 31, 2025** | **Other Investments at December 31, 2025** | **Other Investments at December 31, 2025** | **Other Investments at December 31, 2025** | **Other Investments at December 31, 2025** |
| **U.S. Plan Investment** | **Fair Value** | **Unfunded** <br>**Commitments**<br>| **Redemption** <br>**Frequency**<br>| **Remediation** <br>**Notice Period**<br>|
| *In millions* |  |  |  |  |
| Hedge funds | **$1033** | **$93** | **Quarterly to** <br>**Semi-Annually**<br>| **45-60 Days** |
| Private equity | **500** | **61** | **(a)** |  |
| Real estate funds | **635** | **72** | **Quarterly** | **45-60 Days** |
| **Total** | **$2168** | **$226** |  |  |

---

*(a) A private equity fund investment ("partnership interest") is contractually locked up for the life of the private equity fund by the partnership* 

*agreement. Limited partners do not have the option to redeem partnership interests.* 

---

| | | | |
|:---|:---|:---|:---|
| **Other Investments at December 31, 2025** | **Other Investments at December 31, 2025** | **Other Investments at December 31, 2025** | **Other Investments at December 31, 2025** |
| **Group Scheme Investment** | **Fair Value** | **Unfunded** <br>**Commitments**<br>| **Remediation** <br>**Notice Period**<br>|
| *In millions* |  |  |  |
| Private fixed income | **$219** | **$87**<br> **(a)** |  |

---

*(a) Private fixed income involves lending money directly to companies or projects outside public markets, offering customized, non-traded debt* 

*with potentially higher yields. Private fixed income includes private placements, direct loans, and infrastructure financing, acting as a middle* 

*ground between traditional bank loans and public bonds.* 

---

| | | | | |
|:---|:---|:---|:---|:---|
| Other Investments at December 31, 2024 | Other Investments at December 31, 2024 | Other Investments at December 31, 2024 | Other Investments at December 31, 2024 | Other Investments at December 31, 2024 |
| Investment | Fair Value | Unfunded <br>Commitments<br>| Redemption <br>Frequency<br>| Remediation Notice <br>Period<br>|
| *In millions* |  |  |  |  |
| Hedge funds | $1148 | $93 | Quarterly to Semi-<br>Annually<br>| 45-60 Days |
| Private equity | 599 | 50 | (a) |  |
| Real estate funds | 689 | 79 | Quarterly | 45-60 Days |
| Total | $2436 | $222 |  |  |

---

*(a) A private equity fund investment ("partnership interest") is contractually locked up for the life of the private equity fund by the partnership* 

*agreement. Limited partners do not have the option to redeem partnership interests.* 

Equity securities consist primarily of publicly traded U.S. companies and international companies. Publicly traded

equities are valued at the closing prices reported in the active market in which the individual securities are traded.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

Fixed income consists of government securities, mortgage-backed securities, corporate bonds, common collective

funds and other fixed income investments. Government securities are valued by third-party pricing sources.

Mortgage-backed security holdings consist primarily of agency-rated holdings. The fair value estimates for mortgage

securities are calculated by third-party pricing sources chosen by the custodian's price matrix. Corporate bonds are

valued using either the yields currently available on comparable securities of issuers with similar credit ratings or

using a discounted cash flow approach that utilizes observable inputs, such as current yields of similar instruments,

but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. Common

collective funds are valued at the net asset value per share multiplied by the number of shares held as of the

measurement date.

Derivative investments such as futures, forward contracts, options and swaps are used to help manage risks.

Derivatives are generally employed as asset class substitutes (such as when employed in a portable alpha

strategy), for managing asset/liability mismatches, or bona fide hedging or other appropriate risk management

purposes. Derivative instruments are generally valued by the investment managers or in certain instances by third-

party pricing sources.

The following tables summarize derivative holdings as of December 31, 2025 and 2024, respectively:

---

| | | | |
|:---|:---|:---|:---|
| Derivatives at December 31, 2025 | Derivatives at December 31, 2025 | Derivatives at December 31, 2025 | Derivatives at December 31, 2025 |
| *In millions* | Gross Asset | Gross Liability | Total |
| Collateral | **$8** | **$(7)** | **$1** |
| Credit Default Swap | **8** | **—** | **8** |
| Interest Rate Swap | **5** | **—** | **5** |
| Bond/Equity Swap | **8** | **—** | **8** |
| **Total** | **$29** | **$(7)** | **$22** |

---

---

| | | | |
|:---|:---|:---|:---|
| Derivatives at December 31, 2024 | Derivatives at December 31, 2024 | Derivatives at December 31, 2024 | Derivatives at December 31, 2024 |
| *In millions* | Gross Asset | Gross Liability | Total |
| Collateral | $17 | $(1) | $16 |
| Credit Default Swap | 3 |  | 3 |
| Interest Rate Swap | 7 |  | 7 |
| Bond/Equity Swap |  | (17) | (17) |
| **Total** | $27 | $(18) | $9 |

---

Hedge funds are investment structures for managing private, loosely-regulated investment pools that can pursue a

diverse array of investment strategies with a wide range of different securities and derivative instruments. These

investments are made through funds-of-funds (commingled, multi-manager fund structures) and through direct

investments in individual hedge funds. Hedge funds are primarily valued by each fund's third-party administrator

based upon the valuation of the underlying securities and instruments and primarily by applying a market or income

valuation methodology as appropriate depending on the specific type of security or instrument held. Funds-of-funds

are valued based upon the net asset values of the underlying investments in hedge funds.

Private equity consists of interests in partnerships that invest in U.S. and non-U.S. debt and equity securities.

Partnership interests are valued using the most recent general partner statement of fair value, updated for any

subsequent partnership interest cash flows.

Real estate funds include commercial properties, land and timberland, and generally include, but are not limited to,

retail, office, industrial, multifamily and hotel properties. Real estate fund values are primarily reported by the fund

manager and are based on valuation of the underlying investments which include inputs such as cost, discounted

cash flows, independent appraisals and market-based comparable data.

The following is a reconciliation of the assets that are classified using significant unobservable inputs (Level 3) at

December 31, 2025:

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**Fair Value Measurements Using Significant Unobservable Inputs (Level 3)**

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **Other**<br>**fixed**<br>**income**<br>| **Derivatives** | **Total** |
| Beginning balance at December 31, 2023 | $7 | $71 | $78 |
| Actual return on plan assets: |  |  |  |
| Relating to assets still held at the reporting date |  | (80) | (80) |
| Relating to assets sold during the period |  | 31 | 31 |
| Purchases, sales and settlements |  | (13) | (13) |
| Transfers in and/or out of Level 3  |  |  |  |
| Ending balance at December 31, 2024 | $7 | $9 | $16 |
| **Actual return on plan assets:** |  |  |  |
| **Relating to assets still held at the reporting date** | **$1** | **$22** | **$23** |
| **Relating to assets sold during the period** | **—** | **36** | **36** |
| **Purchases, sales and settlements** | **—** | **(45)** | **(45)** |
| **Transfers in and/or out of Level 3**  | **—** | **—** | **—** |
| **Ending balance at December 31, 2025** | **$8** | **$22** | **$30** |

---

**FUNDING AND CASH FLOWS**

The Company's funding policy for the Pension Plan is to contribute amounts sufficient to meet legal funding

requirements, plus any additional amounts that the Company may determine to be appropriate considering the

funded status of the plans, tax deductibility, cash flow generated by the Company, and other factors. The Company

continually reassesses the amount and timing of any discretionary contributions. No voluntary contributions were

made in 2025, 2024 or 2023. Generally, International Paper's non-U.S. pension plans are funded using the

projected benefit as a target, except in certain countries where funding of benefit plans is not required.

At December 31, 2025, projected future pension benefit payments, excluding any termination benefits, were as

follows:

---

| | |
|:---|:---|
| *In millions* |  |
| 2026 | $648 |
| 2027 | 648 |
| 2028 | 645 |
| 2029 | 642 |
| 2030 | 639 |
| 2031-2035 | 3107 |

---

**OTHER U.S. PLANS**

International Paper sponsors the International Paper Company Salaried Savings Plan and the International Paper

Company Hourly Savings Plan, both of which are tax-qualified defined contribution 401(k) savings plans.

Substantially all U.S. salaried and certain hourly employees are eligible to participate and may make elective

deferrals to such plans to save for retirement. International Paper makes matching contributions to participant

accounts on a specified percentage of employee deferrals as determined by the provisions of each plan. The

Company makes Retirement Savings Account contributions equal to a percentage of an eligible employee's pay.

Beginning in 2019, as a result of the freeze for salaried employees under the Pension Plan, all salaried employees

are eligible for the contribution to the Retirement Savings Account.

The Company also sponsors the International Paper Company Deferred Compensation Savings Plan, which is an

unfunded nonqualified defined contribution plan. This plan permits eligible employees to continue to make deferrals

and receive company matching contributions (and Retirement Savings Account contributions) when their

contributions to the International Paper Salaried Savings Plan are stopped due to limitations under U.S. tax law.

Participant deferrals and Company contributions are not invested in a separate trust, but are paid directly from

International Paper's general assets at the time benefits become due and payable. Company contributions to the

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

plans totaled approximately $178 million, $177 million and $160 million for the plan years ended in 2025, 2024 and

2023, respectively.

**POSTRETIREMENT BENEFITS**

International Paper provides certain retiree health care and life insurance benefits covering certain salaried and

hourly employees. These benefits are not considered material to the financial statements of the Company.

**<u>[NOTE 20](#i5ba32aeab3f947f28a9e9ed735c0c7c4_208)</u><u>[INCENTIVE PLANS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_208)</u>**

On February 13, 2024, the Company's Board of Directors, upon recommendation of the Management Development

and Compensation Committee (the "MDCC"), authorized adoption of a 2024 Long-Term Incentive Compensation

Plan (the "2024 LTICP") to replace the 2009 Amended and Restated Incentive Compensation Plan (the "2009

Plan"). The 2024 LTICP became effective following approval by shareholders at the May 13, 2024 annual meeting

and replaced the 2009 Plan. The 2024 LTICP authorized up to 9,250,000 shares of our Class A common stock, par

value $1.00 per share, available for future grants in the form of restricted stock, restricted or deferred stock units,

performance awards payable in cash or stock upon the attainment of specified performance goals, dividend

equivalents, options, stock appreciation rights, other stock-based awards and cash-based awards at the discretion

of the Committee. Shares for which payment is in cash, including the shares withheld to cover associate payroll

taxes, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under

the LTICP. The LTICP is administered by the Committee.

Additionally, non-employee members of our Board of Directors receive grants of restricted stock for RSUs, under

the Company's Restricted Stock and Deferred Compensation Plan for Non-Employee Directors, a subplan of the

2024 LTICP.

***Performance Stock Units***

PSU awards are earned over a three-year period based on the achievement of pre-established performance goals.

The 2023-2025 and 2024-2026 Awards are weighted at 50% Return on Invested Capital ("ROIC") and 50% relative

Total Shareholder Return ("TSR") for all participants. The 2025-2027 Awards are weighted 100% relative TSR for all

participants. The ROIC component of the PSU awards is valued at the 20-trading day average closing price

immediately prior to the grant date. As the ROIC component contains a performance condition, compensation

expense, net of estimated forfeitures, is recorded over the requisite service period based on the most probable

number of awards expected to vest. The TSR component of the PSU awards is valued using the same methodology

as the RSUs but then adjusted using a factor derived from a Monte Carlo simulation as the TSR component

contains a market condition. The Monte Carlo simulation estimates the fair value of the TSR component based on

the expected term of the award, a risk-free rate, expected dividends, and the expected volatility for the Company

and its competitors. The expected term is estimated based on the vesting period of the awards, the risk-free rate is

based on the yield on U.S. Treasury securities matching the vesting period, and the volatility is based on the

Company's historical volatility over the expected term. PSUs are payable in cash or shares at the Company's

discretion.

***Restricted Stock Units***

Time-based RSU awards granted under the LTIP are expected to vest in three equal installments commencing on

February 1st following the first anniversary of the grant date over a 3-year service period, subject to forfeiture and

transfer restrictions. RSUs are payable in cash or shares at the Company's discretion.

Generally, the requisite service period is the vesting period. In the case of retirement (eligibility for which is based on

the associate's age and years of service as provided in the relevant award agreement), awards vest pro-rata based

on length of service during the award period, subject to continued employment and paid upon termination.

Dividend equivalents are generally accrued on PSUs and RSUs outstanding as of the record date. These dividend

equivalents are paid only on PSUs and RSUs that ultimately vest.

RSU's granted to non-employee directors vest annually and are restricted through January 1 following the year in

which the non-employee director terminates service as a non-employee director. RSUs awarded to non-employee

directors settle in cash.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

***Restricted Stock*** 

Restricted stock granted to non-employee directors vests annually following the one-year period beginning on the

date of the Annual Meeting of Shareowners and ending on the last business day immediately preceding the next

Annual Meeting of Shareowners. Restricted stock awarded to non-employee directors settle in shares.

The following table sets forth the assumptions used to determine compensation cost for the market condition

component of the LTIP plan:

---

| | |
|:---|:---|
|  | **Twelve Months Ended December** <br>**31, 2025**<br>|
| Expected volatility | **27.09% - 37.11%** |
| Risk-free interest rate | **3.65% - 4.79%** |

---

The following summarizes LTIP activity for the three years ended December 31, 2025:

---

| | | |
|:---|:---|:---|
| | **Share/Units** | **Weighted Average**<br>**Grant Date**<br>**Fair Value**<br>|
| Outstanding at December 31, 2022 | 5312480 | $38.01 |
| Granted - LTIP PSU | 1619481 | 37.78 |
| Granted - LTIP RSU | 1411042 | 34.63 |
| Shares issued - LTIP PSU | (972563) | 40.44 |
| Shares issued - LTIP RSU | (15161) | 34.63 |
| Forfeited | (1234328) | 45.38 |
| Outstanding at December 31, 2023 | 6120951 | 35.31 |
| Granted - LTIP PSU | 2039725 | 35.28 |
| Granted - LTIP RSU | 1414316 | 36.15 |
| Shares issued - LTIP PSU | (851962) | 53.32 |
| Shares issued - LTIP RSU | (446582) | 34.63 |
| Shares issued - LTIP RSU | (8060) | 36.15 |
| Forfeited | (1350063) | 45.58 |
| Outstanding at December 31, 2024 | 6918325 | 31.29 |
| **Granted - LTIP PSU** | **1077442** | **66.41** |
| **Granted - LTIP RSU** | **928481** | **54.16** |
| **Shares issued - LTIP PSU** | **(1603095)** | **50.88** |
| **Shares issued - LTIP RSU** | **(958536)** | **36.02** |
| **Forfeited** | **(949441)** | **45.37** |
| **Outstanding at December 31, 2025** | **5413176** | **$43.18** |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**RECOGNITION AWARD PROGRAM**

The Recognition Award Program ("RA Program") is time-based and designed for recruitment, retention and special

recognition purposes. It provides for awards of RSUs to key employees.

The following summarizes the activity of the RA Program for the three years ended December 31, 2025:

---

| | | |
|:---|:---|:---|
| | **Shares** | **Weighted Average**<br>**Grant Date**<br>**Fair Value**<br>|
| Outstanding at December 31, 2022 | 126392 | $46.88 |
| Granted | 123454 | 35.51 |
| Shares issued | (81629) | 45.40 |
| Forfeited | (11643) | 39.77 |
| Outstanding at December 31, 2023 | 156574 | 39.22 |
| Granted | 115200 | 43.26 |
| Shares issued | (85236) | 37.53 |
| Forfeited | (6700) | 38.30 |
| Outstanding at December 31, 2024 | 179838 | 42.64 |
| **Granted** | **308863** | **53.74** |
| **Shares issued** | **(124004)** | **47.39** |
| **Forfeited** | **(17962)** | **48.05** |
| **Outstanding at December 31, 2025** | **346735** | **$49.31** |

---

At December 31, 2025, 2024 and 2023 a total of 7.1 million, 9.1 million and 5.5 million shares, respectively, were

available for grant under the LTICP.

Stock-based compensation expense and related income tax benefits were as follows:

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | 2024 | 2023 |
| Total stock-based compensation expense (included in selling and administrative <br>expense)<br>| **$93** | $77 | $53 |
| Income tax benefits related to stock-based compensation | **35** | 13 | 11 |

---

At December 31, 2025, $70 million of compensation cost, net of estimated forfeitures, related to unvested restricted

stock unit awards, performance stock unit awards and restricted stock attributable to future performance had not yet

been recognized. This amount will be recognized in expense over a weighted-average period of 1.5 years.

**<u>[NOTE 21](#i5ba32aeab3f947f28a9e9ed735c0c7c4_211)</u><u>[FINANCIAL INFORMATION BY BUSINESS SEGMENT AND GEOGRAPHIC AREA](#i5ba32aeab3f947f28a9e9ed735c0c7c4_211)</u>**

On January 23, 2026, the Company completed the previously announced sale of its Global Cellulose Fibers

business to AIP. As a result of the sale, the Global Cellulose Fibers business is no longer a reportable segment and

all current and historical operating results of the Global Cellulose Fibers business are presented as Discontinued

Operations, net of taxes, in the consolidated statements of operations. All current and historical assets and liabilities

of the Global Cellulose Fibers business are classified as Assets held for sale and Long-Term Assets Held For Sale

and Liabilities held for sale and Long-Term Liabilities Held For Sale in the accompanying consolidated balance

sheets. See <u>[Note 8 - Divestiture](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2234)</u> for further details regarding the Global Cellulose Fibers business and discontinued

operations.

As a result of the acquisition of DS Smith, the Chief Operating Decision Maker (CODM) began reviewing and

managing the Company's financial results and operations under a revised structure that reflects the scope of the

Company's continuing operations: Packaging Solutions North America (PS NA) and Packaging Solutions EMEA (PS

EMEA). The PS EMEA segment includes the Company's legacy EMEA Industrial Packaging business and the

EMEA DS Smith business. As such, amounts related to the Company's legacy EMEA Industrial Packaging business

have been recast out of the Industrial Packaging segment into the new PS EMEA segment for all prior periods. The

North America DS Smith business has been included in the PS NA segment. Amounts related to the Company's

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

legacy North America Industrial Packaging business have been reported in the PS NA segment for all prior periods.

PS NA and PS EMEA are primarily focused on producing fiber-based packaging. We produce linerboard, medium,

whitetop, recycled linerboard, recycled medium and saturating kraft of which a majority of our production is

converted into corrugated packaging and other packaging. The revenue for our PS NA and PS EMEA segments are

derived from selling these products to our customers.

The CODM assesses performance for these segments and decides how to allocate resources based on business

segment operating profit, which is defined as earnings (loss) before income taxes and equity earnings (losses),

including the impact of less than wholly owned subsidiaries and excluding interest expense, net, corporate

expenses, net, net special items and non-operating pension expense. Business segment operating profits (losses)

are also used by International Paper's CODM to measure the earnings performance of its businesses and to focus

on on-going operations.

**INFORMATION BY BUSINESS SEGMENT**

The following tables illustrate reportable segment revenue, significant segment expenses, and measures of a

segment's profit or loss for the years ended December 31, 2025, 2024 and 2023. The table also reconciles these

amounts to Earnings (loss) from continuing operations before income taxes and equity earnings (losses).

***2025:***

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **Packaging Solutions** <br>**North America**<br>| **Packaging Solutions** <br>**EMEA**<br>| **Total** |
| Net sales from external customers | **$14987** | **$8450** | **$23437** |
| Intersegment sales | **188** | **1** | **189** |
|  | **15175** | **8451** | **23626** |
| Other external sales |  |  | **197** |
| Elimination of intersegment sales |  |  | **(189)** |
| **Total net sales** |  |  | **23634** |
| **Less:** |  |  |  |
| Cost of products sold | **10338** | **6225** |  |
| Selling and administrative expenses | **1293** | **536** |  |
| Depreciation and amortization  | **1724** | **1020** |  |
| Distribution expenses | **1125** | **873** |  |
| Other segment items (a) | **123** | **33** |  |
| **Business Segment Operating Profit (Losses)** | **572** | **(236)** | **336** |
| Interest Expense, net |  |  | **372** |
| Adjustment for less than wholly owned subsidiaries (b) |  |  | **(2)** |
| Corporate expenses, net |  |  | **109** |
| Net special items (i) |  |  | **3237** |
| Non-operating pension (income) expense |  |  | **(12)** |
| **Earnings (loss) from continuing operations before income** <br>**taxes and equity earnings (losses)**<br>|  |  | **$(3368)** |

---

(i) Includes a charge of $2.47 billion for the impairment of goodwill related to our PS EMEA business, $237 million for transaction and other costs

related to the DS Smith acquisition, a charge of $84 million for severance and other costs related to the closure of our Red River containerboard

mill, a net gain of $46 million related to the sale of EMEA plants, a net gain of $94 million related to the sale of fixed assets primarily associated

with permanently closed mills, a charge of $125 million for costs related to the closure of our Savannah containerboard mill, a charge of $96

million for costs related to the closure of our Riceboro containerboard mill, charges of $321 million for restructuring charges related to resource

and asset realignment and a net charge of $47 million for other items.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

***2024:***

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **Packaging Solutions** <br>**North America**<br>| **Packaging Solutions** <br>**EMEA**<br>| **Total** |
| Net sales from external customers | $14178 | $1355 | $15533 |
| Intersegment sales | 115 |  | 115 |
|  | 14293 | 1355 | 15648 |
| Other external sales |  |  | 302 |
| Elimination of intersegment sales |  |  | (115) |
| **Total net sales** |  |  | 15835 |
| **Less:** |  |  |  |
| Cost of products sold | 10089 | 1010 |  |
| Selling and administrative expenses | 1326 | 125 |  |
| Depreciation and amortization | 786 | 64 |  |
| Distribution expenses | 1091 | 89 |  |
| Other segment items (a) | 110 | 7 |  |
| **Business Segment Operating Profit (Losses)** | 891 | 60 | 951 |
| Interest Expense, net |  |  | 214 |
| Adjustment for less than wholly owned subsidiaries (b) |  |  | (5) |
| Corporate expenses, net |  |  | 170 |
| Net special items (i) |  |  | 245 |
| Non-operating pension (income) expense |  |  | (42) |
| **Earnings (loss) from continuing operations before income** <br>**taxes and equity earnings (losses)**<br>|  |  | $369 |

---

(i) Includes a charge of $86 million for transaction and other costs related to the DS Smith acquisition, a charge of $104 million for severance and

other costs related to mill closures and other 80/20 actions, charges of $60 million for environmental reserve adjustments, a gain of $54 million

related to the sale of a building at our Orange, Texas containerboard mill, $37 million for strategic advisory fees and a net charge of $12 million

for other items.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

***2023***:

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **Packaging Solutions** <br>**North America**<br>| **Packaging Solutions** <br>**EMEA**<br>| **Total** |
| Net sales from external customers | $14198 | $1398 | $15596 |
| Intersegment sales | 95 |  | 95 |
|  | 14293 | 1398 | 15691 |
| Other external sales |  |  | 437 |
| Elimination of intersegment sales |  |  | (95) |
| **Total net sales** |  |  | 16033 |
| **Less:** |  |  |  |
| Cost of products sold | 10137 | 1052 |  |
| Selling and administrative expenses | 978 | 99 |  |
| Depreciation and amortization | 1080 | 64 |  |
| Distribution expenses | 1141 | 99 |  |
| Other segment items (a) | 118 | 4 |  |
| **Business Segment Operating Profit (Losses)** | 839 | 80 | 919 |
| Interest Expense, net |  |  | 230 |
| Adjustment for less than wholly owned subsidiaries (b) |  |  | (3) |
| Corporate expenses, net |  |  | 135 |
| Net special items (i) |  |  | 101 |
| Non-operating pension (income) expense |  |  | 54 |
| **Earnings (loss) from continuing operations before income** <br>**taxes and equity earnings (losses)**<br>|  |  | $402 |

---

(i) Includes $81 million for severance and other costs associated with our mill strategic actions, charges of $36 million for environmental reserve

adjustments and other income of $16 million.

***Assets***

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | 2024 |
| Packaging Solutions North America | **$16498** | $14501 |
| Packaging Solutions EMEA | **15439** | 1276 |
| Corporate and other (c) | **6027** | 7023 |
| **Assets** | **$37964** | $22800 |

---

***Capital Expenditures***

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | 2024 | 2023 |
| Packaging Solutions North America | **$1115** | $710 | $859 |
| Packaging Solutions EMEA | **573** | 53 | 69 |
| Subtotal | **1688** | 763 | 928 |
| Corporate and other (d) | **169** | 158 | 213 |
| **Capital Expenditures** | **$1857** | $921 | $1141 |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**INFORMATION BY GEOGRAPHIC AREA**

***Net Sales (e)***

---

| | | | |
|:---|:---|:---|:---|
| *In millions* | **2025** | 2024 | 2023 |
| United States (f) | **$14439** | $13686 | $13777 |
| EMEA | **8451** | 1355 | 1398 |
| Pacific Rim and Asia | **31** | 64 | 37 |
| Americas, other than U.S. | **713** | 730 | 821 |
| **Net Sales** | **$23634** | $15835 | $16033 |

---

***Long-Lived Assets (g)***

---

| | | |
|:---|:---|:---|
| *In millions* | **2025** | 2024 |
| United States | **$7247** | $7173 |
| EMEA | **6998** | 634 |
| Americas, other than U.S. | **215** | 126 |
| **Long-Lived Assets** | **$14460** | $7933 |

---

*(a)Other segment items includes Taxes other than payroll.*

*(b)Operating profits for industry segments include each segment's percentage share of the profits of subsidiaries included in that segment* 

*that are less than wholly-owned. The pre-tax earnings for these subsidiaries is added here to present consolidated earnings from* 

*continuing operations before income taxes and equity earnings.*

*(c)Includes Corporate assets and held for sale assets related to the GCF business.*

*(d)Includes capital expenditures related to Corporate and the GCF business.*

*(e)Net sales are attributed to countries based on the location of the seller.*

*(f)Export sales to unaffiliated customers were $965 million in 2025, $1.1 billion in 2024 and $919 million in 2023.*

*(g)Long-Lived Assets includes Forestlands and Plants, Properties and Equipment, net.* 

**<u>[NOTE 22](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2327)</u><u>[SUBSEQUENT EVENTS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2327)</u>**

On January 29, 2026, the Company announced a plan to create two independent, publicly traded companies

through the separation of its PS NA and PS EMEA businesses. The PS NA business will be comprised of the

Company's current business in North America, including both legacy IP and DS Smith assets, and the PS EMEA

business will be comprised of both legacy DS Smith and IP assets in EMEA. The separation is expected to be

structured as a spin-off of the PS EMEA businesses to shareholders and is expected to be completed in 12-15

months, subject to the satisfaction of certain customary conditions. No assurance can be provided regarding the

ultimate timing or structure of the proposed separation or its eventual completion.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[INTERIM FINANCIAL RESULTS (UNAUDITED)](#i5ba32aeab3f947f28a9e9ed735c0c7c4_2388)</u>**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *In millions, except per share amounts and* <br>*stock prices*<br>| **1**<sup>st</sup><br>**Quarter**<br>|  | **2**<sup>nd</sup><br>**Quarter**<br>|  | **3**<sup>rd</sup><br>**Quarter**<br>|  | **4th** <br>**Quarter**<br>|  | **Year** |  |
| **2025** |  |  |  |  |  |  |  |  |  |  |
| **Net sales** | **$5264** |  | **$6142** |  | **$6222** |  | **$6006** |  | **$23634** |  |
| **Earnings (loss) from continuing** <br>**operations before income taxes and** <br>**equity earnings (losses)**<br>| **(155)** | **(a)** | **116** | **(a)**  | **(675)** | **(a)**  | **(2654)** | **(a)**  | **(3368)** | **(a)** |
| **Discontinued operations, net of taxes** | **19** | **(b)** | **—** | **(b)** | **(676)** | **(b)** | **(21)** | **(b)** | **(678)** | **(b)** |
| **Net earnings (loss)**  | **(105)** | **(a-c)** | **75** | **(a-c)** | **(1102)** | **(a-c)** | **(2384)** | **(a-c)** | **(3516)** | **(a-c)** |
| **Basic earnings (loss) per share:** |  |  |  |  |  |  |  |  |  |  |
| **Earnings (loss) from continuing** <br>**operations**<br>| **$(0.28)** |  | **$0.14** |  | **$(0.81)** |  | **$(4.48)** |  | **$(5.61)** |  |
| **Discontinued operations** | **0.04** |  | **—** |  | **(1.28)** |  | **(0.04)** |  | **(1.34)** |  |
| **Net earnings (loss)** | **(0.24)** |  | **0.14** |  | **(2.09)** |  | **(4.52)** |  | **(6.95)** |  |
| **Diluted earnings (loss) per share:** |  |  |  |  |  |  |  |  |  |  |
| **Earnings (loss) from continuing** <br>**operations**<br>| **(0.28)** |  | **0.14** |  | **(0.81)** |  | **(4.48)** |  | **(5.61)** |  |
| **Discontinued operations** | **0.04** |  | **—** |  | **(1.28)** |  | **(0.04)** |  | **(1.34)** |  |
| **Net earnings (loss)** | **(0.24)** |  | **0.14** |  | **(2.09)** |  | **(4.52)** |  | **(6.95)** |  |
| **Dividends per share of common stock** | **0.4625** |  | **0.4625** |  | **0.4625** |  | **0.4625** |  | **1.8500** |  |
| 2024 |  |  |  |  |  |  |  |  |  |  |
| Net sales | $3915 |  | $4019 |  | $3979 |  | $3922 |  | $15835 |  |
| Earnings (loss) from continuing operations <br>before income taxes and equity earnings <br>(losses)<br>| 105 | (d) | 146 | (d) | 5 | (d) | 113 | (d) | 369 | (d) |
| Discontinued operations, net of taxes | (17) | (e) | 45 | (e) | 39 | (e) | (235) | (e) | (168) | (e) |
| Net earnings (loss) | 56 | (d-f) | 498 | (d-f) | 150 | (d-f) | (147) | (d-f) | 557 | (d-f) |
| Basic earnings (loss) per share: |  |  |  |  |  |  |  |  |  |  |
| Earnings (loss) from continuing operations | $0.21 |  | $1.30 |  | $0.32 |  | $0.25 |  | $2.09 |  |
| Discontinued operations | (0.05) |  | 0.13 |  | 0.11 |  | (0.67) |  | (0.49) |  |
| Net earnings (loss) | 0.16 |  | 1.43 |  | 0.43 |  | (0.42) |  | 1.60 |  |
| Diluted earnings (loss) per share: |  |  |  |  |  |  |  |  |  |  |
| Earnings (loss) from continuing operations | 0.21 |  | 1.28 |  | 0.31 |  | 0.25 |  | 2.05 |  |
| Discontinued operations | (0.05) |  | 0.13 |  | 0.11 |  | (0.67) |  | (0.48) |  |
| Net earnings (loss) | 0.16 |  | 1.41 |  | 0.42 |  | (0.42) |  | 1.57 |  |
| Dividends per share of common stock | 0.4625 |  | 0.4625 |  | 0.4625 |  | 0.4625 |  | 1.8500 |  |

---

*Note: International Paper's common shares are listed on the New York Stock Exchange (IP) and London Stock Exchange (IPC).*

*Note: Since basic and diluted earnings per share are computed independently for each period and category, full year per share amounts may not* 

*equal the sum of the four quarters. In addition, the unaudited selected consolidated financial data are derived from our audited consolidated* 

*financial statements and have been revised to reflect discontinued operations.* 

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

*Footnotes to Interim Financial Results*

*(a) Includes the following pre-tax charges (gains):*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** |
| *In millions* | **Q1** | **Q2** | **Q3** | **Q4** | **Year** |
| DS Smith combination costs (benefits) | **$221** | **$32** | **$(26)** | **$10** | **$237** |
| Severance and other costs | **83** | **39** | **342** | **162** | **626** |
| Net (gain) losses on sales and impairments of businesses | **—** | **(51)** | **16** | **10** | **(25)** |
| Net (gain) losses on sale and impairments of fixed assets | **(67)** | **—** | **15** | **(18)** | **(70)** |
| Environmental remediation reserve adjustments | **—** | **—** | **7** | **(5)** | **2** |
| PS EMEA goodwill impairment | **—** | **—** | **—** | **2467** | **2467** |
| Non-operating pension (income) expense | **3** | **(5)** | **(4)** | **(6)** | **(12)** |
| **Total** | **$240** | **$15** | **$350** | **$2620** | **$3225** |

---

*(b) Includes the operating earnings of the Global Cellulose Fibers business for the full year. Also includes the following charges (gains):* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** |
| *In millions* | **Q1** | **Q2** | **Q3** | **Q4** | **Year** |
| Global Cellulose Fibers transaction costs | **$12** | **$15** | **$15** | **$10** | **$52** |
| Net loss on impairment of business | **—** | **—** | **1008** | **62** | **1070** |
| Severance and other costs (benefits) | **—** | **—** | **(5)** | **(3)** | **(8)** |
| **Total** | **$12** | **$15** | **$1018** | **$69** | **$1114** |

---

*(c) Includes the following tax expenses (benefits):* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2025** | **2025** | **2025** |
| *In millions* | **Q1** | **Q2** | **Q3** | **Q4** | **Year** |
| Tax benefit related to capital losses | **$—** | **$—** | **$(62)** | **$—** | **$(62)** |
| Tax benefit related to PS EMEA goodwill impairment | **—** | **—** | **—** | **(271)** | **(271)** |
| Tax impact of other special items | **(42)** | **3** | **(87)** | **(31)** | **(157)** |
| Tax impact of non-operating pension (income) expense | **(1)** | **1** | **1** | **2** | **3** |
| **Total** | **$(43)** | **$4** | **$(148)** | **$(300)** | **$(487)** |

---

*(d) Includes the following pre-tax charges (gains):*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 2024 | 2024 | 2024 | 2024 | 2024 |
| *In millions* | Q1 | Q2 | Q3 | Q4 | Year |
| DS Smith combination costs (benefits) | $5 | $17 | $26 | $38 | $86 |
| Severance and other costs | 4 |  | 55 | 45 | 104 |
| Legal reserve adjustments | 10 |  |  |  | 10 |
| Net (gain) losses on sale and impairments of fixed assets | 5 | (5) |  | (59) | (59) |
| Interest related to settlement of tax audits | (10) |  |  |  | (10) |
| Strategic advisory fees |  | 12 | 25 |  | 37 |
| Environmental remediation adjustments |  | 25 |  | 35 | 60 |
| Third party warehouse fire |  |  | 13 |  | 13 |
| Italy antitrust |  |  | (6) |  | (6) |
| Non-operating pension (income) expense | (12) | (10) | (12) | (8) | (42) |
| **Total** | $2 | $39 | $101 | $51 | $193 |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

*(e) Includes the operating earnings of the Global Cellulose Fibers business for the full year. Also includes the following charges (gains):* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 2024 | 2024 | 2024 | 2024 | 2024 |
| *In millions* | Q1 | Q2 | Q3 | Q4 | Year |
| Global Cellulose Fibers transaction costs | $— | $— | $— | $5 | $5 |
| Severance and other costs (benefits) | 4 |  | 1 | 118 | 123 |
| **Total** | $4 | $— | $1 | $123 | $128 |

---

*(f) Includes the following tax expenses (benefits):* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 2024 | 2024 | 2024 | 2024 | 2024 |
| *In millions* | Q1 | Q2 | Q3 | Q4 | Year |
| Tax benefit related to legal entity restructuring | $— | $(338) | $(78) | $— | $(416) |
| Tax impact of other special items | (3) | (8) | (24) | (6) | (41) |
| Tax impact of non-operating pension (income) expense | 3 | 2 | 3 | 2 | 10 |
| **Total** | $— | $(344) | $(99) | $(4) | $(447) |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL](#i5ba32aeab3f947f28a9e9ed735c0c7c4_217)</u>** 

**<u>[DISCLOSURE](#i5ba32aeab3f947f28a9e9ed735c0c7c4_217)</u>**

None.

