Document:

Exhibit 10.27

 

BOISE CASCADE, L.L.C.

 

SUPPLEMENTAL EARLY RETIREMENT PLAN FOR EXECUTIVE
OFFICERS

 

(As amended through March 1, 2010)

 

 

BOISE CASCADE, L.L.C.

SUPPLEMENTAL EARLY RETIREMENT PLAN FOR EXECUTIVE
OFFICERS

 

ARTICLE I — PURPOSE OF THE PLAN

 

The purpose of this Supplemental Early Retirement Plan
for Executive Officers (the “Plan”) is to facilitate the orderly succession of
Executive Officers with continuity of management by providing additional Early
Retirement Benefits for the Executive Officers.

 

ARTICLE II — DEFINITIONS

 

2.1                                 “Board.”  The term Board shall mean the Board of
Managers of Boise Cascade Holdings, L.L.C.

 

2.2                                 “Change in Control.”  A Change in Control shall be deemed to have
occurred if:

 

(a)                                  Any Person is or becomes the Beneficial
Owner, directly or indirectly, of securities of the Company representing 25% or
more of either the then-outstanding shares of common stock of the Company or
the combined voting power of the Company’s then-outstanding securities;
provided, however, if such Person acquires securities directly from the
Company, such securities shall not be included unless such Person acquires
additional securities which, when added to the securities acquired directly
from the Company, exceed 25% of the Company’s then-outstanding shares of common
stock or the combined voting power of the Company’s then-outstanding
securities; and provided further that any acquisition of securities by any
Person in connection with a transaction described in Section 2.2(c)(i) shall
not be deemed to be a Change in Control of the Company; or

 

(b)                                 The following individuals cease for any
reason to constitute at least a majority of the number of managers(i.e.,
director equivalents for limited liabilities companies) then serving:  individuals who, on the date hereof,
constitute the Board and any new manager (other than a manager whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of managers of the Board) whose appointment or election by the Board
or nomination for election by the Company’s stockholders was approved by a vote
of at least two-thirds of the managers then still in office who either were
managers on the date hereof or whose appointment, election, or nomination for
election was previously so approved (the “Continuing Managers”); or

 

(c)                                  The consummation of a merger or
consolidation of the Company (or any direct or indirect subsidiary of the
Company) with any other corporation other than (i) a merger or
consolidation which would result in both (a)

 

 

Continuing Managers continuing to constitute at least a majority of the
number of directors (or director-equivalents) of the combined entity
immediately following consummation of such merger or consolidation, and (b) the
voting securities of the Company outstanding immediately prior to such merger
or consolidation continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or any parent
thereof) more than 50% of the combined voting power of the voting securities of
the Company or such surviving entity or any parent thereof outstanding
immediately after such merger or consolidation, or (ii) a merger or
consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no Person is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Company representing 25% or more
of either the then-outstanding shares of common stock of the Company or the
combined voting power of the Company’s then-outstanding securities; provided
that securities acquired directly from the Company shall not be included unless
the Person acquires additional securities which, when added to the securities
acquired directly from the Company, exceed 25% of the Company’s
then-outstanding shares of common stock or the combined voting power of the
Company’s then-outstanding securities; and provided further that any
acquisition of securities by any Person in connection with a transaction
described in Section 2.2(c)(i) shall not be deemed to be a Change in
Control of the Company; or

 

(d)                                 The stockholders of the Company approve a
plan of complete liquidation or dissolution of the Company or the consummation
of an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets, other than a sale or disposition by
the Company of all or substantially all of the Company’s assets to an entity,
more than 50% of the combined voting power of the voting securities of which
are owned by Persons in substantially the same proportions as their ownership
of the Company immediately prior to such sale.

 

A transaction described in Section 2.2(c) which
is not a Change in Control of the Company solely due to the operation of
Subsection 2.2(c)(i)(a) will nevertheless constitute a Change in Control
of the Company if the Board determines, prior to the consummation of the
transaction, that there is not a reasonable assurance that, for at least two
years following the consummation of the transaction, at least a majority of the
members of the board of directors (or director equivalent) of the surviving
entity or any parent will continue to consist of Continuing Managers and
individuals whose election or nomination for election by the shareholders of
the surviving entity or any parent would be approved by a vote of at least
two-thirds of the Continuing Managers and individuals whose election or
nomination for election has previously been so approved.

 

For purposes of this section, “Beneficial Owner” shall
have the meaning set forth in Rule 13d-3 under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”).

 

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For purposes of this section, “Person” shall have the
meaning given in Section 3(a)(9) of the Exchange Act, as modified and
used in Sections 13(d) and 14(d) thereof, except that “Person” shall
not include (i) the Company or any of its subsidiaries, (ii) a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or any of its subsidiaries, (iii) an underwriter temporarily
holding securities pursuant to an offering of such securities, (iv) a
corporation owned, directly or indirectly, by the stockholders of the Company
in substantially the same proportions as their ownership of stock of the
Company, or (v) an individual, entity or group that is permitted to and
does report its beneficial ownership of securities of the Company on Schedule
13G under the Exchange Act (or any successor schedule), provided that if the
individual, entity or group later becomes required to or does report its
ownership of Company securities on Schedule 13D under the Exchange Act (or any
successor schedule), then the individual, person or group shall be deemed to be
a Person as of the first date on which the individual, person or group becomes
required to or does report its ownership on Schedule 13D.

 

2.3                                 “Closing Date.”  October 29, 2004.

 

2.4                                 “Committee.”  The Compensation Committee of the Board of
Managers of Boise Cascade Holdings, L.L.C. or, in the absence of such a
committee, the Retirement Committee appointed by such board, which, in addition
to its other duties and responsibilities, shall have the duties and responsibilities
set out in Article V of this Plan.

