Document:

EXHIBIT 10.6

                               September 22, 1999

Mr. John F. McGovern
4456 Paces Battle Drive
Atlanta, Georgia  30327

Dear Jack:

This letter will confirm our agreement regarding your resignation from
Georgia-Pacific Corporation ("Georgia-Pacific" or the "Company"). As we
discussed, the effective date of your resignation as Executive Vice President -
Finance and Chief Financial Officer will be November 1, l999, and you will
submit your formal resignation from that position and from any other officer or
director positions you may hold with any Georgia-Pacific subsidiary effective on
that date.

As a result of your resignation, you will be entitled to the same normal
benefits as any similarly situated employee of the Company. In addition, we have
agreed to the following arrangements:

         1)       You will be allowed to defer your resignation as a regular
                  employee until February 29, 2000 (your "deferred resignation
                  date"). During this extended employment period, we will
                  continue your pay at your current base rate of $475,000/annum.
                  Except as provided below, you will continue to be eligible for
                  all perquisites of officer status until December 31, 1999 and
                  for all benefits of employment as a regular salaried employee
                  until your deferred resignation date.

                  You will not be expected (nor will you be authorized) to
                  perform any duties for or on behalf of Georgia-Pacific after
                  November 1, 1999. However, during your extended employment
                  period, you will be expected to abide by the same employment
                  policies as other regular salaried employees, including but
                  not limited to the Code of Business Conduct. In the unlikely
                  event you violate those policies, you would, as any other
                  employee, be subject to such employment action and benefits as
                  the timing and circumstances would warrant.

                  Deferring the effective date of your resignation has the
                  following effect on your normal benefits:

                  a)       You will continue to accrue benefits under the
                           Georgia-Pacific Corporation Salaried Employees
                           Retirement Plan ("SERP") and the Georgia-Pacific
                           Corporation Savings and Capital Growth Plan ("Savings
                           Plan") through your deferred resignation date. You
                           may request distribution of your vested account
                           balance under the Savings Plan and your Personal
                           Account balance under the SERP following your
                           deferred resignation date. You may also elect to
                           leave your funds in the plans (but no later than your
                           attainment of age 70 1/2) and withdraw them at some
                           future time of your choosing. Under the Savings Plan
                           and the SERP, you are eligible for a lump sum
                           distribution of your account balance or Personal
                           Account (as the case may be) at any time, or in the
                           alternative, an immediate or deferred annuity
                           commencing at a time of your choosing (but no later
                           than age 70 1/2). You should note that the "annuity
                           equivalent" of the portion of your account balance
                           under the Savings Plan attributable to Company
                           contributions and your Personal Account balance under
                           the SERP will reduce your

<PAGE>
Mr. John F. McGovern
September 22, 1999
Page 2

                           benefits under your Officer Retirement Agreement,
                           regardless of whether you have received your
                           distribution of these amounts or not.

                  b)       Your present executive (face amount $950,000) and
                           supplemental (face amount $200,000) life insurance
                           will terminate on your deferred resignation date.
                           However, you may then convert your executive and
                           supplemental life insurance coverages to individual
                           policies by contacting the Human Resources Service
                           Center. You will have 31 days from your deferred
                           resignation date to accomplish this conversion.
                           During this conversion period, you will continue to
                           be covered under the life insurance program. At the
                           end of the conversion period, your coverage will stop
                           if you have not elected to convert your coverage to
                           an individual policy.

                  c)       Your present (active employee) medical/dental/vision
                           and long-term disability coverages will terminate on
                           your deferred resignation date. Under COBRA, however,
                           you will be entitled to continue your present
                           medical/dental/vision plan coverage for a maximum of
                           eighteen (18) months thereafter. You will receive
                           more detailed information regarding the procedures
                           for electing this coverage under separate cover.

         2)       We will pay you a lump sum of $673,147, less applicable tax
                  withholding, will be paid to you as soon as practicable after
                  January 1, 2000.

         3)       We will pay you $45,673 in lieu of all earned and accrued
                  vacation entitlements after November 1, 1999. This sum, less
                  applicable tax withholding, will be paid to you as soon as
                  practicable after your deferred resignation date.

         4)       You will receive a bonus under the Georgia-Pacific Corporation
                  Economic Value Incentive Plan (the "Incentive Plan") for 1999
                  in an amount determined by the Compensation Committee of the
                  Board of Directors of the Company, which shall not be less
                  than $299,300. This payment, less applicable tax withholding,
                  will be made to you at the time Incentive Plan payments are
                  made to regular participants. You will not be entitled to any
                  payment under the Incentive Plan for 2000.

