Document:

Form of Hog Fuel Supply Agreement

 Exhibit 10.8 
 HOG FUEL SUPPLY AGREEMENT 
 THIS HOG FUEL SUPPLY AGREEMENT (this “Agreement”) is
entered into by and between Clearwater Paper Corporation, a Delaware corporation (“Buyer”) and Potlatch RetainCo, LLC, a Delaware limited liability company (“Seller”) as of ___________, 2008 (the “Effective
Date”). (Buyer and Seller are sometimes hereinafter in this Agreement referred to collectively as the “parties”, or individually as a “party”). 
 RECITALS 
 A. Seller produces in-woods hog fuel (“Hog Fuel”)
from biomass on lands owned by Seller and its affiliates in the State of Idaho and from stumpage contracts held by Seller in the State of Idaho. 
 B. Buyer operates a pulp and paper facility in Lewiston, Idaho (the “Buyer’s Mill”). 
 C. Buyer desires to
purchase Hog Fuel from Seller for use at Buyer’s Mill, and Seller desires to supply Hog Fuel to Buyer in accordance with terms and conditions set forth in this Agreement. 
 AGREEMENT 
 NOW THEREFORE, in consideration of the foregoing, the terms and
conditions set forth herein, and other good and valuable consideration, the adequacy of which is hereby acknowledged, Seller and Buyer hereby agree as follows: 
 ARTICLE I 
 SPECIFICATIONS; AS IS 
 1.1 Specifications. The Hog Fuel shall meet customary hog fuel standards (the “Specifications”). 
 1.2 Generally. Seller warrants that it will have at the time of delivery merchantable title to Hog Fuel sold hereunder free and clear of liens and encumbrances. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, ALL HOG
FUEL DELIVERED UNDER THIS AGREEMENT ARE WITHOUT ANY WARRANTIES OF ANY KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION, ANY EXPRESS OR IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY OR ANY STATUTORY WARRANTY. 
 ARTICLE II 
 QUANTITIES

 2.1 Generally. During the term of this Agreement, Seller shall sell to Buyer, and Buyer shall purchase from Seller, 45,000 bone dry tons
of Hog Fuel per Contract Year (the “Annual  

 
Quantity”). Each Contract Year is the one year period commencing on the Effective Date and on each anniversary thereof. 
 2.2 Source. The Hog Fuel shall be obtained from timberlands owned by Seller or its affiliates north of the Salmon River within the State of Idaho (the
“Base Lands”), other lands from time to time owned by Seller or its affiliates, and from stumpage contracts held by Seller from time to time for the harvest of timber from lands owned by unaffiliated third parties. 
 ARTICLE III 
 DELIVERY, LOADING AND
MEASUREMENT 
 3.1 Transportation and Measurement. Hog Fuel will be delivered FOB at Buyer’s Mill. The weight of each delivery will be
determined by weighing, at Buyer’s Mill, each loaded truckload and deducting the tare weight. Buyer shall maintain a state verified scale in good order and accuracy. Buyer shall be responsible for unloading Hog Fuel from the delivery trucks.
Buyer shall determine the percentage of moisture content of Hog Fuel in each load by customary laboratory procedures based upon representative samples. The percentage so determined shall be multiplied by the weight, in pounds, of the load and the
product shall be deducted from the total pounds in the load. The remainder shall be divided by 2,000 and the quotient shall constitute the number of bone dry tons or “BDTs” (2,000 pounds of moisture-free fiber) in the load. Copies
of the scale tickets and moisture test results shall be sent to Seller. Seller may make test measurements of load weight and moisture content from time to time, at Seller’s expense. If such measurements show that payments need adjustment, up or
down, the correction shall be applied to the load measured and the five (5) truckloads of hog fuel received by Buyer immediately prior to the load measured. Buyer shall make any compensation adjustments within five (5) days after such
adjustment is mutually agreed to 
 3.2 Inspection. Buyer shall inspect and sample each load of Hog Fuel after arrival at the Buyer’s Mill
and shall promptly notify Seller of any failure of the Hog Fuel to conform to the Specifications. If Buyer fails to give such notice with respect to any load within twenty-four (24) hours after arrival at the Buyer’s Mill, such load of Hog
Fuel will be deemed to conform to the Specifications and Buyer will be deemed to have accepted and shall be obligated to pay for such load. 
 Whenever Buyer determines as a result of its reasonable inspection that any load of Hog Fuel delivered fails to conform to the Specifications, Buyer shall immediately notify Seller. If Buyer reasonably rejects any such quantity as failing
to meet the specifications, Buyer may dispose of the rejected Hog Fuel, in any manner it deems appropriate without any payment therefor to Seller. Freight charges on any rejected Hog Fuel, and any costs incurred by Buyer in disposing of the rejected
load shall be Seller’s responsibility, and shall be promptly paid upon billing by Buyer. Title and risk of loss or damage of Hog Fuel shall pass to Buyer when the Hog Fuel is unloaded at Buyer’s Mill. 
 3.3 Records. Buyer shall keep accurate records of deliveries of Hog Fuel, including weight by truck and the results of moisture tests. Such records shall be
retained for at least two years after delivery of Hog Fuel, and shall be available for inspection by Seller at reasonable times after reasonable notice. 
  

