Document:

Deltic Timber Corporation 2002 Stock Incentive Plan

 EXHIBIT 10.1 
 DELTIC TIMBER CORPORATION 2002 STOCK INCENTIVE PLAN 
 SECTION 1. Purpose. 
 The Deltic Timber Corporation 2002 Stock Incentive Plan is designed to enhance the ability of the Company to attract and retain exceptionally qualified
individuals and to encourage them to acquire a proprietary interest in the growth and performance of the Company. 
 SECTION 2.
Definitions. 
 As used in the Plan, the following terms shall have the meanings set forth below: 
 (a) “Affiliate” shall mean (i) any entity that, directly or indirectly, is controlled by the Company and (ii) any entity in which the
Company has a significant equity interest, in either case as determined by the Committee. If and to the extent that it is necessary for an Award to comply with Section 409A of the Code, “Affiliate” shall be interpreted in a manner
that is consistent with the characterization of the Shares as “service recipient stock”. 
 (b) “Award” shall mean any
Option, award of Restricted Stock, Restricted Stock Unit, Performance Unit or Other Stock-Based Award granted under the Plan. 
 (c)
“Award Agreement” shall mean any written agreement, contract or other instrument or document evidencing any Award granted under the Plan, which may, but need not, be executed or acknowledged by a Participant. 
 (d) “Board” shall mean the board of directors of the Company. 
 (e) “Change of Control” shall mean the first to occur of: 
 (i) an individual, corporation,
partnership, group, associate or other entity or “person”, as such term is defined in Section 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), other than the Company or any employee benefit plan(s)
sponsored by the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 25% or more of the combined voting power of the Company’s outstanding securities ordinarily
having the right to vote at elections of directors; 
 (ii) individuals who constitute the Board of Directors of the Company on the effective
date of the Plan (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any Approved Director, as hereinafter defined, shall be, for purposes of this subsection (ii), considered as though such
person were a member of the Incumbent Board. An “Approved Director”, for purposes of this subsection (ii), shall mean any person becoming a director subsequent to the effective date of the Plan whose 

 election, or nomination for election by the Company’s shareholders, was approved by a vote of at last three-quarters
of the directors comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee of the Company for director), but shall not include any such individual whose
initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or
consents by or on behalf of an individual, corporation, partnership, group, associate or other entity or “person” other than the Board. 
 (iii) the approval by the shareholders of the Company of a plan or agreement providing (A) for a merger or consolidation of the Company other than with a wholly- owned subsidiary and other than a merger or consolidation that would
result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 65% of the combined voting
power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (B) for a sale, exchange or other disposition of all or substantially all of the assets of the Company. If any
of the events enumerated in this subsection (iii) occurs, the Committee shall determine the effective date of the Change of Control resulting therefrom for purposes of the Plan. 
 (iv) In addition to the events described in subsections (i), (ii) and (iii), it shall be a “Change of Control” for purposes hereof for any
Participant principally employed in the business of a Designated Business Unit, as hereinafter defined, if an event described in subsections (i), (ii) or (iii) shall occur, except that for purposes of this subsection (iv), references in
such subsections to the “Company” shall be deemed to refer to the Designated Business Unit in the business of which the Participant is principally employed. A change in Control described in this subsection (iv) shall apply only to a
Participant employed principally by the affected Designated Business Unit. For purposes of this subsection (iv), “Designated Business Unit” shall mean those subsidiaries and any other business unit identified as a Designated Business Unit
by the Committee from time to time. 
 (v) If a transaction would constitute a “Change of Control” hereunder, but would not
constitute a permissible payment event for purposes of Section 409A, and if an outstanding Award holder would be subject to adverse tax consequences as a result, the Company shall not be required to make any payment to any such Participant that
would cause such Participant to incur such adverse consequences. 
 (f) “Code” shall mean the Internal Revenue Code of 1986, as
amended from time to time. 
 (g) “Committee” shall mean a committee of the Board designated by the Board to administer the Plan.
Unless otherwise determined by the Board, the Executive Compensation Committee designated by the Board shall be the Committee under the Plan. 