         5)       We will amend your stock option agreements under the
                  Georgia-Pacific Corporation 1995 Shareholder Value Incentive
                  Plan ("SVIP"), the Georgia-Pacific Corporation/Georgia-Pacific
                  Group 1997 Long-Term Incentive Plan ("G-P LTIP"), and the
                  Georgia-Pacific Corporation/Timber Group 1997 Long-Term
                  Incentive Plan ("Timber LTIP") to provide for accelerated
                  vesting and/or extended exercise periods for certain of your
                  outstanding options (except for your 1997 grants under the
                  SVIP) so that, as of your deferred resignation date, your
                  outstanding options will be vested and exercisable as follows:

        --------------------- ---------- ---------- ---------------------------
                 PLAN         AWARD DATE   VESTED      EXERCISE PERIOD
                                         PERCENTAGE
        --------------------- ---------- ---------- ---------------------------
        SVIP (G-P and Timber
        Stock)                 04/01/95     100%    Through March 31, 2005
        --------------------- ---------- ---------- ---------------------------
        SVIP (G-P and
        Timber Stock)          02/01/96     100%    Through January 31, 2006
        --------------------- ---------- ---------- ---------------------------
        1997 Timber LTIP       12/17/97     100%    Through December 31, 2005
        --------------------- ---------- ---------- ---------------------------
<PAGE>
Mr. John F. McGovern
September 22, 1999
Page 3

        --------------------- ---------- ---------- ---------------------------
        1997 G-P LTIP          01/29/98     100%    Through December 31, 2005
        --------------------- ---------- ---------- ---------------------------
        1997 G-P LTIP          01/28/99     100%    Through December 31, 2005
        --------------------- ---------- ---------- ---------------------------

                  In the event that your February 3, 1997 grants under the SVIP
                  to purchase G-P Stock and/or Timber Stock vest on February 3,
                  2000 due to attainment of the SVIP's performance standards,
                  you will be able to exercise the vested options at any time
                  prior to February 3, 2007. If either of such grants do not
                  vest on February 3, 2000, then the Company, at its option, may
                  either i) amend the SVIP to provide for 100% vesting and an
                  extended exercise period for either of such options through
                  February 2, 2007, or ii) pay you a lump sum amount equal to
                  the excess of the closing price of G-P Stock or Timber Stock,
                  as applicable, on any date before February 3, 2007 selected by
                  you, over the stated exercise price for such options.

                  In addition, your Performance Share Grant Agreement under the
                  G-P LTIP dated January 28, 1999 will be amended to waive the
                  five year vesting requirement with respect to any Performance
                  Shares which are awarded for the Performance Period ending on
                  December 31, 1999.

         6)       We will amend your Officer Retirement Agreement so that you
                  will be eligible to receive "Early Retirement" benefits
                  beginning in March 2000, but otherwise subject to the terms
                  and conditions of the Agreement, including but not limited to
                  Section 9. Your monthly early retirement benefit at such time
                  will equal 72 percent of your accrued monthly normal
                  retirement benefit as of your deferred resignation date. Your
                  accrued monthly normal retirement benefit is 50 percent of
                  your average monthly cash salary reduced by the "annuity
                  equivalent" (as defined in the agreement) of your benefit
                  entitlements under any other retirement plans sponsored by
                  Georgia-Pacific or its subsidiaries (to the extent
                  attributable to Georgia-Pacific's contributions). Your monthly
                  "cash salary" will be calculated as of December 31, 1999 and
                  will take into account your base salary (including deferrals
                  in the Savings Plan) and incentive bonuses during your 48
                  months of employment immediately preceding that date. If
                  certain conditions are met, the agreement provides death
                  benefits for your surviving spouse.

         7)       The Company will pay the premiums for extended
                  medical/dental/vision coverage under COBRA for you and your
                  dependents for a maximum of eighteen months following your
                  deferred resignation date. In order to implement this
                  coverage, when you receive your COBRA notice, you must
                  promptly elect continuation coverage in accordance with the
                  instructions in the notice. The Company payment will be made
                  directly to the applicable health plan. At the end of the
                  COBRA continuation coverage period, the Company will provide
                  continued medical benefits for you and your dependents that
                  are substantially similar to the medical benefits provided
                  under Georgia-Pacific's retiree medical program as in effect
                  from time to time. You will be required to contribute 50% of
                  the premium costs for such benefits until you attain age 65
                  and 100% of the premium costs thereafter. Any such medical
                  benefits may, at the Company's option, be provided through the
                  purchase of an insurance policy. Regardless of whether your
                  medical benefits are provided through insurance or otherwise,
                  the amount of your premium costs shall be the same as the
                  premium charged to participants under Georgia-Pacific's
                  retiree medical program from time to time.

If you have any questions concerning your termination or welfare benefits
contact Patricia A. Barnard in the Compensation and Benefits Department in
Atlanta at 404/652-5584. Questions pertaining to the SVIP,
<PAGE>
Mr. John F. McGovern
September 22, 1999
Page 4

the 1997 Timber LTIP, or the 1997 G-P LTIP should be directed to First Chicago
Trust at 1-888-700-3837. Of course, all benefits will be subject to applicable
taxes as well as to the terms and conditions of the applicable benefit plan,
policy or arrangement.