**<u>[ITEM 9A. CONTROLS AND PROCEDURES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_220)</u>**

As of December 31, 2025, an evaluation was carried out under the supervision and with the participation of the

Company's management, including our principal executive officer and principal financial officer, of the effectiveness

of our disclosure controls and procedures (as that term is defined in Rule 13a-15(f) and 15d-15(f) of the Exchange

Act). Based upon this evaluation, our principal financial officer and principal executive officer have concluded that

the Company's disclosure controls and procedures were effective as of December 31, 2025.

In accordance with SEC guidance, management's assessment of the effectiveness of the Company's internal

control over financial reporting as of December 31, 2025, excluded DS Smith, which was acquired by the Company

on January 31, 2025. The total assets and total net sales of DS Smith excluded from management's assessment of

internal control over financial reporting constituted approximately 43% of the Company's total assets as of

December 31, 2025 and approximately 33% of the Company's total net sales for the year ended December 31,

2025, respectively.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

On January 31, 2025, the Company acquired DS Smith. The Company is currently in the process of incorporating

the internal controls and procedures for DS Smith into the Company's Internal Controls over Financial Reporting

("ICFR"). At the time of the acquisition, DS Smith was not subject to Securities and Exchange Commission ("SEC")

requirements under Section 404 of the Sarbanes Oxley Act.

Through AICPA audits performed as part of the preparation of the acquisition proxy statement, the independent

auditors identified material weaknesses in DS Smith's ICFR environment including Information Technology General

Controls ("ITGCs") in fiscal years ending April 30, 2022, 2023, and 2024. As noted above, Company management

did not include DS Smith in its assessment of internal control over financial reporting as of December 31, 2025.

Management continues to evaluate the ITGC deficiencies within the acquired DS Smith IT landscape and the

implications to our internal control environment. There were no material errors in the financial results or balances

identified and there was no change in previously released financial results required as a result of any identified

control deficiencies.

Management has initiated a redesign of ITGCs across DS Smith systems, including enhancing governance over

user access and system changes, by implementing additional controls where historically absent, and by delivering

training across DS Smith to further educate and upskill control and process owners. Management intends to

implement the redesigned control framework in 2026.

Except as noted above, there have been no other changes in our ICFR during the quarter ended December 31,

2025, that have materially affected, or are reasonably likely to materially affect, our ICFR.

See <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u> of this Form 10-K for management's annual report on

our internal control over financial reporting and the attestation report of our independent public accounting firm.

**<u>[ITEM 9B. OTHER INFORMATION](#i5ba32aeab3f947f28a9e9ed735c0c7c4_223)</u>**

(a) Not applicable.

(b) During the quarter ended December 31, 2025, no director or Section 16 officer adopted or terminated any Rule

10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements, as defined in Item 408 of Regulation S-K.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_226)</u>**

None.

**<u>[PART III.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_229)</u>**

**<u>[ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](#i5ba32aeab3f947f28a9e9ed735c0c7c4_232)</u>**

Information concerning our directors is hereby incorporated by reference to our definitive proxy statement for the

Annual Meeting of Shareowners (the "Proxy Statement") to be held in May 2026 that will be filed with the U.S.

Securities and Exchange Commission ("SEC") within 120 days of the close of our fiscal year. The Audit and Finance

Committee of the Board of Directors has at least one member who is a financial expert, as that term is defined in

Item 401(d)(5) of Regulation S-K. Further information concerning the composition of the Audit and Finance

Committee is hereby incorporated by reference to the Proxy Statement. Information with respect to our executive

officers is set forth in <u>[Part I, Item 1](#i5ba32aeab3f947f28a9e9ed735c0c7c4_13)</u> of this Form 10-K under the caption, <u>["Information About Our Executive Officers."](#i5ba32aeab3f947f28a9e9ed735c0c7c4_46)</u>

Executive officers of International Paper are elected to hold office until the next annual meeting of the Board of

Directors following the annual meeting of shareholders and, until the election of successors, subject to removal by

the Board.

The Company's Code of Conduct (the "Code") is applicable to all employees of the Company, including the CEO

and senior financial officers, as well as the Board of Directors. We disclose any amendments to our Code and any

waivers from a provision of our Code granted to our directors, CEO and senior financial officers on our website

within four business days following such amendment or waiver. To date, no waivers of the Code have been granted.

We have adopted an Insider Trading Policy applicable to our directors, officers, and employees, and have

implemented processes for the Company, that we believe are reasonably designed to promote compliance with

insider trading laws, rules, and regulations, the UK Market Abuse Regulation, and the NYSE listing standards.

Our Insider Trading Policy prohibits our employees and related persons and entities from trading in securities of

International Paper and other companies while in possession of material, non-public information. Our Insider

Trading Policy also prohibits our employees from disclosing material, non-public information regarding International

Paper, or any other publicly traded company, to others who may trade on the basis of that information. In addition,

with regard to the Company's trading in its own securities, it is the Company's policy to comply with the federal

securities laws and the applicable exchange listing requirements. A copy of our Insider Trading Policy is filed as

Exhibit 19 to this Form 10-K.

We make our Corporate Governance Guidelines, our Code, our Insider Trading Policy, our Compensation Clawback

Policy, and the Charters of our Audit and Finance Committee, MDCC, Governance Committee and PPE Committee

available free of charge on our website (www.internationalpaper.com), and in print to any shareholder who requests

them. Our Corporate Governance Statement as required under the FCA's Disclosure Guidance and Transparency

Rule ("DTR") 7.2.2 is available on the Governance page of the Investors tab of our website at

www.internationalpaper.com under Governance Documents. In addition, requests for printed copies may be directed

to:

International Paper Company

Attn: Mr. Joseph R. Saab, Corporate Secretary

6400 Poplar Avenue

Memphis, TN 38197

Information with respect to compliance with Section 16(a) of the Exchange Act and our corporate governance is

hereby incorporated by reference to our Proxy Statement.

**<u>[ITEM 11. EXECUTIVE COMPENSATION](#i5ba32aeab3f947f28a9e9ed735c0c7c4_235)</u>**

Information with respect to the compensation of executives and directors of the Company is hereby incorporated by

reference to our definitive proxy statement that will be filed with the SEC within 120 days of the close of our fiscal

year.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED](#i5ba32aeab3f947f28a9e9ed735c0c7c4_238)</u>** 

**<u>[STOCKHOLDER MATTERS](#i5ba32aeab3f947f28a9e9ed735c0c7c4_238)</u>**

A description of the security ownership of certain beneficial owners and management and equity compensation plan

information is hereby incorporated by reference to our definitive proxy statement that will be filed with the SEC

within 120 days of the close of our fiscal year.

**<u>[ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#i5ba32aeab3f947f28a9e9ed735c0c7c4_241)</u>**

A description of applicable information with respect to certain relationships and related transactions and director

independence matters, is hereby incorporated by reference to our definitive proxy statement that will be filed with

the SEC within 120 days of the close of our fiscal year.

**<u>[ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_244)</u>**

Information with respect to fees paid to, and services rendered by, our independent registered public accounting

firm, and our policies and procedures for pre-approving those services, is hereby incorporated by reference to our

definitive proxy statement that will be filed with the SEC within 120 days of the close of our fiscal year.

**<u>[PART IV.](#i5ba32aeab3f947f28a9e9ed735c0c7c4_247)</u>**

**<u>[ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_250)</u>**

(1)Financial Statements – See <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>.

(2)Financial Statement Schedules – The following additional financial data should be read in conjunction with the

consolidated financial statements in <u>[Item 8. Financial Statements and Supplementary Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_127)</u>. Schedules not

included with this additional financial data have been omitted because they are not applicable, or the required

information is shown in the consolidated financial statements or the notes thereto.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[Additional Financial Data](#i5ba32aeab3f947f28a9e9ed735c0c7c4_253)</u>**

**2025, 2024 and 2023** 

---

| | |
|:---|:---|
| **2** | **Plan of acquisition, reorganization, arrangement, liquidation or succession** |
| (2.1) | <u>[Transaction Agreement, dated October 23, 2017, by and among the Company, Graphic Packaging](https://www.sec.gov/Archives/edgar/data/51434/000119312517317324/d476151dex21.htm)</u> <br><u>[Holding Company, Gazelle Newco LLC and Graphic Packaging International, Inc. (incorporated by](https://www.sec.gov/Archives/edgar/data/51434/000119312517317324/d476151dex21.htm)</u> <br><u>[reference to Exhibit 2.1 to the Company's Current Report on Form 8-K dated October 24, 2017).](https://www.sec.gov/Archives/edgar/data/51434/000119312517317324/d476151dex21.htm)</u><br>|
| (2.2) | <u>[Separation and Distribution Agreement, dated as of September 29, 2021, by and between](https://www.sec.gov/Archives/edgar/data/51434/000119312521288895/d222775dex21.htm)</u> <br><u>[International Paper Company and Sylvamo Corporation (incorporated by reference to Exhibit 2.1 to](https://www.sec.gov/Archives/edgar/data/51434/000119312521288895/d222775dex21.htm)</u> <br><u>[the Company's' Current Report on Form 8-K dated October 1, 2021).](https://www.sec.gov/Archives/edgar/data/51434/000119312521288895/d222775dex21.htm)</u><br>|
| (2.3) | <u>[Rule 2.7 Announcement dated April 16, 2024 (incorporated by reference to Exhibit 2.1 to the](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000051434/000119312524097349/d827360d8k.htm)</u> <br><u>[Company's Current Report on Form 8-K dated April 16, 2024).](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000051434/000119312524097349/d827360d8k.htm)</u><br>|
| (2.4) | <u>[Co-operation Agreement between International Paper Company and DS Smith, Plc (incorporated by](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000051434/000119312524097349/d827360d8k.htm)</u> <br><u>[reference to Exhibit 2.1 to the Company's Current Report on Form 8-K dated April 16, 2024).](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000051434/000119312524097349/d827360d8k.htm)</u><br>|

---

---

| | |
|:---|:---|
| **3** | **Articles of Incorporation and Bylaws** |
| (3.1) | <u>[Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the](https://www.sec.gov/Archives/edgar/data/51434/000119312513225921/d538445dex31.htm)</u> <br><u>[Company's Current Report on Form 8-K dated May 13, 2013).](https://www.sec.gov/Archives/edgar/data/51434/000119312513225921/d538445dex31.htm)</u><br>|
| (3.2) | <u>[By-laws of the Company, as amended through May 9, 2023 (incorporated by reference to Exhibit 3.1](https://www.sec.gov/Archives/edgar/data/51434/000119312523139471/d449723dex31.htm)</u> <br><u>[to the Company's Current Report on Form 8-K dated May 9, 2023).](https://www.sec.gov/Archives/edgar/data/51434/000119312523139471/d449723dex31.htm)</u><br>|

---

---

| | |
|:---|:---|
| **4** | **Instruments defining the rights of securities holders, including indentures** |
| (4.1) | <u>[Indenture, dated as of April 12, 1999, between the Company and The Bank of New York, as Trustee](https://www.sec.gov/Archives/edgar/data/51434/000095010300000795/0000950103-00-000795-0002.txt)</u> <br><u>[(incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated](https://www.sec.gov/Archives/edgar/data/51434/000095010300000795/0000950103-00-000795-0002.txt)</u> <br><u>[June 16, 2000).](https://www.sec.gov/Archives/edgar/data/51434/000095010300000795/0000950103-00-000795-0002.txt)</u><br>|
| (4.2) | <u>[Supplemental Indenture (including the form of Notes), dated as of June 4, 2008, between the](https://www.sec.gov/Archives/edgar/data/51434/000119312508127766/dex41.htm)</u> <br><u>[Company and The Bank of New York, as Trustee (incorporated by reference to Exhibit 4.1 to the](https://www.sec.gov/Archives/edgar/data/51434/000119312508127766/dex41.htm)</u> <br><u>[Company's Current Report on Form 8-K dated June 4, 2008).](https://www.sec.gov/Archives/edgar/data/51434/000119312508127766/dex41.htm)</u><br>|
| (4.3) | <u>[Supplemental Indenture (including the form of Notes), dated as of December 7, 2009, between the](https://www.sec.gov/Archives/edgar/data/51434/000119312509248267/dex41.htm)</u> <br><u>[Company and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by](https://www.sec.gov/Archives/edgar/data/51434/000119312509248267/dex41.htm)</u> <br><u>[reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated December 7, 2009).](https://www.sec.gov/Archives/edgar/data/51434/000119312509248267/dex41.htm)</u><br>|
| (4.4) | <u>[Supplemental Indenture (including the form of Notes), dated as of November 16, 2011, between the](https://www.sec.gov/Archives/edgar/data/51434/000119312511313871/d255944dex41.htm)</u> <br><u>[Company and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by](https://www.sec.gov/Archives/edgar/data/51434/000119312511313871/d255944dex41.htm)</u> <br><u>[reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated November 16, 2011).](https://www.sec.gov/Archives/edgar/data/51434/000119312511313871/d255944dex41.htm)</u><br>|
| (4.5) | <u>[Supplemental Indenture (including the form of Notes), dated as of June 10, 2014, between the](https://www.sec.gov/Archives/edgar/data/51434/000119312514231593/d740241dex41.htm)</u> <br><u>[Company and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by](https://www.sec.gov/Archives/edgar/data/51434/000119312514231593/d740241dex41.htm)</u> <br><u>[reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated June 10, 2014).](https://www.sec.gov/Archives/edgar/data/51434/000119312514231593/d740241dex41.htm)</u><br>|
| (4.6) | <u>[Supplemental Indenture (including the form of Notes), dated as of May 26, 2015, between the](https://www.sec.gov/Archives/edgar/data/51434/000119312515200130/d931315dex41.htm)</u> <br><u>[Company and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by](https://www.sec.gov/Archives/edgar/data/51434/000119312515200130/d931315dex41.htm)</u> <br><u>[reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated May 26, 2015).](https://www.sec.gov/Archives/edgar/data/51434/000119312515200130/d931315dex41.htm)</u><br>|
| (4.7) | <u>[Supplemental Indenture (including the form of Notes), dated as of August 11, 2016, between the](https://www.sec.gov/Archives/edgar/data/51434/000119312516679274/d208430dex41.htm)</u> <br><u>[Company and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by](https://www.sec.gov/Archives/edgar/data/51434/000119312516679274/d208430dex41.htm)</u> <br><u>[reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated August 11, 2016).](https://www.sec.gov/Archives/edgar/data/51434/000119312516679274/d208430dex41.htm)</u><br>|
| (4.8) | <u>[Supplemental Indenture (including the form of Notes), dated as of August 9, 2017, between the](https://www.sec.gov/Archives/edgar/data/51434/000119312517252542/d434666dex41.htm)</u> <br><u>[Company and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by](https://www.sec.gov/Archives/edgar/data/51434/000119312517252542/d434666dex41.htm)</u> <br><u>[reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated August 9, 2017.](https://www.sec.gov/Archives/edgar/data/51434/000119312517252542/d434666dex41.htm)</u><br>|
| (4.10) | In accordance with Item 601 (b)(4)(iii)(A) of Regulation S-K, certain instruments respecting long-term <br>debt of the Company have been omitted but will be furnished to the SEC upon request.<br>|
| (4.11) | <u>[Description of Securities\*.](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-20241231exhibit411.htm)</u> |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | |
|:---|:---|
| **10** | **Material contracts** |
| (10.1) | <u>[Amended and Restated 2009 Incentive Compensation Plan ("ICP") (corrected version of a previously](https://www.sec.gov/Archives/edgar/data/51434/000005143419000015/ip-20190331exhibit101inter.htm)</u> <br><u>[filed exhibit) (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form](https://www.sec.gov/Archives/edgar/data/51434/000005143419000015/ip-20190331exhibit101inter.htm)</u> <br><u>[10-Q for the quarter ended March 31, 2019). +](https://www.sec.gov/Archives/edgar/data/51434/000005143419000015/ip-20190331exhibit101inter.htm)</u><br>|
| (10.1.i)\* | <u>[2024 Long-Term Incentive Compensation Plan (amended as of December 8, 2025 to reflect revised](ip-20251231exhibit101i.htm)</u> <br><u>[retirement age). +](ip-20251231exhibit101i.htm)</u><br>|
| (10.2)\* | <u>[International Paper Company Restricted Stock and Deferred Compensation Plan for Non-Employee](ip-20251231exhibit102.htm)</u> <br><u>[Directors, Amended and Restated as of February 10, 2026. +](ip-20251231exhibit102.htm)</u> <br>|
| (10.2.i)\* | <u>[Form of Notice of Award under the International Paper Company Restricted Stock and Deferred](ip-20251231exhibit102i.htm)</u> <br><u>[Compensation Plan for Non-Employee Directors – Restricted Stock Units (cash settled). +](ip-20251231exhibit102i.htm)</u><br>|
| (10.2.ii)\* | <u>[Form of Notice of Award under the International Paper Company Restricted Stock and Deferred](ip-20251231exhibit102ii.htm)</u> <br><u>[Compensation Plan for Non-Employee Directors – Restricted Stock (stock settled). +](ip-20251231exhibit102ii.htm)</u><br>|
| (10.3.) | <u>[Form of Notice of Award under the Recognition Plan Restricted Stock Unit Award Agreement (stock](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit104.htm)</u> <br><u>[settled) (incorporated by reference to Exhibit 10.4 to the Company's Annual Report on Form 10-K for](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit104.htm)</u> <br><u>[the fiscal year ended December 31, 2024). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit104.htm)</u><br>|
| (10.3.i) | <u>[Form of Notice of Award under the Recognition Plan Restricted Stock Unit Award Agreement (cash](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit105.htm)</u> <br><u>[settled) (incorporated by reference to Exhibit 10.5 to the Company's Annual Report on Form 10-K for](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit105.htm)</u> <br><u>[the fiscal year ended December 31, 2023). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit105.htm)</u><br>|
| (10.3.ii)\* | <u>[Form of Notice of Award under the Recognition Plan Restricted Stock Unit Award Agreement (stock](ip-20251231exhibit103ii.htm)</u> <br><u>[settled) providing for pro-rata treatment of awards in the event of a divestiture. +](ip-20251231exhibit103ii.htm)</u><br>|
| (10.3.iii)\* | <u>[Form of Notice of Award under the Recognition Plan Restricted Stock Unit Award Agreement (cash](ip-20251231exhibit103iii.htm)</u> <br><u>[settled) providing for pro-rata treatment of awards in the event of divestiture. +](ip-20251231exhibit103iii.htm)</u><br>|
| (10.4) | <u>[Form of Performance Share Plan award certificate (incorporated by reference to Exhibit 10.6 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143418000008/ip-20171231exhibit106formo.htm)</u> <br><u>[Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017). +](https://www.sec.gov/Archives/edgar/data/51434/000005143418000008/ip-20171231exhibit106formo.htm)</u><br>|
| (10.4.i) | <u>[Form of Notice of Award under the Long-Term Incentive Plan Performance Stock Unit Award](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1061.htm)</u> <br><u>[Agreement (cash settled) (incorporated by reference to Exhibit 10.6.1 to the Company's Annual Report](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1061.htm)</u> <br><u>[on Form 10-K for the fiscal year ended December 31, 2023). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1061.htm)</u> <br>|
| (10.4.i(a)) | <u>[Form of Notice of Award under the Long-Term Incentive Plan Performance Stock Unit Award](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-20241231exhibit1061a.htm)</u> <br><u>[Agreement (cash settled, 100% total shareholder return performance metrics) (incorporated by](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-20241231exhibit1061a.htm)</u> <br><u>[reference to Exhibit 10.6.1(a) to the Company's Annual Report on Form 10-K for the fiscal year ended](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-20241231exhibit1061a.htm)</u> <br><u>[December 31, 2024. +](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-20241231exhibit1061a.htm)</u> <br>|
| (10.4.ii) | <u>[Form of Notice of Award under the Long-Term Incentive Plan Performance Stock Unit Award](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1062.htm)</u> <br><u>[Agreement (stock settled) (incorporated by reference to Exhibit 10.6.2 of the Company's Annual](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1062.htm)</u> <br><u>[Report on Form 10-K for the fiscal year ended December 31, 2023). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1062.htm)</u><br>|
| (10.4.ii(a)) | <u>[Form of Notice of Award under the Long-Term Incentive Plan Performance Stock Unit Award](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-20241231exhibit1062a.htm)</u> <br><u>[Agreement (stock settled, 100% total shareholder return performance metrics) (incorporated by](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-20241231exhibit1062a.htm)</u> <br><u>[reference to Exhibit 10.6.2(a) of the Company's Annual Report on Form 10-K for the fiscal year ended](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-20241231exhibit1062a.htm)</u> <br><u>[December 31, 2024). +](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-20241231exhibit1062a.htm)</u><br>|
| (10.5) | <u>[Form of Notice of Award under the Long-Term Incentive Plan Restricted Stock Unit Award Agreement](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1063.htm)</u> <br><u>[(cash settled) (incorporated by reference to Exhibit 10.6.3 of the Company's Annual Report on Form](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1063.htm)</u> <br><u>[10-K for the fiscal year ended December 31, 2023). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1063.htm)</u><br>|
| (10.5.i) | <u>[Form of Notice of Award under the Long-Term Incentive Plan Restricted Stock Unit Award Agreement](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1064.htm)</u> <br><u>[(stock settled) (incorporated by reference to Exhibit 10.6.4 of the Company's Annual Report on Form](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1064.htm)</u> <br><u>[10-K for the fiscal year ended December 31, 2023). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1064.htm)</u><br>|
| (10.6) | <u>[Notice of Award under the Recognition Award Plan Restricted Stock Units (stock settled) between](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit103noticeofawardrec.htm)</u> <br><u>[International Paper Company and W. Thomas Hamic, providing for accelerated vesting, accepted](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit103noticeofawardrec.htm)</u> <br><u>[June 26, 2024 (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit103noticeofawardrec.htm)</u> <br><u>[10-Q for the quarter ended June 30, 2024).+](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit103noticeofawardrec.htm)</u> <br>|
| (10.7) | <u>[Employment Offer Letter dated March 14, 2024, between International Paper Company and Andrew K.](https://www.sec.gov/Archives/edgar/data/51434/000119312524070875/d807996dex101.htm)</u> <br><u>[Silvernail (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K](https://www.sec.gov/Archives/edgar/data/51434/000119312524070875/d807996dex101.htm)</u> <br><u>[dated March 19, 2024). +](https://www.sec.gov/Archives/edgar/data/51434/000119312524070875/d807996dex101.htm)</u><br>|

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | |
|:---|:---|
| (10.7.i) | <u>[Addendum to Terms and Conditions of Offer of Employment Agreement dated October 30, 2024, by](https://www.sec.gov/Archives/edgar/data/51434/000005143424000067/ip-20240930exhibit101.htm)</u> <br><u>[and between Andrew K. Silvernail and International Paper Company (incorporated by reference to](https://www.sec.gov/Archives/edgar/data/51434/000005143424000067/ip-20240930exhibit101.htm)</u> <br><u>[Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30,](https://www.sec.gov/Archives/edgar/data/51434/000005143424000067/ip-20240930exhibit101.htm)</u> <br><u>[2024). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000067/ip-20240930exhibit101.htm)</u><br>|
| (10.7.ii) | <u>[Notice of Award under the 2024 Long-Term Incentive Plan Performance Stock Unit Inducement Award](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit101inducementawardp.htm)</u> <br><u>[(stock settled) between International Paper Company and Andrew K. Silvernail, accepted May 7, 2024](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit101inducementawardp.htm)</u> <br><u>[(incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit101inducementawardp.htm)</u> <br><u>[quarter ended June 30, 2024). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit101inducementawardp.htm)</u><br>|
| (10.7.iii) | <u>[Form of Notice of Award under the Long-Term Incentive Plan Performance Stock Units (stock settled)](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit102formofnoticeofaw.htm)</u> <br><u>[between International Paper Company and Andrew K. Silvernail providing for retirement eligibility at](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit102formofnoticeofaw.htm)</u> <br><u>[60 years of age regardless of service (incorporated by reference to Exhibit 10.2 to the Company's](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit102formofnoticeofaw.htm)</u> <br><u>[Quarterly Report on Form 10-Q for the quarter ended June 30, 2024). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit102formofnoticeofaw.htm)</u><br>|
| (10.7.iv) | <u>[Form of Notice of Award under the Long-Term Incentive Plan Performance Stock Units (stock settled)](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-2024123exhibit1043.htm)</u> <br><u>[between International Paper Company and Andrew K. Silvernail providing for retirement eligibility at](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-2024123exhibit1043.htm)</u> <br><u>[60 years of age regardless of service and 100% total shareholder return performance metrics. \* +](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-2024123exhibit1043.htm)</u><br>|
| (10.7.v) | <u>[Time Sharing Agreement dated May 14, 2024 (and effective May 1, 2024) by and between Andrew K](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit105timesharingagree.htm)</u> <br><u>[Silvernail and International Paper Company (incorporated by reference to Exhibit 10.5 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit105timesharingagree.htm)</u> <br><u>[Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit105timesharingagree.htm)</u><br>|
| (10.7.v(a)) | <u>[Notice of Termination of Time Sharing Agreement for Andrew K. Silvernail dated May 13, 2025](https://www.sec.gov/Archives/edgar/data/51434/000005143425000048/ip-20250630exhibit101.htm)</u> <br><u>[(incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the](https://www.sec.gov/Archives/edgar/data/51434/000005143425000048/ip-20250630exhibit101.htm)</u> <br><u>[quarter ended June 30, 2025). +](https://www.sec.gov/Archives/edgar/data/51434/000005143425000048/ip-20250630exhibit101.htm)</u><br>|
| (10.7.v(b)) | <u>[Time Sharing Agreement dated June 13, 2025 by and between Andrew K. Silvernail and International](https://www.sec.gov/Archives/edgar/data/51434/000005143425000048/ip-20250630exhibit102.htm)</u> <br><u>[Paper Company reflecting use of leased aircraft (incorporated by reference to Exhibit 10.2 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143425000048/ip-20250630exhibit102.htm)</u> <br><u>[Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025). +](https://www.sec.gov/Archives/edgar/data/51434/000005143425000048/ip-20250630exhibit102.htm)</u><br>|
| (10.7.v(c)) | <u>[Change-in-Control Agreement dated May 6, 2024, by and between Andrew K. Silvernail and](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit106changeincontrola.htm)</u> <br><u>[International Paper Company providing for retirement eligibility at 60 years of age regardless of](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit106changeincontrola.htm)</u> <br><u>[service and cash severance payment equal to 2.99 times the sum of base salary plus target bonus](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit106changeincontrola.htm)</u> <br><u>[(incorporated by reference to Exhibit 10.6 to the Company's Quarterly Report on Form 10-Q for the](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit106changeincontrola.htm)</u> <br><u>[quarter ended June 30, 2024). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000053/exhibit106changeincontrola.htm)</u><br>|
| (10.8) | <u>[Employment Offer Letter dated February 26, 2025, between International Paper Company and Lance](https://www.sec.gov/Archives/edgar/data/51434/000005143425000048/ip-20250630exhibit103.htm)</u> <br><u>[T. Loeffler (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q](https://www.sec.gov/Archives/edgar/data/51434/000005143425000048/ip-20250630exhibit103.htm)</u> <br><u>[for the quarter ended June 30, 2025). +](https://www.sec.gov/Archives/edgar/data/51434/000005143425000048/ip-20250630exhibit103.htm)</u><br>|
| (10.8.i) | <u>[Notice of Award under the 2025 Long-Term Incentive Plan Restricted Stock Unit Inducement Award](https://www.sec.gov/Archives/edgar/data/51434/000005143425000025/ip-20250331exhibit108.htm)</u> <br><u>[(stock settled) between International Paper Company and Lance T. Loeffler, accepted April 22, 2025](https://www.sec.gov/Archives/edgar/data/51434/000005143425000025/ip-20250331exhibit108.htm)</u> <br><u>[(incorporated by reference to Exhibit 10.8 to the Company's Quarterly Report on Form 10-Q for the](https://www.sec.gov/Archives/edgar/data/51434/000005143425000025/ip-20250331exhibit108.htm)</u> <br><u>[quarter ended March 30, 2025). +](https://www.sec.gov/Archives/edgar/data/51434/000005143425000025/ip-20250331exhibit108.htm)</u><br>|
| (10.8.ii) | <u>[Notice of Top Off Award under the 2025 Long-Term Incentive Plan Performance Stock Units (stock](https://www.sec.gov/Archives/edgar/data/51434/000005143425000074/ip-20250930exhibit101.htm)</u> <br><u>[settled) between International Paper Company and Lance T. Loeffler, providing for the target number](https://www.sec.gov/Archives/edgar/data/51434/000005143425000074/ip-20250930exhibit101.htm)</u> <br><u>[of PSUs to be determined using the closing stock price of the business day immediately preceding the](https://www.sec.gov/Archives/edgar/data/51434/000005143425000074/ip-20250930exhibit101.htm)</u> <br><u>[grant date, accepted August 7, 2025 (incorporated by reference to Exhibit 10.1 to the Company's](https://www.sec.gov/Archives/edgar/data/51434/000005143425000074/ip-20250930exhibit101.htm)</u> <br><u>[Quarterly Report on Form 10-Q for the quarter ended September 30, 2025). +](https://www.sec.gov/Archives/edgar/data/51434/000005143425000074/ip-20250930exhibit101.htm)</u> <br>|
| (10.9) | <u>[International Paper Company Pension Restoration Plan for Salaried Employees effective April 1, 1991](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit107.htm)</u> <br><u>[(corrected version of previously filed exhibit) (incorporated by reference to Exhibit 10.7 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit107.htm)</u> <br><u>[Company's Quarterly Report on Form 10-Q for the fiscal year ended December 31, 2023). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit107.htm)</u><br>|
| (10.9.i) | <u>[Amendment Number One to the International Paper Company Pension Restoration Plan for Salaried](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit108.htm)</u> <br><u>[Employees effective January 1, 2013 (incorporated by reference to Exhibit 10.8 to the Company's](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit108.htm)</u> <br><u>[Annual Report on Form 10-K for the fiscal year ended December 31, 2019). +](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit108.htm)</u><br>|
| (10.9.ii) | <u>[Amendment Number Two to the International Paper Company Pension Restoration Plan for Salaried](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit109.htm)</u> <br><u>[Employees effective January 1, 2013 (incorporated by reference to Exhibit 10.9 to the Company's](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit109.htm)</u> <br><u>[Annual Report on Form 10K for the fiscal year ended December 31, 2019). +](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit109.htm)</u><br>|
| (10.9.iii) | <u>[Amendment Number Three to the International Paper Company Pension Restoration Plan for Salaried](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1010.htm)</u> <br><u>[Employees effective January 1, 2015 (incorporated by reference to Exhibit 10.10 to the Company's](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1010.htm)</u> <br><u>[Annual Report on Form 10-K for the fiscal year ended December 31, 2019). +](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1010.htm)</u><br>|

