Document:

exv10w2

 

EXHIBIT 10.2

F5 Networks, Inc.

Acopia Acquisition Equity Incentive Plan

Adopted
August 5, 2007

Termination Date: August 4, 2017

1. Purposes.

     (a) Eligible Stock Award Recipients. The persons eligible to receive Stock Awards are the
Employees, Directors and Consultants of Acopia Networks, Inc. and its Affiliates (“Acopia”) to whom
the Company offers employment in connection with the Company’s acquisition of Acopia.

     (b) Available Stock Awards. The purpose of the Plan is to provide a means by which eligible
recipients of Stock Awards may be given an opportunity to benefit from increases in value of the
Common Stock through the granting of the following Stock Awards: (i) Options and (ii) Stock Units.

     (c) General Purpose. The Company, by means of the Plan, seeks to retain the services of the
group of persons eligible to receive Stock Awards, to secure and retain the services of new members
of this group and to provide incentives for such persons to exert maximum efforts for the success
of the Company and its Affiliates.

2. Definitions.

     (a) “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether
now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of
the Code.

     (b) “Applicable Laws” means the legal requirements relating to the administration of equity
compensation plans, including under applicable U.S. state corporate laws, U.S. federal and
applicable state securities laws, other U.S. federal and state laws, the Code, any stock exchange
rules or regulations and the applicable laws, rules and regulations of any other country or
jurisdiction where Stock Awards are granted under the Plan, as such laws, rules, regulations and
requirements shall be in place from time to time.

     (c) “Board” means the Board of Directors of the Company.

     (d) “Code” means the Internal Revenue Code of 1986, as amended.

     (e) “Committee” means a committee appointed by the Board in accordance with subsection 3(c).

     (f) “Common Stock” means the common stock of the Company.

     (g) “Company” means F5 Networks, Inc., a Washington corporation.

     (h) “Consultant” means any person, including an advisor, (i) who is engaged by the Company or
an Affiliate to render services other than as an Employee or as a Director or (ii) who is a member
of the Board of Directors of an Affiliate.

     (i) “Continuous Service” means that the Participant’s service with the Company or an
Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. The
Participant’s Continuous Service shall not be deemed to have terminated merely because of a change
in the capacity in which the Participant renders service to the Company or an Affiliate as an
Employee,

 

 

Consultant or Director or a change in the entity among the Company or an Affiliate for which
the Participant renders such service, provided that there is no interruption or termination of the
Participant’s Continuous Service. For example, a change in status from an Employee of the Company
to a Consultant of an Affiliate or a Director of the Company will not constitute an interruption of
Continuous Service. Subject to Section 6(e)(ii), the Board or the chief executive officer of the
Company, in that party’s sole discretion, may determine whether Continuous Service shall be
considered interrupted in the case of any leave of absence approved by that party, including sick
leave, military leave or any other personal leave.

     (j) “Covered Employee” means the chief executive officer and the four (4) other highest
compensated officers of the Company for whom total compensation is required to be reported to
shareholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code.

     (k) “Director” means a member of the Board of Directors of the Company.

     (l) “Disability” means the permanent and total disability of a person within the meaning of
Section 22(e)(3) of the Code.

     (m) “Employee” means any person employed by the Company or an Affiliate. Subject to the
Applicable Laws, the determination of whether an individual (including leased and temporary
employees) is an Employee hereunder shall be made by the Board (or its Committee), in its sole
discretion. Mere service as a Director or payment of a director’s fee by the Company or an
Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.

     (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (o) “Fair Market Value” means, as of any date, the value of the Common Stock determined as
follows:

          (i) If the Common Stock is listed on any established stock exchange or traded on the Nasdaq
National Market, the Fair Market Value of a Share shall be the closing sales price for such stock
(or the closing bid, if no sales were reported) as quoted on such exchange or market (or such other
exchange or market with the greatest volume of trading in the Common Stock) on the day of
determination or, if the day of determination is not a market trading day, then on the last market
trading day prior to the day of determination, as reported in such source or sources as the Board
deems reliable, or

          (ii) In the absence of such markets for the Common Stock, the Fair Market Value shall be
determined in good faith by the Board.

     (p) “Independent Director” means a Director who qualifies as an “independent” director under
applicable Nasdaq rules (or the rules of any exchange on which the Common Stock is then listed or
approved for listing).

     (q) “Non-Employee Director” means a Director of the Company who either (i) is not a current
Employee or Officer of the Company or its parent or a subsidiary, does not receive compensation
(directly or indirectly) from the Company or its parent or a subsidiary for services rendered as a
consultant or in any capacity other than as a Director (except for an amount as to which disclosure
would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities
Act (“Regulation S-K”)), does not possess an interest in any other transaction as to which
disclosure would be required under Item 404(a) of Regulation S-K and is not engaged in a business
relationship as to which disclosure would be required under Item 404(b) of Regulation S-K; or (ii)
is otherwise considered a “non-employee director” for purposes of Rule 16b-3.

     (r) “Officer” means a person who is an officer of the Company within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder.

 

 

     (s) “Option” means a nonstatutory stock option (meaning, an option not intended to qualify as
an incentive stock option under Code Section 422) granted pursuant to the Plan.

     (t) “Outside Director” means a Director of the Company who either (i) is not a current
Employee of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations
promulgated under Section 162(m) of the Code), is not a former Employee of the Company or an
“affiliated corporation” receiving compensation for prior services (other than benefits under a tax
qualified pension plan), was not an officer of the Company or an “affiliated corporation” at any
time and is not currently receiving direct or indirect remuneration from the Company or an
“affiliated corporation” for services in any capacity other than as a Director or (ii) is otherwise
considered an “outside director” for purposes of Section 162(m) of the Code.

     (u) “Participant” means a person to whom a Stock Award is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Stock Award.

     (v) “Plan”
means this F5 Networks, Inc. Acopia Acquisition Equity Incentive Plan.

     (w) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule
16b-3, as in effect from time to time.

     (x) “Securities Act” means the Securities Act of 1933, as amended.

     (y) “Share” means a share of the Common Stock, as adjusted in accordance with Section 11
below.

     (z) “Stock Award” means any right involving Shares granted under the Plan, including an Option
or Stock Unit.

     (aa) “Stock Award Agreement” means a written agreement between the Company and a holder of a
Stock Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock
Award Agreement shall be subject to the terms and conditions of the Plan.

     (bb) “Stock Unit” means an award giving the right to receive Shares granted under Section 7
below.

3. Administration.

     (a) Administration by Board. The Board shall administer the Plan unless and until the Board
delegates administration to a Committee or an administrator, as provided in subsection 3(c).

     (b) Powers of Board. The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan:

          (i) To determine from time to time which of the persons eligible under the Plan shall be
granted Stock Awards; when and how each Stock Award shall be granted; what type or combination of
types of Stock Awards shall be granted; the provisions, terms and conditions of each Stock Award
granted (which need not be identical as among Participants or as among types of Stock Awards),
including, without limitation: the time or times when a person shall be permitted to receive Shares
pursuant to a Stock Award, the number of Shares with respect to which a Stock Award shall be
granted to each such person, the exercise or purchase price (if any) of a Stock Award, the time or
times when Stock Awards may be exercised (which may be based on performance criteria), any vesting
acceleration or waiver of forfeiture restrictions, any pro rata adjustment to vesting as a result
of a Participant’s transitioning from full- to part-time service (or vice versa), and any other
restriction (including forfeiture restriction), limitation or term of any Stock Award, based in
each case on such factors as the Board, in its sole discretion, shall determine;

 

 

provided, however, that such provisions, terms and conditions are not inconsistent with the
terms of the Plan.