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 ARTICLE IV 
 PRICE AND PAYMENT 
 4.1 Prices of Hog Fuel. Prices of Hog Fuel commencing on the Effective Date (the
“Initial Price Date”) shall be $____/BDT. 
 Effective on each anniversary of the Effective Date, the price for the Hog Fuel
shall be adjusted to reflect the fair market value of such Hog Fuel in Central Idaho (the “Hog Fuel Price Reset Date”), but in any event no greater than $75 per BDT, nor less than the Seller Minimum Price. The “Seller
Minimum Price” is (a) $3 (three dollars) per BDT plus (b) Seller’s actual out of pocket costs, per BDT, of producing and transporting the Hog Fuel, including without limitation amounts paid to contractors, Seller’s fully
loaded cost of employees (not to exceed $1 (one dollar) per BDT), and stumpage fees, if any, paid by Seller with respect to the Hog Fuel. The parties shall endeavor to agree on the price no later than ten (10) days prior to the Hog Fuel Price
Reset Date. Either party may request that the price for the Hog Fuel shall be determined by arbitration in accordance with Section 4.2. 
 If the parties do not agree on a price for Hog Fuel by the date the first payment for such Hog Fuel delivered after the Hog Fuel Price Reset Date is due, Buyer shall initially pay for such Hog Fuel at the last established price for such Hog
Fuel. After the price for Hog Fuel previously delivered is determined by arbitration or by agreement, (i) the price of such Hog Fuel shall be retroactively adjusted back to the relevant Hog Fuel Price Reset Date and (ii) within five
(5) days after such determination, an adjustment payment shall be made by Buyer to Seller, or Seller to Buyer, as the case may be, to adjust the price for such Hog Fuel to the price as determined by the arbitrator or the agreement of the
parties. 
 4.2 Arbitration. If the parties are unable to agree upon the price for Hog Fuel on any Hog Fuel Price Reset, the dispute shall be resolved
through “baseball arbitration” as follows: 
 4.2.1. Upon the written notice of either party after reasonable efforts to
resolve the dispute (the “Arbitration Notice”), the parties shall jointly name an arbitrator to resolve the dispute. The arbitrator shall be a seasoned wood by-products professional familiar with pricing of hog fuel in the Pacific
Northwest who has not performed any work as an employee or consultant for either party during the previous five (5) years. If the parties are unable to agree on a single arbitrator within ten (10) days after receipt of the Arbitration
Notice, then within five (5) days thereafter, each party shall select its own arbitrator with such qualification, and the two selected arbitrators shall jointly select the arbitrator with such qualification who will resolve the dispute. If any
party fails to timely select an arbitrator, then the arbitrator selected by the other party shall resolve the dispute. If the two arbitrators selected by the parties are unable or unwilling to select an arbitrator to resolve the dispute within ten
(10) days, then either party may petition the District Court in Lewiston, Idaho to select the arbitrator. 
 4.2.2. Once an
arbitrator has been selected, each of the parties shall provide the arbitrator with (i) such documents, evidence and other information as may be desirable to inform the arbitrator of the background and relevant facts of the dispute, and
(ii) a proposed final decision on the matters in dispute (the “Proposed Decision”). Upon evaluating all of the documents, evidence and other information provided by the parties, the arbitrator shall render a 

  

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decision on the dispute by accepting in whole one party’s Proposed Decision. If the dispute is a pricing dispute, the arbitrator shall accept the
Proposed Decision that most closely reflects the then market value of the Hog Fuel. Provided that the arbitrator has made a decision solely by selecting the Proposed Decision of one of the parties, the arbitrator’s determination shall be
conclusive and binding on the parties. 
 4.2.3. The fees of the arbitrator(s) shall be paid by the party whose Proposed Decision is
not selected by the arbitrator. The prevailing party in such arbitration shall be entitled to recover its reasonable attorney fees and costs in connection with the arbitration from the other party. 
 4.3 Payment. Payment for Hog Fuel delivered between the 1st and 15th day of the month shall be made by the 25th day of the month. Payment for Hog Fuel
delivered between the 16th and the end of the month shall be made by the 10th day of the following month. Payments not made when due shall accrue interest at the rate of 18% per annum (but in no event higher than the maximum rate permitted by
applicable law). Each payment shall be accompanied by a detailed statement setting forth the calculation of the payment. In the event any truck load of Hog Fuel are lost or destroyed after title has passed to Buyer but before Buyer has determined
the BDT content of such truck load, payment for same shall be made on the 15th day of the month following such loss or destruction based on Buyer’s reasonable estimate of the amount lost or destroyed. Such estimate shall be based on the average
BDT content of similar truck load previously received. 
 ARTICLE V 
 DELIVERY PROJECTIONS 
 On or before April 1 of each calendar year,
beginning with April 1 immediately following the Effective Date, Seller will prepare in good faith and provide to Buyer a schedule of delivery of Hog Fuel for the upcoming logging season, meaning the period from May 1 to April 30 of
the following calendar year (the “Delivery Projection”). If, during the logging season, Seller’s harvest plans materially change, Seller will provide Buyer with an updated delivery schedule. Seller will use reasonable efforts
to meet the delivery schedule in the delivery schedule in the Delivery Projections (as it may be amended). 
 ARTICLE VI 
 TERM 
 This Agreement shall have a term
of two (2) years commencing on the Effective Date, and terminating automatically at 11:59:59 p.m. (Pacific Time), on the second anniversary of the Effective Date (the “Initial Term”), unless terminated earlier in accordance
with its terms, or extended in accordance with the express terms of this Section 5. The Term of this Agreement may be extended for a single one (1) year extension term commencing immediately upon expiration of the Initial Term upon written
notice (the “Extension Notice”) by either party (the “Extending Party”) to the other party (the “Counterparty”) at least six (6) months prior to the termination date of the current Term;
provided, however, that the Counterparty may, in its sole and absolute discretion, decline to extend the Term of this Agreement by providing written notice to the Extending Party within ninety (90) days after the Counterparty
receives the Extension Notice, in which event the Term shall automatically expire at the end of the Initial 

  

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Term. The Initial Term and the extension term are sometimes referred to in this Agreement as the “Term.” 
 ARTICLE VII 
 FORCE MAJEURE. 