As you know, the arrangement detailed above adds substantially to those benefits
to which you are normally entitled upon your separation from Georgia-Pacific. In
consideration of these additional benefits, and so that there will be no
misunderstanding as to your entitlement to any additional money or benefits, you
must agree to release Georgia-Pacific, all related companies, and their
officers, directors, and employees, from all actions, claims and liabilities of
any kind arising out of either your employment with Georgia-Pacific or your
separation from employment. This release includes (but is not limited to) any
rights or claims you may have under the Age Discrimination in Employment Act,
which prohibits age discrimination in employment; Title VII of the Civil Rights
Act of 1964, which prohibits discrimination in employment based on race, color,
national origin, religion or sex; the Americans with Disabilities Act, which
prohibits discrimination in employment based on disability; the Equal Pay Act,
which prohibits paying men and women unequal pay for equal work; or any other
federal, state or local laws or regulations prohibiting employment
discrimination. This also includes a release of any claims for wrongful
discharge arising from your separation from employment and any claims under any
Georgia-Pacific severance plan. This release includes both claims that you know
about and those you may not know about. However, this release does not affect
your rights under this resignation agreement, any claim for indemnification
under the "Indemnification of Directors and Officers" article of the
Georgia-Pacific Corporation By-laws or any rights you have accrued under the
SERP, the Savings Plan, your Officer Retirement Agreement (as amended) or
insurance or other welfare benefit plans (other than any severance plans or
arrangements). Nor does this release waive or release any rights or claims that
you may have under the Age Discrimination in Employment Act which arise after
the date you sign this agreement. Of course, I know you understand that nothing
in this letter is to be construed as an admission of liability of wrongdoing of
any sort by Georgia-Pacific.

The special benefits package described above is also conditioned on your promise
never to file a lawsuit asserting any claims which are included in the release
set out in the preceding paragraph. If you break this promise, you agree to pay
for all costs incurred by Georgia-Pacific, any related company, or the directors
or employees of any of them, including reasonable attorneys' fees in defending
against your claim. Moreover, if you file any such lawsuit or other claim, you
agree that Georgia-Pacific has the right, in its sole discretion, not to pay any
special payment outlined above and/or to cease the payment of any further
benefits under the special arrangement outlined above, and you further agree to
tender back any and all payments previously paid under this agreement.

As another condition, you must agree to provide, to the extent necessary,
reasonable cooperation and consultation with the Company and its attorneys
regarding any litigation or claims arising our of matters that were under your
management or responsibility. Obviously, Georgia-Pacific will reimburse your
reasonable out-of-pocket expenses associated with such cooperation and
assistance.

As a final condition, you must agree to keep the terms of this agreement
confidential. You agree not to disclose any provision of this agreement to
anyone except as set forth below or as necessary in the filing of your tax
returns or with the express written consent of Georgia-Pacific.

I urge you to think over the terms of this proposed agreement carefully before
accepting it and to discuss it with your family, an attorney of your choice or
your financial advisor before making a decision. Our offer will remain open for
twenty-one days from the date of this letter. Once you have agreed to the terms
<PAGE>
Mr. John F. McGovern
September 22, 1999
Page 5

set out in this letter (as evidenced by your signature below) you will have one
week in which to revoke your decision. This agreement will not become effective
or enforceable until one week from the date of your signature (assuming of
course, that you do not revoke it), and thus the special payments described
above cannot be paid prior to that time.

If you feel you need more time to make a decision or if you would like to
discuss this matter further, let me know. By signing below, you are indicating
that you have discussed the terms of our proposed agreement with whomever you
wished, that you have had as much time as you wished in which to consider it,
that you fully understand it, including its final and binding effect, and that
you fully and voluntarily agree to the terms and conditions set forth. By
signing below, you are also indicating that the terms and provisions set forth
in this letter constitute the entire agreement between you and Georgia-Pacific
and supersede all previous communications, negotiations, proposals,
representations, conditions, or other agreements, whether written or oral,
between you and Georgia-Pacific with respect to the subject matter of this
letter.

Finally, it is routine for the Company to remind all departing employees, but
especially departing officers, of their obligations under the Employee
Confidential Information and Invention Agreement. As you are no doubt aware,
this agreement requires you to maintain in perpetuity the confidentiality of
Company trade secrets and any other secret, confidential, or proprietary
information of the Company, including, but not limited to, secret, confidential
or proprietary information concerning:

   --Company products, equipment, processes, formulas, methods and procedures;
   --Company personnel, customers, suppliers, contractors, and agents;
   --Company plans, strategies, records, communications, and procedures,
     including but not limited to litigation strategies, information
     developed in anticipation of litigation and information protected by
     the attorney/client privilege; and
   --computer software and documentation owned or licensed by the Company.

On behalf of Georgia-Pacific, I extend to you my best wishes for success in your
future endeavors.

