Document:

EXHIBIT 4.1

 Exhibit 4.1 
 CHASE ISSUANCE TRUST 
 as Issuing Entity 
 CLASS A(2007-16) TERMS DOCUMENT 
 dated as of October 9, 2007 
 to 
 AMENDED AND RESTATED 
 CHASESERIES INDENTURE SUPPLEMENT 
 dated as of October 15, 2004 
 to 
 SECOND AMENDED AND RESTATED 
 INDENTURE 
 dated as of March 14, 2006 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 as Indenture Trustee and Collateral Agent 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE
	ARTICLE I Definitions and Other Provisions of General Application	  	
			
	 Section 1.01
	  	 Definitions
	  	1
	 Section 1.02
	  	 Governing Law
	  	4
	 Section 1.03
	  	 Counterparts
	  	4
	 Section 1.04
	  	 Ratification of Indenture and Indenture Supplement
	  	4
		
	ARTICLE II The Class A(2007-16) Notes	  	
			
	 Section 2.01
	  	 Creation and Designation
	  	5
	 Section 2.02
	  	 Specification of Required Subordinated Amount and Other Terms
	  	5
	 Section 2.03
	  	 Interest Payment
	  	6
	 Section 2.04
	  	 Calculation Agent; Determination of LIBOR
	  	6
	 Section 2.05
	  	 Payments of Interest and Principal
	  	7
	 Section 2.06
	  	 Form of Delivery of Class A(2007-16) Notes; Depository; Denominations.
	  	8
	 Section 2.07
	  	 Delivery and Payment for the Class A(2007-16) Notes
	  	8
	 Section 2.08
	  	 Supplemental Indenture
	  	8

 THIS CLASS A(2007-16) TERMS DOCUMENT (this “Terms Document”), among the CHASE ISSUANCE TRUST, a
statutory trust created under the laws of the State of Delaware (the “Issuing Entity”), having its principal office at c/o Wilmington Trust Company, 1100 North Market Street, Wilmington, Delaware 19890-1600, and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, as indenture trustee (the “Indenture Trustee”) and as collateral agent (the “Collateral Agent”), is made and entered into as of October 9, 2007. 
 Pursuant to this Terms Document, the Issuing Entity and the Indenture Trustee shall create a new Tranche of CHASEseries Class A Notes and shall
specify the principal terms thereof. 
 ARTICLE I 
 Definitions and Other Provisions of General Application 
 Section 1.01 Definitions For all
purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise requires: 
 (1) the terms defined in
this Article have the meanings assigned to them in this Article, and include the plural as well as the singular; 
 (2) all other terms used
herein which are defined in the Indenture Supplement, the Indenture or the Asset Pool Supplement, either directly or by reference therein, have the meanings assigned to them therein; 
 (3) as used in this Terms Document and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in
this Terms Document or in any such certificate or other document, and accounting terms partly defined in this Terms Document or in any such certificate or other document to the extent not defined, shall have the respective meanings given to them
under GAAP. To the extent that the definitions of accounting terms in this Terms Document or in any such certificate or other document are inconsistent with the meanings of such terms under GAAP, the definitions contained in this Terms Document or
in any such certificate or other document shall control; 
 (4) the words “hereof,” “herein,” “hereunder” and
words of similar import when used in this Terms Document shall refer to this Terms Document as a whole and not to any particular provision of this Terms Document; references to any subsection, Section, clause, Schedule or Exhibit are references to
subsections, Sections, clauses, Schedules and Exhibits in or to this Terms Document unless otherwise specified; the term “including” means “including without limitation”; references to any law or regulation refer to that law or
regulation as amended from time to time and include any successor law or regulation; references to any Person include that Person’s successors and assigns; and references to any agreement refer to such agreement, as amended, supplemented or
otherwise modified from time to time; 

 (5) in the event that any term or provision contained herein shall conflict with or be inconsistent with
any term or provision contained in the Indenture Supplement, the Indenture or the Asset Pool Supplement, the terms and provisions of this Terms Document shall be controlling; and 
 (6) each capitalized term defined herein shall relate only to the Class A(2007-16) Notes and no other Tranche of CHASEseries Notes issued by the Issuing
Entity. 
 “Asset Pool Supplement” means the Amended and Restated Asset Pool One Supplement to the Indenture, dated as of
October 15, 2004, as amended by the First Amendment thereto, dated as of May 10, 2005, the Second Amendment thereto, dated as of February 1, 2006, and the Third Amendment thereto, dated as of September 27, 2007, by and among the
Issuing Entity, the Indenture Trustee and the Collateral Agent. 
 “Beneficiary” means Chase Bank USA, National Association,
in its capacity as beneficial owner of the Issuing Entity. 
 “Calculation Agent” is defined in Section 2.04(a).

