Document:

Potlatch Corporation Salaried Employees' Supplemental Benefit Plan

 Exhibit (10)(d) 
  
 POTLATCH CORPORATION SALARIED EMPLOYEES’ 
  
 SUPPLEMENTAL BENEFIT PLAN 
  
 As Amended and Restated Effective January 1, 1989 
  
 As Amended through May 24, 2005 
  
 SECTION 1. INTRODUCTION. 
  
 The Potlatch Corporation Salaried Employees’ Supplemental Benefit Plan (the “Plan”) was established effective September 30, 1978. The Plan
was amended from time to time thereafter and was last amended and restated to read as set forth herein effective January 1, 1989, except that the provisions of Sections 4(a), 4(b) and 4(c) incorporate amendments effective December 31, 1992. The
purposes of the Plan are (i) to supplement benefits provided under the Potlatch Corporation Salaried Employees’ Retirement Plan (the “Retirement Plan”) to the extent such benefits are reduced due to the limits of section 401(a)(17) or
415 of the Internal Revenue Code of 1986, as amended (the “Code”), (ii) to provide retirement benefits that take into account deferred awards made under the Potlatch Corporation Management Performance Award Plan (the “MPAP”)
after January 1, 1988, (iii) to provide retirement benefits to certain executives calculated as if they received a target award under the MPAP with respect to award years 1992 and thereafter, (iv) to provide retirement benefits to participants in
the MPAP under certain formulae formerly provided under the Retirement Plan, and (v) to supplement benefits provided under the Potlatch Corporation Salaried Employees’ Savings Plan (the “Savings Plan”) to the extent that a
participant’s allocations of Company Contributions or Allocable Forfeitures are reduced due to the limits of section 401(a)(17), 401(k)(3), 401(m) or 415 of the Code or because the participant has deferred an award under the MPAP after January
1, 1996. Capitalized terms used in the Plan (other than those defined herein) shall have the same meanings given to such terms in the Retirement Plan or the Savings Plan, as the context may require. 
  
 SECTION 2. ELIGIBILITY AND PARTICIPATION. 

 
 Participation in the Plan shall be limited to: 
  
 (a) All participants in the Retirement Plan whose benefits thereunder are
reduced due to the limits of section 401(a)(17) of the Code (limiting the amount of compensation that may be 

  

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taken into account under the Retirement Plan) or section 415 of the code (limiting the annual benefits payable under the Retirement Plan); 
  
 (b) All participants in the Retirement Plan who are credited with deferred
awards under the MPAP after January 1, 1988; 
  
 (c) All
participants in the Retirement Plan who otherwise participate in the MPAP after 1988; and 
  
 (d) All participants in the Savings Plan whose allocations of the Company Contributions or Allocable Forfeitures are reduced because the participant has deferred an award under the MPAP after January 1, 1996 or
because of the limits of one or more of the following sections of the Code: (i) section 401(a)(17) (limiting the amount of compensation that may be taken into account under the Savings Plan); (ii) section 401(k)(3) (limiting participants’
Deferred Contributions to the Savings Plan); (iii) section 401(m) (limiting participants’ Non-deferred Contributions and matching Company Contributions under the Savings Plan); or (iv) section 415 (limiting overall annual allocations under the
Savings Plan). 
  
 Any Employee with whom the Company has entered
into a contract that provides benefits equivalent to any of the benefits described in this Plan shall not be eligible to participate in or receive benefits under this Plan to the extent of such equivalent benefits. 
  
 SECTION 3. AMOUNT OF PLAN BENEFITS. 
  
 A Participant’s Plan Benefit shall consist of (to the extent applicable
to the Participant) (i) the Retirement Plan Supplemental Benefit and (ii) the Savings Plan Supplemental Benefit. All Plan Benefits shall accrue as of the last day of each Plan Year or as of the date, if earlier, on which the Participant ceases to be
an Employee. 
  
 (a) Retirement Plan Supplemental Benefit.
A Participant’s Retirement Plan Supplemental Benefit shall be the sum of the benefits determined under (i), (ii), (iii), (iv), and (v) below, as applicable. 
  
 (i) All Participants. A Participant’s Retirement Plan Supplemental Benefit shall be the
difference between (A) the actual vested benefits payable under the 

  

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Retirement Plan to the Participant and his or her joint annuitant (if any) and (B) the vested benefits that would be payable under the Retirement Plan if the
limitations imposed by sections 401(a)(17) and 415 of the Code did not apply and any deferred award credited to the Participant under the MPAP after January 1, 1988, had been paid to the Participant in the year it was deferred. In the case of any
Participant who is required by Company policy to retire no later than the Normal Retirement Date, the Retirement Plan Supplemental Benefit also shall include the difference, if any, between the actual vested benefits payable under the Retirement
Plan and the vested benefits that would be payable under the Retirement Plan if the average percentage under the MPAP with respect to award years 1992 and thereafter which was recognized by the Retirement Plan in the Participant’s “Average
Monthly Earnings” had been 100% of the “Standard Bonus.” 
  
 (ii) Eligible Employees on December 31, 1977. Any Participant who was an Eligible Employee on December 31, 1977, and who has continuously been a participant in the Retirement Plan since that date to his or her
Retirement Date or completion of 10 Years of Vesting Service shall be entitled to an additional Retirement Plan Supplemental Benefit determined pursuant to the formula in Section 4(b) of the Retirement Plan or Section (b) of Appendix B, as
applicable, recognizing such Participant’s Years of Credited Service and increases in Average Monthly Earnings during periods in which the Participant is eligible to participate in the MPAP from January 1, 1989, through December 31, 1995, but
only to the extent that such benefit exceeds the Participant’s Basic Benefit determined under the Retirement Plan and the benefit determined under Subsection (i) above. In calculating the benefit payable under this subsection (ii), the
limitations imposed by sections 401(a)(17) and 415 of the Code shall be ignored. 
  
 (iii) Eligible Employees on December 31, 1972. Any Participant who was an Eligible Employee on December 31, 1972, and who has
continuously been a participant in the Retirement Plan since that date to his or her Retirement Date, shall be entitled to an additional Retirement Plan Supplemental Benefit determined pursuant to the formula in Section 4(c) of the Retirement Plan
or Section (c) of appendix B, as applicable, recognizing such Participant’s Years of Credited Service and increases in Average 

  

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Monthly Earnings during periods in which the Participant is eligible to participate in the MPAP from January 1, 1989, through December 31, 1995, but only to
the extent that such benefit exceeds the Participant’s Basic Benefit determined under the Retirement Plan and the benefit determined under Subsections (i) and (ii) above. In calculating the benefit payable under this Subsection (iii), the
limitations imposed by sections 401(a)(17) and 415 of the Code shall be ignored. 
  
 (iv) Surviving Spouses of Certain Participants. Upon the death of a Participant who last became an Eligible Employee prior to
January 1, 1973, and who qualified as an Eligible Employee immediately prior to Retirement or whose Retirement was deferred beyond the Normal Retirement Date and who qualified as an Eligible Employee on the Normal Retirement Date, the surviving
spouse of such Participant shall be entitled to an additional monthly survivor’s benefit under this Plan, determined pursuant to the rules and under the conditions set forth in Section 12 of the Retirement Plan, recognizing the
Participant’s Years of Credited Service and increases in Average Monthly Earnings during periods in which the Participant is eligible to participate in the MPAP from January 1, 1989, through December 31, 1995, but only to the extent that such
benefit exceeds the survivor’s benefit determined under the Retirement Plan and any survivor’s benefit payable pursuant to (i) through (iii) above. In calculating the benefit payable under this Subsection (iv), the limitations imposed by
sections 401(a)(17) and 415 of the Code shall be ignored. 
  
