Document:

Ex. 10.1 Annual Incentive Plan

Exhibit 10.1

Weyerhaeuser Company
Annual Incentive Plan for Salaried Employees
(Amended and Restated Effective January 1, 2015)

This document contains the terms of the Weyerhaeuser Company Annual Incentive Plan for Salaried Employees (the “Plan”).  The Plan is amended and restated effective January 1, 2015.

		
	1.
	Purpose and Plan Objectives

The purpose of the Plan is to align rewards with the Company’s vision and strategies, and motivate Participants to achieve top performance in the industry.  Participants are eligible to receive incentive awards based on their performance and the performance of their respective Business Group or Organization.
The Plan is designed to accomplish the following objectives:
		
	•
	motivate Participants to achieve Company and business objectives;

		
	•
	provide a competitive range of performance and payout opportunities;

		
	•
	attract, retain and motivate Participants by providing opportunities to earn better-than-competitive total pay for better-than-competitive performance results;

		
	•
	align the interests of Participants to promote the Company’s philosophy of managing each business independently to achieve top quartile performance and cost of capital returns; and

		
	•
	ensure strong linkage of pay to performance.

		
	2.
	Definitions

		
	(a)
	“Award Year” is each calendar year or other annual performance period determined by the Compensation Committee for which a Participant may earn a Bonus Award.

		
	(b)
	“Base Salary” is a Participant’s annual rate of pay measured as of the last day of an Award Year, excluding all other pay elements (such as bonus payments and relocation allowances).  For a Participant who becomes ineligible for the Plan during the Award Year and is eligible for a pro-rated Bonus Award pursuant to the criteria specified in the Plan, Base Salary is the Participant’s annual rate of pay measured as of the last day during the Award Year that he or she was eligible for the Plan.

		
	(c)
	“Bonus Award” is the amount of bonus granted to a Participant for each Award Year as determined under the terms of the Plan.

		
	(d)
	“Business Group” means a business that separately earns revenues and incurs expenses, that regularly is reviewed by and subject to different performance standards by the Chief Executive Officer or executive officers of the Company, such as the Timberlands, Cellulose Fibers and Wood Products businesses, including the Employees assigned to each Business Group and the member of the Senior Management Team to whom the Business Group reports directly.

		
	(e)
	“Business Metric Funding Curves” has the meaning specified in Section 5.

		
	(f)
	“Company” means, collectively, Weyerhaeuser Company and each of its subsidiaries that participate in the Plan.

		
	(g)
	“Compensation Committee” is the Compensation Committee of the Board of Directors of Weyerhaeuser Company.

		
	(h)
	“Controllable Business Metrics” has the meaning specified in Section 5.

		
	(i)
	“Corporate Group” means any Organization that is not part of a Business Group and any member of the Senior Management Team to whom such an Organization reports directly.

		
	(j)
	“Disability” is a medical condition for which a Participant is entitled to Company-paid long-term disability benefits and as a result of which a Participant is required to terminate his or her employment.

		
	(k)
	“Employee” is any person who is classified by the Company as actively employed by the Company, including any such person on leave with pay or suspended (unless such suspension arises from a disciplinary matter due to attendance, misconduct or performance) and who is compensated on a salaried basis (exempt or non-exempt) as reflected on the Company’s payroll records.

		
	(l)
	“Financial Funding Curves” has the meaning specified in Section 5.

		
	(m)
	“Financial Performance Metrics” has the meaning specified in Section 5.

		
	(n)
	“Funds From Operations” means earnings before interest and taxes; less 1031 exchanges and gains on large asset sales; plus depletion, depreciation and amortization; plus the net book value of cash from sales of land; less fertilizer spending, in each case as determined by the Compensation Committee. 

		
	(o)
	“Funding Multiples” has the meaning specified in Section 5.

		
	(p)
	“LTIP” means the Weyerhaeuser Company 2013 Long-Term Incentive Plan (or any successor shareholder-approved plan that meets the requirements of Section 162(m)).

		
	(q)
	“LTIP Section 162(m) Provisions” means Section 15 of the LTIP (or any successor provisions related to Section 162(m)-qualified awards).

		
	(r)
	“Organization” is a corporate support function group or a discrete support function included in the Corporate Group.

		
	(s)
	“Participant” means an Employee who is eligible for and participates in the Plan pursuant to the terms of Section 3.

		
	(t)
	“Plan” has the meaning given in the introduction above.