 7.1 In the event that Buyer or Seller shall be prevented from performing its respective obligations hereunder by reason of fire, flood, riots,
civil commotion, war, labor strikes or work stoppages, embargoes, weather conditions or restrictions under environmental laws, epidemics or acts of sabotage or any other such cause or causes (whether or not of a similar nature) beyond the reasonable
control of such party (each of the foregoing a “Force Majeure Event”), such party shall not be held in breach hereof, but shall be excused for such nonperformance to the extent and during such time that such Force Majeure Event
exists. Each party shall use commercially reasonable efforts to minimize the duration and consequences of any failure or delay in delivery or acceptance of delivery resulting from a Force Majeure Event and shall give notice of the occurrence of a
Force Majeure Event as soon as commercially practicable after the occurrence thereof, which notice shall include the expected date when the party affected by such Force Majeure Event will no longer be affected thereby. (The period from the notice
and the expected expiration date of the Force Majeure Event is referred to herein as the “Force Majeure Period”.) In the case of Seller, a Force Majeure Event includes any such event that renders it impractical to harvest the Annual
Quantity from the Base Lands or stumpage contracts held by Seller with respect to lands of unrelated third parties within the State of Idaho. 
 7.2
Notwithstanding anything herein to the contrary, if, as a result of a Force Majeure Event pursuant to which Seller’s performance is excused hereunder, Buyer shall have the right to obtain Hog Fuel from sources other than Seller to replace the
Hog Fuel that would have otherwise been delivered by Seller (“Substitute Hog Fuel”) until such time as Seller is again able to commence delivery of Hog Fuel to Buyer; provided that the volume of Hog Fuel Buyer contracts for shall be
no more than the volume of Hog Fuel that reasonably would have been delivered by Seller in the absence of such Force Majeure Event (based upon the expected duration of the Force Majeure Period), and in any event no such agreement for Substitute Hog
Fuel shall be for a term longer than two (2) months or the Force Majeure Period, whichever is longer, without the prior consent of Seller, such consent not to be unreasonably withheld or delayed. After Seller gives notice to Buyer that it is
able to resume delivery of Hog Fuel to Buyer pursuant to the terms of this Agreement, Buyer shall notify Seller of any remaining commitments for the purchase of Substitute Hog Fuel that Buyer has entered into. Buyer shall not be required to accept
delivery of Hog Fuel from Seller until such time as Buyer has accepted delivery of the Substitute Hog Fuel contracted by Buyer. Buyer’s obligations to accept Hog Fuel hereunder (and Seller’s obligation to deliver such Hog Fuel) during the
calendar year in which the Force Majeure Event exists shall be reduced, at Buyer’s election, by the quantity of all Hog Fuel not delivered by Seller due to the Force Majeure Event. 
 7.3 Notwithstanding anything herein to the contrary, if, as a result of a Force Majeure Event pursuant to which Buyer cannot accept the Annual Quantity of Hog Fuel, Seller shall have the right to sell to third
parties, or use for itself, Hog Fuel that Buyer is unable to accept; provided that Seller shall not enter into agreements to sell Hog Fuel to third parties for a term longer than two (2) months or the Force Majeure Period, whichever is longer,
without the prior written 

  

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consent of Buyer, such consent not to be unreasonably withheld or delayed. Upon notice from Buyer to Seller that Buyer is again able to accept delivery of
such Hog Fuel, Seller will notify Buyer of any commitments for the sale of Hog Fuel to third parties that Seller has entered into that preclude or severely hinder Seller’s ability to deliver Hog Fuel to Buyer and Seller shall not be required to
resume providing Hog Fuel to Buyer until Seller has delivered all Hog Fuel covered by such commitments. Seller’s obligation to deliver Hog Fuel hereunder (and Buyer’s obligation to accept such Hog Fuel) during the calendar year in which
the Force Majeure Event exists shall be reduced, at Seller’s election, by the quantity of all such Hog Fuel not accepted by Buyer due to the Force Majeure Event. 
 7.4 Notwithstanding anything herein to the contrary, a “Force Majeure Event” shall not include (i) adverse financial or market conditions, (ii) a party’s financial inability to perform,
or (iii) an act, omission or circumstance arising from the gross negligence or willful misconduct of the party claiming that a Force Majeure Event has occurred. 
 7.5 Notwithstanding anything herein to the contrary, if by virtue of this Section 7, either party is excused from performance of any material obligation for a continuous period greater than four
(4) months, then the other party may (provided its material obligations are not also suspended by such Force Majeure Event) terminate this Agreement upon thirty (30) days prior written notice. 
 ARTICLE VIII 
 ADDITIONAL PROVISIONS

 8.1 Notices. Any notice required or permitted to be issued or given under this Agreement shall be made by one of the following methods:
(a) fax transmittal; (b) personal delivery; or (c) delivery by certified mail, return receipt requested or national overnight courier service (e.g. Federal Express, UPS, DHL), all at the address or number listed below. 
  