          (ii) In order to fulfill the purposes of the Plan and without amending the Plan, to modify
grants of Stock Awards to Participants who are foreign nationals or employed outside of the United
States in order to recognize differences in local law, tax policies or customs.

          (iii) To construe and interpret the Plan and Stock Awards granted under it, and to establish,
amend and revoke rules and regulations for its administration. The Board, in the exercise of this
power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award
Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan
fully effective.

          (iv) To amend the Plan or a Stock Award as provided in Section 12.

          (v) Generally, to exercise such powers and to perform such acts as the Board deems necessary
or expedient to promote the best interests of the Company which are not in conflict with the
provisions of the Plan.

     (c) Delegation to Committee. The Board may delegate administration of the Plan to a Committee
or Committees of one or more members of the Board, and the term “Committee” shall apply to any
person or persons to whom such authority has been delegated. In the discretion of the Board, the
Committee may consist solely of two or more Outside Directors, in accordance with Section 162(m) of
the Code, and/or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3,
and/or solely of two or more Independent Directors under applicable Nasdaq (or other exchange)
rules. The Board or the Committee may further delegate its authority and responsibilities under
the Plan to an Officer. However, if administration is delegated to an Officer, such Officer may
grant Stock Awards only within guidelines established by the Board or the Committee, and only the
Board or the Committee may make a Stock Award to an Officer or Director. If administration is
delegated to a Committee, the Committee shall have, in connection with the administration of the
Plan, the powers theretofore possessed by the Board, including the power to delegate to a
subcommittee any of the administrative powers the Committee is authorized to exercise (and
references in this Plan to the Board shall thereafter be to the Committee or subcommittee, or an
Officer to whom authority has been delegated), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.
The Board may abolish the Committee at any time and revest in the Board the administration of the
Plan, and unless otherwise specified by the Board shall retain any authority granted to a committee
or individual hereunder unto itself.

4. Shares Subject to the Plan.

     (a) Share Reserve. Subject to the provisions of Section 11 relating to adjustments upon
changes in stock, the stock that may be issued pursuant to Stock Awards shall not exceed in the
aggregate Six Hundred Thousand (600,000) Shares of Common Stock1.

     (b) Section 162(m) Limitation on Share Numbers. No Employee shall be eligible to be granted
Stock Awards covering more than One Million (1,000,000) Shares during any fiscal year of the
Company.

     (c) Reversion of Shares to the Share Reserve. If any Stock Award shall for any reason expire
or otherwise terminate, in whole or in part, without having been exercised in full, the Shares not
acquired under such Stock Award shall revert to and again become available for issuance under the
Plan. Further, if any previously-issued Shares are forfeited under the terms and conditions of the
Stock Award, then any Shares so forfeited shall revert to and again become available for issuance
under the Plan. The provisions of this Section 4(c) are qualified by Section 4(a) such that the
total number of Shares issued and

 

			
	1	 	As adjusted to reflect two-for-one forward
stock split effective August 20, 2007

 

 

outstanding under the Plan at any time may not exceed the number set forth in Section 4(a) (as
adjusted under Section 11).

     (d) Source of Shares. The stock subject to the Plan may be unissued Shares or reacquired
Shares, bought on the market or otherwise.

5. Eligibility. Stock Awards may be granted to Employees, Directors and Consultants.

6. Option Provisions.

     Each Option shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. The provisions of separate Options need not be identical, but each Option
shall include (through incorporation of provisions hereof by reference in the Option or otherwise)
the substance of each of the following provisions:

     (a) Term. No Option shall be exercisable after the expiration of ten (10) years from the date
it was granted.

     (b) Exercise Price of an Option. The exercise price of each Option shall be at least equal to
the Fair Market Value of the stock subject to the Option on the date the Option is granted.
Notwithstanding the foregoing, an Option may be granted with an exercise price lower than that set
forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section 424(a) of the Code.

     (c) Consideration. The purchase price of stock acquired pursuant to an Option shall be paid,
to the extent permitted by applicable statutes and regulations, either (i) in cash, check or wire
transfer at the time the Option is exercised or (ii) at the discretion of the Board at the time of
the grant of the Option or subsequently by (1) delivery to the Company of other Shares that have
a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as
to which the Option is exercised, provided that in the case of Shares acquired, directly or
indirectly, from the Company, such Shares must have been owned by the Participant for more than six
(6) months on the date of surrender (or such other period as may be required to avoid the Company’s
incurring an adverse accounting charge), (2) if, as of the date of exercise of an Option the
Company then is permitting Employees to engage in a “same-day sale” cashless brokered exercise
program involving one or more brokers, through such a program that complies with the Applicable
Laws (including without limitation the requirements of Regulation T and other applicable
regulations promulgated by the Federal Reserve Board) and that ensures prompt delivery to the
Company of the amount required to pay the exercise price and any applicable withholding taxes, (3)
in any other form of legal consideration that may be acceptable to the Board, or (4) any
combination of the foregoing methods. In making its determination as to the type of consideration
to accept, the Board shall consider if acceptance of such consideration may be reasonably expected
to benefit the Company and the Board may, in its sole discretion, refuse to accept a particular
form of consideration at the time of any Option exercise.

     (d) Transferability of an Option. The Option shall not be transferable except by will or by
the laws of descent and distribution and shall be exercisable during the lifetime of the
Participant only by the Participant. Notwithstanding the foregoing provisions of this subsection
6(d), the Participant may, by delivering written notice to the Company, in a form satisfactory to
the Company, designate a third party who, in the event of the death of the Participant, shall
thereafter be entitled to exercise the Option.

 

 

     (e) Vesting.

          (i) Generally. The total number of Shares of Common Stock subject to an Option may, but need
not, vest and therefore become exercisable in periodic installments which may, but need not, be
equal. The Option may be subject to such other terms and conditions on the time or times when it
may be exercised (which may be based on performance or other criteria) as the Board may deem
appropriate. The vesting provisions of individual Options may vary. The provisions of this
subsection 6(e) are subject to any Option provisions governing the minimum number of Shares as to
which an Option may be exercised.

          (ii) Leave of Absence. The Board (or any other party to whom such authority has been
delegated, including under this Plan) shall have the discretion to determine whether and to what
extent the vesting of Options shall be tolled during any unpaid leave of absence; provided,
however, that in the absence of such determination, vesting of Options shall be tolled during any
such unpaid leave (unless otherwise required by the Applicable Laws). In the event of military
leave, vesting shall toll during any unpaid portion of such leave, provided that, upon a
Participant’s returning from military leave (under conditions that would entitle him or her to
protection upon such return under the Uniform Services Employment and Reemployment Rights Act), he
or she shall be given vesting credit with respect to Options to the same extent as would have
applied had the Participant continued to provide services to the Company throughout the leave on
the same terms as he or she was providing services immediately prior to such leave.

     (f) Termination of Continuous Service. In the event a Participant’s Continuous Service
terminates (other than upon the Participant’s death or Disability), the Participant may exercise
his or her Option (to the extent that the Participant was vested in the Option Shares and entitled
to exercise such Option as of the date of termination) but only within such period of time ending
on the earlier of (i) the date three (3) months following the termination of the Participant’s
Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii)
the expiration of the term of the Option as set forth in the Option Agreement. If, after
termination, the Participant does not exercise his or her Option within the time specified in the
Option Agreement, the Option shall terminate.

     (g) Extension of Termination Date. Following the termination of the Participant’s Continuous
Service (other than upon the Participant’s death or Disability), if the Participant would be
prohibited at any time solely because the issuance of Shares would violate the registration
requirements under the Securities Act or violate any prohibition on trading on the basis of
possession of material nonpublic information involving the Company and its business, then the
Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in
subsection 6(a), or (ii) the expiration of a period of three (3) months after the termination of
the Participant’s Continuous Service during which the exercise of the Option would not be in
violation of such requirements.