 

2.5                                 “Company.”  Boise Cascade, L.L.C., a limited liability
company organized and existing under the laws of the state of Delaware, or its
successor or successors.

 

2.6                                 “Competitor.”  Any business, foreign or domestic, which is
engaged, at any time relevant to the provisions of this Plan, in the
manufacture, sale, or distribution of products, or in the providing of
services, in competition with products manufactured, sold, or distributed, or
services provided, by the Company or any subsidiary, partnership, or joint
venture of the Company.  The
determination of whether a business is a Competitor shall be made by the
Company’s General Counsel, in his or her sole discretion.

 

2.7                                 Construction. 
Except to the extent preempted by federal law, this Plan shall be
construed according to the laws of the state of Idaho.  The words “hereof,” “herein,” “hereunder” and
other similar compounds of the word “here” shall mean and refer to the entire
Plan, not to any particular provision or section.

 

2.8                                 “Deferred Compensation and Benefits
Trust.”  The irrevocable trust (the “DCB
Trust”) which may be established by the Company with an independent trustee for
the benefit of persons entitled to receive payments or benefits hereunder,

 

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the assets of which will be subject to claims of the Company’s
creditors in the event of bankruptcy or insolvency.

 

2.9                                 “Early Retirement.”  The termination of employment of an Executive
Officer prior to his or her Normal Retirement Date but after the Executive
Officer has completed 10 or more years of service and has reached the age
of at least 58 years (or, for Executive Officers elected as such by Boise
Cascade Corporation prior to June 1, 2004, 55 years).

 

2.10                           “Early Retirement Benefits.”  The benefits that will be paid to an
Executive Officer who retires from the Company under the provisions of this
Plan.

 

2.11                           “Early Retirement Date.”  The date of an Executive Officer’s Early
Retirement, as defined in Section 2.9.

 

2.12                           “Effective Date.”  October 29, 2004, or the date this Plan
becomes effective as established by the Board, whichever is later.

 

2.13                           “Executive Officer.”  A Transferred Executive Officer who has been
duly elected by the Board to serve as an executive officer of the Company in
accordance with the Company’s bylaws but not including assistant treasurers or
assistant secretaries.

 

2.14                           “Involuntary Retirement.”  The termination of employment of an Executive
Officer by action of the Company or the Board prior to an Executive Officer’s
Normal Retirement Date but after the Executive Officer has completed 10 or
more years of service and has reached the age of at least 58 years (or,
for Executive Officers elected as such by Boise Cascade Corporation prior to June 1,
2004, 55 years).

 

2.15                           “Normal Retirement Date.” The
first day of the month on or after an Executive Officer’s 65th birthday.

 

2.16                           “Salaried Plan.”  The Boise Cascade, L.L.C. Pension Plan for
Salaried Employees and the Boise Cascade, L.L.C. Supplemental Pension Plan as
they currently are in effect and as amended from time to time after the
Effective Date of this Plan.

 

2.17                           “Transferred Executive Officer.”  An employee who has been duly elected by the
Board to serve as an executive officer of the Company in accordance with the
Company’s bylaws (but not including assistant treasurers or assistant
secretaries), and who had been a participant in the Boise Cascade Corporation Supplemental
Early Retirement Plan for Executive Officers immediately prior to the Closing
Date.

 

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ARTICLE III — ELIGIBILITY FOR EARLY RETIREMENT
BENEFITS

 

3.1                                 Eligibility. 
An Executive Officer (i) with 10 or more years of service with
the Company, as defined in the Salaried Plan; (ii) who has served as an
Executive Officer of the Company for at least 5 full years measured from
the date of his or her election to such office; and (iii) whose employment
with the Company is terminated through Involuntary Retirement, or who elects Early
Retirement, shall receive the Early Retirement Benefits as set forth in Article IV
hereof; provided, however, if an Executive Officer’s employment is terminated
for “disciplinary reasons,” as that term is used in the Company’s Corporate
Policy 10.2, Termination of Employment, as amended from time to time, such
Executive Officer shall not be eligible to receive any benefits under this
Plan.  For purposes of this Plan, an
Executive Officer’s years of service with the Company shall include his or her
years of service with Boise Cascade Corporation, and an Executive Officer’s
years of service as an Executive Officer of the Company shall include his or
her years of service as an Executive Officer of Boise Cascade Corporation.

 

3.2                                 Notice.  If an
Executive Officer is required to take Involuntary Retirement under this Plan,
he or she shall be given a written notice thereof and shall be advised of the
Early Retirement Benefits to be paid hereunder. 
Additionally, any eligible Executive Officer desiring to elect Early
Retirement shall notify the Company of his or her decision, in writing, at
least 30 days in advance of the Early Retirement Date.

 

ARTICLE IV — EARLY RETIREMENT BENEFITS

 

4.1                                 Computation of Early Retirement Benefits. 
The Early Retirement Benefits payable to any Executive Officer who is
eligible for such benefits under Section 3.1 hereof shall be calculated as
follows:

 

Until age 65, the Early Retirement Benefits payable
hereunder shall be an amount equal to the Basic Pension Benefit that would have
been payable in the form of a single life annuity at age 65 under the
Salaried Plan (before reduction to reflect any retirement option selected by
the Executive Officer pursuant to Article VII of the Salaried Plan)
without reduction on account of early retirement, provided, however, that any
such Early Retirement Benefits shall exclude the amounts of any such benefits
that are based on or relate to years of service performed for Boise Cascade
Corporation and that are payable under either the Boise Cascade Corporation
Spun-off Pension Plan for Salaried Employees or the Boise Cascade Corporation
Supplemental Early Retirement Plan for Executive Officers or would have been
payable under such plans as of the day before the Closing Date if all vesting
and eligibility provisions thereunder are deemed to have been met.  To the extent that the Boise Cascade
Corporation Supplemental Early Retirement Plan for Executive Officers is
terminated and participants thereunder are paid out in a lump sum in connection
with such termination prior to the payment of benefits under this Plan, such
lump sum (or its actuarial equivalent) shall be excluded from the benefits
payable under this Section 4.1.