			
	 If to Seller:
	  	 Potlatch RetainCo, LLC
 2200 Railroad
Avenue
 St. Maries, ID 83861
 Fax: 208-245-2585
 Attn: Resource Unit Manager

		
	 With a copy to:
	  	 Potlatch Corporation
 601 West First Avenue, Suite
1600
 Spokane, WA 99201
 509-835-1561
 Attn: General Counsel

  

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	 If to Buyer:
	  	 Clearwater Paper Corporation
 805 Mill Road –
P.O. Box 1388
 Lewiston, ID 83501
 Fax: 208-799-1918

Attn: Fiber Supply Manager

		
	 With a copy to:
	  	 Clearwater Paper Corporation
 601 West Riverside
Avenue, Suite 1100
 Spokane, WA 99201
 Fax:
 Attn: General Counsel

 Notices given by fax transmittal shall be effective upon electronic confirmation of delivery.
Notices given by personal delivery shall be effective upon actual delivery. Notices given by certified mail shall be effective three (3) business days after deposited in the US mails, postage prepaid. Notices given by national overnight
services shall be effective two (2) business days after delivery to such courier service, fees prepaid. 
 A party may change the fax
and/or address for notice by giving notice of the change, in writing, in accordance with this Section. 
 8.2 Assignment. This Agreement may not be
assigned in whole or in part without the prior written consent of the nonassigning party, such consent not to be unreasonably withheld or delayed. Notwithstanding the foregoing: 
 (a) Seller may assign this Agreement to a third party that acquires in a single transaction the majority of the Base Lands. Seller will be released from
any liability under this Agreement arising after such assignment upon Buyer’s receipt of an assumption agreement, in a form reasonably acceptable to Buyer, executed by the acquirer of the majority of the Base Lands. 
 (b) In the event of a sale or transfer of substantially all of the assets comprising Buyer’s Mill, Buyer shall assign this Agreement to the
acquirer. Buyer will be released from any liability under this Agreement arising after such assignment upon Seller’s receipt of an assumption agreement, in a form reasonably acceptable to Seller, executed by the acquirer of the Buyer’s
Mill. 
 (c) Either party may assign any or all of its rights and interests hereunder, or delegate any or all of its obligations hereunder to
one or more of its affiliates. 
 Except as provided in Sections 8.3(a) or (b), no assignment shall relieve the assigning party from its
liability under this Agreement. 
 8.3 Default. If either party should fail or neglect to perform or observe any of its covenants or obligations
contained herein, and such default shall continue for thirty (30) days or more after written notice of such failure or neglect shall be given by the other party, or if a bankruptcy or receivership proceeding, voluntary or involuntary, should be
commenced against a party, or if assignment of a party’s property shall be made for the benefit of creditors, then in any of such 

  

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events the other party may, by written notice, terminate this Agreement. Such termination shall not relieve the defaulting party from liability for damages
(subject to the limitations below). NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE FOR INDIRECT OR CONSEQUENTIAL DAMAGES, LOST PROFITS OR PUNITIVE DAMAGES. Except as provided in the previous sentence, it is
agreed that the remedies given herein are not exclusive and are without prejudice to any other remedy available, and that in addition thereto the parties hereto shall have all other remedies expressly set forth in this Agreement or that are
available at law or in equity. 
 8.4 Integration. This Agreement constitutes the entire agreement and understanding between the parties
concerning the subject matter hereof, and supersedes and replaces all prior negotiations, proposed agreements and agreements, written or oral, relating thereto except as expressly set forth herein. There are no promises, statements, covenants,
representations, or warranties, expressed or implied, oral or written, about the subject matter of this Agreement that are not contained herein. 
 8.5 Choice of Law. The parties agree that this Agreement shall be governed by and construed in accordance with the laws of the State of Idaho without reference to its rules governing conflict of laws. 
 8.6 Attorney Fees. If a party to this Agreement files an action in any court or other forum (including in or in connection with any bankruptcy proceeding)
to enforce compliance with any term of this Agreement or to allege a breach thereof against the other party, the prevailing party in that action shall be entitled to recover all reasonable attorneys’ fees, costs and any necessary disbursements
incurred therein, including, without limitation, expert witness fees, deposition costs, court clerk fees, service fees, and printing costs, in addition to any other relief to which the party may be entitled at trial or upon appeal. 
 8.7 No Third Party Beneficiaries. This Agreement creates no rights in favor of any third party not a party to this Agreement. 
 8.8 Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this
Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 
 8.9 Amendments; Modifications; Waiver. Neither this Agreement nor any term or provision thereof may be waived, modified, or amended, except by a written
agreement signed by the party against whom the waiver, modification, or amendment is sought, and even then, only to the extent set forth in such written instrument. The failure of either party to enforce at any time any of the provisions of this
Agreement shall in no way be construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement nor any part hereof or the right of any party thereafter to enforce each and every such provision. No waiver of any
breach of or non-compliance with this Agreement shall be held to be a waiver of any other subsequent breach or non-compliance. No waiver of any provision of this Agreement shall be effective unless made in writing by the party against which the
waiver is to be effective 
  

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 8.10 Construction. The parties to this Agreement have participated fully in its negotiation and
preparation, with benefit of legal counsel, and accordingly, the Agreement shall not be more strictly construed against either one of the parties. Section headings used in this Agreement are for ease of reference only and shall have no bearing on
the interpretation or construction of any provisions of this Agreement. 
 8.11 Counterparts. This Agreement may be executed in counterparts,
each of which is deemed to be an original, but all of which together shall constitute one and the same instrument. Delivery of an executed signature page to this Agreement by facsimile or electronic transmission shall be as effective as delivery of
a manually signed counterpart thereof. 
 [Signature page follows] 
 THIS HOG FUEL SUPPLY AGREEMENT is executed by Buyer and Seller as of the date first hereinabove set forth. 
  