     (h) Disability of Participant. In the event a Participant’s Continuous Service terminates as
a result of the Participant’s Disability, the Participant may exercise his or her Option (to the
extent that the Participant was vested in the Option Shares and entitled to exercise the Option as
of the date of termination), but only within such period of time ending on the earlier of (i) the
date twelve (12) months following such termination (or such longer or shorter period specified in
the Option Agreement) or (ii) the expiration of the term of the Option as set forth in the Option
Agreement. If, after termination, the Participant does not exercise his or her Option within the
time specified herein, the Option shall terminate.

     (i) Death of Participant. In the event (i) a Participant’s Continuous Service terminates as
a result of the Participant’s death or (ii) the Participant dies within the period (if any)
specified in the Option Agreement after the termination of the Participant’s Continuous Service for
a reason other than death, then the Option may be exercised (to the extent the Participant was
vested in the Option Shares and entitled to exercise the Option as of the date of death) by the
Participant’s estate, by a person who acquired the right to exercise the Option by bequest or
inheritance or by a person designated to exercise the Option upon the Participant’s death pursuant
to subsection 6(d), but only within the period ending on the earlier of (1) the date eighteen (18)
months following the date of death (or such longer or shorter period specified in

 

 

the Option Agreement) or (2) the expiration of the term of such Option as set forth in the
Option Agreement. If, after death, the Option is not exercised within the time specified herein,
the Option shall terminate.

     (j) Exercise Generally. Options shall be considered exercised when the Company (or its
authorized agent) receives (i) written or electronic notice from the person entitled to exercise
the Option of intent to exercise a specific number of Shares, (ii) full payment or appropriate
provision for payment in a form and method acceptable to the Board or Committee, for the Shares
being exercised, and (iii) if applicable, payment or appropriate provision for payment of any
withholding taxes due on exercise. An Option may not be exercised for a fraction of a Share. The
Option may, at the discretion of the Board or Committee, include a provision whereby the
Participant may elect to exercise the Option as to Shares that are not yet vested. Unvested Shares
exercised in such manner may be subject to a Company repurchase right under Section 10(f) or such
other restrictions or conditions as the Board or Committee may determine.

     (k) Administrator Discretion. Notwithstanding the provisions of this Section 6, the Board or
the Committee shall have complete discretion exercisable at any time to (i) extend the period of
time for which an Option is to remain exercisable, following the Participant’s termination of
Continuous Service, but in no event beyond the expiration date for the Option, and (ii) permit the
Option to be exercised, during the applicable post-termination exercise period, not only with
respect to the number of Shares that were vested on the date of
termination, but also with respect
to additional Shares on such terms and conditions as the Board or Committee may determine.

7. Provisions of Stock Awards other than Options.

     Each Stock Award Agreement reflecting the issuance of a Stock Unit shall be in such form and
shall contain such terms and conditions as the Board shall deem appropriate. The terms and
conditions of such agreements may change from time to time, and the terms and conditions of
separate agreements need not be identical, but each such agreement shall include (through
incorporation of provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:

          (a) Consideration. A Stock Unit may be awarded in consideration for such property or services
as is permitted under Applicable Law, including for past services actually rendered to the Company
or an Affiliate for its benefit.

          (b) Vesting; Restrictions. Shares of Common Stock awarded under the agreement reflecting a
Stock Unit may, but need not, be subject to a Share repurchase option, forfeiture restriction
or other conditions in favor of the Company in accordance with a vesting or lapse schedule to be
determined by the Board.

          (c) Termination of Participant’s Continuous Service. In the event a Participant’s Continuous
Service terminates, the Company may reacquire any or all of the Shares of Common Stock held by the
Participant which have not vested or which are otherwise subject to forfeiture or other conditions
as of the date of termination under the terms of the agreement.

          (d) Transferability. Rights to acquire Shares of Common Stock under a Stock Unit agreement
shall not be transferable except by will or by the laws of descent and distribution, and Shares of
Common Stock issued upon vesting of a Stock Unit shall be issuable during the lifetime of the
Participant only to the Participant. Notwithstanding the foregoing provisions of this subsection
7(d), the Participant may, by delivering written notice to the Company, in a form satisfactory to
the Company, designate a third party who, in the event of the death of the Participant, shall
thereafter be entitled to receive Shares of Common Stock issued upon vesting of a Stock Unit.

 

 

8. Covenants of the Company.

     (a) Availability of Shares. During the terms of the Stock Awards, the Company shall keep
available at all times the number of Shares of Common Stock required to satisfy such Stock Awards.

     (b) Securities Law Compliance. The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be required to grant
Stock Awards and to issue and sell Shares upon exercise of the Stock Awards; provided, however,
that this undertaking shall not require the Company to register under the Securities Act the Plan,
any Stock Award or any stock issued or issuable pursuant to any such Stock Award. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency
the authority which counsel for the Company deems necessary for the lawful issuance and sale of
stock under the Plan, the Company shall be relieved from any liability for failure to issue and
sell stock upon exercise of such Stock Awards unless and until such authority is obtained.

9. Use of Proceeds from Stock; Unfunded Plan.

     Proceeds from the sale of stock pursuant to Stock Awards shall constitute general funds of the
Company. The Plan shall be unfunded. Although bookkeeping accounts may be established with
respect to Participants who are granted Stock Awards hereunder, any such accounts will be used
merely as a bookkeeping convenience. The Company shall not be required to segregate any asset
which may at any time be represented by Stock Awards, nor shall this Plan be construed as providing
for such segregation, nor shall the Company nor any party authorized to administer the Plan be
deemed to be a trustee of stock or cash to be awarded under the Plan. Any liability of the Company
to any Participant with respect to a Stock Award shall be based solely upon any contractual
obligations which may be created by the Plan; no such obligation of the Company shall be deemed to
be secured by any pledge or other encumbrance on any property of the Company. Neither the Company
nor any party authorized to administer the Plan shall be required to give any security or bond for
the performance of any obligation which may be created by this Plan.

10. Miscellaneous.

     (a) Acceleration of Exercisability and Vesting. The Board shall have the power to accelerate
the time at which a Stock Award may first be exercised or the time during which a Stock Award or
any part thereof will vest, become exercisable or be settled in accordance with the Plan,
notwithstanding the provisions in the Stock Award stating the time at which it may first vest, be
exercised or be settled.

     (b) Shareholder Rights. No Participant shall be deemed to be the holder of, or to have any of
the rights of a holder with respect to, any Shares subject to such Stock Award unless and until
such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its
terms.

     (c) No Employment or other Service Rights. Nothing in the Plan or any instrument executed or
any Stock Award granted pursuant thereto shall confer upon any Participant or other holder of Stock
Awards any right to continue to serve the Company or an Affiliate in the capacity in effect at the
time the Stock Award was granted or shall affect the right of the Company or an Affiliate to
terminate (i) the employment of an Employee with or without notice and with or without cause, (ii)
the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company
or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the Company or an
Affiliate, and any applicable provisions of the corporate law of the state in which the Company or
the Affiliate is incorporated, as the case may be.

     (d) Investment Assurances. The Company may require a Participant, as a condition of
exercising or acquiring Shares under any Stock Award, (i) to give written assurances satisfactory
to the Company as to the Participant’s knowledge and experience in financial and business matters
and/or to employ a purchaser representative reasonably satisfactory to the Company who is
knowledgeable and

 

 

experienced in financial and business matters and that he or she is capable of evaluating,
alone or together with the purchaser representative, the merits and risks of exercising the Stock
Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant
is acquiring the stock subject to the Stock Award for the Participant’s own account and not with
any present intention of selling or otherwise distributing the stock. The foregoing requirements,
and any assurances given pursuant to such requirements, shall be inoperative if (iii) the issuance
of the Shares upon the exercise or acquisition of stock under the Stock Award has been registered
under a then currently effective registration statement under the Securities Act or (iv) as to any
particular requirement, a determination is made by counsel for the Company that such requirement
need not be met in the circumstances under the then applicable securities laws. The Company may,
upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as
such counsel deems necessary or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of the stock.