 (v) Participants Listed in Exhibit A. Any Participant listed in Exhibit A who is an Eligible Employee immediately prior to his or her Normal Retirement Date or whose Credited Service terminates after the
attainment of age 62 and completion of 10 or more Years of Vesting Service shall be entitled to an additional Retirement Plan Supplemental Benefit equal to two percent of the Participant’s Average Monthly Earnings multiplied by the
Participant’s Years of Credited Service up to 20 such Years, minus the Participant’s Social Security Offset, but only to the extent that such benefit exceeds the Participant’s Basic Benefit determined under the Retirement Plan and the
Retirement Plan Supplemental Benefit otherwise determined under this Section 3(a). For purposes of this Subsection (v), (A) Years of Credited Service and any increase in the 

  

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Participant’s Average Monthly Earnings after December 31, 1995, shall be disregarded; (B) the limitations imposed by sections 401(a)(17) and 415 of the
Code shall be ignored; and (C) the term “Social Security Offset” means 50% of the monthly primary retirement benefits, if any, to which the Participant would be entitled commencing at age 65 under the federal Social Security Act.

  
 (b) Savings Plan Supplemental Benefit. A
Participant’s Savings Plan Supplemental Benefit shall be the vested amount credited to a bookkeeping account established pursuant to this Section 3(b). As of the last day of each Plan Year commencing after December 31, 1987, each Participant
whose allocations for such Plan Year under the Savings Plan are reduced as described in Section 2(d) above and who has made the maximum Participating Deferred and Participating Non-deferred Contributions permitted under the Savings Plan for such
Plan Year shall have an amount credited to such bookkeeping account. The amount so credited shall be the difference between the amount of Company contributions and Allocable Forfeitures actually allocated to the Participant under the Savings Plan
for such Plan Year and the amount of Company Contributions and Allocable Forfeitures that would have been allocated to the Participant under the Savings Plan for such Plan Year if the Participant had made Participating Contributions equal to six
percent of the Participant’s Earnings (determined without regard to section 401(a)(17) of the Code and without regard to the deferral of any award otherwise payable after January 1, 1996 under the MPAP). 
  
 Until the last day of the month preceding payment of the Participant’s
entire Savings Plan Supplemental Benefit, the amount credited to such bookkeeping account shall be credited with interest equal to 70% of the higher of the following averages, compounded annually: (i) the prime rate charged by the major commercial
banks as of the first business day of each month (as reported in an official publication of the Federal Reserve System) or (ii) the average monthly long-term rate of A rated corporate bonds (as published in Moody’s Bond Record). 
  
 The Participant shall become vested in the Participant’s Savings Plan
Supplemental Benefit upon the earliest of completion of five Years of Vesting Service, attainment of age 65 while an Employee, death while an Employee or Total and Permanent Disability. 
  

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 SECTION 4. DISTRIBUTIONS OF PLAN BENEFITS. 
  
 Distributions of Plan Benefits shall be made in cash after the Participant
ceases to be an Employee pursuant to the following procedures. 
  
 (a) Retirement Plan Supplemental Benefit. 
  
 A
Participant’s vested Retirement Plan Supplemental Benefit shall be payable to the Participant or to any other person who receives benefits under the Retirement Plan with respect to the Participant in the same form and at the same times as the
Participant’s Retirement Plan benefit is paid. However, if the Participant elects to have the Retirement Plan benefit paid in an optional form and/or before the Participant’s Normal Retirement Date, the Executive Compensation and Personnel
Policies Committee of the Board of Directors of the Company (the “Committee”) may determine in its sole discretion that the Retirement Plan Supplemental Benefit shall be payable in the normal form and/or at the Normal Retirement Date
notwithstanding the Participant’s election. A Participant’s Retirement Plan Supplemental Benefit shall be subject to the same actuarial adjustments for time and form of payment applicable to Retirement Plan benefits. 
  
 (b) Savings Plan Supplemental Benefit. A Participant may elect to
receive distribution of the Participant’s vested Savings Plan Supplemental Benefit in 15 or fewer annual installments or in a lump sum beginning as soon as practicable after January 1 of the year following the year in which the Participant
ceases to be an Employee by filing the prescribed form with the Committee. Distribution will be made in accordance with the Participant’s election unless the Committee disapproves the election before the date distribution is to commence. The
amount of any annual installment shall be determined by dividing the amount credited to the Participant’s bookkeeping account as of the last day of the month preceding the date of distribution of such installment by the total number of
installments elected by the Participant less the number of installments already paid. 
  
 If the Participant fails to make an election pursuant to this Section 4(b) or if the Committee disapproves the Participant’s
election, the vested Savings Plan Supplemental Benefit shall be distributed in 15 annual installments beginning as soon as practicable after January 1 of 

  

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the year following the year in which the Participant ceases to be an Employee, unless the Committee in its sole discretion determines that distribution shall
be made in a single lump sum. 
  
 The Committee
in its sole discretion may accelerate the distribution of installments upon the request of the Participant. 
  
 If a Participant dies before the Participant’s Savings Plan Supplemental Benefit has been completely distributed, such benefit shall
be distributed in a lump sum as soon as practicable thereafter to the person who is or would be the Participant’s Beneficiary under the Savings Plan. 
  
 (c) Small Benefits. Notwithstanding any contrary provision of the Plan, if a Participant’s Savings Plan Supplemental Benefit or the present
value of the Participant’s Retirement Plan Supplemental Benefit is less than $3,500 when the Participant ceases to be an Employee, such benefit shall be distributed in a single lump sum as soon as practicable after January 1 of the year
following the year in which the Participant ceases to be an Employee. If a Participant is an Employee and the value of the Participant’s Savings Plan Supplemental Benefit is less than $3,500 on December 31, 1992, such benefit shall be paid to
the Participant in a single lump sum on or about December 31, 1992. After December 31, 1992, a minimum allocation of $1,000 shall be required to establish a Savings Plan Supplemental Benefit account, and amounts less than such minimum shall be paid
to the Participant in cash. 
  
 SECTION 5.
MISCELLANEOUS. 
  
 (a) Forfeitures. Plan Benefits
shall be forfeited under the following circumstances: 
  
 (i) If the Participant is not vested in the Retirement Plan Supplemental Benefit or Savings Plan Supplemental Benefit when the Participant ceases to be an Employee; or 
  
 (ii) If the Participant is indebted to the Company or any subsidiary at the time the Participant or the
Participant’s joint annuitant or other Beneficiary becomes entitled to payment of a Plan Benefit. In such a case, to the extent that the amount of the Plan Benefit does not exceed such indebtedness, the amount of such Plan Benefit shall be

  

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forfeited and the Participant’s indebtedness shall be extinguished to the extent of such forfeiture. 
  
 (b) Funding. The Plan shall be unfunded, and all Plan Benefits shall
be paid from the general assets of the Company or from assets held in a grantor trust that is subject to the claims of the Company’s general or judgment creditors. 
  
 (c) Tax Withholding. The Committee shall make appropriate arrangements for satisfaction of any federal or state
income tax or other payroll-based withholding tax required upon the accrual or payment of any Plan Benefits. 
  
 (d) No Employment Rights. Nothing in the Plan shall be deemed to give any individual a right to remain in the employ of the Company or any
Subsidiary or to limit in any way the right of the Company or a Subsidiary to terminate any individual’s employment with or without case, which right is hereby reserved. 
  
 (e) No Assignment of Rights. 
  
 (i) (i) Except as otherwise provided in Section 5(a)(ii) with respect to a Participant’s indebtedness
to the Company or a Subsidiary or in Section 5(e)(ii), the interest or rights of any person in the Plan or in any distribution to be made hereunder shall not be assigned (either at law or in equity), alienated, anticipated or subject to the
attachment, bankruptcy, garnishment, levy, execution or other legal or equitable process. Any act in violation of this Section 5(e)(i) shall be void. 
  
 (ii) (ii) All or any portion of a Participant’s Plan Benefit hereunder shall be subject to the creation, assignment or recognition of
a right under a state domestic relations order that is determined to be a “qualified domestic relations order” (within the meaning of section 414(p) of the Code) under the procedures established by the Company for the determination of the
qualified status of domestic relations orders and for making distributions under qualified domestic relations orders. 
  