			
	 BUYER:
	  	 Clearwater Paper Corporation,
 a Delaware corporation

  
  
 By:
____________________________________________
 Name: __________________________________________
 Title: ___________________________________________

		
	 SELLER:
	  	 Potlatch RetainCo, LLC,
 a Delaware limited liability
company
  
  
 By:
____________________________________________
 Name: __________________________________________
 Title: ___________________________________________

  

 9Form of Lumber Sales and Marketing Agreement

 Exhibit 10.9 
 LUMBER SALES AND MARKETING AGREEMENT 
 This LUMBER SALES AND MARKETING AGREEMENT (this
“Agreement”) is entered into as of this                  day of
                , 2008 (the “Effective Date”), by and among CLEARWATER PAPER CORPORATION, a Delaware corporation (“Clearwater”),
POTLATCH RETAINCO, LLC, a Delaware limited liability company (“RetainCo”) and POTLATCH CORPORATION, a Delaware corporation (“Potlatch”). As used herein, Clearwater, RetainCo and Potlatch are sometimes referred to
collectively as the “parties,” or individually as a “party.” 
 RECITALS 
 A. In connection with the separation of certain of Potlatch’s businesses and the creation of Clearwater as an independent company as a result of
that separation, Clearwater is the owner of a single sawmill facility located in Lewiston, Idaho (the “Lewiston Mill”), which produces dimensional lumber and cedar lumber products (the “Lewiston Products”).

 B. RetainCo, which is wholly owned by Potlatch, is engaged in the marketing and sale of dimensional lumber and cedar lumber products
produced under the Potlatch name and brand at Retainco’s sawmill facility in St. Maries, Idaho (the “Potlatch Mill,” and together with the Lewiston Mill, the “Western Lumber Mills”). Dimensional lumber and
cedar lumber products produced at the Potlatch Mill are referred to hereafter as the “St. Maries Products.” 
 C. Clearwater
wishes to have RetainCo market and sell the Lewiston Products produced by Clearwater. RetainCo’s commitment to market the Lewiston Products produced by Clearwater is intended to facilitate the transition of Clearwater to an independent business
and support the viability of its business producing and selling the Lewiston Products. 
 D. In connection with the agreements
between Clearwater and RetainCo as set forth herein, Potlatch will grant to Clearwater a non-exclusive, limited license to use the “Potlatch” name, and the logo and trademarks identified on Exhibit A hereto (collectively, the
“Trademarks”) in connection with the sale and marketing of the Lewiston Products, and is joining this Agreement for the limited purposes of licensing such Trademarks to Clearwater. 
 AGREEMENT 
 NOW THEREFORE, in
consideration of the forgoing, the terms and conditions set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Appointment of RetainCo. Clearwater hereby appoints RetainCo as Clearwater’s exclusive representative for the marketing and sale of the
Lewiston Products, subject to the terms and conditions of this Agreement, and RetainCo hereby accepts such appointment. Clearwater will not during the term of this Agreement appoint any other agent or broker in respect of the Lewiston Products.
RetainCo may also, upon mutual agreement of the parties, act as Clearwater’s agent from time to time in procuring lumber products to be remanufactured at the Lewiston Mill. 

 2. Compensation. In consideration of
RetainCo’s agreement to market and sell the Lewiston Products, Clearwater agrees to pay as compensation to RetainCo the fixed rate of $65,000.00 per month for each month in which this Agreement is in effect, prorated, as applicable, for partial
months (each such payment, a “Service Fee”). The Service Fee shall be paid by the fifteenth (15th) day of each month.

  

	 	3.	Term of Agreement; Termination. 

 3.1 This
Agreement shall have a term of three (3) years commencing on the Effective Date unless terminated in accordance with Section 3.2. 
 3.2 This Agreement may be terminated by the parties in the following manner: 
 (a) Either party may terminate this Agreement by
written notice to the other party, if such other party shall have breached any covenant or obligation contained herein and such breach has not been cured by the defaulting party in accordance with Section 8.2 below. 
 (b) Either party may terminate this Agreement at any time after the first anniversary of the Effective Date, without cause, upon at least ninety
(90) days prior written notice to the other party. 
 3.3 The covenants and agreements of the parties set forth in Sections 4.4, 6.2,
7.2, 9 and 10 hereof shall survive the expiration or termination of this Agreement, and shall continue in full force and effect. 
  

	 	4.	License of Trademarks; Use. 

 4.1 Grant of
License. Subject to the terms and conditions of this Agreement, Potlatch hereby grants to Clearwater, and Clearwater hereby accepts, a non-exclusive, royalty free limited license during the term of this Agreement to use the Trademarks in
connection with the marketing and sales of the Lewiston Products (the “License”). 
 4.2 Restrictions on
Assignment/Sublicense. Clearwater shall not assign, transfer or sublicense its rights to use the Trademarks without the prior written consent of Potlatch. For purposes hereof, the sale or transfer of more than 50% of ownership interest in
Clearwater shall constitute a transfer or assignment of the Trademarks. 
 4.3 Rights Reserved; Limited Rights of Use. Potlatch
reserves all rights with respect to the Trademarks not expressly licensed to Clearwater hereunder. Clearwater agrees that it will not utilize the Trademarks in any manner whatsoever other than in connection with the marketing and sales of the
Lewiston Products as contemplated by this Agreement, without the prior written consent of Potlatch. 
 4.4 Agreements Relating to
Potlatch. The parties acknowledge and agree that Potlatch is joining this Agreement solely in its capacity as owner of the Trademarks for the limited purpose of granting the License herein. Clearwater further agrees that it will not contest the
validity or ownership of the Trademarks. 
  

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	 	5.	Sales Terms; Services of RetainCo. 