                                            Sincerely,

                                            GEORGIA-PACIFIC CORPORATION

                                             By: /s/ JAMES F. KELLEY
                                                 -------------------
                                                  James F. Kelley
                                                  Senior Vice President - Law
                                                  and General Counsel

<PAGE>
Mr. John F. McGovern
September 22, 1999
Page 6

SO AGREED:

/s/ JOHN F. MCGOVERN
-----------------------
John F. McGovern

Date:  September 22, 1999EXHIBIT 10.7

                           GEORGIA-PACIFIC CORPORATION
                          ECONOMIC VALUE INCENTIVE PLAN

        (As Amended and Restated by Action of the Compensation Committee
                              on January 21, 2000)

         By action of its Board of Directors on February 1, 1995,
Georgia-Pacific Corporation adopted the Georgia-Pacific Corporation 1995
Economic Value Incentive Plan ("EVIP") for its senior management and staff
effective for calendar year 1995 and subsequent Covered Years. By action of the
Compensation Committee on January 28, 1999, the EVIP was amended and restated as
the "Georgia-Pacific Corporation Economic Value Incentive Plan", effective for
calendar year 1999 and subsequent Covered Years. By action of the Compensation
Committee on January 21, 2000, the EVIP was further amended and restated to read
as follows:

I.       DEFINITIONS

         For purposes of the EVIP, the following terms or phrases shall have the
indicated meanings:

         1. "Affected Officer" means any officer of Georgia-Pacific Corporation
as of January 1 of a given Covered Year (other than the CEO) who participates in
the EVIP for that Covered Year and who in the judgment of the Committee may
receive total compensation for that Covered Year in excess of the limit on tax
deductible compensation specified in Section 162(m) of the Internal Revenue Code
of 1986 or any statute which is the successor or replacement of Section 162(m),
as the same may be amended from time to time (and any regulations promulgated
thereunder). The Committee shall determine which officer Participants in this
Plan will be considered Affected Officers in a given Covered Year prior to March
31 of that Covered Year.

         2. "Base Salary as of January 1 of that Covered Year" means a
Participant's base annual salary in effect on January 1 of a given Covered Year,
PROVIDED THAT the determination of "Base Salary on January 1 of that Covered
Year" shall take into account base salary increases

<PAGE>
retroactively effective to that date as approved (in accordance with normal
corporate procedures) by management or by the Committee or the Board on or
before March 31 of that Covered Year, and PROVIDED FURTHER THAT, for Employees
who become Participants for that Covered Year after the commencement of that
year, "Base Salary on January 1 of that Covered Year" shall mean such
Participant's base annual salary in effect on the date his/her participation
commences.

         3. "Board" means the Board of Directors of the Corporation.

         4. "Business Unit" means any operating group, business segment,
division or corporate staff department of the Corporation (including, without
limitation, the G-P Group and/or TTC) for which Relative EVA or EVA performance
standards are set for a given Covered Year.

         5. "CEO" means the Chairman and Chief Executive Officer of
Georgia-Pacific Corporation or, if one person does not hold both of these
offices, the Chief Executive Officer of Georgia-Pacific Corporation.

         6. "Committee" means the Compensation Committee of the Board, as
constituted from time to time, or such subcommittee of that body as the
Compensation Committee shall specify to act for the Compensation Committee with
respect to this Plan, provided however that any such subcommittee shall consist
entirely of (but not less than two) "outside directors" as that term is defined
pursuant to Section 162(m) of the Internal Revenue Code of 1986, as amended from
time to time, or any statute which is a successor or replacement for such
statute (and applicable regulations promulgated thereunder).

         7. "Compensation" means midpoint of the Salary Grade of a Participant
for a given Covered Year determined as of January 1 of that Covered Year by the
Plan Administrator, provided that the determination of "Compensation" shall take
into account Salary Grade and Salary Grade midpoint increases retroactively
effective to that date as approved (in accordance with normal corporate
procedures) by management or by the Committee on or before the date of the
Board's first regular meeting during that Covered Year.

                                      -2-
<PAGE>

         8. "Corporation" means Georgia-Pacific Corporation and its
subsidiaries.

         9. "Covered Year" means any calendar year beginning on or after January
1, 2000.

         10. "Discretionary Bonus" means that portion of a Participant's award
under this Plan for a given Covered Year which is determined in accordance with
the provisions of subsection 2 of Section III.

         11. "Discretionary Bonus Limit" means, for a given Covered Year, (i)
for Participants other than the CEO, the least of (A) the amount of the maximum
total Quantitative Bonus and Discretionary Bonus the Participant could receive
if both Target Relative EVA for the G-P Group and Target EVA for TTC were
achieved in that Covered Year (as determined by the Committee pursuant to
paragraphs 1(a)(ii) and (iii) of Section III), (B) 100% of the Participant's
Base Salary on January 1 of that Covered Year, reduced by any Quantitative Bonus
that may be payable for that Covered Year or (C); the amount of the maximum
total Quantitative Bonus and Discretionary Bonus the Participant could receive
if both Maximum Relative EVA for the G-P Group and Maximum EVA for TTC were
achieved in that Covered Year (as determined by the Committee pursuant to
paragraphs 1(a)(ii) and (iii) of Section III), reduced by any Quantitative Bonus
that may be payable for that Covered Year and (ii) for the CEO, the lesser of
(A) an amount equal to twice the Quantitative Bonus to which he would be
entitled for that Covered Year, or (B) 200% of the CEO's Base Salary on January
1 of that Covered Year, reduced by any Quantitative Bonus that may be payable
for that Covered Year.