     (e) Withholding Obligations. To the extent provided by the terms of a Stock Award Agreement,
the Participant may satisfy any federal, state or local tax withholding obligation relating to the
exercise or acquisition of Shares under a Stock Award by any of the following means (in addition to
the Company’s right to withhold from any compensation paid to the Participant by the Company) or by
a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to
withhold Shares from the Shares otherwise issuable to the Participant as a result of the exercise
or acquisition of stock under the Stock Award; or (iii) delivering to the Company owned and
unencumbered Shares.

     (f) Stock Unit Repurchase Limitation. The terms of any repurchase option for a Stock Unit
shall be specified in the Stock Award and may be at the Fair Market Value of the stock subject to
the Stock Award at the time of repurchase, at the original price or on such terms and conditions as
the Board may determine (and as shall be reflected in the Stock Award Agreement); provided however
that this Section 10(f) shall in no way limit the Company’s ability to adjust any Stock Award as
provided under Section 11 below.

     (g) Cancellation and Re-Grant of Options. The Company may not reprice any outstanding Stock
Awards under the Plan, including implement any program whereby outstanding Stock Awards will be
cancelled and replaced with Stock Awards bearing a lower purchase or exercise price, without first
obtaining the approval of the shareholders of the Company; provided however that this Section 10(g)
shall in no way limit the Company’s ability to adjust Stock Awards as provided under Section 11
below.

     (h) Interpretation of Plan and Stock Awards. In the event that any provision of the Plan or
any Stock Award granted under the Plan is declared to be illegal, invalid or otherwise
unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible,
to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the
remainder of the terms of the Plan and/or Stock Award shall not be affected to the extent necessary
to reform or delete such illegal, invalid or unenforceable provision. All questions arising under
the Plan or under any Stock Award shall be decided by the Board or the Committee in its or their
total and absolute discretion and such decisions shall be final and binding on all parties.

     (i) Electronic Communication. Any document required to be delivered under the Plan, including
under the Applicable Laws, may be delivered in writing or electronically. Signature may also be
electronic if permitted by the Board or the Committee, and if permitted by Applicable Law.

     (j) Escrow of Shares. To enforce any restriction applicable to Shares issued under the Plan,
the Board or the Committee may require a Participant or other holder of such Shares to deposit the
certificates representing such Shares, with approved stock powers or other transfer instruments
endorsed in blank, with the Company or an agent of the Company until the restrictions have lapsed.
Such certificates (or other notations representing the Shares) may bear a legend or legends
referencing the applicable restrictions.

 

 

11. Adjustments upon Changes in Stock.

     (a) Capitalization Adjustments. If any change is made in the stock subject to the Plan, or
subject to any Stock Award, without the receipt of consideration by the Company (through merger,
consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in
property other than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the receipt of
consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum
number of securities subject to the Plan pursuant to subsection 4(a) and the maximum number of
securities subject to award to any person pursuant to subsection 4(b), and the outstanding Stock
Awards will be appropriately adjusted in the class(es) and number of securities and price per Share
of stock subject to such outstanding Stock Awards. The Board, the determination of which shall be
final, binding and conclusive, shall make such adjustments. (The conversion of any convertible
securities of the Company shall not be treated as a transaction “without receipt of consideration”
by the Company.)

     (b) Change in Control—Dissolution or Liquidation. In the event of a dissolution or
liquidation of the Company, then such Stock Awards shall be terminated if not exercised (if
applicable) prior to such event.

     (c) Change in Control—Asset Sale, Merger, Consolidation or Reverse Merger or Acquisition of
Stock.

          (i) In the event of (1) a sale of substantially all of the assets of the Company, or (2) a
merger or consolidation in which the Company is not the surviving corporation or (3) a reverse
merger in which the Company is the surviving corporation but the shares of Common Stock outstanding
immediately preceding the merger are converted by virtue of the merger into other property, whether
in the form of securities, cash or otherwise, or (4) the direct or indirect acquisition (including
by way of a tender or exchange offer) by any person, or persons acting as a group, of beneficial
ownership or a right to acquire beneficial ownership of shares representing a majority of the
voting power of the then outstanding shares of capital stock of the Company, then any surviving
corporation or acquiring corporation shall assume any Stock Awards outstanding under the Plan or
shall substitute similar awards (including with respect to a Stock Award an award to acquire the
same consideration paid to the shareholders in the transaction described in this subsection 11(c)
for those outstanding under the Plan).

          (ii) For purposes of subsection 11(c) a Stock Award shall be deemed assumed if, following the
change in control, the Stock Award confers the right to purchase in accordance with its terms and
conditions, for each share of Common Stock subject to the Stock Award immediately prior to the
change in control, the consideration (whether stock, cash or other securities or property) to which
a holder of a share of Common Stock on the effective date of the change in control was entitled.

          (iii) Subject to the provisions of any Stock Award Agreement, in the event any surviving
corporation or acquiring corporation refuses to assume such Stock Awards or to substitute similar
stock awards for those outstanding under the Plan, then with respect to Stock Awards held by
Participants whose Continuous Service has not terminated, the vesting of 50% of such Stock Awards
(and, if applicable, the time during which such Stock Awards may be exercised or settled) shall be
accelerated in full, and the Stock Awards shall terminate if not exercised or settled (if
applicable) at or prior to such event. With respect to any other Stock Awards outstanding under
the Plan, such Stock Awards shall terminate if not exercised (if applicable) prior to such event.

          (iv) The Board shall at all times have the authority, in its sole discretion, to provide for
additional or different vesting, exercisability, settlement or forfeiture conditions with respect
to Stock Awards than that reflected in this Section 11(c), provided that its determinations in this
regard shall be reflected in the Stock Award Agreement (including in amendments thereto) issued to
the affected Participant.

 

 

12. Amendment of the Plan and Stock Awards.

     (a) Amendment of Plan. The Board at any time, and from time to time, may amend the Plan.
However, except as provided in Section 11 relating to adjustments upon changes in stock, no
amendment shall be effective unless approved by the shareholders of the Company to the extent
shareholder approval is necessary to satisfy the requirements of Rule 16b-3 or any Nasdaq or
securities exchange listing requirements.

     (b) Shareholder Approval. Stock Awards issued pursuant to the Plan are intended to comply
with Nasdaq Marketplace Rule 4350(i)(1)(A)(iv). To the extent applicable, the Board may, in its
sole discretion, submit any other amendment to the Plan for shareholder approval, including, but
not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of
the Code and the regulations thereunder regarding the exclusion of performance-based compensation
from the limit on corporate deductibility of compensation paid to certain executive officers.

     (c) Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide eligible Employees with the
maximum benefits provided or to be provided under the provisions of the Code or any other
Applicable Law.

     (d) No Impairment of Rights. Rights under any Stock Award granted before amendment of the
Plan shall not be materially impaired by any amendment of the Plan unless (i) the Company requests
the consent of the Participant and (ii) the Participant consents in writing.

     (e) Amendment of Stock Awards. The Board at any time, and from time to time, may amend the
terms of any one or more Stock Awards; provided, however, that the rights under any Stock Award
shall not be materially impaired by any such amendment unless (i) the Company requests the consent
of the Participant and (ii) the Participant consents in writing.

13. Termination or Suspension of the Plan.

     (a) Plan Term. The Board may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the date the
Plan is adopted by the Board.
No Stock Awards may be granted under the Plan while the Plan is suspended or after it is
terminated.