 5.1
Price. RetainCo will establish the prices and sale terms for all sales of Lewiston Products under this Agreement. RetainCo shall consult with Clearwater from time to time in setting such prices and terms, provided, however, that RetainCo
shall have the final authority with respect to the same. 
 5.2 Title. Upon sale of Lewiston Products by RetainCo to a purchaser,
title to such products sold will be deemed for all purposes to have passed directly from Clearwater to the purchaser of such products, FOB the truck or railcar, free and clear of all charges, liens or encumbrances created by or relating to
Clearwater. Clearwater hereby appoints RetainCo to act as its sole agent for purposes of transferring title to any Lewiston Products sold, and authorizes RetainCo to perform any acts necessary to accomplish the same, including, without limitation,
execution and delivery of documents of title or other instruments evidencing sale of the Lewiston Products to the purchaser. Title and risk of loss of all unsold Lewiston Products shall remain with Clearwater until such products are sold by
RetainCo, at which time title and risk of loss will pass to the purchaser. 
 5.3 Packaging. Clearwater agrees that all Lewiston
Products produced by Clearwater and prepared for sale by RetainCo shall bear the appropriate “Potlatch” stamp and shall be packaged with wrapper or other packaging bearing Potlatch branding and Trademarks, as applicable. 
 5.4 Shipping. RetainCo shall endeavor to sell all Lewiston Products FOB the Lewiston Mill. If Lewiston Products are sold on a basis other than FOB
the Lewiston Mill, RetainCo shall be responsible for coordinating truck or rail shipments of such products from the Lewiston Mill, and RetainCo shall negotiate all freight rates for such shipments. Clearwater will be responsible for loading such
products on the carrier and will perform all other reasonable actions necessary to complete each such order, including payment of shipping costs and charges outbound from the Lewiston Mill. 
 5.5 Grade Standards. Clearwater shall produce the Lewiston Products in accordance with WWPA standards. 
 5.6 Product Warranties. Clearwater warrants to RetainCo that the Lewiston Products produced by Clearwater will meet applicable industry accepted
quality standards and WWPA grading standards. RetainCo is not authorized to make on behalf of Clearwater any other warranty regarding the Lewiston Products. 
 5.7 Claims. RetainCo, in consultation with Clearwater will investigate, negotiate and facilitate any claims or returns that may arise over Lewiston Products shipped or produced by Clearwater. Notwithstanding
the foregoing, Clearwater shall be responsible for any settlement or discount due to a customer on account of failure of the Lewiston Products to meet specifications or standards or due to damage to such products. Any and all costs paid or incurred
by RetainCo in connection with the investigation, negotiation or facilitation of such claims shall be charged to and paid by Clearwater. RetainCo shall be responsible for and reimburse Clearwater for any loss suffered by Clearwater which arises out
of an error in order entry or shipment or similar error caused by the negligence of RetainCo. 
  

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 5.8 Fair Treatment. It is understood that RetainCo, in addition to selling the Lewiston Products,
sells the St. Maries Products, and such activities will not be considered a conflict of interest or breach of this Agreement by RetainCo. RetainCo will, however, treat Clearwater and the Lewiston Products fairly and as reasonably equally as is
commercially practicable to the St. Maries Products; without limitation, RetainCo shall not intentionally discriminate or make determinations of which orders to fill with the Lewiston Products and which orders to fill with the St. Maries Products
based on the profitability of the prospective sale or the relative creditworthiness of the customer. 
  

	 	5.9	Customer Invoicing; Remittance and Set-Offs. 

 (a) RetainCo shall invoice customers directly for all Lewiston Products sold, and shall be
responsible for collecting any payments made by customers in respect of such products (“Sales Proceeds”). On or before the 15th and
the final day of each month (each such date, a “Remittance Date”), RetainCo shall remit to Clearwater all Sales Proceeds collected by RetainCo in the period preceding such Remittance Date, net of any shipping charges paid by
RetainCo as provided for herein (each, a “Remittance”). Notwithstanding the foregoing, the parties may, in lieu of the foregoing, establish a system whereby payments from purchasers of Lewiston Products are paid directly to a
lockbox under the control of Clearwater or its lenders. If customer payments are paid to a separate Clearwater lockbox, Clearwater shall pay to RetainCo all shipping charges incurred by RetainCo with respect to the Lewiston Products within ten
(10) days of invoice by RetainCo. 
 (b) RetainCo shall have the right, in its sole discretion, to set off and deduct from any
Remittance due hereunder such amounts, if any, as are due and owing to RetainCo as of the applicable Remittance Date, including, without limitation, any outstanding Service Fees, accrued and unpaid Credit Loss Payments (as defined in
Section 7.2), shipping charges owing under Section 5.4 and claims expenses owing under Section 5.7. If, in connection with any Remittance, RetainCo elects to exercise the right of set-off contained in this Section, it shall submit to
Clearwater with such Remittance an accounting setting forth the nature and origin of the claimed set-off. 
 5.10 VMI Programs.
Clearwater acknowledges and agrees that RetainCo may include Lewiston Products in vendor managed inventory sales programs that RetainCo may from time to time have with customers. 
 5.11 Performance Review; Sales Planning. The sales manager of RetainCo and manager of the Lewiston Mill shall meet periodically (no less
frequently than quarterly) to review RetainCo’s sales performance and to forecast the Lewiston Products to be produced based on market conditions and log supply. 
  

