Document:

Form of Tax Sharing Agreement

 EXHIBIT 10.3 
 TAX SHARING AGREEMENT 
 by and among 
 POTLATCH CORPORATION, 
 POTLATCH FOREST HOLDINGS, INC. 
 POTLATCH LAND & LUMBER, LLC, 
 and 
 CLEARWATER PAPER CORPORATION 
 Dated as of             , 2008 

 TABLE OF CONTENTS 
  

					
	  	  	 	  	Page
	 ARTICLE I DEFINITIONS
	  	2
		
	 ARTICLE II PREPARATION AND FILING OF TAX RETURNS
	  	7
			
	 Section 2.1
	  	 Potlatch Entities’ Responsibility
	  	7
	 Section 2.2
	  	 Clearwater’s Responsibility
	  	7
	 Section 2.3
	  	 Agent
	  	7
	 Section 2.4
	  	 Manner of Tax Return Preparation
	  	7
	 Section 2.5
	  	 Tax Services
	  	8
		
	 ARTICLE III LIABILITY FOR TAXES
	  	8
			
	 Section 3.1
	  	 Potlatch Entities’ Liability for Section 2.1 Taxes
	  	8
	 Section 3.2
	  	 Clearwater’s Liability for Section 2.2 Taxes
	  	9
	 Section 3.3
	  	 Subsequent Adjustments
	  	9
		
	 ARTICLE IV SPIN-OFF TAXES AND ALLOCATION
	  	9
			
	 Section 4.1
	  	 Spin-off Taxes
	  	9
	 Section 4.2
	  	 Private Letter Rulings; Tax Opinion
	  	10
	 Section 4.3
	  	 Carryback of Net Operating Losses
	  	11
	 Section 4.4
	  	 Continuing Covenants
	  	12
	 Section 4.5
	  	 Allocation of Tax Assets
	  	13
		
	 ARTICLE V INDEMNIFICATION
	  	13
			
	 Section 5.1
	  	 Generally
	  	13
	 Section 5.2
	  	 Inaccurate, Incomplete or Untimely Information
	  	13
	 Section 5.3
	  	 Adjustments to Payments
	  	14
	 Section 5.4
	  	 Reporting of Indemnifiable Loss
	  	14
	 Section 5.5
	  	 No Indemnification for Tax Items
	  	15
	 Section 5.6
	  	 REIT Status
	  	15
	 Section 5.7
	  	 Double Recovery
	  	15
		
	 ARTICLE VI PAYMENTS
	  	15
			
	 Section 6.1
	  	 In General
	  	15
	 Section 6.2
	  	 Treatment of Payments
	  	15
	 Section 6.3
	  	 Prompt Performance
	  	15
	 Section 6.4
	  	 After Tax Amounts
	  	15
	 Section 6.5
	  	 Interest
	  	16

  

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	 Section 6.6
	  	 REIT Savings
	  	16
		
	 ARTICLE VII TAX PROCEEDINGS
	  	17
			
	 Section 7.1
	  	 Audits
	  	17
	 Section 7.2
	  	 Notice
	  	17
	 Section 7.3
	  	 Remedies
	  	17
	 Section 7.4
	  	 Control of Spin-off Tax Proceedings
	  	18
		
	 ARTICLE VIII MISCELLANEOUS PROVISIONS
	  	18
			
	 Section 8.1
	  	 Cooperation and Exchange of Information
	  	18
	 Section 8.2
	  	 Dispute Resolution
	  	19
	 Section 8.3
	  	 Notices
	  	19
	 Section 8.4
	  	 Changes in Law
	  	20
	 Section 8.5
	  	 Confidentiality
	  	20
	 Section 8.6
	  	 Assignment
	  	21
	 Section 8.7
	  	 Affiliates
	  	21
	 Section 8.8
	  	 Authority
	  	21
	 Section 8.9
	  	 Entire Agreement
	  	21
	 Section 8.10
	  	 Governing Law and Jurisdiction
	  	21
	 Section 8.11
	  	 Counterparts
	  	22
	 Section 8.12
	  	 Severability
	  	22
	 Section 8.13
	  	 Parties in Interest
	  	22
	 Section 8.14
	  	 Failure or Indulgence Not Waiver
	  	22
	 Section 8.15
	  	 Setoff
	  	22
	 Section 8.16
	  	 Amendments
	  	22
	 Section 8.17
	  	 Interpretation
	  	22

  

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 TAX SHARING AGREEMENT 
 This Tax Sharing Agreement (this “Agreement”) is dated as of [-], 2008, by and among Potlatch Corporation, a Delaware corporation
(“Potlatch”), Potlatch Forest Holdings, Inc., a Delaware corporation and wholly owned subsidiary of Potlatch (“Holdings”), Clearwater Paper Corporation f/k/a Potlatch Forest Products Corporation, a Delaware
corporation and currently a direct, wholly owned subsidiary of Holdings (“Clearwater”), and Potlatch Land & Lumber, LLC, a Delaware limited liability company and currently a direct, wholly owned subsidiary of Clearwater
(“RetainCo,” and together with Potlatch, Holdings, and Clearwater, the “Parties,” with each sometimes referred to herein as a “Party”). 
 RECITALS 
 WHEREAS, the Boards of Directors of the Parties have each determined
that it is appropriate and desirable to separate the Pulp-Based Business from the Retained Business and accordingly have caused the Parties to enter into the Separation and Distribution Agreement dated as of [-], 2008 (the “Separation
Agreement”); 
 WHEREAS, as set forth in the Separation Agreement, and subject to the terms and conditions thereof, the Parties
currently contemplate that Clearwater will contribute and transfer to RetainCo, and RetainCo will receive and assume, assets and liabilities currently held by Clearwater and associated with the Retained Business and Clearwater will distribute all of
the stock of RetainCo to Holdings in a transaction intended to qualify as a tax-free reorganization and distribution under sections 368(a)(1)(D) and 355 of the Code (the “Internal Spin-off”); 
 WHEREAS, as set forth in the Separation Agreement, and subject to the terms and conditions thereof, the Parties currently contemplate that, following the
Internal Spin-off, Holdings will distribute all of its shares of Clearwater common stock to Potlatch and Potlatch will distribute all of its shares of Clearwater common stock received from Holdings to Potlatch shareholders in a transaction intended
to qualify as a tax-free distribution of the shares of a controlled corporation under section 355 of the Code (the “Public Spin-off”); 
 WHEREAS, in contemplation of the Internal Spin-off and the Public Spin-off (collectively, the “Spin-offs”) pursuant to which RetainCo and its subsidiaries will become direct and indirect subsidiaries
of Potlatch and Holdings (each of Potlatch, Holdings, RetainCo, and the subsidiaries of RetainCo, a “Potlatch Entity”) and will cease to be direct and indirect subsidiaries of Clearwater, and Clearwater will become an independent
corporation whose shares are listed on the New York Stock Exchange, the Parties have determined to enter into this Agreement, setting forth their agreement with respect to certain Tax matters; and 

 WHEREAS, the Parties desire to set forth their agreement on the rights and obligations of the Potlatch
Entities, on the one hand, and Clearwater, on the other hand, with respect to handling and allocating federal, state and local and foreign Taxes, in periods beginning prior to the Closing Date, Taxes resulting from transactions effectuated in
connection with the Spin-offs and various other Tax matters. 
 NOW, THEREFORE, in consideration of the foregoing and the terms, conditions,
covenants and provisions of this Agreement, the Parties mutually covenant and agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 “After
Tax Amount” means any additional amount necessary to reflect (through a gross-up mechanism) the hypothetical Tax consequences of the receipt or accrual of any payment required to be made under this Agreement (including payment of an
additional amount or amounts hereunder and the effect of the deductions available for interest paid or accrued and for Taxes such as state and local Income Taxes), determined by using the highest marginal corporate Tax rate (or rates, in the case of
an item that affects more than one Tax) for the relevant taxable period (or portion thereof). 
 “Audit” includes any audit,
assessment of Taxes, or other examination by any Taxing Authority, proceeding, or appeal of such a proceeding relating to Taxes, whether administrative or judicial, including proceedings relating to competent authority determinations. 
 “Clearwater Representation Letter” means an officer’s certificate in which certain representations, warranties and covenants are
made on behalf of Clearwater in connection with the issuance of a Tax Opinion. 
 “Closing Date” means the date on which the
Public Spin-off is effected. 
 “Code” means the Internal Revenue Code of 1986, as amended, and any successor thereto.

 “Combined Return” means any Tax Return, other than with respect to United States federal Income Taxes, filed on a
consolidated, combined (including nexus combination, worldwide combination, domestic combination, line of business combination or any other form of combination) or unitary basis wherein Clearwater joins in the filing of such Tax Return (for any
taxable period or portion thereof) with one or more Potlatch Entities. 
 “Control” means the ownership of stock possessing
at least 50 percent of the total combined voting power of all classes of stock entitled to vote. 
 “Dispute Resolution Commencement
Date” has the meaning set forth in Section 8.3. 
 “Dispute” has the meaning set forth in Section 8.3.

  

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 “Escrow Agreement” has the meaning set forth in Section 6.3. 
 “Estimated Tax Installment Date” means the estimated Tax installment due dates prescribed in section 6655(c) of the Code and any other
date on which an installment of Taxes is required to be made. 
 “Filing Party” has the meaning set forth in
Section 7.1. 
 “Final Determination” means the final resolution of liability for any Tax for any taxable period, by or
as a result of: (i) a final and unappealable decision, judgment, decree or other order by any court of competent jurisdiction; (ii) a final settlement with the IRS, a closing agreement or accepted offer in compromise under Code sections
7121 or 7122, or a comparable agreement under the laws of other jurisdictions, which resolves the entire liability for such Tax for any taxable period; (iii) any allowance of a refund or credit in respect of an overpayment of Tax, but only
after the expiration of all periods during which such refund may be recovered by the jurisdiction imposing the Tax; or (iv) any other final disposition, including by reason of the expiration of the applicable statute of limitations. 

“Income Tax” means any federal, state, local or foreign Tax determined by reference to income, net worth, gross receipts or capital,
or any such Taxes imposed in lieu of such Tax. 
 “Indemnifiable Loss Deduction” has the meaning set forth in
Section 5.3. 
 “Indemnified Loss” has the meaning set forth in Section 5.3. 
 “Indemnifying Party” has the meaning set forth in Section 5.3. 
 “Indemnitee” has the meaning set forth in Section 5.3. 
 “Independent Firm” means an accounting firm which has not, except pursuant to Section 8.3, performed any services since
January 1, 2006 for any Party. 
 “Internal Spin-off” has the meaning given in the recitals to this Agreement.

 “Initial Ruling” means any private letter ruling issued by the IRS in connection with the Spin-offs in response to
Potlatch’s initial request for such a letter ruling. 
 “IRS” means the United States Internal Revenue Service or any
successor thereto, including, but not limited to its agents, representatives, and attorneys. 
 “Non-Income Spin-off Taxes”
means any Taxes other than Income Taxes imposed on any Party as a result of or in connection with the Spin-offs that would not have been imposed but for the Spin-offs. 
 “Option” means an option to acquire common stock, or other equity-based incentives the economic value of which is designed to mirror that of an option, including non-qualified stock options,
discounted non-qualified stock options, cliff options to the extent stock is issued or issuable (as opposed to cash compensation), and tandem stock options to the extent stock is issued or issuable (as opposed to cash compensation). 
  

