Document:

Exhibit

EXHIBIT 10.1

CATCHMARK TIMBER TRUST, INC.
2017 INCENTIVE PLAN

Article 1 
PURPOSE
		
	1.1
	GENERAL.    The purpose of the CatchMark Timber Trust, Inc. 2017 Incentive Plan (the “Plan”) is to promote the success, and enhance the value, of CatchMark Timber Trust, Inc. (the “Company”), by linking the personal interests of employees, officers, directors and consultants of the Company or any Affiliate (as defined below) to those of Company stockholders and by providing such persons with an incentive for outstanding performance. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of employees, officers, directors and consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. Accordingly, the Plan permits the grant of incentive awards from time to time to selected employees, officers, directors and consultants of the Company and its Affiliates. 

Article 2     
DEFINITIONS
		
	2.1
	DEFINITIONS.    When a word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a sentence, the word or phrase shall generally be given the meaning ascribed to it in this Section or in Section 1.1 unless a clearly different meaning is required by the context. The following words and phrases shall have the following meanings: 

		
	(a)
	“Affiliate” means (i) any Subsidiary or Parent, or (ii) an entity that directly or through one or more intermediaries controls, is controlled by or is under common control with, the Company, as determined by the Committee. 

		
	(b)
	“Award” means an award of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Deferred Stock Units, Performance Awards, Other Stock-Based Awards, or any other right or interest relating to Stock or cash, granted to a Participant under the Plan. 

		
	(c)
	“Award Certificate” means a written document, in such form as the Committee prescribes from time to time, setting forth the terms and conditions of an Award. Award Certificates may be in the form of individual award agreements or certificates or a program document describing the terms and provisions of an Award or series of Awards under the Plan. The Committee may provide for the use of electronic, internet or other non-paper Award Certificates, and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by a Participant. 

		
	(d)
	“Beneficial Owner” shall have the meaning given such term in Rule 13d-3 of the General Rules and Regulations under the 1934 Act. 

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

		
	(f)
	“Cause” as a reason for a Participant’s termination of employment shall have the meaning assigned such term in the employment, severance or similar agreement, if any, between such Participant and the Company or an Affiliate, provided, however that if there is no such employment, severance or similar agreement in which such term is defined, and unless otherwise defined in the applicable Award Certificate, “Cause” shall mean any of the following acts by the Participant, as determined by the Committee or the Board: (i) the willful and continued failure of the Participant to perform his or her required duties as an officer or employee of the Company or any Affiliate, (ii) any action by the Participant that involves willful misfeasance or gross negligence, (iii) the requirement of or direction by a federal or state regulatory agency that has jurisdiction over the Company or any Affiliate to terminate the employment of the Participant, (iv) the conviction of the Participant of the commission of any criminal offense that involves dishonesty or breach of trust, or (v) any intentional breach by the Participant of a material term, condition or covenant of any agreement between the Participant and the Company or any Affiliate. 

		
	(g)
	“Change in Control” means and includes the occurrence of any one of the following events but shall specifically exclude a Public Offering: 

		
	(i)
	individuals who, on the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any person becoming a director after the Effective Date and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors (“Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director; or 

		
	(ii)
	any person becomes a Beneficial Owner, directly or indirectly, of either (A) 50% or more of the then-outstanding shares of common stock of the Company (“Company Common Stock”) or (B) securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”); provided, however, that for purposes of this subsection (ii), the following acquisitions of Company Common Stock or Company Voting Securities shall not constitute a Change in Control: (w) an acquisition directly from the Company, (x) an acquisition by the Company or a Subsidiary of the Company, (y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary of the Company, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (iii) below); or 

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	(iii)
	the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or a Subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the outstanding Company Common Stock and outstanding Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition 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, as the case may be, of the corporation resulting from such Reorganization, Sale or Acquisition (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Corporation”) in substantially the same proportions as their ownership, immediately prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person (other than (x) the Company or any Subsidiary of the Company, (y) the Surviving Corporation or its ultimate parent corporation, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing is the beneficial owner, directly or indirectly, of 50% or more of the total common stock or 50% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Corporation, and (C) at least a majority of the members of the board of directors of the Surviving Corporation were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or 

		
	(iv)
	approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

		
	(h)
	“Code” means the Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision. 

		
	(i)
	“Committee” means the committee of the Board described in Article 4. 

		
	(j)
	“Company” means CatchMark Timber Trust, Inc., a Maryland corporation, or any successor corporation. 

