Document:

Potlatch Corporation Severance Program

 Exhibit (10)(b) 
  
 POTLATCH CORPORATION 
  
 SEVERANCE PROGRAM FOR 
  
 EXECUTIVE EMPLOYEES 
  
 As Amended and Restated as of May 24, 2005 
  
 SECTION 1. ADOPTION AND PURPOSE OF PROGRAM. 
  
 The Potlatch Corporation Severance Program for Executive Employees (the “Program”) was adopted effective September 30, 1978, by Potlatch
Corporation, a Delaware corporation (the “Company”), to provide a program of severance payments to certain employees of the Company and its designated subsidiaries. The Program was last amended and restated effective as of May 24, 2005, to
read as set forth herein. The Program is an employee welfare benefit plan within the meaning of section 3(1) of the Employee Retirement Income Security Act of 1974 (“ERISA”) and section 2510.3-1 of the regulations issued thereunder. The
plan administrator of the Program for purposes of ERISA is the Company. 
  
 SECTION 2. ELIGIBILITY AND DETERMINATION OF VESTING SERVICE. 
  
 All Principal Officers and appointed vice presidents of the Company and of any subsidiary of the Company that is designated to participate in the Program by the Executive Compensation and Personnel Policies Committee
of the Board of Directors of the Company and such other employees of the Company or any such subsidiary who are designated by such Committee to participate in the Program shall be eligible to participate in the Program. The Company and such
designated subsidiaries are referred to collectively in the Program as the “Participating Companies.” For purposes of the Program, “Principal Officers” shall include the chief executive officer, president, secretary, treasurer
and controller and any elected vice- 

  

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president of a Participating Company. Those Principal Officers and other employees who participate in the program are referred to herein as “Eligible
Employees.” As a condition to participation in the Program, each Eligible Employee shall agree in writing to become bound by its terms, including, without limitation, the provisions of Section 10. 
  
 For purposes of the Program, an Eligible Employee’s Years of Vesting
Service shall be determined under the provisions of the Potlatch Corporation Salaried Employees’ Retirement Plan as in effect from time to time (the “Retirement Plan”). 
  
 SECTION 3. SEVERANCE BENEFITS. 
  
 (a) Basic Severance Benefits. Upon the occurrence of any of the events specified in Section 4(a), an Eligible Employee shall receive (in lieu of
any other severance benefit payable under any other plan or program now or hereafter maintained by a Participating Company) Basic Severance Benefits under the Program as follows: 
  
 (i) A cash benefit equal to three (3) weeks of the Eligible Employee’s Base Compensation for each full
Year of Vesting Service completed by such Eligible Employee; 
  
 (ii) If at the end of the number of weeks following termination of the Eligible Employee’s employment equal to three (3) times the number of full Years of Vesting Service completed by the Eligible Employee he or
she has not obtained a position with another employer (despite reasonable, diligent and good faith efforts to do so) at a salary comparable to the Eligible Employee’s Base Compensation, a cash benefit equal to an additional week of Base
Compensation for each full Year of Vesting Service completed by the Eligible Employee; provided, however, that such benefit shall not be payable if the Eligible Employee is not living on the last day of the period described herein; 
  

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 (iii) In the event that a Participating Company terminates the employment of an Eligible
Employee and does not give him or her one month’s advance notice, one month of the Eligible Employee’s Base Compensation in lieu of notice; 
  
 (iv) The Eligible Employee’s unused and accrued vacation pay, if any, determined as of the date when the Eligible Employee’s
employment is terminated under the terms of the Participating Company’s basic vacation policy as in effect when the applicable event specified in Section 4(a) occurs (which, in the case of termination of employment pursuant to Section 4(a)(iv),
shall be the date of the material change rather than the date the Eligible Employee resigns); 
  
 (v) Eligibility for an Award under the Company’s Management Performance Award Plan for the Award Year in which his or her employment
terminates, determined under all the terms and conditions of such plan; and 
  
 (vi) Continued coverage as an employee during a period of weeks equal to three (3) (four (4), in the case of an Eligible Employee eligible for the benefit described in (ii) above) times the number of full Years of
Vesting Service completed by the Eligible Employee, under the following employee benefit plans of the Company: 
  
 (A) Medical coverage in the amount, if any, that the Eligible Employee had in effect on the day preceding the date of his or her
termination of employment; 
  
 (B) Dental
coverage in the amount, if any, that the Eligible Employee had in effect on the day preceding the date of his or her termination of employment; 
  
 (C) Basic life insurance coverage in the amount, if any, that the Eligible Employee had in effect on the day preceding the date of his or
her termination of employment; and 
  

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 (D) Accidental death and dismemberment coverage (not including travel accident coverage)
in the amount, if any, that the Eligible Employee had in effect on the day preceding the date of his or her termination of employment, except that continuation of any employee-paid coverage shall be at the Eligible Employee’s expense at
standard group rates. 
  
 Notwithstanding any of the foregoing provisions of this
Section 3(a)(vi): 
  
 (I) Any such continued
coverage shall terminate when the Eligible Employee becomes covered by the life insurance, medical, dental or accidental death and dismemberment plan of another employer. 
  
 (II) In the event that after an Eligible Employee’s termination of employment with a Participating
Company he or she is otherwise entitled to continued coverage under the Company’s basic life insurance, medical, dental and accidental death and dismemberment plans pursuant to any employee benefit plan or program of the Company (other than
this Program), the total benefits paid for by the Participating Companies during the period described above shall not exceed the benefits to which the Eligible Employee is entitled under this Section 3(a)(vi). 
  
 (III) For purposes of this Section 3(a)(vi), the
Company’s basic life insurance plan shall not include any group universal life insurance or travel accident insurance coverage provided through or by the Company to or on behalf of its employees or any accidental death and dismemberment
insurance coverage provided by the Company to family members of its employees. 
  
 (IV) During the period of such continued coverage, the Eligible Employee shall not be eligible to participate in the Company’s
disability income plan or as an employee 

  

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in the Retirement Plan, the Salaried Employees’ Savings Plan, any qualified or nonqualified stock option or phantom stock plan of the Company or any
employee benefit plan or program now or hereafter maintained by the Company or a Participating Company other than those plans listed in the first sentence of this Section 3(a)(vi). 
  
 Notwithstanding the foregoing provisions of this subsection (a), the sum of the amounts payable under (i), (ii) and (iii) above shall be not
less than four (4) months of the Eligible Employee’s Base Compensation nor greater than one (1) year of the Eligible Employee’s Base Compensation and the period of continued coverage described in (vi) above shall be not less than four (4)
months nor more than one (1) year from the termination of the Eligible Employee’s employment. The Executive Compensation and Personnel Policies Committee of the Board of Directors of the Company may, in its discretion, increase the benefit
payable to any Eligible Employee without regard to the foregoing limitation. 
  