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 “Owed Party” has the meaning set forth in Section 6.3. 
 “Owing Party” has the meaning set forth in Section 6.3. 
 “Payment Period” has the meaning set forth in Section 6.3(e). 
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof. 
 “Post-Spin Period” means a taxable period beginning after the Closing Date. 
 “Potlatch Entity”
has the meaning set forth in the recitals to this Agreement. 
 “Potlatch Representation Letter” means an officer’s
certificate in which certain representations, warranties and covenants are made on behalf of any Potlatch Entity in connection with the issuance of a Tax Opinion. 
 “Pre-Spin Period” means a taxable period beginning before the Closing Date, including, for the avoidance of doubt, any taxable period that begins before the Closing Date and ends following the Closing
Date. 
 “Pre-Spin Refinancing” means the series of transactions to be undertaken by Clearwater immediately preceding the
Spin-offs whereby Clearwater will issue notes and contribute a portion of the proceeds of such notes to RetainCo in consideration of the assumption by RetainCo of a portion of Clearwater’s indebtedness. 
 “Prohibited Act” has the meaning set forth in Section 4.4. 
 “Public Spin-off” has the meaning set forth in the recitals to this Agreement. 
 “Pulp-Based Business” has the meaning set forth in the Separation Agreement. 
 “Qualifying Income” has the meaning set forth in Section 6.3. 
 “REIT” has the meaning set forth in Section 5.7. 
 “REIT Failure Taxes” means any Taxes that are imposed upon Potlatch as a result of Potlatch’s failure to satisfy the REIT income test requirements of section 856(c)(2) and 856(c)(3) of Code,
which failure would not have occurred but for gain recognized by Potlatch from: (i) the failure of the Spin-offs to qualify as tax-free under sections 368(a)(1)(D) or 355 of the Code; or (ii) the application of section 355(d) or section
355(e) of the Code. REIT Failure Taxes include, but shall not be limited to: (i) corporate-level Taxes imposed on Potlatch during such years as Potlatch is ineligible to reelect REIT status as a result of the application of section 856(g) of
the Code; and (ii) Taxes imposed under sections 856(c)(7), 856(g)(5), 857(b)(5), or 4981 of the Code, or any section of the Code imposing interest, penalties, or additions to tax on such Taxes, as a result of the failure described in the
immediately preceding sentence. 
  

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 “REIT Savings Escrow Notice” has the meaning set forth in Section 6.3. 

“Restated Tax Saving Amount” has the meaning set forth in Section 5.4. 
 “Restricted Period” has the meaning set forth in Section 4.4. 
 “Retained Business” has the meaning set forth in the Separation Agreement. 
 “Ruling Documents” means (1) the initial request for a private letter ruling under section 355 and various other sections of the
Code, filed with the IRS in connection with the Spin-offs, together with any supplemental filings or ruling requests or other materials subsequently submitted in connection with such request on behalf of Potlatch, its subsidiaries and shareholders
to the IRS, the appendices and exhibits thereto, and any rulings issued by the IRS to any Potlatch Entity in response to such request or (2) any similar filings submitted to, or rulings issued by, any other Tax Authority in connection with the
Spin-offs. 
 “Separation Agreement” has the meaning set forth in the recitals to this Agreement. 
 “Separation Date” means the effective date and time of the transfers of property, assumption of liability, license, undertaking or
agreement in connection with the separation of the Retained Business and the Pulp-Based Business, as set forth in the Separation Agreement. 
 “Spin-off Taxes” means any Taxes imposed on Clearwater or any Potlatch Entity resulting from, or arising in connection with, the failure of the Internal Spin-off or the Public Spin-off to be tax-free to such party under
section 355 and section 368(a)(1)(D) of the Code, as the case may be (including, without limitation, any Tax resulting from the application of section 355(d) or section 355(e) of the Code) or corresponding provisions of the laws of any other
jurisdictions, including any REIT Failure Taxes. Each Tax referred to in the immediately preceding sentence shall be determined using the highest marginal federal and state corporate Income Tax rate for the relevant taxable period (or portion
thereof). 
 “Spin-offs” has the meaning set forth in the recitals to this Agreement. 
 “Supplemental Ruling Documents” means (1) any request for a Supplemental Ruling and any materials, appendices and exhibits
submitted or filed therewith and any Supplemental Rulings issued by the IRS to any Potlatch Entity in response to any such request and (2) any similar filings submitted to, or rulings issued by, any other Taxing Authority in connection with the
Spin-offs. 
 “Supplemental Ruling” means (1) any ruling issued by the IRS in connection with the Spin-offs other than
a ruling in response to Potlatch’s initial request for a private letter ruling, and (2) any similar ruling issued by any other Taxing Authority addressing the application of a provision of the laws of another jurisdiction to the Spin-offs.

  

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 “Tax” and “Taxes” include all taxes, charges, fees, duties, levies,
imposts, rates or other assessments imposed by any federal, state, local or foreign Taxing Authority, including, but not limited to, income, gross receipts, excise, property, sales, use, license, capital stock, transfer, franchise, payroll,
withholding, social security, value added and other taxes, and any interest, penalties or additions attributable thereto. 
 “Tax
Asset” means any Tax Item that has accrued for Tax purposes, but has not been used during a taxable period, and that could reduce a Tax in another taxable period, including, but not limited to, a net operating loss, net capital loss,
investment tax credit, foreign tax credit, charitable deduction, credit related to alternative minimum tax and any other Tax credit. 
 “Tax Benefit” means a reduction in the Tax liability of a taxpayer for any taxable period. A Tax Benefit shall be deemed to have been realized or received from a Tax Item in a taxable period only if and to the extent that
the Tax liability of the taxpayer for such period, after taking into account the effect of the Tax Item on the Tax liability of such taxpayer in the current period and all prior periods, is less than it would have been if such Tax liability were
determined without regard to such Tax Item. 
 “Tax Detriment” means an increase in the Tax liability of a taxpayer for any
taxable period. A Tax Detriment shall be deemed to have been realized or received from a Tax Item in a taxable period only if and to the extent that the Tax liability of the taxpayer for such period, after taking into account the effect of the Tax
Item on the Tax liability of such taxpayer in the current period and all prior periods, is more than it would have been if such Tax liability were determined without regard to such Tax Item. 
 “Tax Item” means any item of income, gain, loss, deduction or credit, or other attribute that may have the effect of increasing or
decreasing any Tax. 
 “Tax Opinion” means an opinion issued to Potlatch by Skadden, Arps, Slate, Meagher & Flom
LLP with respect to the qualification of the Spin-offs for tax-free treatment under sections 368(a)(1)(D) and 355 of the Code. 
 “Tax Return” means any return, report, certificate, form or similar statement or document (including any related or supporting information or schedule attached thereto and any information return, amended tax return, claim
for refund or declaration of estimated tax) required to be supplied to, or filed with, a Taxing Authority in connection with the determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative
requirements relating to any Tax. 
 “Tax Saving Amount” has the meaning set forth in Section 5.3. 
 “Tax Services” has the meaning set forth in Section 2.5(a). 
 “Taxing Authority” means any governmental authority or any subdivision, agency, commission or authority thereof or any
quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax (including the IRS). 
  

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 “Transition Services Agreement” means the Transition Services Agreement between
Potlatch, Holdings, Clearwater, and RetainCo dated as of [-], 2008. 
 “Treasury Regulations” means the final and temporary
(but not proposed) income tax regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 
 ARTICLE II 
 PREPARATION AND FILING OF TAX RETURNS 
 Section 2.1 Potlatch Entities’ Responsibility. The Potlatch Entities shall have sole and exclusive responsibility for the preparation and
filing of: 
 (a) all Tax Returns with respect to the Potlatch Entities and Clearwater for Pre-Spin Periods (including, for
the avoidance of any doubt, any Pre-Spin Period with respect to which RetainCo files any Tax Return on a consolidated, combined, unitary or similar basis with Clearwater); 
 (b) all Tax Returns with respect to the Potlatch Entities for Post-Spin Periods. 
 Section 2.2 Clearwater’s Responsibility. Clearwater shall have sole and exclusive responsibility for the preparation and filing of all Tax
Returns with respect to Clearwater for Post-Spin Periods. 
 Section 2.3 Agent. Subject to the other applicable provisions of this
Agreement, Clearwater hereby irrevocably designates Potlatch as its sole and exclusive agent and attorney-in-fact to take such action (including execution of documents) as Potlatch, in its reasonable discretion, may deem appropriate in any and all
matters (including Audits) relating to any Tax Return described in Section 2.1(a). 
 Section 2.4 Manner of Tax Return
Preparation. 
 (a) Unless otherwise required by a Taxing Authority, the Parties shall prepare and file all Tax Returns,
and take all other actions, in a manner consistent with this Agreement and the Separation Agreement, and, to the extent not inconsistent with this Agreement, the Separation Agreement or applicable law, any Ruling Documents and any Supplemental
Ruling Documents. All Tax Returns shall be filed on a timely basis (taking into account applicable extensions) by the party responsible for filing such Tax Returns under this Agreement. 
 (b) Subject to Section 2.4(a), Potlatch shall have the exclusive right, in its reasonable discretion, with respect to any Tax Return
described in Section 2.1 to determine (1) the manner in which such Tax Return shall be prepared and filed, including the elections, methods of accounting, positions, conventions and principles of taxation to be used and the manner in which
any Tax Item shall be reported, (2) whether any extensions may be requested, (3) the elections that will be made on such Tax Return, (4) whether any amended Tax Return(s) 

  

 7 

 
shall be filed, (5) whether any claim(s) for refund shall be made, (6) whether any refund shall be paid by way of refund or credited against any
liability for the related Tax, and (7) whether to retain outside firms to prepare or review such Tax Returns; provided, that Potlatch shall prepare all Tax Returns described in Section 2.1(a) in a manner consistent with its past Tax
reporting practices. 
 (c) Within sixty (60) days after filing the Tax Return for the tax year that includes the Closing
Date, Potlatch shall notify Clearwater of the Tax attributes associated with Clearwater and with RetainCo, and the Tax bases of the assets and liabilities, transferred to RetainCo pursuant to the Separation Agreement. Potlatch shall provide
Clearwater with preliminary estimates of such information on or before January 20, 2009. 
 Section 2.5 Tax Services. 

(a) In General. It is the intention of the Parties that except as specifically provided herein, the Transition Services
Agreement shall govern the provision of tax services by the Potlatch Entities to Clearwater (the “Tax Services”). 
 (b) Right to Review. Potlatch shall provide or cause to be provided any Tax Return (or portion or excerpt thereof relating exclusively to Clearwater) to be filed by Potlatch on behalf of Clearwater pursuant to the Potlatch
Entities’ provision of Tax Services at least ten (10) business days prior to the due date of such Tax Return, including extensions. Clearwater shall have the right to comment on any such Tax Return (or portion or excerpt thereof, as
applicable), and Potlatch shall reasonably consider Clearwater’s comments. 
 (c) Information. Potlatch shall
provide or cause to be provided to Clearwater copies of all Tax Returns (or portions or excerpts thereof relating exclusively to Clearwater) filed on behalf of Clearwater, in each case within fifteen (15) days of filing, pursuant to the
Potlatch Entities’ provision of Tax Services and promptly provide any notices or communications from any Taxing Authority relating to any Tax or Tax Return of Clearwater covered by the Tax Services. 
 (d) List of Tax Returns. As soon as practicable after the Closing Date, Potlatch shall provide to Clearwater an updated list of all
Tax Returns to be filed by Potlatch on behalf of Clearwater pursuant to Section 2.1(a). 
 ARTICLE III 
 LIABILITY FOR TAXES 
 Section
3.1 Potlatch Entities’ Liability for Section 2.1 Taxes. The Potlatch Entities shall be liable for all Taxes due with respect to all Tax Returns described in Section 2.1, and shall be liable for any Tax deficiency assessed with
respect to such Tax Returns. The Potlatch Entities shall be entitled to receive and retain all refunds of Taxes previously paid by any Potlatch Entities with respect to such Taxes. 
  