		
	(u)
	“Retirement” means, with respect to a Participant, his or her “Normal Retirement” or “Early Retirement” as defined in the Weyerhaeuser Pension Plan, as amended from time to time.

		
	(v)
	“RONA” is Weyerhaeuser Company’s or the Business Group’s return on net assets for the Award Year as determined by the Compensation Committee.  For purposes of

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calculating RONA, amounts required to pay any Bonus Award under this Plan, pension charges and incremental corporate allocations are included. 
		
	(w)
	“Section 162(m)” means Section 162(m) of the Internal Revenue Code of 1986, as amended.

		
	(x)
	“Senior Management Team” means any officer that reports to Weyerhaeuser Company’s Chief Executive Officer or that is otherwise designated as such from time to time by Weyerhaeuser Company’s Chief Executive Officer or Senior Vice President of Human Resources (or similar position).

		
	3.
	Eligibility

Subject to the terms and conditions of the Plan, each Employee is eligible to participate in the Plan, except as follows:

		
	(a)
	an Employee who is classified by the Company as a temporary employee;

		
	(b)
	a person who the Company classifies as an independent contractor but who is reclassified by a court or governmental agency (through a settlement, judgment or otherwise) as a common law employee; or

		
	(c)
	an Employee who is eligible for another annual or short-term incentive plan offered by Weyerhaeuser Company or any of its subsidiaries.

The Compensation Committee may designate any other Employee of the Company or any other person as eligible to participate in the Plan.  Eligibility to participate in the Plan does not entitle any Employee to participate in the Plan or to receive a Bonus Award in any specific amount for any Award Year.

4.    Target Bonus Percentage and Amount
The Company assigns Employee positions within the Company a target bonus percentage for each Award Year expressed as a percentage of Base Salary.  The target bonus percentage is fixed for each Participant as of December 31 of each Award Year, without regard to any position changes during the Award Year, except as approved by the Compensation Committee.
A Participant’s target bonus amount for the Award Year is calculated by multiplying his or her target bonus percentage by his or her Base Salary.  Overtime paid during the year to a Participant who is a non-exempt salaried Employee will be added to his or her Base Salary for purposes of calculating his or her target bonus amount.
The target bonus amount for a new Participant during the Award Year will be prorated on a time-in-eligible position basis.  The target bonus amount for a Participant whose employment terminates during the Award Year will be calculated on a time-in-eligible position basis, but only if such termination is for any of the following reasons as classified by the Company:  death, Disability, facility closure, health reasons, reduction in force, sale of facility or Retirement.  A Participant whose employment terminates during the Award Year for any other reason will be ineligible for a Bonus Award.

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5.    Funding, Allocation and Individual Bonus Awards
Financial Performance Metrics - No later than 90 days following the beginning of each Award Year, the Compensation Committee will establish an annual funding schedule for each Business Group, which will consist of the Financial Funding Curves performance levels for threshold, target and maximum funding of the financial target weighting portion of the Plan.  The Financial Funding Curves performance measures may be based on the Business Group’s RONA, Funds From Operations, or other objective business measures established by the Compensation Committee (“Financial Performance Metrics”).  The factors considered by the Compensation Committee in setting the required Financial Funding Curves performance levels may include, but are not limited to, dividend requirements, interest, cost of capital, and relative performance compared to appropriate peer groups.
Controllable Business Metrics - No later than 90 days following the beginning of each Award Year, the Compensation Committee will approve the Business Metric Funding Curves that will be used to measure the “Low Achieves,” “Achieves” and “Exceeds” performance of each Business Group during an Award Year for the controllable business metrics weighting portion of the Plan.  The controllable business metrics will be measurable metrics that may include, but are not limited to, measures such as relative competitive performance, cash generation, earnings improvement, cost reduction and people development (“Controllable Business Metrics”).
Funding Multiples - No later than 90 days following the beginning of each Award Year, the Compensation Committee will approve the Funding Multiple that will be applied for each performance level on the Financial Funding Curves and the Business Metric Funding Curves.  For example, the Funding Multiples for an Award Year may be represented in a schedule such as the following:

	
				
	Financial Performance Metrics
	Controllable Business Metrics

	Threshold
	0.2x
	Low Achieves (Threshold)
	0.5x

	Target
	1.0x
	Achieves
	1.0x

	Maximum
	2.0x
	Exceeds
	2.0x

Business Group Funding Amount - The total funding amount for all Bonus Awards will be calculated separately for each Business Group at the end of each Award Year.  One portion of the total funding amount will be determined based on the Financial Performance Metrics achieved by the Business Group at the end of the Award Year multiplied by the appropriate Funding Multiple approved for the Financial Funding Curves.  The second portion of the total funding amount will be determined based on the assessment of the performance of the Business Group against its Controllable Business Metrics for the Award Year, multiplied by the appropriate Funding Multiple approved for the Business Metric Funding Curves.  The performance of the Business Group against its Controllable Business Metrics will be determined by the Chief Executive 