 (h) “Company” shall mean Deltic Timber Corporation, together with any successor thereto.

 (i) “Earnings Per Share” shall mean earnings per share calculated in accordance with Generally Accepted Accounting Principles.

 (j) “Executive Group” shall mean every person who is expected by the Committee to be both (i) a “covered
employee” as defined in Section 162(m) of the Code as of the end of the taxable year in which payment of the Award may be deducted by the Company, and (ii) the recipient of compensation of more than $1,000,000 for that taxable year.

 (k) “Fair Market Value” shall mean, with respect to any property (including, without limitation, any Shares or other securities)
the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee. 
 (l) “Incentive Stock Option” shall mean an option granted under Section 6 that is intended to meet the requirements of Section 422 of the Code, or any successor provision thereto. 
 (m) “Market Share” shall mean the percent of sales of the total available market in an industry, product line or product attained by the
Company or one of its business units during a time period. 
 (n) “Net Revenue Per Employee” in a period shall mean net revenue
divided by the average number of employees of the Company, with average defined as the sum of the number of employees at the beginning and ending of the period divided by two. 
 (o) “Non-Qualified Stock Option” shall mean an option granted under Section 6 that is not intended to be an Incentive Stock Option.

 (p) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option. 
 (q) “Other Stock-Based Award” shall mean any right granted under Section 9. 
 (r) “Participant” shall mean an individual granted an Award under the Plan. 
 (s) “Performance Unit” shall mean any right granted under Section 8. 
 (t) “Restricted Stock” shall mean any Share granted under Section 7. 
 (u) “Restricted Stock Unit” shall mean a contractual right granted under Section 7 that is denominated in Shares, each of which represents
a right to receive the value of a Share (or a percentage of such value, which percentage may be higher than 100%) upon the terms and conditions set forth in the Plan and the applicable Award Agreement. 

 (v) “Return On Common Equity” for a period shall mean net income less preferred stock dividends
divided by total shareholders equity, less amounts, if any, attributable to preferred stock. 
 (w) “Return On Net Assets” for a
period shall mean net income less preferred stock dividends divided by the difference of average total assets less average non-debt liabilities, with average defined as the sum of assets or liabilities at the beginning and ending of the period
divided by two. 
 (x) “Revenue Growth” shall mean the percentage change in revenue (as defined in Statement of Financial
Accounting Concepts No. 6, published by the Financial Accounting Standards Board) from one period to another. 
 (y) “Plan”
shall mean this Deltic Timber Corporation 2002 Stock Incentive Plan. 
 (z) “Shares” shall mean shares of the common stock of the
Company, $.01 par value. 
 (aa) “Substitute Awards” shall mean Awards granted in assumption of, or in substitution for,
outstanding awards previously granted by a company acquired by the Company or with which the Company combines. 
 (bb) “Total
Shareholder Return” shall mean the sum of the appreciation in the Company’s stock price and dividends paid on the common stock of the Company over a given period of time. 
 SECTION 3. Eligibility. 
 (a) Any
individual who is employed by the Company or any Affiliate, and any individual who provides services to the Company or any Affiliate as an independent contractor, including any officer or employee-director, shall be eligible to be selected to
receive an Award under the Plan. 
 (b) An individual who has agreed to accept employment by, or to provide services to, the Company or an
Affiliate shall be deemed to be eligible for Awards hereunder as of the date of such agreement. 
 (c) Directors who are not full-time or
part-time officers or employees are eligible to receive Awards hereunder. 
 (d) Holders of options and other types of Awards granted by a
company acquired by the Company or with which the Company combines are eligible for grant of Substitute Awards hereunder. 