     (b) No Impairment of Rights. Suspension or termination of the Plan shall not materially
impair rights and obligations under any Stock Award granted while the Plan is in effect except with
the written consent of the Participant.

14. Effective Date of Plan.

     The Plan shall become effective as determined by the Board.

15. Governing Law. All questions concerning the construction, validity and interpretation
of this Plan shall be governed by the law of the State of Washington, without regard to such states
conflict of laws rules.exv4w1

 

EXHIBIT 4.1

     This Note is a Global Security within the meaning of the Indenture hereinafter referred
to and is registered in the name of a Depositary or a nominee thereof. This Note is exchangeable
for Notes registered in the name of a person other than the Depositary or its nominee only in the
limited circumstances described in the Indenture and, unless and until it is exchanged in whole or
in part for individual Notes represented hereby, this Global Security may not be transferred except
as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.

     Unless this Note is presented by an authorized representative of The Depository Trust Company,
a New York corporation (“DTC”), to the Issuer (as defined below) or its agent for registration of
transfer, exchange or payment, and any Note issued is registered in the name of Cede & Co. or in
such other name as requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized representative of DTC), any
transfer, pledge or other use hereof for value or otherwise by or to any person is wrongful
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

No. R-1

Principal Amount:

$450,000,000

CUSIP No. 962166BU7

ISIN No. US962166BU79

WEYERHAEUSER COMPANY

Floating Rate Note due 2009

     WEYERHAEUSER COMPANY, a Washington corporation (the “Issuer”, which term includes any
successor thereto under the Indenture referred to below), for value received, hereby promises to
pay to Cede & Co., or registered assigns, at the office or agency of the Issuer maintained for such
purpose in the Borough of Manhattan, The City of New York, the principal sum of Four Hundred and
Fifty Million Dollars ($450,000,000) on September 24, 2009, in such coin or currency of the United
States of America as at the time of payment shall be legal tender for the payment of public and
private debts, and to pay interest on said principal sum at said office or agency, quarterly in
arrears on March 24, June 24, September 24 and December 24 of each year (each, an “Interest Payment
Date”), commencing December 24, 2007, and at final maturity, in like coin or currency, at a per
annum rate equal to LIBOR (determined in the manner described below) plus 1.00% from the Interest
Payment Date next preceding the date of this Note to which interest has been paid or duly provided
for, unless the date hereof is a date to which interest has been paid or duly provided for, in
which case from the date of this Note, or unless no interest has been paid or duly provided for on
these Notes, in which case from September 24, 2007, until payment of said principal sum has been
made or duly provided for; provided that, if this Note is not a Global Security, payment of
interest will be made against presentation of this Note at the office or agency of the Issuer
maintained for such purpose in the Borough of Manhattan, The City of New York (and the offices or
agencies of the Issuer maintained for such purpose in any such other locations, if any, as the
Issuer may from time to time elect) or, at the option of the Issuer, by
check mailed to the address of the Person entitled thereto as such address shall appear on the
Security register; and provided, further, that if this Note is a Global Security registered in the
name of a Depositary or its nominee, payment of interest shall be made to the Depositary or its
nominee, as the case may be, in accordance with the Depositary’s procedures as in effect from time
to time. Notwithstanding the foregoing, if the date hereof is after a Regular Record Date (as
defined below) and before the following Interest Payment Date, this Note shall bear interest from
such Interest Payment Date; provided, that if the Issuer shall default in the payment of interest
due on such Interest Payment Date, then this Note shall bear interest from the next preceding
Interest Payment Date to which interest has been paid or duly provided for or, if no interest has
been paid or duly

 

 

provided for on these Notes, from September 24, 2007. The interest so payable on any Interest
Payment Date will, subject to certain exceptions provided in the Indenture referred to below, be
paid to the Person in whose name this Note is registered at the close of business on the 15th
calendar day (whether or not a Floating Rate Business Day, as defined below) immediately preceding
such Interest Payment Date (a “Regular Record Date”); provided that interest payable on the final
maturity date of this Note will be paid to the Person to whom the principal hereof is paid. If any
Interest Payment Date, other than an Interest Payment Date falling on the final maturity date of
this Note, would otherwise be a day that is not a Floating Rate Business Day, that Interest Payment
Date will be moved to, and will be, the next succeeding Floating Rate Business Day, except that, if
that next succeeding Floating Rate Business Day falls in the next succeeding calendar month, that
Interest Payment Date instead will be moved to, and will be, the immediately preceding Floating
Rate Business Day. If the final maturity date of this Note falls on a day that is not a Floating
Rate Business Day, then payments of the principal of and premium, if any, and interest on this Note
that are due on the final maturity date need not be made on the final maturity date, but may be
made on the next succeeding Floating Rate Business Day with the same force and effect as if made on
the final maturity date and no interest will accrue for the period after the final maturity date.

     Interest on this Note will accrue from, and including, September 24, 2007 to, but excluding,
the Interest Payment Date falling in December 2007 and then from, and including, the immediately
preceding Interest Payment Date to which interest has been paid or duly provided for on this Note
to, but excluding, the next Interest Payment Date or the final maturity date, as the case may be;
provided that interest shall cease to accrue on Notes or portions of Notes repurchased by the
Issuer pursuant to a Change of Control Offer (as defined below) on the dates, and subject to the
terms and conditions, set forth below under “Offer to Purchase Upon Change of Control Triggering
Event”. Interest on this Note will be calculated on the basis of the actual number of days in the
applicable period divided by 360.

     “Floating Rate Business Day” means any day, other than a Saturday or Sunday, that is neither a
legal holiday nor a day on which commercial banks are authorized or required by law, regulation or
executive order to close in The City of New York; provided, that such day must also be a London
Business Day. “London Business Day” means any day on which dealings in deposits in United States
dollars are transacted in the London interbank market.

     The interest rate on the Notes for the initial Interest Period (as defined below) commencing
September 24, 2007 will be set, and for each subsequent Interest Period will be reset, as of the
first day of such Interest Period (the date on which that interest rate is set for the initial
Interest Period or reset for any subsequent Interest Period is referred to as an “Interest Reset
Date”). The interest rate in effect on any day that is not an Interest Reset Date will be the
interest rate determined as of the Interest Determination Date (as defined below) pertaining to the
immediately preceding Interest Reset Date, and the interest rate in effect on any day that is an
Interest Reset Date will be the interest rate determined as of the Interest Determination Date
pertaining to that Interest Reset Date.

     “Interest Period” means the period beginning on, and including, an Interest Payment Date to,
but excluding, the next succeeding Interest Payment Date or the final maturity date, as the case
may be, and the first Interest Period will be the period beginning on, and including, September 24,
2007 to, but excluding, the Interest Payment Date falling in December 2007.

     “Interest Determination Date” means, with respect to any Interest Reset Date, the second
London Business Day preceding that Interest Reset Date.

     The Calculation Agent (as defined below) will determine LIBOR in accordance with the following
provisions:

 

 

     “LIBOR” means:

     (1) With respect to any Interest Determination Date, LIBOR will be the rate for
deposits in United States dollars having a maturity of three months commencing on the first
day of the applicable Interest Period, as such rate is displayed on Reuters page LIBOR01 (or
any other page as may replace such page on such service or any successor service for the
purpose of displaying the London interbank rates of major banks for United States dollars)
(“Reuters Page LIBOR01”) as of 11:00 A.M., London time, on that Interest Determination Date.
If no rate is displayed as aforesaid, LIBOR with respect to that Interest Determination Date
will be determined in accordance with the provisions described in (2) below.