 (f) Administration. The Plan shall be administered by the Committee. No member of the Committee shall become a Participant in the Plan. The
Committee shall make such rules, 

  

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interpretations and computations as it may deem appropriate, and any decision of the Committee with respect to the Plan, including (without limitation) any
determination of eligibility to participate in the Plan and any calculation of Plan Benefits, shall be conclusive and binding on all persons. 
  
 Within 30 days after a Change of Control (as defined in Section 5(i)), the Committee shall appoint an independent committee consisting of at least three
current (as of the effective date of the Change of Control) or former Company officers and directors, which shall thereafter administer all claims for benefits under the Plan. Upon such appointment the Committee shall cease to have any
responsibility for claims administration under the Plan. 
  
 (g)
Amendment and Termination. The Company expects to continue the Plan indefinitely. Future conditions, however, cannot be foreseen, and the Company shall have the authority to amend or to terminate the Plan at any time by action of its board of
directors or by action of a committee or individual(s) acting pursuant to a valid delegation of authority. In the event of an amendment or termination of the Plan, a Participant’s Plan Benefits shall not be less than the Plan Benefits to which
the Participant would be entitled if the Participant’s employment had terminated immediately prior to such amendment or termination of the Plan. The foregoing notwithstanding, the Plan may not be amended (including any amendment to this Section
5(g)) or terminated during the three-year period following a Change of Control if such amendment or termination would alter the provisions of this Section 5(g) or adversely affect a Participant’s accrued Plan Benefits. 
  
 (h) Successors and Assigns. The Plan shall be binding upon the
Company, its successors and assigns, and any parent corporation of the Company’s successors or assigns. Notwithstanding that the Plan may be binding upon a successor or assign by operation of law, the Company shall require any successor or
assign to expressly assume and agree to be bound by the Plan in the same manner and to the same extent that the Company would be if no succession or assignment had taken place. 
  

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 (i) Change of Control. For purposes of the Plan, “Change of Control” shall mean

  
 (i) Upon 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 of the Company (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 that 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 individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) (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) On the date that individuals who, as of May 24, 2005 constitute the Board of Directors (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors; provided, however, that any individual becoming a director subsequent to May 24, 2005 whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of the directors 

  

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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 of Directors; or 
  
 (iii) Upon the acquisition after May 24, 2005 by any individual, entity or group (within the meaning of Section 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 (iii): (x) any acquisition of Outstanding Common Stock or
Outstanding Voting Securities by the Corporation, (y) any acquisition of Outstanding Common Stock or Outstanding Voting Securities by any employee benefit plan (or related trust) sponsored or maintained by the Corporation 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 Section (i); 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. 
  

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 POTLATCH CORPORATION SALARIED EMPLOYEES’ 
  
 SUPPLEMENTAL BENEFIT PLAN 
  
 EXHIBIT A 
  
 Aili, Robert S. 
  
 Cheek, George C. 
  
 Cooper, Harry A. 
  
 Commerford, H. Fred 
  
 Clark, Philip C. 
  
 Davis, Frances M. 
  
 Dreshfield, Arthur C. 
  
 Eddington, Charles W. 
  
 Eischen, Robert K. 
  
 Feeley, Donald R. 
  
 Krantz, Irwin W. 
  
 Lloyd, Richard M. 
  
 Neuner, Charles L. 
  
 Page, Gordon R. 
  
 VandeVoorde, Henry J. 
  
 Wharton, Logan H. 
  
 Wirsig, Eugene F. 
  

 12Potlatch Corporation 2005 Stock Incentive Plan

 Exhibit (10)(e) 
  
 POTLATCH CORPORATION 
  
 2005 STOCK INCENTIVE PLAN 
  
 As Amended through May 24, 2005 
  

	1.	PURPOSE. 

  
 This Potlatch Corporation 2005 Stock Incentive Plan is intended to provide incentive to Employees and Directors of Potlatch Corporation (the
“Corporation”) and its eligible Affiliates, to encourage proprietary interest in the Corporation and to encourage Employees and Directors to remain in the service of the Corporation or its Affiliates. 
  

	2.	DEFINITIONS. 

  
 (a) “Administrator” means the Board or either of the Committees appointed to administer the Plan. 
  
 (b) “Affiliate” means any entity, whether a corporation,
partnership, joint venture or other organization that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the Corporation. 
  
 (c) “Award” means any award of an Option, Restricted Stock,
Restricted Stock Units, Performance Shares or an Other Share-Based Award under the Plan. 
  
 (d) “Beneficiary” means a person designated as such by a Participant or a Beneficiary for purposes of the Plan or determined with reference to Section 18. 
  
 (e) “Board” means the Board of Directors of the Corporation.

  
 (f) “Cause” means the occurrence of any one
or more of the following: (i) the Participant’s conviction of any felony or crime involving fraud, dishonesty or moral turpitude; (ii) the Participant’s participation in a fraud or act of dishonesty against the Corporation, its Affiliates
or any successor to the Corporation that result in material harm to the business of the 

  

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Corporation, its Affiliates or any successor to the Corporation; or (iii) the Participant’s intentional, material violation of any contract between the
Corporation, its Affiliates or any successor to the Corporation and the Participant or any statutory duty the Participant owes to the Corporation, its Affiliates or any successor to the Corporation that the Participant does not correct within 30
days after written notice thereof has been provided to the Participant. 
  
 (g) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (h) “Committee” means the Executive Compensation and Personnel Policies Committee of the Board and the Nominating and Corporate Governance Committee of the Board. 
  
 (i) “Common Stock” means the $1 par value common stock of
the Corporation. 
  
 (j) “Corporation” means
Potlatch Corporation, a Delaware corporation. 
  
 (k)
“Covered Employee” means the chief executive officer or any Employee whose total compensation for the taxable year is required to be reported to stockholders under the Exchange Act by reason of such Employee being among the four
highest compensated officers for the taxable year (other than the chief executive officer). 
  
 (l) “Director” means a director of the Corporation. 
  
 (m) “Disability” means the condition of a Participant who is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of at least 12 months. 
  
 (n) “Employee” means an individual employed by the Corporation or an Affiliate (within the meaning of Code
section 3401 and the regulations thereunder). 
  
 (o)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  

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 (p) “Exercise Price” means the price per Share of Common Stock at which an option may be
exercised. 
  
 (q) “Fair Market Value” of a Share
as of a specified date means the closing price at which Shares are traded at the close of business on such date as reported in the New York Stock Exchange composite transactions published in the Wall Street Journal, or if no trading of Shares is
reported for that day, on the next preceding day on which trading was reported. 
  
 (r) “Good Reason” means that one or more of the following are undertaken by the Corporation, its Affiliates or any successor to the Corporation without the Participant’s express written consent:
(i) the assignment to the Participant of any duties or responsibilities that results in a diminution in the Participant’s position or function as in effect immediately prior to the effective date of a Change in Control (as defined in Section
7(e) below); provided, however, that a change in the Participant’s title or reporting relationships shall not provide the basis for a voluntary termination with Good Reason; (ii) a reduction by the Corporation, its Affiliates or any successor
to the Corporation in the Participant’s annual base salary, as in effect on the effective date of the Change in Control or as increased thereafter; (iii) any failure by the Corporation, its Affiliates or any successor to the Corporation to
continue in effect any benefit plan or program, including incentive plans or plans with respect to the receipt of securities of the Corporation, its Affiliates or any successor to the Corporation, in which the Participant was participating
immediately prior to the effective date of the Change in Control (hereinafter referred to as “Benefit Plans”), or the taking of any action by the Corporation, its Affiliates or any successor to the Corporation that would adversely affect
the Participant’s participation in or reduce the Participant’s benefits under the Benefit Plan or deprive the Participant of any fringe benefit that the Participant enjoyed immediately prior to the effective date of the Change in Control;

  

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provided, however, that no voluntary termination with Good Reason shall be deemed to have occurred if the Corporation, its Affiliates or any successor to the
Corporation provide for the Participant’s participation in benefit plans and programs, that, taken as a whole, are comparable to the Benefit Plans; (iv) a relocation of the Participant’s business office to a location more than 50 miles
from the location at which the Participant performs duties as of the effective date of the Change in Control, except for required travel by the Participant on the Corporation’s, its Affiliates’ or any successor to the Corporation’s
business to an extent substantially consistent with the Participant’s business travel obligations prior to the effective date of the Change in Control; or (v) a material breach by the Corporation, its Affiliates or any successor to the
Corporation of any provision of the Plan or the Option Agreement or any material agreement between the Participant and the Corporation, its Affiliates or any successor to the Corporation concerning the terms and conditions of the Participant’s
employment. 
  