 4 

	 	6.	Sales Office; Employees. 

 6.1 RetainCo shall be
entitled to maintain a sales office at the Lewiston Mill to market and sell the Lewiston Products during the term of this Agreement. Clearwater hereby agrees to provide to RetainCo, free of rent or other charge, such amount of office space at the
Lewiston Mill as is necessary and appropriate for RetainCo to perform the activities contemplated herein and will furnish telephone service and other customary utilities for such office. All persons hired or retained by RetainCo to work at
RetainCo’s sales office at the Lewiston Mill (the “Employees”) shall be employees of RetainCo and not of Clearwater, and shall work solely under RetainCo’s direction. Clearwater acknowledges and agrees that such Employees
are employees of RetainCo, and Clearwater will not cause or permit its activities at the Lewiston Mill to unreasonably interfere with the employment relationship between RetainCo and any Employee. 
 6.2 It is expressly understood and agreed that RetainCo will retain Employees in addition to those necessary to sell and market the St. Maries Products
in order to carry out its sales of Lewiston Products; as such, the parties acknowledge that any termination of this Agreement will result in RetainCo employing more sales staff than will be necessary to continue sales of St. Maries Products
following such termination. If this Agreement is terminated for any reason other than by reason of an uncured event of default by RetainCo, and RetainCo determines that as a result it will terminate or relocate any of the Employees involved in
selling lumber for the Western Lumber Mills, Clearwater will, upon demand, reimburse RetainCo for one half the severance and relocation costs incurred by RetainCo, as reasonably determined by RetainCo; provided, however, that Clearwater will not be
responsible for any severance or relocation costs for any such Employee(s) promptly hired by it on substantially similar salary and benefits terms or who turn down an offer of employment from Clearwater on substantially similar salary and benefits
terms. 
  

	 	7.	Allocation of Credit Risk. 

 7.1 The parties hereby
agree that all Credit Loss (as defined below) arising in connection with the sale of lumber produced at the Western Lumber Mills during the term of this Agreement shall be shared equally between Clearwater and RetainCo. For purposes of this
Agreement “Credit Loss” means all loss resulting from the non-payment by a customer of any amount due and owing under an order or other contract for sale of lumber products. The foregoing allocation shall apply regardless of whether
such Credit Loss arises from the sale of Lewiston Products or from the sale of St. Maries Products. 
 7.2 Every sixty (60) days,
RetainCo shall determine the amount of any Credit Losses incurred in connection with sales of Western Lumber Mills lumber products during such sixty (60) day period, and shall determine the amount of any equalizing payments necessary to
allocate such Credit Losses equally between the parties (each such payment, a “Credit Loss Payment”). Unless the parties agree in writing to a different time, any Credit Loss Payment due hereunder shall be paid not later than five
(5) days after the amount of such Credit Loss Payment is determined in accordance with this Section 7.2. 
  

 5 

 7.3 If a particular sale or account has resulted in a Credit Loss, and the customer thereafter makes
payment in respect of such sale or account, then RetainCo shall notify Clearwater of the amount of payment received and shall promptly remit to Clearwater one half of such amount. Notwithstanding the foregoing, RetainCo shall not be required to
refund any portion of the customer payment that is subject to set-off pursuant to Section 5.9(b) hereof. 
  

	 	8.	Default; Cure. 

 8.1 Failure of a party to perform
any of its covenants or agreements hereunder or to comply with any term or condition hereof, which failure shall continue for a period of thirty (30) days or more after delivery of the notice contemplated by Section 8.2 below, shall be an
event of default hereunder, and shall give the non-defaulting party the right to terminate this Agreement pursuant to Section 3.2(a), unless such default is cured as provided for herein. 
 8.2 Upon the breach of any covenants or agreement hereunder, the non-breaching party shall cause to be delivered to the party in breach a written notice
setting out the nature of the breach and the actions required to cure it. The party in breach shall thereafter have thirty (30) days to cure such breach; provided, however, that where the nature of the breach is such that it cannot reasonably
be cured within thirty (30) days, then the party in breach will be considered for the purposes of this section to have cured the breach if it has commenced taking all reasonable steps to cure the breach with such thirty (30) day period and
in fact cures the breach as soon as reasonably practicable thereafter using all due diligence. 
 9. Remedies; Limitation of
Liability. Subject to the limitations below, any termination of this Agreement by reason of uncured default shall not relieve the defaulting party from liability for damages. It is agreed that the remedies given herein are not exclusive and are
without prejudice to any other remedy available, and that in addition thereto the parties hereto shall have all other remedies expressly set forth in this Agreement or that are available at law or in equity. NOTWITHSTANDING ANY OTHER PROVISION OF
THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR INDIRECT OR CONSEQUENTIAL DAMAGES, LOST PROFITS OR PUNITIVE DAMAGES. 
  

	 	10.	Indemnification. 

 10.1 Clearwater
Indemnity. Clearwater assumes liability for, and agrees to defend, indemnify and hold RetainCo and Potlatch and their directors, officers, employees, agents or representatives harmless from any liability, loss, cost, expense, or damage of any
nature, including fines, forfeitures, penalties, settlements, and reasonable attorneys’ fees (collectively “Liabilities”) asserted against or suffered by them in connection with any demands, claims, suits, actions or
proceedings (“Claims) related to or arising from (a) Clearwater’s breach of the terms of this Agreement or (b) product defect or failure of the Lewiston Products to meet grading standards. Upon the written request of an
indemnified party, Clearwater shall assume the defense of all Claims against such parties for which indemnity is provided pursuant to this Section 10.1 and allow such party to participate in the defense thereof at their expense. 
  

 6 

 10.2 RetainCo Indemnity. RetainCo assumes liability for, and agrees to defend, indemnify and hold
Clearwater and its directors, officers, employees, agents or representatives harmless from Liabilities asserted against or suffered by them in connection with any related to or arising from (a) RetainCo’s breach of the terms of this
Agreement or (b) the presence or actions of RetainCo employees located at the Lewiston Mill pursuant to Section 6 other than to the extent such Liabilities are attributable to the negligence or willful misconduct of Clearwater or its
directors, officers, employees, agents or representatives. Upon the written request of an indemnified party, RetainCo shall assume the defense of all Claims against such parties for which indemnity is provided pursuant to this Section 10.2 and
allow such party to participate in the defense thereof at their expense. 
  