         12. "EVA" means "economic value added" for a given Covered Year, which
is defined, in the case of a given Business Unit, as "net operating profit after
tax" for that Business Unit for that Covered Year minus a capital charge
determined by multiplying its weighted average cost of debt and equity capital
for that Covered Year by that Business Unit's "average invested capital" for
that Covered Year. For purposes of determining Relative EVA performance of the
G-P Group, EVA for a given Peer Group Company will be "Indexed EVA" determined
by subtracting that Peer Group Company's weighted average cost of debt and

                                      -3-
<PAGE>

equity capital from its "return on average invested capital" and multiplying the
difference by the G-P Group's "average invested capital". For purposes of this
definition: (i) "net operating profit after tax" for a given entity for a given
Covered Year is its reported net earnings for that Covered Year adjusted by (A)
adding its net interest expense for that Covered Year, (B) adding its goodwill
amortization for that Covered Year, (C) eliminating the effect of changes in its
LIFO inventory reserve for that Covered Year, (D) eliminating the effects of
Special Items during that Covered Year (such as non-recurring gains or losses,
disposals of assets, restructuring charges and similar items), and (E) adjusting
taxes for that Covered Year to reflect actual cash taxes paid and eliminating
the tax benefit of interest expense; (ii) "average invested capital" for a given
entity for a given Covered Year is the average of the sum of its short-tem debt,
long-term debt and adjusted book value of equity at the beginning of that
Covered Year and at the end of that Covered Year; and (iii) "return on average
invested capital" for a given entity for a given Covered Year is its "net
operating profit after tax" divided by its "average invested capital" for that
Covered Year. All determinations made under this subsection 12 shall be based
(a) with respect to the Corporation, on its unaudited financial results for the
Covered Year, and (b) with respect to each Peer Group Company, on its unaudited
financial results as reported on its Forms 10Q for the first three quarters of
the Covered Year plus its unaudited financial results for the fourth quarter of
the Covered Year determined from financial data provided in its earnings
releases in January of the immediately following calendar year using the same
assumptions, policies and procedures used by the Corporation to determine fourth
quarter financial results for each such Peer Group Company in 1999 for purposes
of calculating the 1999 awards under this Plan for Participants other than the
CEO and the four next most highly compensated Participants.

         13. "Employee" means any exempt full-time, salaried employee of the
Corporation.

         14. "G-P Group" means the Business Unit known as the "Georgia-Pacific
Group", VIZ. that portion of the business and operations of the Corporation
which is reflected by the

                                      -4-
<PAGE>

class of the Corporation's common stock known as Georgia-Pacific
Corporation-Georgia-Pacific Group Common Stock.

         15. "Maximum EVA" means the EVA performance level of TTC at which the
percentage of Compensation paid as a Quantitative Bonus reaches its maximum, as
determined by the Committee pursuant to subsection 1 of Section III.

         16. "Maximum Relative EVA" means the Relative EVA performance level of
the G-P Group at which the percentage of Compensation paid as a Quantitative
Bonus reaches its maximum, as determined by the Committee pursuant to subsection
1 of Section III.

         17. "Participant" means an Employee of the Corporation who, for a given
Covered Year, meets the eligibility standards of Section II.

         18. "Peer Group Companies" means, for a given Covered Year, the
companies included in the Standard & Poors Paper and Forest Products Industry
Index (but excluding the Corporation) on January 1 of that year; provided,
however that if a Peer Group Company is not in existence as an independent
entity generating the types of public information needed for EVA calculations
under this EVIP both at the beginning and the end of that Covered Year, that
company shall be disregarded for purposes of making awards under this Plan for
that Covered Year, notwithstanding its inclusion in the group of Peer Group
Companies otherwise applicable to such calculations.

         19. "Plan" or "EVIP" means the Georgia-Pacific Corporation Economic
Value Incentive Plan as set forth in this document, as amended from time to
time.

         20. "Plan Administrator" means the person or entity having
administrative authority under this EVIP, as specified in Section IV.

         21. "Quantitative Bonus" means that portion of a Participant's award
under this Plan for a given Covered Year which is determined in accordance with
the provisions of subsection 1 of Section III.

         22. "Quantitative Bonus Limit" means, for a given Covered Year, (i) for
any Participant other than the CEO, the lesser of (A) 200% of the amount which
is the product of

                                      -5-
<PAGE>

(x) the maximum total Quantitative Bonus and Discretionary Bonus that the
Participant could receive if both Target Relative EVA for the G-P Group and
Target EVA for TTC were achieved in that Covered Year (as determined by the
Committee under paragraph 1(a)(ii) and (iii) of Section III) and (y) the
weighting assigned by the Committee (under paragraph 1(a)(vi) of Section III) to
the Quantitative Bonus opportunity for that Covered Year or (B) 100% of the
Participant's Base Salary on January 1 of that Covered Year; and (ii) for the
CEO, the lesser of (A) an amount equal to the amount described in (i)(A) above
calculated for the CEO or (B) 200% of the CEO's Base Salary on January 1 of that
Covered Year.

         23. "Relative EVA" means, for a given Covered Year, the percentile
ranking of the G-P Group's EVA performance for that Covered Year as compared to
the "indexed EVA" performance (determined pursuant to subsection 12 of this
Section I) of the Peer Group Companies for that year.