 (s) “Incentive Stock Option”
means an Option described in Code section 422(b). 
  
 (t)
“Misconduct” means that the Administrator (or its delegate) has determined in its sole discretion that a Participant has (i) engaged in competition with the Corporation or an Affiliate, including, but not limited to, the rendering
of services for any organization or engaging directly or indirectly in any business that is or may be (in the reasonable discretion of the Administrator) directly or indirectly competitive with the Corporation or an Affiliate, (ii) induced any
customer of the Corporation or an Affiliate to breach any contract with the Corporation or an Affiliate or induced any employee of the Corporation or an Affiliate to be employed or perform services elsewhere, (iii) made any unauthorized disclosure
of any of the secrets or confidential information of the Corporation or an Affiliate, (iv) committed an act of embezzlement, fraud or theft with respect to the property of the Corporation or an Affiliate, or 

  

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(v) engaged in conduct which is not in good faith and which directly results in material loss, damage or injury to the business, reputation or employees of
the Corporation or an Affiliate. 
  
 (u) “Nonqualified
Stock Option” means an Option not described in Code section 422(b) or 423(b). 
  
 (v) “Option” means a stock option granted pursuant to Section 7. “Option Agreement” means the agreement between the Corporation and the Participant which contains the terms and
conditions pertaining to such Option. 
  
 (w) “Other
Share-Based Award” means an Award granted pursuant to Section 11. “Other Share-Based Award Agreement” means the agreement between the Corporation and the recipient of an Other Share-Based Award which contains the terms and
conditions pertaining to the Other Share-Based Award. 
  
 (x)
“Outside Director” means a Director who is not an Employee. 
  
 (y) “Participant” means an Employee or Director who has received an Award. 
  
 (z) “Performance Shares” means an Award denominated in Shares granted pursuant to Section 10 that may be earned in whole or in part based
upon attainment of performance objectives established by the Administrator pursuant to Section 13. “Performance Share Agreement” means the agreement between the Corporation and the recipient of the Performance Shares which contains
the terms and conditions pertaining to the Performance Shares. 
  
 (aa) “Plan” means this Potlatch Corporation 2005 Stock Incentive Plan. 
  
 (bb) “Purchase Price” means the Exercise Price times the number of whole Shares with respect to which an Option is exercised. 

 

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 (cc) “Restricted Stock” means Shares granted pursuant to Section 8. “Restricted
Stock Agreement” means the agreement between the Corporation and the recipient of Restricted Stock which contains the terms, conditions and restrictions pertaining to the Restricted Stock. 
  
 (dd) “Restricted Stock Unit” means an Award denominated in
Shares granted pursuant to Section 9 in which the Participant has the right to receive a specified number of Shares over a specified period of time. “Restricted Stock Unit Agreement” means the agreement between the Corporation and
the recipient of the Restricted Stock Unit Award which contains the terms and conditions pertaining to the Restricted Stock Unit Award. 
  
 (ee) “Share” means one share of Common Stock, adjusted in accordance with Section 16 (if applicable). 
  
 (ff) “Share Equivalent” means a bookkeeping entry
representing a right to the equivalent of one Share. 
  
 (gg)
“Stock Right” means a right to receive an amount equal to the value of a specified number of Shares which will be payable in Shares or cash as established by the Administrator. 
  
 (hh) “Subsidiary” means any corporation in an unbroken chain
of corporations beginning with the Corporation if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 
  

	3.	EFFECTIVE DATE. 

  
 This Plan was adopted by the Board on December 2, 2004, to be effective immediately, subject to approval by the Corporation’s stockholders.

  

 6 

	4.	ADMINISTRATION. 

  

	 	(a)	Administration with respect to Outside Directors. 

  
 With respect to Awards to Outside Directors, the Plan shall be administered by (A) the Board or (B) the Nominating and Corporate Governance Committee of
the Board. Notwithstanding the foregoing, all Awards made to members of the Nominating and Corporate Governance Committee shall be approved by the Board. 
  

	 	(b)	Administration with respect to Employees. 

  
 With respect to Awards to Employees, the Plan shall be administered by (A) the Board or (B) the Executive Compensation and Personnel Policies Committee of
the Board. 
  
 (i) If any member of the Executive
Compensation and Personnel Policies Committee does not qualify as an “outside director” for purposes of Code section 162(m), Awards under the Plan for the Covered Employees shall be administered by a subcommittee consisting of each
Executive Compensation and Personnel Policies Committee member who qualifies as an “outside director.” If fewer than two Executive Compensation and Personnel Policies Committee members qualify as “outside directors,” the Board
shall appoint one or more other Board members to such subcommittee who do qualify as “outside directors,” so that the subcommittee will at all times consist of two or more members all of whom qualify as “outside directors” for
purposes of Code section 162(m). 
  
 (ii) If any
member of the Executive Compensation and Personnel Policies Committee does not qualify as a “non-employee director” for purposes of Rule 16b-3 promulgated under the Exchange Act, then Awards under the Plan for the executive officers of the
Corporation and Directors shall be administered by a subcommittee 

  

 7 

 
consisting of each Executive Compensation and Personnel Policies Committee member who qualifies as a “non-employee director.” If fewer than two
Executive Compensation and Personnel Policies Committee members qualify as “non-employee directors,” then the Board shall appoint one or more other Board members to such subcommittee who do qualify as “non-employee directors,” so
that the subcommittee will at all times consist of two or more members all of whom qualify as “non-employee directors” for purposes of Rule 16b-3 promulgated under the Exchange Act. 
  

	 	(c)	Powers of the Administrator. 

  
 The Administrator shall from time to time at its discretion make determinations with respect to Employees and Directors who shall be granted Awards, the
number of Shares or Share Equivalents to be subject to each Award, the vesting of Awards, the designation of Options as Incentive Stock Options or Nonqualified Stock Options and other conditions of Awards to Employees and Directors. 
  
 The interpretation and construction by the Administrator of any provisions of
the Plan or of any Award shall be final. No member of a Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award. 
  

	 	(d)	Claims Administration. 

  
 Notwithstanding the foregoing, within 30 days after an event described in Section 7(e)(i) through (iv), the Committee shall appoint an independent
committee consisting of at least three current (as of the effective date of such event) or former officers and Directors of the Corporation, which shall thereafter administer all claims for benefits under the Plan. Upon such appointment the
Administrator shall cease to have any responsibility for claims administration under the Plan but shall continue to administer the Plan. 
  

 8 

	5.	ELIGIBILITY. 

  
 Subject to the terms and conditions set forth below, Awards may be granted to Employees and Directors. Notwithstanding the foregoing, only employees of
the Corporation and its Subsidiaries may be granted Incentive Stock Options. 
  

	 	(a)	Ten Percent Stockholders. 

  
 An Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Corporation, its parent or any of its
Subsidiaries is not eligible to receive an Incentive Stock Option pursuant to this Plan. For purposes of this Section 5(a) the stock ownership of an Employee shall be determined pursuant to Code section 424(d). 
  

	 	(b)	Number of Awards. 

  
 A Participant may receive more than one Award, including Awards of the same type, but only on the terms and subject to the restrictions set forth in the
Plan. Subject to adjustment as provided in Section 16, the maximum aggregate number of Shares or Share Equivalents that may be subject to Awards to a Participant in any calendar year is 250,000 Shares. 
  