     (2) With respect to an Interest Determination Date on which no rate is displayed on
Reuters Page LIBOR01 as specified in (1) above, the Calculation Agent shall request the
principal London offices of each of four major banks in the London interbank market (the
“reference banks”), selected by the Calculation Agent after consultation with the Issuer, to
provide the Calculation Agent with its offered quotation for deposits in United States
dollars for the period of three months, commencing on the first day of the applicable
Interest Period, to prime banks in the London interbank market at approximately 11:00 A.M.,
London time, on that Interest Determination Date and in a principal amount of at least
$1,000,000 that is representative for a single transaction in United States dollars in that
market at that time. If at least two quotations are provided, then LIBOR on that Interest
Determination Date will be the arithmetic mean of those quotations as calculated by the
Calculation Agent. If fewer than two quotations are provided by the reference banks, then
LIBOR on that Interest Determination Date will be the arithmetic mean as calculated by the
Calculation Agent of the rates quoted at approximately 11:00 A.M., New York City time, on
that Interest Determination Date by three major banks in The City of New York, selected by
the Calculation Agent after consultation with the Issuer, for loans in United States dollars
to leading European banks having a three month maturity and in a principal amount equal to
at least $1,000,000 that is representative for a single transaction in United States dollars
in that market at that time; provided, however, that if the banks selected by the
Calculation Agent are not providing quotations in the manner described in this sentence,
LIBOR determined as of that Interest Determination Date shall be LIBOR as in effect on that
Interest Determination Date.

     The interest rate on this Note will in no event be higher than the maximum rate permitted by
New York law as the same may be modified by United States law of general application.

     All percentages resulting from any calculation on the Notes will be rounded to the nearest one
hundred-thousandth of a percentage point, with five-one millionths of a percentage point rounded
upwards. All dollar amounts used in or resulting from any calculation on the Notes will be rounded
to the nearest cent, with one-half cent being rounded upwards.

     In connection with the issuance of the Notes, the Issuer has entered into a Calculation Agent
Agreement dated as of September 24, 2007 (as the same may be amended or supplemented from time to
time and including any successor agreement thereto, the “Calculation Agreement”) with The Bank of
New York Trust Company, N.A., as calculation agent (herein called the “Calculation Agent”, which
term includes any successor thereto under the Calculation Agreement). All calculations made by the
Calculation Agent for the purposes of calculating interest on the Notes shall be conclusive and
binding on the Holders and on the Issuer, absent manifest error. The Issuer covenants and agrees
that, so long as any Note remains Outstanding (as defined in the Indenture referred to below),
there shall at all times be a Calculation Agent for the purpose of the Notes. In the event of the
Calculation Agent being unable or unwilling to continue to act as the Calculation Agent for the
Notes or in the case of the Calculation Agent failing duly to establish the rate of interest on the
Notes for any Interest Period, the Issuer shall appoint another bank of recognized standing in the
United States as Calculation Agent. The Issuer may not remove the Calculation Agent without a
successor having been

 

 

appointed as aforesaid. The Calculation Agent shall determine the interest rate on the Notes
as of each Interest Determination Date.

     This Note is one of a duly authorized issue of Securities of the Issuer issued under and
pursuant to an Indenture dated as of April 1, 1986 (the “Original Indenture”), as amended and
supplemented by a First Supplemental Indenture thereto dated as of February 15, 1991 (the “First
Supplemental Indenture”), a Second Supplemental Indenture thereto dated as of February 1, 1993 (the
“Second Supplemental Indenture”), a Third Supplemental Indenture thereto dated as of October 22,
2001 (the “Third Supplemental Indenture”), and a Fourth Supplemental Indenture thereto dated as of
March 12, 2002 (the “Fourth Supplemental Indenture”; the Original Indenture, as amended and
supplemented by the First Supplemental Indenture, the Second Supplemental Indenture, the Third
Supplemental Indenture, the Fourth Supplemental Indenture and any other indentures supplemental
thereto, is hereinafter called the “Indenture”), between the Issuer and The Bank of New York Trust
Company, N.A., as successor trustee (herein called the “Trustee”, which term includes any successor
trustee under the Indenture) to JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank and
Chemical Bank), to which Indenture and all indentures supplemental thereto reference is hereby made
for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Issuer and the Holders of the Securities. The Securities may be
issued in one or more series, which different series may be issued in various aggregate principal
amounts, may mature at different times, may bear interest (if any) at different rates, may be
subject to different redemption provisions (if any), may be subject to different sinking, purchase
or analogous funds (if any) and may otherwise vary as in the Indenture provided. This Security is
one of the series of Securities designated on the face hereof (the “Notes”).

     The Notes are not subject to redemption at the option of the Issuer at any time prior to the
final maturity date.

     In case an Event of Default (as defined in the Indenture) with respect to the Notes shall have
occurred and be continuing, the principal hereof and accrued and unpaid interest hereon may be
declared, and upon such declaration shall become, due and payable, in the manner, with the effect
and subject to the conditions provided in the Indenture.

     The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Securities at the time
Outstanding of all series to be affected (voting as one class), evidenced as in the Indenture
provided, to execute supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in
any manner the rights of the Holders of the Securities of each such series; provided, that
no such supplemental indenture shall, among other things, (i) extend the final maturity of any
Security, or reduce the principal amount thereof or reduce the rate or extend the time of payment
of any interest thereon, or reduce any amount payable on the redemption thereof, or make the
principal thereof or the interest thereon payable in any coin or currency other than that provided
in the Securities or in accordance with the terms thereof, or impair or affect the rights of any
Holder to institute suit for the payment thereof, without the consent of the Holder of each
Security so affected, or (ii) reduce the aforesaid percentage of Securities the Holders of which
are required to consent to any such supplemental indenture without the consent of the Holder of
each Security so affected. It is also provided in the Indenture that, with respect to certain
defaults or Events of Default, prior to any declaration accelerating the maturity of the Securities
of any series, the Holders of a majority in aggregate principal amount of the Outstanding
Securities of such series (or, in the case of certain defaults or Events of Default, all or certain
series of the Securities) may on behalf of the Holders of all the Securities of such series (or all
or certain series of the Securities, as the case may be) waive any such past default or Event of
Default and its consequences. The preceding sentence shall not, however, apply to a default or
Event of Default in respect of the payment of the principal of or premium, if any, or interest on
any of the Securities or a default or Event of Default in respect of a covenant or provision of the
Indenture which cannot be modified or amended without the consent of the Holder of each Security
affected. Any such consent or waiver by the Holder of this Note (unless revoked as provided in the
Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and

 

 

owners of this Note and any Notes which may be issued in exchange or substitution herefor or
on registration of transfer hereof, irrespective of whether or not any notation thereof is made
upon this Note or such other Notes.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and premium, if any, and interest on this Note in the manner, at the respective times,
at the rate and in the coin or currency herein prescribed.

     The Notes are issuable in registered form without coupons in denominations of $2,000 and any
integral multiple of $1,000 in excess thereof. Notes may be exchanged for a like aggregate
principal amount of Notes of other authorized denominations upon surrender of the Notes to be
exchanged at the agency of the Issuer maintained for that purpose in the Borough of Manhattan, The
City of New York in the manner and subject to the limitations provided in the Indenture, without
charge except for any tax or other governmental charge that may be imposed in connection therewith.

     The Notes are not subject to any sinking fund.

     Upon due presentment for registration of transfer of this Note at the agency of the Issuer
maintained for that purpose in the Borough of Manhattan, The City of New York, a new Note or Notes
of authorized denominations for an equal aggregate principal amount will be issued to the
transferee in exchange therefor, subject to the limitations provided in the Indenture, without
charge except for any tax or other governmental charge that may be imposed in connection therewith.