 

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If the calculations made pursuant to this section
produce no Early Retirement Benefits for an Executive Officer, then this Plan
shall not apply to that Executive Officer. 
The Company will be secondarily liable for the payment of any amounts
that are payable from the Salaried Plan.

 

4.2                                 Manner and Adjustment of Payment. 
The Early Retirement Benefits, as computed in Section 4.1 and as
provided hereunder, shall, except as provided in Section 4.5, become an
unfunded general obligation of the Company and shall be paid to the Executive
Officer in monthly installments as a supplemental retirement benefit.  The Early Retirement Benefits shall be paid
in the form of a single life annuity until the earlier of the Participant’s
death or the date the Participant reaches age 65.  Payment of Early Retirement Benefits shall
commence as soon as practicable following the Participant’s Early Retirement or
Involuntary Retirement.  For purposes of Section 409A
of the Internal Revenue Code, the date of the Participant’s Early Retirement or
Involuntary Retirement shall be the “designated payment date.”

 

4.3                                 Executive Officer Not to Compete. 
If an Executive Officer who is receiving Early Retirement Benefits
hereunder and who has not yet reached his or her Normal Retirement Date
provides significant services as an employee or consultant, or otherwise
renders services of a significant nature for remuneration, to a Competitor, the
Company may, in its discretion, cancel all further Early Retirement Benefits
due to be payable to the Executive Officer hereunder, and after the date of
cancellation, the Executive Officer shall forfeit all future benefits under
this Plan.  The Company may, in its
discretion, consent to an Executive Officer’s rendering services to a
Competitor, and if it does consent, it may place whatever limitations it
considers appropriate on the consent.  If
the Executive Officer breaches the terms of the consent, the Company may, in
its discretion, cancel all further Early Retirement Benefits due to be payable to
the Executive Officer hereunder, and after the date of cancellation, the
Executive Officer shall forfeit all future benefits under this Plan.

 

4.4                                 Supplemental
Survivor’s Retirement Benefit.  If an Executive Officer terminates employment
at any age by reason of death, his or her spouse, if any, shall be eligible to
receive a supplemental Survivor’s Retirement Benefit under this Plan.  The amount of the supplemental Survivor’s
Retirement Benefit payable under this section shall be equal to the difference
between the Survivor’s Retirement Benefit payable under the terms of the
Salaried Plan and the amount to which the spouse would be entitled under the
terms of both this Plan and the Salaried Plan if the Executive Officer, without
regard to the requirements of Section 3.1 of this Plan, had elected early
retirement on the date of his or her death and had elected to receive benefits
in the form of a 100% Joint and Survivor Annuity with the spouse as joint
annuitant, provided that if the Executive Officer dies prior to reaching age
55, the otherwise unreduced benefit payable under this Plan shall be
actuarially reduced to reflect the Executive Officer’s age at death.  Payment of this benefit shall commence as
soon as practicable
following the Participant’s death.  For
purposes of Section 409A of the Internal Revenue Code, the date of the
Participant’s death shall be the “designated

 

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payment date.”  A surviving spouse shall not be eligible for
a supplemental survivor’s benefit under this Plan unless the spouse is eligible
for a survivor’s benefit under the terms of the Salaried Plan.

 

Notwithstanding the foregoing, any benefits received pursuant to this
section shall exclude the amounts of any such benefits that are based on or
relate to an Executive Officer’s years of service performed for Boise Cascade
Corporation and that are payable under either the Boise Cascade Corporation
Spun-off Pension Plan for Salaried Employees or the Boise Cascade Corporation
Supplemental Early Retirement Plan for Executive Officers or would have been
payable under such plans as of the day before the Closing Date if all vesting
and eligibility provisions thereunder are deemed to have been met.  To the extent that the Boise Cascade Corporation
Supplemental Early Retirement Plan for Executive Officers is terminated and
participants and surviving spouses thereunder are paid out in a lump sum in
connection with such termination prior to the payment of benefits under this
Plan, such lump sum (or its actuarial equivalent) shall be excluded from the
benefits payable under this Section 4.4.

 

4.5                                 Deferred Compensation and Benefits Trust. 
Upon the occurrence of a Change in Control of the Company or at any time
thereafter, the Company, in its sole discretion, may transfer to the DCB Trust
cash, marketable securities, or other property acceptable to the trustee to pay
the Company’s obligations under this Plan in whole or in part (the “Funding
Amount”).  Any cash, marketable
securities, and other property so transferred shall be held, managed, and
disbursed by the trustee subject to and in accordance with the terms of the DCB
Trust.  In addition, from time to time,
the Company may make additional transfers of cash, marketable securities, or
other property acceptable to the trustee as desired by the Company in its sole
discretion to maintain or increase the Funding Amount with respect to this
Plan.  The assets of the DCB Trust, if
any, shall be used to pay benefits under this Plan, except to the extent the
Company pays such benefits.  The Company
and any successor shall continue to be liable for the ultimate payment of those
benefits.

 

4.6                                 Section 457A
Distributions for Participants with Vested Benefits as of December 31,
2008.  Notwithstanding anything to
the contrary in the Plan, the following provisions shall apply with respect to
a Participant who, as of December 31, 2008, has met the requirements for
Early Retirement as defined in Section 2.9.

 

4.6.1  The Participant’s Early Retirement Benefits
shall be paid out during the last taxable year beginning before January 1,
2018, to the extent that Internal Revenue Code Section 457A (“Section 457A”)
applies to the Plan and requires inclusion of such benefits in the Participant’s
gross income at that time and to the extent that such benefits have not already
been paid out pursuant to another provision of this Plan.