	6.	STOCK. 

  
 The stock subject to Options, Restricted Stock, or Other Share-Based Awards granted under the Plan shall be Shares of the Corporation’s authorized
but unissued or reacquired Common Stock. The aggregate number of Shares subject to Options, Restricted Stock or Other Share-Based Awards issued under this Plan shall not exceed 1,600,000 Shares. If any outstanding Option under the Plan for any
reason expires or is terminated or any Restricted Stock or Other Share-Based Award is forfeited and under the terms of the expired or terminated Award the Participant received no benefits of ownership during the period the Award was outstanding,
then the Shares allocable to the unexercised portion of such Option or the forfeited Restricted 

  

 9 

 
Stock or Other Share-Based Award may again be subjected to Options, Restricted Stock or Other Share-Based Awards under the Plan. However, if one Award is
granted in tandem with another Award, so that the exercise of one causes the other to expire, then the number of Shares subject to the expired Award shall not be restored to the pool available for Awards. 
  
 The limitations established by this Section 6 shall be subject to adjustment
as provided in Section 16. 
  

	7.	TERMS AND CONDITIONS OF OPTIONS. 

  
 Options granted to Employees and Directors pursuant to the Plan shall be evidenced by written Option Agreements in such form as the Administrator shall
determine, subject to the following terms and conditions: 
  

	 	(a)	Number of Shares. 

  
 Each Option shall state the number of Shares to which it pertains, which shall be subject to adjustment in accordance with Section 16. 
  

	 	(b)	Exercise Price. 

  
 Each Option shall state the Exercise Price, determined by the Administrator, which shall not be less than the Fair Market Value of a Share on the date of
grant, except as provided in Section 16. 
  

	 	(c)	Medium and Time of Payment. 

  
 The Purchase Price shall be payable in full in United States dollars upon the exercise of the Option; provided that with the consent of the Administrator
and in accordance with its rules and regulations, the Purchase Price may be paid by the surrender of Shares in good form for transfer, owned by the person exercising the Option and having a Fair Market Value on the date of exercise equal to the
Purchase Price, or in any combination of cash and Shares, so long as the 

  

 10 

 
total of the cash and the Fair Market Value of the Shares surrendered equals the Purchase Price. No Share shall be issued until full payment has been made.

  

	 	(d)	Term and Exercise of Options: Nontransferability of Options. 

  
 Each Option shall state the time or times when it becomes exercisable. No Option shall be exercisable after the expiration of 10 years from the date it is
granted. During the lifetime of the Participant, the Option shall be exercisable only by the Participant and shall not be assignable or transferable. In the event of the Participant’s death, any Option shall be transferred to the Beneficiary
designated by the Participant for this purpose. 
  

	 	(e)	Change in Control. 

  
 Subject to Section 7(d), in the event that a Participant’s employment or service with the Corporation is involuntarily terminated without Cause or
voluntarily terminated for Good Reason within one month prior to or 24 months following the effective date of a Change in Control (defined below) that is at least six months following the date of grant of the Option, the Participant shall have the
right to exercise the Option (or to call the related stock appreciation right as described in Section 7(j)) in whole or in part. For purposes of the Plan, a “Change in Control” means the occurrence of one or more of the following:

  
 (i) The consummation of a reorganization,
merger or consolidation involving the Corporation (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 then outstanding voting securities of the Corporation entitled to vote generally in the election of Directors (the “Outstanding Voting
Securities”) immediately prior to such Business Combination beneficially own, 

  

 11 

 
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 Corporation either
directly or through one or more subsidiaries), (B) no Person (as defined in subparagraph (iii) below) (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) sponsored or maintained by the
Corporation 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) That individuals who, as of December 2, 2004 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 December 2, 2004 whose election, or nomination for election by the Corporations stockholders, was approved by a vote of at least a
majority of the Directors then comprising the Incumbent 

  

 12 

 
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 
  
 (iii) The acquisition after December 2, 2004 by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of 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 subsection (iii): (x) any acquisition of Outstanding Common Stock or Outstanding Voting Securities by the Corporation, (y) any acquisition of Outstanding Common Stock or Outstanding Voting Securities by any employee benefit plan (or
related trust) sponsored or maintained by the Corporation, (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 subsection (i)
of this Section 7(e); or 
  
 (iv) The
consummation of the sale of all or substantially all of the assets of the Corporation or approval by the stockholders of the Corporation of a complete liquidation or dissolution of the Corporation. 
  

 13 

	 	(f)	Termination of Employment Except Death. 

  
 (i) In the event that a Participant who is an Employee ceases to be employed by the Corporation or any of its Affiliates for any reason
other than death, such Participant shall have the right (subject to the limitations of Section 7(d) above) to exercise the Option either: 
  

	 	(a)	within three months after such termination of employment; or 

  

	 	(b)	in the case of Early, Normal or Late Retirement under the Salaried Employees’ Retirement Plan, or Disability, at any time before the end of the option period specified in the
Option Agreement, 

  
 to the extent that, at the
date of termination of employment, the Option had vested pursuant to the terms of the Option Agreement with respect to which such Option was granted and had not previously been exercised. However, in addition to the rights and obligations
established in Section 14 below, if the employment of a Participant is terminated by the Corporation or an Affiliate by reason of Misconduct, such Option shall cease to be exercisable at the time of the Participant’s termination of employment.
The Administrator (or its delegate) shall determine whether a Participant’s employment is terminated by reason of Misconduct. In making such determination the Administrator (or its delegate) shall act fairly and shall give the Participant an
opportunity to be heard and present evidence on his or her behalf. If a Participant’s employment terminates for reasons other than Misconduct, but Misconduct is discovered after the termination and is determined to have occurred by the
Administrator (or its delegate), all outstanding Options shall cease to be exercisable upon such determination. 
  
 For purposes of this Section, the employment relationship will be treated as continuing while the Participant is on military leave, sick
leave (including short term 

  

 14 

 
disability) or other bona fide leave of absence (to be determined in the sole discretion of the Administrator, in accordance with rules and regulations
construing Code section 422(a)(2)). Notwithstanding the foregoing, in the case of an Incentive Stock Option, employment shall not be deemed to continue beyond three months after the Participant ceased active employment, unless the Participant’s
reemployment rights are guaranteed by statute or by contract. 
  
 (ii) In the event an Outside Director terminates services as a Director for any reason other than death, the former Director shall have the right (subject to the limitations of Section 7(d) above) to exercise the
Option either: 
  

	 	(a)	within three months after such termination, 

  
 or 
  

	 	(b)	in the case of termination after five years of service as an Outside Director, any time before the end of the option period specified in the Option Agreement,

  
 to the extent that, at the date of termination
the Option had vested pursuant to the terms of the Option Agreement and had not previously been exercised. However, if the services of the Outside Director are terminated by the Board for cause in accordance with the Corporation’s Restated
Certificate of Incorporation, such Option shall cease to be exercisable at the time of the Outside Director’s termination of services. 
  

	 	(g)	Death of Participant. 

  
 (i) If a Participant who is an Employee dies while in the employ of the Corporation or an Affiliate, the Option may be exercised at any
time before the end of the option period as specified in the Option Agreement by the Participant’s designated 

  

 15 

 
Beneficiary, to the extent that, at the date of the Participant’s death, the Option had vested pursuant to the terms of the Option Agreement and had not
previously been exercised. 
  
 (ii) In the event
the Outside Director’s services terminate by reason of death, the Option may be exercised at any time before the end of the option period specified in the Option Agreement by the Director’s designated Beneficiary, to the extent that, at
the date of the Director’s death, the Option had vested pursuant to the terms of the Option Agreement and had not previously been exercised. 
  

	 	(h)	Rights as a Stockholder. 

  
 A Participant or a transferee of a Participant shall have no rights as a stockholder with respect to any Shares covered by his or her Option until the
date of issuance of a stock certificate for such Shares. No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as provided in Section 16.

  

	 	(i)	Modification, Extension and Renewal of Options. 

  
 Subject to the terms and conditions and within the limitations of the Plan, including the limitations of Section 20, the Administrator may modify, extend
or renew outstanding Options granted to Employees and Directors under the Plan. Notwithstanding the foregoing, however, no modification of an Option shall, without the consent of the Participant, alter or impair any rights or obligations under any
Option previously granted under the Plan. 
  