         24. "Salary Grade" means the salary grade of a Participant as
established from time to time by the Compensation Department of the Corporation
in accordance with the Corporation's generally applicable policies.

         25. "Target EVA" means the EVA performance level of TTC as determined
by the Committee pursuant to subsection 1 of Section III.

         26. "Target Relative EVA" means the Relative EVA performance level of
the G-P Group as determined by the Committee pursuant to subsection 1 of Section
III.

         27. "Threshold EVA" means the minimum EVA of TTC for which a
Quantitative Bonus will be paid, as determined by the Committee pursuant to
subsection 1 of Section III.

         28. "Threshold Relative EVA" means the minimum Relative EVA of the G-P
Group for which a Quantitative Bonus will be paid, as determined by the
Committee pursuant to subsection 1 of Section III.

         29. "TTC" means the Business Unit known as "The Timber Company", VIZ.
that portion of the business and operations of the Corporation which is
reflected by the class of the

                                      -6-
<PAGE>

Corporation's common stock known as Georgia-Pacific Corporation-Timber Group
Common Stock.

II.      ELIGIBILITY

         1. Participation Criteria. An Employee will be eligible to participate
in the EVIP for a given Covered Year if he/she is, on January 1 of that Covered
Year, an officer of Georgia-Pacific Corporation (or becomes an officer during
that Covered Year) or, if a non-officer, has been designated by the CEO or the
Committee as a Participant at the beginning of that year or has been added as a
Participant in the EVIP by act of the CEO.

         2. Special Rules. Notwithstanding anything in subsection 1 of this
Section II to the contrary:

         (a)      A Participant who terminates employment with the Corporation
                  during a given Covered Year may receive a prorated award or no
                  award pursuant to subsection 4 of Section III.

         (b)      The CEO shall have authority, in his discretion, to add or
                  delete Employees from the Participant group, PROVIDED THAT no
                  person may be added as a Participant during the fourth
                  calendar quarter of a Covered Year, and PROVIDED FURTHER THAT
                  the bonus for an Employee who is added as a Participant for a
                  given Covered Year will be prorated based on the number of
                  complete calendar months he/she was a Participant for that
                  Covered Year. In each case in which the CEO adds a
                  Participant, he shall designate the effective date of his/her
                  participation and his/her Business Unit.

         (c)      Participants in other incentive compensation programs
                  (excluding any stock option plan) maintained by the
                  Corporation are not eligible to participate in the EVIP.

                                      -7-
<PAGE>

III.     AWARDS

         Bonuses under the EVIP are composed of two different types of awards,
VIZ., the non-discretionary annual bonus award ("Quantitative Bonus") and the
discretionary long-term bonus award ("Discretionary Bonus"):

         1. Award of Quantitative Bonuses. Quantitative Bonuses for each
Participant under this EVIP for a given Covered Year will be an amount
determined pursuant to standards adopted by the Committee prior to March 31 of
that Covered Year as follows:

         (a)      The Committee will determine, in its discretion:

                  (i)      The identity of any Affected Officers for the Covered
                           Year in question;

                  (ii)     The Threshold Relative EVA, Target Relative EVA and
                           Maximum Relative EVA levels for that Covered Year for
                           the G-P Group;

                  (iii)    The Threshold EVA, Target EVA and Maximum EVA levels
                           for that Covered Year for TTC;

                  (iv)     For the G-P Group, the total Quantitative Bonus and
                           Discretionary Bonus permissible under this Plan
                           (expressed as a percentage of Compensation) for each
                           Salary Grade at each of the Relative EVA levels
                           described in subparagraph (ii) above (and at such
                           other Relative EVA levels as the Committee, in its
                           discretion, may decide to specify);

                  (v)      For TTC, the total Quantitative Bonus and
                           Discretionary Bonus permissible under this Plan
                           (expressed as a percentage of Compensation) for each
                           Salary Grade at each of the EVA levels described in
                           subparagraph (iii) above (and at such other EVA
                           levels as the Committee, in its discretion, may
                           decide to specify);

                  (vi)     The percentage of the total bonus opportunity for
                           that Covered Year which will comprise the
                           Quantitative Bonus; and

                  (vii)    For each Participant for that Covered Year whose
                           Quantitative Bonus will be based on both G-P Group
                           Relative EVA and TTC EVA

                                      -8-
<PAGE>

                  performance, the fractional weighting assigned to G-P Group
                  Relative EVA and/or TTC EVA performance for each Participant,
                  such weightings to total 1 for each such Participant.

         (c)      The amount of Quantitative Bonus (expressed as a percentage of
                  Compensation) for any Relative EVA level between a given level
                  and the next preceding or following level shall be determined
                  by interpolation between those two levels. If the achieved
                  Relative EVA level for the G-P Group for a given Covered Year
                  is less than the Threshold Relative EVA set for the G-P Group
                  for that year, no Quantitative Bonuses with respect to the
                  performance of the G-P Group for that year shall be paid. If
                  the achieved Relative EVA level for the G-P Group for a given
                  Covered Year exceeds the Maximum Relative EVA set for the G-P
                  Group for that year, the percentage of Compensation
                  corresponding to the Maximum Relative EVA for the G-P Group
                  for that year shall be used to determine the amount of the
                  Quantitative Bonus.