 (b) Change of Control Benefits. Upon the occurrence of any of the events specified in Section 4(b), an Eligible Employee shall receive (in lieu of any severance benefit payable under Section 3(a) or any other
severance benefit payable under any other plan or program now or hereafter maintained by a Participating Company) Change of Control Benefits under the Program as follows: 
  
 (i) Within ten (10) business days following the effective date an Eligible Employee terminates, a lump sum
cash benefit equal to the Eligible Employees’ annual Base Compensation plus his or her annual Base Compensation multiplied by his or her standard bonus percentage (as determined pursuant to the Management Performance Award Plan), determined as
of the date of the Change of Control or the effective date the 

  

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Eligible Employee terminates, whichever produces the larger amount, multiplied by the appropriate factor from the following table: 
  

			
	 Eligible Employee

	  	Pay Multiple
Factor

	 Chief Executive Officer
	  	3.0
		
	 Chief Operating Officer
	  	3.0
		
	 Other Eligible Employees
	  	2.5

  
 Notwithstanding the
foregoing, if the Eligible Employee’s employment terminates on or after the date thirty (30) months prior to the Eligible Employee’s “normal retirement date,” as determined under the Retirement Plan, the applicable factor shall
be a fraction, the numerator of which is the number of full months between the date the Eligible Employee’s employment terminates and such “normal retirement date” and the denominator of which is twelve (12). An Eligible Employee
described in the preceding sentence shall be entitled to an additional benefit equal to the difference between the benefit payable to the Eligible Employee, if any, under the Retirement Plan and the Retirement Plan Supplemental Benefit provisions of
the Salaried Employees’ Supplemental Benefit Plan (the “Supplemental Plan”), and such benefits that would have been payable, if any, under such Plans if the Eligible Employee had remained an Eligible Employee and continued to earn his
or her Base Compensation until such “normal retirement date;” provided, however, that the present value (calculated using the assumed discount rate applied in projecting the Company’s pension benefit obligations for financial
reporting purposes and the UP-84 mortality table) (the “Present Value”) of such additional benefit shall not exceed the difference between the lump sum benefit 

  

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determined under the preceding sentence and the lump sum benefit determined using the otherwise applicable factor from the table above. Such additional
benefit shall be paid at the same time and in the same form as any benefit payable to the Eligible Employee under the Supplemental Plan or, if no benefit is payable to the Eligible Employee under the Supplemental Plan, the Present Value of such
additional benefit shall be paid in a lump sum at the same time as the Eligible Employee’s Change of Control Benefits are paid. 
  
 (ii) In the event that a Participating Company terminates the employment of an Eligible Employee and does not give him or her one
month’s advance notice, one month of the Eligible Employee’s Base Compensation (determined as of the date of the Change of Control or the date the Eligible Employee’s employment terminates, whichever produces the larger amount) in
lieu of notice; 
  
 (iii) A lump sum cash benefit
equal to the Eligible Employee’s unused and accrued vacation pay, if any, under the terms of the Participating Company’s basic vacation policy. For this purpose, (I) an Eligible Employee’s Base Compensation and the terms of the basic
vacation policy shall be determined as of the date when the Eligible Employee’s employment is terminated or as of the date of the Change of Control, whichever produces the larger amount and (II) accrued vacation pay shall be paid
notwithstanding any minimum service requirement of the Participating Company’s basic vacation policy; 
  
 (iv) Eligibility for an Award under the Company’s Management Performance Award Plan for the Award Year in which his or her employment
terminates determined under all the terms and conditions of such Plan; 
  

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 (v) Continued coverage as an employee during the number of years equal to the applicable
factor determined under (b)(i) above, subject to all of the conditions and limitations described in Section 3(a)(vi)(I) through (IV) above (determined without regard to the last paragraph of Section 3 (a)) under the following employee benefit plans
of the Company; 
  
 (A) Medical coverage in the
amount, if any, that the Eligible Employee had in effect on the day preceding the date of his or her termination of employment; 
  
 (B) Dental coverage in the amount, if any, that the Eligible Employee had in effect on the day preceding the date of his or her
termination of employment; 
  
 (C) Basic life
insurance coverage in the amount, if any, that the Eligible Employee had in effect on the day preceding the date of his or her termination of employment; 
  
 (D) Accidental death and dismemberment coverage (not including travel accident coverage) in the amount, if any, that the Eligible Employee
had in effect on the day preceding the date of his or her termination of employment, except that continuation of any employee-paid coverage shall be at the Eligible Employee’s expense at standard group rates; and 
  
 (E) Temporary, long-term and permanent disability income
coverage in the amount, if any, that the Eligible Employee had in effect on the day preceding the date of his or her termination of employment; 
  
 (vi) In the case of an Eligible Employee who has less than five (5) Years of Vesting Service on the date his or her employment terminates,
a lump sum cash benefit equal to (A) the value of that portion of the Eligible Employee’s Company Stock Account 

  

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in the Salaried Employees’ Savings Plan attributable to Company Contributions under such Plan made on the Eligible Employee’s behalf in a Plan Year
which ended less than 24 months prior to the date the Eligible Employee’s employment with the Participating Companies terminates, plus (B) the unvested portion, if any, of the Eligible Employee’s Savings Plan Supplemental Benefit account
under the Supplemental Plan. The value of those portions of the Eligible Employee’s Company Stock Account and the Savings Plan Supplemental Benefit account referred to in the preceding sentence shall be determined as of the date the Eligible
Employee’s employment with the Participating Companies terminates; and 
  
 (vii) A lump sum cash benefit equal to the Present Value of the Eligible Employee’s Normal Retirement Benefit and Retirement Plan Supplemental Benefit determined under the Retirement Plan and the Supplemental
Plan, respectively, if the Eligible Employee was not entitled to a Vested Benefit under the Retirement Plan as of the date the Eligible Employee’s employment with the Participating Companies terminates. 
  
 (c) Payment of Excise Taxes. If any payment or benefit to or for the
benefit of the Eligible Employee in connection with a Change of Control is deemed an “excess parachute payment” as defined in Section 280G of the Internal Revenue Code of 1986 (the “Code”) subject to the excise tax imposed by
Section 4999 of the Code, the Company shall pay to the Eligible Employee an additional amount such that the total amount of all such payments and benefits (including payments made pursuant to this Section 3(c)) to the Eligible Employee shall equal
the total amount of all such payments and benefits to which the Eligible Employee would have been entitled (but for this Section 3(c)) net of all applicable federal, state and local 

  

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taxes except the excise tax. For purposes of this Section 3(c), the Eligible Employee shall be deemed to pay federal, state and local taxes at the highest
marginal rate of taxation for the applicable calendar year. The amount of the payment to the Eligible Employee shall be estimated by a third-party service provider selected by the Company as of the date of the event specified in Section 4(a) or, if
earlier, as of the date of the Change of Control as determined pursuant to Section 4(b). Within thirty (30) business days following the effective date an Eligible Employee terminates, the estimated amount due the Eligible Employee pursuant to this
Section 3(c) shall be paid to the Eligible Employee. In the event that the amount of the estimated payment is less than the amount actually due to the Eligible Employee under this Section 3(c), the amount of any such shortfall shall be paid to the
Eligible Employee within ten (10) business days after the existence of the shortfall is discovered. 
  
 The Eligible Employee shall not be required to mitigate the amount of any payments provided under Section 3(b) and 3(c), nor shall any payment or benefit
provided for in Section 3(b) and 3(c) be offset by any compensation earned by the Eligible Employee as the result of employment by another employer or by retirement benefits. 
  
 (d) Definition of “Base Compensation”. For purposes of the Program, “Base Compensation” shall
mean the Eligible Employee’s base rate of pay as in effect at the time the Eligible Employee’s employment is terminated, or, if greater, the rate in effect at the time the material change described in Section 4(a)(iv) occurs or the time a
Change of Control described in Section 4(b) occurs, if applicable. An Eligible Employee’s base rate of pay shall be determined without reduction for (i) any Deferred Contributions made by the Eligible Employee pursuant to the Potlatch
Corporation Salaried Employees’ Savings Plan or (ii) any contributions made by the Eligible Employee pursuant to the Potlatch Corporation Custom Benefits Plan. 
  

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 SECTION 4. CONDITIONS FOR PAYMENT OF SEVERANCE BENEFITS. 
  