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 Section 3.2 Clearwater’s Liability for Section 2.2 Taxes. Clearwater shall be liable for
all Taxes due with respect to Tax Returns described in Section 2.2, and shall be liable for any Tax deficiency assessed with respect to such Tax Returns. Clearwater shall be entitled to receive and retain all refunds of Taxes previously paid by
Clearwater with respect to such Taxes. 
 Section 3.3 Subsequent Adjustments. If, as a result of any payment by a Potlatch Entity of a
Tax in connection with an audit, adjustment, or amended Tax Return described in Section 2.1, Clearwater receives a reciprocal (i.e., arising directly from such adjustment) Tax Benefit, Clearwater shall pay the amount of such Tax Benefit to
RetainCo. If, as a result of any payment by Clearwater of a Tax in connection with an audit, adjustment, or amended Tax Return described in Section 2.2, the Potlatch Entities receive a reciprocal net Tax Benefit on an aggregate basis, the
Potlatch Entities shall pay the amount of such Tax Benefit to Clearwater. 
 ARTICLE IV 
 SPIN-OFF TAXES AND ALLOCATION 
 Section 4.1 Spin-off Taxes. 
 (a) Potlatch Entities’ Liability for Spin-off Taxes.
Notwithstanding Article III, the Potlatch Entities shall be liable for one hundred percent (100%) of any Spin-off Taxes that are attributable to, or result from, one or more of the following: 
 (i) any action or omission by any Potlatch Entity that is materially inconsistent with any material or information, or that constitutes a
material breach of any material covenant or material representation, pertaining to the Potlatch Entities in the Ruling Documents, Supplemental Ruling Documents, Initial Ruling, or Supplemental Ruling, or the Potlatch Representation Letter, if any;

 (ii) any action or omission by any Potlatch Entity after the Closing Date, including, without limitation, a cessation,
transfer to affiliates, or disposition of its active trades or businesses, or an issuance of stock, stock buyback or payment of an extraordinary dividend by any Potlatch Entity following the Spin-offs; 
 (iii) any acquisition of any stock or assets of any Potlatch Entity by one or more other Persons occurring prior to or following the
Spin-offs; or 
 (iv) any issuance of stock by any Potlatch Entity, or change in ownership of stock in any Potlatch Entity,
that causes section 355(d) or section 355(e) of the Code to apply to the Spin-offs. 
  

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 (b) Clearwater’s Liability for Spin-off Taxes. Notwithstanding Article III,
Clearwater shall be liable for one hundred percent (100%) of any Spin-off Taxes that are attributable to, or result from, one or more of the following: 
 (i) any action or omission by Clearwater that is materially inconsistent with any material or information, or that constitutes a material
breach of any material covenant or material representation, pertaining to Clearwater in the Ruling Documents, Supplemental Ruling Documents, Initial Ruling, or Supplemental Ruling, or the Clearwater Representation Letter, if any; 
 (ii) any action or omission by Clearwater after the Closing Date, including without limitation, a cessation, transfer to affiliates or
disposition of its active trades or businesses, or an issuance of stock, stock buyback or payment of an extraordinary dividend by Clearwater following the Spin-offs; 
 (iii) any acquisition of any stock or assets of Clearwater by one or more other Persons following the Spin-offs; or 
 (iv) any issuance of stock by Clearwater, or change in ownership of stock in Clearwater, that causes section 355(d) or section 355(e) of
the Code to apply to the Spin-offs. 
 (c) First Party Responsible. The first party to act or fail to act in a manner that results in
the imposition of Spin-off Taxes shall be liable for one hundred percent (100%) of such Spin-off Taxes pursuant to Section 4.1(a) or 4.1(b), as applicable; provided, that if such first party is able to act, and does act, in a manner that
results in Spin-off Taxes not being imposed, then such first party shall not be liable for any Spin-off Taxes imposed as a result of any act or omission by the other party subsequent to the first party’s action or omission. 
 (d) No Party Responsible. If Spin-off Taxes are imposed and no Party bears responsibility for the imposition of such taxes under
Section 4.1(c), then Clearwater shall be liable for twenty percent (20%) of such Spin-off Taxes pursuant to Section 4.1(a) or 4.1(b), and the Potlatch Entities shall be liable for eighty percent (80%), of such Spin-off Taxes pursuant to
Section 4.1(a) or 4.1(b). 
 (e) Liability for Non-Income Spin-off Taxes. The liability for any Non-Income Spin-off Taxes shall
be borne by Clearwater only if such liability arises with respect to the Pre-Spin Refinancing. The liability for all other Non-Income Spin-off Taxes shall be borne by the Potlatch Entities. 
 Section 4.2 Private Letter Rulings; Tax Opinion. 
 (a) Information. Potlatch has provided Clearwater with copies of the Ruling Documents, if any, submitted on or prior to the date specified in the preamble to this Agreement, and shall provide Clearwater with
copies of any Ruling Documents or Supplemental Ruling Documents prepared after such date prior to the submission of such Ruling Documents or Supplemental Ruling Documents, as applicable, to a Taxing Authority. Potlatch shall provide Clearwater with
a copy of the Potlatch Representation Letter and a copy of the Tax Opinion, if any. Clearwater shall provide Potlatch with a copy of the Clearwater Representation Letter. 
  

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 (b) Cooperation by Clearwater. Clearwater shall cooperate with Potlatch, and shall
take any and all actions reasonably requested by Potlatch, in connection with (i) Potlatch’s submission of any Ruling Documents prepared after the date specified in the preamble to this Agreement and (ii) Potlatch’s request for a
Tax Opinion. 
 (c) Supplemental Rulings. 
 (i) In General. At the reasonable request of Clearwater, Potlatch shall cooperate with Clearwater and use its reasonable best
efforts to seek to obtain, as expeditiously as possible, a Supplemental Ruling or other guidance from the IRS or any other Taxing Authority for the purpose of confirming the continuing validity of any ruling issued by any Taxing Authority addressing
the application of the law to the Spin-offs; provided that Potlatch shall not be obligated to seek a Supplemental Ruling if it reasonably believes that seeking such Supplemental Ruling would adversely affect Potlatch, its shareholders or any
Potlatch Affiliate. Further, in no event shall Potlatch be required to file any Supplemental Ruling Documents unless Clearwater represents that (A) it has read the Supplemental Ruling Documents and (B) all information and representations,
if any, relating to Clearwater contained in the Supplemental Ruling Documents are true, correct and complete in all material respects. Clearwater shall reimburse the Potlatch Entities for all costs and expenses incurred by any Potlatch Entity in
obtaining a Supplemental Ruling requested by Clearwater. Clearwater shall not seek any guidance (whether written or oral) from the IRS or any other Taxing Authority concerning the Spin-offs except as set forth in this Section 4.2(c).

 (ii) Participation Rights. If Potlatch requests a Supplemental Ruling or other guidance after the date specified in
the preamble to this Agreement: (A) Potlatch shall keep Clearwater informed in a timely manner of all material actions taken or proposed to be taken by Potlatch in connection therewith; (B) Potlatch shall (1) reasonably in advance of
the submission of any such Supplemental Ruling Documents provide Clearwater with a draft copy thereof, (2) reasonably consider Clearwater’s comments on such draft copy, (3) provide Clearwater with a final copy of the Supplemental
Ruling Documents, and (4) provide Clearwater with notice reasonably in advance of, and Clearwater shall have the right to attend, any meetings with the Taxing Authority (subject to the approval of the Taxing Authority) that relate to such
Supplemental Ruling. 
 Section 4.3 Carryback of Net Operating Losses. Clearwater shall not elect under section 172(b)(3) of the Code
or any similar provision of any state, local or foreign Tax law to relinquish any right to carry back net operating losses. Clearwater shall use commercially reasonable efforts to file an amended Tax Return to carry back such losses to the extent
permitted by law, and Clearwater shall pay to RetainCo the amount of any refund of Taxes so obtained, net of Clearwater’s reasonable expenses in obtaining such refund. 
  

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 Section 4.4 Continuing Covenants. 
 (a) In General. Clearwater and the Potlatch Entities (1) shall not take any action reasonably expected to result in an
increased Tax liability to the other, a reduction in a Tax Asset of the other or an increased liability to the other under this Agreement and (2) shall take any action reasonably requested by the other that would reasonably be expected to
result in a Tax Benefit or avoid a Tax Detriment to the other, provided that such action does not result in any additional cost not fully compensated for by the requesting party. The Parties hereby acknowledge that the preceding sentence is not
intended to limit, and therefore shall not apply to, the rights of the parties with respect to matters otherwise covered by this Agreement. 
 (b) Spin-off Tax Liabilities. 
 (i) For 24 months following the Closing Date (the
“Restricted Period”), Clearwater shall not (A) redeem or otherwise repurchase any capital stock other than pursuant to open market stock repurchase programs meeting the requirements of Section 4.05(1)(b) of Rev. Proc.
96-30, 1996-1 C.B. 696, or (B) enter into any agreements or arrangements with respect to transactions or events (including, but not limited to, capital contributions or acquisitions, entering into any partnership or joint venture arrangements,
stock issuances, stock acquisitions, option grants, or a series of such transactions or events (but excluding the Spin-offs)), in the case of each of clauses (A) and (B) above that, if considered part of a plan that includes the Internal
Spin-off or the Public Spin-off would result in one or more persons acquiring, directly or indirectly, stock of Clearwater representing a “50-percent or greater interest” therein within the meaning of section 355(d)(4) of the Code (any act
inconsistent with the intended tax-free treatment of the Spin-offs described in the Tax Opinion and any act described in clauses (A) and (B) above, collectively, a “Prohibited Act”). Notwithstanding the foregoing, the
following shall not be considered a Prohibited Act: (x) the issuance of any compensatory stock or compensatory stock options, the issuance of any stock pursuant to any equity award, compensatory option, or restricted stock unit, or the
repurchase of any restricted stock, if such issuance or repurchase satisfies the conditions of Treasury Regulation § 1.355-7(d)(8)(i); or (y) the issuance of stock to a retirement plan qualified under section 401(a) or 403(a) of the Code
in a transaction that satisfies the requirements of Treasury Regulation § 1.355-7(d)(9). 
 (ii) Notwithstanding the
foregoing, Clearwater may take any of the Prohibited Acts, subject to Section 4.1, if Clearwater (A) first obtains (at its expense) an opinion in form and substance reasonably acceptable to the Potlatch Entities of a nationally recognized
law firm or accounting firm reasonably acceptable to the Potlatch Entities, which opinion may be based on usual and customary factual representations, or (B) obtains a supplemental ruling from the IRS, in each case that such Prohibited Act(s),
and any transaction related thereto, will not affect (x) the qualification of the Spin-offs under section 355 and section 368(a)(1)(D) of the Code and (y) the nonrecognition of gain to Potlatch or to Clearwater in the Spin-offs. Clearwater
may also take any of the Prohibited 

  

 12 

 
Acts, subject to Section 4.1, with the written consent of Potlatch in Potlatch’s sole and absolute discretion. During the Restricted Period,
Clearwater shall provide, and shall cause its Affiliates to provide, all information reasonably requested by Potlatch relating to any transaction involving an acquisition (directly or indirectly) of Clearwater’s stock within the meaning of
section 355(e) of the Code. The Parties acknowledge that the payment of monetary compensation would not be an adequate remedy for a breach of the obligations described in the Prohibited Acts, and Clearwater consents to the issuance and entry of an
injunction to prevent a breach of the obligations contained in the Prohibited Acts, subject to the waiver and consent described in the preceding sentence. 
 (iii) Notwithstanding anything in this Agreement to the contrary, Clearwater shall be responsible for, and shall indemnify and hold the Potlatch Entities harmless from, any Spin-off Taxes resulting from any Prohibited
Act taken by Clearwater or any of its Affiliates, regardless of whether the exception contained in Section 4.4(b)(ii) is satisfied with respect to such act. 
 Section 4.5 Allocation of Tax Assets. Potlatch and Clearwater shall cooperate in determining the allocation of any Tax Assets or Tax liabilities among the Parties. In the absence of controlling legal authority
or unless otherwise provided under this Agreement, Tax Assets or Tax liabilities shall be allocated to the legal entity that incurred the cost or burden associated with the creation of such Tax Assets or Tax liabilities. 
 ARTICLE V 
 INDEMNIFICATION