 “Class A(2007-16) Adverse Event” means the occurrence of any of the following: (a) an Early Amortization Event with
respect to the Class A(2007-16) Notes, (b) an Event of Default and acceleration of the Class A(2007-16) Notes, (c) the Class A Usage of the Class B Required Subordinated Amount for the Class A(2007-16) Notes becomes greater than zero
or (d) the Class A Usage of the Class C Required Subordinated Amount for the Class A(2007-16) Notes becomes greater than zero. 
 “Class A(2007-16) Note” means any Note, substantially in the form set forth in Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2007-16) Note and duly executed and authenticated in accordance with
the Indenture. 
 “Class A(2007-16) Noteholder” means a Person in whose name a Class A(2007-16) Note is registered in the
Note Register. 
 “Class A(2007-16) Termination Date” means the earliest to occur of (a) the Principal Payment Date on
which the Outstanding Dollar Principal Amount of the Class A(2007-16) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant to Article V thereof. 
 “Class A Required Subordinated Amount of Class B Notes” is defined in Section 2.02(a). 
 “Class A Required Subordinated Amount of Class C Notes” is defined in Section 2.02(b). 
 “Controlled Accumulation Amount” means $47,916,666.67; provided, however, if the Accumulation Period Length is determined
to be less than twelve months pursuant to Section 3.12(b)(ii) of the Indenture Supplement, the Controlled Accumulation 

  

 2 

 
Amount for any Note Transfer Date with respect to the Class A(2007-16) Notes will be the amount specified in the definition of “Controlled Accumulation
Amount” in the Indenture Supplement. 
 “Indenture” means the Second Amended and Restated Indenture, dated as of
March 14, 2006, between the Issuing Entity and the Indenture Trustee. 
 “Indenture Supplement” means the Amended and
Restated CHASEseries Indenture Supplement, dated as of October 15, 2004, among the Issuing Entity, the Indenture Trustee and the Collateral Agent. 
 “Initial Dollar Principal Amount” means $575,000,000. 
 “Interest Payment Date” means December 17, 2007 and the 15th day of each March, June, September and December thereafter, or if such 15th day is not a Business Day, the next succeeding Business
Day; provided, however, that if an Early Amortization Event or an Event of Default and acceleration of the Class A(2007-16) Notes shall have occurred, the “Interest Payment Date” shall mean the 15th day of each month thereafter, or if such 15th day is not a Business Day, the next
succeeding Business Day, beginning in the month following the Monthly Period during which such Early Amortization Event or acceleration occurs. 
 “Interest Period” means, with respect to any Interest Payment Date, the period from and including the previous Interest Payment Date (or in the case of the initial Interest Payment Date, from and
including the Issuance Date) to but excluding such Interest Payment Date. 
 “Issuance Date” means October 9, 2007.

 “Legal Maturity Date” means June 16, 2014. 
 “LIBOR” means, for any Interest Period, the London interbank offered rate for three-month United States dollar deposits determined by
the Calculation Agent on the LIBOR Determination Date for each Interest Period in accordance with the provisions of Section 2.04. 
 “LIBOR Determination Date” means (1) October 5, 2007 for the period from and including the Issuance Date through but excluding December 17, 2007 and (2) for each Interest Period thereafter, the second
London Business Day prior to the commencement of the second and each subsequent Interest Period. 
 “London Business Day”
means any Business Day on which dealings in deposits in United States Dollars are transacted in the London interbank market. 
 “Note
Interest Rate” means a rate per annum equal to 0.30% in excess of LIBOR, as determined by the Calculation Agent on the related LIBOR Determination Date with respect to each Interest Period. 
  