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | |
|:---|:---|
| (10.9.iv) | <u>[Amendment Number Four to the International Paper Company Pension Restoration Plan for](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1011.htm)</u> <br><u>[Salaried Employees effective July 1, 2014 (incorporated by reference to Exhibit 10.11 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1011.htm)</u> <br><u>[Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019). +](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1011.htm)</u><br>|
| (10.9.v) | <u>[Amendment Number Five to the International Paper Company Pension Restoration Plan for](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1012.htm)</u> <br><u>[Salaried Employees effective January 1, 2019 (incorporated by reference to Exhibit 10.12 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1012.htm)</u> <br><u>[Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019). +](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1012.htm)</u><br>|
| (10.9.vi) | <u>[Amendment Number Six to the International Paper Company Pension Restoration Plan for](https://www.sec.gov/Archives/edgar/data/51434/000005143420000017/ip-20200331xexhibit101.htm)</u> <br><u>[Salaried Employees effective January 1, 2020 (incorporated by reference to Exhibit 10.1 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143420000017/ip-20200331xexhibit101.htm)</u> <br><u>[Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020). +](https://www.sec.gov/Archives/edgar/data/51434/000005143420000017/ip-20200331xexhibit101.htm)</u><br>|
| (10.9.vii) | <u>[Amendment Number Seven to the International Paper Company Pension Restoration Plan for](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit10131.htm)</u> <br><u>[Salaried Employees effective September 1, 2021 (incorporated by reference to Exhibit 10.13.1 to](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit10131.htm)</u> <br><u>[the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit10131.htm)</u><br>|
| (10.9.viii) | <u>[Amendment Number Eight to the International Paper Company Pension Restoration Plan for](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit10132.htm)</u> <br><u>[Salaried Employees effective January 1, 2023 (incorporated by reference to Exhibit 10.13.2 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit10132.htm)</u> <br><u>[Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023).+](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit10132.htm)</u><br>|
| (10.9.xi) | <u>[Amendment Number Nine to the Pension Restoration Plan for Salaried Employees executed on](https://www.sec.gov/Archives/edgar/data/51434/000119312525119332/d945649dex101.htm)</u> <br><u>[May 12, 2025 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K dated](https://www.sec.gov/Archives/edgar/data/51434/000119312525119332/d945649dex101.htm)</u> <br><u>[May 14, 2025). +](https://www.sec.gov/Archives/edgar/data/51434/000119312525119332/d945649dex101.htm)</u><br>|
| (10.10) | <u>[International Paper Company Unfunded Supplemental Retirement Plan for Senior Managers, as](https://www.sec.gov/Archives/edgar/data/51434/000119312508042850/dex1021.htm)</u> <br><u>[amended and restated effective January 1, 2008 (incorporated by reference to Exhibit 10.21 to the](https://www.sec.gov/Archives/edgar/data/51434/000119312508042850/dex1021.htm)</u> <br><u>[Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007). +](https://www.sec.gov/Archives/edgar/data/51434/000119312508042850/dex1021.htm)</u><br>|
| (10.10.i) | <u>[Amendment No. 1 to the International Paper Company Unfunded Supplemental Retirement Plan](https://www.sec.gov/Archives/edgar/data/51434/000119312508212254/dex103.htm)</u> <br><u>[for Senior Managers, effective October 13, 2008 (incorporated by reference to Exhibit 10.3 to the](https://www.sec.gov/Archives/edgar/data/51434/000119312508212254/dex103.htm)</u> <br><u>[Company's Current Report on Form 8-K dated October 17, 2008). +](https://www.sec.gov/Archives/edgar/data/51434/000119312508212254/dex103.htm)</u><br>|
| (10.10.ii) | <u>[Amendment No. 2 to the International Paper Company Unfunded Supplemental Retirement Plan](https://www.sec.gov/Archives/edgar/data/51434/000119312508212254/dex105.htm)</u> <br><u>[for Senior Managers, effective October 14, 2008 (incorporated by reference to Exhibit 10.5 to the](https://www.sec.gov/Archives/edgar/data/51434/000119312508212254/dex105.htm)</u> <br><u>[Company's Current Report on Form 8-K dated October 17, 2008). +](https://www.sec.gov/Archives/edgar/data/51434/000119312508212254/dex105.htm)</u><br>|
| (10.10.iii) | <u>[Amendment No. 3 to the International Paper Company Unfunded Supplemental Retirement Plan](https://www.sec.gov/Archives/edgar/data/51434/000119312509038657/dex1020.htm)</u> <br><u>[for Senior Managers, effective December 8, 2008 (incorporated by reference to Exhibit 10.20 to the](https://www.sec.gov/Archives/edgar/data/51434/000119312509038657/dex1020.htm)</u> <br><u>[Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008). +](https://www.sec.gov/Archives/edgar/data/51434/000119312509038657/dex1020.htm)</u><br>|
| (10.10.iv) | <u>[Amendment No. 4 to the International Paper Company Unfunded Supplemental Retirement Plan](https://www.sec.gov/Archives/edgar/data/51434/000119312509227000/dex101.htm)</u> <br><u>[for Senior Managers, effective January 1, 2009 (incorporated by reference to Exhibit 10.1 to the](https://www.sec.gov/Archives/edgar/data/51434/000119312509227000/dex101.htm)</u> <br><u>[Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009). +](https://www.sec.gov/Archives/edgar/data/51434/000119312509227000/dex101.htm)</u><br>|
| (10.10.v) | <u>[Amendment No. 5 to the International Paper Company Unfunded Supplemental Retirement Plan](https://www.sec.gov/Archives/edgar/data/51434/000119312510040916/dex1017.htm)</u> <br><u>[for Senior Managers, effective October 31, 2009 (incorporated by reference to Exhibit 10.17 to the](https://www.sec.gov/Archives/edgar/data/51434/000119312510040916/dex1017.htm)</u> <br><u>[Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009). +](https://www.sec.gov/Archives/edgar/data/51434/000119312510040916/dex1017.htm)</u><br>|
| (10.10.vi) | <u>[Amendment No. 6 to the International Paper Company Unfunded Supplemental Retirement Plan](https://www.sec.gov/Archives/edgar/data/51434/000119312512081097/d263096dex1021.htm)</u> <br><u>[for Senior Managers, effective January 1, 2012 (incorporated by reference to Exhibit 10.21 to the](https://www.sec.gov/Archives/edgar/data/51434/000119312512081097/d263096dex1021.htm)</u> <br><u>[Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011). +](https://www.sec.gov/Archives/edgar/data/51434/000119312512081097/d263096dex1021.htm)</u><br>|
| (10.10.vii) | <u>[Amendment No. 7 to the International Paper Company Unfunded Supplemental Retirement Plan](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1020.htm)</u> <br><u>[for Senior Managers effective July 12, 2016 (incorporated by reference to Exhibit 10.20 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1020.htm)</u> <br><u>[Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019). +](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1020.htm)</u><br>|
| (10.10.viii) | <u>[Amendment No. 8 to the International Paper Company Unfunded Supplemental Retirement Plan](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1021.htm)</u> <br><u>[for Senior Managers effective January 1, 2019 (incorporated by reference to Exhibit 10.21 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1021.htm)</u> <br><u>[Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019). +](https://www.sec.gov/Archives/edgar/data/51434/000005143420000011/ip-20191231exhibit1021.htm)</u><br>|
| (10.10.xi) | <u>[Amendment No. 9 to the International Paper Company Unfunded Supplemental Retirement Plan](https://www.sec.gov/Archives/edgar/data/51434/000005143419000037/ip20190930-exhibit101i.htm)</u> <br><u>[for Senior Managers effective November 1, 2019 (incorporated by reference to Exhibit 10.1 to the](https://www.sec.gov/Archives/edgar/data/51434/000005143419000037/ip20190930-exhibit101i.htm)</u> <br><u>[Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2019. +](https://www.sec.gov/Archives/edgar/data/51434/000005143419000037/ip20190930-exhibit101i.htm)</u><br>|

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

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| | |
|:---|:---|
| (10.11) | <u>[Commitment Agreement, dated September 26, 2017, between International Paper Company and The](https://www.sec.gov/Archives/edgar/data/51434/000005143417000048/exhibit101commitmentageeme.htm)</u> <br><u>[Prudential Insurance Company of America, relating to the Retirement Plan of International Paper](https://www.sec.gov/Archives/edgar/data/51434/000005143417000048/exhibit101commitmentageeme.htm)</u> <br><u>[Company (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-](https://www.sec.gov/Archives/edgar/data/51434/000005143417000048/exhibit101commitmentageeme.htm)</u><br><u>[Q for the quarter ended September 30, 2017). +](https://www.sec.gov/Archives/edgar/data/51434/000005143417000048/exhibit101commitmentageeme.htm)</u><br>|
| (10.11.i) | <u>[Commitment Agreement, dated September 25, 2018, between International Paper Company and](https://www.sec.gov/Archives/edgar/data/51434/000005143419000007/ip-20181231exhibit1027.htm)</u> <br><u>[The Prudential Insurance Company of America, relating to the Retirement Plan of International](https://www.sec.gov/Archives/edgar/data/51434/000005143419000007/ip-20181231exhibit1027.htm)</u> <br><u>[Paper Company (corrected version of previously filed exhibit) (incorporated by reference to Exhibit](https://www.sec.gov/Archives/edgar/data/51434/000005143419000007/ip-20181231exhibit1027.htm)</u> <br><u>[10.27 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018).](https://www.sec.gov/Archives/edgar/data/51434/000005143419000007/ip-20181231exhibit1027.htm)</u> <br><u>[+](https://www.sec.gov/Archives/edgar/data/51434/000005143419000007/ip-20181231exhibit1027.htm)</u><br>|
| (10.12) | <u>[Form of Non-Competition Agreement, entered into by certain Company employees (including named](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1024.htm)</u> <br><u>[executive officers) who have received restricted stock units (incorporated by reference to Exhibit](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1024.htm)</u> <br><u>[10.24 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023).](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1024.htm)</u> <br><u>[+](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1024.htm)</u><br>|
| (10.13) | <u>[Form of Non-Solicitation Agreement, entered into by certain Company employees (including named](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1025.htm)</u> <br><u>[executive officers) who have received restricted stock unit awards (incorporated by reference to](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1025.htm)</u> <br><u>[Exhibit 10.25 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31,](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1025.htm)</u> <br><u>[2023). +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1025.htm)</u><br>|
| (10.14)\* | <u>[Change-in-Control Agreement dated February 20, 2026, by and between Timothy S. Nicholls and](ip-20251231exhibit1014.htm)</u> <br><u>[International Paper Company. +](ip-20251231exhibit1014.htm)</u><br>|
| (10.14.i) | <u>[Form of Change-in-Control Agreement - Tier I, for the Chief Executive Officer and all "grandfathered"](https://www.sec.gov/Archives/edgar/data/51434/000005143413000014/ip-20130930exhibit101tier1.htm)</u> <br><u>[senior vice presidents elected prior to 2012 (all but one named executive officer) - approved](https://www.sec.gov/Archives/edgar/data/51434/000005143413000014/ip-20130930exhibit101tier1.htm)</u> <br><u>[September 2013 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on](https://www.sec.gov/Archives/edgar/data/51434/000005143413000014/ip-20130930exhibit101tier1.htm)</u> <br><u>[Form 10-Q for the quarter ended September 30, 2013). +](https://www.sec.gov/Archives/edgar/data/51434/000005143413000014/ip-20130930exhibit101tier1.htm)</u><br>|
| (10.14.ii) | <u>[Form of Change-in-Control Agreement - Tier II, for all future senior vice presidents and all](https://www.sec.gov/Archives/edgar/data/51434/000005143413000014/ip-20130930exhibit102tier2.htm)</u> <br><u>["grandfathered" vice presidents (one named executive officer) elected prior to February 2008 -](https://www.sec.gov/Archives/edgar/data/51434/000005143413000014/ip-20130930exhibit102tier2.htm)</u> <br><u>[approved September 2013 (incorporated by reference to Exhibit 10.2 to the Company's Quarterly](https://www.sec.gov/Archives/edgar/data/51434/000005143413000014/ip-20130930exhibit102tier2.htm)</u> <br><u>[Report on Form 10-Q for the quarter ended September 30, 2013). +](https://www.sec.gov/Archives/edgar/data/51434/000005143413000014/ip-20130930exhibit102tier2.htm)</u><br>|
| (10.14.iii) | <u>[Form of Change-in-Control Agreement – Tier II, for all current and future senior vice presidents and all](https://www.sec.gov/Archives/edgar/data/51434/000005143424000067/ip-20240930exhibit102.htm)</u> <br><u>["grandfathered" vice presidents elected prior to February 2008 – approved October 14, 2024](https://www.sec.gov/Archives/edgar/data/51434/000005143424000067/ip-20240930exhibit102.htm)</u> <br><u>[(incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the](https://www.sec.gov/Archives/edgar/data/51434/000005143424000067/ip-20240930exhibit102.htm)</u> <br><u>[quarter ended September 30, 2024) +](https://www.sec.gov/Archives/edgar/data/51434/000005143424000067/ip-20240930exhibit102.htm)</u><br>|
| (10.15) | <u>[Form of Indemnity Agreement (incorporated by reference to Exhibit 10.13 to the Company's Annual](https://www.sec.gov/Archives/edgar/data/51434/000095011704000964/ex10-13.txt)</u> <br><u>[Report on Form 10-K for the fiscal year ended December 31, 2003). +](https://www.sec.gov/Archives/edgar/data/51434/000095011704000964/ex10-13.txt)</u><br>|
| (10.16) | <u>[International Paper Company Executive Severance Plan (incorporated by reference to Exhibit 10.1 to](https://www.sec.gov/Archives/edgar/data/51434/000119312525024408/d926893dex101.htm)</u> <br><u>[the Company's Current Report on Form 8-K dated February 11, 2025). +](https://www.sec.gov/Archives/edgar/data/51434/000119312525024408/d926893dex101.htm)</u><br>|
| (10.17) | <u>[Amendment No. 20 to the Second Amended and Restated Credit and Security Agreement, dated](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1034.htm)</u> <br><u>[June 8, 2023, by and among International Paper Company, as servicer, Red Bird Receivables, LLC,](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1034.htm)</u> <br><u>[as borrower, the lenders and co-agents from time to time party thereto, and Mizuho Bank, Ltd., as](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1034.htm)</u> <br><u>[Administrative Agent (incorporated by reference to Exhibit 10.34 to the Company's Annual Report on](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1034.htm)</u> <br><u>[Form 10-K for the fiscal year ended December 31, 2023).](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit1034.htm)</u><br>|
| (10.18) | <u>[Third Amended and Restated Five-Year Credit Agreement, dated as of June 7, 2023, among](https://www.sec.gov/Archives/edgar/data/51434/000119312523162517/d473878dex101.htm)</u> <br><u>[International Paper Company, JPMorgan Chase Bank, N.A., individually and as administrative agent,](https://www.sec.gov/Archives/edgar/data/51434/000119312523162517/d473878dex101.htm)</u> <br><u>[Citibank, individually and as syndication agent, and certain lenders (incorporated by reference to](https://www.sec.gov/Archives/edgar/data/51434/000119312523162517/d473878dex101.htm)</u> <br><u>[Exhibit 10.1 to the Company's Current Report on Form 8-K filed June 7, 2023.](https://www.sec.gov/Archives/edgar/data/51434/000119312523162517/d473878dex101.htm)</u> <br>|
| (10.19) | <u>[Term Loan Agreement dated January 24, 2023, between International Paper Company and CoBank,](https://www.sec.gov/Archives/edgar/data/51434/000119312523014225/d450068dex101.htm)</u> <br><u>[ACB, as administrative agent (incorporated by reference to Exhibit 10.1 to the Company's Current](https://www.sec.gov/Archives/edgar/data/51434/000119312523014225/d450068dex101.htm)</u> <br><u>[Report on Form 8-K filed January 24, 2023).+](https://www.sec.gov/Archives/edgar/data/51434/000119312523014225/d450068dex101.htm)</u><br>|
| (10.20) | <u>[Securities Purchase Agreement for the divestiture of the International Paper Company's Global](https://www.sec.gov/Archives/edgar/data/51434/000005143425000074/ip-20250930exhibit102.htm)</u> <br><u>[Cellulose Fibers business, by and among International Paper Company, International Paper Holdings](https://www.sec.gov/Archives/edgar/data/51434/000005143425000074/ip-20250930exhibit102.htm)</u> <br><u>[(Luxembourg) S.A.R.L, English Oak, LLC, Absorbent Fiber Bidco, Inc., Absorbent Fiber Acquisitions](https://www.sec.gov/Archives/edgar/data/51434/000005143425000074/ip-20250930exhibit102.htm)</u> <br><u>[Canada Ltd. And Absorbent Fiber Topco, Inc. dated August 20, 2025 (incorporated by reference to](https://www.sec.gov/Archives/edgar/data/51434/000005143425000074/ip-20250930exhibit102.htm)</u> <br><u>[Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed on November 6, 2025).](https://www.sec.gov/Archives/edgar/data/51434/000005143425000074/ip-20250930exhibit102.htm)</u> <br>|
| (10.21) | <u>[Deed of Guarantee dated March 10, 2025, between International Paper Company in respect of the](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex101.htm)</u> <br><u>[2026 Notes (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex101.htm)</u> <br><u>[dated March 11, 2025).](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex101.htm)</u> <br>|

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | |
|:---|:---|
| (10.21.i) | <u>[Deed of Guarantee dated March 10, 2025, between International Paper Company in respect of the](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex102.htm)</u> <br><u>[2027 Notes (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex102.htm)</u> <br><u>[dated March 11, 2025).](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex102.htm)</u><br>|
| (10.21.ii) | <u>[Deed of Guarantee dated March 10, 2025, between International Paper Company in respect of the](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex103.htm)</u> <br><u>[2029 Notes (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex103.htm)</u> <br><u>[dated March 11, 2025).](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex103.htm)</u><br>|
| (10.21.iii) | <u>[Deed of Guarantee dated March 10, 2025, between International Paper Company in respect of the](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex104.htm)</u> <br><u>[2030 Notes (incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex104.htm)</u> <br><u>[dated March 11, 2025).](https://www.sec.gov/Archives/edgar/data/51434/000119312525052007/d927020dex104.htm)</u><br>|
| (10.22) | <u>[Time Sharing Agreement dated October 17, 2014 (and effective November 1, 2014), by and between](https://www.sec.gov/Archives/edgar/data/51434/000119312514376303/d806252dex991.htm)</u> <br><u>[Mark S. Sutton and International Paper Company (incorporated by reference to Exhibit 99.1 to the](https://www.sec.gov/Archives/edgar/data/51434/000119312514376303/d806252dex991.htm)</u> <br><u>[Company's Current Report on Form 8-K dated October 14, 2014). +](https://www.sec.gov/Archives/edgar/data/51434/000119312514376303/d806252dex991.htm)</u><br>|
| (10.23) | <u>[Notice of Award under the Recognition Award Plan Restricted Stock Units (stock settled) between](https://www.sec.gov/Archives/edgar/data/0000051434/000005143425000025/ip-20250331exhibit109.htm)</u> <br><u>[International Paper Company and Clayton R. Ellis, providing for accelerated vesting, accepted](https://www.sec.gov/Archives/edgar/data/0000051434/000005143425000025/ip-20250331exhibit109.htm)</u> <br><u>[February 26, 2024. +](https://www.sec.gov/Archives/edgar/data/0000051434/000005143425000025/ip-20250331exhibit109.htm)</u><br>|
| (10.24) | <u>[Notice of Award under the Recognition Award Plan Restricted Stock Units (stock settled) between](https://www.sec.gov/Archives/edgar/data/0000051434/000005143425000025/ip-20250331exhibit1010.htm)</u> <br><u>[International Paper Company and James P. Royalty, Jr., providing for accelerated vesting, accepted](https://www.sec.gov/Archives/edgar/data/0000051434/000005143425000025/ip-20250331exhibit1010.htm)</u> <br><u>[January 10, 2024. +](https://www.sec.gov/Archives/edgar/data/0000051434/000005143425000025/ip-20250331exhibit1010.htm)</u><br>|
| **19** | **Insider trading policies and procedures** |
| (19) | <u>[International Paper Company Insider Trading Policy amended and restated as of January 31, 2025.](https://www.sec.gov/Archives/edgar/data/51434/000005143425000013/ip-20241231exhibit19.htm)</u> |
| **21** | **Subsidiaries of the registrant** |
| (21)\* | <u>[Subsidiaries and Joint Ventures.](ip-20251231exhibit21.htm)</u> |
| **23** | **Consents of experts and counsel** |
| (23.i) | <u>[Consent of Independent Registered Public Accounting Firm. \*](ip-20251231exhibit23i.htm)</u> |
| **24** | **Power of attorney** |
| (24) | <u>[Power of Attorney (contained on the signature page to the Company's Annual Report on Form 10-K](#i5ba32aeab3f947f28a9e9ed735c0c7c4_259)</u> <br><u>[for the year ended December 31, 2014). \*](#i5ba32aeab3f947f28a9e9ed735c0c7c4_259)</u><br>|
| **31** | **Rule 13a-14(a)/15d-14(a) Certifications** |
| (31.1) | <u>[Certification by Andrew K. Silvernail, Chairman and Chief Executive Officer, pursuant to Section 302](ip-20251231exhibit311.htm)</u> <br><u>[of the Sarbanes-Oxley Act of 2002. \*](ip-20251231exhibit311.htm)</u><br>|
| (31.2) | <u>[Certification by Lance T. Loeffler, Senior Vice President and Chief Financial Officer, pursuant to](ip-20251231exhibit312.htm)</u> <br><u>[Section 302 of the Sarbanes-Oxley Act of 2002. \*](ip-20251231exhibit312.htm)</u><br>|
| **32** | **Section 1350 Certifications** |
| (32) | <u>[Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the](ip-20251231exhibit32.htm)</u> <br><u>[Sarbanes-Oxley Act of 2002.\*\*](ip-20251231exhibit32.htm)</u><br>|
| **97** | **Policy relating to recovery of erroneously awarded compensation** |
| (97) | <u>[International Paper Company Clawback Policy.](https://www.sec.gov/Archives/edgar/data/51434/000005143424000024/ip-20231231exhibit97.htm)</u> |
| **99** | **Additional Exhibits** |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | |
|:---|:---|
| (101.INS) | XBRL Instance Document - the instance document does not appear in the Interactive Data File <br>because its XBRL tags are embedded within the inline XBRL document. \*<br>|
| (101.SCH) | XBRL Taxonomy Extension Schema \* |
| (101.CAL) | XBRL Taxonomy Extension Calculation Linkbase \* |
| (101.DEF) | XBRL Taxonomy Extension Definition Linkbase \* |
| (101.LAB) | XBRL Taxonomy Extension Label Linkbase \* |
| (101.PRE) | XBRL Extension Presentation Linkbase \* |
| (104) | Cover Page Interactive Data File (formatted as Inline XBRL, and contained in Exhibit 101. \* |

---

*+ Management contract or compensatory plan or arrangement.*

*\* Filed herewith*

*\*\* Furnished herewith*

*† Confidential treatment has been granted for certain information pursuant to Rule 24b-2 under the Securities Act of 1934, as amended.*

**<u>[Item 16. Form 10-K Summary](#i5ba32aeab3f947f28a9e9ed735c0c7c4_256)</u>**

None.

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[SIGNATURES](#i5ba32aeab3f947f28a9e9ed735c0c7c4_259)</u>**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly

caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

INTERNATIONAL PAPER COMPANY

---

| | | |
|:---|:---|:---|
| By: | /S/ JOSEPH R. SAAB | February 27, 2026 |
|  | **Joseph R. Saab** |  |
|  | **Senior Vice President, General Counsel**<br>**and Corporate Secretary**<br>|  |

---

**POWER OF ATTORNEY**

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and

appoints Lance T. Loeffler, Joseph R. Saab and Amanda M. Jenkins as his or her true and lawful attorney-in-fact

and agent, acting alone, with full power of substitution and resubstitution for him or her and in his or her name, place

and stead, in any and all capacities, to sign any or all amendments to this annual report on Form 10-K, and to file

the same, with all exhibits thereto and other documents in connection therewith, with the U.S. Securities and

Exchange Commission, granting unto said attorney-in-fact full power and authority to do and perform each and

every act and thing requisite or necessary to be done, hereby ratifying and confirming all that said attorney-in-fact

and agent, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed

below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;ANDREW K. SILVERNAIL&nbsp;&nbsp;&nbsp;&nbsp;  | Chairman of the Board & Chief Executive <br>Officer and Director<br>| February 27, 2026 |
| **Andrew K. Silvernail** |  |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;JAMIE A. BEGGS  | Director | February 27, 2026 |
| **Jamie A. Beggs** |  |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;CHRISTOPHER M. CONNOR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | Director | February 27, 2026 |
| **Christopher M. Connor** |  |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;AHMET C. DORDUNCU&nbsp;&nbsp;&nbsp;&nbsp;  | Director | February 27, 2026 |
| **Ahmet C. Dorduncu** |  |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;ANDERS GUSTAFSSON&nbsp;&nbsp;&nbsp;&nbsp;  | Director | February 27, 2026 |
| **Anders Gustafsson** |  |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;JACQUELINE C. HINMAN&nbsp;&nbsp;&nbsp;&nbsp;  | Director | February 27, 2026 |
| **Jacqueline C. Hinman** |  |  |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

---

| | | |
|:---|:---|:---|
| /s/ CLINTON A. LEWIS, JR. | Director | February 27, 2026 |
| **Clinton A. Lewis, Jr.** |  |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;DAVID A. ROBBIE | Director | February 27, 2026 |
| **David A. Robbie** |  |  |
| /s/ KATHRYN D. SULLIVAN | Director | February 27, 2026 |
| **Kathryn D. Sullivan** |  |  |
| /s/ SCOTT A. TOZIER | Director | February 27, 2026 |
| **Scott A. Tozier** |  |  |
| /s/ ANTON V. VINCENT | Director | February 27, 2026 |
| **Anton V. Vincent** |  |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;LANCE T. LOEFFLER | Senior Vice President and Chief Financial <br>Officer<br>| February 27, 2026 |
| **Lance T. Loeffler** |  |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;HOLLY G. GOUGHNOUR | Vice President and Chief Accounting Officer | February 27, 2026 |
| **Holly G. Goughnour** |  |  |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

**<u>[APPENDIX I](#i5ba32aeab3f947f28a9e9ed735c0c7c4_262)</u>**

**2025 LISTING OF FACILITIES**

*(all facilities are owned except noted otherwise)*

---

| | | |
|:---|:---|:---|
| **PACKAGING SOLUTIONS NORTH** <br>**AMERICA**<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ontario, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fridley, Minnesota |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salinas, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Minneapolis, Minnesota, leased* |
| **Containerboard** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sanger, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shakopee, Minnesota |
| ***U.S.:*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Santa Fe Springs, California (2 <br>locations)<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;White Bear Lake, Minnesota |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pine Hill, Alabama | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tracy, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Houston, Mississippi |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prattville, Alabama | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Golden, Colorado | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jackson, Mississippi |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selma, Alabama (Riverdale Mill) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wheat Ridge, Colorado | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Magnolia, Mississippi, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cantonment, Florida (Pensacola Mill) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Putnam, Connecticut | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Olive Branch, Mississippi |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Riceboro, Georgia<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Orlando, Florida | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fenton, Missouri |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rome, Georgia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plant City, Florida | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kansas City, Missouri  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savannah, Georgia <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Tampa, Florida, leased* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland Heights, Missouri |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cayuga, Indiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Columbus, Georgia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*North Kansas City, Missouri, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cedar Rapids, Iowa | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forest Park, Georgia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;St. Joseph, Missouri |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Henderson, Kentucky | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Griffin, Georgia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;St. Louis, Missouri<sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maysville, Kentucky | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lithonia, Georgia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omaha, Nebraska |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bogalusa, Louisiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savannah, Georgia <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;McCarran, Nevada |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Campti, Louisiana<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tucker, Georgia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barrington, New Jersey |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mansfield, Louisiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Aurora, Illinois (3 locations), 1 leased* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bellmawr, New Jersey |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vicksburg, Mississippi | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bedford Park, Illinois | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Milltown, New Jersey, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valliant, Oklahoma | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Belleville, Illinois | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spotswood, New Jersey |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Springfield, Oregon | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carol Stream, Illinois | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thorofare, New Jersey |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reading, Pennsylvania | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Des Plaines, Illinois | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vineland, New Jersey  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lincoln, Illinois | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Binghamton, New York |
| ***International:*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Montgomery, Illinois | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buffalo, New York |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Veracruz, Mexico <sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Northlake, Illinois | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rochester, New York |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Butler, Indiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Scotia, New York |
| **Corrugated Packaging** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crawfordsville, Indiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utica, New York |
| ***U.S.:*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fort Wayne, Indiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asheboro, North Carolina  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bay Minette, Alabama | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indianapolis, Indiana (3 locations) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Charlotte, North Carolina (2* <br>*locations), 1 leased*<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decatur, Alabama | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lebanon, Indiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Greensboro, North Carolina |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Dothan, Alabama leased* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Saint Anthony, Indiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holly Springs, North Carolina |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Huntsville, Alabama | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tipton, Indiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lumberton, North Carolina |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conway, Arkansas | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cedar Rapids, Iowa | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manson, North Carolina |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fort Smith, Arkansas (2 locations) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Waterloo, Iowa | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Newton, North Carolina |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Russellville, Arkansas (2 locations) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Garden City, Kansas | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Byesville, Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tolleson, Arizona | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bowling Green, Kentucky | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delaware, Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yuma, Arizona | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lexington, Kentucky | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eaton, Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anaheim, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Louisville, Kentucky<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Madison, Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Buena Park, California, leased*<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Walton, Kentucky | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marion, Ohio <sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Camarillo, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bogalusa, Louisiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marysville, Ohio leased |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carson, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lafayette, Louisiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Middletown, Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Cerritos, California, leased* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shreveport, Louisiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mt. Vernon, Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compton, California <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Springhill, Louisiana | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Newark, Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Elk Grove, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Auburn, Maine | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Streetsboro, Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exeter, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cambridge, Maryland  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wooster, Ohio |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gilroy, California (2 locations) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three Rivers, Michigan | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oklahoma City, Oklahoma |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Los Angeles, California <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arden Hills, Minnesota | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beaverton, Oregon |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Modesto, California  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Austin, Minnesota | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hillsboro, Oregon |

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<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

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| | | |
|:---|:---|:---|
| Portland, Oregon | **Recycling** | **Corrugated Packaging** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Salem, Oregon, leased* | ***U.S.:*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kalsdorf, Austria |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Atglen, Pennsylvania | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phoenix, Arizona<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Margarethen, Austria |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Biglerville, Pennsylvania (2 locations) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fremont, California  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buggenhout, Belgium |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eighty-four, Pennsylvania | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Norwalk, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gent, Belgium |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hazleton, Pennsylvania<sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;West Sacramento, California | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Harelbeke, Belgium, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kennett Square, Pennsylvania | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Itasca, Illinois | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Vogosca, Bosnia, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lancaster, Pennsylvania | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Des Moines, Iowa | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pazardzhik, Bulgaria |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mount Carmel, Pennsylvania | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wichita, Kansas <sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Belisce, Croatia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New Castle, Pennsylvania | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roseville, Minnesota | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Koprivnica, Croatia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reading, Pennsylvania | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Omaha, Nebraska  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Boletice, Czech Republic |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Columbia, South Carolina | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charlotte, North Carolina | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Jihlava, Czech Republic, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Georgetown, South Carolina  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beaverton, Oregon | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jilove, Czech Republic |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Laurens, South Carolina | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Springfield, Oregon, leased* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grenaa, Denmark |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lexington, South Carolina | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reading, Pennsylvania  | Taulov, Denmark |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Ashland City, Tennessee, leased* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carrollton, Texas | Vejle, Denmark |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Elizabethton, Tennessee, leased* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salt Lake City, Utah | Tallinn, Estonia |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Greeneville, Tennessee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Richmond, Virginia | *Tampere, Finland, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Morristown, Tennessee | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kent, Washington | Atlantique, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Murfreesboro, Tennessee |  | Bretagne, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amarillo, Texas | ***International:*** | Cabourg, France (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carrollton, Texas (2 locations) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Monterrey, Mexico, leased*<sup>(2)</sup> | Chalon, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Edinburg, Texas <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Xalapa, Veracruz, Mexico, leased*<sup>(2)</sup> | Contoire Hamel, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;El Paso, Texas |  | Durtal, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Ft. Worth, Texas, leased* |  | Espaly, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grand Prairie, Texas  | **Bags** | Fegersheim, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hidalgo, Texas | ***U.S.:*** | Gasny, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;McAllen, Texas | Buena Park, California <sup>(2)</sup> | Kaypac, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;San Antonio, Texas | Beaverton, Oregon <sup>(2)</sup> | Kunheim, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sealy, Texas | Grand Prairie, Texas <sup>(2)</sup> | Mehun, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Waxahachie, Texas |  | Meyzieux, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lynchburg, Virginia |  | Mortagne, France (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Petersburg, Virginia | **PACKAGING SOLUTIONS EMEA** | Neuville, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Richmond, Virginia |  | Rives, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roanoke, Virginia | **Containerboard** | Rochechouart, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Winchester, Virginia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Belisce, Croatia <sup>(1)</sup> | Rouen, France |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moses Lake, Washington | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rouen, France | Saint Amand, France (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Olympia, Washington | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kaysersberg, France | Saint Just, France |
| Yakima, Washington | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Coullons, France <sup>(1)</sup> | Savoie, France |
| Fond du Lac, Wisconsin | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contoire Hamel, France | Sud Est, France |
| Manitowoc, Wisconsin | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aschaffenburg, Germany | Sud Ouest, France |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Witzenhausen, Germany | Toury, France |
| ***International:*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lucca, Italy | Toutembal, France |
| Rancagua, Chile | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kenitra, Morocco | Velin, France |
| *Apodaco (Monterrey), Mexico, leased* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Viana, Poland | Vervins, France |
| *Juarez, Mexico (2 locations), leased* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zarnesti, Romania | Arenshausen, Germany |
| Los Mochis, Mexico | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Madrid, Spain | Arnstadt, Germany |
| *Puebla, Mexico, leased* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alcolea, Spain | *Donauwoerth, Germany, leased* |
| Reynosa, Mexico | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dueñas, Spain | *Endingen, Germany, leased* |
| San Jose Iturbide, Mexico | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kemsley, United Kingdom | Erlensee, Germany |
| Santa Catarina, Mexico |  | Fulda, Germany |
| Silao, Mexico |  | *Hamburg, Germany, leased* |
| Toluca, Mexico |  | Hövelhof, Germany |
| Zapopan, Mexico |  | Lahnau, Germany |

---

<u>[**Table of Contents**](#i5ba32aeab3f947f28a9e9ed735c0c7c4_10)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| Mannheim, Germany | Timisoara, Romania | **Recycling** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minden, Germany | Krusevac, Serbia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Koprivnica, Croatia, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nördlingen, Germany | Valjevo, Serbia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Kutina, Croatia, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Paderborn, Germany, leased* | Martin, Slovakia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Novi Dori, Croatia, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Polkenberg, Germany | Brestanica, Slovenia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Osijek, Croatia, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Traunreut, Germany, leased* | Logatec, Slovenia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Rijeka, Croatia, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wolfsgruen, Germany | Rakek, Slovenia | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*S. Brod, Croatia, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ierapetra, Greece | Alcolea, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Split, Croatia, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Korinthos, Greece | Andopack, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Zadar, Croatia, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thessaloniki, Greece | Barcelona, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Ancona/Marina, Italy, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fuzesabony, Hungary | Bilbao, Spain<sup>(2)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Casarile, Italy, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gyor, Hungary | Cartogal, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Turin, Italy, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nagykata, Hungary | Cartón Lucena, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Figueria, Portugal, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agugliano, Italy | Dicesa, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Porto, Portugal, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arcore, Italy | Dueñas, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Cluj, Romania leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bellusco, Italy | Galicia, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Stefanesti, Romania, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brescello, Italy | Gandia, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Timisoara, Romania |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Busto, Italy | Grinon, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Belgrade, Serbia, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Casarile, Italy | Las Palmas, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Central Spain, Spain |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Castelfranco Emilia, Italy | Madrid, Spain (2 locations) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Madrid, Spain, leased* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Catania, Italy | Montblanc, Spain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kemsley, United Kingdom |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cornuda, Italy | Pamplona, Spain |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Ferrara, Italy, leased* | Penedes, Spain |  |
| Lari, Italy | Tavernes de la Valldigna, Spain | **GLOBAL CELLULOSE FIBERS** |
| Marlia, Italy | Tenerife, Spain |  |
| Pessione, Italy | Torrelavit, Spain | **Pulp** |
| Pomezia, Italy | Valls, Spain | ***U.S.:*** |
| Porcari, Italy | Mariestad, Sweden | Flint River, Georgia |
| Quargnento, Italy | Värnamo, Sweden | Port Wentworth, Georgia |
| Rosa, Italy | Oftringen, Switzerland | Columbus, Mississippi (2 locations) |
| San Felice, Italy | Belper, United Kingdom | New Bern, North Carolina |
| Vigasio, Italy | Blunham, United Kingdom | Riegelwood, North Carolina |
| *Vilnius, Lithuania, leased* | *Burscough, United Kingdom,* <br>*leased*<br>| Franklin, Virginia |
| Agadir, Morocco | Claycross, United Kingdom <sup>(1)</sup> |  |
| Casablanca, Morocco | Crumlin, United Kingdom |  |
| Tangier, Morocco | Devizes, United Kingdom | ***International:*** |
| Almelo, Netherlands | Ely, United Kingdom | Grande Prairie, Alberta, Canada |
| Barneveld, Netherlands | Featherstone, United Kingdom | Gdansk, Poland |
| Eerbeek, Netherlands | Fordham, United Kingdom |  |
| Loven, Netherlands | Hinckley, United Kingdom | **DISTRIBUTION** |
| Tilburg, Netherlands | Kettering, United Kingdom |  |
| Skopje, North Macedonia | Launceston, United Kingdom | ***International:*** |
| Belchatow, Poland | Livingston, United Kingdom | *Guangzhou, China, leased* |
| Kielce, Poland (2 locations) | Lockerbie, United Kingdom | *Hong Kong, China, leased*<sup>(1)</sup> |
| Kutno, Poland | Louth, United Kingdom | *Shanghai, China, leased* |
| Olawa, Poland | Newcastle, United Kingdom <sup>(1)</sup> | *Japan, leased* |
| Albarraque, Portugal | Plymouth, United Kingdom<sup>(1)</sup> | *Korea, leased* <sup>(1)</sup> |
| Carregal do Sal, Portugal | *Redditch, United Kingdom, leased* | *Singapore, leased* |
| Gopaca - Porto, Portugal | Sheerness, United Kingdom<sup>(1)</sup> |  |
| Guilhabreu, Portugal | Wellingborough, United Kingdom <sup>(1)</sup> | (1) Closed in 2025 |
| Leiria, Portugal |  | (2) Sold in 2025 |
| Ovar, Portugal <sup>(2)</sup> |  |  |
| Ghimbav, Romania |  |  |

---

## Exhibit 10.1

**<u>Exhibit 10.1.i</u>**

**INTERNATIONAL PAPER COMPANY**

**2024 Long-Term Incentive Compensation Plan<br>Revised as of December 8, 2025**

**ARTICLE 1**

**PURPOSE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>GENERA</u><u>L</u>. The purpose of the International Paper Company 2024 Long-Term Incentive Compensation Plan (the "**Plan**") is to provide incentive for non-employee directors and designated employees of International Paper Company, a New York corporation (the "**Company**"), or any Affiliate, to improve the performance of the Company on a long-term basis, and to attract and retain certain persons in the employ of the Company. Accordingly, the Plan permits the grant of incentive awards from time to time to directors of the Company, as needed, and to selected designated employees of the Company and its Affiliates.