         (d)      The amount of Quantitative Bonus (expressed as a percentage of
                  Compensation) for any EVA level between a given level and the
                  next preceding or following level shall be determined by
                  interpolation between those two levels. If the achieved EVA
                  level for TTC for a given Covered Year is less than the
                  Threshold EVA set for TTC for that year, no Quantitative
                  Bonuses with respect to the performance of TTC shall be paid.
                  If the achieved EVA level for TTC for a given Covered Year
                  exceeds the Maximum EVA set for TTC for that year, the
                  percentage of Compensation corresponding to the Maximum EVA
                  for TTC for that year shall be used to determine the amount of
                  the Quantitative Bonus.

         (d)      The Quantitative Bonus of any Participant in a given Covered
                  Year shall be calculated as follows:

                  (i)      After the close of that Covered Year and before the
                           payment date specified in subsection 3 of this
                           Section III, the Committee shall certify

                                      -9-
<PAGE>

                           in writing the extent to which the Relative EVA
                           standards for the G-P Group and the EVA standards for
                           TTC, determined pursuant to this subsection 1 of this
                           Section III, have been achieved for that Covered
                           Year.

                  (ii)     Based upon the achieved Relative EVA performance for
                           the G-P Group and achieved EVA performance for TTC
                           for that Covered Year determined in accordance with
                           subparagraph (i) of this paragraph (d), the
                           corresponding percentages of Compensation for the
                           Salary Grade of each Participant shall be determined
                           using the standards established pursuant to paragraph
                           (a) of this subsection 1.

                  (iii)    The Participant's Quantitative Bonus for that Covered
                           Year will equal the product of (x) the sum of the
                           percentages calculated pursuant to subparagraph (ii)
                           of this paragraph (e), and (y) the Participant's
                           Compensation.

         (f)      Notwithstanding anything in this Plan to the contrary, the
                  Quantitative Bonus for any Participant for a given Covered
                  Year may not exceed the Quantitative Bonus Limit for that
                  year.

         2. Award of Discretionary Bonuses. Any Participant shall be eligible to
receive a Discretionary Bonus for a given Covered Year, regardless of whether
he/she receives an Quantitative Bonus for that year, PROVIDED THAT the CEO will
not be eligible for a Discretionary Bonus for a given Covered Year if he is not
eligible for an Quantitative Bonus for that year. Discretionary Bonus amounts
will be determined as follows:

         (a)      Subject to the limits of this subsection 2, the CEO, in
                  his/her discretion, shall determine the amount of the
                  Discretionary Bonus for a given Covered Year for each
                  Participant (other that the CEO and each Affected Officer)
                  after reviewing, in his/her discretion, (i) the performance of
                  the Business Unit to which such Participant belongs during
                  that Covered Year with respect to EVA drivers

                                      -10-
<PAGE>

                  specified no later than March 31 of that Covered Year by the
                  CEO, and (ii) the actions taken by the Business Unit to which
                  such Participant belongs during that Covered Year to increase
                  the long-term EVA of that Business Unit and/or the Corporation
                  as a whole. In conducting this review, the CEO may consider
                  any actions by Business Units he/she deems appropriate,
                  including but not limited to actions to (i) increase
                  efficiency (by increasing revenue or reducing costs using the
                  same or less capital), (ii) develop new investment
                  opportunities, and/or (iii) reduce or divest under-performing
                  assets.

         (b)      For each Affected Officer, the Discretionary Bonus for a given
                  Covered Year shall equal the Discretionary Bonus Limit for
                  such Affected Officer (determined in accordance with
                  subsection 11 of Section I), subject to reduction by the
                  Committee, in its discretion, based on its review and
                  evaluation of such performance criteria as the Committee may
                  deem appropriate.

         (c)      For the CEO, the Discretionary Bonus for a given Covered Year
                  shall equal 200% of the Quantitative Bonus applicable to
                  him/her for that year, subject to reduction by the Committee
                  in its discretion based on its review and evaluation of such
                  performance criteria as the Committee may deem appropriate.

         (d)      Notwithstanding anything in this Plan to the contrary:

                  (i)      The amount of the Discretionary Bonus for each
                           Participant (including the CEO) will also reflect
                           his/her individual performance - and the performance
                           of any Business Unit under his/her supervision - with
                           respect to the Corporation's standing policies (as
                           applicable and in effect from time to time), in
                           particular (but without limitation) the Corporation's
                           Code of Business Conduct and its safety and
                           environmental policies; and

                  (ii)     For all Participants, the Discretionary Bonus for a
                           given Covered Year may not exceed the Discretionary
                           Bonus Limit for that year.

                                      -11-
<PAGE>

         3. Payment of Awards. Awards shall be paid as soon as practicable after
the calculation of achieved Relative EVA and EVA levels for a given Covered
Year, but in no event later than March 15 following the end of that Covered
Year. In the event of the death of a Participant, any awards due to - or in
respect of - him/her under this Plan will be paid, first, to his/her surviving
spouse (if any) and, if there is no surviving spouse, to his/her estate.