 Section 5.1 Generally. The Potlatch Entities shall jointly and severally indemnify Clearwater and its directors, officers
and employees, and hold them harmless from and against any and all Taxes or Tax deficiencies for which any Potlatch Entity is liable under this Agreement and any loss, cost, damage or expense, including reasonable attorneys’ fees and costs,
that are attributable to, or result from the failure of any Potlatch Entity or any director, officer or employee to make any payment required to be made under this Agreement. Clearwater shall indemnify the Potlatch Entities and their respective
directors, officers and employees, and hold them harmless from and against any and all Taxes or Tax deficiencies for which Clearwater is liable under this Agreement and any loss, cost, damage or expense, including reasonable attorneys’ fees and
costs, that are attributable to, or result from, the failure of Clearwater or any director, officer or employee to make any payment required to be made under this Agreement. 
 Section 5.2 Inaccurate, Incomplete or Untimely Information. The Potlatch Entities shall jointly and severally indemnify Clearwater and its
directors, officers and employees, and hold them harmless from and against any loss, cost, damage, fine, penalty, or other expense of any kind attributable to the negligence of the Potlatch Entities in supplying Clearwater with inaccurate,
incomplete or untimely information, in connection with the preparation of any Tax Return. Clearwater shall indemnify the Potlatch Entities and their respective directors, officers and employees, and hold them harmless from and against any loss,
cost, damage, fine, penalty, or other expense of any kind attributable to the negligence of Clearwater in supplying any Potlatch Entity with inaccurate, incomplete or untimely information, in connection with the preparation of any Tax Return.

  

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 Section 5.3 Adjustments to Payments. Any party that is entitled to receive a payment (the
“Indemnitee”) under this Agreement from another party (the “Indemnifying Party”) with respect to any Taxes, losses, costs, damages or expenses suffered or incurred by the Indemnitee (an “Indemnified
Loss”) shall pay to such Indemnifying Party, or the Indemnifying Party shall pay to the Indemnitee, as applicable, an amount equal to the difference between any “Tax Saving Amount” actually realized by the Indemnitee in the year
of the payment and the amount of the Indemnified Loss. For purposes of this Section 5.3, the Tax Saving Amount shall equal the amount by which the Income Taxes of the Indemnitee or any of its affiliates are reduced (including, without
limitation, through the receipt of a refund, credit or otherwise), plus any related interest received by the Indemnitee (net of Tax) from a Taxing Authority, as a result of claiming as a deduction or offset on any relevant Tax Return amounts
attributable to an Indemnified Loss (the “Indemnifiable Loss Deduction”). 
 Section 5.4 Reporting of Indemnifiable
Loss. In the event that an Indemnitee incurs an Indemnified Loss, such Indemnitee shall claim as a deduction or offset on any relevant Tax Return (including, without limitation, any claim for refund) such Indemnified Loss to the extent such
position is supported by “substantial authority” (within the meaning of Section 1.6662-4(d) of the Treasury Regulations) with respect to United States federal, state and local Tax Returns or has similar appropriate authoritative
support with respect to any Tax Return other than a United States federal, state or local Tax Return. Except as otherwise provided in this Agreement, the Indemnitee shall have primary responsibility for the preparation of its Tax Returns and
reporting thereon such Indemnifiable Loss Deduction; provided, that the Indemnitee shall consult with, and provide the Indemnifying Party with a reasonable opportunity to review and comment on the portion of the Indemnitee’s Tax Return
relating to the Indemnified Loss. If a Dispute arises between the Indemnitee and the Indemnifying Party as to whether there is “substantial authority” (with respect to United States federal, state and local Tax Returns) or similar
appropriate authoritative support (with respect to any Tax Return other than a United States federal, state or local Tax Return) for the claiming of an Indemnifiable Loss Deduction, such Dispute shall be resolved in accordance with the principles
and procedures set forth in Section 8.3. Potlatch and Clearwater shall act in good faith to coordinate their Tax Return filing positions with respect to the taxable periods that include an Indemnifiable Loss Deduction. There shall be an
adjustment to any Tax Saving Amount calculated under Section 5.3 hereof in the event of an Audit which results in a Final Determination that increases or decreases the amount of the Indemnifiable Loss Deduction reported on any relevant Tax
Return of the Indemnitee. The Indemnitee shall promptly inform the Indemnifying Party of any such Audit and shall attempt in good faith to sustain the Indemnifiable Loss Deduction at issue in the Audit. Upon receiving a written notice of a Final
Determination in respect of an Indemnifiable Loss Deduction, the Indemnitee shall redetermine the Tax Saving Amount attributable to the Indemnifiable Loss Deduction under Section 5.3 hereof, taking into account the Final Determination (the
“Restated Tax Saving Amount”). If the Restated Tax Saving Amount is greater than the Tax Saving Amount, the Indemnitee shall promptly pay the Indemnifying Party an amount equal to the difference between such amounts. If the Restated
Tax Saving Amount is less than the Tax Saving Amount, then the Indemnifying Party shall pay to the Indemnitee an amount equal to the difference between such amounts promptly after receipt of written notice setting forth the amount due and the
computation thereof. 
  

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 Section 5.5 No Indemnification for Tax Items. Except as otherwise provided in Section 5.6,
nothing in this Agreement shall be construed as a guarantee of the existence or amount of any loss, credit, carryforward, basis or other Tax Item, whether past, present or future, of any Party. 
 Section 5.6 REIT Status. The Parties acknowledge that Potlatch intends to continue to qualify as a real estate investment trust within the meaning
of section 856 of the Code (a “REIT”). Notwithstanding anything to the contrary in this Agreement Clearwater shall use its best efforts to avoid taking any action that could reasonably be expected to cause Potlatch to fail to
qualify as a REIT for any taxable year. 
 Section 5.7 Double Recovery. Notwithstanding anything herein to the contrary, no party
shall be entitled to indemnification hereunder for any amount to the extent such party has otherwise been reimbursed for such amount. 
 ARTICLE VI 
 PAYMENTS 
 Section 6.1 In General. Except as provided in Section 6.6, in the event that one party (the “Owing Party”) is required to make a payment to another party (the “Owed
Party”) pursuant to this Agreement, then such payments shall be made according to this Article VI. All payments shall be made to the Owed Party or to the appropriate Taxing Authority as specified by the Owed Party within the time prescribed
for payment in this Agreement, or if no period is prescribed, within twenty (20) days after delivery of written notice of payment owing together with a computation of the amounts due. 
 Section 6.2 Treatment of Payments. Unless otherwise required by any Final Determination, the parties agree that any payments made by one party to
another party (other than payments of interest pursuant to Section 6.5 and payments of After Tax Amounts pursuant to Section 6.4) pursuant to this Agreement shall be treated for all Tax and financial accounting purposes as nontaxable
payments (dividend distributions or capital contributions, as the case may be) made immediately prior to the Spin-offs and, accordingly not includible in the taxable income of the recipient. 
 Section 6.3 Prompt Performance. All actions required to be taken by any party under this Agreement shall be performed within the time prescribed
for performance in this Agreement, or if no period is prescribed, such actions shall be performed promptly. 
 Section 6.4 After Tax
Amounts. If pursuant to a Final Determination it is determined that the receipt or accrual of any payment made under this Agreement (other than payments of interest pursuant to Section 6.5) is subject to any Tax, the party making such
payment shall be liable for (a) the After Tax Amount with respect to such payment and (b) interest at the rate described in Section 6.5 on the amount of such Tax from the date such Tax 

  

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accrues through the date of payment of such After Tax Amount. A party making a demand for a payment pursuant to this Agreement and for a payment of an After
Tax Amount with respect to such payment shall separately specify and compute such After Tax Amount. However, a party may choose not to specify an After Tax Amount in a demand for payment pursuant to this Agreement without thereby being deemed to
have waived its right subsequently to demand an After Tax Amount with respect to such payment. 
 Section 6.5 Interest. Payments
pursuant to this Agreement that are not made within the period prescribed in this Agreement (the “Payment Period”) shall bear interest for the period from and including the date immediately following the last date of the Payment
Period through and including the date of payment at a per annum rate equal to the prime rate as published in The Wall Street Journal on the last day of such Payment Period, plus two percent (2%). Such interest shall be payable at the same
time as the payment to which it relates and shall be calculated on the basis of a year of 365 days and the actual number of days for which due. 
 Section 6.6 REIT Savings. 
 (a) REIT Savings Escrow. In the event that Potlatch shall determine that
any payment provided for under this Agreement could reasonably be expected to give rise to a successful challenge to Potlatch’s status as a REIT, Potlatch may provide notice to Clearwater no less than fifteen (15) business days before the
date on which such payment is to be made that Potlatch intends to apply this Section 6.6 to the payment (a “REIT Savings Escrow Notice”). Upon receipt of a valid REIT Savings Escrow Notice and at such time as the payment is
required under this Agreement, Clearwater shall deposit such payment into escrow with an escrow agent approved by Potlatch, which approval shall not be unreasonably withheld, and pursuant to a written escrow agreement (the “Escrow
Agreement”) reflecting the terms set forth in this Section 6.6 and otherwise reasonably acceptable to each of Potlatch and the escrow agent. 
 (b) Escrow Agreement. The Escrow Agreement shall provide that the payment in escrow or the applicable portion thereof shall be released to Potlatch on an annual basis based upon the delivery by Potlatch to the
escrow agent of any one or a combination of the following: (i) a letter from Potlatch’s independent tax advisors indicating the maximum amount that can be paid by the escrow agent to Potlatch without causing Potlatch to fail to meet the
requirements of Sections 856(c)(2) and (3) of the Code for the applicable taxable year of Potlatch determined as if the payment of such amount did not constitute income described in sections 856(c)(2)(A)-(H) or 856(c)(3)(A)-(I) of the
Code (such income, “Qualifying Income”), in which case the escrow agent shall release to Potlatch such maximum amount stated in the advisor’s letter, or (ii) a letter from Potlatch’s counsel indicating that Potlatch
received a ruling from the IRS holding that the receipt by Potlatch of such payment would either constitute Qualifying Income or would be excluded from gross income within the meaning of sections 856(c)(2) and (3) of the Code (or alternatively,
Potlatch’s outside counsel or accountant has rendered a legal opinion or a tax opinion, respectively, to the effect that the receipt by Potlatch of such payment would either constitute Qualifying Income or would be excluded from gross income
within the meaning of sections 856(c)(2) and (3) of the Code), in which case the escrow agent shall release to Potlatch the remainder of such payment. The Escrow Agreement shall also provide that Potlatch shall bear all costs and expenses under
the Escrow Agreement and that any portion of any payment held in escrow for ten (10) years shall be released by the escrow agent to 

  