     The Issuer, the Trustee and any authorized agent of the Issuer or the Trustee may deem and
treat the registered Holder hereof as the absolute owner of this Note (whether or not this Note
shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the
purpose of receiving payment of, or on account of, the principal hereof and premium, if any, and,
subject to the provisions of the first paragraph hereof, interest hereon and for all other
purposes, and neither the Issuer nor the Trustee nor any authorized agent of the Issuer or the
Trustee shall be affected by any notice to the contrary.

     No recourse under or upon any obligation, covenant or agreement of the Issuer in the Indenture
or in any Note, or because of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, officer or director, as such, of the Issuer or of any successor entity,
either directly or through the Issuer or any successor entity, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released by the acceptance
hereof and as part of the consideration for the issue hereof.

     This Note shall be governed by and construed in accordance with the laws of the State of New
York, except as may otherwise be required by mandatory provisions of law.

     Terms used in this Note which are defined in the Indenture shall have the respective meanings
assigned thereto in the Indenture.

     The Indenture contains provisions whereby the Issuer may be discharged from its obligations
with respect to the Notes, subject to exceptions, if the Issuer deposits with the Trustee cash or
U.S. Government Obligations in the amount and in the manner, and satisfies certain other
conditions, as in the Indenture provided.

     This Note shall not be valid or obligatory for any purpose until the certificate of
authentication hereon shall have been signed by or on behalf of the Trustee under the Indenture by
manual signature of an authorized signatory of the Trustee.

 

 

Offer to Purchase Upon Change of Control Triggering Event

     If a Change of Control Triggering Event occurs, the Issuer will make an offer (the “Change of
Control Offer”) to each Holder of Notes to repurchase (at such Holder’s option) all or any part (in
a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof) of such Holder’s
Notes on the terms described below. In the Change of Control Offer, the Issuer will offer payment
in cash equal to 101% of the principal amount of the Notes repurchased, plus accrued and unpaid
interest, if any, on the Notes (or portions thereof) repurchased to, but excluding, the date of
repurchase (the “Change of Control Payment”); provided that, notwithstanding the foregoing,
payments of interest on the Notes that are due and payable on any Interest Payment Dates falling on
or prior to such a date of repurchase (other than an Interest Payment Date falling on the final
maturity date of the Notes) will be payable to the Holders of those Notes registered as such at the
close of business on the relevant record dates in accordance with their terms and the terms of the
Indenture. Within 30 days following any Change of Control Triggering Event, the Issuer will mail
(or cause to be mailed) a notice (the “Change of Control Purchase Notice”) to all Holders of Notes
(with a copy to the Trustee) describing the transaction or transactions constituting the Change of
Control Triggering Event and offering to repurchase the Notes on the date specified in such notice,
which date will be a business day no earlier than 30 days and no later than 60 days after the date
such notice is mailed (the “Change of Control Payment Date”).

     Holders electing to have a Note or portion thereof repurchased pursuant to a Change of Control
Offer will be required to surrender the Note (which, in the case of Notes in book entry form, may
be by book entry transfer) to the Trustee (or to such other agent as may be appointed by the Issuer
for such purpose) at the address specified in the applicable Change of Control Purchase Notice
prior to the close of business on the business day immediately preceding the applicable Change of
Control Payment Date and to comply with other procedures set forth in such Change of Control
Purchase Notice. As used in the preceding sentence and in the last sentence of the preceding
paragraph, the term “business day” means any day, other than a Saturday or Sunday, that is neither
a legal holiday nor a day on which commercial banks are authorized or required by law, regulation
or executive order to close in The City of New York.

     On any Change of Control Payment Date, the Issuer will, to the extent lawful:

	 	(1)	 	accept for payment all Notes or portions of Notes properly tendered pursuant to
the Change of Control Offer;
	 
	 	(2)	 	deposit with the Trustee (if the Trustee is acting as paying agent for the
Notes) or any other duly appointed paying agent for the Notes an amount equal to the
Change of Control Payment in respect of all Notes or portions of Notes properly
tendered; and
	 
	 	(3)	 	deliver the repurchased Notes or cause the repurchased Notes to be delivered to
the Trustee for cancellation, accompanied by an Officers’ Certificate stating the
aggregate principal amount of repurchased Notes and that all conditions precedent
provided for in the Notes and the Indenture relating to such Change of Control Offer
and the repurchase of Notes by the Issuer pursuant thereto have been complied with.

Interest on Notes and portions of Notes duly tendered for repurchase pursuant to a Change of
Control Offer will cease to accrue on and after the applicable Change of Control Payment Date,
unless the Issuer shall have failed to accept such Notes and such portions of Notes for payment,
failed to deposit the total Change of Control Payment in respect thereof or failed to deliver the
Officers’ Certificate, all as required by, and in accordance with, the immediately preceding
sentence.

     The Issuer will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of Notes as a result of a Change of Control Triggering
Event. To the extent that the provisions of any such securities laws or regulations conflict with
the Change of Control Offer provisions of

 

 

the Notes, the Issuer shall comply with those securities laws and regulations and shall not be
deemed to have breached its obligations under the Change of Control Offer provisions of the Notes
by virtue of such conflict.

     The Issuer will not be required to make a Change of Control Offer upon the occurrence of a
Change of Control Triggering Event if a third party makes such an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the Issuer and the third
party purchases all Notes properly tendered under its offer and delivers the repurchased Notes or
causes the repurchased Notes to be delivered to the Trustee for cancellation on the applicable
Change of Control Payment Date. In addition, the Issuer will not repurchase any Notes pursuant to
a Change of Control Offer if there has occurred and is continuing on the applicable Change of
Control Payment Date an Event of Default under the Indenture (other than an Event of Default
resulting from the Issuer’s failure to comply with any of the provisions of the Notes or the
Indenture relating to such Change of Control Offer or the repurchase of Notes pursuant thereto,
including, without limitation, any default in payment of the Change of Control Payment), including
Events of Default arising with respect to other series of Securities outstanding under the
Indenture.

     The foregoing Change of Control provisions of the Notes shall cease to be applicable (and any
failure of the Issuer to comply therewith shall not constitute an Event of Default) if (i) the
Indenture shall have ceased to be of further effect with respect to the Notes pursuant to Section
10.1(A) of the Indenture (“satisfaction and discharge”), or (ii) the Issuer shall be deemed to have
paid and discharged the entire indebtedness on all of the Notes pursuant to Section 10.1(B) of the
Indenture (“defeasance”) (it being understood that, in addition to the other conditions to
defeasance set forth in the Indenture, any such defeasance shall not be effective until the 121st
day after the date of deposit referred to in subparagraph (a) of Section 10.1(B) of the Indenture),
and, in the case of both clause (i) and (ii) of this sentence, the Issuer shall have satisfied the
conditions set forth in the Indenture to such satisfaction and discharge or such defeasance, as the
case may be, and (without limitation to the foregoing) shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel (each of which comply with Section 11.5 of the
Indenture) each to the effect that all conditions precedent to such satisfaction and discharge or
defeasance, as the case may be, provided for in the Indenture have been complied with.

     For purposes of the provisions set forth under this caption “Offer to Purchase Upon Change of
Control Triggering Event,” the following terms have the respective meanings specified below:

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated) in the equity of such Person (including,
without limitation, (i) with respect to a corporation, common stock, preferred stock and any other
capital stock, (ii) with respect to a partnership, partnership interests (whether general or
limited), and (iii) with respect to a limited liability company, limited liability company
interests).