 3 

 “Paying Agent” means Wells Fargo Bank, National Association. 
 “Predecessor Note” means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 3.06 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same
debt as the mutilated, lost, destroyed or stolen Note. 
 “Record Date” means, for any Note Transfer Date, the last Business
Day of the preceding Monthly Period. 
 “Reference Banks” means four major banks in the London interbank market selected by
the Beneficiary. 
 “Reuters Screen LIBOR01 Page” means the display page so designated on the Reuters Monitor Money Rates
(or such other page as may replace that page on that service, or such other service as may be nominated as the information vendor, for the purposes of displaying rates comparable to LIBOR). 
 “Scheduled Principal Payment Date” means June 15, 2012. 
 “Stated Principal Amount” means $575,000,000. 
 Section 1.02 Governing Law THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 Section 1.03
Counterparts This Terms Document may be executed in any number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
 Section 1.04 Ratification of Indenture and Indenture Supplement As supplemented by this Terms Document, each of the Indenture, the Asset Pool
Supplement and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so supplemented by the Asset Pool Supplement and the Indenture Supplement as so supplemented by this Terms Document shall be read, taken and
construed as one and the same instrument. 
 [END OF ARTICLE I] 
  

 4 

 ARTICLE II 
 The Class A(2007-16) Notes 
 Section 2.01 Creation and Designation There is hereby created a
Tranche of CHASEseries Class A Notes to be issued pursuant to the Indenture and the Indenture Supplement to be known as the “CHASEseries Class A(2007-16) Notes.” 
 Section 2.02 Specification of Required Subordinated Amount and Other Terms 
 (a) For the Class A(2007-16) Notes for any date of determination, the Class A Required Subordinated Amount of Class B Notes will be an amount equal
to 6.49718% of (i) prior to the occurrence of a Class A(2007-16) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of the Class A(2007-16) Notes on such date of determination or (ii) on and after the date on which a Class
A(2007-16) Adverse Event shall have occurred, the greater of (1) the Adjusted Outstanding Dollar Principal Amount of the Class A(2007-16) Notes on such date of determination and (2) the Adjusted Outstanding Dollar Principal Amount of the
Class A(2007-16) Notes as of the close of business on the day immediately preceding the date on which such Class A(2007-16) Adverse Event shall have occurred. 
 (b) For the Class A(2007-16) Notes for any date of determination, the Class A Required Subordinated Amount of Class C Notes will be an amount equal to 6.49718% of (i) prior to the occurrence of a Class
A(2007-16) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of the Class A(2007-16) Notes on such date or (ii) on and after the date on which a Class A(2007-16) Adverse Event shall have occurred, the greater of (1) the
Adjusted Outstanding Dollar Principal Amount of the Class A(2007-16) Notes on such date of determination and (2) Adjusted Outstanding Dollar Principal Amount of the Class A(2007-16) Notes as of the close of business on the day immediately
preceding the date on which such Class A(2007-16) Adverse Event shall have occurred. 
 (c) The Issuing Entity may change the percentages or
the formulas set forth in either clause (a) or (b) above without the consent of any Noteholder so long as the Issuing Entity has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Notes that
the change in either of such percentages or formulas, as applicable, will not result in a Ratings Effect with respect to any Outstanding Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion
and an Issuing Entity Tax Opinion. 
  