 SECTION 4. Administration 
 (a) The Plan shall be administered by the Committee. The Committee shall be appointed by the Board and shall consist of not less than three directors. The
Board may designate one or more directors as alternate members of the Committee who may replace any absent or disqualified member at any meeting of the Committee. The Committee may issue rules and regulations for administration of the Plan. It shall
meet at such times and places as it may determine. A majority of the member of the Committee shall constitute a quorum. 
 (b) Subject to the
terms of the Plan and applicable law, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards (including Substitute Awards) to be granted to each Participant under the
Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments, rights, or other matters are to be calculated in connection with) Awards; (iv) determine the terms and conditions of any Award;
(v) determine whether, to what extent, and under what circumstances Awards may be settled or exercised in cash, Shares, other securities, other Awards, or other property, or canceled, forfeited or suspended, and the method or methods by which
Awards may be settled, exercised, canceled, forfeited or suspended; (vi) determine whether, to what extent, and under what circumstances cash, Shares, other securities, other Awards, other property, and other amounts payable with respect to an
Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of the Committee; (vii) interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan;
(viii) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; (ix) determine whether and to what extent Awards should comply or continue
to comply with any requirement of statute or regulation; and (x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. 
 (c) All decisions of the Committee shall be final, conclusive and binding upon all parties, including the Company, the stockholders and the Participants.

 SECTION 5. Shares Available for Awards. 
 (a) Subject to adjustment as provided below, the number of Shares available for issuance under the Plan shall be 1,800,000 shares. Notwithstanding the foregoing and subject to adjustment as provided in
Section 5(e), (i) no Participant may receive Options and stock appreciation rights under the Plan in any calendar year that relate to more than 50,000 Shares and (ii) the maximum number of Shares with respect to which Awards may be
made under Sections 7 and 9 is 180,000. 
 (b) If, after the effective date of the Plan, any Shares covered by an Award, or to which such an
Award relates, are forfeited, or if such an Award otherwise terminates without the delivery of Shares or of other consideration, then the Shares covered by such Award, or to which such Award relates, to the extent of any such forfeiture or
termination, shall again be, or shall become, available for issuance under the Plan. 
 (c) In the event that any Option or other Award
granted hereunder (other than a 

 Substitute Award) is exercised through the delivery of Shares, or in the event that withholding tax liabilities arising
from such Option or Award are satisfied by the withholding of Shares by the Company, the number of Shares available for Awards under the Plan shall be increased by the number of Shares so surrendered or withheld. 
 (d) Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares or of treasury Shares. 
 (e) In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Shares, other securities, or
other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to
purchase Shares or other securities of the Company, or other similar corporate transaction or event affects the Shares such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or other securities or property) which
thereafter may be made the subject of Awards, including the aggregate and individual limits specified in Section 5(a), (ii) the number and type of Shares (or other securities or property) subject to outstanding Awards, and (iii) the
grant, purchase, or exercise price with respect to any Award or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; provided however, that the number of Shares subject to any Award denominated in
Shares shall always be a whole number. 
 (f) Shares underlying Substitute Awards shall not reduce the number of Shares remaining available
for issuance under the Plan. 
 SECTION 6. Options. 
 The Committee is hereby authorized to grant Options to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the
Plan, as the Committee shall determine: 
 (a) The purchase price per Share under an Option shall be determined by the Committee; provided,
however, that, except in the case of Substitute Awards, such purchase price shall not be less than the Fair Market Value of a Share on the date of grant of such Option. 
 (b) The term of each Option shall be fixed by the Committee. 
 (c) The Committee shall determine the time or times at which an Option may be exercised in whole or in part, and the method or methods by which, and the form or forms, including, without limitation, cash, Shares,
other Awards, or other property, or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price, in which, payment of the exercise price with respect thereto may be made or deemed to have been made.

 (d) The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions of Section 422 of
the Code, or any successor provision thereto, and any regulations promulgated thereunder. 