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Clearwater. Clearwater shall not be a party to the Escrow Agreement and shall not bear any liability, cost or expense resulting directly or indirectly from
the Escrow Agreement (other than any Taxes associated with the release of funds to Clearwater from the escrow). Potlatch shall fully indemnify Clearwater and hold Clearwater harmless from and against any such liability, cost or expense (other than
any Taxes associated with the release of funds to Clearwater from the escrow). 
 (c) Cooperation. Clearwater shall
cooperate in good faith to amend this Section 6.6 at the reasonable request of Potlatch in order to (x) maximize the portion of such payment that may be distributed to Potlatch hereunder without causing Potlatch to fail to meet the
requirements of sections 856(c)(2) and (3) of the Code, (y) improve Potlatch’s chances of securing a favorable ruling described in this Section 6.6 or (z) assist Potlatch in obtaining a favorable legal opinion from its
outside counsel or accountant as described in this Section 6.6. Potlatch shall reimburse Clearwater for the reasonable costs and expenses of such cooperation. 
 ARTICLE VII 
 TAX PROCEEDINGS 
 Section 7.1 Audits. The party responsible for preparing and filing a Tax Return pursuant to Article I (the “Filing Party”) shall
have the exclusive right to control, contest, and represent the interests of any Party in any Audit relating to such Tax Return and, in its reasonable discretion, to resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted
or assessed in connection with or as a result of any such Audit. The Filing Party’s rights shall extend to any matter pertaining to the management and control of an Audit, including execution of waivers, choice of forum, scheduling of
conferences and the resolution of any Tax Item. Any costs incurred in handling, settling, or contesting an Audit shall be borne by the Filing Party. The Filing Party shall, to the extent such information is available, advise the non-Filing Party of
any significant Tax issue subject to an Audit by any Taxing Authority, and shall keep the non-Filing Party informed with respect to any contest, compromise or settlement thereof. 
 Section 7.2 Notice. Within twenty (20) business days after a party receives a written notice or other information from a Taxing Authority of
the existence of a Tax issue that may give rise to an indemnification obligation under this Agreement, such party shall notify the other party of such issue, and thereafter shall promptly forward to the other party copies of notices and material
communications with any Taxing Authority relating to such issue. The failure of one party to notify the other party of any matter relating to a particular Tax for a taxable period or to take any action specified in this Agreement shall not relieve
such other party of any liability and/or obligation which it may have under this Agreement with respect to such Tax for such taxable period, except to the extent that such other party’s rights under this Agreement are materially prejudiced by
such failure. 
 Section 7.3 Remedies. Clearwater agrees that no claim against any Potlatch Entity and no defense to Clearwater’s
liabilities or obligations to any Potlatch Entity under this Agreement shall arise from the resolution by Potlatch of any deficiency, claim or adjustment relating to the redetermination of any Tax Item of any Potlatch Entity. 
  

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 Section 7.4 Control of Spin-off Tax Proceedings. Potlatch shall have the exclusive right and sole
discretion to control, contest, and represent the interests of any Party in any Audits relating to Spin-off Taxes and to resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result
of any such Audit. Potlatch’s rights shall extend to any matter pertaining to the management and control of such Audit, including execution of waivers, choice of forum, scheduling of conferences and the resolution of any Tax Item. Clearwater
shall be entitled through counsel of its choosing and reasonably acceptable to Potlatch to monitor the conduct or settlement of any such Audit by Potlatch, and Potlatch shall provide Clearwater and such counsel with such information as either of
them may reasonably request (which request may be general or specific), but all costs and expenses incurred in such monitoring shall be borne by Clearwater. Clearwater may assume sole control of any Audits relating to Spin-off Taxes if it
acknowledges in writing that it has sole liability for any Spin-off Taxes that might arise in such Audit. 
 ARTICLE VIII 

MISCELLANEOUS PROVISIONS 
 Section 8.1 Cooperation and Exchange of Information. 
 (a) Cooperation. Potlatch and Clearwater shall
each cooperate fully (and each shall cause its respective Affiliates to cooperate fully) with all reasonable requests from another Party hereto, or from an agent, representative or advisor to such party, in connection with the preparation and filing
of Tax Returns, claims for refund, and Audits concerning issues or other matters covered by this Agreement. Such cooperation shall include, without limitation: 
 (i) the retention until the expiration of the applicable statute of limitations, and the provision upon request, of Tax Returns, books,
records (including information regarding ownership and Tax basis of property), documentation and other information relating to the Tax Returns, including accompanying schedules, related work papers, and documents relating to rulings or other
determinations by Taxing Authorities; 
 (ii) the execution of any document that may be reasonable in connection with any Tax
Proceeding, or the filing of a Tax Return or refund claim by Clearwater or a Potlatch Entity, including certification, to the best of a Party’s knowledge, of the accuracy and completeness of the information it has supplied or any power of
attorney required by the applicable Taxing Authority to be provided by one Party to another Party for the performance by such other Party of acts required or permitted under this Agreement; and 
  

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 (iii) the use of the Party’s reasonable best efforts to obtain any documentation
that may be necessary or reasonably helpful in connection with any of the foregoing. Each party shall use commercially reasonable efforts to comply in connection with the foregoing matters within ten (10) business days or such shorter period as
may be required by the applicable Taxing Authority or otherwise in connection with the Tax Proceeding. Each party shall make its employees and facilities available on a reasonable and mutually convenient basis in connection with the foregoing
matters. 
 (b) Failure to Perform. If a party materially fails to comply with any of its obligations set forth in
Section 8.1(a) upon reasonable request and notice by the other party, and such failure results in the imposition of additional Taxes, the non-performing party shall be liable in full for such additional Taxes notwithstanding anything to the
contrary in this Agreement. 
 Section 8.2 Dispute Resolution. Any dispute, controversy or claim arising out of or relating to this
Agreement or the breach, termination or validity hereof (“Dispute”) which arises between Clearwater and any Potlatch Entity shall first be negotiated between the appropriate senior executives of Potlatch and Clearwater who shall have the
authority to resolve the matter. Such executives shall meet to attempt in good faith to negotiate a resolution of the Dispute prior to pursuing other available remedies, within ten (10) days of receipt by Potlatch or Clearwater, as applicable,
of notice of a Dispute, which date of receipt shall be referred to herein as the “Dispute Resolution Commencement Date.” If the senior executives are unable to resolve the Dispute within thirty (30) days from the Dispute Resolution
Commencement Date, then Potlatch and Clearwater shall jointly retain a nationally recognized Independent Firm to resolve the Dispute. If Potlatch and Clearwater cannot mutually agree upon an Independent Firm, then any Dispute which Potlatch and
Clearwater cannot resolve within thirty (30) days from the Dispute Resolution Commencement Date shall be resolved by a nationally recognized accounting firm selected by the American Arbitration Association; provided, that the American
Arbitration Association shall not select any accounting firm that is then providing auditing or tax services to any of the Parties. The accounting firm selected by the American Arbitration Association shall act as an arbitrator to resolve all points
of disagreement, and its decision shall be final and binding upon all parties involved. Any such arbitration shall be conducted in Spokane, Washington. Following the decision of such firm, Potlatch and Clearwater shall each take or cause to be taken
any action necessary to implement the decision of such firm. Potlatch and Clearwater shall share equally the administrative costs of the arbitration and such firm’s fees and expenses, and shall each bear their respective other costs and
expenses related to the arbitration. 
 Section 8.3 Notices. Notices, offers, requests or other communications required or permitted
to be given by any party pursuant to the terms of this Agreement shall be given in writing to Potlatch or Clearwater, as applicable, to the following addresses or facsimile numbers: 
 If to any Potlatch Entity, at: 
 c/o Potlatch
Corporation 
 601 W. First Avenue, Ste. 1600 
 Spokane, Washington 99201 
 Attention: General Counsel 
  

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 with a copy to Potlatch’s tax department at the same address. 
 If to Clearwater, at: 
 601 West Riverside
Avenue 
 Suite 1100 
 Spokane,
Washington 99201 
 Attention: General Counsel 
 or to such other address or facsimile number as the party to whom notice is given may have previously furnished to the other in writing as provided herein. Any notice involving non-performance, termination, or renewal shall be sent by hand
delivery, recognized overnight courier or, within the United States, may also be sent via certified mail, return receipt requested. All other notices may also be sent by facsimile, confirmed by first class mail. All notices shall be deemed to have
been given when received, if hand-delivered; when receipt is confirmed, if transmitted by facsimile or similar electronic transmission method; one (1) working day after it is sent, if sent by recognized overnight courier; and three
(3) days after it is postmarked, if mailed by first class mail or certified mail, return receipt requested, with postage prepaid. 
 Section 8.4 Changes in Law. 
 (a) Any reference to a provision of the Code, Treasury Regulations, or a law of
another jurisdiction shall include a reference to any applicable successor provision or law. 
 (b) If, due to any change in
applicable law or regulations or their interpretation by any court of law or other governing body having jurisdiction subsequent to the date specified in the preamble to this Agreement, performance of any provision of this Agreement or any
transaction contemplated hereby shall become impracticable or impossible, the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such provision. 
 Section 8.5 Confidentiality. Each of the parties hereto shall hold and cause its directors,
officers, employees, advisors and consultants to hold in strict confidence, unless compelled to disclose by judicial or administrative process or, in the opinion of its counsel, by other requirements of law, all information (other than any such
information relating solely to the business or affairs of such party) concerning the other parties hereto furnished it by such other party or its representatives pursuant to this Agreement (except to the extent that such information can be shown to
have been (1) in the public domain through no fault of such party or (2) later lawfully acquired from other sources not under a duty of confidentiality by the party to which it was furnished), and no party shall release or disclose such
information to any other person, except its directors, officers, employees, auditors, attorneys, financial advisors, bankers or other consultants who shall be advised of and agree to be bound by the provisions of this Section 8.5. Each of the
parties hereto shall be deemed to have satisfied its obligation to hold confidential information concerning or supplied by the other parties if it exercises the same care as it takes to preserve confidentiality for its own similar information.

  

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 Section 8.6 Assignment. This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this
Agreement. This Agreement may be enforced separately by Clearwater and each Potlatch Entity. No party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other parties hereto, and any such
assignment shall be void; provided, that Clearwater and each Potlatch Entity may assign this Agreement to a successor entity in conjunction with such party’s reincorporation. 
 Section 8.7 Affiliates. Potlatch shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations
set forth herein to be performed by any Potlatch Entity; provided, that if it is contemplated that a Potlatch Entity may cease to be a controlled, directly or indirectly, by Potlatch as a result of a transfer of its stock or other ownership
interests to a third party in exchange for consideration in an amount approximately equal to the fair market value of the stock or other ownership interests transferred and such consideration is not distributed outside of the group of Potlatch
Entities to the shareholders of Potlatch, then Potlatch shall request in writing no later than thirty (30) days prior to such cessation that Clearwater execute a release of such Potlatch Entity from its obligations under this Agreement
effective as of such transfer, provided that Potlatch shall succeed to the rights of such Potlatch Entity under this Agreement and shall have confirmed in writing the obligations of Potlatch and the remaining Potlatch Entities with respect to their
own obligations and the obligations of the departing Potlatch Entity, and that such departing Potlatch Entity shall have executed a release of any rights it may have against Clearwater by reason of this Agreement. 
 Section 8.8 Authority. Each of the parties hereto represents, on behalf of itself and its affiliates, to the other that (a) it has the
corporate power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other action, (c) it has duly and
validly executed and delivered this Agreement and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors’ rights generally and general equity principles. 
 Section 8.9 Entire Agreement. This
Agreement, the Separation Agreement, the other Ancillary Agreements and the Exhibits and Schedules attached hereto and thereto, constitute the entire agreement between the parties with respect to the subject matter hereof and shall supersede all
prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof. 
 Section 8.10
Governing Law and Jurisdiction. This Agreement shall be construed in accordance with, and all Disputes hereunder shall be governed by, the laws of the State of Washington, excluding its conflict of law rules. 
  