 (a) Payment Of Basic Severance Benefits. Subject to the provisions of
Section 4(c), an Eligible Employee will be eligible for the benefits specified in Section 3(a) upon the occurrence of any of the following events (except that an Eligible Employee who has satisfied the conditions of Section 4(b) will be eligible for
the benefits specified in Section 3(b) rather than the benefits specified in Section 3(a)): 
  
 (i) Termination of the Eligible Employee’s employment by a Participating Company or by the Eligible Employee at the request of the
Participating Company for any reason other than misconduct, subject to the limitations of Section 4(c)(ii). As used herein “misconduct” means that the Eligible Employee has engaged in unfair competition with a Participating Company or a
subsidiary thereof, induced any customer of a Participating Company or subsidiary to breach any contract with a Participating Company or subsidiary, made any unauthorized disclosure of any of the secrets or confidential information of a
Participating Company or subsidiary, committed an act of embezzlement, fraud or theft with respect to the property of a Participating Company or subsidiary, or engaged in conduct which is not in good faith and which directly results in material
loss, damage or injury to the business, reputation or employees of a Participating Company or subsidiary; or 
  
 (ii) Termination of the Eligible Employee’s employer’s status as a Participating Company due to the sale to a third party or a
spin-off of a designated subsidiary, subject to the limitations of Section 4(c)(ii); or 
  
 (iii) The Participating Company requires the Eligible Employee to relocate his or her principal place of work and the new principal place
of work is fifty (50) or more 

  

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miles further from the Eligible Employee’s primary residence than was his or her former principal place of work, and the Eligible Employee elects to
resign rather than to relocate or 
  
 (iv) The
Eligible Employee resigns from employment with a Participating Company within twenty-four (24) months following (A) a significant diminution of the Eligible Employee’s assigned job, as reflected in the Participating Company’s official
position description, duties, responsibilities or privileges or (B) a any reduction in the Eligible Employee’s base salary, standard bonus opportunity or long term incentive opportunity or a fifteen percent or greater reduction in the Eligible
Employee’s aggregate benefits or perquisites as compared to those of all other employees similarly situated, unless in each case the reduction is applicable to all salaried employees or all other employees similarly situated; provided, however,
that this Section 4(a)(iv) shall apply to the resignation of an Eligible Employee only if the Eligible Employee or the Participating Company has notified the other party in writing within three (3) months following the occurrence of any such change
that the party giving notice considers such change to be a material change encompassed by this Section 4(a)(iv). If the party receiving such notice does not agree that the change in question is a material change encompassed by this Section 4(a)(iv),
it shall give written notice thereof to the party first giving notice hereunder within thirty (30) days after receiving notice and the matter shall be immediately referred to the Review Panel as provided in Section 9; provided, however, that, within
thirty (30) days after receiving written notice that the other party does not agree that the change in question is covered by this Section 4(a)(iv), the Eligible Employee may request that the matter be submitted directly to arbitration as provided
in 

  

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Section 10. If necessary, the twenty-four (24) month period specified above shall be extended to a date not later than thirty (30) days following (i) the
announcement of the decision of the Review Panel or, if the matter is referred to arbitration within thirty (30) days following the announcement of the Review Panel’s decision, the announcement of the award of the arbitrator, or (ii) if the
matter is referred directly to arbitration, the announcement of the award of the arbitrator. The Participating Company or the Eligible Employee may each give the notice described in this Section 4(a)(iv) only once while this Program is in effect. If
one party has given notice and the twenty-four (24) month period specified above has commenced running, the other party may not give notice hereunder with respect to a change occurring during such twenty-four (24) month period. If an Eligible
Employee gives notice pursuant to this Section 4(a)(iv) and the Company thereafter in good faith makes an adjustment in the Eligible Employee’s compensation, benefits, assigned job or duties, responsibilities, privileges or perquisites, the
Eligible Employee and the Company may mutually agree in writing that the notice shall be null and void. 
  
 Notwithstanding the foregoing, no benefits shall be available under the Program (i) if the Eligible Employee’s employment with a Participating Company terminates because he or she is eligible for or receiving
long-term or permanent disability benefits under the Company’s disability income plan as in effect on the date of onset of disability or (ii) if the Eligible Employee satisfies all of the following conditions: 
  
 (I) His or her employment with a Participating Company
terminates on or after his or her “normal retirement date,” as determined under the Retirement Plan; 
  

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 (II) For the two-year period immediately before retirement, he or she qualified as an
Eligible Employee; and 
  
 (III) He or she is
entitled to benefits under the Retirement Plan, Salaried Employees’ Savings Plan and Supplemental Plan which, when converted to a straight life annuity (and excluding any portion of the benefit under the Salaried Employees’ Savings Plan
which represents contributions by the Eligible Employee), equals, in the aggregate, at least $44,000. 
  
 (b) Payment Of Change Of Control Benefits. An Eligible Employee will be eligible for the benefits specified in Section 3(b) if, within three (3)
years following a Change of Control, the Eligible Employee’s employment terminates under the conditions described in Section 4(a)(i), (ii) or (iii) or a material change described in Section 4(a)(iv) occurs and the Eligible Employee thereafter
resigns under the conditions described in Section 4(a)(iv); provided, that the Eligible Employee was employed by a Participating Company on the date preceding the Change of Control. For purposes of the Program, “Change of Control” shall
mean: 
  
 (i) Upon consummation of a
reorganization, merger or consolidation involving the Corporation (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the then outstanding shares of Common Stock (the “Outstanding Common Stock”) and the then outstanding voting securities of the Corporation entitled to vote generally in the election of directors (the
“Outstanding Voting Securities”) immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then
outstanding voting securities 

  

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entitled to vote generally in the election of directors of the corporation resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Corporation either directly or through one or more subsidiaries), (B) no Person (as defined in Section 4(b)(iii) below) (excluding any corporation resulting from such Business Combination or
any employee benefit plan (or related trust) sponsored or maintained by the Corporation or such other corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding
shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership is based on the beneficial
ownership, directly or indirectly, of Outstanding Common Stock or Outstanding Voting Securities immediately prior to the Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from such
Business Combination were members of the Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
  
 (ii) On the date that individuals who, as of December 2, 1999 constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to December 2, 1999 whose election, or nomination for election by the Corporation’s
stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual

  

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whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors, an
actual or threatened solicitation of proxies or consents or any other actual or threatened action by, or on behalf of any Person other than the Board; or 
  
 (iii) Upon the acquisition after December 2, 1999 by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (A) the then Outstanding
Common Stock or (B) the combined voting power of the Outstanding Voting Securities; provided, however, that the following acquisitions shall not be deemed to be covered by this Section 4(b)(iii): (x) any acquisition of Outstanding Common Stock or
Outstanding Voting Securities by the Corporation, (y) any acquisition of Outstanding Common Stock or Outstanding Voting Securities by any employee benefit plan (or related trust) sponsored or maintained by the Corporation or (z) any acquisition of
Outstanding Common Stock or Outstanding Voting Securities by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of Section 3(b)(i); or 
  
 (iv) Upon the consummation of the sale of all or substantially all of the assets of the Corporation or
approval by the stockholders of the Corporation of a complete liquidation or dissolution of the Corporation. 
  

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 (c) Limitations On Eligibility For Benefits. 
  
 (i) If an Eligible Employee is assigned from one to another
Participating Company, his or her employment shall not be considered to be terminated under the provisions of the Program. 
  