	 	11.	Other Terms and Conditions. 

 11.1 Limited
Authority. Except as expressly set forth herein, neither Clearwater nor RetainCo has the authority to (i) bind the other party by or to any contract, representation, understanding, act or deed; (ii) represent to any third party that
either party is an agent of the other party; or (iii) represent to any third party that either party is responsible for the acts or omissions of the other party. 
 11.2 Notices. Any notice required or permitted to be issued or given under this Agreement shall be made by one of the following methods: (a) facsimile transmittal; (b) personal delivery; or
(c) delivery by certified mail, return receipt requested or national overnight courier service (e.g. Federal Express, UPS, DHL), all at the address or number listed below. 
  

			
	 If to Clearwater:
	  	 Clearwater Paper Corporation
 805 Mill Road

P.O. Box 1388
 Lewiston, ID 83501
 Fax: 208-799-1918
 Attn: Manager Mfg, Wood Products

		
	 With a copy to:
	  	 Clearwater Paper Corporation
 601 West Riverside
Avenue, Suite 1100
 Spokane, WA 99201
 Fax:
 Attn: General Counsel

		
	 If to RetainCo or Potlatch:
	  	 Potlatch Corporation
 601 West First Avenue, Suite
1600
 Spokane, WA 99201
 Fax: 509-835-1555
 Attn: Vice President Sales, Wood Products

  

 7 

			
	 With a copy to:
	  	 Potlatch Corporation
 601 West First Avenue, Suite
1600
 Spokane, WA 99201
 Fax: 509-835-1555
 Attn: General Counsel

 Notices given by fax transmittal shall be effective upon electronic confirmation of delivery.
Notices given by personal delivery shall be effective upon actual delivery. Notices given by certified mail shall be effective three (3) business days after deposited in the US mails, postage prepaid. Notices given by national overnight
services shall be effective two (2) business days after delivery to such courier service, fees prepaid. A party may change the fax and/or address for notice by giving notice of the change, in writing, in accordance with this Section.

 11.3 Assignment. This Agreement may not be assigned in whole or in part without the prior written consent of the nonassigning
party, such consent not to be unreasonably withheld or delayed. 
 11.4 Entire Agreement. This Agreement constitutes the entire
agreement and understanding between the parties concerning the subject matter hereof, and supersedes and replaces all prior negotiations, proposed agreements and agreements, written or oral, relating thereto except as expressly set forth herein.
There are no promises, statements, covenants, representations, or warranties, expressed or implied, oral or written, about the subject matter of this Agreement that are not contained herein. 
 11.5 Choice of Law. The parties agree that this Agreement shall be governed by and construed in accordance with the laws of the State of Idaho
without reference to its rules governing conflict of laws. 
 11.6 Attorney Fees. If a party to this Agreement files an action in any
court or other forum (including in or in connection with any bankruptcy proceeding) to enforce compliance with any term of this Agreement or to allege a breach thereof against the other party, the prevailing party in that action shall be entitled to
recover all reasonable attorneys’ fees, costs and any necessary disbursements incurred therein, including, without limitation, expert witness fees, deposition costs, court clerk fees, service fees, and printing costs, in addition to any other
relief to which the party may be entitled at trial or upon appeal. 
 11.7 No Third Party Beneficiaries. This Agreement creates no
rights in favor of any third party not a party to this Agreement. 
 11.8 Severability. If any provision of this Agreement is held
invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full
force and effect to the extent not held invalid or unenforceable. 
  

 8 

 11.9 Amendments; Modifications; Waiver. Neither this Agreement nor any term or provision thereof
may be waived, modified, or amended, except by a written agreement signed by the party against whom the waiver, modification, or amendment is sought, and even then, only to the extent set forth in such written instrument. The failure of either party
to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement nor any part hereof or the right of any party thereafter to
enforce each and every such provision. No waiver of any breach of or non-compliance with this Agreement shall be held to be a waiver of any other subsequent breach or non-compliance. No waiver of any provision of this Agreement shall be effective
unless made in writing by the party against which the waiver is to be effective. 
 11.10 Construction; Interpretation. The parties to
this Agreement have participated fully in its negotiation and preparation, with benefit of legal counsel, and accordingly, the Agreement shall not be more strictly construed against either one of the parties. Section headings used in this Agreement
are for ease of reference only and shall have no bearing on the interpretation or construction of any provisions of this Agreement. 
 11.11
Counterparts. This Agreement may be executed in counterparts, each of which is deemed to be an original, but all of which together shall constitute one and the same instrument. Delivery of an executed signature page to this Agreement by
facsimile or electronic transmission shall be as effective as delivery of a manually signed counterpart thereof. 
 THIS LUMBER SALES AND
MARKETING AGREEMENT is executed by the parties as of the date first hereinabove set forth. 
  

			
	 Clearwater:
	  	 CLEARWATER PAPER CORPORATION,
 a Delaware corporation

  
 By:
 Name:
 Title:

		
	 RetainCo:
	  	 POTLATCH RETAINCO, LLC,
 a Delaware limited liability
company
  
 By:
 Name:
 Title:

  

 9 

			
	 Potlatch
	  	 Solely for the purposes of Sections 4, 10.1 and 11
  
 POTLATCH CORPORATION, a Delaware corporation
  
 By:
 Name:
 Title:

  

 10 

 EXHIBIT A 
 Trademarks 
  

	1.	U.S. Trademark, registered October 30, 2007, Registration No. 3327333, Serial No. 78815747 

  

	2.	U.S. Trademark, registered September 12, 1975, Registration No. 1019372, Serial No. 73029765 

  

	3.	U.S. Trademark, registered May 12, 1970, Registration No. 0890760, Serial No. 72322187 

 

 
  

 Exhibit A

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