 SECTION 7. Restricted Stock and Restricted Stock Units. 
 (a) The Committee is hereby authorized to grant Awards of Restricted Stock and Restricted Stock Units to Participants. 
 (b) Shares of Restricted Stock and Restricted Stock Units shall be subject to such restrictions as the Committee may impose (including, without
limitation, any limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend or other right or property), which restrictions may lapse separately or in combination at such time or times, in such installments or
otherwise, as the Committee may deem appropriate. If the vesting conditions applicable to an Award of Restricted Stock or Restricted Stock Units relate exclusively to the passage of time and continued employment or provision of services, or
refraining therefrom, such time period shall consist of not less than 36 months. 
 (c) Any share of Restricted Stock granted under the Plan
may be evidenced in such manner as the Committee may deem appropriate including, without limitation, book-entry registration or issuance of a stock certificate or certificates. In the event any stock certificate is issued in respect of shares of
Restricted Stock granted under the Plan, such certificate shall be registered in the name of the Participant and may bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock. 
 (d) Except as otherwise determined by the Committee, upon termination of employment or cessation of the provision of services (as determined under
criteria established by the Committee) for any reason during the applicable restriction period, all Shares of Restricted Stock and all Restricted Stock Units still, in either case, subject to restriction shall be forfeited and reacquired by the
Company; provided, however, that the Committee may, when it finds that a waiver would be in the best interests of the Company, waive in whole or in part any or all remaining restrictions with respect to Shares of Restricted Stock or
Restricted Stock Units. 
 SECTION 8. Performance Units. 
 (a) The Committee is hereby authorized to grant Performance Units to Participants. 
 (b) Subject to the
terms of the Plan, a Performance Unit granted under the Plan (i) may be denominated or payable in cash, Shares (including, without limitation, Restricted Stock), other securities, other Awards, or other property and (ii) shall confer on the
holder thereof rights valued as determined by the Committee and payable to, or exercisable by, the holder of the Performance Unit, in whole or in part, upon the achievement of such performance goals during such performance periods as the Committee
shall establish. Subject to the terms of the Plan, the performance goals to be achieved during any performance period, the length of any performance period, the amount of any Performance Unit granted and the amount of any payment or transfer to be
made pursuant to any Performance Unit shall be determined by the Committee. 

 SECTION 9. Other Stock-based Awards 
 The Committee is hereby authorized to grant to Participants such other Awards (including, without limitation, stock appreciation rights and rights to
dividends and dividend equivalents) that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including, without limitation, securities convertible into Shares) as are deemed by the
Committee to be consistent with the purposes of the Plan. Subject to the terms of the Plan, the Committee shall determine the terms and conditions of such Awards. Shares or other securities delivered pursuant to a purchase right granted under this
Section 9 shall be purchased for such consideration, which may be paid by such method or methods and in such form or forms, including, without limitation, cash, Shares, other securities, other Awards, or other property, or any combination
thereof, as the Committee shall determine, the value of which consideration, as established by the Committee, shall, except in the case of Substitute Awards, not be less than the Fair Market Value of such Shares or other securities as of the date
such purchase right is granted. 
 SECTION 10. General Provisions Applicable to Awards 
 (a) Awards shall be granted for no cash consideration or for such minimal cash consideration as may be required by applicable law. 
 (b) Awards may, in the discretion of the Committee, be granted either alone or in addition to or in tandem with any other Award or any award granted
under any other plan of the Company. Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards granted under any other plan of the Company, may be granted either at the same time as or at a different
time from the grant of such other Awards or awards. 
 (c) Subject to the terms of the Plan, payments or transfers to be made by the Company
upon the grant, exercise or payment of an Award may be made in such form or forms as the Committee shall determine including, without limitation, cash, Shares, other securities, other Awards, or other property, or any combination thereof, and may be
made in a single payment or transfer, in installments, or on a deferred basis, in each case in accordance with rules and procedures established by the Committee and, if and to the extent necessary, in compliance with Section 409A of the Code.
Such rules and procedures may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of dividend equivalents in respect of installment or deferred
payments. 
 (d) Unless the Committee shall otherwise determine, no Award and no right under any such Award, shall be assignable, alienable,
saleable or transferable by a Participant otherwise than by will or by the laws of descent and distribution; provided, however, that if so determined by the Committee, a Participant may, in the manner established by the Committee, designate a
beneficiary or beneficiaries to exercise the rights of the Participant, and to receive any property distributable, with respect to any Award upon the death of the Participant. Each Award, and each right under any Award, shall be exercisable during
the Participant’s lifetime 