 (ii) The provisions of Section 4(a)(i) and 4(a)(ii) to the contrary notwithstanding, no benefit will be payable hereunder due to
termination of an Eligible Employee’s employment because of the sale to a third party or spin-off of a division (or other operating assets) of a Participating Company or to termination of the Eligible Employee’s employer’s status as a
Participating Company upon the sale to a third party or spin-off of a designated subsidiary, if (A) (I) the Eligible Employee is employed by the purchaser of such division, assets, or subsidiary or such other spun-off entity or (II) such purchaser
or spun-off entity is contractually obligated to offer the Eligible Employee the same or a better job and (B) such purchaser of spun-off entity is contractually obligated to maintain a plan which in all material respects is equivalent to the
Program, providing for continuing coverage of the Eligible Employee for three (3) years following the sale or spin-off of such division, assets or subsidiary. 
  

SECTION 5. FORM OF BENEFIT. 
  
 The benefits described in Sections 3(a)(i), (ii) and (iii) shall be paid in a lump sum or in monthly installments over a period not to exceed twelve (12)
months from the date employment is terminated pursuant to Section 4, as determined by the Company. The benefit described in Section 3(a)(iv) shall be paid in a lump sum. The benefits described in Sections 3(b)(i), (ii), (iii), (vi) and (vii) shall
be paid in a lump sum. 
  

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 SECTION 6. EFFECT OF DEATH OF EMPLOYEE. 
  
 Should an Eligible Employee die after employment terminates but while participating in the Program and prior to the payment
of the entire benefit due hereunder, the balance of the benefit payable under the Program (other than any benefit described in Section 3(a)(ii) if the Eligible Employee was not living on the last day of the period described therein or the proceeds
of any life insurance or accidental death insurance, which shall be paid to the beneficiary determined pursuant to the terms of the applicable insurance policy) shall be paid in a lump sum to the estate of the Eligible Employee. Continued medical
and dental coverage as provided in Section 3(a)(vi) and Section 3(b)(v), as applicable, shall be available to the Eligible Employee’s surviving spouse only if and to the extent that such coverage would have been available to such surviving
spouse if the Eligible Employee had died as an active salaried employee of a Participating Company. Such coverage shall be determined under the terms of the applicable plan as in effect on the earlier of (i) the date the Eligible Employee’s
employment terminated or (ii) the date of the Change of Control or the material change described in Section 4(a)(iv), if applicable. 
  
 SECTION 7. AMENDMENT AND TERMINATION. 
  
 The Board of Directors of the Company reserves the right to amend or terminate the Program at any time and to increase or decrease the amount of any
benefit provided under the Program; provided, however, that any individual who has qualified as an Eligible Employee may become entitled to any Change of Control Benefit under Section 3(b), the Program cannot be terminated or amended to reduce any
benefit provided under Section 3(b) or make any condition pertaining to qualification for the Change of Control Benefit under Section 3(b) materially more restrictive. Once an individual has qualified as an Eligible Employee, the Program may not be

  

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amended to cause such individual to cease to qualify as an Eligible Employee for purposes of determining that individual’s eligibility for the Change of
Control Benefit under Section 3(b). Notwithstanding any other provision of the Program, following a Change of Control this Section 7 may not be amended for a period of three (3) years. 
  
 SECTION 8. CLAIMS PROCEDURE. 
  
 (a) Claims. All applications for benefits and all inquiries concerning claims under the program shall be submitted to the Company addressed as
follows: “Potlatch Corporation, Plan Administrator under the Potlatch Corporation Severance Program for Executive Employees, 601 West Riverside Avenue, Suite 1100, Spokane, Washington 99201.” 
  
 (b) Denial Of Claims. In the event that any application for benefits
under the Program is denied in whole or in part, the Company shall notify the applicant in writing of such denial and shall advise the applicant of the right to a review thereof. Such written notice shall set forth, in a manner calculated to be
understood by the applicant, specific reasons for such denial, specific references to the provisions of the Program on which such denial is based, a description of any information or material necessary for the applicant to perfect his or her
application, an explanation of why such material is necessary and an explanation of the Program’s review procedure and the time limits applicable to such procedures, including a statement of the applicant’s right to bring a civil action
under section 502(a) of ERISA following a denial on review of the claim, as described in Section 9. Such written notice shall be given to the applicant within ninety (90) days after the Company receives the application, unless special circumstances
require an extension of time up to an additional ninety (90) days for processing the application. If such an extension of time for processing is required, written notice of the extension shall be furnished to the applicant prior to the termination
of the initial ninety (90) day period. This 

  

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notice of extension shall indicate the special circumstances requiring the extension of time and the date by which the Company expects to render its decision
on the application for benefits. 
  
 SECTION 9. REVIEW PROCEDURE.

  
 (a) Appointment Of Review Panel. The Company shall
appoint a Review Panel which shall consist of three (3) or more individuals who may (but need not) be employees of the Company; provided, however, that at all times following a Change of Control the Review Panel shall consist of at least three
current (as of the effective date of the Change of Control) or former Company officers and directors. The Review Panel shall be the named fiduciary which shall have authority to act with respect to appeals from denials of benefits under the Program.

  
 (b) Right To Appeal. Any person whose application for
benefits is denied (or is deemed denied) in whole or in part (or such person’s authorized representative) may appeal from the denial by submitting to the Review Panel a written request for review of the application within sixty (60) days after
receiving written notice from the Company of the denial. The Company shall give the applicant (or the applicant’s representative) an opportunity to review pertinent documents in preparing such request for review. 
  
 (c) Form Of Request For Review. The request for review must be in
writing and shall be addressed as follows: “Review Panel under the Potlatch Corporation Severance Program for Executive Employees, 601 West Riverside Avenue, Suite 1100, Spokane, Washington 99201.” The request for review shall set forth
all of the grounds upon which it is based, all facts in support thereof, and any other matters which the applicant deems pertinent. The Review Panel may require the applicant to submit such additional facts, documents or other material as the Review
Panel may deem necessary or appropriate in making its review. 
  

 20 

 (d) Time For Review Panel Action. The Review Panel shall act upon each request for review within
sixty (60) days after receipt thereof unless special circumstances require an extension of time of up to an additional sixty (60) days for processing the request for review. If such an extension of time for review is required, written notice of the
extension shall be furnished to the applicant prior to the end of the initial sixty (60) day period. 
  
 (e) Review Panel Decision. Within the time prescribed in Section 9(d), the Review Panel shall give written notice of its decision to the applicant
and to the Company. In the event the Review Panel confirms the denial of the application for benefits in whole or in part, such notice shall set forth, in a manner calculated to be understood by the applicant, the specific reasons for such denial,
specific references to the provisions of the Program on which the decision was based, a statement that the applicant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other
information relevant to his or her claim, and a statement of the applicant’s right to bring a civil action under section 502(a) of ERISA. In the event that the Review Panel determines that the application for benefits should not have been
denied in whole or in part, the Company shall take appropriate remedial action as soon as reasonably practicable after receiving notice of the Review Panel’s decision. 
  
 (f) Section 4(a)(iv) Dispute. In the event that a dispute involving the application or interpretation of Section
4(a)(iv) is referred to the Review Panel as provided therein, the Review Panel shall treat such dispute as an appeal from the denial of a claim for benefits under this Program that is subject to all of the terms and conditions of this Section 9.

  
 (g) Rules And Procedures. The Review Panel shall
establish such rules and procedures, consistent with the Program and with ERISA, as it may deem necessary or 

  

 21 

 
appropriate in carrying out its responsibilities under this Section 9. The Review Panel may require an applicant who wishes to submit additional information
in connection with an appeal from the denial of benefits in whole or in part to do so at the applicant’s own expense. 
  