 5 

 Section 2.03 Interest Payment 
 (a) For each Interest Payment Date, the amount of interest due with respect to the Class A(2007-16) Notes shall be an amount equal to the product of
(i) (A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, times, (B) the Note Interest Rate in effect with respect to the related Interest
Period, times, (ii) the Outstanding Dollar Principal Amount of the Class A(2007-16) Notes determined as of the close of business on the Interest Payment Date preceding the related Note Transfer Date for the Class A(2007-16) Notes;
provided, however, that for the first Interest Payment Date, the amount of interest due with respect to the Class A(2007-16) Notes shall be an amount equal to the product of (x) the Outstanding Dollar Principal Amount of the Class
A(2007-16) Notes on the Issuance Date, (y) 69 divided by 360 and (z) the Note Interest Rate in effect with respect to the Class A(2007-16) Notes determined on October 5, 2007. Interest on the Class A(2007-16) Notes will be calculated
on the basis of the actual number of days elapsed and a 360-day year. 
 (b) Pursuant to Section 3.03 of the Indenture Supplement, on
each Note Transfer Date with respect to the Class A(2007-16) Notes, the Indenture Trustee shall deposit into the Class A(2007-16) Interest Funding Sub-Account the portion of CHASEseries Available Finance Charge Collections allocable to the Class
A(2007-16) Notes. 
 Section 2.04 Calculation Agent; Determination of LIBOR 
 (a) The Issuing Entity hereby agrees that for so long as any Class A(2007-16) Notes are Outstanding, there shall at all times be an agent appointed to
calculate LIBOR for each Interest Period (the “Calculation Agent”). The Issuing Entity hereby initially appoints the Indenture Trustee as the Calculation Agent for purposes of determining LIBOR for each Interest Period. The Calculation
Agent may be removed by the Issuing Entity at any time. If the Calculation Agent is unable or unwilling to act as such or is removed by the Issuing Entity, or if the Calculation Agent fails to determine LIBOR for an Interest Period, the Issuing
Entity shall promptly appoint a replacement Calculation Agent that does not control or is not controlled by or under common control with the Issuing Entity or its Affiliates. The Calculation Agent may not resign its duties, and the Issuing Entity
may not remove the Calculation Agent, without a successor having been duly appointed. 
 (b) On each LIBOR Determination Date, the
Calculation Agent shall determine LIBOR on the basis of the rate for deposits in United States dollars for a three-month period (or, if an Early Amortization Event or an Event of Default and acceleration of the Class A(2007-16) Notes shall have
occurred, for a one-month period) which appears on Reuters Screen LIBOR01 Page or on such comparable system as is customarily used to quote LIBOR as of 11:00 a.m., London time, on such date. If such rate does not appear on Reuters Screen LIBOR01
Page or on a comparable system as is 

  

 6 

 
customarily used to quote LIBOR the rate for that LIBOR Determination Date shall be determined on the basis of the rates at which deposits in United States
dollars are offered by the Reference Banks at approximately 11:00 a.m., London time, on that day to prime banks in the London interbank market for a three-month period (or, if an Early Amortization Event or an Event of Default and acceleration of
the Class A(2007-16) Notes shall have occurred, for a one-month period). The Calculation Agent shall request the principal London office of each of the Reference Banks to provide a quotation of its rate. If at least two such quotations are provided,
the rate for that LIBOR Determination Date shall be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that LIBOR Determination Date will be the arithmetic mean of the rates quoted by major
banks in New York City, selected by the Beneficiary, at approximately 11:00 a.m., New York City time, on that day for loans in United States dollars to leading European banks for a three-month period (or, if an Early Amortization Event or an Event
of Default and acceleration of the Class A(2007-16) Notes shall have occurred, for a one-month period). 
 (c) The Note Interest Rate
applicable to the then current and the immediately preceding Interest Periods may be obtained by telephoning the Indenture Trustee at its corporate trust office at (612) 667-8058 or such other telephone number as shall be designated by the
Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to each Noteholder from time to time. 
 (d) On each
LIBOR Determination Date, the Calculation Agent shall send to the Indenture Trustee and the Beneficiary, via email or by facsimile transmission, notification of LIBOR for the following Interest Period. 
 Section 2.05 Payments of Interest and Principal 
 (a) Any installment of interest or principal payable on any Class A(2007-16) Note which is punctually paid or duly provided for by the Issuing Entity and the Indenture Trustee on the applicable Interest Payment Date
or Principal Payment Date shall be paid by the Paying Agent to the Person in whose name such Class A(2007-16) Note (or one or more Predecessor Notes) is registered on the Record Date, by wire transfer of immediately available funds to such
Person’s account as has been designated by written instructions received by the Paying Agent from such Person not later than the close of business on the third Business Day preceding the date of payment or, if no such account has been so
designated, by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of
Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated by such nominee. 
 (b)
The right of the Class A(2007-16) Noteholders to receive payments from the Issuing Entity will terminate on the first Business Day following the Class A(2007-16) Termination Date. 
  

 7 

 Section 2.06 Form of Delivery of Class A(2007-16) Notes; Depository; Denominations.