 only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal
representative. No Award and no right under any such Award, may be pledged, alienated, attached, or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable against the Company.
The provisions of this paragraph shall not apply to any Award which has been fully exercised, earned or paid, as the case may be, and shall not preclude forfeiture of an Award in accordance with the terms thereof. 
 (e) All certificates for Shares or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop
transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares or other securities are
then listed, and any applicable Federal or state securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
 (f) An Award (other than an option or stock appreciation right) to a member of the Executive Group may include a pre-established formula, such that
payment, retention or vesting of the Award is subject to the achievement during a performance period or periods, as determined by the Committee, of a level or levels, as determined by the Committee, of one or more of the following performance
measures: (i) Return on Net Assets, (ii) Revenue Growth, (iii) Return on Common Equity, (iv) Total Shareholder Return, (v) Earnings Per Share, (vi) Net Revenue Per Employee or (vii) Market Share. 
 (g) Unless specifically provided to the contrary in any Award Agreement, upon a Change of Control, all Awards shall become fully vested and exercisable,
and any restrictions applicable to any Award shall automatically lapse. 
 SECTION 11. Amendment and Termination 
 (a) Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award Agreement or in the Plan, the Board may amend,
alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time; provided, however, that no such amendment, alteration, suspension, discontinuation or termination shall be made without (i) shareholder approval if
such approval is necessary to comply with any tax or regulatory requirement for which or with which the Board deems it necessary or desirable to qualify or comply or (ii) the consent of the affected Participant, if such action would adversely
affect the rights of such Participant under any outstanding Award. Notwithstanding anything to the contrary herein, the Committee may amend the Plan in such manner as may be necessary to enable the Plan to achieve its stated purposes in any
jurisdiction outside the United States in a tax-efficient manner and in compliance with local rules and regulations. 
 (b) The Committee may
waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue or terminate, any Award theretofore granted, prospectively or retroactively, without the consent of any relevant Participant or holder or beneficiary of
an Award, provided, however, that no such action shall impair the rights of any affected Participant 

 or holder or beneficiary under any Award theretofore granted under the Plan; and provided further that, except as
provided in Section 5(e), no such action shall reduce the exercise price of any Option established at the time of grant hereof. 
 (c)
The Committee shall be authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 5(e))
affecting the Company, or the financial statements of the Company, or of changes in applicable laws, regulations or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan. In making such adjustments, the Committee shall ensure that Awards do not cause a Participant to incur adverse tax consequences under Section 409A
of the Code without the consent of the affected Participant. 
 (d) Any provision of the Plan or any Award Agreement to the contrary
notwithstanding, the Committee may cause any Award granted hereunder to be canceled in consideration of a cash payment or alternative Award made to the holder of such canceled Award equal in value to the Fair Market Value of such canceled Award.

 (e) The Committee may correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award in the manner and
to the extent it shall deem desirable to carry the Plan into effect. 
 SECTION 12. Miscellaneous. 
 (a) No employee, independent contractor, Participant or other person shall have any claim to be granted any Award under the Plan, and there is no
obligation for uniformity of treatment of employees, independent contractors, Participants, or holders or beneficiaries of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to each recipient. 
 (b) The Company shall be authorized to withhold from any Award granted or any payment due or transfer made under any Award or under the Plan or from any
compensation or other amount owing to a Participant the amount (in cash, Shares, other securities, other Awards, or other property) of withholding taxes due in respect of an Award, its exercise, or any payment or transfer under such Award or under
the Plan and to take such other action (including, without limitation, providing for elective payment of such amounts in cash, Shares, other securities, other Awards or other property by the Participant) as may be necessary in the opinion of the
Company to satisfy all obligations for the payment of such taxes. 
 (c) Nothing contained in the Plan shall prevent the Company from
adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases. 
 (d) The grant of an Award shall not be construed as giving a Participant the right to 