 (h) Exhaustion of Remedies. No legal action for benefits under the Program may be brought until the claimant (i) has submitted a written
application for benefits in accordance with the procedures described in Section 8, (ii) has been notified by the Company that the application is denied, (iii) has filed a written request for review of the application in accordance with the appeal
procedures described in Section 9, and (iv) has been notified that the Review Panel has denied the appeal. Notwithstanding the foregoing, if the Company or the Review Panel does not respond to an Eligible Employee’s claim or appeal within the
relevant time limits specified in Sections 8 and 9, the Eligible Employee may bring legal action for benefits under the Program pursuant to section 502(a) of ERISA. 
  
 SECTION 10. RESOLUTION OF DISPUTES INVOLVING SECTION 4. 
  
 (a) Arbitration Of Section 4 Dispute. Any dispute, controversy or question arising under Section 4 which is not
resolved by the decision of the Review Panel (or which the Eligible Employee requests be submitted directly to arbitration as provided herein) shall be referred for decision by an arbitrator selected by the parties. The proceeding shall be governed
by the Rules of the American Arbitration Association then in effect or such rules last in effect (in the event such Association is no longer in existence). If the parties are unable to agree upon such an Arbitrator within thirty (30) days after
either party has given the other party written notice of its desire to submit the dispute, controversy or question for decision as aforesaid, then either party may apply to the American Arbitration Association for the appointment of an arbitrator
or, if such Association is not then in existence or does not desire to act in the matter, either party 

  

 22 

 
may apply to the Presiding Judge of the Superior Court of the City and County of Spokane, State of Washington, for the appointment of an arbitrator to hear
the parties and settle the dispute, controversy or question, and such Judge is authorized to make such appointment pursuant to the Program. The arbitration shall take place at the location mutually agreed to by the parties or, if the parties are
unable to agree upon the location, at the location designated by the Arbitrator. The compensation and expenses of the Arbitrator shall be borne by the Company, unless the Arbitrator determines that an Eligible Employee acted willfully and
maliciously in connection with his or her claim for benefits under the Program, in which case the Arbitrator shall direct the Eligible Employee to pay all or a portion of the compensation and expenses of the Arbitrator. 
  
 (b) Arbitration Exclusive Remedy. Arbitration shall be the exclusive
remedy for the settlement of disputes involving the application or interpretation of Section 4. The decision of the Arbitrator shall be final, conclusive and binding on all interested persons and no action at law or in equity involving the
application or interpretation of Section 4 shall be instituted other than to enforce the award of the Arbitrator. 
  
 SECTION 11. BASIS OF PAYMENTS TO AND FROM PROGRAM. 
  
 All benefits under the Program shall be paid by the Company. The Program shall be unfunded and benefits hereunder shall be paid only from the general
assets of the Company. Nothing contained in the Program shall be deemed to create a trust of any kind for the benefit of Eligible Employees, or create any fiduciary relationship between the Company and the Eligible Employees with respect to any
assets of the Company. The Company is under no obligation to fund the benefits provided herein prior to payment, although it may do so if it chooses. Any assets which the Company chooses to use for advance funding shall not cause the Program to be a
funded plan within the meaning of ERISA. 
  

 23 

 SECTION 12. NO EMPLOYMENT RIGHTS. 
  
 Nothing in the Program shall be deemed to give any individual the right to remain in the employ of a Participating Company
or a subsidiary or to limit in any way the right of a Participating Company or a subsidiary to terminate an individual’s employment, which right is hereby reserved. 
  
 SECTION 13. NON-ALIENATION OF BENEFITS. 
  
 No benefit payable under the Program shall be subject to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge, and any attempt to do so shall be void. 
  
 SECTION
14. SUCCESSORS AND ASSIGNS. 
  
 The Program shall be
binding on the Company, its successors and assigns, and any parent corporation of the Company’s successors or assigns. Notwithstanding that the Program may be binding upon a successor or assign by operation of law, the Company shall require any
successor or assign to expressly assume and agree to be bound by the Program in the same manner and to the same extent that the Company would be if no succession or assignment had taken place. 
  
 SECTION 15. NOTICES. 
  
 All notices pertaining to the Program shall be in writing and shall be
deemed given if delivered by hand or mailed with postage prepaid and addressed, in the case of the Company to the address set forth in Section 8(a), attention of its Secretary, and the case of the Eligible Employee to his or her last known address
as reflected in the records of the Company. 
  

 24Potlatch Corporation 2000 Stock Incentive Plan

 Exhibit (10)(c) 
  
 POTLATCH CORPORATION 
  
 2000 STOCK INCENTIVE PLAN 
  
 As Amended through May 24, 2005 
  

	1.	PURPOSE. 

  
 This Potlatch Corporation 2000 Stock Incentive Plan is intended to provide incentive to employees and directors of Potlatch Corporation (the
“Corporation”) and its eligible subsidiaries, to encourage proprietary interest in the Corporation and to encourage employees and directors to remain in the service of the Corporation or its subsidiaries. 
  

	2.	DEFINITIONS. 

  
 (a) “Award” means any award of an Option, Restricted Stock or an Other Share-Based Award under the Plan. 
  
 (b) “Board” means the Board of Directors of the Corporation.

  
 (c) “Code” means the Internal Revenue Code of
1986, as amended. 
  
 (d) “Committee” means the
Committee appointed by the Board in accordance with Section 4. 
  
 (e) “Common Stock” means the $1 par value common stock of the Corporation. 
  
 (f) “Corporation” means Potlatch Corporation, a Delaware corporation. 
  
 (g) “Director” means a director of the Corporation. 
  
 (h) “Disability” means the condition of an Employee who is
unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of at least 12
months. 
  

 1 

 (i) “Employee” means an individual (who may be an officer or a Director) employed by the
Corporation or a Subsidiary (within the meaning of the Code section 3401 and the regulations thereunder). 
  
 (j) “Exercise Price” means the price per Share of Common Stock at which an option may be exercised. 
  
 (k) “Fair Market Value” of a Share as of a specified date
means the closing price at which Shares are traded at the close of business on such date as reported in the New York Stock Exchange composite transactions published in the Western Edition of the Wall Street Journal, or if no trading of Shares is
reported for that day, on the next preceding day on which trading was reported. 
  
 (l) “Incentive Stock Option” means an Option described in Code section 422(b). 
  
 (m) “Misconduct” means that a Participant has engaged in unfair competition with the Corporation or a Subsidiary, induced any customer of
the Corporation or a Subsidiary to breach any contract with the Corporation or a Subsidiary, made any unauthorized disclosure of any of the secrets or confidential information of the Corporation or a Subsidiary, committed an act of embezzlement,
fraud or theft with respect to the property of the Corporation or a Subsidiary, or engaged in conduct which is not in good faith and which directly results in material loss, damage or injury to the business, reputation or employees of the
Corporation or a Subsidiary. 
  
 (n) “Nonqualified Stock
Option” means an Option not described in Code section 422(b) or 423(b). 
  
 (o) “Option” means a stock option granted pursuant to Section 7 or Section 10. “Option Agreement” means the agreement between the Corporation and the Participant which contains the terms and
conditions pertaining to such Option. 
  
 (p) “Other
Share-Based Award” means an Award granted pursuant to Section 9. “Other Share-Based Award Agreement” means the agreement between the Corporation and the recipient of an Other Share-Based Award which contains the terms and
conditions pertaining to the Other Share-Based Award. 
  

 2 

 (q) “Outside Director” means a Director who is not an Employee. 
  
 (r) “Participant” means an Employee who has received an
Award or an Outside Director who has received an Option. 
  
 (s)
“Plan” means this Potlatch Corporation 2000 Stock Incentive Plan. 
  
 (t) “Purchase Price” means the Exercise Price times the number of whole Shares with respect to which an Option is exercised. 
  