	 	(j)	Stock Appreciation Rights. 

  
 Each Option granted under the Plan may include a stock appreciation right that may be exercised only following the applicable Change in Control and
termination events described in Section 7(e). Following such events, the Participant shall have the right to surrender all or part 

  

 16 

 
of the Option and to exercise the stock appreciation right (the “call”) to obtain payment from the Corporation of an amount equal to the difference
obtained by subtracting the aggregate Exercise Price of the Shares subject to the Option (or the portion of such Option) surrendered from the Fair Market Value of such Shares on the date of such surrender. In the case of a stock appreciation right
called after the applicable Change in Control and termination events described in Section 7(e) above, “Fair Market Value” for purposes of this Subsection (j) shall be the greater of (A) the Fair Market Value of such Shares as of the date
immediately prior to the events described in Section 7(e) above, or (B) the value of such Shares determined as of the date of the call in good faith by the Administrator (as composed on the day preceding the date of the events described in Section
7(e) above), taking into consideration all relevant facts and circumstances. The call of such stock appreciation right shall be subject to such limitations (including, but not limited to, limitations as to time and amount) as the Administrator shall
deem appropriate. The payment may be made in shares of Common Stock (determined with reference to its Fair Market Value on the date of call), or in cash, or partly in cash and in shares of Common Stock, at the discretion of the Administrator,
provided that the Administrator determines that such settlement is consistent with the purpose set forth in Section 1, and provided further, that if the stock appreciation right is called after the applicable Change in Control and termination events
described in Section 7(e), the payment shall be made in cash. For all purposes under the Plan, the terms “exercise” or “exercisable” shall be deemed to include the terms “call” or “callable” as such terms may
apply to a stock appreciation right, and in the event of the call of a stock appreciation right, the underlying Option will be deemed to have been exercised for all purposes under the Plan. 
  

 17 

	 	(k)	Limitation of Incentive Stock Option Awards. 

  
 If and to the extent that the aggregate Fair Market Value (determined as of the date the Option is granted) of the Shares with respect to which any
Incentive Stock Options are exercisable for the first time by a Participant during any calendar year under this Plan and all other plans maintained by the Corporation, its parent or its Subsidiaries exceeds $100,000, the excess (taking into account
the order in which they were granted) shall be treated as nonqualified stock options. 
  

	 	(l)	Other Provisions. 

  
 The Option Agreement shall contain such other provisions that are consistent with the terms of the Plan, including, without limitation, restrictions upon
the exercise of the Option, as the Administrator shall deem advisable. 
  

	8.	RESTRICTED STOCK. 

  

	 	(a)	Grants. 

  
 Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the Employees and Directors to whom, and the
time or times at which, grants of Restricted Stock will be made, the number of shares of Restricted Stock to be awarded, the price (if any) to be paid by the recipient of Restricted Stock, the time or times within which such Awards may be subject to
forfeiture, and all other terms and conditions of the Awards. The Administrator may condition the grant of Restricted Stock upon the attainment of specified performance objectives established by the Administrator pursuant to Section 13 or such other
factors as the Administrator may determine, in its sole discretion. 
  
 The terms of each Restricted Stock Award shall be set forth in a Restricted Stock Agreement between the Corporation and the Participant, which Agreement shall contain such 

  

 18 

 
provisions as the Administrator determines to be necessary or appropriate to carry out the intent of the Plan. Each Participant receiving a Restricted Stock
Award shall be issued a stock certificate in respect of such shares of Restricted Stock. Such certificate shall be registered in the name of such Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Award. The Administrator shall require that stock certificates evidencing such shares be held by the Corporation until the restrictions lapse and that, as a condition of any Restricted Stock Award, the Participant shall deliver to
the Corporation a stock power relating to the stock covered by such Award. 
  

	 	(b)	Restrictions and Conditions. 

  
 The shares of Restricted Stock awarded pursuant to this Section 8 shall be subject to the following restrictions and conditions: 
  
 (i) During a period set by the Administrator commencing with
the date of such Award (the “Restriction Period”), the Participant shall not be permitted to sell, transfer, pledge, assign or encumber shares of Restricted Stock awarded under the Plan. Within these limits, the Administrator, in its sole
discretion, may provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions in whole or in part, based on service, performance, a change of control of the Corporation or such other factors or criteria as
the Administrator may determine in its sole discretion. 
  
 (ii) Except as provided in this paragraph (ii) and paragraph (i) above, the Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a stockholder of the Corporation, including the
right to vote the shares and the right to receive any cash dividends. The Administrator, in its sole discretion, as determined at the time of Award, may provide that the payment of cash dividends shall or may be deferred 

  

 19 

 
and, if the Administrator so determines, invested in additional shares of Restricted Stock to the extent available under Section 6, or otherwise invested.
Stock dividends issued with respect to Restricted Stock shall be treated as additional shares of Restricted Stock that are subject to the same restrictions and other terms and conditions that apply to the shares with respect to which such dividends
are issued. 
  
 (iii) The Administrator shall
specify the conditions under which shares of Restricted Stock shall vest or be forfeited and such conditions shall be set forth in the Restricted Stock Agreement. 
  
 (iv) If and when the Restriction Period applicable to shares of Restricted Stock expires without a prior
forfeiture of the Restricted Stock, certificates for an appropriate number of unrestricted Shares shall be delivered promptly to the Participant, and the certificates for the shares of Restricted Stock shall be canceled. 
  

	9.	RESTRICTED STOCK UNITS. 

  

	 	(a)	Grants. 

  
 Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the Employees and Directors to whom, and the
time or times at which, grants of Restricted Stock Units will be made, the number of Restricted Stock Units to be awarded, the price (if any) to be paid by the recipient of the Restricted Stock Units, the time or times within which such Restricted
Stock Units may be subject to forfeiture, and all other terms and conditions of the Restricted Stock Unit Awards. The Administrator may condition the grant of Restricted Stock Unit Awards upon the attainment of specified performance objectives
established by the Administrator pursuant to Section 13 or such other factors as the Administrator may determine, in its sole discretion. 
  

 20 

 The terms of each Restricted Stock Unit Award shall be set forth in a Restricted Stock Unit Award
Agreement between the Corporation and the Participant, which Agreement shall contain such provisions as the Administrator determines to be necessary or appropriate to carry out the intent of the Plan. With respect to a Restricted Stock Unit Award,
no certificate for shares of stock shall be issued at the time the grant is made (nor shall any book entry be made in the records of the Corporation) and the Participant shall have no right to or interest in shares of stock of the Corporation as a
result of the grant of Restricted Stock Units. 
  

	 	(b)	Restrictions and Conditions. 

  
 The Restricted Stock Units awarded pursuant to this Section 9 shall be subject to the following restrictions and conditions: 
  
 (i) At the time of grant of a Restricted Stock Unit Award,
the Administrator may impose such restrictions or conditions on the vesting of the Restricted Stock Units, as the Administrator deems appropriate. Within these limits, the Administrator, in its sole discretion, may provide for the lapse of such
restrictions in installments and may accelerate or waive such restrictions in whole or in part, based on service, performance, a change of control of the Corporation or such other factors or criteria as the Administrator may determine in its sole
discretion. 
  
 (ii) Dividend equivalents may be
credited in respect of Restricted Stock Units, as the Administrator deems appropriate. Such dividend equivalents may be converted into additional Restricted Stock Units by dividing (1) the aggregate amount or value of the dividends paid with respect
to that number of Shares equal to the number of Restricted Stock Units then credited by (2) the Fair Market Value per Share on the payment date for such dividend. The additional Restricted Stock Units credited by reason 

  

 21 

 
of such dividend equivalents will be subject to all of the terms and conditions of the underlying Restricted Stock Unit Award to which they relate.

  
 (iii) The Administrator shall specify the
conditions under which Restricted Stock Units shall vest or be forfeited and such conditions shall be set forth in the Restricted Stock Unit Agreement. 
  

	 	(c)	Deferral Election. 