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Officer of the Company and other designated members of the Senior Management Team.  No later than 90 days following the beginning of each Award Year, the Compensation Committee will approve the weighting percentages for the portion of the total funding amount attributable to the Financial Performance Metrics and the Controllable Business Metrics, respectively.  The total funding amount for the Business Group will be the Business Group funding amount multiplied by the aggregate target bonus amounts of all Participants in the Business Group.
Corporate Group Funding Amount - The total funding amount for Bonus Awards for each Award Year will be calculated for the Corporate Group at the end of each Award Year based on the weighted average of the three separate Business Group Funding Amounts (i.e., Timberlands, Cellulose Fibers and Wood Products) as approved by the Compensation Committee.
Allocation of Total Corporate Group Funding Amount - The total Corporate Group funding amount for the Award Year will be allocated among each Organization within the Corporate Group based on the ratio of (i) the sum of the target bonus amounts of all Participants who are members of each such Organization, multiplied by the appropriate Funding Multiple, to (ii) the total Corporate Group funding amount for the Award Year.
Funding Amounts for Certain Executive Officers - Bonus Awards for the Chief Executive Officer, and for each executive officer to whom other executive officers report or who does not have either a Business Group or Organization reporting directly to him or her, will be determined based on the weighted average of the three separate Business Group Funding Amounts (i.e., Timberlands, Cellulose Fibers and Wood Products) as approved by the Compensation Committee.
Change of Business Group or Organization - Any Participant who transferred from one Business Group or Organization to another Business Group or Organization during the Award Year will be included in the Business Group or Organization to which the Participant is assigned as of the last day of the Award Year, except as approved by the Compensation Committee.
Individual Bonus Awards - The senior officer of each Business Group or Organization will recommend a Bonus Award amount, if any, for each Participant in his or her Business Group or Organization.  The maximum Bonus Award that may be recommended for any Participant with respect to the Award Year is three times the Participant’s target bonus amount.  The sum of all recommended individual Bonus Awards within the Business Group or Organization may not exceed the Business Group or Organization’s allocated funding amount.  A Participant’s recommended Bonus Award may be based on the individual’s performance, plant or department performance, or other relevant factors determined by the senior officer in his or her sole discretion.

6.    Approval of Awards

The Compensation Committee will approve all Bonus Awards for each executive officer and the total funding amount for each Business Group and Organization.  In approving any Bonus Award, the Compensation Committee reserves the right to decrease or, subject to Section 13, increase, the recommended Bonus Award for performance or any other reason.  For all other Participants, the Chief Executive Officer and/or Senior Vice President, Human Resources (or 

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similar position) will approve all Bonus Awards based on the individual Bonus Award recommendations made by the applicable senior officers pursuant to Section 5.  In approving any Bonus Award for Participants other than the executive officers, the Chief Executive Officer and/or Senior Vice President, Human Resources (or similar position) reserve the right to increase or decrease the recommended Bonus Award for performance or any other reason.

7.    Timing of payments and approvals

Payments of Bonus Awards will be made as soon as administratively reasonable after the last day of each Award Year, but in no event later than the immediately next March 15.  Some Participants may be eligible to defer Bonus Award payments.  The availability and terms and conditions of any such deferral are determined by the Weyerhaeuser Company Deferred Compensation Plan.
All payments of Bonus Awards will be made in cash in a single sum and subject to appropriate tax and other required withholding and reporting.  Bonus Award payments will be managed, processed and tracked by the Compensation and Benefits Department.
Any Bonus Award remaining unpaid due to the death of a Participant will be paid to the Participant’s legal representative or to a beneficiary designated by the Participant in accordance with rules established by the Compensation Committee.

8.    Right to amend or terminate

Weyerhaeuser Company reserves the right to amend or terminate the Plan at any time without prior notice to any Participant.  The Plan will be deemed to be amended, and any Bonus Awards will be deemed to be modified, to the extent permitted by and necessary to be exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), so as to avoid or mitigate any adverse tax consequences to Weyerhaeuser Company, its subsidiaries or Participants under Section 409A.  Weyerhaeuser Company and its subsidiaries do not make any representations, and will not be liable for any taxes or other losses, with respect to Section 409A.