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 Section 8.11 Counterparts. This Agreement, including the Schedules and Exhibits hereto, and the
other documents referred to herein, may be executed in counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement. 
 Section 8.12 Severability. If any term or other provision of this Agreement or the Schedules or Exhibits attached hereto is determined by a
non-appealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in
full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby
are fulfilled to the fullest extent possible. 
 Section 8.13 Parties in Interest. This Agreement, including the Schedules and
Exhibits hereto, and the other documents referred to herein, shall be binding upon the Parties, inure solely to the benefit of Clearwater and the Potlatch Entities and their respective permitted assigns, and nothing in this Agreement, express or
implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement. 
 Section 8.14 Failure or Indulgence Not Waiver. No failure or delay on the part of any party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of
any representation, warranty or agreement herein, nor shall any failure to exercise, or any single or partial exercise, of any such right preclude other or further exercise thereof or of any other right. 
 Section 8.15 Setoff. All payments to be made by any party under this Agreement may be netted against payments due to such party under this
Agreement, but otherwise shall be made without setoff, counterclaim or withholding, all of which are hereby expressly waived. 
 Section 8.16
Amendments. No change or amendment will be made to this Agreement except by an instrument in writing signed on behalf of each of the parties to this Agreement. 
 Section 8.17 Interpretation. When a reference is made in this Agreement to an Article or a Section, or to an Exhibit or a Schedule, such reference shall be to an Article or Section of, or an Exhibit or Schedule
to, this Agreement unless otherwise indicated. The headings contained in this Agreement, in any Exhibit or Schedule, and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. Any capitalized term used in any Schedule or Exhibit but not otherwise defined therein, shall have the meaning assigned to such term in this Agreement. 
 [SIGNATURE PAGE FOLLOWS] 
  

 22 

 WHEREFORE, the parties have signed this Tax Sharing Agreement effective as of the date first set forth
above. 
  

			
	POTLATCH CORPORATION
	
	 
	Name:	 	
	Title:	 	
	
	POTLATCH FOREST HOLDINGS, INC.
	
	 
	Name:	 	
	Title:	 	
	
	POTLATCH LAND & LUMBER, LLC
	
	 
	Name:	 	
	Title:	 	
	
	CLEARWATER PAPER CORPORATION
	
	 
	Name:	 	
	Title:	 	

  

 23Employment Agreement with Gordon L. Jones

 Exhibit 10.10 
 [Letterhead of Potlatch] 
 PERSONAL & CONFIDENTIAL 
 July 28, 2008 
 Mr. Gordon L. Jones 
 Dear Gordon: 
 We are pleased to offer you a leadership role at Potlatch
Corporation (“Potlatch”) and, subsequent to the anticipated spin-off of Potlatch’s current pulp-based manufacturing facilities (the “Spin-Off”), with the new company formed as a result (“SpinCo”). This letter
agreement (the “Agreement”) sets forth important terms and conditions pertaining to your employment and supersedes in its entirety that prior agreement dated July 3, 2008. 
 1. Term of Agreement: This Agreement shall be effective as of July 1, 2008, and, unless terminated earlier in accordance with its terms, shall remain in effect for three (3) years following the
effective date of the Spin-Off. 
 2. Position: You will be employed with Potlatch prior to the
effective date of the Spin-Off in a capacity designed to prepare you to serve as President and Chief Executive Officer of SpinCo. As of the effective date of the Spin-Off, your employment with Potlatch shall cease automatically and you will become
an employee of SpinCo, serving as its President and Chief Executive Officer.1 In addition, the Board of Directors of Potlatch shall use its best
efforts to secure your election to SpinCo’s Board of Directors. 
 3. Base Salary: Your initial base salary shall be $625,000 on an annualized
basis, payable in accordance with the Company’s regular payroll practices, as established from time to time. During the term of this Agreement, your salary shall be reviewed on at least an annual basis by, and may be increased but not decreased
at the discretion of, the appropriate committee of the Board of Directors of the Company (the “Board”). The review of your base salary will occur at the same time as the review for other senior executives of the Company and in no event
will the initial review of your salary be greater than twelve (12) months after you commence employment with Potlatch. 
  
  

	 1
	 You will not be eligible for any severance payments or benefits as a result of your separation from Potlatch to become
employed by SpinCo, and, as of the Spin-Off, SpinCo shall assume all rights and obligations of Potlatch under this Agreement. For purposes of this Agreement, the word “Company” shall mean the employing entity at the time of any relevant
action or obligation, which shall be Potlatch prior to the Spin-Off and SpinCo thereafter. 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
 2
 of 18 
  

 4. Founder’s Grant: Following the Spin-Off and
subject to the approval of the Board of Directors of SpinCo (which will not be withheld unreasonably), you shall be granted an award of restricted stock valued at $500,000 using the method described herein (the “Founder’s Grant”). The
number of shares awarded shall be determined using the ten-day average closing price of SpinCo stock on the New York Stock Exchange (“NYSE”) starting on the 31st day following the Spin-Off. Subject to your continued employment in good standing with SpinCo during the vesting period, the restrictions shall lapse on the shares granted in three (3) equal annual installments,
each consisting of one-third (1/3) of the number of shares originally awarded, commencing on the first anniversary of the original grant date and concluding on the third anniversary thereof. Subject to the terms specified in this Agreement, the
Founder’s Grant shall be made pursuant to SpinCo’s equity incentive plan and shall be governed by the terms of that plan and any applicable grant notice. 
 5. Annual Incentive Award Opportunity: You will be eligible to participate in the Company’s annual
bonus plan for similarly situated executives. Prior to the SpinOff, you will participate in Potlatch’s Management Performance Award Plan (“MPAP”), and your bonus opportunity for 2008 will be prorated based on the number of complete
half months for which you are employed during the 2008 plan year.2 Under the current terms of the MPAP, your target annual bonus will be 70% of your
base salary and any actual bonus will be calculated based on corporate performance, which can range from 0% to 200% of the target bonus opportunity. The terms of the current MPAP also provide for a potential adjustment based on individual
performance, which may be from zero (0) to two (2) times the value of the award as calculated based solely on corporate performance criteria. Subsequent to the Spin-Off, you will participate in SpinCo’s annual bonus plan for similarly
situated executives and will no longer participate in the MPAP. Subject to the terms specified in this Agreement, all awards shall be governed by the terms of, and subject to any conditions established by, the applicable plan. 
 6. Long-Term Incentive Awards: You will be eligible to participate in the Company’s Long-Term Incentive Plan (“LTIP”) beginning in 2009, subject to
the terms and conditions of the LTIP and on a basis at least as favorable as generally applicable to the other senior executives of the Company. Under the current LTIP, the target value of your LTIP award is 100% of your base salary. 
  
  

	 2
	 In other words, the amount of the prorated award will be determined by multiplying the total award by a fraction, the
numerator of which is the number of complete half months during which you have been employed during the plan year and the denominator of which is 24. 

 Mr. Gordon L. Jones 
 July 28, 2008 
 Page 3 of 18 
  

 Actual payout of LTIP awards, which may range from zero
(0) shares to a maximum of two (2) times the target number of shares, will be based on company performance as measured by the methodology determined by the appropriate committee of the Board and will be paid out in shares of Company stock
as soon as practicable following the completion of the applicable performance cycle.3 
 7. Employee Benefits: You will be eligible to participate in Company’s employee welfare, benefit, and retirement plans and programs, including retirement and supplemental retirement plans, on the same
basis as generally applicable to the other senior executives of the Company; provided, however, that the Board will take such action as is necessary to provide you with an additional benefit under the SpinCo Supplemental Retirement Plan which will
make up certain benefits which cannot, by law, be paid to you under the SpinCo Salaried Retirement Plan, to include: (i) any benefit that you have accrued under the Retirement Plan but would otherwise forfeit because you were not fully vested
in such plan at the time you terminated SpinCo employment; and (ii) any benefit that you would have been entitled to under the Retirement Plan had such plan credited, for benefit accrual purposes, all Potlatch service on a retroactive basis.
There will be no applicable pre-existing condition limitation for your medical coverage, which will begin immediately upon your enrollment. Further, you will be eligible for all fringe benefits and perquisites generally available to the other senior
executives of the Company on at least as favorable basis as such other senior executives, and you will be reimbursed for reasonable business expenses per Company policy. In addition, the Company will pay, or reimburse you for, the reasonable
professional fees and related expenses you incur for legal advice in connection with this Agreement. 
 8. Stock Ownership Guidelines: In accordance
with the stock ownership guidelines for SpinCo, you will be required to acquire shares of SpinCo stock equal in value to three (3) times your base salary within five (5) years of the effective date of the Spin-Off, with 20% of the
guideline number of shares being obtained by the first anniversary of the Spin-Off and ownership increasing by an additional 20% of the guideline number of shares each year thereafter until the total guideline is met. To the extent that the
ownership requirements are not met in any given year or the guideline number of shares is not maintained, SpinCo will provide 50% of any annual bonus award in shares of SpinCo stock. SpinCo’s stock ownership guidelines, as may be amended from
time to time, provide further detail as to the schedule for required ownership and which shares are counted toward the stock ownership requirement. 
  
  

	 3
	 The current performance cycle is three (3) years. 

 Mr. Gordon L. Jones 
 July 28, 2008 
 Page 4 of 18 
  

 9. Termination of Employment: The following provisions govern in the event your employment is terminated
during the term of this Agreement. Termination of your employment for any reason whatsoever shall constitute your resignation from the Board of Directors of the Company and resignation as an officer of the Company, its subsidiaries, and its
affiliates. Upon termination for any reason, you shall be paid for all earned but unpaid base salary, any bonus earned under the terms of the governing plan but remaining unpaid for any previously completed performance cycle, and any earned but
unused vacation and will be provided any employee benefits earned but not yet provided under the terms of any applicable plan or program (the “Accrued Obligations”). You may be eligible for severance as provided below, but there will be no
duplication of benefits and severance provided hereunder is in lieu of any severance pay or benefits for which you might otherwise have been eligible under any plan, program, or practice of the Company. To the extent necessary to avoid duplication
of benefits, payments and benefits under this Agreement will be reduced to offset payments or benefits under any other plan, program, or practice. In no event will you be eligible for any of the severance payments or benefits described below unless
and until you return, without revocation, an executed release of claims in a form satisfactory to the Company (the “Release”). 
 (a) Termination by the Company Without Cause or Your Resignation For Good Reason Prior to a Change in Control: If, during the term of this Agreement and prior to a Change in Control, your employment is involuntarily terminated by the
Company without Cause (and for reasons other than your death or Disability) or you resign for Good Reason, all as defined below, you shall be eligible for the following severance benefits upon execution, without revocation, of the Release:

 (i) a prorated bonus under the applicable annual bonus plan for the year in which your separation occurs, which will be
paid at the same time payments are made to other participants and calculated by taking the product of (x) your annual bonus that would have been payable with respect to the fiscal year in which the Date of Termination occurs (determined in
accordance with the terms of the governing plan based on actual corporate performance and provided that such annual bonus shall not be adjusted downward for individual performance) and (y) a fraction, the numerator of which is the number of
days in the fiscal year through the Date of Termination and the denominator of which is 365; 
 (ii) forty-eight
(48) payments each in the amount, before applicable deductions and withholding, equal to 1/24th of your base salary and target bonus as in effect as of the Date of Termination, which payments shall be made on a semimonthly basis in accordance
with the Company’s usual payroll practices for twenty-four (24) months following the Date of Termination; provided, however, that to the extent required to comply with, or to avoid the payment of 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
 5
 of 18 
  

 
penalties under, Section 409A of the Code, as determined by the Company’s outside counsel, such payments shall not begin until six months following
your “separation of service” and the sum of the delayed payments shall be paid in a single sum after six months, with semi-monthly payments commencing thereafter; 
 (iii) for two years after your Date of Termination, the Company shall continue
benefits to you and/or your eligible dependents at least equal to those which would have been provided to them in accordance with the Company’s health plans if your employment had not been terminated or, if more favorable to you, as in effect
generally at any time thereafter with respect to other senior executives of the Company and their eligible dependents;4 provided, however, that if
you become re-employed with another employer and are eligible to receive medical benefits under another employer-provided plan, the health benefit coverage described herein shall cease and, to the extent required to comply with, or to avoid the
payment of penalties under, Section 409A of the Code, as determined by the Company’s outside counsel, you will pay the entire cost of such benefits for the first six months after the Date of Termination and the Company will reimburse you
for the Company’s share of such costs on the six-month anniversary of your “separation from service” as defined in Section 409A of the Code; 
 (iv) all of your vested but unexercised options to acquire Company common stock as of the Date of Termination shall remain exercisable
through the earlier of (A) the original expiration date of the Option, or (B) a date which is three months following the Date of Termination; and 
 (v) all restrictions on any shares granted pursuant to the Founder’s Grant shall lapse as of the Date of Termination. 
 To the extent required to comply with, or to avoid the payment of penalties under, Section 409A, as determined by the Company’s outside counsel, one or more payments under this section 9(a) shall be delayed to the six month
anniversary of the date of your “separation from service,” within the meaning of Section 409A of the Code. 
  