 (u) “Restricted Stock” means Shares granted pursuant to Section 8. “Restricted Stock
Agreement” means the agreement between the Corporation and the recipient of Restricted Stock which contains the terms, conditions and restrictions pertaining to the Restricted Stock. 
  
 (v) “Share” means one share of Common Stock, adjusted in
accordance with Section 13 (if applicable). 
  
 (w) “Stock
Right” means a bookkeeping entry representing a right to the equivalent of one Share. 
  
 (x) “Subsidiary” means any corporation in an unbroken chain of corporations beginning with the Corporation if each of the corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  

	3.	EFFECTIVE DATE. 

  
 This Plan was adopted by the Board on December 2, 1999, to be effective immediately, subject to approval by the Corporation’s stockholders.

  

	4.	ADMINISTRATION. 

  
 The Plan shall be administered by a committee (the “Committee”) appointed by the Board, consisting of not less than two disinterested members.
The term “disinterested members” as applied to Directors shall include only Directors who are not active Employees of the Corporation or of any of its Subsidiaries, who are not eligible to receive discretionary Awards 

  

 3 

 
under Sections 7, 8 and 9 of this Plan or under any other stock incentive plan of the Corporation and who have not received such discretionary Awards for at
least one year preceding appointment as a member of the Committee. The Board may from time to time remove members from, or add members to, the Committee. Vacancies on the Committee shall be filled by the Board. The Board shall appoint one of the
members of the Committee as Chairman. 
  
 If any member of the
Committee does not qualify as an “outside director” for purposes of section 162(m) of the Code, Awards under the Plan for the chief executive officer and the four most highly compensated officers of the Corporation (other than the chief
executive officer) shall be administered by a subcommittee consisting of each Committee member who qualifies as an “outside director.” If fewer than two Committee members qualify as “outside directors,” the Board shall appoint
one or more other members to such subcommittee who do qualify as “outside directors” so that it will at all times consist of at least two members who qualify as “outside directors” for purposes of section 162(m) of the Code.

  
 The Committee shall hold meetings at such times and places as
it may determine. Acts of a majority of the Committee at which a quorum is present, or acts reduced to or approved in writing by a majority of the Committee, shall be the valid acts of the Committee. The Committee shall from time to time at its
discretion make determinations with respect to Employees who shall be granted Awards, the number of Shares or Share equivalents to be subject to each Award, the vesting of Awards, the designation of Options as Incentive Stock Options or Nonqualified
Stock Options and other conditions of Awards to Employees. 
  
 The
interpretation and construction by the Committee of any provisions of the Plan or of any Award shall be final. No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award.

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

 4 

	5.	ELIGIBILITY. 

  
 Participants shall be such key Employees (who may be officers, whether or not they are Directors) of the Corporation or of its Subsidiaries as the
Committee shall select, but subject to the terms and conditions set forth below. In addition, all Outside Directors shall be Participants solely for purposes of the nondiscretionary Awards described in Section 10. 
  

	 	(a)	Ten Percent Stockholders. 

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

	 	(b)	Number of Awards. 

  
 A Participant may receive more than one Award, including Awards of the same type, but only on the terms and subject to the restrictions set forth in the
Plan. The maximum aggregate number of Shares or Share equivalents that may be subject to Awards to a Participant in any calendar year is 100,000 shares. 
  

	6.	STOCK. 

  
 The stock subject to Options, Restricted Stock, or Other Share-Based Awards granted under the Plan shall be Shares of the Corporation’s authorized
but unissued or reacquired Common Stock. The aggregate number of Options, Restricted Stock or Other Share-Based Awards issued under this Plan shall not exceed 1,400,000 Shares. In the event that any outstanding Option under the Plan for any reason
expires or is terminated or any Restricted Stock or Other Share-Based Award is forfeited, the Shares allocable to the unexercised portion of such Option or the forfeited Restricted Stock or Other Share-Based Award may again be subjected to Options,
Restricted Stock or Other Share-Based Awards under the Plan, provided that under the terms of the Award the Participant received no benefits of ownership during the period the Award was outstanding. However, if one Award is granted in tandem with
another, so that the 

  

 5 

 
exercise of one causes the other to expire, then the number of Shares subject to the expired Award shall not be restored to the pool available for Awards.

  
 The limitations established by this Section 6 shall be subject
to adjustment as provided in Section 13. 
  

	7.	TERMS AND CONDITIONS OF EMPLOYEE OPTIONS. 

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

	 	(a)	Number of Shares. 

  
 Each Option shall state the number of Shares to which it pertains and shall provide for the adjustment of such number in accordance with Section 13.

  

	 	(b)	Exercise Price. 

  
 Each Option shall state the Exercise Price, determined by the Committee, which shall not be less than the Fair Market Value of a Share on the date of
grant. 
  

	 	(c)	Medium and Time of Payment. 

  
 The Purchase Price shall be payable in full in United States dollars upon the exercise of the Option; provided that with the consent of the Committee and
in accordance with its rules and regulations, the Purchase Price may be paid by the surrender of Shares in good form for transfer, owned by the person exercising the Option and having a Fair Market Value on the date of exercise equal to the Purchase
Price, or in any combination of cash and Shares, so long as the total of the cash and the Fair Market Value of the Shares surrendered equals the Purchase Price. No Share shall be issued until full payment has been made. 
  

	 	(d)	Term and Exercise of Options; Nontransferabilitv of Options. 

  
 Each Option shall state the time or times when it becomes exercisable. No Option shall be exercisable after the expiration of 10 years from the date it is
granted. During the lifetime of 

  

 6 

 
the Participant, the Option shall be exercisable only by the Participant and shall not be assignable or transferable. In the event of the Participant’s
death, no Option shall be transferable by the Participant other than by will or the laws of descent and distribution. 
  
 Subject to the foregoing, beginning six months after the date of grant the Participant shall have the right to exercise the Option (or to call the related
stock appreciation right as described in Section 7 (i)) in whole or in part: 
  
 (i) Upon consummation of a reorganization, merger or consolidation involving the Corporation (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially
all of the individuals and entities who were the beneficial owners, respectively, of the then outstanding shares of Common Stock (the “Outstanding Common Stock”) and then outstanding voting securities of the Corporation entitled to vote
generally in the election of Directors (the “Outstanding Voting Securities”) immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the corporation resulting from such Business Combination (including, without limitation, a corporation which as
a result of such transaction owns the Corporation either directly or through one or more subsidiaries), (B) no Person (as defined in subparagraph (iii) below) (excluding any corporation resulting from such Business Combination or any employee
benefit plan (or related trust) sponsored or maintained by the Corporation or such other corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of
common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership is based on the beneficial ownership,
directly or indirectly, of Outstanding Common Stock or Outstanding Voting Securities immediately prior to the Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business
Combination were members of the Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such 

  

 7 

 
Business Combination; provided, however, if the Corporation and the other party to the Business Combination agree that the transaction is to be treated as a
pooling of interests for financial reporting purposes, and if the transaction in fact is so treated, then the right to exercise the Option (or to call the related stock appreciation right) shall not be accelerated upon consummation of the Business
Combination to the extent that the Corporation’s independent accountants and the other party’s independent accountants separately determine in good faith that the acceleration would preclude the use of pooling of interests accounting; or

  
 (ii) On the date that individuals who, as of
December 2, 1999 constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming Director subsequent to December 2, 1999 whose election, or
nomination for election by the Corporation’s stockholders, was approved by a vote of at least a majority of the Directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of Directors, an actual or threatened solicitation of
proxies or consents or any other actual or threatened action by, or on behalf of any Person other than the Board or 
  
 (iii) Upon the acquisition after December 2, 1999 by any individual, entity or group (within the meaning of Section 13(d) (3) or 14(d) (2)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (A) the then Outstanding
Common Stock or (B) the combined voting power of the Outstanding Voting Securities; provided, however, that the following acquisitions shall not be deemed to be covered by this subsection (iii): (x) any acquisition of Outstanding Common Stock or
Outstanding Voting Securities by the Corporation, (y) any acquisition of Outstanding Common Stock or Outstanding Voting Securities by any employee benefit plan (or related trust) sponsored or maintained by the Corporation or (z) any acquisition of
Outstanding Common Stock or Outstanding Voting Securities by any 

  

 8 

 
corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (i) of this Section 7(d); or 
  
 (iv) Upon the consummation of the sale of all or
substantially all of the assets of the Corporation or approval by the stockholders of the Corporation of a complete liquidation or dissolution of the Corporation. 
  