		
	(k)
	“Continuous Service” means the absence of any interruption or termination of service as an employee, officer, director or consultant of the Company or any 

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Affiliate, as applicable; provided, however, that for purposes of an Incentive Stock Option “Continuous Service” means the absence of any interruption or termination of service as an employee of the Company or any Parent or Subsidiary, as applicable, pursuant to applicable tax regulations. Continuous Service shall not be considered interrupted in the following cases: (i) a Participant transfers employment between the Company and an Affiliate or between Affiliates, (ii) in the discretion of the Committee as specified at or prior to such occurrence, in the case of a spin-off, sale or disposition of the Participant’s employer from the Company or any Affiliate, (iii) a Participant transfers from being an employee of the Company or an Affiliate to being a director of the Company or of an Affiliate, or vice versa, (iv) in the discretion of the Committee, a Participant transfers from being an employee of the Company or an Affiliate to being a consultant to the Company or of an Affiliate, or vice versa, (v) in the discretion of the Committee as specified at or prior to such occurrence, a Participant transfers from being an employee of the Company or an Affiliate to being a consultant to the Company or an Affiliate, or vice versa, or (vi) any leave of absence authorized in writing by the Company prior to its commencement; provided, however, that for purposes of Incentive Stock Options, no such leave may exceed 90 days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 91st day of such leave any Incentive Stock Option held by the Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. Whether military, government or other service or other leave of absence shall constitute a termination of Continuous Service shall be determined in each case by the Committee at its discretion, and any determination by the Committee shall be final and conclusive; provided, however, that for purposes of any Award that is subject to Code Section 409A, the determination of a leave of absence must comply with the requirements of a “bona fide leave of absence” as provided in Treas. Reg. Section 1.409A-1(h). 
		
	(l)
	“Covered Employee” means a covered employee as defined in Code Section 162(m)(3). 

		
	(m)
	“Deferred Stock Unit” means a right granted to a Participant under Article 9 to receive Shares (or the equivalent value in cash or other property if the Committee so provides) at a future time as determined by the Committee, or as determined by the Participant within guidelines established by the Committee in the case of voluntary deferral elections. 

		
	(n)
	“Disability” means the inability of the Participant, as reasonably determined by the Company, to perform the essential functions of his or her regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which has lasted (or can reasonably be expected to last) for a period of six (6) consecutive months.  .

		
	(o)
	“Dividend Equivalent” means a right granted to a Participant under Article 12. 

		
	(p)
	“Effective Date” has the meaning assigned such term in Section 3.1. 

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	(q)
	“Eligible Participant” means an employee, officer, director or consultant of the Company or any Affiliate. 

		
	(r)
	“Exchange” means any national securities exchange on which the Stock may from time to time be listed or traded. 

		
	(s)
	“Fair Market Value,” on any date, means (i) if the Stock is listed on a securities exchange, the closing sales price on such exchange on such date or, in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on a securities exchange, the mean between the bid and offered prices as quoted by the applicable interdealer quotation system for such date, provided that if the Stock is not quoted on an interdealer quotation system or it is determined that the fair market value is not properly reflected by such quotations, Fair Market Value will be determined by such other method as the Committee determines in good faith to be reasonable and in compliance with Code Section 409A. 

		
	(t)
	“Full-Value Award” means an Award other than in the form of an Option or SAR, and which is settled by the issuance of Stock (or at the discretion of the Committee, settled in cash valued by reference to Stock value). 

		
	(u)
	“Grant Date” of an Award means the first date on which all necessary corporate action has been taken to approve the grant of the Award as provided in the Plan, or such later date as is determined and specified as part of that authorization process. Notice of the grant shall be provided to the grantee within a reasonable time after the Grant Date. 

		
	(v)
	“Incentive Stock Option” means an Option that is intended to be an incentive stock option and meets the requirements of Section 422 of the Code or any successor provision thereto. 

		
	(w)
	“Independent Directors” means those members of the Board of Directors who qualify at any given time as (a) an “independent” director under the applicable rules of each Exchange on which the Shares are listed, (b) a “non-employee” director under Rule 16b-3 of the 1934 Act, and (c) an “outside” director under Section 162(m) of the Code. 

		
	(x)
	“Non-Employee Director” means a director of the Company who is not a common law employee of the Company or an Affiliate. 

		
	(y)
	“Nonstatutory Stock Option” means an Option that is not an Incentive Stock Option. 

		
	(z)
	“Option” means a right granted to a Participant under Article 7 of the Plan to purchase Stock at a specified price during specified time periods. An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option. 

		
	(aa)
	“Other Stock-Based Award” means a right, granted to a Participant under Article 13, that relates to or is valued by reference to Stock or other Awards relating to Stock. 