 (a) The Class A(2007-16) Notes shall be delivered in the form of a global Registered Note as provided in Sections 2.02 and 3.01(i) of the
Indenture, respectively. 
 (b) The Depository for the Class A(2007-16) Notes shall be The Depository Trust Company, and the Class A(2007-16)
Notes shall initially be registered in the name of Cede & Co., its nominee. 
 (c) The Class A(2007-16) Notes will be issued in
minimum denominations of $100,000 and integral multiples of $1,000 in excess of $100,000. 
 Section 2.07 Delivery and Payment for
the Class A(2007-16) Notes The Issuing Entity shall execute and deliver the Class A(2007-16) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2007-16) Notes when authenticated, each in
accordance with Section 3.03 of the Indenture. 
 Section 2.08 Supplemental Indenture The Issuing Entity may enter into a
supplemental indenture with respect to the Class A(2007-16) Notes as provided in Section 9.01 of the Indenture; provided, however, that any supplemental indenture which provides for an additional or alternative form of credit
enhancement for the Class A(2007-16) Notes shall, in addition to the requirements set forth in Section 9.01 of the Indenture, require confirmation from the Note Rating Agencies that have rated any Outstanding Notes of the CHASEseries that such
change in credit enhancement will not result in a Ratings Effect with respect to any Outstanding Notes of the CHASEseries. 
 [END OF ARTICLE
II] 
  

 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all as of the
day and year first above written. 
  

			
	CHASE ISSUANCE TRUST
		
	By:	 	 CHASE BANK USA, NATIONAL ASSOCIATION,
 as Beneficiary and not in its individual capacity

		
	By:	 	 /s/ Keith W. Schuck

	Name:	 	Keith W. Schuck
	Title:	 	President
	
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as Indenture Trustee and Collateral Agent

		
	By:	 	 /s/ Cheryl C. Zimmerman

	Name:	 	Cheryl C. Zimmerman, CCTS
	Title:	 	Assistant Vice President

 Chase Issuance Trust 
 CHASEseries Class A (2007-16) Terms Document 
 Signature PageExecutive Incentive Compensation Plan

 Exhibit 10.1 
 POPE & TALBOT, INC. 
 EXECUTIVE INCENTIVE COMPENSATION PLAN 
 Section 1. Purposes 
 The purposes of the
Pope & Talbot, Inc. Executive Incentive Compensation Plan (the “Plan”) are (i) to provide greater motivation for select management employees of Pope & Talbot, Inc. (the “Company”) and
(ii) to direct the energies of employees toward the achievement of specific business goals established for the Company and its Subsidiaries (as defined in Section 7 below). 
 The Plan shall be effective as of October 1, 2007 (the “Effective Date”). 
 Section 2. Administration and Interpretation 
 (a) The Plan shall be administered by the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the “Board”), which shall consist of at least two individuals who are not and
have never been employees of the Company and who shall serve at the pleasure of the Board. 
 (b) The Committee is authorized to interpret
the Plan and may from time to time adopt such rules and regulations for carrying out the Plan as it may deem necessary or advisable. Decisions of the Committee shall be final, conclusive and binding upon all parties, including, without limitation,
the Company and the employees who participate in the Plan. 
 Section 3. Participation 
 (a) The eligibility of employees to participate in the Plan shall be determined by the Committee in its discretion (“Participants”). As
of the Effective Date, Participants shall at a minimum include the following executives of the Company: 
  

	 	•	 	 President and Chief Executive Officer 

  

	 	•	 	 Vice President and Chief Financial Officer 

  

	 	•	 	 VP – General Manager – Pulp Division 

  

	 	•	 	 Vice President – Human Resources 

  

	 	•	 	 Controller 

  

	 	•	 	 Vice President – Information Technology 

  

	 	•	 	 Director of Tax 

 (b) If an employee
first becomes eligible to participate in the Plan after the beginning of a calendar quarter, then such employee shall become a Participant in the Plan and shall be eligible for quarterly bonus awards beginning with the calendar quarter next
following the date on which the Participant first becomes eligible to participate in the Plan. Unless 

  