 

4.6.2  The increase in a Participant’s Early
Retirement Benefits, if any, attributable to services performed during 2009
which is includible in the

 

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Participant’s income for 2009 pursuant to Section 457A
shall be paid to the Participant within the time permitted under Section 457A
and applicable guidance and regulations. 
The calculation of Early Retirement Benefits payable in the future shall
take this payment into account.

 

4.6.3  The changes in the time of payment made
pursuant to this Section 4.6 are intended to conform the date of
distribution of any portion of the Participant’s Deferred Account to the date
the amount may be required to be included in income pursuant to Section 457A,
if earlier than the date such amount would otherwise  be distributed.  As such, any change in the time of payment
pursuant to this Section 4.6 will not be treated as an impermissible
acceleration under Internal Revenue Code Section 409A.

 

ARTICLE V — DUTIES

 

5.1                                 Committee’s Powers. 
Except as otherwise provided in the Plan with regard to the powers of
the Company, the Committee shall have control of administration of the Plan,
with all powers necessary to enable it to carry out its duties hereunder.  The Committee shall have the right to inspect
the records of the Company whenever such inspection may be reasonably necessary
in order to determine any fact pertinent to the performance of the duties of
the Committee.  The Committee, however,
shall not be required to make such inspection but may, in good faith, rely on
any statement of the Company or any of its officers or employees.

 

5.2                                 Copy of Plan to Be Furnished. 
The Committee shall furnish a copy of this Plan to all Executive
Officers of the Company who are or become entitled to be covered under this
Plan as eligible Executive Officers.

 

5.3                                 Records.  The Committee
shall keep a complete record of all its proceedings and all data necessary for
administration of the Plan.

 

5.4                                 Appeal Procedure. 
If any Executive Officer feels aggrieved by any decision of the
Committee concerning his or her benefits hereunder, the Committee shall
provide, upon written request of the Executive Officer, specific written reasons
for the decision.  The Committee shall
afford an Executive Officer, whose claim for benefits has been denied,
60 days from the date notice of denial is mailed in which to request a
hearing before the Committee.  If an
Executive Officer requests a hearing, the Committee shall review the written
comments, oral statements, and any other evidence presented on behalf of the
Executive Officer at the hearing and render its decision within 60 days of
such hearing.  If the Executive Officer
still feels aggrieved by the Committee’s decision concerning his or her
benefits hereunder, the Executive Officer can request the Executive
Compensation Committee of the Board to review his or her case.  The request for hearing must be made in
writing within 60 days from the date of the Committee’s decision.  The Executive Compensation Committee of the
Board shall review said decision within 4 months after receiving the
Executive Officer’s request for

 

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review and shall, within a reasonable time thereafter, render a
decision respecting the Executive Officer’s claim, which shall be final,
binding and conclusive.

 

If any Executive Officer feels aggrieved by any
decision of the Company concerning his or her rights hereunder, the Company shall
provide, upon the written request of the Executive Officer, specific written
reasons for its decision.  If the
Executive Officer is not satisfied with the Company’s decision with respect to
his or her rights, the Executive Officer can request the Executive Compensation
Committee of the Board to review his or her case.  The Executive Officer’s request must be made
within 60 days of the mailing of the Company’s written decision, and the
Executive Compensation Committee of the Board will handle the review in the
same manner as set forth above with respect to appeals from Committee
decisions.

 

ARTICLE VI — AMENDMENT AND TERMINATION

 

6.1                                 Amendment.  To provide
for contingencies which may require the clarification, modification, or
amendment of this Plan, the Company reserves the right to amend this Plan at
any time; provided, however, no amendment shall affect any benefits previously
granted hereunder to any Executive Officer who elected or was required,
pursuant to this Plan, to retire early.

 

6.2                                 Termination. 
It is the present intention of the Company to maintain this Plan
indefinitely.  Nonetheless, the Company
reserves the right, at any time, to terminate the Plan; provided, however, no
termination shall affect any benefits previously granted hereunder to an
Executive Officer who elected or was required, pursuant to this Plan, to retire
early.

 

ARTICLE VII — MISCELLANEOUS

 

7.1                                 Benefits Not Transferable or Assignable. 
None of the benefits, payments, proceeds, claims, or rights of any
Executive Officer hereunder shall be subject to the claim of any creditor of
the Executive Officer, other than the Company as permitted in Section 7.2,
nor shall any Executive Officer have any right to transfer, assign, encumber,
or otherwise alienate any of the benefits or proceeds which he or she may
expect to receive, contingently or otherwise, under this Plan.

 

7.2                                 Setoff.  The Company
shall have the right to withhold and deduct from payments due hereunder to any
Executive Officer any amounts owed by the Executive Officer to the Company or
its affiliates that were incurred prior to the Executive Officer’s Early
Retirement Date.

 

9EXHIBIT 10.32

 

BOISE CASCADE, L.L.C.

 

2010
CASH LONG-TERM INCENTIVE PLAN

 

 

Effective January 1, 2010

 

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BOISE
CASCADE, L.L.C.

2010 CASH
LONG-TERM INCENTIVE PLAN

 

1.                                      Purpose of the Plan.

 

The purpose of the Boise Cascade, L.L.C. 2010 Cash Long-Term Incentive
Plan (the “Plan”) is to assist Boise
Cascade, L.L.C. (the “Company”)
in attracting, motivating, rewarding and retaining designated officers and
other key management talent of the Company by providing them with additional
long term cash incentives. The purpose of the Plan will be achieved by the
grant of Awards, as defined below.

 

2.                                      Definitions.

 

(a)                                  “Award” means a right to receive a cash payment, contingent on (i) the
achievement of certain Performance Goals over the Award Term, and the Committee’s
assessment of the performance of the Company and/or the Award Recipient over
the Award Term, in each case as determined by the Committee in its sole
discretion (performance-vesting), and/or (ii) the passage of time
(time-vesting).