     “Change of Control” means the occurrence of any of the following: (a) the consummation of any
transaction (including, without limitation, any merger or consolidation) resulting in any “person”
(as that term is used in Section 13(d)(3) of the Exchange Act) (other than the Issuer or any of its
subsidiaries) becoming the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act), directly or indirectly, of more than 50% of the Issuer’s outstanding Voting Stock or
other Voting Stock into which the Issuer’s Voting Stock is reclassified, consolidated, exchanged or
changed, measured by voting power rather than number of shares; (b) the direct or indirect sale,
transfer, conveyance or other disposition (other than by way of merger or consolidation), in one
transaction or a series of related transactions, of all or substantially all of the properties or
assets of the Issuer and its subsidiaries, taken as a whole, to one or more Persons (other than the
Issuer or any of it subsidiaries); or (c) the first day on which a majority of the members of the
Issuer’s board of directors are not Continuing Directors. Notwithstanding the foregoing, a
transaction will not be deemed to be a Change of Control if (1) the Issuer becomes a direct or
indirect wholly-owned subsidiary of a holding company and (2)(y) the direct or indirect holders of
the Voting Stock of such holding company immediately following that transaction are substantially
the same as the holders of the Issuer’s Voting Stock immediately prior to that transaction or (z)
immediately following that transaction no “person” (as that term is used in Section 13(d)(3)

 

 

of the Exchange Act), other than a holding company satisfying the requirements of this
sentence, is the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
directly or indirectly, of more than 50% of the outstanding Voting Stock of such holding company,
measured by voting power rather than number of shares. As used in this paragraph, the term
“subsidiary” means, with respect to any Person (the “Parent”), any other Person at least a majority
of whose outstanding Voting Stock, measured by voting power rather than number of shares, is owned,
directly or indirectly, at the date of determination by the Parent and/or one or more other
subsidiaries of the Parent.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Rating Event.

     “Continuing Directors” means, as of any date of determination, any member of the Issuer’s
board of directors who (a) was a member of the Issuer’s board of directors on the date the Notes
were originally issued or (b) was nominated for election, elected or appointed to the Issuer’s
board of directors with the approval of a majority of the Continuing Directors who were members of
the Issuer’s board of directors at the time of such nomination, election or appointment (either by
a specific vote or by approval of the Issuer’s proxy statement in which such member was named as a
nominee for election as a director, without objection to such nomination). If at any time the
Issuer is not a corporation, then references in the foregoing sentence to members of its board of
directors shall be deemed to include, as applicable, the members of any other governing body
thereof performing a similar function.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
thereto.

     “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from
any replacement Rating Agency or Rating Agencies selected by the Issuer.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Rating Agencies” means (a) each of Moody’s and S&P; and (b) if either of Moody’s or S&P
ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons
outside of the Issuer’s control, a “nationally recognized statistical rating organization” (within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act) selected by the Issuer (as
certified by a Board Resolution delivered to the Trustee) as a replacement for Moody’s or S&P, or
both of them, as the case may be.

     “Rating Event” means the rating on the Notes is lowered by each of the Rating Agencies and the
Notes are rated below an Investment Grade Rating by each of the Rating Agencies on any day within
the 60-day period (which 60-day period shall be extended so long as the rating of the Notes is
under publicly announced consideration for a possible downgrade by either of the Rating Agencies)
after the earlier of (a) the occurrence of a Change of Control and (b) public notice of the
occurrence of a Change of Control or the Issuer’s intention to effect a Change of Control;
provided, however, that a Rating Event otherwise arising by virtue of a particular reduction in
rating will not be deemed to have occurred in respect of a particular Change of Control (and thus
will not be deemed a Rating Event for purposes of the definition of “Change of Control Triggering
Event”) if each Rating Agency making the reduction in rating to which this definition would
otherwise apply does not announce or publicly confirm or inform the Trustee in writing at the
Issuer’s request that the reduction was the result, in whole or in part, of any event or
circumstance comprised of or arising as a result of, or in respect of, the applicable Change of
Control (whether or not the applicable Change of Control has occurred at the time of the Rating
Event).

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

     “Voting Stock” means, with respect to any specified “person” (as that term is used in Section
13(d)(3) of the Exchange Act) as of any date, any Capital Stock of such person that is at the time
entitled to vote

 

 

generally in the election of the board of directors of such person or, if such person is not a
corporation, any governing body thereof performing a similar function.

     As used under this caption “Offer to Purchase Upon Change of Control Triggering Event,” all
references to sections of the Exchange Act and to rules and regulations under the Exchange Act
shall include any successor provisions thereto.

     The Company will promptly pay, or will cause the Trustee (if the Trustee is acting as paying
agent for the Notes) or another duly appointed paying agent for the Notes to promptly pay (by
application of funds deposited by the Company), to each Holder of Notes (or portions thereof) duly
tendered and accepted for payment by the Company pursuant to a Change of Control Offer, the Change
of Control Payment for such Notes, and the Company will cause the Trustee to promptly authenticate
and mail (or deliver by book entry transfer, as applicable) to each such Holder a new Note equal in
principal amount to the unpurchased portion, if any, of the Notes surrendered by such Holder;
provided that each such new Note will be in a principal amount of $2,000 or an integral multiple of
$1,000 in excess thereof. The Company shall, or shall cause the Trustee to, promptly mail (or
cause to be delivered by book entry transfer, as applicable) to the Holders thereof any Notes not
so accepted for payment by the Company.

     For purposes of clarity, the Company confirms that (1) the provisions set forth under this caption
“Offer to Purchase Upon Change of Control Triggering Event” constitute a covenant of the Company
under the Indenture in respect of, and for the benefit of the Holders of, the Notes, (2) for
purposes of Section 5.1(d), Section 5.10, Section 8.2 and any other applicable sections of the
Indenture, the Notes shall be deemed to be the only series of Securities affected by such covenant
or by any default in the performance, or breach, of such covenant or any default or Event of
Default resulting therefrom or by any change therein or amendment thereto or waiver thereof, (3)
such covenant shall constitute a “right of repayment at the option of the Securityholder” for
purposes of Section 8.2 of the Indenture and, without limitation to the foregoing, no supplemental
indenture entered into pursuant to Article Eight of the Indenture shall reduce the amount payable
in respect of, or extend the time for payment of, any Notes pursuant to such covenant without the
consent of the Holder of each Note so affected and (4) any failure by the Company to pay all
or any part of the Change of Control Payment as and when required pursuant to such covenant shall
constitute an Event of Default with respect to the Notes under Section 5.1(b) of the Indenture.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, Weyerhaeuser Company has caused this instrument to be signed and its
corporate seal attested by the manual or facsimile signatures of its duly authorized officers and
has caused its corporate seal (or a facsimile thereof) to be affixed hereunto or imprinted hereon.

Dated: September 24, 2007

	 	 	 	 	 
	 
[SEAL]	WEYERHAEUSER COMPANY

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Attest:

	 	 	 
	 

Name:

	 	 
	Title:
	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated herein and referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.,

as Trustee

 	 
	 	By:  	
 	 
	 	 	    Authorized Signatory 	 
	 	 	 	 
	 

 

 

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 	 	 	 	 
	TEN COM—as tenants in common         
       UNIF GIFT MIN ACT — 	 	                     
         	 Custodian	                   
        
	TEN ENT—as tenants by the entireties	 	(Cust)	 	 	 	(Minor)
	JT TEN—as joint tenants with right of survivorship	 	Under Uniform Gifts to Minors
	and not as tenants in common	 	Act          
               
                     
            
   
	 

	 	 	 	 	 	(State)	 	 

Additional abbreviations may also be used though not in the above list.

 

FOR VALUE RECEIVED, the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

      

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

 

the within security and all rights thereunder, hereby irrevocably constituting and appointing

	 	 	 
	 

	 	Attorney
	 

to transfer said security on the books of the Issuer with full power of substitution in the
premises.

	 

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Signed:	 	 
	 

	 	 
	 	 	 	 	 	 

Notice: The signature to this assignment must correspond with the
name as it appears upon the face of the within security in every
particular, without alteration or enlargement or any change
whatever.

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