9.    Continuation rights

No Participant or his or her legal representatives, beneficiaries or heirs will have any right or interest in the Plan or in its continuance, or in the Participant’s continued participation in the Plan. 

10.    Plan administration

The Compensation Committee is responsible for the administration of the Plan.  The Compensation Committee has sole discretion to construe and interpret the provisions of the Plan, to adopt rules and administrative procedures in connection with the Plan, and to make all final determinations regarding eligibility and benefits under the Plan.  The Compensation Committee may delegate some or all administrative responsibility and functions to such other person or persons as it may determine from time to time.  The Plan is intended to be exempt from the requirements of Section 409A and will be interpreted and administered accordingly.

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11.    Miscellaneous

Bonus Award payments will be treated as compensation for purposes of other benefits maintained by the Company only to the extent provided under the terms of the governing documents for such other benefits. 
Nothing in the Plan will be construed to limit the right of the Company to establish, alter or terminate any other forms of incentives or other compensation or benefits.
The existence of the Plan does not extend to any Participant a right to continued employment with the Company.
Any Bonus Award paid under the Plan is an unfunded obligation of the Company.  The Company is not required to segregate any monies from its general funds, to create any trust or to make any special deposits with respect to this obligation.  The creation or maintenance of any account with the Company’s general funds with respect to the Plan shall not create or constitute a trust or create any vested interest in any Participant or his or her beneficiary or creditors in any assets of the Company.  No right or interest conferred on any Participant pursuant to the Plan shall be assignable or transferable, either by voluntary or involuntary act or by operation of law.
Regardless of the location of any Participant or Employee, the Plan will be governed by the laws of the State of Washington, other than its conflict of laws principles.

12.    Clawback Policy
The Plan is subject to the terms and conditions of the Weyerhaeuser Company Incentive Compensation Clawback Policy, as now in effect or hereinafter amended.

13.    Awards subject to Section 162(m) provisions

Notwithstanding any other provision of the Plan, the Compensation Committee may determine to cause Bonus Awards to certain Participants for an Award Year to be subject to a formula-based maximum award amount intended to qualify the Bonus Award as “performance-based compensation” within the meaning of Section 162(m).  In that case, the Bonus Award under this Plan for each such Participant shall be considered a cash award under the LTIP and the LTIP Section 162(m) provisions and shall be subject to such provisions.  Any such maximum Bonus Award amount shall be determined based on objective performance criteria established by the Compensation Committee within the first 90 days of the Award Year and shall otherwise satisfy the requirements of the LTIP Section 162(m) Provisions.  The actual Bonus Award for a Participant shall then be determined under the provisions of this Plan other than this Section 13, which may result in a Bonus Award that is less than the maximum Bonus Award amount determined under the objective performance criteria established for the Award Year under this Section 13 and the LTIP Section 162(m) Provisions.  In no event shall the Bonus Award exceed the maximum Bonus Award amount applicable under this Section 13 and the LTIP Section 162(m) Provisions.

7Ex 10.2 Performance Shares Awards Terms

Exhibit 10.2

WEYERHAEUSER COMPANY
2013 LONG-TERM INCENTIVE PLAN
2015 PERFORMANCE SHARE AWARD 
TERMS AND CONDITIONS (U.S.)

Pursuant to your Grant Notice (the “Grant Notice”) and these Performance Share Award Terms and Conditions, Weyerhaeuser Company has granted to you under its 2013 Long-Term Incentive Plan (the “Plan”) the number of Performance Share Awards (“Awards”) indicated in your Grant Notice at the market value indicated in your Grant Notice (the “Grant”).  The Grant was made as of the date of the Compensation Committee action authorizing the Grant (the “Grant Date”).  You may decline this Grant by notifying the Compensation and Benefits Department at bened@weyerhaeuser.com within one month of the Grant Date.  If you decline this Grant, you will not be entitled to any award, benefit, or other compensation in lieu thereof.
Capitalized terms used but not defined in this document have the definitions given to such terms in the Plan.  Awards represent the Company’s unfunded and unsecured promise to issue shares of Company Common Stock to you at a future date based upon satisfaction of certain performance criteria, subject to the terms of this document and the Plan.  You have no rights to or under the Awards other than the rights of a general unsecured creditor of the Company.  In addition, the Awards have the following terms and conditions:
1.    Earning and Vesting of Awards.  You will earn the Awards granted to you only if the Company achieves certain business targets over a three-year performance period and, except as otherwise provided in Section 3, you remain employed by the Company or Related Company through the end of the performance period.  The performance period begins on January 1 of the year the Awards are granted and ends on December 31 of the second year following the year of the grant.  For example, for Awards granted in 2015 the three-year performance period will be January 1, 2015 through December 31, 2017.  You will earn the level of Awards shown in the table below based on the Company’s performance in achieving the specified business targets.  All Awards will be earned and vest on the third anniversary of the Grant Date, subject to the Compensation Committee certifying achievement of the business targets.