 1 

 
otherwise determined by the Committee, such Participant shall also be entitled to a pro rata quarterly bonus award for initial calendar quarter of
participation. Such pro rata quarterly bonus award shall be equal to the EBITDAR (as defined in Section 7 below) portion of the quarterly bonus award the Participant would have been entitled to receive under the Plan had he or she been a
Participant for the entire calendar quarter, multiplied by a fraction, the numerator of which is the number of calendar days remaining in such calendar quarter, determined from the date the Participant commenced participation in the Plan, and the
denominator of which is the total number of calendar days in such calendar quarter. 
 Section 4. Quarterly Bonus Awards 
 (a) Subject to a Participant’s continued employment in good standing with the Company, Participants shall vest in the right to payment of a quarterly
bonus award on each of January 1, 2008, April 1, 2008, July 1, 2008, October 1, 2008, January 1, 2009 and April 1, 2009 (each, a “Vesting Date”) with respect to the calendar quarter
ending immediately prior to such Vesting Date. The amount of each quarterly bonus award shall be equal to a specified percentage of the Participant’s annual base salary in effect as of the beginning of the calendar quarter for which the bonus
award is being paid (“Base Salary”). 
 (b) The Committee shall determine the percentage of Base Salary used to calculate
the amount of quarterly bonus awards in accordance with Section 5. 
 (c)
Quarterly bonus awards shall be paid to Participants in cash in a single lump sum on the thirtieth (30th) day of the calendar month containing the
Vesting Date (each, a “Payment Date”). If a Participant dies before such bonus is paid, the cash amount shall be paid to the Participant’s surviving spouse or, if the Participant is not married at the time of his or her death,
the Participant’s estate. 
 Section 5. Determination of Quarterly Bonus Awards 
 (a) Target Award. The Committee shall establish a target level award, expressed as a percentage of Base Salary (the “Target
Award”), for each Participant. The actual amount of the quarterly bonus awards paid to a Participant under the Plan may be higher or lower than the Target Award for such Participant depending on the actual performance results achieved for
the applicable calendar quarter. Unless otherwise determined by the Committee, the Target Awards for Participants shall be as follows: 
  

			
	President and Chief Executive Officer	  	37.50% of Base Salary
		
	Vice President and Chief Financial Officer	  	33.33% of Base Salary
		
	VP – General Manager – Pulp Division	  	25.00% of Base Salary
		
	Vice President of Human Resources	  	25.00% of Base Salary
		
	Controller	  	25.00% of Base Salary
		
	Vice President – Information Technology	  	16.67% of Base Salary
		
	Director of Tax	  	16.67% of Base Salary

  

 2 

 Unless otherwise determined by the Committee, the Target Award for Participants other than those executive officers
listed above shall be 16.67% of Base Salary. 
 (b) Actual Award. (i) The Committee shall determine the actual amount of the
quarterly bonus award to be paid to each Participant under the Plan. In making such determination, the Committee shall multiply the Target Award by a percentage (the “Performance Percentage”). The amount of the Performance
Percentage shall be dependent 50% upon EBITDAR (as defined in Section 7 below) and 50% upon individual performance targets for the applicable calendar quarter. 
 (ii) Within 15 days after the Effective Date, the Committee shall establish EBITDAR targets for the first three calendar quarters for
which quarterly bonus awards are payable under the Plan, and shall establish EBITDAR targets for the final three calendar quarters for which quarterly bonus awards are payable under the Plan not later than March 1, 2008. The Committee shall
notify Participants in writing of the applicable EBITDAR target prior to the beginning of each calendar quarter for which a quarterly bonus award is payable; provided, however, that Participants shall be notified in writing of the
EBITDAR target for the fourth calendar quarter of 2007 not later than 15 days after the Effective Date. 
 (iii) Within 15
days after the Effective Date, the Committee shall establish individual performance objectives for the fourth calendar quarter of 2007, and shall notify Participants in writing of such objectives not later than 15 days after the Effective Date. The
Committee shall establish individual performance objectives for the remaining calendar quarters for which quarterly bonus awards are payable under the Plan, and shall notify Participants in writing of the applicable individual performance
objectives, prior to the beginning of each such calendar quarter. 
 (iv) The Performance Percentage for a calendar quarter
shall equal the sum of the EBITDAR Percentage and Individual Percentage. 
 (v) The EBITDAR Percentage for a calendar quarter
shall be determined using the following chart: 
  

			
	 Actual EBITDAR Performance
 (expressed as a % of EBITDAR target)
	  	 EBITDAR Percentage

	 125% +
	  	70%
	 120%
	  	66%
	 115%
	  	62%
	 110%
	  	58%
	 105%
	  	54%
	 100%
	  	50%
	 95%
	  	47.5%
	 90%
	  	45%
	 85%
	  	42.5%
	 80%
	  	40%
	 75%
	  	37.5%
	 < 75%
	  	0%

  