 

(b)                                 “Award
Agreement” means the document issued to the Award Recipient evidencing the
grant of an Award and stating the terms and conditions of the Award and other
provisions deemed necessary or desirable by the Committee which do not conflict
with the terms of this Plan.  Award
Agreements may be written or electronic and may require acceptance by the Award
Recipient, as determined by the Committee.

 

(c)                                  “Award
Recipient” means an employee of the Company or a subsidiary who is eligible to
receive an Award pursuant to Section 3, who receives an Award Agreement,
and who, if applicable, accepts the Award Agreement.

 

(d)                                 “Award Term”
means the period of time established by the Committee and indicated in the
Award Agreement.  Award Terms may be of
varying and overlapping durations.

 

(e)                                  “Board” means
the Board of Directors of Boise Cascade Holdings, L.L.C., the Company’s parent
company.

 

(f)                                    A “Change in
Control” shall be deemed to have occurred if:

 

(i)                                     Madison
Dearborn Partners, LLC’s direct or indirect ownership of (or control of voting
power with respect to) the Parent Company is reduced to 50% or less of the then
outstanding common equity units which have the power to vote in an election of
the Parent Company’s Board of Directors, or any person not affiliated with
Madison Dearborn Partners, LLC acquires 50% or more of the Company’s equity
units entitled to vote for election of the Company’s Board of Managers, whether
by direct ownership or through contracts or agreements which confer the power
to vote such equity units on the non-affiliated party; or

 

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(ii)                                  The
stockholders of the Parent Company or of the Company approve a plan of complete
liquidation or dissolution of the Parent Company or the Company, as the case
may be, or the consummation of an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets, other than a sale
or disposition by the Company of all or substantially all of the Company’s
assets to an entity more than 50% of the combined voting power of which is
owned or controlled by Madison Dearborn Partners, LLC.

 

Notwithstanding the foregoing, a “Change in Control” shall not be
deemed to have occurred if the event is an initial public offering of the
securities of the Company, Boise Cascade Holdings, L.L.C., or Forest Products
Holdings, L.L.C.

 

(g)                                 “Committee”
means the Compensation Committee of the Board.

 

(h)                                 “Parent Company”
means Boise Cascade Holdings, L.L.C., which is the holder of 100% of the
Company’s outstanding equity securities.

 

(i)                                     “Performance
Goals” means the goals established by the Committee in its sole discretion that
apply to a performance-vesting Award. The performance goals may include or be
based upon any one or more of several criteria, such as, but not limited to, sales;
gross revenue; gross margins; earnings before interest and taxes (EBIT); earnings
before interest, taxes, depreciation and amortization (EBITDA); internal rate
of return; return on capital; revenue growth; return on equity; increase in net
after-tax earnings per share; increase in operating pre-tax earnings, operating
profit or improvements in operating profit; improvements in certain asset or
financial measures (including working capital and the ratio of revenues to
working capital); credit quality; expense ratios; pre-tax earnings or
variations of income criteria in varying time periods; economic value added;
total return to shareholders; cash flow; safety; or general comparisons with
other peer companies or industry groups or classifications with regard to one
or more of these criteria.  The
Performance Goals may be measured with respect to the Company alone on an
absolute basis, on a relative or comparative basis with such peer companies or
index as the Committee may select, or in such combination thereof as may be
determined by the Committee.  Performance
Goals may be based on the performance of the Company as a whole, or on the
performance of a specified business unit or subsidiary, or on the performance
of a group of subsidiaries, divisions or business units.  Performance Goals may be measured on a
cumulative basis, or in the alternative on an annual, quarterly or other
periodic basis, or in the form of a matrix combining various Performance Goals
and weighting them in any manner that the Committee may determine.  The Committee may establish different
Performance Goals for individual Award Recipients or groups of Award
Recipients.

 

(j)                                     “Retirement”
(or “Retires”) means an Award Recipient’s termination of employment after attaining
age 62 and completing at least 10 years of employment with the Company and its
predecessors, or after age 65 regardless of length of employment.

 

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(k)                                  “Vesting Date”
means the date or dates specified in an Award Agreement as of which all or part
of the Award may vest and become payable.

 

3.                                      Eligibility.

 

Eligibility under the Plan shall be limited to officers and other key management
employees of the Company identified by the Committee in its sole discretion.  An individual’s eligibility for an Award at
any time shall not indicate or require that the individual will be eligible for
any future Award.  No person shall have
any claim to be granted any Award under this Plan.

 

4.                                      Administration.

 

(a)                                  General.  The Committee shall have the sole discretion,
responsibility and authority to administer and interpret the Plan and adopt rules it
deems necessary to administer the Plan. 
This includes the discretion and authority to determine all questions of
fact, eligibility, or benefits relating to the Plan, to determine eligibility
for and level of participation in this Plan, to determine the terms and
conditions applicable to Awards, and to take all other actions necessary or
appropriate to administer the plan.  The
Committee’s responsibilities for administration and interpretation of the Plan
shall be exercised by the Committee or by Company employees who have been
assigned those responsibilities by the Company’s management.  Any Company employee exercising
responsibilities related to the Plan in accordance with this section shall be
deemed to have been delegated the discretionary authority vested in the
Committee with respect to those responsibilities unless limited in writing by
the Committee, except that Company employees may not select Award Recipients,
grant Awards, or determine the terms and conditions applicable to Award
Recipients unless specifically authorized by the Committee to do so by
resolution or other acceptable evidence of authority.  The Committee’s or its delegate’s
administration of the Plan, including all interpretations, selections,
determinations, approvals, decisions, and other actions, shall be final and
binding on the Company and all Award Recipients and their respective
beneficiaries.