	
		
	TSR Percentile Rank
	Payout %
of Target Awards

	< 25th percentile
	0%

	25th percentile
	50%

	50th percentile
	100%

	≥75th percentile
	150%

Note:  Payout percentages for TSR performance above the 25th percentile will be linearly interpolated between percentiles with a maximum of 150%.

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The business targets to be measured will be Weyerhaeuser Company’s total shareholder return (“TSR”) over the three-year performance period measured against (1) TSR for the Standard & Poor’s 500 index of companies and (2) TSR for an industry peer group of companies.  Each business target (i.e., TSR versus S&P 500 and TSR versus industry peer group) will be weighted 50% in determining earned Awards.  TSR measures the percentage change in share price from the beginning of the performance period to the end of the performance period and assumes immediate reinvestment of dividends when declared at the closing share price on the date declared.  A list of the companies included in the industry peer group is attached as Exhibit A.  The maximum number of shares that can be earned under a Grant is 150% of target.
All determinations with respect to Awards will be made by the Compensation Committee, including determinations as to TSR and the level of Awards earned.  The Compensation Committee shall make adjustments to the constituent companies in the S&P 500 and in the industry peer group based on certain changes to such companies (e.g., with respect to corporate events such as merger, tender offer, liquidation or other significant events) in accordance with policies and procedures adopted by the Compensation Committee during the first 90 days of the performance period.
2.    Conversion of Awards and Issuance of Shares.  Upon vesting of Awards in accordance with Section 1, one share of Company Common Stock shall be issued for each earned Award that vests on such date (the “Shares”), subject to the terms of the Plan and this document.  The Company will subtract from the vested Shares the whole number of Shares necessary to satisfy any required Tax Withholding Obligations as described in Section 9, and transfer the balance of the vested Shares to you.  No fractional shares of Common Stock shall be issued under this Grant.  The delivery of vested Shares shall occur as soon as practicable after the vesting date specified in Section 1, but in all events by a date which is within 30 days following such date. 
3.    Termination of Employment; Death; Disability; Change in Control.  In the event of your termination of employment, death or Disability or a Change in Control while Awards are outstanding, the following vesting and payment provisions will apply.  Within 30 days following each applicable release date specified below, one share of Company Common Stock will be issued for each earned Award that is scheduled for release on such date, subject to the terms of the Plan and this document, and subject to any Tax Withholding Obligations as described in Section 9 hereof.
(a)    Termination of Employment at Age 62.  If you terminate employment at age 62 or older (such termination being referred to herein as “retirement”), and if clause (ii) in the second paragraph of Section 3(f) is not applicable, you will be entitled to receive all or a portion of your earned Awards as set forth below, to be released on the same dates as provided for in Sections 1 and 2.  Specifically, your earned Awards will be released according to the following schedule:
i.    If your retirement occurs on or after the one-year anniversary of the Grant Date, your Awards will continue to be earned and paid in accordance with the provisions of Section 1 and Section 2 based on actual performance results for the applicable 