**ARTICLE 2**

**DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>DEFINITION</u><u>S</u>. The following words and phrases shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;"<u>AFFILIAT</u><u>E</u>" means (i) any Subsidiary or Parent, or (ii) an entity that directly or through one or more intermediaries controls, is controlled by or is under common control with, the Company, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;"<u>AWAR</u><u>D</u>" means any Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Deferred Stock Unit Award, Dividend Equivalent Award, Other Stock-Based Award, or any other right or interest relating to Stock or cash, granted to a Participant under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;"<u>AWARD</u> <u>CERTIFICAT</u><u>E</u>" means a written document, in such form as the Committee prescribes from time to time, setting forth the terms and conditions of an Award. Award Certificates may be in the form of individual award agreements or certificates or a program document describing the terms and provisions of an Award or series of Awards under the Plan. The Committee may provide for the use of electronic, internet or other non-paper Award Certificates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;"<u>BENEFICIAL</u> <u>OWN</u>ER" shall have the meaning given such term in Rule 13d-3 of the General Rules and

Regulations under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;"<u>BOAR</u><u>D</u>" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;"<u>CAUS</u><u>E</u>" as a reason for a Participant's termination of employment shall have the meaning assigned such term in the employment, severance or similar agreement, if any, between such Participant and the Company or an Affiliate; *provided*, *however,* that, if there is no such employment, severance or similar agreement in which such term is defined, and unless otherwise defined in the applicable Award Certificate, "Cause" shall include but is not limited to misconduct or other activity detrimental to the business interest or reputation of the Company or continued unsatisfactory job performance without making reasonable efforts to improve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;"<u>CHANGE</u> <u>IN</u> <u>CONTRO</u>L" means and includes the occurrence of any one of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;the consummation of any transaction (including, without limitation, any merger or consolidation)

the result of which is that any "person" or "group" (as those terms are used in Section 13(d)(3) of the Exchange Act) becomes the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of the Company's voting stock representing 30% or more of the voting power of the Company's outstanding voting stock; *provided, however*, that an employee of the Company or any of its subsidiaries for whom shares are held under an employee stock ownership, employee retirement, employee savings or similar plan and whose shares are voted in accordance with the instructions of such employee shall not be a member of a "group" (as that term is used in

------

**<u>Exhibit 10.1.i</u>**

Section 13(d)(3) of the Exchange Act) solely because such employee's shares are held by a trustee under said plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;during any period of two consecutive years, individuals who at the beginning of such period constitute the Board cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election, by the Company's shareowners of each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;the Company consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the Company's outstanding voting stock or voting stock of such other person is converted into or exchanged for cash, securities or other property, other than any such transaction where the Company's voting stock outstanding immediately prior to such transaction constitutes, or is converted into or exchanged for, voting stock representing more than 50% of the voting power of the voting stock of the surviving person immediately after giving effect to such transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) &nbsp;&nbsp;&nbsp;&nbsp;the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Company and its subsidiaries taken as a whole to any "person" or "group" (as those terms are used in Section 13(d)(3) of the Exchange Act) other than to the Company or one of its subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the shareowners of the Company approve a complete liquidation or dissolution of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;"<u>COD</u><u>E</u>" means the Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;"<u>COMMITTE</u><u>E</u>" means the Management Development and Compensation Committee of the Board described in Article 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;"<u>COMPAN</u><u>Y</u>" means International Paper Company, a New York corporation, or any successor corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;"<u>CONTINUOUS</u> <u>SERVIC</u><u>E</u>" means the absence of any interruption or termination of service as an employee or director of the Company or any Affiliate, as applicable; *provided*, *however*, that, for purposes of an Incentive Stock Option, "Continuous Service" means the absence of any interruption or termination of service as an employee of the Company or any Parent or Subsidiary, as applicable, pursuant to applicable tax regulations. Continuous Service shall not be considered interrupted in the following cases: (i) a Participant transfers employment between the Company and an Affiliate or between Affiliates, or (ii) in the discretion of the Committee as specified at or prior to such occurrence, in the case of a spin-off, sale or disposition of the Participant's employer from the Company or any Affiliate, (iii) a Participant transfers from being an employee of the Company or an Affiliate to being a director or independent contractor of the Company or of an Affiliate, or vice versa, or (iv) any leave of absence authorized in writing by the Company prior to its commencement; *provided*, *however*, that, for purposes of Incentive Stock Options, no such leave may exceed 90 days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 91st day of such leave any Incentive Stock Option held by the Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Non-qualified Stock Option. Whether military, government or other service or other leave of absence shall constitute a termination of Continuous Service shall be determined in each case by the Committee at its discretion; *provided*, *however*, that, for purposes of any Award that is subject to Section 409A of the Code, the determination of a leave of absence must comply with the requirements of a "bona fide leave of absence" as provided in Treas. Reg. Section 1.409A-1(h).

------

**<u>Exhibit 10.1.i</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;"<u>DEFERRED</u> <u>STOCK</u> <u>UNIT</u>" means a right granted to a Participant under Article 9 to receive Shares of Stock (or the equivalent value in cash or other property if the Committee so provides) at a future time as determined by the Committee, or as determined by the Participant within guidelines established by the Committee in the case of voluntary deferral elections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>DISABILIT</u><u>Y</u>" of a Participant means that the Participant (i) 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 12 months, or (ii) is, 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 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Participant's employer. If the determination of Disability relates to an Incentive Stock Option, "Disability" means Permanent and Total Disability as defined in Section 22(e)(3) of the Code. In the event of a dispute, the determination whether a Participant has incurred a Disability will be made by the Committee and may be supported by the advice of a physician competent in the area to which such Disability relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) &nbsp;&nbsp;&nbsp;&nbsp;"<u>DIVIDEND</u> <u>EQUIVALEN</u><u>T</u>" means a right granted to a Participant under Article 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) &nbsp;&nbsp;&nbsp;&nbsp;"<u>EFFECTIVE</u> <u>DATE</u>" has the meaning assigned such term in Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) &nbsp;&nbsp;&nbsp;&nbsp;"<u>ELIGIBLE</u> <u>PARTICIPAN</u><u>T</u>" means Non-Employee Directors and designated employees of the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) &nbsp;&nbsp;&nbsp;&nbsp;"<u>EXCHANG</u><u>E</u>" means any national securities exchange on which the Stock may from time to time be listed or traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) &nbsp;&nbsp;&nbsp;&nbsp;"<u>EXCHANGE</u> <u>AC</u><u>T</u>" means the Securities Exchange Act of 1934, as amended from time to time. For purposes of this Plan, references to sections of the Exchange Act shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) &nbsp;&nbsp;&nbsp;&nbsp;"<u>FAIR</u> <u>MARKET</u> <u>VALU</u><u>E</u>" on any date, means (i) if the Stock is listed on a securities exchange, the closing stock price on such date immediately preceding the date on which (a) the Award is granted, or (b) the day on which the Committee approves the settling of the Award in cash, as applicable, or (ii) if the Stock is not listed on a securities exchange, the mean between the bid and offered prices as quoted by the applicable interdealer quotation system for such date*; provided* that, if the Stock is not quoted on an interdealer quotation system or if it is determined that the fair market value is not properly reflected by such quotations, Fair Market Value will be determined by such other method as the Committee determines in good faith to be reasonable and in compliance with Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;"<u>FULL-VALUE</u> <u>AWAR</u><u>D</u>" means an Award other than in the form of an Option or SAR, and which is settled by the issuance of Stock (or at the discretion of the Committee, settled in cash valued by reference to the Fair Market Value of the Stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) &nbsp;&nbsp;&nbsp;&nbsp;"<u>GOOD</u> <u>REASO</u><u>N</u>" (or a similar term denoting constructive termination) has the meaning, if any, assigned such term in the employment, severance or similar agreement, if any, between a Participant and the Company or an Affiliate; *provided*, *however,* that, if there is no such employment, severance or similar agreement in which such term is defined, "Good Reason" shall have the meaning, if any, given such term in the applicable Award Certificate. If not defined in any such document, the term "Good Reason" as used herein shall not apply to a particular Award.

------

**<u>Exhibit 10.1.i</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) &nbsp;&nbsp;&nbsp;&nbsp;"<u>GRANT</u> <u>DATE</u>" of an Award means the first date on which all necessary corporate action has been taken to approve the grant of the Award as provided in the Plan, or such later date as is determined and specified as part of that authorization process. Notice of the grant shall be provided to the grantee within a reasonable time after the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) &nbsp;&nbsp;&nbsp;&nbsp;"<u>INCENTIVE</u> <u>STOCK</u> <u>OPTIO</u><u>N</u>" means an Option that is intended to be an incentive stock option and meets the requirements of Section 422 of the Code or any successor provision thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) &nbsp;&nbsp;&nbsp;&nbsp;"<u>NON-EMPLOYEE</u> <u>DIRECTO</u><u>R</u>" means a director of the Company who is not a common law employee of the Company or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) &nbsp;&nbsp;&nbsp;&nbsp;"<u>NON-QUALIFIED</u> <u>STOCK</u> <u>OPTIO</u><u>N</u>" means an Option that is not an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) &nbsp;&nbsp;&nbsp;&nbsp;"<u>OPTIO</u><u>N</u>" means a right granted to a Participant under Article 7 of the Plan to purchase Stock at a specified price during specified time periods. An Option may be either an Incentive Stock Option or a Non-qualified Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>OTHER</u> <u>STOCK-BASED</u> <u>AWAR</u><u>D</u>" means a right granted to a Participant under Article 12 that relates to or is valued by reference to Stock or other Awards relating to Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>PAREN</u><u>T</u>" means a corporation, limited liability company, partnership or other entity which owns or beneficially owns a majority of the outstanding voting stock or voting power of the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Parent shall have the meaning set forth in Section 424(e) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>PARTICIPAN</u><u>T</u>" means an Eligible Participant who has been granted an Award under the Plan; *provided* that, in the case of the death of a Participant, the term "Participant" refers to a beneficiary designated pursuant to Section 13.4 or the legal guardian or other legal representative acting in a fiduciary capacity on behalf of the Participant under applicable state law and court supervision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>PERFORMANCE</u> <u>AWAR</u><u>D</u>" means any award granted under the Plan pursuant to Article 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "<u>PERSO</u><u>N</u>" means any individual, entity or group, within the meaning of Section 3(a)(9) of the Exchange

Act and as used in Section 13(d)(3) or 14(d)(2) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;"<u>PLAN</u>" means the International Paper Company 2024 Long-Term Incentive Compensation Plan, as it may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "<u>RESTRICTED</u> <u>STOCK</u> <u>AWAR</u><u>D</u>" means Stock granted to a Participant under Article 9 that is subject to certain restrictions and to risk of forfeiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "<u>RESTRICTED</u> <u>STOCK</u> <u>UNIT</u> <u>AWAR</u><u>D</u>" means the right granted to a Participant under Article 9 to receive shares of Stock (or the equivalent value in cash or other property if the Committee so provides) in the future, which right is subject to certain restrictions and to risk of forfeiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;"<u>RETIREMEN</u><u>T</u>" means a Participant's termination of employment with the Company or an Affiliate after reaching at least age 55 with 10 years of service, age 60 with five years of service, or age 65. In the case of a Participant who is a Non-Employee Director, "Retirement" means retirement from the Board after reaching the age specified for mandatory retirement from the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) &nbsp;&nbsp;&nbsp;&nbsp;"<u>SECURITIES</u> <u>AC</u><u>T</u>" means the Securities Act of 1933, as amended from time to time. For purposes of this Plan, references to sections of the Securities Act shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "<u>SHARE</u><u>S</u>" means shares of the Company's Stock. If there has been an adjustment or substitution with respect to the Shares (whether or not pursuant to Article 14), the term "Shares" shall also include any shares of stock or other securities that are substituted for Shares or into which Shares are adjusted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) &nbsp;&nbsp;&nbsp;&nbsp;"<u>STOC</u><u>K</u>" means the $1.00 par value common stock of the Company and such other securities of the

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**<u>Exhibit 10.1.i</u>**

Company as may be substituted for Stock pursuant to Article 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "<u>STOCK</u> <u>APPRECIATION</u> <u>RIGH</u><u>T</u>" or "<u>SAR</u>" means a right granted to a Participant under Article 8 to receive a payment equal to the difference between the Fair Market Value of a Share as of the date of exercise of the SAR over the base price of the SAR, all as determined pursuant to Article 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "<u>SUBSIDIAR</u><u>Y</u>" means any corporation, limited liability company, partnership or other entity of which 50% or more of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company. Notwithstanding the above, with respect to an Incentive Stock Option, "Subsidiary" shall have the meaning set forth in Section 424(f) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "<u>SURVIVING</u> <u>ENTITY</u>" means the entity resulting from a Change in Control (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company's assets or stock either directly or through one or more subsidiaries).

**ARTICLE 3**

**EFFECTIVE TERM OF PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>EFFECTIVE</u> <u>DATE</u>. The Plan shall be effective as of the date it is approved by both the Board and the shareowners of the Company (the "**Effective Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>TERMINATION</u> <u>OF PLAN</u>. Unless earlier terminated as provided herein, the Plan shall continue in effect until the date of the 2034 annual shareowners' meeting or, if the shareowners approve an amendment to the Plan that increases the number of Shares subject to the Plan, the tenth anniversary of the date of such approval. The termination of the Plan shall not affect the validity of any Award outstanding on the date of termination, which shall continue to be governed by the applicable terms and conditions of this Plan. Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten years after the earlier of (a) adoption of this Plan by the Board, or (b) the Effective Date.

**ARTICLE 4**

**ADMINISTRATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>COMMITTE</u><u>E</u>. The Plan shall be administered by a Committee appointed by the Board or, at the discretion of the Board from time to time, the Plan may be administered by the Board. Unless and until changed by the Board, the Management Development and Compensation Committee of the Board is designated as the Committee to administer the Plan. The Board may reserve to itself any or all of the authority and responsibility of the Committee under the Plan or may act as administrator of the Plan for any and all purposes. To the extent the Board has reserved any authority and responsibility, or during any time that the Board is acting as administrator of the Plan, it shall have all the powers and protections of the Committee hereunder, and any reference herein to the Committee (other than in this Section 4.1) shall include the Board. To the extent any action of the Board under the Plan conflicts with actions taken by the Committee, the actions of the Board shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>ACTION</u> <u>AND</u> <u>INTERPRETATIONS</u> <u>BY</u> <u>THE</u> <u>COMMITTE</u><u>E</u>. For purposes of administering the Plan, the Committee may from time to time adopt rules, regulations, guidelines and procedures for carrying out the provisions and purposes of the Plan and make such other determinations, not inconsistent with the Plan, as the Committee may deem appropriate. The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the extent it deems necessary to carry out the intent of the Plan. The Committee's interpretation of the Plan, any Awards granted under the Plan, any Award Certificate and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any employee of the Company or any Affiliate, the Company's or an Affiliate's independent certified public accountants, Company's counsel or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan. No member of the Committee will be liable for any good faith determination or interpretation, act or omission in connection with the Plan or any Award.

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**<u>Exhibit 10.1.i</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>AUTHORITY</u> <u>OF COMMITTE</u><u>E</u>. Except as provided in Section 4.1 hereof, the Committee has the exclusive power, authority and discretion to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;Grant Awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Delegate the granting Awards as specified in Section 4.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;Designate Participants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;Determine the type or types of Awards to be granted to each Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;Determine the number of Awards to be granted and the number of Shares or dollar amount to which an

Award will relate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;Determine the terms and conditions of any Award granted under the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;Prescribe the form of each Award Certificate, which need not be identical for each Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;Decide all other matters that must be determined in connection with an Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;Establish, adopt or revise any rules, regulations, guidelines or procedures as it may deem necessary or advisable to administer the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;Make all other decisions and determinations that may be required under the Plan or as the Committee deems necessary or advisable to administer the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;Amend the Plan or any Award Certificate as provided herein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;Adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of the United States or any non-U.S. jurisdictions in which the Company or any Affiliate may operate, in order to assure the viability of the benefits of Awards granted to participants located in the United States or such other jurisdictions and to meet the objectives of the Plan.

Notwithstanding the foregoing, grants of Awards to Non-Employee Directors hereunder shall be made only in accordance with the terms, conditions and parameters of a plan, program or policy for the compensation of

Non-Employee Directors as in effect from time to time that is approved and administered by a committee of the Board consisting solely of independent directors, and the Committee may not make other discretionary grants hereunder to

Non-Employee Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>DELEGATIO</u><u>N</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;<u>ADMINISTRATIVE</u> <u>DUTIES</u>. The Committee may delegate to one or more of its members or to one or more officers of the Company or an Affiliate or to one or more agents or advisors such administrative duties or powers as it may deem advisable, and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render advice with respect to any responsibility the Committee or such individuals may have under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;<u>SPECIAL</u> <u>COMMITTE</u><u>E</u>. The Board may, by resolution, expressly delegate to a special committee, consisting of one or more directors who may but need not be officers of the Company, the authority, within specified parameters as to the number and terms of Awards, to (i) designate employees of the Company or any of its Affiliates to be recipients of Awards under the Plan, and (ii) to determine the number of such Awards to be received by any such Participants; *provided*, *however*, that such delegation of duties and responsibilities to an officer of the Company may not be made with respect to the grant of Awards to eligible participants who are subject to Section 16(a) of the Exchange Act at the Grant Date. The acts of such delegates shall be treated hereunder as acts of the Board and such delegates shall report regularly to the Board and the Committee regarding the delegated duties and responsibilities

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**<u>Exhibit 10.1.i</u>**

and any Awards so granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;<u>OTHER</u> <u>DELEGATIO</u><u>N</u>. The Board may, by resolution, expressly delegate to the head of Human Resources or other executive specified by the Committee, the authority, within specified parameters as to the number and terms of Awards, (i) to designate employees of the Company or any of its Affiliates to be recipients of Awards under the Plan, and (ii) to determine the number of such Awards to be received by any such Participants; *provided*, *however*, that such delegation of duties and responsibilities may not be made with respect to the grant of Awards to eligible participants who are in the role of Senior Vice President of the Company and above. The acts of such delegate shall be treated hereunder as acts of the Board and such delegate shall report regularly to the Committee regarding the delegated duties and responsibilities and any Awards so granted.

**ARTICLE 5**

**SHARES SUBJECT TO THE PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>NUMBER</u> <u>OF SHARE</u><u>S</u>. Subject to adjustment as provided in Sections 5.2 and 14.1, the aggregate number of Shares reserved and available for issuance pursuant to Awards granted under the Plan shall be 9,250,000 Shares plus a number of additional Shares underlying awards outstanding as of the Effective Date under the Company's Amended and Restated 2009 Incentive Compensation Plan, as amended and restated February 11, 2014, that thereafter terminate or expire unexercised, or are cancelled, forfeited or lapse for any reason. The maximum number of Shares that may be issued upon exercise of Incentive Stock Options granted under the Plan shall be 9,250,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>SHARE</u> <u>COUNTIN</u><u>G</u>. Shares covered by an Award shall be subtracted from the Plan share reserve as of the

Grant Date, but shall be added back to the Plan share reserve in accordance with this Section 5.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;To the extent that an Award is canceled, terminates, expires, is forfeited or lapses for any reason, any unissued or forfeited Shares subject to the Award shall be added back to the Plan share reserve and again be available for issuance pursuant to Awards granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Subject to 5.2(g) below, Shares subject to Awards settled in cash shall be added back to the Plan share reserve and again be available for issuance pursuant to Awards granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;Shares withheld from an Award, including for this purpose an award granted under a prior plan, or delivered by a Participant to satisfy minimum tax withholding requirements shall be added back to the Plan share reserve and again be available for issuance pursuant to Awards granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;To the extent that the full number of Shares subject to a Performance Award is not issued by reason of failure to achieve maximum performance goals, the unissued Shares originally subject to the Performance Award will be added back to the Plan share reserve and again be available for issuance pursuant to Awards granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;Substitute Awards granted pursuant to Section 13.10 shall not count against the Shares otherwise available for issuance under the Plan under Section 5.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;Subject to applicable Exchange requirements, shares available under a shareowner-approved plan of a company acquired by the Company (as appropriately adjusted to Shares to reflect the transaction) may be issued under the Plan pursuant to Awards granted to individuals who were not employees of the Company or its Affiliates immediately before such transaction and will not count against the maximum share limitation specified in Section 5.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Section 5.2, if (i) the Company withholds Shares to satisfy the Participant's applicable tax withholding obligations in accordance with Section 16.2 or (ii) an Option or SAR covering Shares is exercised pursuant to the cashless exercise provisions of Section 7.1 (d), such withheld Shares described in clauses (i) and (ii), shall not again become available for issuance under the Plan or increase the number of Shares available for issuance under the Plan. In addition, for the avoidance of

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**<u>Exhibit 10.1.i</u>**

doubt, no Options or SARs may be granted covering Shares repurchased by the Company on the open market with proceeds, if any, received by the Company on account of payment of the option price for an Option or SAR by Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. <u>STOCK</u> <u>DISTRIBUTE</u><u>D</u>. Any Stock distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open market.

**ARTICLE 6**

**ELIGIBILITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>GENERA</u>L. Awards may be granted only to Eligible Participants. Eligible Participants who are service providers to an Affiliate may be granted Options or SARs under this Plan only if the Affiliate qualifies as an "eligible issuer of service recipient stock" within the meaning of §1.409A-1(b)(5)(iii)(E) of the final regulations under Section 409A of the Code.

**ARTICLE 7**

**STOCK OPTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <u>GENERA</u><u>L</u>. The Committee is authorized to grant Options to Participants on the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;<u>EXERCISE</u> <u>PRIC</u><u>E</u>. The exercise price per Share under an Option shall be determined by the Committee; *provided* that the exercise price for any Option (other than an Option issued as a substitute Award pursuant to Section 13.10) shall not be less than the Fair Market Value as of the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;<u>PROHIBITION</u> <u>ON</u> <u>REPRICIN</u><u>G</u>. Except as otherwise provided in Section 14.1, the Committee may not, without shareholder approval, seek to effect any re-pricing of any previously granted "underwater" Option by; (i) amending or modifying the terms of the Option to lower the exercise price; (ii) cancelling the underwater Option and granting either (A) replacement Options, SARs or similar Awards having a lower exercise price or (B) Restricted Shares, Restricted Stock Units, Performance Awards or Other Share- Based Awards in exchange; or (iii) cancelling or repurchasing the underwater Option for cash or other securities. An Option will be deemed to be "underwater" at any time when the Fair Market Value of the Shares covered by such Award is less than the exercise price of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;<u>TIME</u> <u>AND</u> <u>CONDITIONS</u> <u>OF EXERCIS</u><u>E</u>. The Committee shall determine the time or times at which an Option may be exercised in whole or in part, subject to Section 7.1(e). The Committee shall also determine the performance or other conditions, if any, that must be satisfied before all or part of an Option may be exercised or vested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;<u>PAYMEN</u><u>T</u>. The Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment, and the methods by which Shares shall be delivered or deemed to be delivered to Participants. As determined by the Committee at or after the Grant Date, payment of the exercise price of an Option may be made, in whole or in part, in the form of (i) cash or cash equivalents, (ii) delivery (by either actual delivery or attestation) of previously-acquired Shares based on the Fair Market Value of the Shares on the date the Option is exercised, (iii) withholding of Shares from the Option based on the Fair Market Value of the Shares on the date the Option is exercised, (iv) broker- assisted market sales, or (iv) any other "cashless exercise" arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;<u>EXERCISE</u> <u>TER</u><u>M</u>. No Option granted under the Plan shall be exercisable for more than ten years from the Grant Date.

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**<u>Exhibit 10.1.i</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;<u>NO</u> <u>DEFERRAL</u> <u>FEATUR</u><u>E</u>. No Option shall provide for any feature for the deferral of compensation other than the deferral of recognition of income until the exercise or disposition of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;<u>NO</u> <u>DIVIDEND</u> <u>EQUIVALENT</u><u>S</u>. No Option shall provide for Dividend Equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <u>INCENTIVE</u> <u>STOCK</u> <u>OPTION</u><u>S</u>. Incentive Stock Options may be granted only to Eligible Participants who are employees of the Company or a Parent or Subsidiary as defined in Section 424(e) and (f) of the Code. The terms of any Incentive Stock Options granted under the Plan must comply with the requirements of Section 422 of the Code. If all of the requirements of Section 422 of the Code are not met, the Option shall automatically become a Non-qualified Stock Option.

**ARTICLE 8**

**STOCK APPRECIATION RIGHTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <u>GRANT</u> <u>OF STOCK</u> <u>APPRECIATION</u> <u>RIGHT</u><u>S</u>. The Committee is authorized to grant SARs to Participants on the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;<u>RIGHT</u> <u>TO</u> <u>PAYMEN</u><u>T</u>. Upon the exercise of a SAR, the Participant to whom it is granted has the right to receive, for each Share with respect to which the SAR is being exercised, the excess, if any, of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;The Fair Market Value of one Share on the date of exercise; over

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;The base price of the SAR as determined by the Committee and set forth in the Award Certificate, which shall not be less than the Fair Market Value of one Share on the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;<u>PROHIBITION</u> <u>ON</u> <u>REPRICIN</u><u>G</u>. Except as otherwise provided in Section 14.1, the Committee may not, without shareholder approval, seek to effect any re-pricing of any previously granted "underwater" SAR by: (i) amending or modifying the terms of the SAR to lower the exercise price; (ii) cancelling the underwater SAR and granting either (A) replacement Options, SARs or similar Awards having a lower exercise price or (B) Restricted Shares, Restricted Stock Units, Performance Awards or Other Share-Based Awards in exchange; or (iii) cancelling or repurchasing the underwater SAR for cash or other securities. A SAR will be deemed to be "underwater" at any time when the Fair Market Value of the Shares covered by such Award is less than the exercise price of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;<u>TIME</u> <u>AND</u> <u>CONDITIONS</u> <u>OF EXERCIS</u><u>E</u>. No SAR shall be exercisable for more than ten years from the

Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;<u>NO</u> <u>DEFERRAL</u> <u>FEATUR</u><u>E</u>. No SAR shall provide for any feature for the deferral of compensation other than the deferral of recognition of income until the exercise or disposition of the SAR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;<u>NO</u> <u>DIVIDEND</u> <u>EQUIVALENT</u><u>S</u>. No SAR shall provide for Dividend Equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;<u>OTHER</u> <u>TERM</u><u>S</u>. All SARs shall be evidenced by an Award Certificate. Subject to the limitations of this Article 8, the terms, methods of exercise, methods of settlement, form of consideration payable in settlement, and any other terms and conditions of any SAR shall be determined by the Committee at the time of the grant of the Award and shall be reflected in the Award Certificate.

**ARTICLE 9**

**RESTRICTED STOCK, RESTRICTED STOCK UNITS AND**

**DEFERRED STOCK UNITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>GRANT</u> <u>OF RESTRICTED</u> <u>STOCK,</u> <u>RESTRICTED</u> <u>STOCK</u> <u>UNITS</u> <u>AND</u> <u>DEFERRED</u> <u>STOCK</u> <u>UNITS</u>. The Committee is authorized to make Awards of Restricted Stock, Restricted Stock Units or Deferred Stock Units to Participants in such amounts and subject to such terms and conditions as may be selected by the Committee. An Award of Restricted

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**<u>Exhibit 10.1.i</u>**

Stock, Restricted Stock Units or Deferred Stock Units shall be evidenced by an Award Certificate setting forth the terms, conditions, and restrictions applicable to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>ISSUANCE</u> <u>AND</u> <u>RESTRICTION</u><u>S</u>. Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be subject to such restrictions on transferability and other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). These restrictions may lapse separately or in combination at such times, under such circumstances, in such installments, upon the satisfaction of performance goals or otherwise, as the Committee determines at the time of the grant of the Award or thereafter. Except as otherwise provided in an Award Certificate or any special Plan document governing an Award, the Participant shall have all of the rights of a shareowner with respect to the Restricted Stock, and the Participant shall have none of the rights of a shareowner with respect to Restricted Stock Units or Deferred Stock Units until such time as Shares of Stock are paid in settlement of the Restricted Stock Units or Deferred Stock Units. Unless otherwise provided in the applicable Award Certificate, Awards of Restricted Stock will be entitled to full dividend rights. Pursuant to Section 11.1 and as set forth in the applicable Award Certificate or any special Plan document governing an Award, the Committee may provide that dividends on Awards of Restricted Stock will be deemed to have been reinvested in additional Shares or otherwise reinvested; *provided, however,* that in no event shall such Shares or other reinvestments be distributed or paid prior to the lapse of all restrictions to which the Restricted Stock are subject at the discretion of the Committee under this Section 9.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. <u>GRANT</u> <u>OF DIVIDEND</u> <u>EQUIVALENT</u><u>S</u>. The Committee is authorized to grant Dividend Equivalents with respect to Full-Value Awards (other than Restricted Stock) granted hereunder, subject to such terms and conditions as may be selected by the Committee; *provided*, *however*, that in no event may any Dividend Equivalents be distributed or paid to a Participant in respect of such Full-Value Award before the underlying shares subject to the Full-Value Award have become vested. Dividend Equivalents shall entitle the Participant to receive payments equal to ordinary cash dividends or distributions with respect to all or a portion of the number of vested Shares subject to a Full-Value Award (other than Restricted Stock), as determined by the Committee. The Committee may provide that Dividend Equivalents (i) will be deemed to have been reinvested in additional Shares or otherwise reinvested, or (ii) except in the case of Performance Awards, will be paid or distributed to the Participant as accrued (in which case, such Dividend Equivalents must be paid or distributed no later than the 15th day of the third month following the later of (i) the calendar year in which the corresponding dividends were paid to shareowners, or (ii) the first calendar year in which the Participant's right to such Dividends Equivalents is no longer subject to a substantial risk of forfeiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. <u>FORFEITUR</u><u>E</u>. Subject to the terms of the Award Certificate, and except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of Continuous Service during the applicable restriction period or upon failure to satisfy a performance goal during the applicable restriction period, Restricted Stock, Restricted Stock Units or Deferred Stock Units that are at that time subject to restrictions shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. <u>DELIVERY</u> <u>OF RESTRICTED</u> <u>STOC</u><u>K</u>. Shares of Restricted Stock shall be delivered to the Participant on the Grant Date either by book-entry registration or by delivering to the Participant, or a custodian or escrow agent (including, without limitation, the Company or one or more of its employees) designated by the Committee, a stock certificate or certificates registered in the name of the Participant. If physical certificates representing shares of Restricted Stock are registered in the name of the Participant, such certificates must bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock.

**ARTICLE 10**

**PERFORMANCE AWARDS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. <u>GRANT</u> <u>OF PERFORMANCE</u> <u>AWARD</u><u>S</u>. The Committee is authorized to grant any Award under this Plan, including cash-settled Awards with performance-based vesting criteria, on such terms and conditions as may be selected by the Committee. Any such Awards with performance-based vesting criteria are referred to herein as Performance Awards. The

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**<u>Exhibit 10.1.i</u>**

Committee shall have the complete discretion to determine the number of Performance Awards granted to each Participant, subject to Section 5.1 and to designate the provisions of such Performance Awards as provided in Section 4.3. All Performance Awards shall be evidenced by an Award Certificate or a written program established by the Committee, pursuant to which Performance Awards are awarded under the Plan under uniform terms, conditions and restrictions set forth in such written program. All Dividend Equivalents credited on Performance Shares during a performance period shall be reinvested in additional Performance Shares, which shall be allocated to the same performance period and shall be subject to being earned by the Participant on the same basis as the original Award.

10.2. <u>PERFORMANCE</u> <u>GOALS</u>. The Committee may establish performance goals for Performance Awards which may be based on any criteria selected by the Committee. Such performance goals may be described in terms of Company-wide objectives or in terms of objectives that relate to the performance of the Participant, an Affiliate or a division, region, department or function within the Company or an Affiliate. If the Committee determines that events or circumstances render the performance goals to be unsuitable, the Committee may modify such performance goals in whole or in part, as the Committee deems appropriate. If a Participant is promoted, demoted or transferred to a different business unit or function during a performance period, the Committee may determine that the performance goals or performance period are no longer appropriate and may (i) adjust, change or eliminate the performance goals or the applicable performance period as it deems appropriate to make such goals and period comparable to the initial goals and period, or (ii) make a cash payment to the participant in an amount determined by the Committee.

**ARTICLE 11**

**DIVIDEND EQUIVALENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. <u>GRANT</u> <u>OF DIVIDEND</u> <u>EQUIVALENT</u><u>S</u><u>.</u> The Committee is authorized to grant Dividend Equivalents with respect to Full-Value Awards granted hereunder, subject to such terms and conditions as may be selected by the Committee; *provided*, *however*, that in no event may any Dividend Equivalents be distributed or paid to a Participant in respect of a Full-Value Award before the underlying shares subject to the Full-Value Award have become vested. Dividend Equivalents shall entitle the Participant to receive payments equal to ordinary cash dividends or distributions with respect to all or a portion of the number of vested Shares subject to a Full-Value Award, as determined by the Committee. The Committee may provide that Dividend Equivalents (i) will be deemed to have been reinvested in additional Shares or otherwise reinvested, or (ii) except in the case of Performance Awards, will be paid or distributed to the Participant as accrued (in which case, such Dividend Equivalents must be paid or distributed no later than the 15th day of the third month following the later of (i) the calendar year in which the corresponding dividends were paid to shareowners, or (ii) the first calendar year in which the Participant's right to such Dividends Equivalents is no longer subject to a substantial risk of forfeiture.

**ARTICLE 12**

**STOCK OR OTHER STOCK-BASED AWARDS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <u>GRANT</u> <u>OF STOCK</u> <u>OR</u> <u>OTHER</u> <u>STOCK-BASED</u> <u>AWARD</u><u>S</u>. The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related to Shares, as deemed by the Committee to be consistent with the purposes of the Plan, including without limitation Shares awarded purely as a "bonus" and not subject to any restrictions or conditions, convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, and Awards valued by reference to book value of Shares or the value of securities of or the performance of specified Parents or Subsidiaries. The Committee shall determine the terms and conditions of such Awards.