 

(b)                                 Terms
and Conditions of Awards.  The
Committee shall have final discretion, responsibility and authority to:

 

·                  Grant Awards;

·                  Determine the
Award Recipients to whom and the times at which Awards shall be granted;

·                  Determine the
type and number of Awards to be granted;

·                  Establish and
administer Performance Goals relating to an Award;

·                  Establish
time-vesting requirements applicable to an Award;

·                  Establish the
rights of Award Recipients with respect to an Award upon termination of
employment;

·                  Determine
whether, to what extent, and under what circumstances and Award may be
settlement, cancelled, forfeited, exchanged, or surrendered;

·                  Determine all
terms and provisions of Award Agreements; and

 

4

 

·                  Resolve
conclusively any question or ambiguity arising with respect to the vesting of
Awards.

 

The
Committee may solicit recommendations from Company management with respect to
any or all of the items listed above. 
The terms and conditions of each Award shall be established at the time
of grant.  Different terms and conditions
may apply for different Awards, different Award Recipients, or the same Award
Recipient for each Award granted to the Award Recipient, whether or not granted
at different times.  There is no
obligation to treat Award Recipients uniformly.

 

5.                                      Awards.

 

(a)                                  Target Award.  With respect to each Award granted under this Plan,
the Committee shall establish for each Award Recipient a target award
(the “Target Award”).  The Target Award may be a fixed cash amount or
expressed as a percentage of annual base salary.  The Award may be a Performance-Based Award, a
Time-Based Award, or a Combination Award, as follows.

 

(i)                                     Performance-Based
Awards.  Performance Goals shall be
established in writing by the Committee no later than 90 days after the
commencement of the Award Term.  The
Committee shall establish a mathematical formula pursuant to which the amount
of the Award will be calculated based on the attainment of specific levels of
the applicable Performance Goals.  The
actual amount paid under the Award, if any, may be more or less than the Target
Award.

 

(ii)                                  Time-Based Awards.  The Award will vest on the Vesting Date(s) established
by the Committee.  No Performance Goals
apply and the actual amount paid under the Award will be the Target Award,
subject to the Award Recipient’s satisfaction of continued employment
requirements.

 

(iii)                               Combination Awards.  The Committee will establish both Performance
Goals pursuant to subsection (i) above and Vesting Date(s) pursuant
to subsection (ii) above.  The
amount payable under the Award will be determined by the attainment of the
Performance Goals.  The actual amount
payable under the Award, if any, may be more or less than the Target
Award.  The Award will vest based on the
Vesting Date(s), subject to the Award Recipient’s satisfaction of continued
employment requirements.

 

(b)                                 Adjustments to Performance-Based Awards due to Unforeseen Circumstances.  In order to avoid any undue windfall or
hardship due to external causes, the Committee in its sole discretion may (i) adjust
Performance Goals to recognize unusual or nonrecurring events affecting the
Company or its financial statements or changes in applicable laws, regulations,
or accounting standards or principles, or (ii) determine whether
Performance Goals have been met without regard to the effect of any changes in applicable
laws, regulations, or accounting standards or principles, any change in the
outstanding capital stock, any acquisition or disposition by 

 

5

 

the
Company or a peer company not planned for at the time the Performance Goals
were established, or any other unusual or nonrecurring event that would
otherwise impact the Company’s or a peer company’s reported financial
performance.

 

(c)                                  Award Agreements.  Award
Agreements shall be issued as soon as practical following the Committee’s
determination of the terms and conditions of Awards, including the
establishment of Performance Goals, if applicable.

 

(d)                                 Payment of Awards.  After the
conclusion of the Award Term or at any other time or times specified in the Award
Agreement, the Committee shall determine the amount payable with respect to the
Award, based upon the extent to which any applicable Performance Goals were
achieved and any other terms and conditions of the Award.  Payment of amounts payable with respect to
Awards under this Plan shall be made solely in cash within 90 days following
the applicable Vesting Date, but in no event later than the 15th day of the third month following the end of
the year in which the Vesting Date occurs.

 

6.                                      Termination of Employment.

 

(a)                                  Death, Disability or Retirement. If an Award Recipient’s
employment with the Company terminates during an Award Term as a result of
death or total disability (as determined by the Committee in its sole
discretion) or Retirement, the Award Recipient (or his or her estate,
representatives, heirs or beneficiaries, as applicable, in the case of death)
shall be entitled to a pro rata portion of any payout that thereafter becomes
due under the outstanding Award(s) unless the Committee determines otherwise.  If there is a single Vesting Date for an
Award, the pro rata calculation shall be based on the number of full months
elapsed in the Award Term prior to the Award Recipient’s death, disability or
Retirement, compared to the full number of months in the Award Term.  If there are multiple Vesting Dates within an
Award, the pro rata calculation shall be performed as specified in the Award
Agreement.

 

(b)                                 Other Termination. If an Award Recipient’s employment with the
Company terminates during an Award Term other than by reason of death,
disability or Retirement as provided in this
Section 6, then, unless the Committee determines otherwise, all
outstanding unvested Awards to that Award Recipient shall be deemed forfeited,
shall automatically be canceled and shall have no further force or effect.

 

(c)                                  Change of Control. Notwithstanding the provisions of Section 5
or this Section 6, unless provided otherwise in the Award Agreement, the
following provisions shall apply in the event of a Change in Control during an
Award Term.

 

(i)                                     Upon a Change in Control,
unless a Replacement Award (as defined below) is provided to the Award
Recipient, the following will occur.  (A) 
With respect to outstanding performance-vesting or combination Awards for which
the applicable Performance Period has ended and outstanding time-vesting Awards
which were granted in a year prior to the year in which the Change in Control
occurs, the Awards will vest and amounts which would otherwise have been
payable at future

 

6

 

Vesting
Dates and amounts payable with respect to a Vesting Date occurring prior to the
Change in Control will become payable immediately.  (B)  With respect to outstanding performance-vesting
or combination Awards for which the applicable Performance Period has not ended
and outstanding time-vesting Awards granted in the year in which the Change in
Control occurs, the Performance Goals applicable to each outstanding Award
shall be deemed to have been satisfied as of the date of the Change of Control
to yield a payout of 100% of the target Award amount, the Award will vest in
full, and the amount payable under the Award will be the target amount of the full
Award, prorated for the portion of the year elapsed prior to the Change in
Control.  Payment shall occur within 10
days following the Change in Control.