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performance period, notwithstanding your termination of employment before the vesting date.
ii.    If your retirement occurs before the one-year anniversary of the Grant Date, the number of Awards will be pro-rated based on the number of months you worked after the Grant Date.  The number of Awards will be calculated by multiplying (x) the actual number of Awards earned as of the end of the three-year performance period by (y) a fraction, the numerator of which is the number of months worked after the Grant Date (and before your retirement) and the denominator of which is 12.  The remaining Awards will be forfeited and no Shares will be issued or issuable with respect to such forfeited portion of the Awards.  The earned pro-rated Awards will vest and be released as provided in Sections 1 and 2 above.
(b)    Termination of Employment Due to Job Elimination.  If your employment is involuntarily terminated due to the elimination of your position with the Company or any Related Company, and if clause (ii) in the second paragraph of Section 3(f) is not applicable, your Awards will continue to vest as provided in Section 1 for one year following your termination and your earned and vested Awards will be released as provided in Section 2.  The remaining unvested portion of your Awards as of the one-year anniversary of your termination date will be forfeited and no Shares will be issued or issuable with respect to such forfeited portion of the Awards.  For example, if your termination occurs more than one year before the scheduled vesting date (i.e., the third anniversary of the Grant Date), then all Awards with respect to that performance period will be forfeited and no Shares will be issued or issuable with respect to such forfeited Awards.
(c)    Termination of Employment for Other Reasons.  If your employment is terminated before any of your Awards are earned and vest as provided in Section 1 and none of the other provisions of this Section 3 apply, any Awards that are not vested on the date of your termination are immediately forfeited and no Shares will be issued or issuable with respect to such forfeited portion of the Awards.
(d)    Termination of Employment for Cause.  If your employment is terminated for Cause (defined below), then notwithstanding anything to the contrary herein, including but not limited to Section 3(a), any outstanding Awards will be immediately forfeited at the time the Company or Related Company first notifies you of your termination for Cause and no Shares will be issued or issuable with respect to such forfeited Awards.  In addition, if your employment or service relationship is suspended pending an investigation of whether you will be terminated for Cause, payment of all outstanding Awards may be suspended during such period of investigation to the extent permissible under Section 409A of the U.S. Internal Revenue Code of 1986, as amended (“Section 409A”).  If, at the conclusion of such investigation, your employment or service relationship is terminated for Cause, all outstanding Awards shall be immediately forfeited as provided above and you shall be required to promptly repay to the Company any Shares relating to such Awards that were previously paid to you during the period of investigation.  If any facts that would constitute termination for Cause are discovered after your termination of service, any outstanding Awards may be immediately terminated by the Compensation Committee.

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“Cause”  means:  (i) willful and continued failure to perform substantially your duties with the Company or any Related Company after the Company or Related Company delivers to you written demand for substantial performance specifically identifying the manner in which you have not substantially performed your duties; (ii) conviction of a felony; or (iii) willfully engaging in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company or any Related Company.
(e)    Death or Disability.  In the event of your death or Disability while actively employed, your Awards will continue to be earned and paid in accordance with the provisions of Section 1 and Section 2 based on actual performance results for the applicable performance period, notwithstanding your termination of employment before the vesting date.  In the event of your death, payment will be made to your estate. 
(f)    Change in Control.  If a Change in Control occurs before the end of the three-year performance period, the target performance level (i.e., 50th percentile) will be deemed to have been achieved and you will be deemed to have earned a payout percentage of 100% of your target Awards.
Following a Change in Control, your earned Awards will vest as set forth in Section 1 and be released as set forth in Section 2, subject to the following provisions of this Section 3(f):  (i) your then-outstanding earned Awards will immediately fully vest as of the effective date of the Change in Control in the event that the Awards are not assumed, converted or replaced by the successor entity to the Company, and, to the extent permissible under Section 409A, will be released as of such date if such Change in Control qualifies as a “change in control event” for purposes of Treas. Reg. § 1.409A-3(i)(5) (or successor provisions); and (ii) subject to Section 15, your earned Awards will immediately fully vest and be released as of the date of your separation from service (as defined in Treas. Reg. §°1.409A-1(h) (or successor provisions)), provided that such separation from service occurs within 24 full calendar months following the effective date of the Change in Control and is either an involuntary separation by the Company (which term includes, for purposes of this Section 3(f), any Related Company and any successor entity) other than for Cause (as defined above in Section 3(d)) or a voluntary separation by you for Good Reason.
“Good Reason” means, without your express written consent, the occurrence of any one or more of the following events:
i.    a material reduction in your authority, duties, or responsibilities existing immediately prior to the Change in Control;
ii.    within 24 months following a Change in Control, the Company’s requiring you to be based at a location that is at least 50 miles farther from your primary residence immediately prior to a Change in Control than is such residence from the Company’s headquarters immediately prior to a Change in Control, except for required travel on the Company’s business to an extent substantially consistent with your business obligations as of the Grant Date;
iii.    a material reduction by the Company of your base salary as in effect immediately prior to the Change in Control;