         4. Special Situations.

         (a)      A Participant whose employment with the Corporation terminates
                  during a given Covered Year (i) for any reason after he/she
                  has attained at least age 65 or has attained age 55 and
                  accumulated at least ten (10) years of service for vesting
                  purposes under the Georgia-Pacific Corporation Savings and
                  Capital Growth Plan, (ii) because of his/her death, (iii)
                  because of his/her total and permanent disability (as
                  determined by the Plan Administrator pursuant to the standards
                  of the Georgia-Pacific Corporation Salaried Long-Term
                  Disability Plan, whether or not the Participant has enrolled
                  in that plan) or (iv) for any other reason specifically
                  approved by the Plan Administrator (PROVIDED THAT, for
                  purposes of this clause (iv) only, the approval of the
                  Committee shall be required in the case of the CEO or an
                  Affected Officer) shall be entitled to a bonus award prorated
                  to reflect the number of complete calendar months actually
                  worked during that Covered Year payable at the same time
                  bonuses for other Participants are paid for that Covered Year.

         (b)      Subject to paragraph (a) of this subsection 4, Participants
                  who during a given Covered Year (i) voluntarily terminate
                  their employment with the Corporation or (ii) are
                  involuntarily terminated by the Corporation for any reason,
                  will not be eligible to receive a bonus under this Plan for
                  that Covered Year.

         5. Maximum Total Bonus Award. Notwithstanding anything in this Plan to
the contrary, no Participant may receive a Quantitative Bonus and Discretionary
Bonus award under this Plan in any Covered Year which in total exceeds
$2,000,000.

                                      -12-
<PAGE>

IV. ADMINISTRATION

                The Plan will be administered by the Committee. Decisions and
determinations by the Committee shall be final and binding upon all parties,
including the Corporation, shareholders, Participants and other employees. The
Committee shall have the authority to administer the Plan, make all
determinations with respect to the construction and application of the Plan and
the Board resolutions establishing the Plan, adopt and revise rules and
regulations relating to the Plan and make any other determinations which it
believes necessary or advisable for the administration of the Plan. No member of
the Committee shall be liable to any person for any action taken or omitted in
connection with the interpretation and administration of this Plan unless
attributable to the member's own willful misconduct or lack of good faith. The
Committee is expressly authorized to appoint one or more individuals, who need
not be members of the Committee, or entities to administer the Plan and to make
all determinations with respect to the construction and application of the Plan,
and otherwise exercise all powers vested in the Committee under the Plan. Such
agents shall serve at the pleasure of the Committee. The decisions of any such
agents taken within the scope of his/her authority will have the same effect as
decisions by the Committee. Notwithstanding anything in this Section IV to the
contrary, the Committee may not delegate authority which under this Plan is
expressly reserved to the Committee alone.

V. AMENDMENT OR TERMINATION

                  The Board, by action of the Committee, expressly reserves the
right to amend or terminate the EVIP at any time, PROVIDED THAT no Quantitative
Bonus for a given Covered Year may thereby be reduced on or after December 31 of
that Covered Year.

                                      -13-
<PAGE>

VI. MISCELLANEOUS

         1. Awards Unfunded. Awards payable pursuant to the EVIP (if any) shall
be paid solely from the general assets of the Corporation. No trust or other
funding device providing for the identification or segregation of assets to fund
EVIP awards has been established, nor is it the Corporation's intention to do
so.

         2. Taxation of Awards. Awards under the EVIP will be compensation
subject to Federal and State tax withholding (including, without limitation,
FICA withholding) in the calendar year in which they are paid.

         3. Retirement Plans and Welfare Benefit Plans. Except as otherwise
specified in the plan in question, awards under the EVIP will not be included as
"compensation" for purposes of the Corporation's retirement plans (both
qualified and non-qualified) or welfare benefit plans.

         4. Spendthrift Clause. A Participant may not assign, anticipate,
alienate, commute, pledge or encumber any benefits to which he or she may become
entitled under the EVIP, nor are the awards subject to attachment or garnishment
by any creditor.

         5. No Contract of Employment. The Corporation intends that the awards
provided under the EVIP be a term of employment and a part of each Participant's
compensation and benefit package. Participation in this Plan shall not
constitute an agreement (1) of the Participant to remain in the employ of and to
render his/her services to the Corporation or (2) of the Corporation to continue
to employ such Participant, and the Corporation may terminate the employment of
a Participant at any time with or without cause.

         6. Previous EVIP Interpretations. The amendment and restatement of this
Plan is not intended to and shall not - affect the continuing validity of EVIP
interpretations issued by the Plan Administrator prior to January 1, 2000.

                                      -14-
<PAGE>

VII.     EFFECTIVE DATE/SHAREHOLDER APPROVAL

         1. Effective Date. This amendment and restatement of the EVIP shall
become effective as of January 1, 2000.

         2. Shareholder Approval. The Compensation Committee has determined that
the approval of the shareholders of the Corporation is not required for this
amendment and restatement.

                                      -15-

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