	 	(e)	Termination of Employment Except Death. 

  
 In the event that a Participant who is an Employee ceases to be employed by the Corporation or its Subsidiaries for any reason other than death, such
Participant shall have the right (subject to the limitations of Section 7(d) above) to exercise the Option either: 
  
 (i) within three months after such termination of employment; or 
  
 (ii) (in the case of Early, Normal or Late Retirement under the Salaried Employees’ Retirement Plan, or
Disability), at any time before the end of the option period specified in the Option Agreement, to the extent that, at the date of termination of employment, the Option had vested pursuant to the terms of the Option Agreement with respect to which
such Option was granted and had not previously been exercised. However, if the employment of a Participant is terminated by the Corporation or a Subsidiary by reason of Misconduct, such Option shall cease to be exercisable at the time of the
Participant’s termination of employment. The Committee shall determine whether a Participant’s employment is terminated by reason of Misconduct. In making such determination the Committee shall act fairly and shall give the Participant an
opportunity to be heard and present evidence on his or her behalf. If a Participant’s employment terminates for reasons other than Misconduct, but Misconduct is discovered after the termination and is determined to have occurred by the
Committee, all outstanding Options shall cease to be exercisable upon such determination. 
  
 For purposes of the section, the employment relationship will be treated as continuing while the Participant is on military leave, sick leave or other bona fide leave of absence (to be determined in the sole
discretion of the Committee, in accordance with rules and regulations construing Code section 422(a)(2)). Notwithstanding the foregoing, in the case of an Incentive 

  

 9 

 
Stock Option, employment shall not be deemed to continue beyond the 90th day after the Participant ceased active employment, unless the Participant’s
reemployment rights are guaranteed by statute or by contract. 
  

	 	(f)	Death of Participant. 

  
 If a Participant who is an Employee dies while in the employ of the Corporation or a Subsidiary, the Option may be exercised at any time before the end of
the option period as specified in the Option Agreement by the executors or administrators of the Participant’s estate or by any person or persons who acquired the Option directly from the Participant by bequest or inheritance, to the extent
that, at the date of the Participant’s death, the Option had vested pursuant to the terms of the Option Agreement and had not previously been exercised. 
  

	 	(g)	Rights as a Stockholder. 

  
 A Participant or a transferee of a Participant shall have no rights as a stockholder with respect to any Shares covered by his or her Option until the
date of issuance of a stock certificate for such Shares. No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as provided in Section 13.

  

	 	(h)	Modification, Extension and Renewal of Options. 

  
 Subject to the terms and conditions and within the limitations of the Plan, the Committee may modify, extend or renew outstanding Options granted to
Employees under the Plan, or accept the exchange of outstanding Options (to the extent not previously exercised) for the granting of new Options (at the same or a different price). Notwithstanding the foregoing, however, no modification of an Option
shall, without the consent of the Participant, alter or impair any rights or obligations under any Option previously granted under the Plan. 
  

	 	(i)	Stock Appreciation Rights. 

  
 Each Option granted under the Plan shall include a stock appreciation right that may be exercised only following the applicable event described in Section
7(d)(i) through (iv). Following any such event, the Participant shall have the right to surrender all or part of the 

  

 10 

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

	 	(j)	Limitation of Incentive Stock Option Awards. 

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

 11 

	 	(k)	Other Provisions. 

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

	8.	RESTRICTED STOCK. 

  

	 	(a)	Grants. 

  
 Subject to the provisions of the Plan, the Committee shall have sole and complete authority to determine the Employees to whom, and the time or times at
which, grants of Restricted Stock will be made, the number of shares of Restricted Stock to be awarded, the price (if any) to be paid by the recipient of Restricted Stock, the time or times within which such Awards may be subject to forfeiture, and
all other terms and conditions of the Awards. The Committee may condition the grant of Restricted Stock upon the attainment of specified performance goals or such other factors as the Committee may determine, in its sole discretion. 
  
 The terms of each Restricted Stock Award shall be set forth in a Restricted
Stock Agreement between the Corporation and the Employee, which Agreement shall contain such provisions as the Committee determines to be necessary or appropriate to carry out the intent of the Plan. Each Participant receiving a Restricted Stock
Award shall be issued a stock certificate in respect of such shares of Restricted Stock. Such certificate shall be registered in the name of such Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Award. The Committee shall require that stock certificates evidencing such shares be held by the Corporation until the restrictions lapse and that, as a condition of any Restricted Stock Award, the Participant shall deliver to the
Corporation a stock power relating to the stock covered by such Award. 
  

 12 

	 	(b)	Restrictions and Conditions. 

  
 The shares of Restricted Stock awarded pursuant to this Section 8 shall be subject to the following restrictions and conditions: 
  
 (i) During a period set by the Committee commencing with the
date of such Award (the “Restriction Period”), the Participant shall not be permitted to sell, transfer, pledge, assign or encumber shares of Restricted Stock awarded under the Plan. Within these limits, the Committee, in its sole
discretion, may provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions in whole or in part, based on service, performance, a change of control of the Corporation or such other factors or criteria as
the Committee may determine in its sole discretion. 
  
 (ii) Except as provided in this paragraph (ii) and paragraph (i) above, the Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a stockholder of the Corporation, including the right to vote the
shares and the right to receive any cash dividends. The Committee, in its sole discretion, as determined at the time of Award, may provide that the payment of cash dividends shall or may be deferred and, if the Committee so determines, reinvested in
additional Shares of Restricted Stock to the extent available under Section 6, or otherwise reinvested. Stock dividends issued with respect to Restricted Stock shall be treated as additional shares of Restricted Stock that are subject to the same
restrictions and other terms and conditions that apply to the shares with respect to which such dividends are issued. 
  
 (iii) The Committee shall specify the conditions under which shares of Restricted Stock shall vest or be forfeited and such conditions
shall be set forth in the Restricted Stock Agreement. 
  
 (iv) If and when the Restriction Period applicable to shares of Restricted Stock expires without a prior forfeiture of the Restricted Stock, certificates for an appropriate number of unrestricted Shares shall be delivered promptly to the
Participant, and the certificates for the shares of Restricted Stock shall be canceled. 
  

	9.	OTHER SHARE-BASED AWARDS. 

  

	 	(a)	Grants. 

  
 Other Awards of Shares and other Awards that are valued in whole or in part by reference to, or are otherwise based on, Shares (“Other Share-Based
Awards”), may be granted either 

  

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alone or in addition to or in conjunction with other Awards under this Plan. Awards under this Section 9 may include (without limitation) Stock Rights, the
grant of Shares conditioned upon some specified event, the payment of cash based upon the performance of the Shares or the grant of securities convertible into Shares. 
  