 

(ii)                                  A Replacement Award is an
Award granted at the time of a Change in Control by the Company or a successor
employer to an Award Recipient which has a value at least equal to the value of
the outstanding Award being replaced (the Replaced Award) and with respect to
which the terms and conditions are not less favorable to the Participant than
the terms and conditions of the Replaced Award, including provisions that apply
in the event of a subsequent Change in Control. 
A Replacement Award must provide for payment to an Award Recipient who
is involuntarily terminated other than for disciplinary reasons (as defined in
subsection (iii) below) before the Award is paid in full.  The payment amount must be not less than the
amount which would otherwise have been paid under the Replaced Award had the
Award Recipient remained employed through all applicable Vesting Dates and must
be made by the later of 60 days following the end of the applicable Performance
Period or 10 days following the date of termination of employment.  A Replacement Award may take the form of a
continuation of the Replaced Award as long as the requirements of this
subsection (ii) are satisfied.  The
determination of whether an Award qualifies as a Replacement Award shall be
made by the Board, as constituted immediately prior to the Change in Control,
in its sole discretion.

 

(iii)                               For purposes of subsection (ii) above,
a termination of employment that occurs within three years following a Change
in Control and within three months following the initial existence of any of
the following conditions without the Award Recipient’s written consent shall be
considered “involuntary”:  a material
reduction in the Award Recipient’s base compensation; a material reduction in
the Award Recipient’s authority, duties, or responsibilities; or a material
change in the geographic location at which the Award Recipient must provide
services.  The Award Recipient must
provide written notice to the Company (or its successor) within 30 days of the
initial existence of the condition, and the Company (or its successor) shall
have 30 days following receipt of notice to remedy the condition.  If the Award Recipient terminates employment
prior to giving notice or prior to the expiration of the Company’s (or its
successor’s) 30-day cure period, this subsection (iii) shall not apply.

 

(iv)                              Any Award Recipient whose
employment is involuntarily terminated for any reason other than disciplinary
reasons (as that term is used in the Company’s Policy 10.2) within three months
prior to the date of a Change in Control, shall be treated, solely for purposes
of this Plan, as continuing in the employment of the

 

7

 

Company
until the date of the Change in Control and terminating employment immediately
thereafter.

 

(v)                                 Notwithstanding Section 9,
upon a Change in Control, this Plan may not be amended in any manner that would
reduce or alter the rights of an Award Recipient to any benefit under this Plan
without the consent of each affected Award Recipient for three years following
the Change in Control but may be so amended thereafter.

 

7.                                      Tax Withholding.

 

The Company shall deduct from any payments made under any Award all
federal, state, or local taxes required by law to be withheld.

 

8.                                      Governing Law.

 

To the extent not governed by federal law, the Plan, including any
Award Agreement, shall be construed according to the laws of the State of Idaho,
excluding any conflicts or choice of law rule or principle that might
otherwise refer construction or interpretation to the substantive law of
another jurisdiction.

 

9.                                      Plan Amendment and Termination.

 

The Committee may, in its sole discretion, amend or
terminate the Plan at any time, with or without advance notice to Award
Recipients, provided that the Committee may not amend or terminate the Plan in
a manner that adversely affects the right of any Award Recipient with respect
to any Award granted prior to the date of amendment or termination without the
Award Recipient’s prior written consent unless the amendment is necessary to
comply with Section 409A or Section 457A of the Internal Revenue Code.

 

10.                               Sections 409A
and 457A of the Code.

 

To the extent applicable, notwithstanding anything herein to the
contrary, the Plan shall be interpreted in accordance with Sections 409A
and 457A of the Internal Revenue Code of 1986, as amended (the “Code”), and Department of Treasury
regulations and other interpretative guidance issued thereunder, including
without limitation any such regulations or other guidance that may be issued
after the effective date of the Plan. Notwithstanding any provision of the Plan
to the contrary, if the Committee determines that any amounts payable hereunder
will be taxable to an Award Recipient under Section 409A or 457A of the
Code, prior to payment to such Award Recipient, the Committee may: (a) adopt
amendments to the Plan, and any Award Agreement, and appropriate policies and
procedures, including amendments and policies with retroactive effect, to
preserve the intended tax treatment of the benefits provided by the Plan and
Award Agreement(s), and/or (b) take such other actions as the Committee determines
necessary or appropriate to avoid or limit the imposition of an 

 

8

 

additional
tax under Section 409A or 457A of the Code.  Alternatively, the Committee may pay out such
Award in whole or in part (such partial payment being the amount the Committee
reasonably anticipates will enable the Award Recipient to satisfy the taxes due
by reason of the application of Section 457A to the Award) at the time it
becomes taxable under Section 457A, if the Committee in its sole
discretion deems it advisable to do so.

 

11.                               Claims and
Appeals Procedures.

 

(a)                                  Claims
Procedures.  Disputes or
claims regarding benefits or other issues arising under the Plan shall be filed
in writing with the Company’s Vice President, Human Resources within
60 days after the event giving rise to the dispute, claim, or
grievance.  The claim shall state all
facts and include copies of all documents, materials, or other evidence that
the Award Recipient believes are relevant to the claim.  The Vice President shall have absolute
discretion to interpret and apply the Plan, evaluate the facts and
circumstances, and make a determination with respect to the dispute, claim, or
grievance in the name and on behalf of the Company.  A written decision shall be furnished to the
claimant within 60 days (45 days if the claim relates to disability) after
the claim is received.  The Vice
President in his or her sole discretion may extend this 60-day period an
additional 60 days by notifying the claimant in writing of the extension
before the original 60-day period expires (or, for disability claims, may
extend the 45-day period an additional 30 days if a decision cannot be made for
reasons beyond the Plan’s control).  If
the claim is denied, the notice of denial shall include the specific reasons
for the denial, pertinent provisions of the Plan, and where appropriate, an
explanation as to how the claimant may perfect the claim or submit the claim
for review.