**ARTICLE 13**

**PROVISIONS APPLICABLE TO AWARDS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. <u>AWARD</u> <u>CERTIFICATE</u><u>S</u>. Each Award shall be evidenced by an Award Certificate. Each Award Certificate

shall include such provisions, not inconsistent with the Plan, as may be specified by the Committee.

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**<u>Exhibit 10.1.i</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. <u>FORM</u> <u>OF PAYMENT</u> <u>AWARD</u><u>S</u>. At the discretion of the Committee, payment of Awards may be made in cash, Stock, a combination of cash and Stock, or any other form of property as the Committee shall determine. In addition, payment of Awards may include such terms, conditions, restrictions and/or limitations, if any, as the Committee deems appropriate, including, in the case of Awards paid in the form of Stock, restrictions on transfer and forfeiture provisions. Further, payment of Awards may be made in the form of a lump sum, or in installments, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. <u>LIMITS</u> <u>ON</u> <u>TRANSFE</u><u>R</u>. No right or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or an Affiliate, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or an Affiliate. No unexercised or restricted Award shall be assignable or transferable by a Participant other than by will or the laws of descent and distribution or, except in the case of an Incentive Stock Option, pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the Code if such Section applied to an Award under the Plan; *provided*, *however*, that the Committee may (but need not) permit other transfers (other than transfers for value) where the Committee concludes that such transferability (i) does not result in accelerated taxation, (ii) does not cause any Option intended to be an Incentive Stock Option to fail to be described in Section 422(b) of the Code, and (iii) is otherwise appropriate and desirable, taking into account any factors deemed relevant, including without limitation, state or federal tax or securities laws applicable to transferable Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4. <u>BENEFICIARIE</u><u>S</u>. Notwithstanding Section 13.3, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant's death. A beneficiary, legal guardian, legal representative, or other person claiming any rights under the Plan is subject to all terms and conditions of the Plan and any Award Certificate applicable to the Participant, except to the extent the Plan and Award Certificate otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been designated or survives the Participant, any payment due to the Participant shall be made to the Participant's estate. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change or revocation is filed with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5. <u>STOCK</u> <u>TRADING</u> <u>RESTRICTION</u><u>S</u>. All Stock issuable under the Plan is subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal or state securities laws, rules

and regulations and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate or issue instructions to the transfer

agent to reference restrictions applicable to the Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6. <u>TREATMENT</u> <u>UPON</u> <u>DEATH</u> <u>OR</u> <u>DISABILIT</u><u>Y</u>. Except as otherwise provided in the Award Certificate or any special Plan document governing an Award, upon the termination of a person's Continuous Service by reason of death or Disability:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;all of that Participant's outstanding Options and SARs shall become fully exercisable, and shall thereafter remain exercisable for a period of one year or until the earlier expiration of the original term of the Option or SAR;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;all time-based vesting restrictions on that Participant's outstanding Awards shall lapse as of the date of termination, in accordance with the terms and conditions approved by the Committee for that Award; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;the payout opportunities attainable under all of that Participant's outstanding Performance Awards shall be prorated based upon the number of months employed during each measurement period and shall be paid at the end of the Award period based on actual Company performance.

To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Section 422(d) of the Code, the excess Options shall be deemed to be Non-qualified Stock Options.

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**<u>Exhibit 10.1.i</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7. <u>EFFECT</u> <u>OF A</u> <u>CHANGE</u> <u>IN</u> <u>CONTRO</u><u>L</u>. The provisions of this Section 13.7 shall apply in the case of a Change in Control with respect to Awards granted under the Plan, unless otherwise provided in the Award Certificate or any special Plan document or separate agreement with a Participant governing an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;<u>AWARDS</u> <u>ASSUMED</u> <u>OR</u> <u>SUBSTITUTED</u> <u>BY</u> <u>SURVIVING</u> <u>ENTITY</u>. With respect to Awards assumed by the

Surviving Entity or otherwise equitably converted or substituted in connection with a Change in Control

in a manner approved by the Committee or the Board: if within two years after the effective date of the Change in Control, a Participant's employment is terminated without Cause or the Participant resigns for Good Reason, then

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;all of that Participant's outstanding Options or SARs shall become fully vested and exercisable as of the employment termination date and shall thereafter continue or lapse in accordance with the other provisions of the Plan and the Award Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;all time-based vesting restrictions on that Participant's outstanding Awards shall lapse as of the employment termination date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;for Performance Awards that were outstanding immediately prior to effective time of the Change in Control, the number of units issued as a replacement award is determined as of the date of the Change in Control based on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;target Company performance where the Change in Control occurs less than one year after the start of the performance period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;actual Company performance measured through the date of the Change in Control (or, if applicable, the date on which the Company's last complete fiscal quarter immediately preceding the date of the Change in Control ended) where the Change in Control occurs one year or more after the start of the performance period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;<u>AWARDS</u> <u>NOT</u> <u>ASSUMED</u> <u>OR</u> <u>SUBSTITUTED</u> <u>BY</u> <u>SURVIVING</u> <u>ENTITY</u>. Upon the occurrence of a Change in Control, and except with respect to any Awards assumed by the Surviving Entity or otherwise equitably converted or substituted in connection with the Change in Control in a manner approved by the Committee or the Board:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;outstanding Options or SARs shall become fully vested and exercisable as of the date of the Change in Control and shall thereafter continue or lapse in accordance with the other provisions of the Plan and the Award Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;time-based vesting restrictions on outstanding Awards shall lapse as of the date of the Change in

Control; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;with respect to outstanding Performance Awards, performance goals shall be deemed to have been satisfied as described below and all other vesting restrictions shall lapse as of the date of the Change in Control; the level of performance achievement under outstanding Performance Awards shall be calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;Where less than one year has elapsed between the beginning of the performance period and the Change in Control, Performance Awards shall be paid based on target Company performance; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;Where one year or more has elapsed between the beginning of the applicable performance period and the Change in Control, Performance Awards shall be paid out based on actual Company performance measured through the date of the Change in Control (or, if applicable, the date on which the Company's last complete fiscal quarter immediately preceding the date of the Change in Control ended).

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**<u>Exhibit 10.1.i</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8. <u>ACCELERATION</u> <u>FOR</u> <u>ANY</u> <u>OTHER</u> <u>REASO</u><u>N</u>. Regardless of whether an event has occurred as described in Sections 13.6 or 13.7 above, the Committee may in its sole discretion at any time determine that all or a portion of a Participant's Options, SARs, and other Awards in the nature of rights that may be exercised shall become fully or partially exercisable, that all or a part of the time-based vesting restrictions on all or a portion of the outstanding Awards shall lapse, and/or that any performance-based criteria with respect to any Awards shall be deemed to be wholly or partially satisfied, in each case, as of such date as the Committee may, in its sole discretion, declare. The Committee may differentiate among Participants and among Awards granted to a Participant in exercising its discretion pursuant to this Section 13.8. Notwithstanding anything in the Plan, including this Section 13.8, the Committee may not accelerate the payment of any Award if such acceleration would violate Section 409A(a)(3) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9. <u>FORFEITURE</u> <u>EVENT</u><u>S</u>. Awards under the Plan shall be subject to any compensation recoupment policy that the Company may adopt from time to time that is applicable by its terms to the Participant. In addition, the Committee may specify in an Award Certificate that the Participant's rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, voluntary termination prior to Retirement eligibility, termination of employment for Cause, violation of a Non-Compete Agreement, Non-Solicitation Agreement or Confidentiality Agreement, failure by a participant in the Company's Unfunded Supplemental Retirement Plan for Senior Managers ("**SERP**") to submit notice of retirement one year in advance of the effective date of his or her retirement (except in the event of death, Disability or waiver by the Committee), or other conduct by the Participant that is detrimental to the business interest or reputation of the Company or any Affiliate or any act that is determined by the head of human resources or other executive specified by the

Committee, to be a deliberate disregard of the Company's rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10. <u>SUBSTITUTE</u> <u>AWARD</u><u>S</u>. The Committee may grant Awards under the Plan in substitution for stock and stock-based awards held by employees of another entity who become employees of the Company or an Affiliate as a result of a merger or consolidation of the former employing entity with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or stock of the former employing corporation. The Committee may direct that the substitute awards be granted on such terms and conditions as the Committee considers appropriate in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11. <u>MINIMUM</u> <u>VESTING</u> <u>REQUIREMENTS</u>. Notwithstanding anything to the contrary herein, and subject to Section 13.7 and Article 14, Awards shall vest over a period of not less than one year following the date of grant. For the avoidance of doubt, such minimum vesting requirements shall not apply in the event of (i) the Participant's death or disability, (ii) a Change in Control (subject to the requirements of Section 13.7) and (iii) the Committee granting Awards that are not subject to such minimum vesting requirements with respect to 5 percent or less of the Shares available for issuance under the Plan (as set forth in Section 5.1), as may be adjusted pursuant to Section 5.2.

**ARTICLE 14**

**CHANGES IN CAPITAL STRUCTURE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. <u>MANDATORY</u> <u>ADJUSTMENT</u><u>S</u>. In the event of a nonreciprocal transaction between the Company and its shareowners that causes the per-share value of the Stock to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering, or large nonrecurring cash dividend), the authorization limits under Section 5.1 shall be adjusted proportionately, and the Committee shall make such adjustments to the Plan and Awards as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction. Action by the Committee may include: (i) adjustment of the number and kind of shares that may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding Awards or the measure to be used to determine the amount of the benefit payable on an Award; and (iv) any other adjustments that the Committee determines to be equitable. Notwithstanding the foregoing, the Committee shall not make any adjustments to outstanding Options or SARs that would constitute a modification or substitution of the stock right under Treas. Reg. Section 1.409A-1(b)(5)(v) that would be treated as the grant of a new stock right or change in the form of payment for purposes of

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**<u>Exhibit 10.1.i</u>**

Section 409A of the Code. Without limiting the foregoing, in the event of a subdivision of the outstanding Stock (stock-split), a declaration of a dividend payable in Shares, or a combination or consolidation of the outstanding Stock into a lesser number of Shares, the authorization limits under Section 5.1 shall automatically be adjusted proportionately, and the Shares then subject to each Award shall automatically, without the necessity for any additional action by the Committee, be adjusted proportionately without any change in the aggregate purchase price therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. <u>DISCRETIONARY</u> <u>ADJUSTMENT</u><u>S</u>. Upon the occurrence or in anticipation of any corporate event or transaction involving the Company (including, without limitation, any merger, reorganization, recapitalization, combination or exchange of shares, or any transaction described in Section 14.1), the Committee may, in its sole discretion, provide (i) that Awards will be settled in cash rather than Stock, (ii) that Awards will become immediately vested and exercisable (in whole or in part) and will expire after a designated period of time to the extent not then exercised, (iii) that Awards will be assumed by another party to a transaction or otherwise be equitably converted or substituted in connection with such transaction, (iv) that outstanding Awards may be settled by payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction, over the exercise or base price of the Award, (v) that performance targets and performance periods for Performance Awards will be modified, or (vi) any combination of the foregoing. The Committee's determination need not be uniform and may be different for different Participants whether or not such Participants are similarly situated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3. <u>GENERA</u><u>L</u>. Any discretionary adjustments made pursuant to this Article 14 shall be subject to the provisions of Section 15.2. To the extent that any adjustments made pursuant to this Article 14 cause Incentive Stock Options to cease to qualify as Incentive Stock Options, such Options shall be deemed to be Non-qualified Stock Options.

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**<u>Exhibit 10.1.i</u>**

**ARTICLE 15**

**AMENDMENT, MODIFICATION AND TERMINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. <u>AMENDMENT,</u> <u>MODIFICATION</u> <u>AND</u> <u>TERMINATIO</u><u>N</u>. The Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without shareowner approval; *provided*, *however*, that, if an amendment to the Plan would, in the reasonable opinion of the Board or the Committee, either (i) materially increase the number of Shares available under the Plan, (ii) expand the types of awards under the Plan, (iii) materially expand the class of participants eligible to participate in the Plan, (iv) materially extend the term of the Plan, or (v) otherwise constitute a material change requiring shareowner approval under applicable laws, policies or regulations or the applicable listing or other requirements of an Exchange, then such amendment shall be subject to shareowner approval; and *provided*, *further*, that the Board or Committee may condition any other amendment or modification on the approval of shareowners of the Company for any reason, including by reason of such approval being necessary or deemed advisable (i) to comply with the listing or other requirements of an Exchange, or (ii) to satisfy any other tax, securities or other applicable laws, policies or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. <u>AWARDS</u> <u>PREVIOUSLY</u> <u>GRANTE</u><u>D</u>. At any time and from time to time, the Committee may amend, modify or terminate any outstanding Award without approval of the Participant; *provided*, *however*, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;Awards issued under another Company plan prior to the approval by the Company's shareowners of this Plan at the 2024 annual meeting of shareowners (*e.g.*, under the Company's 2009 Amended and Restated Incentive Compensation Plan, as amended and restated as of February 11, 2014), shall

continue to be subject to the terms of such prior plan and the instruments evidencing such awards, unless otherwise specified in the Award Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms of the applicable Award Certificate, no amendment, modification or termination shall, without the Participant's consent, reduce or diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment or termination (with the per-share value of an Option or SAR for this purpose being calculated as the

excess, if any, of the Fair Market Value as of the date of such amendment or termination over the exercise or base price of such Award);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;The original term of an Option or SAR may not be extended without the prior approval of the shareowners of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided in Section 14.1, the exercise price of an Option or base price of a SAR may not be reduced, directly or indirectly, without the prior approval of the shareowners of the Company;

and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;No termination, amendment, or modification of the Plan shall materially adversely affect any Award previously granted under the Plan, without the written consent of the Participant affected thereby. An outstanding Award shall not be deemed to be "materially adversely affected" by a Plan amendment if such amendment would not reduce or diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment (with the

per-share value of an Option or SAR for this purpose being calculated as the excess, if any, of the Fair

Market Value as of the date of such amendment over the exercise or base price of such Award).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. <u>COMPLIANCE</u> <u>AMENDMENT</u><u>S</u>. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, the Board may amend the Plan or an Award Certificate, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or Award Certificate to any present or future law relating to plans of this or similar nature (including, but not limited to, Section 409A of the Code), and to the administrative regulations and rulings promulgated thereunder. By accepting an Award under this Plan, a Participant agrees to any amendment made pursuant to this Section 15.3 to any Award granted under the Plan without further consideration or action.

**ARTICLE 16**

**GENERAL PROVISIONS**

------

**<u>Exhibit 10.1.i</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1. <u>RIGHTS</u> <u>OF PARTICIPANT</u><u>S</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;No Participant or any Eligible Participant shall have any claim to be granted any Award under the Plan.

Neither the Company, its Affiliates nor the Committee is obligated to treat Participants or Eligible Participants uniformly, and determinations made under the Plan may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive, Awards (whether or not such Eligible Participants are similarly situated).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Nothing in the Plan, any Award Certificate or any other document or statement made with respect to the Plan, shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any Participant's employment or status as an officer, or any Participant's service as a director, at any time, nor confer upon any Participant any right to continue as an employee, officer, or director of the Company or any Affiliate, whether for the duration of a Participant's Award or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company or any Affiliate and, accordingly, subject to Article 15, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;No Award gives a Participant any of the rights of a shareowner of the Company unless and until Shares are in fact issued to such person in connection with such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2. <u>WITHHOLDIN</u><u>G</u>. The Company or any Affiliate shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant's FICA obligation in the United States and any social tax obligations for any non-U.S. jurisdiction) required by law to be withheld with respect to any exercise, lapse of restriction or other taxable event arising as a result of the Plan. The obligations of the Company under the Plan will be conditioned on such payment or arrangements and the Company or such Affiliate will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant. Unless otherwise determined by the Committee at the time the Award is granted or thereafter, any such withholding requirement may be satisfied, in whole or in part, by withholding from the Award Shares having a Fair Market Value on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes. All such elections shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

16.3. <u>SPECIAL</u> <u>PROVISIONS</u> <u>RELATED</u> <u>TO</u> <u>SECTION</u> <u>409A</u> <u>OF THE</u> <u>COD</u><u>E</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;<u>GENERA</u><u>L</u>. It is intended that the payments and benefits provided under the Plan and any Award shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Code. The Plan and all Award Certificates shall be construed in a manner that effects such intent. Nevertheless, the tax treatment of the benefits provided under the Plan or any Award is not warranted or guaranteed. Neither the Company, its Affiliates nor their respective directors, employees or advisers (other than in his or her capacity as a Participant) shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan or any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;<u>DEFINITIONAL</u> <u>RESTRICTION</u><u>S</u>. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, to the extent that any amount or benefit that would constitute non-exempt "deferred compensation" for purposes of Section 409A of the Code ("**Non-Exempt Deferred Compensation**") would otherwise be payable or distributable, or a different form of payment (*e.g.*, lump sum or installment) of such Non-Exempt Deferred Compensation would be effected, under the Plan or any Award Certificate by reason of the occurrence of a Change in Control, or the Participant's Disability or separation from service, such Non-Exempt Deferred Compensation will not be payable or distributable to the Participant, and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving rise to such Change in Control, Disability or

------

**<u>Exhibit 10.1.i</u>**

separation from service meet any description or definition of "change in control event", "disability" or "separation from service", as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition). This provision does not affect the dollar amount or prohibit the *vesting* of such Non-Exempt Deferred Compensation upon a Change in Control, Disability or separation from service, however defined. If this provision prevents the payment or distribution of any Non-Exempt Deferred Compensation, or the application of a different

form of payment, such payment or distribution shall be made at the time and in the form that would have applied absent the non-409A-conforming event.

(c) &nbsp;&nbsp;&nbsp;&nbsp;<u>ALLOCATIO</u><u>N</u> <u>AMON</u><u>G</u> <u>POSSIBL</u><u>E</u> <u>EXEMPTIONS</u>. If any one or more Awards granted under the Plan to a Participant could qualify for any separation pay exemption described in Treas. Reg. Section 1.409A-1(b)(9), but such Awards in the aggregate exceed the dollar limit permitted for the separation pay exemptions, the Company (acting through the Committee or the head of human resources) shall determine which Awards or portions thereof will be subject to such exemptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;<u>SIX-MONTH</u> <u>DELAY</u> <u>IN</u> <u>CERTAIN</u> <u>CIRCUMSTANCE</u><u>S</u>. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, if any amount or benefit that would constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Plan or any Award Certificate by reason of a Participant's separation from service during a period in which the Participant is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Committee under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;the amount of such non-exempt deferred compensation that would otherwise be payable during the six-month period immediately following the Participant's separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Participant's separation from service (or, if the Participant dies during such period, within 30 days after the Participant's death) (in either case, the "**Required Delay Period**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.

For purposes of this Plan, the term "<u>Specified</u> <u>Employe</u><u>e</u>" has the meaning given such term in Section 409A of the Code and the final regulations thereunder; *provided, however*, that, as permitted in such final regulations, the Company's Specified Employees and its application of the six-month delay rule of Section 409A(a)(2)(B)(i) of the Code shall be determined in accordance with rules adopted by the Board or any committee of the Board, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of the Company, including this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;<u>INSTALLMENT</u> <u>PAYMENT</u><u>S</u>. If, pursuant to an Award, a Participant is entitled to a series of installment payments, such Participant's right to the series of installment payments shall be treated as a right to a series of separate payments and not to a single payment. For purposes of the preceding sentence, the term "series of installment payments" has the meaning provided in Treas. Reg. Section 1.409A-2(b)(2)(iii) (or any successor thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;<u>TIMING</u> <u>OF RELEASE</u> <u>OF CLAIM</u><u>S</u>. Whenever an Award conditions a payment or benefit on the Participant's execution and non-revocation of a release of claims, such release must be executed and all revocation periods shall have expired within 60 days after the date of termination of the Participant's employment; failing which such payment or benefit shall be forfeited. If such payment or benefit is exempt from Section 409A of the Code, the Company may elect to make or commence payment at any time during such 60-day period. If such payment or benefit constitutes Non-Exempt Deferred Compensation, then, subject to subsection (c) above, (i) if such 60-day period begins and ends in a single calendar year, the Company may make or commence payment at any time during such period at its discretion, and (ii) if such 60-day period begins in one calendar year and ends in the next calendar year, the payment shall be made or commence during the second such calendar year (or any later date specified for such payment under the

------

**<u>Exhibit 10.1.i</u>**

applicable Award), even if such signing and non-revocation of the release occur during the first such calendar year included within such 60-day period. In other words, a Participant is not permitted to influence the calendar year of payment based on the timing of signing the release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;<u>PERMITTED</u> <u>ACCELERATIO</u><u>N</u>. The Company shall have the sole authority to make any accelerated distribution permissible under Treas. Reg. Section 1.409A-3(j)(4) to Participants of deferred amounts; creditor of the Company or any Affiliate. This Plan is not intended to be subject to ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4. <u>UNFUNDED</u> <u>STATUS</u> <u>OF AWARD</u><u>S</u>. The Plan is intended to be an "unfunded" plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Certificate shall give the Participant any rights that are greater than those of a general

creditor of the Company or any Affiliate. This Plan is not intended to be subject to ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5. <u>RELATIONSHIP</u> <u>TO</u> <u>OTHER</u> <u>BENEFIT</u><u>S</u>. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or benefit plan

of the Company or any Affiliate unless provided otherwise in such other plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6. <u>EXPENSE</u><u>S</u>. The expenses of administering the Plan shall be borne by the Company and its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7. <u>TITLES</u> <u>AND</u> <u>HEADING</u><u>S</u>. The titles and headings of the Sections in the Plan are for convenience of reference

only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8. <u>GENDER</u> <u>AND</u> <u>NUMBE</u><u>R</u>. Except where otherwise indicated by the context, any masculine, feminine or

non-binary term used herein also shall include the other terms; the plural shall include the singular and the singular shall include the plural.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9. <u>GOVERNMENT</u> <u>AND</u> <u>OTHER</u> <u>REGULATION</u><u>S</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of the Plan, no Participant who acquires Shares pursuant to the Plan may, during any period of time that such Participant is an affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission under the Securities Act), sell such Shares, unless such offer and sale is made (i) pursuant to an effective registration statement under the Securities Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration requirement of the Securities Act, such as that set forth in Rule 144 promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of the Plan, if at any time the Committee shall determine that the registration, listing or qualification of the Shares covered by an Award upon any Exchange or under any foreign, federal, state or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Award or the purchase or receipt of Shares thereunder, no Shares may be purchased, delivered or received pursuant to such Award unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any condition not acceptable to the Committee. Any Participant receiving or purchasing Shares pursuant to an Award shall make such representations and agreements and furnish such information as the Committee may request to assure compliance with the foregoing or any other applicable legal requirements. The Company shall not be required to issue or deliver any certificate or certificates for Shares under the Plan prior to the Committee's determination that all related requirements have been fulfilled. The Company shall in no event be obligated to register any securities pursuant to the Securities Act or applicable state or foreign law or to take any other action in order to cause the issuance and delivery of such certificates to comply with any such law, regulation or requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.10. <u>GOVERNING</u> <u>LAW</u>. To the extent not governed by federal law, the Plan and all Award Certificates shall be

------

**<u>Exhibit 10.1.i</u>**

construed in accordance with and governed by the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.11. <u>SEVERABILIT</u><u>Y</u>. In the event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable law, such invalidity or unenforceability will not be construed as rendering any other provisions contained herein as invalid or unenforceable, and all such other provisions will be given full force and effect to the same

extent as though the invalid or unenforceable provision was not contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.12. <u>NO</u> <u>LIMITATIONS</u> <u>ON</u> <u>RIGHTS</u> <u>OF COMPAN</u><u>Y</u>. The grant of any Award shall not in any way affect the right or power of the Company to make adjustments, reclassification or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets. The Plan shall not restrict the authority of the Company, for proper corporate purposes, to draft or assume awards, other than under the Plan, to or with respect to any person. If the Committee so directs, the Company may issue or transfer Shares to an Affiliate, for such lawful consideration as the Committee may specify, upon the condition or understanding that the Affiliate will transfer such Shares to a Participant in accordance with the terms of an Award granted to such Participant and specified by the

Committee pursuant to the provisions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.13. <u>INDEMNIFICATIO</u><u>N</u>. The Company shall indemnify each officer or director who is made, or threatened to be made, a party to any claim, action, suit or proceeding by reason of any action taken or failure to act under the Plan, to the fullest extent permitted by applicable law. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company's charter or bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INTERNATIONAL PAPER COMPANY | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INTERNATIONAL PAPER COMPANY |
| By | /s/ Melissa S. Flores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Name: Melissa S. Flores | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Name: Melissa S. Flores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title: Senior Vice President, Chief Human <br> Resources Officer | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title: Senior Vice President, Chief Human <br> Resources Officer |

---

## Exhibit 10.2

**<u>Exhibit 10.2</u>**<br>

**INTERNATIONAL PAPER COMPANY**

**RESTRICTED STOCK AND<br>DEFERRED COMPENSATION PLAN<br>FOR NON-EMPLOYEE DIRECTORS**

**Effective May 11, 2009**

**As Amended and Restated February 10, 2026**

**1. Purpose and Effective Date of Plan**

This plan shall be known as the International Paper Company Restricted Stock and Deferred Compensation Plan for Non-Employee Directors (the "Plan"). The purpose of the Plan is to enable International Paper Company ("International Paper") to attract and retain persons of outstanding competence to serve as Non-Employee Directors on the Board, and to permit such Non-Employee Directors to defer receipt of all or a portion of their annual retainer and committee fees.

This Plan is a subplan of the International Paper Company 2024 Long-Term Incentive Compensation Plan ("LTICP"). Unless otherwise defined in this Plan, capitalized terms used in the Plan shall have the meanings assigned to them in the Plan.

This Plan does not authorize or contemplate any additional Shares beyond the Shares authorized under the LTICP. The Plan incorporates by reference herein the terms of the LTICP and, except as expressly stated herein, in the event of any actual or alleged conflict between the provisions of the LTICP and the provisions of this Plan as it relates to restricted Shares, the provisions of the LTICP shall be controlling and determinative.

This Plan is a non-funded, non-qualified deferred compensation plan that is intended to comply with Section 409A of the Code. The Plan is not subject to full protection under the Employee Retirement Income Security Act of 1974, as amended ("ERISA").

**2. Eligibility**

Participation in this Plan is limited to Non-Employee Directors. An employee-director who retires from employment with International Paper (and its subsidiaries) shall become eligible to participate in this Plan upon his or her re-election as a Non-Employee Director.

**3. Equity Compensation**

&nbsp;&nbsp;&nbsp;&nbsp;(a)Restricted Stock Awards are made to each Non-Employee Director on an annual basis on the day of the Annual Meeting of Shareowners of International Paper (the "Annual Meeting") in an amount equal to: (i) a fixed dollar value determined by the independent members of the Board based on a review of competitive market practices of International Paper's comparator peer group of companies for compensation analysis (the "Compensation Comparator Group"), *divided by* (ii) Fair Market Value of the Shares on the last business day immediately preceding the Annual Meeting. The fixed dollar value for the annual Restricted Stock Awards shall be set forth on <u>Exhibit A</u> hereto, as may be approved and changed from time to time by the independent members of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(b)For purposes of this Plan, a "Vesting Period" shall mean the approximately one-year period beginning on the date of the Annual Meeting for a given year and ending on the last business day immediately preceding the next Annual Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;(c)A Non-Employee Director who is elected by the Board to fill a vacancy during a Vesting Period shall receive a Restricted Stock Award with respect to a number of Shares representing a *prorata* portion of the Restricted Stock Awards granted to Non-Employee Directors for the Vesting Period in which such Non-Employee Director is elected, determined by dividing the number of full months of eligible service during the Vesting Period by the number twelve (12).

------

<u><br></u>

&nbsp;&nbsp;&nbsp;&nbsp;(d)Each Restricted Stock Award under this Plan shall be immediately registered in book entry form in the name of the Non-Employee Director, but shall be expressly subject to all of the restrictions, service provisions, and all other terms and conditions set forth in <u>Section 6</u> of this Plan and the terms and conditions of the LTICP, of which this Plan is a subplan.

**4. Cash Compensation**

&nbsp;&nbsp;&nbsp;&nbsp;(a)As soon as practicable following the Annual Meeting, each Non-Employee Director shall receive an annual cash retainer ("Cash Retainer Fee") in an amount determined by the independent members of the Board. Each Non-Employee Director who serves as Chair of a standing committee of the Board, as a member of a committee designated by the Board to have member fees, or as Lead Director, shall receive an additional annual cash retainer (such "Committee Fee" and "Lead Director Fee" shall, together with the Cash Retainer Fee, be referred to as "Cash Compensation"). The amount of the Cash Compensation shall be determined by the independent members of the Board based on a review of competitive market practices of the International Paper's Compensation Comparator Group. The Cash Retainer Fee and Committee Fees shall be set forth on <u>Exhibit A</u> hereto, as approved and changed from time to time by the independent members of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(b)Each Non-Employee Director may elect, in the form and manner prescribed by International Paper, to receive Restricted Stock in lieu of all or a portion of his or her Cash Compensation. A Non-Employee Director who elects to receive Restricted Stock in lieu of Cash Compensation will receive a number of Shares of Restricted Stock determined by dividing (A) the sum of (i) the portion of Cash Compensation elected to be received in the form of Restricted Stock, plus (ii) an additional twenty percent (20%) of the Cash Retainer Fee, by (B) Fair Market Value of the Shares on the last business day immediately preceding the first day of the Vesting Period.

**5. Deferral Elections**

&nbsp;&nbsp;&nbsp;&nbsp;(a)Prior to the first day of a calendar year, Non-Employee Directors may elect to defer in the form of cash-settled restricted stock units ("RSUs") receipt of all or a portion of any Restricted Stock Awards or Cash Compensation for services on the Board in the following Vesting Period by filing an initial deferral election notice in the manner and form prescribed by International Paper (the "Initial Deferral Election Notice"), which such Initial Deferral Election Notice shall specify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the portion of the Restricted Stock Award and/or the portion of the Cash Retainer Fee that will be deferred in the form of RSUs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)in the case of a deferred Cash Retainer Fee, whether distribution will be made to such Non-Employee Director in cash or in the form of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;(b)Non-Employee Directors newly elected to the Board may submit an Initial Deferral Election Notice by the thirtieth (30<sup>th</sup>) day after becoming eligible to participate in the Plan (including any other plan that is required to be treated as a single plan with the Plan under Section 409A of the Code), but such deferral election shall be applicable only with respect to compensation earned after the filing of such Initial Deferral Election Notice.

&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding anything to the contrary herein, an Initial Deferral Election Notice may not be completed during a period when Non-Employee Directors and officers of International Paper are restricted from trading in Shares, referred to as a "Blackout Period."

(d) Each Election Form (as defined below) will remain in effect until superseded or revoked pursuant to <u>Section 5(e)</u> or <u>Section 5(f)</u>, as applicable.

(e) A Non-Employee Director who has an Initial Election Form on file with International Paper may file a subsequent deferral election notice (a "Superseding Deferral Election Notice," and together with the Initial Deferral Election Notice, the "Election Notices") at any time. Such Superseding Deferral Election Notice shall apply to any Restricted Stock Awards or Cash Retainer Fee that is granted to such Non-Employee Director for any period of Continuous Service that commences following the year in which such Superseding Deferral Election Notice is filed.

(d)(f) A Non-Employee Director may revoke an Election Notice at any time by providing written notice to International Paper Such revocation shall apply to any Restricted Stock Award or Cash Retainer Fee that is granted to such Non-Employee Director for any period of service that commences following the year in which the written notice revoking the original Election Notice is filed.

------

<u><br></u>

(e)(g) The Administrator, in its sole discretion, may accelerate the distribution of a Non-Employee Director's deferred Restricted Stock Awards or RSUs if such Non-Employee Director experiences an unforeseeable emergency (as defined under Treas. Reg. Section 1.409A-3(i)(3)); *provided* that such distribution complies with Section 409A of the Code. To request such a distribution, a Non-Employee Director must file an application with the Administrator and furnish such supporting documentation as the Administrator may require. Such application shall specify the basis for the distribution and the amount to be distributed. If such request is approved by the Committee, distribution shall be made in a lump sum payment as soon as administratively practicable, but not more than thirty (30) days, following such approval.

**6. Restrictions, Removal of Restrictions, and Terms and Conditions of Awards of Restricted Shares**

&nbsp;&nbsp;&nbsp;&nbsp;(a)A Non-Employee Director shall have the right to receive all dividends and other distributions made with respect to restricted Shares registered in his or her name, and shall have the right to vote or execute proxies with respect to such registered restricted Shares, unless and until such Shares are forfeited pursuant to the provisions of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;(b)A Non-Employee Director shall have the right to elect, in the form and manner prescribed by International Paper, the manner in which dividends on Restricted Stock Awards shall be paid to the Non-Employee Director (*i.e*., in cash or reinvested in additional Shares of Restricted Stock).

&nbsp;&nbsp;&nbsp;&nbsp;(c)As indicated above, Restricted Stock will normally be issued in book-entry form until the provisions of the Plan relating to removal of the restrictions have been satisfied. If stock certificates are issued for Restricted Stock, such certificates shall be endorsed with a legend referring to the restrictions imposed by this Plan. Possession of the certificates of Shares shall be retained by the Corporate Secretary of International Paper until the provisions of the Plan relating to removal of the restrictions have been satisfied. After the expiration of the restricted period, stock certificates without such legend shall be delivered to the Non-Employee Director or his or her designee upon request.

&nbsp;&nbsp;&nbsp;&nbsp;(d)Restricted Stock may not be sold, assigned, pledged or otherwise transferred by the Non-Employee Director unless and until all of the restrictions imposed by this Plan have been removed pursuant to the provisions of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;(e)Restricted Stock Awards granted under this Plan shall become free of restrictions and non-forfeitable on the first (1<sup>st</sup>) anniversary of the date of grant of the Restricted Stock Award. Notwithstanding the foregoing or anything to the contrary in <u>Section 13.11</u> of the LTICP, Restricted Stock granted under this Plan shall become free of restrictions and non-forfeitable upon the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the Non-Employee Director's death or disability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the Non-Employee Director's Retirement; *provided* that the number of Shares subject to the Restricted Stock that will become free of restrictions and nonforfeitable upon such Retirement will be prorated for the number of months of service for the Vesting Period in which Retirement occurs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)the Non-Employee Director's Retirement resignation or failure to stand for re-election with the consent of the Board (which shall mean approval by at least eighty percent (80%) of the directors voting, with the affected Non-Employee Director abstaining), or any failure to be reelected to the Board after being duly nominated. In the event of a Non-Employee Director's resignation with consent during the first (1<sup>st</sup>) year in which Restricted Stock Awards are granted to a Non-Employee Director, the number of Shares with respect to which the restrictions shall be removed will be a *prorata* portion of Shares originally awarded determined by dividing the number of months served during the first year of the award by twelve (12).

Termination of Continuous Service as a director for any reason other than those specified in this <u>Section 6(e)</u>, including, without limitation, any involuntary termination effected by Board action, shall result in forfeiture of the restricted Shares.