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iv.    a material reduction in the benefits coverage in the aggregate provided to you immediately prior to the Change in Control; provided, however, that reductions in the level of benefits coverage will not be deemed to be “Good Reason” if your overall benefits coverage is substantially consistent with the average level of benefits coverage of other executives who have positions commensurate with your position at the acquiring company; or
v.    a material reduction in your level of participation, including your target-level opportunities, in any of the Company’s short- and/or long-term incentive compensation plans in which you participate as of the Grant Date (for this purpose a material reduction shall be deemed to have occurred if the aggregate “incentive opportunities” are reduced by 10% or more), or a material increase in the relative difficulty of the measures used to determine the payouts under such plans; provided, however, that reductions in the levels of participation or increase in relative difficulty of payout measures will not be deemed to be “Good Reason” if your reduced level of participation or difficulty of measures in each such program remains substantially consistent with the level of participation or difficulty of the measures of some or all other executives who have positions commensurate with your position at the acquiring company.
In no event will your resignation be for Good Reason unless:  (A) an event set forth above has occurred and you provide the Company with written notice thereof within 30 days after you have knowledge of the occurrence or existence of such event, which notice specifically identifies the event that you believe constitutes Good Reason; and (B) the Company fails to correct the event so identified in all material respects within 30 days after receipt of such notice. 
4.    Dividends.  Except as otherwise specifically provided in this document, you will not be entitled to any rights of a shareholder with respect to any outstanding Awards.  Notwithstanding the foregoing, if the Company declares and pays dividends on Common Stock during the time period when Awards are outstanding, you will be credited with additional amounts for each Award equal to the dividend that would have been paid with respect to such Award if it had been an actual share of Common Stock, which amount shall remain subject to any restrictions (and as determined by the Administrator may be reinvested in Awards or may be accrued as cash with or without interest) and shall vest and be paid concurrently with the vesting and payment of the Awards upon which such dividend equivalent amounts were paid based on actual performance results.
5.    No Rights as Shareholder until Vesting and Issuance of Shares.  You will not have any voting or any other rights as a shareholder of the Common Stock with respect to the outstanding Awards.  Upon vesting of the Awards and issuance of shares of Common Stock, you will obtain full voting and other rights as a shareholder of the Company.
6.    Securities Law Compliance.  Notwithstanding any other provision of this document, you may not sell the Shares acquired upon vesting and issuance of the Awards unless such Shares are registered under the Securities Act of 1933, as amended (the “Securities Act”), or, if such Shares are not then so registered, such sale is exempt from the registration requirements of the Securities Act.  The sale of such Shares must also comply with other applicable laws and regulations governing the Shares and you may not

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sell the Shares if the Company determines that such sale would not be in material compliance with such laws and regulations.
7.    Non-Transferability of Awards.  Notwithstanding any other provision of this document, you may not sell, pledge, assign, hypothecate, transfer or dispose of your Awards in any manner prior to the distribution to you of shares of Company common stock in respect of such Awards.  Awards shall not be subject to execution, attachment or other process.  Notwithstanding the foregoing, pursuant to Section 3(e), Shares may be issued to your estate in the event of your death.
8.    Independent Tax Advice.  Determining the actual tax consequences of receiving or disposing of the Awards and Shares may be complicated.  These tax consequences will depend, in part, on your specific situation and also may depend on the resolution of currently uncertain tax law and other variables not within the control of the Company.  You should consult a competent and independent tax advisor for a full understanding of the specific tax consequences to you of receiving or disposing of Awards and Shares.  You are encouraged to consult with a competent tax advisor independent of the Company to obtain tax advice concerning the receipt, vesting or disposition of the Awards or Shares in light of your specific situation.
9.    Taxes and Withholding.  You are ultimately liable and responsible for all taxes owed in connection with the Awards, including federal, state, local, FICA, or foreign taxes of any kind required by law, regardless of any action the Company takes with respect to any tax withholding obligations that arise in connection with the Awards.  The Company makes no representation or undertaking regarding the treatment of any tax withholding in connection with the Grant or vesting of the Awards or the subsequent sale of Shares issuable pursuant to the Awards.  The Company does not commit and is under no obligation to structure the Awards to reduce or eliminate your tax liability.
When an event occurs in connection with the Awards (e.g., vesting) that the Company determines results in any domestic or foreign tax withholding obligation, whether national, federal, state or local, including any social tax obligation (a “Tax Withholding Obligation”), to the extent required by law, and to the extent permitted by Section 409A, the Company may retain without notice from Shares issuable under the Awards or from salary or other amounts payable to you, whole Shares or cash having a value sufficient to satisfy your Tax Withholding Obligation.  
The Company may refuse to issue any Shares to you until your Tax Withholding Obligation is satisfied.  You should be aware that, in accordance with the Plan, a delay in satisfying your Tax Withholding Obligation could cause a forfeiture of the Shares.
10.    Grant Not an Employment or Service Contract.  Nothing in the Plan or any Award granted under the Plan will be deemed to constitute an employment contract or confer or be deemed to confer any right for you to continue in the employ of, or to continue any other relationship with, the Company or any Related Company or limit in any way the right of the Company or any Related Company to terminate your employment or other relationship at any time, with or without cause.