 

(b)                                 Claims
Review Procedure.  Any Award
Recipient or beneficiary who has been denied a benefit claim shall be entitled,
upon written request, to a review of his or her claim.  The request for review, together with a
written statement of the claimant’s position, shall be filed with the Company’s
Vice President, Human Resources within 60 days after receiving the initial
notice of denial.  The Vice President
will promptly inform the Company’s chief executive officer.  The written decision of the chief executive
officer shall be furnished to the claimant within 60 days after the Vice
President receives the appeal (or 45 days for disability claims).  The chief executive officer in his or her
sole discretion may extend this 60-day period an additional 60 days by
notifying the claimant in writing of the extension before the original 60-day
period expires (except that no extension is available for disability claims).  The written decision will state the facts and
plan provisions upon which the decision is based and is final and binding on
all parties.

 

(c)                                  Lawsuits;
Venue.  No lawsuit claiming entitlement
to benefits under this Plan may be filed prior to exhausting the claims and
claims review procedures described in this Section 11.  Any lawsuit must be initiated no later than (i) one
year after the event(s) giving rise to the claim occurred, or (ii) 60 days
after a final written decision was provided to the claimant under Section 11(b),
whichever is sooner.  Any lawsuit or
legal action by any party, person, or entity regarding this Plan, benefits
under

 

9

 

this
Plan, or any related issue may be brought only in State or Federal court in Boise, Idaho.

 

12.                               General Provisions.

 

(a)                                  No Right to Continued Employment. The Plan is not intended to
and does not in any manner create a contract of employment between the Company
and the Award Recipient.  Employment with
the Company is at will, which means that either the employee or the Company may
end the employment relationship at any time and for any reason.  Neither the establishment of the Plan nor the
granting of any Award hereunder nor any action of the Company or the Committee
in respect of the Plan or any Award Agreement, including the establishment of a
multi-year Award Term, shall be held or construed as giving the Award Recipient
any right to be retained by the Company for any length of time or as changing
the at-will relationship between the Award Recipient and the Company.

 

(b)                                 No Funding of Plan. The Company shall not be
required to fund or otherwise segregate assets, which may at any time be
delivered to Award Recipients under the Plan. The Plan shall constitute an “unfunded”
plan of the Company. The Company shall not, by any provisions of the Plan, be
deemed to be a trustee of any property, and any Award Recipient or former Award
Recipient shall have the status of a general unsecured creditor of the Company.

 

(c)                                  Notice to Company.  Any
notice required or permitted to be given under the Plan to the Company shall be
sufficient if in writing and delivered by an overnight delivery service or by
registered or certified U.S. mail to the Company at the following address:

 

Vice President, Human Resources

Boise Cascade, L.L.C.

1111 West Jefferson St., Suite 300

PO Box 50

Boise, ID  83728-0050

 

Such notice shall be deemed given as of the date of delivery if
delivery is made via an overnight delivery service, or, if delivery is made by
registered or certified U.S. mail as of the date shown on the receipt for
registration or certification.

 

(d)                                 Notice to Award Recipient.  Any notice required or permitted to be given
under the Plan to the Award Recipient shall be sufficient if in writing and
delivered by registered or certified mail to the Award Recipient’s principal
residence as currently reflected in the Company’s personnel records.  Such notice shall be deemed given as of the
date of delivery if delivery is made via an overnight delivery service, or, if
delivery is made by registered or certified U.S. mail as of the date shown on the
receipt for registration or certification.

 

10

 

(e)                                  Non-Assignable and Non-Transferable.  The Award Recipient shall not have any
voluntary or involuntary right to commute, sell, assign, pledge, anticipate,
mortgage, or otherwise encumber, transfer, hypothecate, or convey in advance of
actual receipt the amounts, if any, payable hereunder or any part thereof,
which are expressly declared to be unassignable and non-transferable, except by
will or by the laws of descent and distribution.

 

(f)                                    Severability.  If any
provision of the Plan is held unenforceable, the remainder of the Plan shall
continue in full force and effect and shall be applied as though the
unenforceable provision were not contained in the Plan.

 

(g)                                 Legal
Agent.  The contact for legal matters
concerning the Plan is the Company’s General Counsel, who may be contacted as
follows:

 

	
  By
  mail:

  	
  General
  Counsel

  
	
   

  	
  Boise
  Cascade, L.L.C.

  
	
   

  	
  P.O. Box
  50

  
	
   

  	
  Boise,
  ID 83728-0050

  
	
   

  	
   

  
	
  By
  telephone:

  	
  208-384-4918

  
	
  By
  fax:

  	
  208-384-6566

  
			

 

(h)                                 Administration.  The contact for general administrative issues
concerning the Plan is the Company’s Vice President, Human Resources, who may
be contacted as follows:

 

	
  By
  mail:

  	
  Vice
  President, Human Resources

  
	
   

  	
  Boise
  Cascade, L.L.C.

  
	
   

  	
  P.O. Box
  50

  
	
   

  	
  Boise,
  ID  83728-0050

  
	
   

  	
   

  
	
  By
  telephone:

  	
  208-384-6451

  
	
  By
  fax:

  	
  208-331-5757

  
			

 

(i)                                     Effective
Date.  The effective date of the Plan
is January 1, 2010.

 

11

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