Mandatory Retirement age under this Plan shall have the definition as set forth in the International Paper Corporate Governance Guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;(f)Notwithstanding anything to the contrary in the LTICP, in the event of a Change in Control:

------

<u><br></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the Board may, in its discretion, accelerate (x) the removal of all restrictions relating to all or a portion of the Shares subject to Restricted Stock Awards or (y) the vesting and payment of all or a portion of the RSUs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)if a Non-Employee Director's Continuous Service is terminated by International Paper in connection with a Change of Control, (x) any forfeiture provisions applicable to the Restricted Stock then-held by the Non-Employee Director will immediately lapse and (y) all RSUs then-held by the Non-Employee Director will immediately vest and be paid in accordance with <u>Section 8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(iii)Any Shares that become issuable in respect of Restricted Stock Awards pursuant to <u>Section 6(f)(ii)</u> may, at the Board's election, be settled in cash in an amount equal to then-current Fair Market Value of the Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;(g)All Shares with respect to which the restrictions are not removed and all RSUs that do not vest in accordance with the provisions of this Plan shall be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;(h)All Shares awarded to a Non-Employee Director under this Plan shall remain subject to the Plan's restrictions prohibiting sales or transfer of such Shares during the period of time while the Non-Employee Director continues to serve as a director of International Paper, and all certificates of Shares shall be endorsed with a legend referring to such restriction. In addition, the issuance or delivery of any Shares may be postponed for such period as may be required to comply with any applicable requirements of any national securities exchange or any requirements under any other law or regulation applicable to the issuance or delivery of such Shares, and International Paper shall not be obligated to issue or deliver any such Shares if the issuance or delivery thereof shall constitute a violation of any provision of any law or any regulation of any governmental authority or any national securities exchange.

**7. Restrictions, Removal of Restrictions, and Terms and Conditions of Awards of Restricted Share Units**

&nbsp;&nbsp;&nbsp;&nbsp;(a)All amounts deferred in the form of RSUs shall be issued pursuant to, and subject to the terms and conditions of, the LTICP.

&nbsp;&nbsp;&nbsp;&nbsp;(b)All RSUs deferred in accordance with this Plan shall be credited to a bookkeeping account on behalf of the Non-Employee Director. Such account shall be credited with a number of RSUs (calculated to the nearest thousandth of a unit) computed by dividing: (i) the value of the Cash Compensation and Restricted Stock deferred for the applicable Vesting Period by (ii) the Fair Market Value of the Shares, as reported for the New York Stock Exchange Composite Transactions on the last business day immediately preceding the first day of the Vesting Period.

&nbsp;&nbsp;&nbsp;&nbsp;(c)RSUs may not be sold, assigned, pledged or otherwise transferred by the Non-Employee Director. If any such assignment is made, International Paper may disregard such assignment and may discharge its obligation hereunder by issuing Shares or cash payment in respect of the RSUs as though no such assignment had been made.

&nbsp;&nbsp;&nbsp;&nbsp;(d)A Non-Employee Director has an interest as an unsecured creditor in the cash value represented by the RSUs in his or her account, but has no interests or rights in any Shares or dividends, and has no right to elect delivery of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(e)RSUs shall vest annually upon the last day of the Vesting Period, prorated for the number of months of service in such Vesting Period.

&nbsp;&nbsp;&nbsp;&nbsp;(f)Whenever a dividend is declared on the Shares, the number of RSUs in the Non-Employee Director's account shall be increased by the result of the following calculation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the number of RSUs in the Non-Employee Director's account multiplied by any cash dividend declared by International Paper on a Share, divided by the Fair Market Value of the Shares on the business day immediately prior to the related dividend payment date as reported for New York Stock Exchange Composite Transactions; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the number of RSUs in the Non-Employee Director's account on the related dividend payment date multiplied by any stock dividend declared by International Paper on a Share.

&nbsp;&nbsp;&nbsp;&nbsp;(g)A statement shall be delivered to each Non-Employee Director in this Plan annually setting forth the amount deferred, the amount of RSUs credited to the Non-Employee Director's account, the amount of any payments made during the year, and the Fair Market Value of the Shares for determining the number of RSUs earned and credited through dividend equivalents.

**8. Time and Method of Payment of RSUs**

------

<u><br></u>

&nbsp;&nbsp;&nbsp;&nbsp;(a)After a Non-Employee Director's Continuous Service ceases (if such Non-Employee Director has incurred a "separation from service" as defined in Section 409A of the Code and applicable regulations), payment of RSUs shall be made in the form of a lump sum cash payment in January of the next calendar year following the year in which the Non-Employee Director's Continuous Service Terminates.

&nbsp;&nbsp;&nbsp;&nbsp;(b)The amount payable to the Non-Employee Director under <u>Section 8(a)</u> shall be equal to (i) the number of RSUs credited to the Non-Employee Director's account, *multiplied by* (ii) Fair Market Value of the Shares as reported for the New York Stock Exchange Composite Transactions on the last business day of the calendar year in which the Non-Employee Director's Continuous Service terminates.

**9. Amendment or Termination of Plan**

International Paper reserves the right to amend, modify or terminate this Plan at any time by action of the Board; *provided* that (a) such action shall not materially adversely affect any Non-Employee Director's rights under the provisions of this Plan with respect to Restricted Stock Awards or RSUs that were made prior to such action without such Non-Employee Director's prior written consent (unless such amendment is necessary or advisable, as determined in the Administrator's sole discretion, to avoid adverse or unintended tax consequences under Section 409A of the Code) and (b) such amendment is consistent with ERISA, Section 409A of the Code and any regulations promulgated thereunder.

**10. Source of Funds for Payment of RSUs**

Any benefit payments to Non-Employee Directors pursuant to this Plan shall be paid from the general assets of International Paper. Non-Employee Directors shall have the status of general unsecured creditors of International Paper and the Plan constitutes a mere promise by International Paper to make benefit payments in the future. Any contract, policy or other asset which International Paper may utilize to assure themselves of the funds to provide the benefits under the Plan shall not serve in any way as security for the payment of Plan benefits and International Paper shall not be under any obligation whatsoever to purchase or maintain any contract, policy or other asset to provide the benefits payable under the Plan.

**11. Administration of Plan**

This Plan shall be administered by the Senior Vice President, Human Resources of International Paper (the "Administrator"). All decisions which are made by the Administrator with respect to interpretation of the terms of the Plan with respect to the restrictions, terms and conditions of the Cash Retainers Fees, Restricted Stock and the RSUs awarded to Non-Employee Directors under this Plan, and with respect to any questions or disputes arising under this Plan, shall be final and binding on International Paper and the Non-Employee Directors (and their heirs or beneficiaries).

**12. Changes in Stock and Adjustment of Number under the Plan**

In the event of any changes in capital structure as described in <u>Article 14</u> of the LTICP (other than a stock dividend as provided above), the number of Shares awarded and earned under this Plan (including the Shares underlying Restricted Stock Awards and RSUs deferred pursuant to this Plan) shall be equitably and proportionately adjusted by the Committee in accordance with <u>Article 14</u> of the LTICP.

**13. Designation of Beneficiary**

A Non-Employee Director may file with the Administrator a designation of beneficiary or beneficiaries on a form approved by the Administrator (which designation may be changed or revoked by the Non-Employee Director's sole action) to receive distribution of all or a designated portion of the Non-Employee Director's Restricted Stock account and/or RSUs under this Plan upon the death or Disability of the Non-Employee Director. If no beneficiary has been designated or survives the Non-Employee Director, then the account shall be distributed as directed by the executor or administrator of the Non-Employee Director's estate.

------

**<u>Exhibit 10.2</u>**<br>

**<u>EXHIBIT A</u>**

**Non-Employee Director Compensation<br>as of February 10, 2026<br>UNDER THE<br>Non-Employee Restricted Stock and Deferred Compensation Plan**

The following compensation amounts are effective for the Vesting Period beginning May 11, 2026, and shall remain in effect for future Vesting Periods until changed by the independent members of the Board.

---

| | |
|:---|:---|
| **<u>Type of Fee</u>**<br>**<u>Board Fees</u>** | **Approved Program<br>(2026-2027)** |
| Cash Retainer | &nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;175000 |
| Equity Retainer | &nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;135000 |
| Audit and Finance Committee Chair | &nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;25000 |
| Audit and Finance Committee Member | &nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;10000 |
| Management Development & Compensation Committee Chair | &nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;20000 |
| Governance Committee Chair | &nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;20000 |
| Public Policy and Environment Chair | &nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;20000 |
| **<u>Lead Director Fee</u>** |  |
| Lead Director | &nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;40000 |

---

## Exhibit 10.2

**<u>Exhibit 10.2.i</u>**

**International Paper Company**

**Form of Notice of Award under the**

**International Paper Company Restricted Stock <br>and Deferred Compensation Plan for Non-Employee Directors**

**Restricted Stock Units (Cash Settled)**

**###NON-EMPLOYEE DIRECTOR_NAME###**

**###HOME_ADDRESS###**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

THIS CERTIFIES THAT, effective May [●], **####**, upon the recommendation of the Governance Committee of the Board of Directors (the "Board") of International Paper Company (the "Company"), the Board has authorized the grant (the "Award") of time-based stock units ("Restricted Stock Units" or "RSUs") to **###NON-EMPLOYEE DIRECTOR**_**NAME###** (the "Participant") under the terms and conditions of the International Paper Company Restricted Stock and Deferred Compensation Plan for Non-Employee Directors (the "Non-Employee Directors Subplan"), a subplan of the International Paper Company 2024 Long-Term Incentive Compensation Plan (the "Plan"). The Award is subject to the Terms and Conditions on the next page of this certificate.

**<u>Date of Award</u>: &nbsp;&nbsp;&nbsp;&nbsp;May [●], ####**

**<u>Number of RSUs</u>:&nbsp;&nbsp;&nbsp;&nbsp;###TOTAL_AWARDS###**

**<u>Restriction Period</u>:&nbsp;&nbsp;&nbsp;&nbsp;From the Date of Award through January 1 following the year in which the Participant terminates service as a non-employee director.**

**<u>Vesting Date</u>:&nbsp;&nbsp;&nbsp;&nbsp;Annually upon the last day of the Restriction Period, prorated for the number of months of service in such Restriction Period.&nbsp;&nbsp;&nbsp;&nbsp;**

Capitalized terms not otherwise defined in this certificate have the meaning assigned to them in the Plan or the Non-Employee Directors Subplan, as applicable. In the event of any inconsistency between the Terms and Conditions and the provisions of the Non-Employee Directors Subplan, the Non-Employee Directors Subplan will govern. By accepting this Award, the Participant acknowledges receipt of a copy of the Company's LTIP prospectus, represents that he or she is familiar with the terms and conditions of the Non-Employee Directors Subplan and the Plan and agrees to accept this Award subject to all the terms and conditions of the Non-Employee Directors Subplan, the Plan and the Award.

IN WITNESS WHEREOF, the Company has caused this Award to be executed by its [●] as of the [●] day of May, **####.**

Melissa S. Flores

Senior Vice President, Chief Human Resources Officer<br>Administrator of the Non-Employee Directors Subplan

------

**<u>Exhibit 10.2.i</u>**

**TERMS AND CONDITIONS OF RESTRICTED STOCK UNIT AWARD – CASH SETTLED**

This award agreement is made between you, the Participant, and International Paper Company, a New York corporation (the "Company"), by direction of the Board of Directors of the Company (the "Board"). This award ("Award") is subject to the provisions of the Company's Restricted Stock and Deferred Compensation Plan for Non-Employee Directors (the "Non-Employee Directors Subplan"), a subplan of the International Paper Company 2024 Long-Term Incentive Compensation Plan (the "Plan"). Capitalized terms not defined herein are defined in the Non-Employee Directors Subplan or the Plan, as applicable. This award agreement serves as your acceptance of the Award and the terms and conditions described in this award agreement. You should review all the provisions below.

**General Provisions** 

**1. Compliance with Laws and Regulations.** It is intended that this Award, and any securities issued pursuant to this Award, will comply with all provisions of federal and applicable state securities laws.

**2. Restricted Stock Units** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All restricted stock units ("RSUs") issued under this Award will vest on January 1 following the year in which the director terminates service as a director (the "Restriction Period") as described in the Notice of Award. RSUs may not be sold, transferred, pledged or assigned at any time prior to the settlement of the RSUs in cash. You will be asked to file a beneficiary designation form with the Company that names the beneficiary or beneficiaries of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)All dividend equivalent units accrued during the Restriction Period will be calculated in accordance with <u>Section 7(e)</u> of the Non-Employee Directors Subplan.

**3.&nbsp;&nbsp;&nbsp;&nbsp;Payment of Withholding Taxes.** Generally, to pay withholding taxes due on an Award upon payout, the Company will reduce the cash payable to you upon settlement of the RSUs by an amount sufficient to pay statutorily required withholding taxes.

**4.&nbsp;&nbsp;&nbsp;&nbsp;Method of Determining Actual Award and Removal of Restrictions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)As soon as practicable after the vesting date during the Restriction Period as set forth in the Notice of Award, or as soon as practicable after the date of termination of your service for a reason described in <u>Section 4(b)-(d)</u> below, you will receive, in settlement of the Award, a cash payment equal to the Fair Market Value of a number of Shares subject to the RSUs equal to the number of RSUs that vest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)You will receive a cash payment in respect of full (non-prorated) RSUs if your service with the Company terminates due to your death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)You will receive a cash payment in respect of prorated RSUs if

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)your service with the Company terminates due to Retirement at the end of the calendar year during which you reach mandatory Retirement age, as defined in the *International Paper Company Corporate Governance Guidelines*, prorated for the number of months of service for the performance year in which Retirement occurs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)you resign or fail to stand for re-election with the consent of the Board, or any failure to be re-elected after being duly nominated. In the event of a resignation with consent during the first year in which an Award is received, the number of RSUs that will be settled in cash will be a prorated portion of RSUs originally awarded, determined by dividing the number of months of your service during the first year of the award by 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Termination of your Continuous Service for any reason other than those specified above, including any involuntary termination effected by Board action, shall result in forfeiture of the RSUs.

**5.&nbsp;&nbsp;&nbsp;&nbsp;Changes in Stock.** In the event of any changes in capital structure of the Company as described in <u>Article 14</u> of the Plan, the RSUs shall be equitably and proportionately adjusted by the Committee in accordance with <u>Article 14</u> of the Plan.

------

**<u>Exhibit 10.2.i</u>**

**6.&nbsp;&nbsp;&nbsp;&nbsp;Change in Control.** In the event of a Change in Control, the RSUs will be treated in accordance with <u>Section 6(f)</u> of the Non-Employee Directors Subplan.

**7. Other Terms and Conditions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)You acknowledge that you have read, understood and agree with the Non-Employee Directors Subplan, the Plan, this award agreement and any jurisdiction-specific notices that may be applicable to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Board may, at any time and from time to time, amend, modify or terminate the Non-Employee Directors Subplan in accordance with <u>Section 9</u> thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)You (or your estate or beneficiary) will promptly provide all information related to this Award that is requested by the Company for its tax returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)You (and your surviving spouse, beneficiary, executor, administrator, heirs, successors or assigns) hereby agree to accept as binding, conclusive and final all decisions that are made by the Administrator with respect to interpretations of the terms and condition of the Non-Employee Directors Subplan, the Plan or this Award and with respect to any questions or disputes arising under the Non-Employee Directors Subplan or this Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Participation in the Plan and receipt of this Award will not give you any right to a subsequent award, or any right to continued service on the Board for any period, nor will the granting of an Award give the Company any right to your continued services for any period. You understand that this Award is in addition to, and part of your compensation for service as a non-employee director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)You agree that if execution of one or more restrictive covenant agreements is required, this Award will be contingent upon your execution of such agreement(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)This Award is intended to be exempt from Section 409A of the Code, and will be interpreted in accordance with such intent. This Non-Employee Directors Subplan is a non-funded, non-qualified deferred compensation plan that is intended to comply with Section 409A of the Code. The Non-Employee Directors Subplan is not subject to full protection under ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Eligibility to participate in the Non-Employee Directors Subplan, and any subsequent offers and participation, are not intended to constitute a public offer in any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Non-Employee Directors Subplan is offered by the Company and administered by the Administrator. All Non-Employee Directors Subplan documents are maintained by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)All Non-Employee Directors Subplan documents may be communicated and stored electronically using means that are secure, private and accessible to the relevant parties. You consent to the sole use of electronic communications (including, without limitation, offer and acceptance) in connection with the Non-Employee Directors Subplan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)You acknowledge that your personal data will be processed in accordance with the data privacy policy, notice and/or agreement that is applicable to you in connection with your service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)You accept that the Non-Employee Directors Subplan and Plan documents, including all related communications, may be in the English language only and it is possible that no translated or interpreted versions will be provided. The English versions of such documents will always prevail in the event of any inconsistency with translated or interpreted documents. You agree that you are responsible for ensuring that you fully understand the Non-Employee Directors Subplan and Plan documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)You are strongly encouraged to consult your personal tax adviser(s) regarding the tax treatment of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)The Award and related benefits under the Non-Employee Directors Subplan and Plan are in no way secured, guaranteed or warranted by the Company or any Affiliate and participation in the Non-Employee Directors Subplan involves certain risks. You should exercise caution in relation to Non-Employee Directors Subplan offers and/or participation. You should obtain independent professional advice if you are in doubt about any of the contents of the Non-Employee Directors Subplan documents and before taking actions in relation to the Non-Employee Directors Subplan.

------

**<u>Exhibit 10.2.i</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)You acknowledge that there is a risk that Shares may fall or rise in value. Market forces may impact the price of Shares and, in the worst case, the Fair Market Value of the Shares subject to your RSUs may become zero. You agree that neither the Company nor any Affiliate is liable for any loss due to movements in Share value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)If Shares are traded in a currency that is not the currency of your jurisdiction, the value of the Shares to you may also be affected by movements in the exchange rate. There may also be an exchange rate risk in relation to any Non-Employee Directors Subplan-related currency that is not the currency of your jurisdiction. You agree that neither the Company nor any Affiliate is liable for any loss due to movements in the exchange rate or any charges imposed in relation to the conversion or transfer of currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)You acknowledge that rules on dealing notification, insider trading and market abuse (including the terms of the Company's Insider Trading Policy) may from time to time apply to the Award and related benefits and may prohibit or delay actions or decisions in relation to such payments or benefits. You agree that you are solely responsible for compliance with such rules and that neither the Company nor any Affiliate is liable for any loss due to such rules or for any breaches of such rules by you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)Under local exchange controls, currency controls or foreign asset reporting requirements, you may be subject to certain notification, approval and/or repatriation obligations with respect to Shares and any funds you may transfer or receive in connection with the Non-Employee Directors Subplan. Among other things, such aforementioned obligations may affect your ability to hold Shares, bring Shares into your jurisdiction, reinvest dividends and receive any applicable dividends or dividend equivalents, Share sale proceeds and other payments in a local or foreign account. You may further be subject to local securities law and/or exchange control restrictions and other obligations in the event of a resale of Shares. You agree that you are solely responsible for ensuring compliance with any such obligations that may apply to you in connection with the Non-Employee Directors Subplan, and the Company recommends that you obtain independent professional advice in this regard. In the event that you fail to comply with any such obligations, you agree that neither the Company nor any Affiliate is liable in any way for resulting fines or other penalties.

## Exhibit 10.2

**<u>Exhibit 10.2.ii</u>**

**International Paper Company**

**Form of Notice of Award Under the**

**International Paper Company Restricted Stock <br>and Deferred Compensation Plan for Non-Employee Directors**

**Restricted Stock (Stock Settled)**

**###NON-EMPLOYEE DIRECTOR_NAME###**

**###HOME_ADDRESS###**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

THIS CERTIFIES THAT, effective May [●], **####**, upon the recommendation of the Governance Committee of the Board of Directors (the "Board") of International Paper Company (the "Company"), the Board has authorized the grant of a Restricted Stock Award (the "Award") to **###NON-EMPLOYEE DIRECTOR**_**NAME###** (the "Participant") under the terms and conditions of the International Paper Company Restricted Stock and Deferred Compensation Plan for Non-Employee Directors (the "Non-Employee Directors Subplan"), a subplan of the International Paper Company 2024 Long-Term Incentive Compensation Plan (the "Plan"). The Award is subject to the Terms and Conditions on the next page of this certificate.

**<u>Date of Award</u>: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; May [●], ####**

**<u>Number of Shares of Restricted Stock</u>:&nbsp;&nbsp;&nbsp;&nbsp;###TOTAL_AWARDS###**

**<u>Full Restriction Period</u>:&nbsp;&nbsp;&nbsp;&nbsp; One-year period beginning on the date of the Annual Meeting of Shareowners of International Paper for a given year and ending on the last business day immediately preceding the next Annual Meeting of Shareowners of International Paper.&nbsp;&nbsp;&nbsp;&nbsp;**

The Board has approved the target number of Restricted Stock for this Award, which is **###TOTAL_AWARDS###.** The Restricted Stock Award will remain restricted until vested and will be settled in unrestricted Shares at the end of the Restriction Period.

Capitalized terms not otherwise defined in this certificate have the meaning assigned to them in the Plan or the Non-Employee Directors Subplan, as applicable. In the event of any inconsistency between the Terms and Conditions and the provisions of the Non-Employee Directors Subplan, the Non-Employee Directors Subplan will govern. By accepting this Award, the Participant acknowledges receipt of a copy of the Company's LTIP prospectus, represents that he or she is familiar with the terms and conditions of the Non-Employee Directors Subplan and the Plan and agrees to accept this Award subject to all the terms and conditions of the Non-Employee Directors Subplan, the Plan and the Award.

IN WITNESS WHEREOF, the Company has caused this Award to be executed by its [●] as of the [●] day of May, **####**

Melissa S. Flores

------

**<u>Exhibit 10.2.ii</u>**

Senior Vice President, Chief Human Resources Officer<br>Administrator of the Non-Employee Directors Subplan

------

**<u>Exhibit 10.2.ii</u>**

**TERMS AND CONDITIONS OF RESTRICTED STOCK AWARD – STOCK SETTLED**

This award agreement is made between you, the Participant, and International Paper Company, a New York corporation (the "Company"), by direction of the Board of Directors of the Company (the "Board"). This award ("Award") is subject to the provisions of the Company's Restricted Stock and Deferred Compensation Plan for Non-Employee Directors (the "Non-Employee Directors Subplan"), a subplan of the International Paper Company 2024 Long-Term Incentive Compensation Plan (the "Plan"). Capitalized terms not defined herein are defined in the Non-Employee Directors Subplan or the Plan, as applicable. This award agreement serves as your acceptance of the Award and the terms and conditions described in this award agreement. You should review all the provisions below.

**General Provisions** 

**1. Compliance with Laws and Regulations.** It is intended that this Award, and any securities issued pursuant to this Award, will comply with all provisions of federal and applicable state securities laws.

**2. Restricted Stock** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All Restricted Stock issued under this Award will vest, and the restrictions thereon shall lapse, on the last business day immediately preceding the next Annual Meeting of Shareowners of International Paper that follows the Date of Award (the period before the Restricted Stock vests, the "Restriction Period") as described in the Notice of Award. Restricted Stock may not be sold, transferred, pledged or assigned at any time prior to the vesting of the Award. You will be asked to file a beneficiary designation form with the Company that names the beneficiary or beneficiaries of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)All dividends accrued during the Restriction Period will be paid in accordance with Section 6(a) of the Non-Employee Directors Subplan.

**3.&nbsp;&nbsp;&nbsp;&nbsp;Payment of Withholding Taxes.** Generally, to pay withholding taxes due on an Award upon payout, the Company will reduce the number of shares of Company common stock payable to you by an amount sufficient to pay statutorily required withholding taxes.

**4.&nbsp;&nbsp;&nbsp;&nbsp;Method of Determining Actual Award and Removal of Restrictions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)As soon as practicable after the vesting date during the Restriction Period as set forth in the Notice of Award, or as soon as practicable after the date of termination of your service for a reason described in Section 4(b)-(d) below you will receive, in settlement of the Award, unrestricted shares of Company common stock equal to the number of Restricted Stock that vests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)You will receive full (non-prorated) Restricted Stock if your service with the Company terminates due to your death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)You will receive prorated Restricted Stock if

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)your service with the Company terminates due to Retirement at the end of the calendar year during which you reach mandatory Retirement age, as defined in the *International Paper Company Corporate Governance Guidelines*, prorated for the number of months of service for the performance year in which Retirement occurs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) you resign or fail to stand for re-election with the consent of the Board, or any failure to be re-elected after being duly nominated. In the event of a resignation with consent during the first year in which an Award is received, the number of Shares with respect to which the restrictions shall be removed will be a prorated portion of Shares originally awarded determined by dividing the number of months of your service during the first year of the award by 12.

------

**<u>Exhibit 10.2.ii</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Termination of your Continuous Service as a director for any reason other than those specified above, including any involuntary termination effected by Board action, shall result in forfeiture of the Restricted Stock.

**5.&nbsp;&nbsp;&nbsp;&nbsp;Changes in Stock.** In the event of any changes in capital structure of the Company as described in <u>Article 14</u> of the Plan, the Restricted Stock shall be equitably and proportionately adjusted by the Committee in accordance with <u>Article 14</u> of the Plan.

**6.&nbsp;&nbsp;&nbsp;&nbsp;Change in Control.** In the event of a Change in Control, the Restricted Stock will be treated in accordance with <u>Section 6(f)</u> of the Non-Employee Directors Subplan.

**7. Other Terms and Conditions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)You acknowledge that you have read, understood and agree with the Non-Employee Directors Subplan, the Plan, this award agreement and any jurisdiction-specific notices that may be applicable to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Board may, at any time and from time to time, amend, modify or terminate the Non-Employee Directors Subplan in accordance with <u>Section 9</u> thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)You (or your estate or beneficiary) will promptly provide all information related to this Award that is requested by the Company for its tax returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)You (and your surviving spouse, beneficiary, executor, administrator, heirs, successors or assigns) hereby agree to accept as binding, conclusive and final all decisions that are made by the Administrator with respect to interpretations of the terms and condition of the Non-Employee Directors Subplan, the Plan or this Award and with respect to any questions or disputes arising under the Non-Employee Directors Subplan or this Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Participation in the Plan and receipt of this Award will not give you any right to a subsequent award, or any right to continued service on the Board for any period, nor will the granting of an Award give the Company any right to your continued services for any period. You understand that this Award is in addition to, and part of your compensation for service as a non-employee director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)You agree that if execution of one or more restrictive covenant agreements is required, this Award will be contingent upon your execution of such agreement(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)This Award is intended to be exempt from Section 409A of the Code, and will be interpreted in accordance with such intent. This Non-Employee Directors Subplan is a non-funded, non-qualified deferred compensation plan that is intended to comply with Section 409A of the Code. The Non-Employee Directors Subplan is not subject to full protection under ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Eligibility to participate in the Non-Employee Directors Subplan, and any subsequent offers and participation, are not intended to constitute a public offer in any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Non-Employee Directors Subplan is offered by the Company and administered by the Administrator. All Non-Employee Directors Subplan documents are maintained by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)All Non-Employee Directors Subplan documents may be communicated and stored electronically using means that are secure, private and accessible to the relevant parties. You consent to the sole use of electronic communications (including, without limitation, offer and acceptance) in connection with the Non-Employee Directors Subplan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)You acknowledge that your personal data will be processed in accordance with the data privacy policy, notice and/or agreement that is applicable to you in connection with your service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)You accept that the Non-Employee Directors Subplan and Plan documents, including all related communications, may be in the English language only and it is possible that no translated or interpreted versions will be provided. The English versions of such documents will always prevail in the event of any inconsistency with translated or interpreted documents. You agree that you are

------

**<u>Exhibit 10.2.ii</u>**

responsible for ensuring that you fully understand the Non-Employee Directors Subplan and Plan documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)You are strongly encouraged to consult your personal tax adviser(s) regarding the tax treatment of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)The Award and related benefits under the Non-Employee Directors Subplan and Plan are in no way secured, guaranteed or warranted by the Company or any Affiliate and participation in the Non-Employee Directors Subplan involves certain risks. You should exercise caution in relation to Non-Employee Directors Subplan offers and/or participation. You should obtain independent professional advice if you are in doubt about any of the contents of the Non-Employee Directors Subplan documents and before taking actions in relation to the Non-Employee Directors Subplan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)You acknowledge that there is a risk that Shares may fall or rise in value. Market forces may impact the price of Shares and, in the worst case, the Fair Market Value of the Shares subject to your Restricted Stock may become zero. You agree that neither the Company nor any Affiliate is liable for any loss due to movements in Share value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)If Shares are traded in a currency that is not the currency of your jurisdiction, the value of the Shares to you may also be affected by movements in the exchange rate. There may also be an exchange rate risk in relation to any Non-Employee Directors Subplan-related currency that is not the currency of your jurisdiction. You agree that neither the Company nor any Affiliate is liable for any loss due to movements in the exchange rate or any charges imposed in relation to the conversion or transfer of currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)You acknowledge that rules on dealing notification, insider trading and market abuse (including the terms of the Company's Insider Trading Policy) may from time to time apply to the Award and related benefits and may prohibit or delay actions or decisions in relation to such payments or benefits. You agree that you are solely responsible for compliance with such rules and that neither the Company nor any Affiliate is liable for any loss due to such rules or for any breaches of such rules by you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)Under local exchange controls, currency controls or foreign asset reporting requirements, you may be subject to certain notification, approval and/or repatriation obligations with respect to Shares and any funds you may transfer or receive in connection with the Non-Employee Directors Subplan. Among other things, such aforementioned obligations may affect your ability to hold Shares, bring Shares into your jurisdiction, reinvest dividends and receive any applicable dividends or dividend equivalents, Share sale proceeds and other payments in a local or foreign account. You may further be subject to local securities law and/or exchange control restrictions and other obligations in the event of a resale of Shares. You agree that you are solely responsible for ensuring compliance with any such obligations that may apply to you in connection with the Non-Employee Directors Subplan, and the Company recommends that you obtain independent professional advice in this regard. In the event that you fail to comply with any such obligations, you agree that neither the Company nor any Affiliate is liable in any way for resulting fines or other penalties.

## Exhibit 10.3

**Exhibit 10.3.ii**

**International Paper Company**

**Notice of Award under the Recognition Award Plan<br>Recognition Award - Restricted Stock Units (RA-RSUs)** 

**<u>Stock Settled</u>** 

<br> &nbsp;&nbsp;&nbsp;&nbsp;**###PARTICIPANT_NAME###**

**###HOME_ADDRESS###**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

THIS CERTIFIES THAT, effective **###DATE###**, the Management Development and Compensation Committee (the "Committee") of the Board of Directors (the "Board") of International Paper Company (the "Company") has authorized the grant (the "Award") of time-based restricted stock units (the "Restricted Stock Units" or "RSUs") to **###PARTICIPANT_NAME###** (the "Participant") under the terms and conditions of the International Paper Company 2024 Long-Term Incentive Compensation Plan (the "Plan"). The Award is subject to the terms and conditions (the "Terms and Conditions") herein.

**<u>Date of Award</u>: &nbsp;&nbsp;&nbsp;&nbsp;###DATE###&nbsp;&nbsp;&nbsp;&nbsp;**

**<u>Number of Units:</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;###TOTAL_AWARDS###**

**<u>Full Restriction Period:</u>&nbsp;&nbsp;&nbsp;&nbsp;###DATE### through ###DATE###**

**<u>Vesting Date</u>:&nbsp;&nbsp;&nbsp;&nbsp;###DATE###&nbsp;&nbsp;&nbsp;&nbsp;**

**&nbsp;&nbsp;&nbsp;&nbsp;**

The Committee has approved the target number of RSUs for this Award, which <br>is **###TOTAL_AWARDS###**. The RSUs will remain restricted until fully vested on the vesting date denoted above and will be settled in shares of Company common stock.

Terms not otherwise defined in this certificate have the meaning assigned to them in the Plan. In the event of any inconsistency between the Terms and Conditions and the provisions of the Plan, the Plan will govern. By accepting this Award, the Participant acknowledges receipt of a copy of the Company's LTIP prospectus relating to this Award, represents that he or she is familiar with the terms and conditions of the Plan and agrees to accept this Award subject to all the terms and conditions of the Plan and of the Award.

IN WITNESS WHEREOF, the Company has caused this Award to be executed by its duly authorized officer as of the **###DATE###**.

International Paper Company

Andrew K. Silvernail

Chairman of the Board and Chief Executive Officer

------

**Exhibit 10.3.ii**

**TERMS AND CONDITIONS OF RECOGNITION AWARD - RESTRICTED STOCK UNITS AWARD (STOCK SETTLED)**

This Restricted Stock Units Award agreement is made between you, the Participant, and International Paper Company, a New York corporation (the "Company"), by direction of the Senior Vice President – Human Resources and Corporate Affairs. This award (the "Award") is subject to the provisions of the Company's 2024 Long-Term Incentive Compensation Plan (the "Plan"). Terms not otherwise defined herein have the meaning assigned to them in the Plan. This Award agreement serves as your acceptance of the Award and the terms and conditions described in this Award agreement. You should review all the provisions in Part A below and also the provisions in Part B below that are specific to any jurisdiction that may be applicable to you. Part B prevails in the event of any inconsistency with any other documents or communications relating to your participation in the Plan.

**Part A: General Provisions** 

**1. Compliance with Laws and Regulations.** It is intended that this Award, and any securities issued pursuant to this Award, will comply with all provisions of federal and applicable state securities laws.

**2. Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All restricted stock units issued under this Award will be contingently awarded with respect to the specific vesting period (the "Vesting Period") as described in the Award Certificate set forth herein. The restricted stock units will vest on the date specified in the Award Certificate (the "Vesting Date"). The restricted stock units may not be sold, transferred, pledged or assigned at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Except as provided in paragraph 4 below, payout of an Award is contingent solely upon the passage of time and your continued service with the Company through the Vesting Date, and not on Company or individual performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)All dividend equivalent units accrued during the Vesting Period will be reinvested in additional restricted stock units (which will be allocated to the same Vesting Period and will be subject to the same terms and conditions as the original Award).

**3.&nbsp;&nbsp;&nbsp;&nbsp;Payment of Withholding Taxes.** Generally, to pay withholding taxes due on an Award upon payout, the Company will reduce the number of restricted stock units paid to you by an amount sufficient to pay the minimum statutorily required withholding taxes.