 3 

 If actual EBITDAR expressed as a percentage of the EBITDAR target falls between any two of the above
benchmarks, the EBITDAR Percentage will be interpolated between the two corresponding EBITDAR Percentages. If the EBITDAR target for a calendar quarter is a negative amount, then actual EBITDAR performance as a percentage of target EBITDAR shall be
deemed to be equal to 200% minus the amount (expressed as a percentage) determined by dividing actual EBITDAR by target EBITDAR. 
 (vi) The Individual Percentage for a calendar quarter shall range from 0% to 50%, depending upon the weight assigned to each of the individual performance objectives and the Committee’s determination of whether the individual
performance objectives have been “fully achieved” or “not achieved.” 
 Section 6. Termination 
 (a) Termination for Cause; Voluntary Resignation without Good Reason. If, prior to April 1, 2009, a Participant incurs a Separation from
Service (as defined in Section 7 below) that results from his or her voluntary resignation without Good Reason (as defined in Section 7 below), or an involuntary termination of his or her employment with the PT Group (as defined in
Section 7 below) for Cause (as defined in Section 7 below), the Participant shall forfeit any right to quarterly bonus awards that have not already vested. 
 (b) Termination Other Than for Death, Disability or Cause; Voluntary Termination with Good Reason. If, prior to April 1, 2009, a Participant incurs a Separation from Service that results from an
involuntary termination of his or her employment with the PT Group other than for death, Disability (as defined in Section 7 below) or Cause, or from his or her voluntary resignation with Good Reason, the Participant shall forfeit the right to
quarterly bonus awards that have not already vested; provided, however, that such Participant shall be entitled to payment of a pro rata quarterly bonus award for the calendar quarter in which he or she is involuntarily
terminated without Cause or voluntarily resigns with Good Reason. The amount of such pro rata quarterly bonus award shall be equal to the quarterly bonus award the Participant would have been paid had he or she remained employed with the PT
Group through the applicable Payment Date based on the actual EBITDAR Percentage and an Individual Percentage of 50% for such calendar quarter, multiplied by a fraction, the numerator of which is the number of calendar days in such calendar quarter
up to and including the date of the Participant’s Separation from Service, and the denominator of which is the total number of calendar days in such calendar quarter. Payment of the pro rata quarterly bonus award on account of a
Participant’s involuntary Separation from Service will be made in accordance with Section 8. 
 (c) Death or Disability. If,
prior to April 1, 2009, a Participant dies or becomes Disabled, the Participant shall forfeit the right to quarterly bonus awards that have not already vested; provided, however, that such Participant shall be entitled to payment
of a pro rata quarterly bonus award for the calendar quarter in which he or she dies or becomes Disabled. The amount of such pro rata quarterly bonus award shall be equal to the quarterly bonus award 

  

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the Participant would have been paid had he or she remained employed with the PT Group through the applicable Payment Date based on the actual EBITDAR
Percentage and an Individual Percentage of 50% for such calendar quarter, multiplied by a fraction, the numerator of which is the number of calendar days in such calendar quarter up to and including the date of the Participant’s death or
Disability, and the denominator of which is the total number of calendar days in such calendar quarter. Payment of a pro rata quarterly bonus award on account of a Participant’s death or Disability shall be made in cash in a single lump
sum on the thirtieth (30th) day of the calendar month next following the end of the calendar quarter in which the Participant dies or becomes
Disabled. 
 Section 7. Definitions 
 Capitalized terms not otherwise specifically defined in this Plan shall have the meaning ascribed to them below: 
 (a)
“Cause” means (i) the willful and continued failure by a Participant to substantially perform his or her duties with the PT Group after a specific, written demand is developed; (ii) the willful engaging by a Participant in
conduct which is demonstrably and materially injurious to the PT Group, monetarily or otherwise; or (iii) a Participant’s conviction of a felony which impairs his or her ability substantially to perform his or her duties with the PT Group.

 (b) “Disability” and “Disabled” means that a Participant (i) 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 can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any
medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three
months under an accident and health plan covering employees of the PT Group, in either case as determined by the Company in its sole discretion. 
 (c) “EBITDAR” means the Company’s consolidated operating income before interest income and expense, income tax expense, depreciation expense, amortization of intangibles and professional fees and other expenses related
to bankruptcy or debt restructuring, excluding any extraordinary, infrequent or unusual non-cash expenses or losses, gains or losses on sales of property other than inventory, and write downs resulting from impairments of long-lived assets, all as
determined in accordance with U.S. generally accepted accounting principles applied in a manner consistent with the Company’s historical application of such principles. 
 (d) “Good Reason” means the occurrence of any of the following without the Participant’s written consent: (i) a change in the
Participant’s position with the Company which materially reduces his or her duties or level of responsibility or which otherwise changes the level of management to which he or she reports, (ii) a reduction of 20% or more in the
Participant’s compensation (including base salary, fringe benefits and target bonus opportunity under any incentive performance plan), or (iii) a change in the Participant’s place of employment which is more than fifty (50) miles
from his or her place of employment and not materially closer to the Participant’s principal residence. 
  