  
 Each recipient of a Restricted Stock Unit Award shall be entitled to elect to defer all or a percentage of any Shares he or she may be entitled to receive
upon the lapse of any restrictions or vesting period to which the Award is subject. This election shall be made by giving notice in a manner and within the time prescribed by the Administrator. Each Participant must indicate the percentage
(expressed in whole percentages) he or she elects to defer of any Shares he or she may be entitled to receive. If no notice is given, the Participant shall be deemed to have made no deferral election. Each deferral election filed with the
Administrator shall become irrevocable on and after the prescribed deadline. 
  

	10.	PERFORMANCE SHARES. 

  

	 	(a)	Grants. 

  
 Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the Employees and Directors to whom, and the
time or times at which, grants of Performance Shares will be made, the number of Performance Shares to be awarded, the price (if any) to be paid by the recipient of the Performance Shares, the time or times within which such Performance Shares may
be subject to forfeiture, and all other terms and conditions of the Performance Share Awards. The Administrator may condition the grant of Performance Share Awards upon the attainment of specified performance objectives established by the 

  

 22 

 
Administrator pursuant to Section 13 or such other factors as the Administrator may determine, in its sole discretion. 
  
 The terms of each Performance Share Award shall be set forth in a Performance
Share Award Agreement between the Corporation and the Participant, which Agreement shall contain such provisions as the Administrator determines to be necessary or appropriate to carry out the intent of the Plan. With respect to a Performance Share
Award, no certificate for shares of stock shall be issued at the time the grant is made (nor shall any book entry be made in the records of the Corporation) and the Participant shall have no right to or interest in shares of stock of the Corporation
as a result of the grant of Performance Shares. 
  

	 	(b)	Restrictions and Conditions. 

  
 The Performance Shares awarded pursuant to this Section 10 shall be subject to the following restrictions and conditions: At the time of grant of a
Performance Share Award, the Administrator may set performance objectives in its discretion which, depending on the extent to which they are met, will determined the number of Performance Shares that will be paid out to the Participant. The time
period during which the performance objectives must be met will be called the “Performance Period.” After the applicable Performance Period has ended, the recipient of the Performance Shares will be entitled to receive the number of
Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives have been achieved. After the grant of a Performance Share Award, the
Administrator, in its sole discretion, may reduce or waive any performance objective for such Performance Share Award. 
  

 23 

	11.	OTHER SHARE-BASED AWARDS. 

  

	 	(a)	Grants. 

  
 Other Awards of Shares and other Awards that are valued in whole or in part by reference to, or are otherwise based on, Shares (“Other Share-Based
Awards”), may be granted either alone or in addition to or in conjunction with other Awards under this Plan. Awards under this Section 11 may include (without limitation) Stock Rights, the grant of Shares conditioned upon some specified event,
the payment of cash based upon the performance of the Shares or the grant of securities convertible into Shares. 
  
 Subject to the provisions of the Plan, the Administrator shall have sole and complete authority to determine the Employees and Directors to whom and the
time or times at which Other Share-Based Awards shall be made, the number of Shares or other securities, if any, to be granted pursuant to Other Share-Based Awards, and all other conditions of the Other Share-Based Awards. The Administrator may
condition the grant of an Other Share-Based Award upon the attainment of specified performance goals or such other factors as the Administrator shall determine, in its sole discretion. In granting an Other Share-Based Award, the Administrator may
determine that the recipient of an Other Share-Based Award shall be entitled to receive, currently or on a deferred basis, interest or dividends or dividend equivalents with respect to the Shares or other securities covered by the Award, and the
Administrator may provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested. The terms of any Other Share-Based Award shall be set forth in an Other Share-Based Award Agreement between
the Corporation and the Participant, which Agreement shall contain such provisions as the Administrator determines to be necessary or appropriate to carry out the intent of the Plan. 
  

 24 

	 	(b)	Terms and Conditions. 

  
 In addition to the terms and conditions specified in the Other Share-Based Award Agreement, Other Share-Based Awards shall be subject to the following:

  
 (i) Any Other Share-Based Award may not be
sold, assigned, transferred, pledged or otherwise encumbered prior to the date on which the Shares are issued or the Award becomes payable, or, if later, the date on which any applicable restriction, performance or deferral period lapses.

  
 (ii) The Other Share-Based Award Agreement
shall contain provisions dealing with the disposition of such Award in the event of termination of the Employee’s employment or the Director’s service prior to the exercise, realization or payment of such Award, and the Administrator in
its sole discretion may provide for payment of the Award in the event of the Participant’s retirement, Disability or death or the change of control of the Corporation, with such provisions to take account of the specific nature and purpose of
the Award. 
  

	12.	OTHER PAYMENTS IN SHARES. 

  
 Shares may be issued under this Plan to satisfy the payment of all or part of an award pursuant to the Potlatch Corporation Management Performance Award
Plan. In addition, all or part of any Director’s fees may be paid in Shares issued under this Plan. Any Shares issued pursuant to this Section 12 shall reduce the number of Shares authorized for Options, Restricted Stock or Other Share-Based
Awards under Section 6 but shall not be considered an Award for purposes of the maximum grant limitation in Section 5(b). 
  

 25 

	13.	PERFORMANCE OBJECTIVES. 

  
 The Administrator shall determine the terms and conditions of Awards at the date of grant or thereafter; provided that performance objectives for each
year, if any, shall be established by the Administrator not later than the latest date permissible under Code section 162(m). To the extent that such Awards are paid to Employees the performance objectives to be used, if any, shall be expressed in
terms of one or more of the following: total shareholder return; earnings per share; stock price; return on equity; net earnings; related return ratios; cash flow; net earnings growth; earnings before interest, taxes, depreciation and amortization
(EBITDA); return on assets; increase in revenues; decrease in expenses; increase in funds from operations (FFO); and increase in FFO per share. Performance objectives, if any, established by the Administrator may be (but need not be) different from
year-to-year, and different performance objectives may be applicable to different Participants. 
  

	14.	FORFEITURE ON ACCOUNT OF MISCONDUCT. 

  
 Notwithstanding any other provision of this Plan to the contrary, if the Participant engages in Misconduct prior to, or during the twelve month period
following, the exercise of the Option or the vesting of the Award without the Administrator’s (or its delegate’s) express written consent, the Administrator (or its delegate) may 
  
 (a) rescind the exercise of any Option exercised during the period beginning
twelve months prior to through 24 months after the Participant’s termination of employment or service with the Corporation or its Affiliates and cancel all outstanding Awards within 24 months after the Participant’s termination of
employment or service with the Corporation or its Affiliates, and 
  
 (b) demand that the Participant pay over to the Corporation the proceeds (less the Participant’s purchase price, if any) received by the Participant upon the sale, transfer or other 

  

 26 

 
transaction involving the Shares acquired upon the exercise of any Option exercised during the period beginning twelve months prior to through 24 months
after the Participant’s termination of employment or service with the Corporation or its Affiliates or the vesting of any Award within 24 months after the Participant’s termination of employment or service with the Corporation or its
Affiliates, in such manner and on such terms and conditions as may be required, and, without limiting any other remedy the Corporation or its Affiliates may have, the Corporation shall be entitled to set-off against the amount of any such proceeds
any amount owed the Participant by the Corporation or its Affiliates to the fullest extent permitted by law. 
  

	15.	TERM OF PLAN. 

  
 Awards may be granted pursuant to the Plan until the termination of the Plan on December 1, 2014. 
  

	16.	RECAPITALIZATION. 

  
 Subject to any required action by the stockholders, the number of Shares covered by this Plan as provided in Section 6, the maximum grant limitation in
Section 5(b), the number of Shares or Share Equivalents covered by or referenced in each outstanding Award, and the Exercise Price of each outstanding Option and any price required to be paid for Restricted Stock or Other Share-Based Award shall be
proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a subdivision or consolidation of Shares, the payment of a stock dividend (but only of Common Stock) or any other increase or decrease in the number
of such Shares effected without receipt of consideration by the Corporation or the declaration of a dividend payable in cash that has a material effect on the price of issued Shares. 
  