  

	 4
	 Notwithstanding anything in this Agreement to the contrary, if, under applicable law, the continued group health plan
coverage provided for herein is not feasible, you will be paid the cash equivalent of the cost of such coverage, plus an amount to cover any taxes you incur as a result of such payments. Your eligibility to purchase continued health insurance
coverage under COBRA shall run concurrently with the period for which the Company is providing coverage under this subsection. 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
 6
 of 18 
  

 (b) Termination by the Company Without Cause or Your Resignation for Good Reason Following a
Change in Control: If, during the term of this Agreement, and in connection with and within twenty-four (24) months of a Change in Control occurring during the term of this Agreement, your employment is involuntarily terminated by the
Company without Cause (and for reasons other than your death or Disability, as defined below) or you resign for Good Reason, all as defined below, you shall be eligible for the following severance benefits upon execution, without revocation, of the
Release: 
 (i) a prorated bonus under the applicable annual bonus plan for the year in which your separation occurs, which
will be paid at the same time payments are made to other participants and calculated by taking the product of (x) your annual bonus that would have been payable with respect to the fiscal year in which the Date of Termination occurs (determined
in accordance with the terms of the governing plan based on actual corporate performance and provided that such annual bonus shall not be adjusted downward for individual performance) and (y) a fraction, the numerator of which is the number of
days in the fiscal year through the Date of Termination and the denominator of which is 365; 
 (ii) a lump sum payment in the
amount equal, before applicable taxes and deductions, to three (3) times the sum of your base salary and target bonus in effect as of the Date of Termination, which payment shall be made as soon as practicable following your return, without
revocation of the executed Release, but no later than 45 days following your separation from employment; provided, however, that to the extent required to comply with, or to avoid the payment of penalties under, Section 409A of the Code, as
determined by the Company’s outside counsel, such payment shall not be made until six months following your “separation of service;” 
 (iii) for three years after your Date of Termination, the Company shall continue
benefits to you and/or your eligible dependents at least equal to those which would have been provided to them in accordance with the Company’s health plans if your employment had not been terminated or, if more favorable to you, as in effect
generally at any time thereafter with respect to other senior executives of the Company and their eligible dependents;5 provided, however, that if
you become re-employed with another employer and are eligible to receive health benefits under another employer-provided plan, the health benefits described herein shall cease and, to the extent required to comply with, or to avoid the payment of
penalties under, Section 409A, as determined by the Company’s outside counsel, you will pay the entire cost of such benefits for the first six months after the Date of Termination and the Company will reimburse you for the Company’s
share of such costs on the six-month anniversary of your “separation from service” as defined in Section 409A of the Code; 
  
  

	 5
	 Notwithstanding anything in this Agreement to the contrary, if, under applicable law, the continued group health plan
coverage provided for herein is not feasible, you will be paid the cash equivalent of the cost of such coverage, plus an amount to cover any taxes you incur as a result of such payments. Your eligibility to purchase continued health insurance
coverage under COBRA shall run concurrently with the period for which the Company is providing coverage under this subsection. 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
 7
 of 18 
  

 (iv) any options to acquire Company common stock granted to you at least six
(6) months prior to the effective date of the Change in Control shall become immediately vested and exercisable as of the Date of Termination; 
 (v) all of your vested but unexercised options to acquire Company common stock as of the Date of Termination shall remain exercisable through the earlier of (A) the original expiration date of the Option, or
(B) one (1) year after the Date of Termination; 
 (vi) all restrictions on restricted stock awards, including the
Founder’s Grant, shall lapse; and 
 (vii) a pro-rata portion of performance share awards, based on the number of full
months of employment completed in the performance cycle as of the Date of Termination and actual results for the performance period, paid out at the time payments are made to other participants. 
 To the extent required to comply with, or to avoid the payment of penalties under, Section 409A, as determined by the Company’s outside counsel, one or more
payments under this Section 9(b) shall be delayed to the six month anniversary of the date of your “separation from service,” within the meaning of Section 409A of the Code. 
 (c) Termination by the Company For Cause or Your Resignation Without Good Reason: If, during the term of this Agreement, your employment is
involuntarily terminated by the Company for Cause or you resign without Good Reason (and not as a result of death or Disability), this Agreement shall terminate without further obligations to you, other than payment of the Accrued Obligations.

 (d) Termination Due to Death or Disability. 
 (i) Your employment shall terminate automatically upon your death during the term of this Agreement. Further, if the Company determines in
good faith that you have a Disability (as defined below) during the term of this Agreement, the Company may give you written notice of its intention to terminate your employment. In such event, your employment with the Company shall terminate
effective on the 30th day after receipt of such written notice by you (the “Disability Effective Date”), provided that, within the 30 days after such receipt, you shall not have returned to full-time performance of your duties. For
purposes of this Agreement, “Disability” shall have the meaning set 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
 8
 of 18 
  

 
forth in Code section 409A(a)(2)(C). If no such statutory definition is in effect, “Disability” shall mean your inability, as determined by the
Board, to perform the essential functions of your regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which has lasted {or can reasonably be expected to last) for
a period of six consecutive months. 
 (ii) If your employment is terminated by reason of your death or Disability during the
term of this Agreement, this Agreement shall terminate without further obligations to you or your estate, beneficiaries or legal representatives under this Agreement, other than for payment of the Accrued Obligations and a prorated bonus under the
applicable annual bonus plan for the year in which your separation occurs, which will be paid at the same time payments are made to other participants and calculated by taking the product of (x) your annual bonus that would have been payable
with respect to the fiscal year in which the Date of Termination occurs (determined at the end of such year based on actual performance results through the end of such year and provided that such annual bonus shall not be adjusted downward for
individual performance) and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination and the denominator of which is 365. Further, all restrictions on the shares granted pursuant to
the Founder’s Grant shall lapse as of the Date of Termination in the event of termination of your employment by reason of your death or Disability during the term of this Agreement. 
 (e) Notice of Termination. Any termination by the Company for Cause, or by you for Good Reason, shall be communicated by Notice of Termination to
the other party hereto given in accordance with this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon,
(ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated and (iii) specifies the termination date. The failure
by you or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of you or the Company, respectively, hereunder or preclude you or the Company,
respectively, from asserting such fact or circumstance in enforcing your or the Company’s rights hereunder. 
 (f) Date of
Termination: “Date of Termination” means (i) if your employment is terminated by the Company for Cause, or by you for Good Reason, the date of receipt of the Notice of Termination or a date within 30 days after receipt of the
Notice of Termination, as specified in such notice, (ii) if your employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies you of such 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
 9
 of 18 
  

 
termination or a date within 60 days after receipt of the Notice of Termination, as specified in such notice, (iii) if your employment is terminated by
reason of death or Disability, the Date of Termination shall be the date of your death of or the Disability Effective Date, as the case may be, and (iv) if your employment is terminated by you without Good Reason, the Date of Termination shall
be no fewer than 60 days following the Company’s receipt of the Notice of Termination. 
 (g) Definition of Cause: For purposes
of this Agreement, “Cause” shall mean: 
 (i) the engaging by you in unfair competition with the Company or any a
subsidiary; 
 (ii) your inducement of any customer of the Company or a subsidiary to breach any contract with the Company or
such subsidiary; 
 (iii) your unauthorized disclosure of any of the secrets or confidential information of the Company or a
subsidiary; 
 (iv) commission of an act of embezzlement, fraud or theft with respect to the property of the Company or a
subsidiary; 
 (v) conduct on your part which is not in good faith and which directly results in material loss, damage or
injury to the business, reputation or employees of the Company or a subsidiary; or 
 (vi) your conviction of or entering of a
plea of nolo contendere to a felony. 
 Your separation from employment shall not be deemed to be for Cause unless and until there shall have been
delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board of the Company (excluding you, if you are a member of the Board), finding that, in the good faith opinion
of such Board, you are guilty of the conduct described above, and specifying the particulars thereof in detail. Such finding shall be effective to terminate your employment for Cause only if you were provided reasonable notice of the proposed action
and were given an opportunity, together with counsel, to be heard by the Board. 
 (h) Definition of Good Reason. For purposes of this
Agreement, “Good Reason” shall mean the occurrence of any one or more of the following events without your consent: 
 (i) the Company’s assignment to you of any duties inconsistent in any material respect with your position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as in effect 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
 10
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on the date you commence employment or, following the Spin-Off, your role as President and Chief Executive Officer of SpinCo, or any other action by the
Company which results in a diminution in such position, authority, duties or responsibilities or as a result of which you no longer have a position substantially equivalent to your position on the date you commence employment or, following the
Spin-Off, your role as President and Chief Executive Officer of SpinCo, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof
given by you; 
 (ii) a 10% or greater reduction by the Company, other than in connection with an across-the-board reduction
applicable to other senior executives of the Company, in your base salary and/or target bonus, and/or target long-term incentive opportunity, all as in effect during your first year of employment with the Company or as the same may be increased from
time to time; 
 (iii) a requirement by Potlatch that you be based at
any office or location other than in Spokane and its immediate suburbs or, following the Spin-Off, the headquarters of SpinCo;6 
 (iv) the material breach by the Company of any provision of this Agreement; or 
 (v) failure of the SpinCo Board to approve the Founder’s Grant within sixty (60) days after the Spin-Off or, in lieu thereof, to
provide substantially equivalent compensation in another form. 
 Good Reason shall not include death or Disability; provided that your mental or physical
incapacity following the occurrence of an event described in clauses (i) -(v) above shall not affect your ability to terminate for Good Reason. You shall not be deemed to have resigned for Good Reason unless you have provided a Notice of
Termination, as prescribed below, to the Company stating your intent to resign within ninety (90) days of the occurrence of any claimed event of Good Reason and the Company fails to cure any claimed event of Good Reason within 30 days of such
notice from you. The Board’s good faith determination of cure with respect to clause (i) or (iv) above shall be binding, and the Company shall notify you of the timely cure of any claimed event of Good Reason and the manner in which
such cure was effected, and any Notice of Termination delivered by you based on such claimed Good Reason shall be deemed withdrawn and shall not be effective to terminate the Agreement. 
  