**4.&nbsp;&nbsp;&nbsp;&nbsp;Method of Determining Actual Award and Removal of Restrictions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)As soon as reasonably practicable after the Vesting Date (but in no event later than 30 days thereafter), the number of restricted stock units that have vested under this Award will be determined and you will receive, in settlement of the Award, a number of unrestricted shares of Company common stock equal to the number of restricted stock units that vest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)You will receive accelerated vesting of all outstanding restricted stock units underlying this Award upon a termination of employment for the following events: (i) death or (ii) Disability. In these events, all unvested restricted stock units will accelerate and you (or, if applicable, your beneficiary or estate) will receive a number of unrestricted shares of Company common stock equal to the number of restricted stock units that would have vested upon the Vesting Date. Such restricted stock units will be settled, and the Company common stock delivered to you as soon as reasonably practicable following the date of your termination of employment due to death or Disability (but in no event later than 30 days thereafter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)You will receive prorated vesting of all outstanding restricted stock units underlying this Award in the following events: (i) termination of your employment if you are eligible for a termination allowance (and, in the United States, you sign the Company's termination agreement and release in connection with the payment of a termination allowance); (ii) termination of your employment as a result of the Company's divestiture of your business; or (iii) voluntary resignation after retirement eligibility (as

------

**Exhibit 10.3.ii**

defined in the Plan). In these events, you (or, if applicable, your beneficiary or estate) will receive restricted stock units prorated based on the number of months you were employed. Such restricted stock units are payable at the same time and in the same form as otherwise payable under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Your Award will be forfeited and cancelled if you cease to be an active employee of the Company prior to the Vesting Date for any reason other than death, Disability, or termination due to a divestiture made by the Company or upon an elimination of position by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)In the event of a Change of Control of the Company, the Award will be treated as described in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)In the event the Company's financial statements are required to be restated as a result of errors, omissions or fraud, the Company may recover all or a portion of the Award with respect to any fiscal year of the Company during the Vesting Period the financial results of which are negatively affected by such restatement. Additional mandatory clawback provisions apply to current and former executive officers, as defined in the Company's Clawback Policy.

**5.&nbsp;&nbsp;&nbsp;&nbsp;Changes in Stock.** In the event of any stock dividend, split, reclassification or other analogous change in capitalization, or any distribution (other than regular cash dividends) to holders of the Company's common stock, the Committee will make such adjustments, if any, as it deems to be equitable in the number of restricted stock units awarded to you, in accordance with administrative guidelines.

**6.&nbsp;&nbsp;&nbsp;&nbsp;Other Terms and Conditions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)You acknowledge that you have read, understood and agree with the Plan, this award agreement and any jurisdiction-specific notices in Part B below that may be applicable to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without shareowner approval, subject to certain limitations described in the Plan. Further, the granting of an Award is discretionary by the Company. The Company may change the eligibility or other provisions of the Plan with Committee approval at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)You (or, if applicable, your estate or beneficiary) will promptly provide all information related to this Award that is requested by the Company for its tax returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)You (and your surviving spouse, beneficiary, executor, administrator, heirs, successors or assigns) hereby agree to accept as binding, conclusive and final all decisions that are made by the Committee with respect to interpretations of the terms and conditions of the Plan or this Award and with respect to any questions or disputes arising under the Plan or this Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Participation in the Plan and receipt of this Award will not give you any right to a subsequent award, or any right to continued employment by the Company for any period, nor will the granting of an Award give the Company any right to your continued services for any period. You understand that this Award is in addition to, and not a part of, your annual salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)You agree that if execution of one of more restrictive covenant agreements is required, this Award will be contingent upon your execution of such agreement(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)This Award is intended to be exempt from Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A"), and will be interpreted in accordance with such intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Eligibility to participate in the Plan, and any subsequent offers and participation, are not intended to constitute a public offer in any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Plan is offered and administered by the Company and not by your employing entity (if different). All Plan documents, and any links by which you may access these documents, originate from and are maintained by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)All Plan documents may be communicated and stored electronically using means that are secure, private and accessible to the relevant parties. You consent to the sole use of electronic communications (including, without limitation, offer and acceptance) in connection with the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)You acknowledge that your personal data will be processed in accordance with the data privacy policy, notice and/or agreement that is applicable to you in connection with your employment or service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)You accept that the Plan documents, including all related communications, may be in the English language only and it is possible that no translated or interpreted versions will be provided. The English versions of such documents will always prevail in the event of any inconsistency with translated or

------

**Exhibit 10.3.ii**

interpreted documents. You agree that you are responsible for ensuring that you fully understand the Plan documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)If you are a mobile employee, meaning that you are based in different jurisdictions during the course of your employment and/or your participation in the Plan or you are, or may be, subject to tax in more than one jurisdiction, you are strongly encouraged to inform the Company and to consult your personal tax adviser(s) regarding the tax treatment of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)The Award and related benefits under the Plan are in no way secured, guaranteed or warranted by the Company or any Affiliate and participation in the Plan involves certain risks. You should exercise caution in relation to Plan offers and/or participation. You should obtain independent professional advice if you are in doubt about any of the contents of the Plan documents and before taking actions in relation to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)You acknowledge that there is a risk that Shares may fall or rise in value. Market forces may impact the price of Shares and, in the worst case, the market value of the Shares subject to your RSUs may become zero. You agree that neither the Company nor any Affiliate is liable for any loss due to movements in Share value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)If Shares are traded in a currency that is not the currency of your jurisdiction, the value of the Shares to you may also be affected by movements in the exchange rate. There may also be an exchange rate risk in relation to any Plan-related currency that is not the currency of your jurisdiction. You agree that neither the Company nor any Affiliate is liable for any loss due to movements in the exchange rate or any charges imposed in relation to the conversion or transfer of currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)You acknowledge that rules on dealing notification, insider trading and market abuse (including the terms of the Company's Insider Trading Policy) may from time to time apply to the Award and related benefits and may prohibit or delay actions or decisions in relation to such payments or benefits. You agree that you are solely responsible for compliance with such rules and that neither the Company nor any Affiliate is liable for any loss due to such rules or for any breaches of such rules by you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)Under local exchange controls, currency controls or foreign asset reporting requirements, you may be subject to certain notification, approval and/or repatriation obligations with respect to Shares and any funds you may transfer or receive in connection with the Plan. Among other things, such aforementioned obligations may affect your ability to hold Shares, bring Shares into your jurisdiction, reinvest dividends and receive any applicable dividends or dividend equivalents, Share sale proceeds and other payments in a local or foreign account. You may further be subject to local securities law and/or exchange control restrictions and other obligations in the event of a resale of Shares. You agree that you are solely responsible for ensuring compliance with any such obligations that may apply to you in connection with the Plan, and the Company recommends that you obtain independent professional advice in this regard. In the event that you fail to comply with any such obligations, you agree that neither the Company nor any Affiliate is liable in any way for resulting fines or other penalties.

------

**Exhibit 10.3.ii**

**Part B: Provisions Applicable to Particular Jurisdictions**

You will be subject to the provisions set out below where the laws of the relevant jurisdiction apply to you.

**CERTAIN EUROPEAN UNION JURISDICTIONS <br>(BELGIUM, CZECHIA, DENMARK, FRANCE, GERMANY, HUNGARY, ITALY, LUXEMBOURG, NETHERLANDS, SPAIN, SWEDEN)**

***Securities laws***

This offer is being made to selected employees as part of an employee incentive program in order to provide an additional incentive and to encourage employee share ownership and to increase your interest in the success of the Company. The company offering these rights is the International Paper Company. The shares which are the subject of these rights are new or existing Shares and information on the total maximum number of Shares which can be offered under the Plan can be found in Article 5.1 of the Plan, entitled *Number of Shares.* More information in relation to the Company, including the Share price, can be found at the following web address: <u>https://www.internationalpaper.com/investors</u>.

Details of this offer can be found in the Plan and this award agreement.

The obligation to publish a prospectus does not apply because of Article 1(4)(i) of the EU Prospectus Regulation.

**AUSTRIA**

***Securities laws***

This offer is being made on **###OFFER DATE###** to selected employees as part of an employee incentive program in order to provide an additional incentive and to encourage employee share ownership and to increase your interest in the success of the Company. The company offering these rights is International Paper Company. The shares which are the subject of these rights are new or existing Shares, and information on the total maximum number of Shares which can be offered under the Plan can be found in Article 5.1 of the Plan, entitled *Number of Shares*, of which the number offered to you is stated on the first page of this award agreement. The grant of the Award to you is made for no cost. More information in relation to the Company, including the Share price, the latest published financial statements as well as any publications made in compliance with disclosure requirements applicable to the Company within the previous 12 months can be found at the following web address: <u>https://www.internationalpaper.com/investors</u>.

Details of the offer, including information on the nature of the security, the associated rights, risks and applicable restrictions in connection with the issuance of the securities can be found in the Plan and this award agreement. The documents have been drafted pursuant to Article 1(4)(i) of the EU Prospectus Regulation as well as article 4 of the Mindestinhalts-, Veröffentlichungs- und Sprachenverordnung 2019 issued by the Austrian Financial Markets Authority.

The obligation to publish a prospectus does not apply because of Article 1(4)(i) of the EU Prospectus Regulation.

------

**Exhibit 10.3.ii**

**CANADA**

***Securities laws***

By accepting this Award, you represent and warrant to the Company that your participation in the Plan is voluntary and that you have not been induced to participate by expectation of engagement, appointment, employment, continued engagement, continued appointment or continued employment, as applicable.

***Resale restrictions***

In addition to any restrictions on resale and transfer noted in the Plan documents, Shares acquired pursuant to the Plan will be subject to certain restrictions on resale imposed by Canadian provincial securities laws (in general, participants in the offering who are resident in Canada may not resell their shares to Canadian purchasers). Accordingly, prospective participants are encouraged to seek legal advice prior to any resale of such shares.

***Settlement of the Award***

Notwithstanding any term in the Plan documents, this Award, granted to you as a Canadian-resident participant, shall only be settled in newly issued Shares or treasury Shares, and not in cash or any other property.

**CHILE**

***Securities laws***

Neither International Paper Company, the Plan nor the Shares have been registered in the Securities Registry (*Registro de Valores*) or in the Foreign Securities Registry (*Registro de Valores Extranjeros)* of the Chilean Commission for the Financial Market (CMF) (*Comisión para el Mercado Financiero de Chile*) and they are not subject to the control of the CMF. The Plan is ruled by General Regulation 336. As the Shares are not registered, the issuer has no obligation under Chilean law to deliver public information regarding the Shares in Chile. The Shares cannot be publicly offered in Chile unless they are registered with the CMF. The commencement date of the offer is **###OFFER DATE###**.

Ni International Paper Company, ni el Plan ni las Acciones han sido registradas en el Registro de Valores o en el Registro de Valores Extranjeros que lleva la Comisión para el Mercado Financiero de Chile (CMF) y ninguno de ellos está sujeto a la fiscalización de la CMF. Esta oferta de Acciones se acoge a la Norma de Carácter General 336. Por tratarse de valores no inscritos, el emisor de las Acciones no tiene obligación bajo la ley chilena de entregar en Chile información pública acerca de las Acciones. Las Acciones no pueden ser ofrecidas públicamente en Chile en tanto éstas no se inscriban en el Registro de Valores correspondiente. Se informa que la fecha de inicio de la presente oferta es el **###OFFER DATE###**.

**CROATIA**

No jurisdiction-specific provisions apply.

**HONG KONG**

***Securities laws***

------

**Exhibit 10.3.ii**

The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.

This offer of the Plan (the "Offer") is strictly private and only available to eligible employees of International Paper Asia Limited. The Offer has also not been approved by the Securities and Futures Commission in Hong Kong and it should not be made in whole or in part to the public or any third-party.

The Award may not be transferred or assigned, except as expressly permitted by the Company in writing.

**MEXICO**

***Securities laws***

The Shares underlying your Award have not been registered with the National Register of Securities maintained by the Mexican Banking and Securities Commission and may not be offered or sold publicly in Mexico. The Plan documents may not be publicly distributed in Mexico. These materials are addressed to you only because of your existing labor relationship with the International Paper Company group and may not be reproduced or copied in any form. The offer contained in these materials is addressed solely to the present employees of the International Paper Company group in Mexico and any rights under the Plan may not be assigned or transferred. The Shares underlying your Award will be offered pursuant to a private placement exception under the Mexican Securities Law.

**POLAND**

***Securities laws***

The obligation to publish a prospectus does not apply because of Article 1(4)(b) of the EU Prospectus Regulation.

**PORTUGAL**

***Securities laws***

The obligation to publish a prospectus does not apply because of Article 1(4)(b) of the EU Prospectus Regulation.

**SWITZERLAND**

No jurisdiction-specific provisions apply.

**UNITED KINGDOM**

***Securities laws***

This offer is being made to selected employees as part of an employee incentive program in order to provide an additional incentive and to encourage employee share ownership and to increase your interest in the success of the Company. The company offering these rights is the International Paper Company. The Shares which are the subject of these rights are new or existing Shares. More information in relation to the

------

**Exhibit 10.3.ii**

Company, including the Share price, can be found at the following web address: <u>https://www.internationalpaper.com/investors</u>.

Details of the offer can be found in the Plan and this award agreement.

The obligation to publish a prospectus does not apply because of Section 86(1)(aa) of the Financial Services and Markets Act 2000 (as amended, supplemented or substituted by any UK legislation enacted in connection with the UK's exit from the European Union). Information on the total maximum number of Shares which can be offered under the Plan can be found in Article 5.1 of the Plan, entitled *Number of Shares*.

Nothing in the terms of the Award or any communication issued to you in connection with the Award is intended to constitute investment advice in relation to the Award. If you are in any doubt as to whether to proceed in participating in this Plan or in connection with your own financial or tax position, you are recommended to seek advice from a duly authorized independent adviser.

***Retirement***

Notwithstanding any term in the Plan documents, if you are a UK-resident participant, your retirement eligibility for the purposes of this award agreement will be determined by agreement with your employer in accordance with any retirement policy that is applicable to you.

## Exhibit 10.3

**Exhibit 10.3.iii**

**International Paper Company**

**Notice of Award under the**

**Recognition Award Plan<br>Recognition Award - Restricted Stock Units (RA-RSUs)** 

**<u>Cash Settled</u>** 

<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**###PARTICIPANT_NAME###**

**###HOME_ADDRESS###**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

THIS CERTIFIES THAT, effective **###DATE###**, the Management Development and Compensation Committee (the "Committee") of the Board of Directors (the "Board") of International Paper Company (the "Company") has authorized the grant (the "Award") of time-based restricted stock units (the "Restricted Stock Units" or "RSUs") to **###PARTICIPANT_NAME###** (the "Participant") under the terms and conditions of the International Paper Company 2024 Long-Term Incentive Compensation Plan (the "Plan"). The Award is subject to the terms and conditions (the "Terms and Conditions") herein.

**<u>Date of Award</u>: &nbsp;&nbsp;&nbsp;&nbsp;###DATE###&nbsp;&nbsp;&nbsp;&nbsp;**

**<u>Number of Units:</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;###TOTAL_AWARDS###**

**<u>Full Restriction Period:</u>&nbsp;&nbsp;&nbsp;&nbsp;###DATE### through ###DATE###**

**<u>Vesting Date</u>:&nbsp;&nbsp;&nbsp;&nbsp;###DATE###&nbsp;&nbsp;&nbsp;&nbsp;**

**&nbsp;&nbsp;&nbsp;&nbsp;**

The Committee has approved the target number of RSUs for this Award, which <br>is **###TOTAL_AWARDS###**. The RSUs will remain restricted until fully vested on the vesting date denoted above and will be settled in cash based on the share price of Company common stock upon vesting.

Terms not otherwise defined in this certificate have the meaning assigned to them in the Plan. In the event of any inconsistency between the Terms and Conditions and the provisions of the Plan, the Plan will govern. By accepting this Award, the Participant acknowledges receipt of a copy of the Company's LTIP prospectus relating to this Award, represents that he or she is familiar with the terms and conditions of the Plan and agrees to accept this Award subject to all the terms and conditions of the Plan and of the Award.

IN WITNESS WHEREOF, the Company has caused this Award to be executed by its duly authorized officer as of the **###DATE###**.

International Paper Company

Andrew K. Silvernail

Chairman of the Board and Chief Executive Officer

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**Exhibit 10.3.iii**

**TERMS AND CONDITIONS OF RECOGNITION AWARD - RESTRICTED STOCK UNITS AWARD (CASH SETTLED)**

This Restricted Stock Units Award agreement is made between you, the Participant, and International Paper Company, a New York corporation (the "Company"), by direction of the Senior Vice President – Human Resources and Corporate Affairs. This award (the "Award") is subject to the provisions of the Company's 2024 Long-Term Incentive Compensation Plan (the "Plan"). Terms not otherwise defined herein have the meaning assigned to them in the Plan. This Award agreement serves as your acceptance of the Award and the terms and conditions described in this Award agreement. You should review all the provisions in Part A below and also the provisions in Part B below that are specific to any jurisdiction that may be applicable to you. Part B prevails in the event of any inconsistency with any other documents or communications relating to your participation in the Plan.

**Part A: General Provisions** 

**1. Compliance with Laws and Regulations.** It is intended that this Award, and any securities issued pursuant to this Award, will comply with all provisions of federal and applicable state securities laws.

**2. Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All restricted stock units issued under this Award will be contingently awarded with respect to the specific vesting period (the "Vesting Period") as described in the Award Certificate set forth herein. The restricted stock units will vest on the date specified in the Award Certificate (the "Vesting Date"). The restricted stock units may not be sold, transferred, pledged or assigned at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Except as provided in paragraph 4 below, payout of an Award is contingent solely upon the passage of time and your continued service with the Company through the Vesting Date, and not on Company or individual performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)All dividend equivalent units accrued during the Vesting Period will be reinvested in additional restricted stock units (which will be allocated to the same Vesting Period and will be subject to the same terms and conditions as the original Award).

**3.&nbsp;&nbsp;&nbsp;&nbsp;Payment of Withholding Taxes.** Generally, to pay withholding taxes due on an Award upon payout, the Company will reduce the number of restricted stock units paid to you by an amount sufficient to pay the minimum statutorily required withholding taxes.

**4.&nbsp;&nbsp;&nbsp;&nbsp;Method of Determining Actual Award and Removal of Restrictions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)As soon as reasonably practicable after the Vesting Date (but in no event later than 30 days thereafter), the number of restricted stock units that have vested under this Award will be determined and you will receive, in settlement of the Award, a number of unrestricted shares of Company common stock equal to the number of restricted stock units that vest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)You will receive accelerated vesting of all outstanding restricted stock units underlying this Award upon a termination of employment for the following events: (i) death or (ii) Disability. In these events, all unvested restricted stock units will accelerate and you (or, if applicable, your beneficiary or estate) will receive a number of unrestricted shares of Company common stock equal to the number of restricted stock units that would have vested upon the Vesting Date. Such restricted stock units will be settled, and the Company common stock delivered to you as soon as reasonably practicable following the date of your termination of employment due to death or Disability (but in no event later than 30 days thereafter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)You will receive a prorated, accelerated vesting of all outstanding restricted stock units underlying this Award upon termination of employment in connection with a divestiture made by the Company or upon an elimination of position by the Company. Your Award will be prorated based upon your months of service prior to your termination and will vest immediately and will be settled in shares of our common

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**Exhibit 10.3.iii**

stock or an equivalent value in cash, as applicable, as soon as reasonably practicable following the date of your termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Your Award will be forfeited and cancelled if you cease to be an active employee of the Company prior to the Vesting Date for any reason other than death, Disability, or termination due to a divestiture made by the Company or upon an elimination of position by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)In the event of a Change in Control of the Company, the Award will be treated as described in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)In the event the Company's financial statements are required to be restated as a result of errors, omissions or fraud, the Company may recover all or a portion of the Award with respect to any fiscal year of the Company during the Vesting Period the financial results of which are negatively affected by such restatement. Additional mandatory clawback provisions apply to current and former executive officers, as defined in the Company's Clawback Policy.

**5.&nbsp;&nbsp;&nbsp;&nbsp;Changes in Stock.** In the event of any stock dividend, split, reclassification or other analogous change in capitalization, or any distribution (other than regular cash dividends) to holders of the Company's common stock, the Committee will make such adjustments, if any, as it deems to be equitable in the number of restricted stock units awarded to you, in accordance with administrative guidelines.

**6.&nbsp;&nbsp;&nbsp;&nbsp;Other Terms and Conditions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)You acknowledge that you have read, understood and agree with the Plan, this award agreement and any jurisdiction-specific notices in Part B below that may be applicable to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without shareowner approval, subject to certain limitations described in the Plan. Further, the granting of an Award is discretionary by the Company. The Company may change the eligibility or other provisions of the Plan with Committee approval at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)You (or, if applicable, your estate or beneficiary) will promptly provide all information related to this Award that is requested by the Company for its tax returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)You (and your surviving spouse, beneficiary, executor, administrator, heirs, successors or assigns) hereby agree to accept as binding, conclusive and final all decisions that are made by the Committee with respect to interpretations of the terms and conditions of the Plan or this Award and with respect to any questions or disputes arising under the Plan or this Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Participation in the Plan and receipt of this Award will not give you any right to a subsequent award, or any right to continued employment by the Company for any period, nor will the granting of an Award give the Company any right to your continued services for any period. You understand that this Award is in addition to, and not a part of, your annual salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)You agree that if execution of one of more restrictive covenant agreements is required, this Award will be contingent upon your execution of such agreement(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)This Award is intended to be exempt from Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A"), and will be interpreted in accordance with such intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Eligibility to participate in the Plan, and any subsequent offers and participation, are not intended to constitute a public offer in any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Plan is offered and administered by the Company and not by your employing entity (if different). All Plan documents, and any links by which you may access these documents, originate from and are maintained by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)All Plan documents may be communicated and stored electronically using means that are secure, private and accessible to the relevant parties. You consent to the sole use of electronic communications (including, without limitation, offer and acceptance) in connection with the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)You acknowledge that your personal data will be processed in accordance with the data privacy policy, notice and/or agreement that is applicable to you in connection with your employment or service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)You accept that the Plan documents, including all related communications, may be in the English language only and it is possible that no translated or interpreted versions will be provided. The English versions of such documents will always prevail in the event of any inconsistency with translated or

------

**Exhibit 10.3.iii**

interpreted documents. You agree that you are responsible for ensuring that you fully understand the Plan documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)If you are a mobile employee, meaning that you are based in different jurisdictions during the course of your employment and/or your participation in the Plan or you are, or may be, subject to tax in more than one jurisdiction, you are strongly encouraged to inform the Company and to consult your personal tax adviser(s) regarding the tax treatment of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)The Award and related benefits under the Plan are in no way secured, guaranteed or warranted by the Company or any Affiliate and participation in the Plan involves certain risks. You should exercise caution in relation to Plan offers and/or participation. You should obtain independent professional advice if you are in doubt about any of the contents of the Plan documents and before taking actions in relation to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)You acknowledge that there is a risk that Shares may fall or rise in value. Market forces may impact the price of Shares and, in the worst case, the market value of the Shares subject to your RSUs may become zero. You agree that neither the Company nor any Affiliate is liable for any loss due to movements in Share value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)If Shares are traded in a currency that is not the currency of your jurisdiction, the value of the Shares to you may also be affected by movements in the exchange rate. There may also be an exchange rate risk in relation to any Plan-related currency that is not the currency of your jurisdiction. You agree that neither the Company nor any Affiliate is liable for any loss due to movements in the exchange rate or any charges imposed in relation to the conversion or transfer of currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)You acknowledge that rules on dealing notification, insider trading and market abuse (including the terms of the Company's Insider Trading Policy) may from time to time apply to the Award and related benefits and may prohibit or delay actions or decisions in relation to such payments or benefits. You agree that you are solely responsible for compliance with such rules and that neither the Company nor any Affiliate is liable for any loss due to such rules or for any breaches of such rules by you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)Under local exchange controls, currency controls or foreign asset reporting requirements, you may be subject to certain notification, approval and/or repatriation obligations with respect to Shares and any funds you may transfer or receive in connection with the Plan. Among other things, such aforementioned obligations may affect your ability to hold Shares, bring Shares into your jurisdiction, reinvest dividends and receive any applicable dividends or dividend equivalents, Share sale proceeds and other payments in a local or foreign account. You may further be subject to local securities law and/or exchange control restrictions and other obligations in the event of a resale of Shares. You agree that you are solely responsible for ensuring compliance with any such obligations that may apply to you in connection with the Plan, and the Company recommends that you obtain independent professional advice in this regard. In the event that you fail to comply with any such obligations, you agree that neither the Company nor any Affiliate is liable in any way for resulting fines or other penalties.

------

**Exhibit 10.3.iii**

**Part B: Provisions Applicable to Particular Jurisdictions**

You will be subject to the provisions set out below where the laws of the relevant jurisdiction apply to you.

**CHINA**

No jurisdiction-specific provisions apply.

**MOROCCO**

No jurisdiction-specific provisions apply.

## Exhibit 10.14

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

February 11, 2026

TIMOTHY S. NICHOLLS

&nbsp;&nbsp;&nbsp;&nbsp;Re: Change in Control Agreement

Dear Mr. Nicholls:

&nbsp;&nbsp;&nbsp;&nbsp;International Paper Company (the "<u>Company</u>") considers the establishment and maintenance of sound and vital management essential to protecting and enhancing the best interests of the Company and its shareowners. The Company recognizes that the possibility of a Change in Control may exist and such possibility, and the uncertainty and questions which it may raise among senior management, may result in the departure or distraction of senior management to the detriment of the Company and its shareowners. Accordingly, the Company's Board of Directors (the "<u>Board</u>") has determined that it is in the best interests of the shareowners and the Company to foster the continuous employment of senior management and reinforce and encourage the continued attention and dedication of members of the Company's senior management, including yourself, to their assigned duties without distraction in the face of a Change in Control of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;As an incentive for you to stay and fulfill your duties during the period prior to or after a Change in Control, as defined in Section 2, this letter (this "<u>Agreement</u>") sets forth the benefits which the Company agrees will be provided to you in the event your employment with the Company is terminated following a Change in Control under the circumstances described below.

&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable consideration, you and the Company, intending to be legally bound agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>TERM</u> 

This Agreement shall commence on the date hereof and, unless there is a Change in Control, shall continue until the earliest of (a) your termination of employment as a "full-time employee" of the Company, (b) if you are then subject to a mandatory retirement policy at the date a Change in Control occurs, the date you turn 65, or (c) if a Change in Control has not occurred, termination by the Company following six (6) months prior written notice of termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;If a Change in Control occurs at any time prior to the termination of this Agreement pursuant to the preceding paragraph, then this Agreement shall terminate on the second anniversary of such Change in Control.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>DEFINITIONS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a."<u>Beneficial Owner</u>" means the beneficial owner of a security as determined by Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b."<u>Cause</u>" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the willful and continued failure by you substantially to perform your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness or any such actual or anticipated failure resulting from termination by you for Good Reason) after a written demand for substantial performance is delivered to you by the Board, which demand specifically identifies the manner in which the Board believes that you have not substantially performed your duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.your conviction of or plea o*f nolo contendere* with respect to a felony; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.your willful engaging in conduct, which is demonstrably and materially injurious to the Company, whether monetarily or otherwise.

No act or failure to act will be considered "willful" unless it is done, or omitted to be done, by you in bad faith or without reasonable belief that your action or omission was in the best interests of the Company and its affiliates. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or if the Company is not the ultimate parent entity of the Company and is not publicly traded, the board of directors (or, for a non-corporate entity, equivalent governing body) of the ultimate parent of the Company (the "<u>Applicable Board</u>") or based upon your good faith reliance on the advice of counsel for the Company and its affiliates will be conclusively presumed to be done, or omitted to be done, by you in good faith and in the best interests of the Company and its affiliates. The cessation of your employment will not be deemed to be for Cause unless and until (x) you are given written notice by the Applicable Board specifically identifying the action(s) or event(s) alleged to constitute "Cause" and (if curable) you have not cured such conduct within 30 days after your receipt of such written notice, and (y) there shall have been delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Applicable Board (excluding you) at a meeting of the Applicable Board called and held for such purpose (after reasonable notice is provided to you and you are given an opportunity, together with your counsel, to be heard before the Applicable Board), finding that, in the good faith opinion of the Applicable Board, you are guilty of conduct described in any of clauses (i) through (iii) above, and specifying the particulars thereof in detail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c."<u>Change in Control</u>" means the occurrence of any one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any "person" or "group" (as those terms are used in Section 13(d)(3) of the Exchange Act becomes the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of the Company's voting stock representing 30% or more of the

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

voting power of the Company's outstanding voting stock *provided, however,* that an employee of the Company or any of its subsidiaries for whom shares are held under an employee stock ownership, employee retirement, employee savings or similar plan and whose shares are voted in accordance with the instructions of such employee shall not be a member of a "group"(as that term is used in Section 13(d)(3) of the Exchange Act) solely because such employee's shares are held by a trustee under said plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.during any period of two (2) consecutive years, individuals who at the beginning of such period constitute members of the Board (the "<u>Incumbent Directors</u>") cease for any reason to constitute at least a majority thereof, provided that, for purposes of this clause (ii) each new director elected, or nominated for election by the Company's shareowners, during such period by a vote of at least two-thirds (2/3) of the Incumbent Directors then in office shall be treated as an Incumbent Director; <u>provided</u>, <u>however</u>, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person or entity other than the Board shall not be considered an Incumbent Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.the Company consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the Company's outstanding voting stock or voting stock of such other person is converted into or exchanged for cash, securities or other property, other than any such transaction where the Company's voting stock outstanding immediately prior to such transaction constitutes, or is converted into or exchanged for, voting stock representing more than 50% of the voting power of the voting stock of the surviving person immediately after giving effect to such transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Company and its subsidiaries taken as a whole to any "person" or "group" (as those terms are used in Section 13(d)(3) of the Exchange Act) other than to the Company or one of its subsidiaries; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. the shareowners of the Company approve a complete liquidation or dissolution of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d."<u>Disability</u>" means that, as a result of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, you are receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e."<u>Good Reason</u>" means, without your express written consent, any of the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the assignment to you of any duties with the Company (or with a successor or affiliated company) inconsistent with your role as Executive Vice President and President Europe, Middle East and Africa of the Company, or a substantial adverse alteration in the nature or status of your responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.a reduction in your annual base salary as in effect from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.the failure by the Company to continue in effect any material compensation plan in which you participate in effect immediately prior to a Change in Control, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan in connection with the Change in Control, or the failure by the Company to continue your participation therein on substantially the same basis, both in terms of the amount of benefits provided and the level of your participation relative to other participants, as existed immediately prior to the Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. the failure of the Company to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement, as required under Section 10(a) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.any purported termination of your employment which is not effected pursuant to a Notice of Termination satisfying the requirements of Section 2(f) (and, if applicable, the requirements of Section 2(b); for purposes of this Agreement, no such purported termination shall be an effective termination by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.the Company's requiring you to be based at a new place of work more than 50 miles from your then-current place of work, except for required travel on the Company's business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii.any other material breach of the Company's obligations to you under this Agreement or any other agreement between you and the Company.

<br> &nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, you shall not be deemed to have Good Reason to terminate your employment unless (a) you notify the Board in writing of your intent to terminate your employment for Good Reason within 90 days following your first having knowledge of the occurrence of an event described in the immediately preceding sentence, which notice shall specifically identify the action(s) or event(s) alleged to give rise to your right to terminate your employment for Good Reason, (b) you provide the Company 30 days following delivery of such written notice to cure the event giving rise to your right to terminate your employment for Good

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

Reason and (c) the Company fails to cure such circumstance within such notice period.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f."<u>Notice of Termination</u>" shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated, and shall specify a date for termination of employment (the "<u>Date of Termination</u>") which, in the case of a termination for Good Reason, shall not be less than 30 days or more than 60 days after the date of delivery of the Notice of Termination. Any termination of your employment by the Company or by you shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g."<u>Retirement</u>" means voluntary termination other than for Good Reason after becoming eligible for "normal retirement" after attaining the age of 65 prior to a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h."<u>Specified Employee</u>" has the meaning given such term in Internal Revenue Code of 1986, as amended, (the "<u>Code</u>") Section 409A and the final regulations thereunder (the "<u>Final 409A Regulations</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>EQUITY AWARD TREATMENT UPON CHANGE IN CONTROL</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Awards Assumed or Substituted by Surviving Entity.</u> With respect to awards assumed by the Surviving Entity or otherwise equitably converted or substituted in connection with a Change in Control in a manner approved by the Committee or the Board: if within two years after the effective date of the Change in Control, if your employment is terminated without Cause or you resign for Good Reason, then

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.all time-based vesting restrictions on your outstanding awards shall lapse as of the employment termination date, and subject to Section 9 will be paid within 60 days of termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.for performance awards that were outstanding immediately prior to effective time of the Change in Control, the number of units issued as a replacement award is determined as of the date of the Change in Control based on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.target Company performance where the Change in Control occurs less &nbsp;&nbsp;&nbsp;&nbsp;than one year after the beginning of the performance period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.actual Company performance measured through the date of the Change in Control (or, if applicable, the date on which the Company's last complete fiscal quarter immediately preceding the date of the Change in Control ended) where the Change in Control occurs one year or more after the beginning of the performance period,

and in either case will be paid within 60 days of termination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Awards Not Assumed or Substituted by Surviving Entity.</u> Upon the occurrence of a Change in Control, and except with respect to any awards assumed by the Surviving Entity or otherwise equitably converted or substituted in connection with the Change in Control in a manner approved by the Committee or the Board:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.all time-based vesting restrictions on outstanding awards shall lapse as of the date of the Change in Control and will be paid within 60 days after the Change in Control; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.with respect to outstanding performance awards, performance goals shall be deemed to have been satisfied as described below and all other vesting restrictions shall lapse as of the date of the Change in Control; the level of performance achievement under outstanding performance awards shall be calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.where less than year has elapsed between the beginning of the performance period and the Change in Control, performance awards shall be paid based on target Company performance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.where one year or more has elapsed between the beginning of the applicable performance period and the Change in Control, performance awards shall be paid out based on actual Company performance measured through the date of the Change in Control (or, if applicable, the date of the Company's last complete fiscal quarter immediately preceding the date the Change in Control ended),

and in either case will be paid within 60 days of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>TERMINATION OF EMPLOYMENT FOLLOWING CHANGE IN CONTROL</u>

&nbsp;&nbsp;&nbsp;&nbsp;If a Change in Control occurs, you shall be entitled to the benefits provided in Section 5 upon the subsequent termination of your employment during the Term of this Agreement, unless such termination is (x) because of your death, Disability or Retirement, (y) by the Company for Cause or (z) by you, other than for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, you shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire independent membership of the Applicable Board finding that in the good faith opinion of the Applicable Board, the Company has grounds for a "Cause" termination and specifying the particulars thereof in detail. You shall be provided an opportunity, together with your counsel, to be heard before the Applicable Board prior to termination after such notice. If three-quarters of the Applicable Board do not confirm, through a duly-adopted resolution following such opportunity, that the Company has grounds for a "Cause" termination, you may treat your employment as not having terminated or as having been terminated pursuant to termination without cause.