 Subject to the provisions of the Plan, the Committee shall have sole and complete authority to determine the Employees to
whom and the time or times at which Other Share-Based Awards shall be made, the number of Shares or other securities, if any, to be granted pursuant to Other Share-Based Awards, and all other conditions of the Other Share-Based Awards. The Committee
may condition the grant of an Other Share-Based Award upon the attainment of specified performance goals or such other factors as the Committee shall determine, in its sole discretion. In making an Other Share-Based Award, the Committee may
determine that the recipient of an Other Share-Based Award shall be entitled to receive, currently or on a deferred basis, interest or dividends or dividend equivalents with respect to the Shares or other securities covered by the Award, and the
Committee may provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested. The terms of any Other Share-Based Award shall be set forth in an Other Share-Based Award Agreement between the
Corporation and the Employee, which Agreement shall contain such provisions as the Committee determines to be necessary or appropriate to carry out the intent of the Plan. 
  

	 	(b)	Terms and Conditions. 

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

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

  
 (ii) The Other Share-Based Award Agreement
shall contain provisions dealing with the disposition of such Award in the event of termination of the Employee’s 

  

 14 

 
employment prior to the exercise, realization or payment of such Award, and the Committee in its sole discretion may provide for payment of the Award in the
event of the Employee’s retirement, Disability or death or the change of control of the Corporation, with such provisions to take account of the specific nature and purpose of the Award. 
  

	10.	RESERVED. 

  

	11.	OTHER PAYMENTS IN SHARES. 

  
 Shares may be issued under this Plan to satisfy the payment of all or part of an award pursuant to the Potlatch Corporation Management Performance Award
Plan. In addition, all or part of any Director’s fees may be paid in Shares issued under this Plan. Any Shares issued pursuant to this Section 11 shall reduce the number of Shares authorized for Options, Restricted Stock or Other Share-Based
Awards under Section 6 but shall not be considered an Award for purposes of the maximum grant limitation in Section 5(b). 
  

	12.	TERM OF PLAN. 

  
 Awards may be granted and Shares may be issued pursuant to the Plan until the termination of the Plan on December 2, 2009. 
  

	13.	RECAPITALIZATION. 

  
 Subject to any required action by the stockholders, the number of Shares covered by this Plan as provided in Section 6, the maximum grant limitation in
Section 5(b), the number of Shares covered by or referenced in each outstanding Award, the number of Options to be granted to Outside Directors under Sections 10(a) through 10(c) and the Exercise Price of each outstanding Option and any price
required to be paid for Restricted Stock or Other Share-Based Award shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a subdivision or consolidation of Shares, the payment of a stock
dividend (but only of Common Stock) or any other increase or decrease in the number of such Shares effected without receipt of consideration by the Corporation or the declaration of a dividend payable in cash that has a material effect on the price
of issued Shares. 
  

 15 

 Subject to any required action by the stockholders, if the Corporation shall be a party to any merger,
consolidation or other reorganization, each outstanding Award shall pertain and apply to the securities to which a holder of the number of Shares subject to the Award would have been entitled. In the event of a change in the Common Stock as
presently constituted, which is limited to a change of all of its authorized shares with par value into the same number of shares with a different par value or without par value, the shares resulting from any such change shall be deemed to be the
Common Stock within the meaning of the Plan. 
  
 To the extent
that the foregoing adjustments relate to stock or securities of the Corporation, such adjustments shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive, provided that each Incentive Stock Option
granted pursuant to this Plan shall not be adjusted in a manner that causes the Option to fail to continue to qualify as an incentive stock option within the meaning of section 422 of the Code. 
  
 Except as expressly provided in this Section 13, a Participant shall have no
rights by reason of any subdivision or consolidation of shares of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class or by reason of any dissolution, liquidation,
merger or consolidation or spin-off of assets or stock of another corporation, and any issue by the Corporation of shares of stock of any class or securities convertible into shares of stock of any class, shall not affect the number or price of
Shares subject to the Option. 
  
 The grant of an Option pursuant
to the Plan shall not affect in any way the right or power of the Corporation to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge or consolidate or to dissolve, liquidate, sell or
transfer all or any part of its business assets. 
  

	14.	SECURITIES LAW REQUIREMENTS AND LIMITATION OF RIGHTS. 

  

	 	(a)	Securities Law. 

  
 No Shares shall be issued pursuant to the Plan unless and until the Corporation has determined that: (i) it and the Participant have taken all actions
required to register the Shares under the Securities Act of 1933 or perfect an exemption from registration; (ii) any applicable 

  

 16 

 
listing requirement of any stock exchange on which the Common Stock is listed has been satisfied; and (iii) any other applicable provision of state or
federal law has been satisfied. 
  

	 	(b)	Employment Rights. 

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

	 	(c)	Stockholders’ Rights. 

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

	 	(d)	Creditors’ Rights. 

  
 A holder of an Other Share-Based Award shall have no rights other than those of a general creditor of the Corporation. An Other Share-Based Award shall
represent an unfunded and unsecured obligation of the Corporation, subject to the terms and conditions of the applicable Other Share-Based Award Agreement. An Other Share-Based Award shall not be deemed to create a trust for the benefit of any
individual. 
  

	15.	AMENDMENT OF THE PLAN. 

  
 The Board may suspend or discontinue the Plan or revise or amend it with respect to any Shares at the time not subject to Awards except that, without
approval of the stockholders of the Corporation, no such revision or amendment shall: 
  
 (a) Increase the number of Shares subject to the Plan; 
  

 17 

 (b) Change the designation in Section 5 of the class of Employees eligible to receive Awards; 

 
 (c) Decrease the price at which Incentive Stock Options may be granted;

  
 (d) Remove the administration of the Plan from the Committee;

  
 (e) Render any disinterested member of the Committee eligible
to receive a discretionary Award under Sections 7, 8 and 9 while serving on the Committee; 
  
 (f) Amend this Section 15 to defeat its purpose. 
  
 The foregoing notwithstanding, the Plan may not be amended (including any amendment of this Section 15) or terminated by the Board during the three-year period following an event described in Section 7(d)(i) through
(iv) if such amendment or termination would alter the provision of this Section 15 or impair any outstanding rights under any Awards previously granted under the Plan. 
  

	16.	NO OBLIGATION TO EXERCISE OPTION. 

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

	17.	APPROVAL OF STOCKHOLDERS. 

  
 This Plan and any amendments requiring stockholder approval pursuant to Section 15 shall be subject to approval by affirmative vote of the stockholders.
Such vote shall be taken at the first annual meeting of stockholders of the Corporation following the adoption of the Plan or of any such amendments, or any adjournment of such meeting. 
  

	18.	PAYMENT OF EXCISE TAX. 

  
 If any payments or transfers to or for the benefit of the Participant are deemed an “excess parachute payment” as defined in Section 280G of the
Internal Revenue Code of 1986 (the “Code”) subject to the excise tax imposed by Section 4999 of the Code, the Corporation shall pay to the Participant an additional amount such that the total amount of all such payments and 

  

 18 

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

	19.	WITHHOLDING TAXES. 

  

	 	(a)	General. 

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

	 	(b)	Nonqualified Options. 

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

	20.	SUCCESSORS AND ASSIGNS. 

  
 The Plan shall be binding upon the Corporation, its successors and assigns, and any parent corporation of the Corporation’s successors or assigns.
Notwithstanding that the Plan 

  

 19 

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

	21.	EXECUTION. 

  
 To record the adoption of the Plan effective December 2, 1999, the Corporation has caused its authorized officer to execute the same. 
  

			
	 POTLATCH CORPORATION

		
	 By
	 	 
	 	 	 

  

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