  

	 6
	 It is expected that you will have significant input into the decisions regarding the location of SpinCo’s
headquarters. 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
 11
 of 18 
  

 (j) Definition of Change in Control: For the purposes of this Agreement, a “Change in
Control” shall mean the occurrence of any of the following events other than the Spin-Off: 
 (i) Consummation of a
reorganization, merger or consolidation involving the Company (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the then outstanding shares of Common Stock (the “Outstanding Common Stock”) and the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Voting Securities”) immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company either
directly or through one or more subsidiaries), (B) no Person (as defined in paragraph 9(j)(iii), below) (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) sponsored or maintained
by the Company or such other corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business
Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership is based on the beneficial ownership, directly or indirectly, of Outstanding Common Stock or Outstanding
Voting Securities immediately prior to the Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
 (ii) The
date that individuals who, as of the effective date of this Agreement, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a
director subsequent to the date this Agreement becomes effective whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors, an actual or threatened solicitation of proxies or consents or any other actual or threatened action by, or on behalf of any Person other than the Board; or 

 Mr. Gordon L. Jones 
 July 28, 2008 
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 (iii) Acquisition after the effective date of this Agreement by any individual,
entity or group (within the meaning of Sections 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 20% or more of either (A) the then Outstanding Common Stock or (B) the combined voting power of the Outstanding Voting Securities; provided, however, that the following acquisitions shall not be deemed to be
covered by this Section 6(c): (x) any acquisition of any acquisition of Outstanding Common Stock or Outstanding Voting Securities by the Company, (y) any acquisition of Outstanding Common Stock or Outstanding Voting Securities by any
employee benefit plan (or related trust) sponsored or maintained by the Company or (z) any acquisition of Outstanding Common Stock or Outstanding Voting Securities by any corporation pursuant to a transaction which complies with clauses (A),
(B) and (C) of paragraph 9(j)(i), above; or 
 (iv) Upon the consummation of the sale of all or substantially all of
the assets of the Company or approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
 (k)
Failure of Spin-Off to Occur Prior to July 1, 2009: Notwithstanding anything in this Agreement to the contrary, if the Spin-Off does not become effective on or before July 1, 2009 and you and Potlatch fail to reach a mutually
agreeable arrangement to continue your employment, your employment with Potlatch will cease effective July 1, 2009, and, in lieu of any other severance, you will, upon execution, without revocation, of the Release, be eligible for a lump sum
cash payment equivalent, before taxes and deductions, to the sum of (x) your annual bonus payout, at target, for the year in which your separation occurs and (y) the cash value of your 2009 LTIP grant at target (which is 100% of your
annual base salary). You will not be eligible for any additional payments under this Agreement except for payment of any Accrued Obligations, and you will not be eligible for severance under any other plan, program, or practice of the Company. To
the extent required to comply with, or to avoid the payment of penalties under, Section 409A, as determined by the Company’s outside counsel, payment under this Section 9(k) shall be delayed to the six month anniversary of the date of
Executive’s “separation from service,” within the meaning of Section 409A of the Code. 
 10. Certain Additional Payments by the
Company: 
 (a) Notwithstanding anything in this Agreement to the contrary and except as set forth below, in the event it shall be
determined that any payment or distribution by the Company to you or for your benefit (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement 

 Mr. Gordon L. Jones 
 July 28, 2008 
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or otherwise, but determined without regard to any additional payments required under this section) (a “Payment”) would be subject to the excise
tax imposed by Section 4999 of the Code or any interest or penalties are incurred by you with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the
“Excise Tax”), then you shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by you of all taxes (including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, you retain an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments. Notwithstanding the foregoing provisions of this paragraph 10(a), if it shall be determined that you are entitled to a Gross-Up Payment, but that the Payments would not exceed the safe harbor amount of 2.99 times your “base
amount,” as defined in Code section 280G(b)(3), by $100,000 or more, then no Gross-Up Payment shall be made to you and the Payments, in the aggregate, shall be reduced to an amount such that the receipt of Payments would not give rise to any
Excise Tax. In that event, you shall direct which Payments are to be modified or reduced (the “Reduced Amount”). 
 (b) Subject to
the provisions of paragraph 10(c), all determinations required to be made under this Section 9, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at
such determination, shall be made by such certified public accounting firm reasonably acceptable to the Company as may be designated by you (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company
and you within 15 business days of the receipt of notice from you that there has been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual,
entity or group effecting the Change in Control, you shall appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All
fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this section, shall be paid by the Company to you within five days of the receipt of the Accounting Firm’s
determination. Any determination by the Accounting Firm shall be binding upon the Company and you. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts
its remedies hereunder and you thereafter are required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to you
or for your benefit. 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
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 (c) You shall notify the Company in writing of any claim by the Internal Revenue Service that, if
successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten business days after you are informed in writing of such claim and shall apprise the Company
of the nature of such claim and the date on which such claim is requested to be paid. You shall not pay such claim prior to the expiration of the 30-day period following the date on which you give such notice to the Company (or such shorter period
ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies you in writing prior to the expiration of such period that it desires to contest such claim, you shall: 
 (i) give the Company any information reasonably requested by the Company relating to such claim, 
 (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company, 
 (iii) cooperate with the Company in good faith in order effectively to contest such claim, and 
 (iv) permit the Company to participate in any proceedings relating to such claim; 
 provided, however, that the Company shall bear and pay directly
all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold you harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with
respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation of the foregoing provisions of this section, the Company shall control all proceedings taken in connection with such contest and, at
its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct you to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and you agree to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs you to pay such claim and sue for a refund, the Company shall advance the 

 Mr. Gordon L. Jones 
 July 28, 2008 
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amount of such payment to you, on an interest-free basis and shall indemnify and hold you harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment
of taxes for the taxable year with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a
Gross-Up Payment would be payable hereunder and you shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
 (d) If, after your receipt of an amount advanced by the Company pursuant to this section, you become entitled to receive any refund with respect to such
claim, you shall (subject to the Company’s complying with the requirements of this section) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after
your receipt of an amount advanced by the Company pursuant to this section, a determination is made that you shall not be entitled to any refund with respect to such claim and the Company does not notify you in writing of its intent to contest such
denial of refund prior to the expiration of 30 days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid. 
 11. Relocation Assistance and Temporary Living Expenses: If the Spin-Off occurs prior to or on July 1, 2009, you
will be eligible for relocation benefits under the policy available to other SpinCo employees, including policy provisions governing gross-up of applicable expenses. Further, commencing on July 1, 2008 and through the earlier of the SpinOff or
July 1, 2009, you will be eligible for reimbursement or Company payment, at the Company’s election, of reasonable temporary living expenses and return trips home in accordance with Company’s policy, including provisions governing
gross-up of applicable expenses. Arrangements for an executive apartment, leased and paid for by the Company, will be made prior to the date you commence employment. 
 12. Covenants: You acknowledge and agree to comply with the Company’s standard Inventions, Trade Secrets and Confidentiality Agreement, as the same may be amended from time to time. You also acknowledge
and agree that you will have access to confidential and proprietary information of the Company and third parties in the course of performing your responsibilities for the Company and that such access is necessary to your ability to perform those
responsibilities. You agree not to make any unauthorized use or disclosure of confidential or proprietary information and, in consideration of access to 

 Mr. Gordon L. Jones 
 July 28, 2008 
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confidential and proprietary information and the compensation and benefits being paid by the Company to you hereunder, you further agree that, during
(a) the time you are employed and (b) a period of two (2) years following your separation from employment with the Company for any reason, you will not, without the prior written consent of the Company, directly or indirectly:

 (a) engage in, whether as an owner, consultant, employee, or otherwise, activities competitive with that of Potlatch or SpinCo in any
state where Potlatch or SpinCo do business; or 
 (b) solicit for employment, offer, or cause to be offered employment, either on a full
time, part-time or consulting basis, to any person who was employed by the Company or its affiliates on the date your employment terminated and with whom you had regular contact with during the course of your employment by the Company. 

You agree that the foregoing restrictions are reasonable, will not preclude you from finding gainful employment, and are necessary to protect the goodwill,
confidential information, and other protectable business interests of the Company. You further agree that the Company would suffer irreparable harm should you violate these restrictions and agree that injunctive relief, in addition to any other
damages or relief available to the Company, is appropriate and necessary to protect the Company’s interests. 
 13. Representation and
Warranties: You represent and warrant that you are not a party to, or otherwise subject to, any covenant not to compete, or other agreement that would restrict or limit your ability to perform your responsibilities under this Agreement, with any
person or entity and that your performance of your obligations under this Agreement will not violate the terms and conditions of any contract or obligation, written or oral, between you and any other person or entity. 
 14. Assignment and Successors: This Agreement is personal to you and, without the prior written consent of the Company, shall not be assignable by you. This
Agreement shall inure to the benefit of and be enforceable by the Company and its successors and assigns. 
 15. Withholding: The Company may withhold
from any payment that is required to be made under this Agreement amounts sufficient to satisfy applicable withholding requirements under any federal, state, or local law and all payments hereunder shall be subject to applicable deductions.

 16. Controlling Law: Except where otherwise provided for herein, this Agreement shall be governed in all respects by the laws of the State of
Washington, excluding any conflict-of-law rule that might refer the construction of the Agreement to the laws of another state or country. 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
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 17. Notices: Any notices under this Agreement that are required to be given to the Company shall be addressed
to the Corporate Secretary of the Company, and any notices required to be given to you shall be sent to your address as shown in the Company’s records, which you are responsible for keeping up-to-date. 
 18. Separability and Construction: If any provision of this Agreement is determined to be invalid, unenforceable, or unlawful by a court of competent
jurisdiction, the other provisions of this Agreement shall remain in full force and effect, and the provisions that are determined to be invalid, unenforceable, or unlawful will either be limited or reformed so that they will remain in effect to the
fullest extent allowed by law. 
 19. Waiver of Breach: Except as otherwise specifically provided for herein, no failure by any party to give notice
of any breach of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver or relinquishment of that party’s rights, and no waiver or relinquishment of rights by any party at any one or more times
will be deemed to be a waiver or relinquishment of such right or power at any other time or times. 
 20. Entire Agreement/Modification in Writing:
This Agreement together with the plan documents, grant notices, and governing policies of the Company (as amended from time to time) constitute the entire understanding relating to the matters addressed herein and supersede any other prior
agreement, whether written or oral. No addition to, or modification of, this Agreement shall be effective unless in writing and signed by both you and an authorized representative of the Company. 
 21. Construction: Each party and his or its counsel have reviewed this Agreement and have been provided the opportunity to revise this Agreement, and,
accordingly, the normal rule of construction providing for any ambiguities to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. Instead, the language of all parts of this Agreement shall be
construed as a whole and according to its fair meaning, not strictly for or against either party. Nothing in this Agreement is intended to or constitutes a guarantee of employment for a fixed or specific term, and the Company reserves the right to
adopt, amend, discontinue, or otherwise alter its compensation, benefit, and human resources practices, policies, and programs at its discretion. 

 Mr. Gordon L. Jones 
 July 28, 2008 
  Page
 18
 of 18 
  

 Gordon, I hope this Agreement provides you with the level of security and incentive that will allow you to contribute
substantially to the success of the Company, Please sign below and return an executed original to me to indicate your acceptance of these terms. Again, we are pleased to have you become a member of the team. 
  

	
	Sincerely,
	
	/s/ Michael J. Covey
	Michael J. Covey

  

	cc:	Jane Crane 

 I, Gordon L. Jones, have read, understand, accept and agree
to the terms of the letter/agreement from Michael J. Covey dated July__, 2008. 
  

	
	
	/s/ Gordon L. Jones
	Gordon L. Jones
	
	7/29/2008
	Date

 

 
 October 9, 2008 
 VIA
EMAIL 
 Gordon L. Jones 
  

	Re:	Acknowledgment 

 Dear Gordon: 
 Reference is made to the attached employment agreement dated July 28, 2008. Potlatch Forest Products Corporation, a Delaware corporation to be renamed Clearwater
Paper Corporation, hereby acknowledges and agrees to assume the obligations under the employment agreement effective as of the date that the spin-off transaction referred to therein is consummated. 
 Sincerely, 
  

			
	 Potlatch Forest Products Corporation,
 A
Delaware corporation

	(to be renamed Clearwater Paper Corporation)
		
	By:	 	 /s/ Jane Crane

		 	Jane Crane, Vice President Human Resource

  

			
	Potlatch Forest Products Corporation	 	
		
	601 West First Avenue • Suite 1600 • Spokane, WA 99201	 	WWW.POTLATCHCORP.COM

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