 be retained in the employ or service of the Company or any Affiliate. Further, the Company or the applicable Affiliate
may at any time dismiss a Participant from employment or terminate the services of an independent contractor, free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award Agreement or in any
other agreement binding the parties. 
 (e) If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or
unenforceable in any jurisdiction, or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it
cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award, and the remainder of the
Plan and any such Award shall remain in full force and effect. 
 (f) Neither the Plan nor any Award shall create or be construed to create a
trust or separate fund of any kind or a fiduciary relationship between the Company and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company pursuant to an Award, such right shall be
no greater than the right of any unsecured general creditor of the Company. 
 (g) No fractional Shares shall be issued or delivered pursuant
to the Plan or any Award, and the Committee shall determine whether cash, other securities or other property shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled,
terminated or otherwise eliminated. 
 SECTION 13. Effective Date of Plan. 
 The Plan shall be effective as of the date of its approval by the stockholders of the Company. 
 SECTION 14. Term of the Plan. 
 No
Award shall be granted under the Plan after the tenth anniversary of the effective date However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond such date, and the
authority of the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award, or to waive any conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date.Annual Incentive Compensation Plan

 EXHIBIT 10.13 
 ANNUAL INCENTIVE COMPENSATION PLAN 
 FOR DELTIC TIMBER CORPORATION 
 I. PURPOSE OF THE PLAN 
 The purpose of the Annual Incentive Compensation Plan (hereinafter the “Plan”) for
Deltic Timber Corporation is to provide incentive compensation to those full-time, salaried employees who, in the opinion of the Committee, contribute significantly to the growth and success of the Company; to attract and retain individuals of
outstanding ability; and to align the interests of eligible employees with the interests of the Company stockholders. 
 II. DEFINITIONS 

When used in the Plan, the following words and phrases shall have the following meanings: 
  

	 	(a)	“Board” means the Board of Directors of Deltic Timber Corporation. 

  

	 	(b)	“Committee” means the Executive Compensation Committee of the Board or any other committee of the Board designated by Resolution of the Board to administer the Plan.

  

	 	(c)	“Company” means Deltic Timber Corporation, its successors and assigns, and each of its subsidiaries designated by the Committee for participation in this Plan.

  

	 	(d)	“Participant” means any full-time, salaried employee of the Company selected by the Committee to receive an award under the Plan. Nonemployee members of the Board are not
eligible to receive awards under the Plan. 

  

	 	(e)	“Performance Criteria” means those financial and/or business measures that are selected each Plan Year by the Committee and used to determine awards under the Plan.

  

	 	(f)	“Plan” means the Annual Incentive Compensation Plan for Deltic Timber Corporation. 

  

	 	(g)	“Plan Year” means the period of twelve (12) consecutive months, beginning January 1 of each year and ending December 31 of each year, during the course of
which Performance Criteria are measured. 