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11.    No Right to Damages.  You will have no right to bring a claim or to receive damages if any portion of the Grant is forfeited.  The loss of existing or potential profit in Awards will not constitute an element of damages in the event of your termination of service for any reason even if the termination is in violation of an obligation of the Company or a Related Company to you.
12.    Binding Effect.  The terms and conditions of this Grant will inure to the benefit of the successors and assigns of the Company and be binding upon you and your heirs, executors, administrators, successors and assigns.
13.    Limitation on Rights; No Right to Future Grants; Extraordinary Item of Compensation.  (a) All Awards under the Plan are discretionary in nature and may be suspended or terminated by the Company at any time.  (b) Each Grant is a one-time benefit that does not create any contractual or other right to receive future grants of Awards.  (c) All determinations with respect to any such future grants, including, but not limited to, the times when grants will be made, the number of Awards subject to each grant, the grant price, vesting and other terms applicable to the grant, and the time or times when each grant will be exercisable, will be at the sole discretion of the Company.  (d) Your participation in the Plan is voluntary.  (e) The value of the Grant is an extraordinary item of compensation that is outside the scope of your employment contract, if any.  (f) The Grant is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.  (g) Except as may otherwise be explicitly provided in the terms and conditions of this Grant, the vesting of the Grant ceases upon your termination of employment for any reason and any unvested Awards will be forfeited.  (h) The future value of the Shares underlying the Grant is unknown and cannot be predicted with certainty.  (i) The Compensation Committee may determine that Grants to you are subject to a formula-based maximum award amount intended to qualify your Awards as “performance-based compensation” within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended.  In that case, your Awards shall be subject to the Section 162(m) provisions set forth in Section 15 of the Plan and shall not exceed the maximum amounts applicable under such Section 162(m) provisions.
14.    Employee Data Privacy.  By accepting this Grant, you:  (a) authorize the Company (and your employer, if different, and any agent of the Company administering the Plan or providing Plan recordkeeping services) to disclose to the Company or any of its affiliates, and their respective agents in connection with administering the Plan, any information and data the Company requests (including personal data) in order to facilitate the grant of the Award and the administration of the Plan; (b) agree that the Company (and your employer, if different, and any of their respective agents in connection with administering the Plan) may act as a data controller and/or data processor with respect to such information and data and waive to the maximum extent permissible by law any data privacy rights you may have with respect to such information and data; and (c) authorize the Company and its agents to store and transmit such information, including in electronic form, to its affiliates or agents in any country (including countries which may not provide for data protection equivalent to the United States).
15.    Compliance with Section 409A.  To the extent that the Company determines that the Awards are subject to Section 409A, these Terms and Conditions will be interpreted and administered in such a way as to comply with the applicable provisions of Section 409A to the 

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maximum extent possible.  In addition, if the Awards are subject to Section 409A and you must be treated as a “specified employee” within the meaning of Section 409A, any payments made on account of your separation from service for purposes of Section 409A will be made at the time specified above in these Terms and Conditions or, if later and to the extent required by Section 409A, on the date that is six months and one day following the date of your separation from service.  To the extent that the Company determines that the Awards are subject to Section 409A and fail to comply with the requirements of Section 409A, the Company reserves the right (without any obligation to do so) to amend, restructure, terminate or replace the Awards in order to cause the Awards to either not be subject to Section 409A or to comply with the applicable provisions of Section 409A.

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Exhibit A

Industry Peer Group Companies

Boise Cascade Company  (BCC)
Canfor Corporation  (CFP)
Catchmark Timber Trust, Inc.  (CTT)
Deltic Timber Corporation  (DEL)
Domtar Corporation  (UFS)
International Paper Company  (IP)
Louisiana-Pacific Corporation  (LPX)
MeadWestvaco Corporation  (MWV)
Plum Creek Timber Company  (PCL) 
Potlatch Corporation  (PCH)
Rayonier Inc.  (RYN)
The St. Joe Company  (JOE)
Universal Forest Products, Inc. (UFPI)
West Frasier Timber Co. Ltd.  (WFT)

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