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 (e) “PT Group” means the Company and its Subsidiaries. 
 (f) “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, and the applicable rulings, guidance and
regulations promulgated thereunder. 
 (g) “Separation from Service” means a separation from service from the PT Group
within the meaning of the default rules of Section 409A. 
 (h) “Subsidiary” means any subsidiary or affiliate of the
Company that would be treated as a single service recipient with the Company under Section 409A and the default rules of Section 1.409A-1(h)(3) of the Treasury Regulations. 
 Section 8. Waiver and Release 
 The Company’s obligations to a Participant under
Section 6(b) are expressly conditioned upon the Participant’s timely execution and delivery to the Company of an irrevocable Confidentiality Agreement, Waiver and Release (relating to the Participant’s release of claims against the PT
Group) in a form reasonably satisfactory to the Company. The pro rata quarterly bonus award payable under Section 6(b) will be paid in cash in a single lump sum not later than March 15 of the calendar year following the calendar
year in which the Separation from Service occurs, provided that the Participant executes and delivers a Confidentiality Agreement, Waiver and Release to the Company that becomes irrevocable not later than March 1 of the calendar year following
the calendar year in which the Separation from Service occurs. If a Participant does not execute and deliver a Confidentiality Agreement, Waiver and Release to the Company that becomes irrevocable not later than March 1 of the calendar year
following the calendar year in which the Separation from Service occurs, the Participant’s right to any pro rata quarterly bonus award pursuant to Section 6(b) shall be forfeited. 
 Section 9. Limitations Applicable to Bonus Awards 
 No award under this Plan shall be considered as compensation in calculating any insurance, profit-sharing, retirement or other benefit for which the Participant is eligible unless any such insurance, profit-sharing, retirement or other
benefit is granted under a plan which expressly provides that incentive compensation shall be considered as compensation under such plan. 
 Section 10.
Governing Law 
 The Plan shall be governed by, and construed in accordance with, the laws of the State of Oregon. 
 Section 11. Amendment, Modification and Termination 
 The Committee may at any time terminate or from time to time amend or suspend, in whole or in part, and if suspended, may reinstate, any or all of the provisions of the Plan in such respects as the Committee may deem advisable,
provided that no such termination, amendment or suspension shall impair any rights which have vested under the Plan. 
  

 6 

 Section 12. Withholding 
 The Company may withhold from the payment of any amounts hereunder an amount sufficient to satisfy any federal employment tax (FICA) and federal, state local and foreign income tax obligations arising from such
payment. 
 Section 13. General Assets 
 Participants shall have no right, title or interest whatever in or to any investments that the Company may make to aid the Company in meeting its obligation under the Plan, including any assets held by a rabbi trust. Nothing contained in
the Plan, and no action taken pursuant to any provision herein, shall create or be construed to create a trust of any kind, or a fiduciary relationship, between a Participant and the Company. To the extent that a Participant acquires the right to
receive payment from the Company under the Plan, such rights are no greater than the right of an unsecured general creditor of the Company. 
 Section 14. No Restriction on Right to Effect Changes 
 The Plan shall not affect in any way the right or power of the
Company or its stockholders to make or authorize any sale of all or any portion of the assets of the Company or any Subsidiary, any merger or consolidation of the Company or any Subsidiary, a reorganization, dissolution or liquidation of the Company
or any Subsidiary, or any other event or series of events, whether of a similar character or otherwise. 
 Section 15. Headings 
 The headings of sections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan.

 Section 16. No Contract of Employment or Right to Awards 
 Nothing contained herein shall be construed as a contract of employment between the Company and any Participant, or as giving a right to any person to be granted awards under the Plan or to continue in the employment
of the PT Group, or as limiting the right of the Company or any of its Subsidiaries to discharge any Participant at any time, with or without cause. 
  

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