 III. ADMINISTRATION OF THE PLAN 
 The Plan shall be administered by the Committee. Subject to the provisions of the Plan, the Committee shall have exclusive authority to amend, modify, suspend or terminate the Plan at any time. 
 At the beginning of each Plan Year, the President and Chief Executive Officer of the Company will make recommendations to the Committee regarding Participants, size of
awards, financial and business segment Performance Criteria and performance targets. The Committee will consider and approve or modify the recommendations as appropriate. The Performance Criteria shall in any event be adopted by the Committee in
writing no later than ninety (90) days following the beginning of each Plan Year. Once adopted by the Committee, these objectives and the specific level of achievement will then be communicated to each Participant. At the conclusion of each
Plan Year, the President and Chief Executive Officer of the Company will present to the Committee a schedule indicating actual performance results and the recommended award earned by each Participant. The Committee will review the recommendations
and approve or modify the recommended award to be paid to each Participant. 
 IV. PERFORMANCE CRITERIA 
 The Performance Criteria to be used to measure actual performance for establishing award opportunities in the Plan shall be approved by the Committee. 
 V. DETERMINATION OF AWARDS 
 As soon as practicable after the end of
each Plan Year, the President and Chief Executive Officer of the Company will determine the actual level of performance for each criteria. This actual level of performance will be compared to the target and a deviation from target will be determined
by using payout matrices approved by the Committee. This deviation from target, expressed as a percent, will determine the actual payout, if any, for each individual and for all Participants combined. When actual performance is either above or below
the target, payouts to all Participants will be increased or decreased to reflect actual performance. Actual payouts must be approved by the Committee. 
 VI. REVISED AWARD LEVELS AND PERFORMANCE CRITERIA 
 For Participants who are assigned to different position levels or transferred between
Company organizations during the Plan Year, the Committee may, at any time, and upon recommendation of the President and Chief Executive Officer of the Company, establish revised award levels and performance measure(s) for that Participant.

 VII. FORM OF PAYMENT 
 All awards under the Plan will be paid in cash, in one lump sum, subject to such payroll taxes and other deductions, if any, as may be applicable at the time of payment. 
 VII. TIMING OF PAYMENT 
 All awards will be paid as soon as practicable following approval of actual awards by the
Committee, but not later than two and one-half (2 1/2) months following the end of the Plan Year for which the
awards were granted. 
 IX. ADJUSTMENTS 
 The
Committee may not retroactively change any performance measure, targets, payout schedules or participation levels for a Plan Year, except to the extent determined by the Committee in the event of changes in accounting practices or extraordinary or
unanticipated circumstances. 
 X. TERMINATION, DEATH OR DISABILITY 
 Awards will be paid only to Participants who are actually employed and on the payroll on the last day of each Plan Year. A Participant whose employment terminates prior to the end of the Plan Year shall forfeit any
and all awards and payouts from the Plan, whether terminated by the Company or voluntarily. Those who terminate employment due to death, disability or normal retirement will be paid a pro-rata portion of any award based on their date of termination.
Such prorated payments will be made at the time and in the form that all payments are normally made to all other Participants. 
 XI. SPECIAL INCENTIVE A
WARDS 
 The Company’s President and Chief Executive Officer has the authority under the terms and provisions of the Plan to grant special incentive
awards to both Participants and non-Participants in those years where it is reasonable to expect that performance measures will be met and incentive bonuses earned. In this regard, a special cash incentive award may be available to a full-time
employee of the Company or any of its subsidiaries in recognition of the employee’s exceptional performance or unusual contributions during the Plan Year; provided that the total of such awards shall not exceed an amount calculated to be equal
to 15 percent of the total incentive bonus pool for such year. Such awards will be paid in the form of a cash bonus, subject to regular payroll taxes and other deductions that may be applicable at the time of payment. Only full-time salaried
employees of the Company or its subsidiaries shall be considered to be eligible for a special incentive award; nonemployee members of the Board of Directors cannot receive an award pursuant to the Plan. 

 XII. MISCELLANEOUS 
 No Participant shall have the right to anticipate, alienate, sell, transfer, assign, pledge or encumber his or her right to receive any award made under the Plan. 
 No Participant shall have any lien on any assets of the Company by reason of any award made under the Plan. 
 The Company reserves the right to modify or discontinue the Plan at any time, provided, that no such modification or discontinuance shall adversely affect rights to
receive any amount to which Participants have become entitled prior to such modification or termination. Neither the Plan nor any award made under the Plan shall create any employment contract or relationship between the Company and any Participant,
or affect in any manner the rights of the Company with respect to the termination of employment of any Participant. 
 Each Participant shall be provided
with a description for each Plan Year which shall include applicable performance measure(s) for such year, a payout schedule for various levels of performance and individual target payout percents for such Participant. 
 This Plan shall be binding on the successors of the Company (including any Successor Company).

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