 Subject to any required action by the stockholders, if the Corporation shall be a party to any merger, consolidation or
other reorganization, each outstanding Award shall pertain and 

  

 27 

 
apply to the securities to which a holder of the number of Shares or Share Equivalents subject to the Award would have been entitled. In the event of a
change in the Common Stock as presently constituted, which is limited to a change of all of its authorized shares with par value into the same number of shares with a different par value or without par value, the shares resulting from any such
change shall be deemed to be the Common Stock within the meaning of the Plan. 
  
 To the extent that the foregoing adjustments relate to stock or securities of the Corporation, such adjustments shall be made by the Administrator, whose determination in that respect shall be final, binding and
conclusive, provided that each Incentive Stock Option granted pursuant to this Plan shall not be adjusted in a manner that causes the Option to fail to continue to qualify as an incentive stock option within the meaning of Code section 422.

  
 Except as expressly provided in this Section 16, a Participant
shall have no rights by reason of any subdivision or consolidation of shares of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class or by reason of any dissolution,
liquidation, merger or consolidation or spin-off of assets or stock of another corporation, and any issue by the Corporation of shares of stock of any class or securities convertible into shares of stock of any class, shall not affect the number or
price of Shares subject to the Option. 
  
 The grant of an Option
pursuant to the Plan shall not affect in any way the right or power of the Corporation to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge or consolidate or to dissolve, liquidate, sell
or transfer all or any part of its business assets. 
  

 28 

	17.	SECURITIES LAW REQUIREMENTS AND LIMITATION OF RIGHTS. 

  

	 	(a)	Securities Law. 

  
 No Shares shall be issued pursuant to the Plan unless and until the Corporation has determined that: (i) it and the Participant have taken all actions
required to register the Shares under the Securities Act of 1933 or perfect an exemption from registration; (ii) any applicable listing requirement of any stock exchange on which the Common Stock is listed has been satisfied; and (iii) any other
applicable provision of state or federal law has been satisfied. 
  

	 	(b)	Employment Rights. 

  
 Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain employed by the Corporation or an Affiliate
or to remain a Director. The Corporation and its Affiliates reserve the right to terminate the employment of any employee at any time, with or without cause or for no cause, subject only to a written employment contract (if any), and the Board
reserves the right to terminate a Director’s membership on the Board for cause in accordance with the Corporation’s Restated Certificate of Incorporation. 
  

	 	(c)	Stockholders’ Rights. 

  
 A Participant shall have no dividend rights, voting rights or other rights as a stockholder with respect to any Shares covered by his or her Award prior
to the issuance of a stock certificate for such Shares. No adjustment shall be made for cash dividends or other rights for which the record date is prior to the date when such certificate is issued. 
  

	 	(d)	Creditors’ Rights. 

  
 A holder of an Other Share-Based Award shall have no rights other than those of a general creditor of the Corporation. An Other Share-Based Award shall
represent an unfunded and unsecured obligation of the Corporation, subject to the terms and conditions of the 

  

 29 

 
applicable Other Share-Based Award Agreement. An Other Share-Based Award shall not be deemed to create a trust for the benefit of any individual. 

 

	18.	BENEFICIARY DESIGNATION. 

  
 Participants and their Beneficiaries may designate on the prescribed form one or more Beneficiaries to whom distribution shall be made of any Award
outstanding at the time of the Participant’s or Beneficiary’s death. A Participant or Beneficiary may change such designation at any time by filing the prescribed form with the Administrator. If a Beneficiary has not been designated or if
no designated Beneficiary survives the Participant or Beneficiary, distribution will be made to the residuary beneficiary under the terms of the Participant’s or Beneficiary’s last will and testament or, in the absence of a last will and
testament, to the Participant’s or Beneficiary’s estate as Beneficiary. 
  

	19.	AMENDMENT OF THE PLAN. 

  
 The Board may suspend or discontinue the Plan or revise or amend it with respect to any Shares at the time not subject to Awards except that, without
approval of the stockholders of the Corporation, no such revision or amendment shall: 
  
 (a) Increase the number of Shares subject to the Plan; 
  
 (b) Change the designation in Section 5 of the class of Employees eligible to receive Awards; 
  
 (c) Decrease the price at which Incentive Stock Options may be granted; 
  
 (d) Remove the administration of the Plan from the Administrator; or 
  
 (e) Amend this Section 19 to defeat its purpose. 
  
 The foregoing notwithstanding, the Plan may not be amended (including any
amendment of this Section 19) or terminated by the Board during the three-year period following an event 

  

 30 

 
described in Section 7(e)(i) through (iv) if such amendment or termination would alter the provision of this Section 19 or impair any outstanding rights
under any Awards previously granted under the Plan. 
  

	20.	NO AUTHORITY TO REPRICE. 

  
 Without the consent of the stockholders of the Corporation, except as provided in Section 16, the Administrator shall have no authority to effect either
(i) the repricing of any outstanding Options under the Plan or (ii) the cancellation of any outstanding Options under the Plan and the grant in substitution therefor of new Options under the Plan covering the same or different numbers of shares of
Common Stock. 
  

	21.	NO OBLIGATION TO EXERCISE OPTION. 

  
 The granting of an Option shall impose no obligation upon the Participant to exercise such Option. 
  

	22.	APPROVAL OF STOCKHOLDERS. 

  
 This Plan and any amendments requiring stockholder approval pursuant to Section 19 shall be subject to approval by affirmative vote of the stockholders.
Such vote shall be taken at the first annual meeting of stockholders of the Corporation following the adoption of the Plan or of any such amendments, or any adjournment of such meeting. 
  

	23.	PAYMENT OF EXCISE TAX. 

  
 If any payments or transfers to or for the benefit of a Participant are deemed an “excess parachute payment” as defined in Code section 280G
subject to the excise tax imposed by Code section 4999, the Corporation shall pay to the Participant an additional amount such that the total amount of all such payments and benefits (including payments made pursuant to this Section) to 

  

 31 

 
the Participant shall equal the total amount of all such payments and benefits to which the Participant would have been entitled (but for this Section) net
of all applicable federal, state and local taxes except the excise tax. For purposes of this Section, the Participant shall be deemed to pay federal, state and local taxes at the highest marginal rate of taxation for the applicable calendar year.
The amount of the payment to the Participant shall be estimated by the firm of independent certified public accountants [serving as the outside auditor of the Corporation], as of the date of the applicable Change in Control or termination events as
described in Section 7(e). 
  

	24.	WITHHOLDING TAXES. 

  

	 	(a)	General. 

  
 To the extent required by applicable law, the recipient of any payment or distribution under the Plan shall make arrangements satisfactory to the
Corporation for the satisfaction of any withholding tax obligations that arise by reason of such payment or distribution. The Corporation shall not be required to make such payment or distribution until such obligations are satisfied. 
  

	 	(b)	Other Awards. 

  
 The Administrator may permit a Participant who exercises Nonqualified Stock Options or who vests in Restricted Stock Awards to satisfy all or part of his
or her withholding tax obligations by having the Corporation withhold a portion of the Shares that otherwise would be issued to him or her under such Nonqualified Stock Options or Restricted Stock Awards. Such Shares shall be valued at the Fair
Market Value on the date when taxes otherwise would be withheld in cash. The payment of withholding taxes by surrendering Shares to the Corporation, if permitted by the Administrator, shall be subject to such restrictions as the Administrator may
impose, including any restrictions required by rules of the Securities and Exchange Commission. 
  

 32 

	25.	SUCCESSORS AND ASSIGNS. 

  
 The Plan shall be binding upon the Corporation, its successors and assigns, and any parent corporation of the Corporation’s successors or assigns.
Notwithstanding that the Plan may be binding upon a successor or assign by operation of law, the Corporation shall require any successor or assign to expressly assume and agree to be bound by the Plan in the same manner and to the same extent that
the Corporation would be if no succession or assignment had taken place. 
  

	26.	EXECUTION. 

  
 To record the adoption of the Plan effective December     , 2004, the Corporation has caused its authorized officer to execute
the same. 
  

			
	 POTLATCH CORPORATION

		
	 By
	 	 

  

 33

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