Any termination of your employment by the Company or by you shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 11.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>COMPENSATION UPON TERMINATION</u>

&nbsp;&nbsp;&nbsp;&nbsp;If a Change in Control occurs and your employment is subsequently terminated during the Term of this Agreement under the circumstances described in Section 4 that entitle you to benefits under this Agreement, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The Company will continue to provide medical and dental insurance coverage to you and your dependents at Company expense which is comparable in benefits, deductibles, co-payments and other terms, to the coverage which you had (i) immediately prior to the Change in Control or (ii) as of the Date of Termination, whichever is better in your sole discretion, and this coverage will continue until the earlier of (A) the third anniversary of the Date of Termination and (B) such time as you become eligible to join a comparable plan sponsored by another employer, including self-employment (the "<u>Welfare Benefits Continuation Period</u>"). Such coverage shall be credited against the time period that you and your dependents are entitled to receive continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("<u>COBRA</u>"). During the Welfare Benefits Continuation Period, (i) the benefits provided in any one calendar year shall not affect the amount of benefits to be provided in any other calendar year, and (ii) the reimbursement of an eligible expense must be made no later than December 31<sup>st</sup> of the year following when the expense was incurred. Your rights pursuant to Section 5(a) shall not be subject to liquidation or exchange for another benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Subject to your signing and non-revocation of the release required by Section 15 hereof, the Company shall pay to you the following amounts in one lump-sum payment in cash on the 30<sup>th</sup> day after the Date of Termination, unless a later payment date is required by Section 9(c) or Section 5(b)(iii):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.your full base salary through the Date of Termination, at the rate in effect at the time Notice of Termination is given, plus an amount in cash equal to the value of any vacation earned but not taken (based upon such rate of base salary);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.to the extent not already paid, your full prior-year short-term annual incentive compensation (in the amount determined prior to the Date of Termination, or if such amount has not been determined as of the Date of Termination, an amount not less than the higher of (x) your actual short-term annual incentive compensation amount for the year before such prior-year or (y) your target short-term annual incentive compensation amount for such prior-year);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.if the Date of Termination occurs during the same plan year in which the Change in Control occurs, your short-term annual incentive compensation target amount on the Date of Termination, as if the performance goals applicable to such amount have been fully satisfied (i.e., achieved at 100% of target, or, if determinable, achieved at the actual level); provided that such compensation will be prorated to reflect the number of days that have elapsed as of the Date of Termination since the beginning of such year; <u>or</u> if the Date of Termination occurs after the end of the plan year in which the Change in

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

Control occurs, then your short-term annual incentive compensation that is based on the Company's actual performance achievement of the financial metrics under the short-term annual incentive compensation plan applicable to all participants in such plan, provided that such compensation will be prorated to reflect the number of days that have elapsed as of the Date of Termination since the beginning of such year; plus a termination lump sum payment equal to the product of 3 times the sum of (i) your annualized base salary as of the Date of Termination and (ii) your target short-term annual incentive compensation amount in effect as of your Date of Termination;

the highest of (A) your benefits pursuant to the Unfunded Supplemental Retirement Plan for Senior Managers (the "SERP") under the terms of the SERP, as if there had been a Change in Control; (B) your benefits pursuant to the SERP as if there had not been a Change in Control and as if you were credited with 3 years of additional age and 3 years of additional service; or (C) your benefits pursuant to the Retirement Plan of International Paper Company in effect immediately prior to the Change in Control, as if you were credited with 3 years of additional age and 3 years of additional service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.All forfeiture provisions, transfer restrictions and any other restrictions applicable to any such awards assumed or substituted by the surviving entity shall immediately lapse in their entirety and all such awards shall be fully and immediately payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>MITIGATION</u>

&nbsp;&nbsp;&nbsp;&nbsp;You shall not be required to mitigate the amount of any payment provided for in Section 5 (by seeking other employment or otherwise), nor shall the amount of any payment provided for in Section 5 be reduced by any compensation earned by you as a result of employment by another employer after the Date of Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>MANDATORY REDUCTION OF PAYMENTS IN CERTAIN EVENTS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by the Company to you or for your benefit (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a "<u>Payment</u>") would be subject to the excise tax (the "<u>Excise Tax</u>") imposed by Section 4999 of the Code, then, prior to the making of any Payment to you, a calculation shall be made comparing (i) the net benefit to you of the Payment after your liability for the Excise Tax, to (ii) the net benefit to you if the Payment had been limited to the extent necessary to avoid being subject to the Excise Tax. If the amount calculated under (i) above is less than the amount calculated under (ii) above, then the Payment shall be limited to the extent necessary to avoid being subject to the Excise Tax (the "<u>Reduced Amount</u>"). The reduction of the Payments due hereunder, if applicable, shall be made in such a manner as to maximize the economic value of all Payments made to you, determined by the

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

Accounting Firm (as defined below) as of the date of the Change in Control using the discount rate required by Section 280G(d)(4) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The determination of whether an Excise Tax would be imposed, the amount of such Excise Tax, and the calculation of the amounts referred to in Section 7(a)(i) and (ii) above shall be made by an independent, nationally recognized accounting firm or other nationally recognized entity that regularly performs such calculations for large publicly traded companies (the "<u>Accounting Firm</u>") which shall provide detailed supporting calculations. Any determination by the Accounting Firm shall be binding upon you and the Company. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that (i) Payments to which you were entitled, but did not receive pursuant to Section 7(a), could have been made without the imposition of the Excise Tax (the amounts of such erroneously forgone Payments, collectively the "<u>Underpayment</u>") or (ii) Payments that you did receive resulted in total Payments in excess of the Reduced Amount (the amounts of such erroneously paid Payments, collectively the "<u>Overpayment</u>"). In such event, the Accounting Firm shall determine the amount of any Underpayment or Overpayment that has occurred. Any such Underpayment shall be promptly paid by the Company to you or for your benefit, but no later than December 31<sup>st</sup> of the year in which the Underpayment is determined. The amount of any Overpayment shall be promptly repaid by you to the Company, with interest at the applicable federal rate from the date of the erroneous Payment to the date the Overpayment is repaid, within 30 days following the date you are notified by the Accounting Firm of the amount of the Overpayment; provided that, if your employment has not then terminated, the Company may alternatively make appropriate adjustments to your on-going compensation, to the extent permitted in a manner consistent with Section 409A, to address such Overpayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.If the provisions of Sections 280G and 4999 of the Code or any successor provisions are repealed without succession, this Section 7 shall be of no further force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>RELATIONSHIP TO AMOUNTS OTHERWISE PAYABLE</u> 

&nbsp;&nbsp;&nbsp;&nbsp;The compensation set forth in Section 5 shall be in lieu of any severance or termination payments which might otherwise be payable under any other severance programs or policy or practice of the Company, other than those set out as part of any of the Company's Long-Term Incentive Compensation Plan, performance share plans, and retirement or supplemental retirement plans.

&nbsp;&nbsp;&nbsp;&nbsp;In addition to the payments under this Agreement, you shall continue to be eligible to receive all your vested accrued benefits under employee retirement and welfare benefit plans sponsored by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>COMPLIANCE WITH SECTION 409A OF INTERNAL REVENUE CODE</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>General</u>. This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

is either exempt from or compliant with the requirements of Section 409A of the Code and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief under Section 409A of the Code). Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted or guaranteed. Neither the Company nor its directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by you as a result of the application of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.<u>Definitional Restrictions</u>. Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would constitute non-exempt "deferred compensation" for purposes of Section 409A of the Code would otherwise be payable or distributable hereunder at a different time, or in a different form of payment than would otherwise have applied to such amount of deferred compensation absent this Agreement, such amount or benefit will not be payable or distributable to you, and/or such different form of payment will not be effected, by reason of this Agreement unless (i) such different time or form of payment is permitted under Section 409A of the Code and applicable regulations , or (ii) the payment or distribution of such amount or benefit would be exempt from the application of Section 409A of the Code by reason of the short-term deferral exemption or otherwise. This provision does not prohibit the *vesting* of any amount upon a Change in Control, Disability or separation from service, however defined. If this provision prevents the payment or distribution of any amount or benefit, such payment or distribution shall be made on the date, if any, on which an event occurs that constitutes a Section 409A-compliant "separation from service" or any later date required by Section 9(c) below. If this provision prevents the application of a different form of payment of any amount or benefit, such payment shall be made in the same form as would have applied absent such designated event or circumstance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.<u>Six-Month Delay in Certain Circumstances</u>. Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would constitute non-exempt "deferred compensation" for purposes of Section 409A of the Code would otherwise be payable or distributable under this Agreement by reason of your separation from service during a period in which you are a Specified Employee, then, subject to any permissible acceleration of payment by the Company under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.the amount of such non-exempt deferred compensation that would otherwise be payable during the six-month period immediately following your separation from service will be accumulated through and paid or provided on the first day of the seventh month following your separation from service (or, if you die during such period, within 30 days after your death) (in either case, the "<u>Required Delay Period</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

&nbsp;&nbsp;&nbsp;&nbsp;As permitted in the Final 409A Regulations, the Company's Specified Employees and its application of the six-month delay rule of Section 409A(a)(2)(B)(i) of the Code shall be determined in accordance with rules adopted by the Company, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of the Company, including this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.<u>Treatment of Installment Payments</u>. Each payment of termination benefits under Section 5 of this Agreement, including, without limitation, each installment payment and each payment or reimbursement of premiums for continued insurance coverage under Section 5(a) and (b), shall be considered a separate payment, as described in Treas. Reg. Section 1.409A-2(b)(2), for purposes of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>SUCCESSORS; BINDING AGREEMENT</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Successor Companies</u>. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to you, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure by the Company to obtain such agreement prior to the effective date of any such succession shall be a breach of this Agreement and shall entitle you to terminate your employment and to receive compensation from the Company in the same amount and on the same terms as you would be entitled hereunder if you terminated your employment for Good Reason, except that the date on which any such succession becomes effective shall be deemed the Date of Termination. As used in this Agreement, "<u>Company</u>" shall mean the Company as defined and any successor to its business and/or assets which executes and delivers the agreement provided for in this Section 10 or which otherwise becomes bound by all terms and provisions of this Agreement by operation of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.<u>Heirs; Representatives</u>. This Agreement shall inure to the benefit of and be enforceable by your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while any amounts would still be payable to you hereunder if you had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee, or, if there be no such designee, to your estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>NOTICE</u>

&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth on the first page of this Agreement; provided that all notices to the Company shall be directed to the attention of the Vice President, Total Rewards with a copy to the Corporate Secretary, or to such address as either party may have furnished to

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>MISCELLANEOUS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Amendments, Entire Agreement, Etc</u>. During the period commencing on the date that a Change in Control occurs and continuing while this Agreement is in effect, except as expressly provided in Section 9(b), this Agreement constitutes the entire agreement on this subject matter between the parties and supersedes any prior oral or written agreements or understandings with regard to the payment to you of severance, separation or termination pay or the treatment of any equity award outstanding at the time of a Change in Control. This Agreement shall not be amended or modified except by written agreement signed by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.<u>Waiver</u>. No significant provisions of this Agreement may be waived or discharged, unless such waiver or discharge is in writing signed by the party who is making the waiver or discharge. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of any similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. If this Agreement provides benefits upon termination of your employment which duplicate benefits contained in any employment arrangement with you, such arrangement shall automatically be amended in accordance with this Agreement so that your benefits under this Agreement shall be sole and exclusive to the extent to which they are duplicative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.<u>Withholding</u>. Amounts paid to you hereunder shall be subject to all applicable federal, state and local withholding taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.<u>Governing Law</u>. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>VALIDITY</u>

&nbsp;&nbsp;&nbsp;&nbsp;The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other provisions of this Agreement, which shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.<u>ARBITRATION</u>

&nbsp;&nbsp;&nbsp;&nbsp;Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Memphis, Tennessee, in accordance with the rules of the American Arbitration Association then in effect. Notwithstanding the pendency of any such dispute or controversy, the Company will continue to pay your base salary in effect when the notice giving rise to the dispute was given, and will continue you as a participant in all compensation, benefit and insurance plans in which you were participating when the notice giving rise to the dispute was given, until the dispute is finally resolved.

&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Exhibit 10.14</u>**

&nbsp;&nbsp;&nbsp;&nbsp;Judgment may be entered on the arbitrator's award in any court having jurisdiction; provided, however, that you shall be entitled to seek specific performance of your right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.<u>RELEASE</u>

&nbsp;&nbsp;&nbsp;&nbsp;You will be required to execute and deliver a valid and irrevocable release of employment-related claims in the form provided by the Company to receive any of your compensation or benefits pursuant to the terms of this Agreement. Such release must be executed, and all revocation periods shall have expired within 60 days after the Date of Termination; failing which such payments or benefits shall be forfeited. If any such payment or benefit is comprised of nonqualified deferred compensation, then, subject to Section 9(b) and 9(c) above, such payment or benefit shall be made (or in the case of installment payments, installments that would have otherwise been payable during such 60-day period shall be accumulated and paid) on the 60<sup>th</sup> day after the Date of Termination provided such release shall have been executed and such revocation periods shall have expired. If such payment or benefit is exempt from Section 409A of the Code, the Company may elect to make or commence payment at any time during such 60-day period, unless such period transcends two calendar years, in which case, such payment shall in all cases be made in the later calendar year .

&nbsp;&nbsp;&nbsp;&nbsp;If this Agreement correctly sets forth our understanding on the matters hereof, please indicate your acceptance by signing below and returning a copy to the Company at your earliest opportunity.

Sincerely,

INTERNATIONAL PAPER COMPANY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: <u>/s/ Joseph R. Saab&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Joseph R. Saab

Senior Vice President, General Counsel &

Corporate Secretary

Agreed:

&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Timothy S. Nicholls&nbsp;&nbsp;&nbsp;&nbsp;</u> 

Timothy S. Nicholls

February 20, 2026

______________________________

Date

## Ex-21

**Exhibit 21**

**International Paper Company (NY)**

**Subsidiaries and Joint Ventures (Majority Owned)**

**as of December 31, 2025** 

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| | |
|:---|:---|
| **Name** | **Jurisdiction** |
| 3-102-948154 SOCIEDAD DE RESPONSABILIDAD LIMITADA | Costa Rica |
| Abbey Corrugated Limited | England & Wales |
| Ashton Corrugated | England & Wales |
| Ashton Corrugated (Southern) Limited | England & Wales |
| Avonbank Paper Disposal Limited | England & Wales |
| Bertako SL | Spain |
| Biber Paper Converting Limited | England & Wales |
| Bilokalnik-IPA d.d. | Croatia |
| Bretschneider Verpackungen GmbH | Germany |
| Calara Holding Limited | England & Wales |
| Carolina Graphic Services LLC | Delaware |
| Carton y Papel Reciclado, S.A. | Spain |
| Cartonajes International, S.L. | Spain |
| Cartonajes Union, S.L. | Spain |
| CedarPak, LLC | Delaware |
| CEMT Holdings Group, LLC | Delaware |
| Certified Forest Management LLC | Delaware |
| CircleTree Insurance Company | Tennessee |
| CMCP - INTERNATIONAL PAPER S.A.S. | Morocco |
| CMCP - International Paper Tanger SARL AU | Morocco |
| Commercial Realty & Properties LLC | Delaware |
| Conew Limited | England & Wales |
| Corrugated Container Corporation | Virginia |
| Corrugated Container Corporation of Shenandoah Valley | Virginia |
| Corrugated Container Corporation of Tennessee | Tennessee |
| Corrugated Products Limited | England & Wales |
| Corrugated Supply, L.L.C | New Jersey |
| Corrugated Supply, L.P. | New Jersey |
| David S. Smith (Netherlands) B.V. | Netherlands |
| David S. Smith Nominees Limited | England & Wales |
| Delta Packaging Services GmbH | Germany |
| DS Smith (Luxembourg) S.a r.l. | Luxembourg |
| DS Smith (UK) Limited | England & Wales |
| DS Smith AD Skopje | North Macedonia |
| DS Smith Ambalaj A.Ş. | Turkey |
| DS Smith America (UK) LLP | England & Wales |
| DS Smith Andorra, S.A. | Spain |
| DS Smith Austria Holdings GmbH | Austria |
| DS Smith B.V. | Netherlands |
| DS Smith Baars B.V. | Netherlands |
| DS Smith Basalt Limited | England & Wales |
| DS Smith Belisce Croatia d.o.o. | Croatia |
| DS Smith Bulgaria S.A. | Bulgaria |
| DS Smith Business Services Limited | England & Wales |
| DS Smith Business Services, S.L. | Spain |
| DS Smith Corrugated Packaging Limited | England & Wales |
| DS Smith Creative Solutions Inc. | New Jersey |
| DS Smith Cretan Hellas S.A. | Greece |
| DS Smith De Hoop B.V. | Netherlands |
| DS Smith De Hoop Holding B.V. | Netherlands |

---

------

**Exhibit 21**

**International Paper Company (NY)**

**Subsidiaries and Joint Ventures (Majority Owned)**

**as of December 31, 2025**

---

| | |
|:---|:---|
| **Name** | **Jurisdiction** |
| DS Smith Display Holding Limited | England & Wales |
| DS Smith Displays P&I, S.A. | Portugal |
| DS Smith Dormant Five Limited | England & Wales |
| DS Smith Energia Viana, S.A. | Portugal |
| DS Smith Euro Finance Limited | England & Wales |
| DS Smith Europe Limited | England & Wales |
| DS Smith Finco Limited | England & Wales |
| DS Smith France | France |
| DS Smith Granite Limited | England & Wales |
| DS Smith Haddox Limited | England & Wales |
| DS Smith Hellas Netherlands B.V. | Netherlands |
| DS Smith Hellas S.A. | Greece |
| DS Smith Hetre Blanc | France |
| DS Smith Holding Italia S.p.A. | Italy |
| DS Smith Holdings Limited | England & Wales |
| DS Smith Holdings LLC | Delaware |
| DS Smith Inos Papir Servis d.o.o. | Serbia |
| DS Smith International Limited | England & Wales |
| DS Smith Ireland Treasury Designated Activity Company | Ireland |
| DS Smith Italy B.V. | Netherlands |
| DS Smith Italy Limited | England & Wales |
| DS Smith Limited | England & Wales |
| DS Smith Logistics Limited | England & Wales |
| DS Smith Management Resources LLC | Delaware |
| DS Smith North America Recycling, LLC | Delaware |
| DS Smith North America Shared Services, LLC | Delaware |
| DS Smith Packaging Ales | France |
| DS Smith Packaging Almelo B.V. | Netherlands |
| DS Smith Packaging Anjou | France |
| DS Smith Packaging Arenshausen Mivepa GmbH | Germany |
| DS Smith Packaging Arnstadt GmbH | Germany |
| DS Smith Packaging Atlantique | France |
| DS Smith Packaging Austria Beteiligungsverwaltungs GmbH | Austria |
| DS Smith Packaging Austria GmbH | Austria |
| DS Smith Packaging Baltic Holding Oy | Finland |
| DS Smith Packaging Barneveld B.V. | Netherlands |
| DS Smith Packaging Belgium | Belgium |
| DS Smith Packaging Belita B.V. | Netherlands |
| DS Smith Packaging Beteiligungen GmbH | Germany |
| DS Smith Packaging BH d.o.o. Sarajevo | Bosnia and Herzegovina |
| DS Smith Packaging Bretagne | France |
| DS Smith Packaging Cartogal S.A. | Spain |
| DS Smith Packaging CERA | France |
| DS Smith Packaging Consumer | France |
| DS Smith Packaging Contoire-Hamel | France |
| DS Smith Packaging Czech Republic s.r.o. | Czech Republic |
| DS Smith Packaging d.o.o. Krusevac | Serbia |
| DS Smith Packaging Denmark A/S | Denmark |
| DS Smith Packaging Deutschland Stiftung | Germany |

---

------

**Exhibit 21**

**International Paper Company (NY)**

**Subsidiaries and Joint Ventures (Majority Owned)**

**as of December 31, 2025**

---

| | |
|:---|:---|
| **Name** | **Jurisdiction** |
| DS Smith Packaging Deutschland Stiftung & Co KG | Germany |
| DS Smith Packaging Dicesa S.A. | Spain |
| DS Smith Packaging Display and Services | France |
| DS Smith Packaging DPF | France |
| DS Smith Packaging Durtal | France |
| DS Smith Packaging Estonia AS | Estonia |
| DS Smith Packaging Fegersheim | France |
| DS Smith Packaging Finland Oy | Finland |
| DS Smith Packaging France | France |
| DS Smith Packaging Galicia S.A. | Spain |
| DS Smith Packaging Ghimbav S.R.L. | Romania |
| DS Smith Packaging Hauts-de-France | France |
| DS Smith Packaging Holding B.V. | Netherlands |
| DS Smith Packaging Holding S.L. | Spain |
| DS Smith Packaging Hungary Kft | Hungary |
| DS Smith Packaging International B.V. | Netherlands |
| DS Smith Packaging Italia S.p.A. | Italy |
| DS Smith Packaging Kaypac | France |
| DS Smith Packaging Larousse | France |
| DS Smith Packaging Limited | England & Wales |
| DS Smith Packaging Lucena, S.L. | Spain |
| DS Smith Packaging Madrid, SL | Spain |
| DS Smith Packaging Marketing | Belgium |
| DS Smith Packaging Mehun-CIM | France |
| DS Smith Packaging Netherlands B.V. | Netherlands |
| DS Smith Packaging Nord-Est | France |
| DS Smith Packaging Offset d.o.o. Valjevo | Serbia |
| DS Smith Packaging Pakkausjaloste Oy | Finland |
| DS Smith Packaging Penedes S.A.U. | Spain |
| DS Smith Packaging Portugal, S.A. | Portugal |
| DS Smith Packaging Romania S.R.L. | Romania |
| DS Smith Packaging Savoie | France |
| DS Smith Packaging Seine Normandie | France |
| DS Smith Packaging South East GmbH | Austria |
| DS Smith Packaging sp. z o.o. | Poland |
| DS Smith Packaging Sud-Est. | France |
| DS Smith Packaging Sud-Ouest | France |
| DS Smith Packaging Sweden AB | Sweden |
| DS Smith Packaging Sweden AB NUF [Branch] | Norway |
| DS Smith Packaging Sweden Holding AB | Sweden |
| DS Smith Packaging Switzerland AG | Switzerland |
| DS Smith Packaging Systems | France |
| DS Smith Packaging Tilburg B.V. | Netherlands |
| DS Smith Packaging Velin | France |
| DS Smith Packaging Vervins | France |
| DS Smith Packaging-Holly Springs, LLC | Delaware |
| DS Smith Packaging-Stream, LLC | Delaware |
| DS Smith Paper Coullons | France |
| DS Smith Paper Deutschland GmbH | Germany |

---

------

**Exhibit 21**

**International Paper Company (NY)**

**Subsidiaries and Joint Ventures (Majority Owned)**

**as of December 31, 2025**

---

| | |
|:---|:---|
| **Name** | **Jurisdiction** |
| DS Smith Paper Italia S.r.l. | Italy |
| DS Smith Paper Kaysersberg | France |
| DS Smith Paper Limited | England & Wales |
| DS Smith Paper Limitd SP z o.o. Oddzial W Polsce [Branch] | Poland |
| DS Smith Paper Rouen | France |
| DS Smith Paper Viana, S.A. | Portugal |
| DS Smith Paper Zarnesti S.R.L. | Romania |
| DS Smith Pension Trustees Limited | England & Wales |
| DS Smith Perch Limited | England & Wales |
| DS Smith Perch Luxembourg S.à r.l. | Luxembourg |
| DS Smith Polska sp. z o.o. | Poland |
| DS Smith Portugal, SGPS, S.A. | Portugal |
| DS Smith Quartz Limited | England & Wales |
| DS Smith Re S.A. | Luxembourg |
| DS Smith Recycling Benelux B.V. | Netherlands |
| DS Smith Recycling Bosnia d.o.o. | Bosnia and Herzegovina |
| DS Smith Recycling Deutschland GmbH | Germany |
| DS Smith Recycling France | France |
| DS Smith Recycling Holding B.V. | Netherlands |
| DS Smith Recycling Ireland Limited | Ireland |
| DS Smith Recycling Italia Srl | Italy |
| DS Smith Recycling Portugal, S.A. | Portugal |
| DS Smith Recycling Spain S.A. | Spain |
| DS Smith Recycling UK Limited | England & Wales |
| DS Smith Roma Limited | England & Wales |
| DS Smith Salm B.V. | Netherlands |
| DS Smith Shanghai Trading Ltd | China |
| DS Smith Slovenija d.o.o. | Slovenia |
| DS Smith Spain, S.A. | Spain |
| DS Smith Stange B.V. & Co. KG | Germany |
| DS Smith Sudbrook Limited | England & Wales |
| DS Smith Supplementary Life Cover Scheme Limited | England & Wales |
| DS Smith Toppositie B.V. | Netherlands |
| DS Smith Transport Services GmbH | Germany |
| DS Smith Turpak Obaly, a.s. | Slovakia |
| DS Smith Ukraine Limited | England & Wales |
| DS Smith Unijapapir Croatia d.o.o. | Croatia |
| DSS Eastern Europe Limited | England & Wales |
| DSS Poznan Limited | England & Wales |
| DSSH No. 1 Limited | England & Wales |
| Eastpac Oy | Finland |
| English Oak LLC | Delaware |
| Evergreen Community Power LLC | Delaware |
| GCF (Asia) Limited | Hong Kong |
| GCF (Asia) Limited (Branch Office) | Korea (the Republic of) |
| GCF (Asia) Limited Singapore Branch | Singapore |
| GCF (Shanghai) Co., Ltd. | People's Republic of China |
| GCF (Shanghai) Co., Ltd. Guangzhou Branch | People's Republic of China |
| GCF Bonds LLC | Delaware |

---

------

**Exhibit 21**

**International Paper Company (NY)**

**Subsidiaries and Joint Ventures (Majority Owned)**

**as of December 31, 2025**

---

| | |
|:---|:---|
| **Name** | **Jurisdiction** |
| GCF Japan Limited | Japan |
| GCF US Holdings LLC | Delaware |
| Grovehurst Energy Limited | England & Wales |
| I.P. CONTAINER HOLDINGS (SPAIN) S.L. | Spain |
| Iberian Forest Fund - Fundo de Investimento Imobiliario Fechado | Portugal |
| International Paper (Asia) Limited | Hong Kong |
| International Paper (Europe) S.à r.l. | Luxembourg |
| International Paper (India) LLP | India |
| International Paper (New Zealand) Limited | New Zealand |
| International Paper Asia Limited (Branch Office) | Korea |
| International Paper Canada Pulp Holdings ULC | Alberta |
| International Paper Cartones Ltda. | Chile |
| International Paper Cellulose Fibers (Poland) sp. z o.o. | Poland |
| International Paper Cellulose Fibers Sales Sàrl | Switzerland |
| International Paper Chalon SAS | France |
| International Paper Company [Delaware] | Delaware |
| International Paper Company Employee Relief Fund | New York |
| International Paper Company Foundation | New York |
| INTERNATIONAL PAPER DUTCH SERVICES B.V. IN LIQUIDATIE | Netherlands |
| International Paper Espaly SAS | France |
| International Paper Export Sales, Inc. | Delaware |
| International Paper Financial Services, Inc. | Delaware |
| International Paper France SAS | France |
| International Paper Holdings (Luxembourg) S.à r.l. | Luxembourg |
| International Paper Investment (Shanghai) Co., Ltd. | People's Republic of China |
| International Paper Investment (Shanghai) Co., Ltd., Guangzhou Branch | People's Republic of China |
| International Paper Italia Srl | Italy |
| International Paper Japan Limited | Japan |
| International Paper Madrid Mill, S.L. | Spain |
| International Paper Manufacturing & Distribution Limited | Hong Kong |
| International Paper Mexico Company, S. de R.L. de C.V. | Mexico |
| International Paper Molded Fiber LLC | Nevada |
| International Paper Peru S.R.L. | Peru |
| International Paper Polska Sp. z o.o. | Poland |
| International Paper Professional Services Corporation | Delaware |
| International Paper Switzerland GmbH | Switzerland |
| International Paper UK Holdings Limited | England & Wales |
| Interstate Container Columbia LLC | Delaware |
| Interstate Container New Castle LLC | Delaware |
| Interstate Container Reading LLC | Delaware |
| Interstate Corrpack LLC | Delaware |
| Interstate Holding LLC | Delaware |
| Interstate Mechanical Packaging LLC | Delaware |
| Interstate Paper LLC | Delaware |
| Interstate Realty Hialeah LLC | Delaware |
| Interstate Resources LLC | Delaware |
| Interstate Southern Packaging LLC | Delaware |
| IP Acquisition I, LLC | Delaware |
| IP Belgian Services Company SRL | Belgium |

---

------

**Exhibit 21**

**International Paper Company (NY)**

**Subsidiaries and Joint Ventures (Majority Owned)**

**as of December 31, 2025**

---

| | |
|:---|:---|
| **Name** | **Jurisdiction** |
| IP Canada Holdings Limited | Canada |
| IP CBPR Properties 2 LLC | Delaware |
| IP CBPR Properties LLC | Delaware |
| IP Commercial Properties LLC | Delaware |
| IP Eagle LLC | Delaware |
| IP International Holdings, Inc. | Delaware |
| IP Limestone Company | Delaware |
| IP Mexico Holdings LLC | Delaware |
| IP Petroleum LLC | Delaware |
| IP Realty Holdings LLC | Delaware |
| IP Singapore Holding Pte. Ltd. | Singapore |
| IP-35, Inc. | Delaware |
| JDS Holding | England & Wales |
| Lacebark LLC | Delaware |
| Longleaf Insurance Company | Tennessee |
| Lost Creek, Inc. | Delaware |
| Mangrove Insurance Europe PCC Limited | Malta |
| Merpas Hungary Kft. | Hungary |
| Miljoint Limited | England & Wales |
| Multigraphics Holdings Limited | England & Wales |
| Multigraphics Limited | England & Wales |
| Multigraphics Services Limited | England & Wales |
| Newport Timber LLC | Delaware |
| Nova DS Smith Embalagem, S.A. | Portugal |
| Papir Servis DP d.o.o. Krusevac | Serbia |
| Peninsular Cogeneración, S.A. | Spain |
| Phoenix Technology Holdings USA, Inc. | Delaware |
| Priory Packaging Limited | England & Wales |
| PT Total Marketing Support Indonesia | Indonesia |
| RB Lumber Company LLC | Delaware |
| Red Bird Receivables, LLC | Delaware |
| Reed & Smith Limited | England & Wales |
| RFC Container, LLC | Delaware |
| Rowlandson France | France |
| SIA DS Smith Packaging Latvia | Latvia |
| SouthCorr, L.L.C. | North Carolina |
| SP Forests L.L.C. | Delaware |
| St. George Timberland Holdings, Inc. | Delaware |
| St. Regis International Limited | England & Wales |
| St. Regis Kemsley Limited | England & Wales |
| St. Regis Paper Company Limited | England & Wales |
| Stort Doonweg B.V. | Netherlands |
| Supplier Finance Company, LLC | Delaware |
| Sustainable Forests L.L.C. | Delaware |
| Tecnicarton France | France |
| Tecnicartón Portugal Unipessoal LDA | Portugal |
| Tecnicartón Tánger S.A.R.L. AU | Morocco |
| Tecnicartón, S.L. | Spain |
| Temple Associates LLC | Texas |

---

------

**Exhibit 21**

**International Paper Company (NY)**

**Subsidiaries and Joint Ventures (Majority Owned)**

**as of December 31, 2025**

---

| | |
|:---|:---|
| **Name** | **Jurisdiction** |
| The DS Smith Charitable Foundation | England & Wales |
| The Less Packaging Company Limited | England & Wales |
| TheBannerPeople.Com Limited | England & Wales |
| TIN Land Financing, LLC | Delaware |
| TIN Timber Financing, LLC | Delaware |
| TMS 360 SA (PTY) Ltd | South Africa |
| TMS America LLC | Illinois |
| TMS Canada 360 Inc. | Canada |
| TMS Egypt LLC | Egypt |
| TMS Global Guatemala, Sociedad Anonima | Guatemala |
| TMS Global UK Limited | England & Wales |
| TMS Pakistan (Private) Limited | Pakistan |
| TMS Shanghai Trading Ltd | China |
| Toscana Ondulati S.P.A. | Italy |
| Total Marketing Support (360) Malaysia Sdn. Bhd. | Malaysia |
| Total Marketing Support 360 Mexico S.A de C.V | Mexico |
| Total Marketing Support 360 Nigeria Limited | Nigeria |
| Total Marketing Support Argentina SA | Argentina |
| Total Marketing Support Brazil Ltda | Brazil |
| Total Marketing Support Chile SpA | Chile |
| Total Marketing Support Colombia S A S | Colombia |
| Total Marketing Support Ecuador TM-EC C.L. | Ecuador |
| Total Marketing Support Global Limited | England & Wales |
| Total Marketing Support Honduras, S.A. | Honduras |
| Total Marketing Support India Private Limited | India |
| Total Marketing Support Japan Ltd. | Japan |
| Total Marketing Support Kazakhstan LLP | Kazakhstan |
| Total Marketing Support Limited | England & Wales |
| Total Marketing Support Middle East FZCO | United Arab Emirates |
| Total Marketing Support Pacific Pty Ltd | Australia |
| Total Marketing Support Peru S.A.C. | Peru |
| Total Marketing Support Philippines, Inc. | Philippines |
| Total Marketing Support Turkey Baskı Yönetimi Hizmetleri A.Ş. | Turkey |
| Total Marketing Support Uruguay S.A. | Uruguay |
| Treforest Mill plc | England & Wales |
| U. C. Realty LLC | Delaware |
| UAB DS Smith Packaging Lithuania | Lithuania |
| United Corrstack LLC | Delaware |
| United Shopper Marketing Limited | England & Wales |
| W. Rowlandson & Company Limited | England & Wales |
| Waddington & Duval Limited | England & Wales |

---

## Ex-23.I

**Exhibit 23.i**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in Registration Statement Nos. 333-277160 on Form S-3 and Registration Statement Nos. 333-85818, 333-85820, 333-85822, 333-85824, 333-85828, 333-85830, 333-108046, 333-120293, 333-129011, 333-145459, 333-154522, 333-154523, 333-159336, 333-164230, 333-212998, 333-212999, 333-236539, and 333-279386 on Form S-8 of our reports dated February 27, 2026, relating to the financial statements of International Paper Company and the effectiveness of International Paper Company's internal control over financial reporting appearing in this Annual Report on Form 10-K for the year ended December 31, 2025.

/s/ Deloitte & Touche LLP

Memphis, Tennessee

February 27, 2026

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION** 

I, Andrew K. Silvernail, certify that:

1. I have reviewed this annual report on Form 10-K of International Paper Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| February 27, 2026 |
| /s/ Andrew K. Silvernail |
| Andrew K. Silvernail |
| Chairman of the Board and Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION** 

I, Lance T. Loeffler, certify that:

1. I have reviewed this annual report on Form 10-K of International Paper Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| February 27, 2026 |
| /s/ Lance T. Loeffler |
| Lance T. Loeffler |
| Senior Vice President and Chief Financial Officer |

---

## Ex-32

**Exhibit 32**

**CERTIFICATION PURSUANT TO** 

**18 U.S.C. SECTION 1350,** 

**AS ADOPTED PURSUANT TO** 

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

The certification set forth below is being submitted in connection with the Annual Report of International Paper Company (the "Company") on Form 10-K for the period ended December 31, 2025 for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Section 1350 of Chapter 63 of Title 18 of the United States Code. Andrew K. Silvernail, Chief Executive Officer of the Company, and Lance T. Loeffler, Chief Financial Officer of the Company, each certify that, to the best of his or her knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ Andrew K. Silvernail |
| Andrew K. Silvernail |
| Chairman of the Board and Chief Executive Officer |
| February 27, 2026 |
| /s/ Lance T. Loeffler |
| Lance T. Loeffler |
| Senior Vice President and Chief Financial Officer |
| February 27, 2026 |

---

<br>