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	(bb)
	“Parent” means a corporation, limited liability company, partnership or other entity which owns or beneficially owns a majority of the outstanding voting stock or voting power of the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Parent shall have the meaning set forth in Section 424(e) of the Code. 

		
	(cc)
	“Participant” means an Eligible Participant who has been granted an Award under the Plan; provided that in the case of the death of a Participant, the term “Participant” refers to a beneficiary designated pursuant to Section 14.4 or the legal guardian or other legal representative acting in a fiduciary capacity on behalf of the Participant under applicable state law and court supervision. 

		
	(dd)
	“Performance Award” means any award granted under the Plan pursuant to Article 10. 

		
	(ee)
	“Person” means any individual, entity or group, within the meaning of Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) or 14(d)(2) of the 1934 Act. 

		
	(ff)
	“Plan” means the CatchMark Timber Trust, Inc. 2017 Incentive Plan, as amended from time to time. 

		
	(gg)
	“Prior Plan” means the Amended and Restated CatchMark Timber Trust, Inc. 2005 Long-Term Incentive Plan.

		
	(hh)
	“Qualified Performance-Based Award” means an Award that is either (i) intended to qualify for the Section 162(m) Exemption and is made subject to performance goals based on Qualified Business Criteria as set forth in Section 11.2, or (ii) an Option or SAR having an exercise price equal to or greater than the Fair Market Value of the underlying Stock as of the Grant Date. 

		
	(ii)
	“Qualified Business Criteria” means one or more of the Business Criteria listed in Section 11.2 upon which performance goals for certain Qualified Performance-Based Awards may be established by the Committee. 

		
	(jj)
	“Restricted Stock” means Stock granted to a Participant under Article 9 that is subject to certain restrictions and to risk of forfeiture. 

		
	(kk)
	“Restricted Stock Unit” means the right granted to a Participant under Article 9 to receive shares of Stock (or the equivalent value in cash or other property if the Committee so provides) in the future, which right is subject to certain restrictions and to risk of forfeiture. 

		
	(ll)
	“Section 162(m) Exemption” means the exemption from the limitation on deductibility imposed by Section 162(m) of the Code that is set forth in Section 162(m)(4)(C) of the Code or any successor provision thereto. 

		
	(mm)
	“Shares” means shares of the Company’s Class A Common Stock, $0.01 par value. If there has been an adjustment or substitution pursuant to Section 15.1, the term “Shares” shall also include any shares of stock or other securities that are substituted for Shares or into which Shares are adjusted pursuant to Section 15.1. 

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	(nn)
	“Stock” means the Company’s Class A Common Stock, $0.01 par value and such other securities of the Company as may be substituted for Stock pursuant to Article 15.  

		
	(oo)
	“Stock Appreciation Right” or “SAR” means a right granted to a Participant under Article 8 to receive a payment equal to the difference between the Fair Market Value of a Share as of the date of exercise of the SAR over the base price of the SAR, all as determined pursuant to Article 8. 

		
	(pp)
	“Subsidiary” means any corporation, limited liability company, partnership or other entity, domestic or foreign, of which a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Subsidiary shall have the meaning set forth in Section 424(f) of the Code. 

		
	(qq)
	“1933 Act” means the Securities Act of 1933, as amended from time to time. 

		
	(rr)
	“1934 Act” means the Securities Exchange Act of 1934, as amended from time to time. 

Article 3     
EFFECTIVE TERM OF PLAN
		
	3.1
	EFFECTIVE DATE.    The Plan shall be effective as of the date it is approved by the stockholders of the Company (the “Effective Date”). 

		
	3.2
	TERMINATION OF PLAN.    Unless earlier terminated as provided herein, the Plan shall continue in effect until the date of the 2027 stockholders’ meeting or, if the stockholders approve an amendment to the Plan that increases the number of Shares subject to the Plan, the tenth anniversary of the date of such approval. The termination of the Plan on such date shall not affect the validity of any Award outstanding on the date of termination, which shall continue to be governed by the applicable terms and conditions of the Plan. Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten (10) years after the Effective Date. 

Article 4     
ADMINISTRATION
		
	4.1
	COMMITTEE.    The Plan shall be administered by a Committee appointed by the Board (which Committee shall consist of at least two directors) or, at the discretion of the Board from time to time, the Plan may be administered by the Board. Unless and until changed by the Board, the Compensation Committee of the Board is designated as the Committee to administer the Plan.  It is intended that at least two of the directors appointed to serve on the Committee shall be Independent Directors and that any such members of the Committee who do not so qualify shall abstain from participating in any decision to make or administer Awards that are made to Eligible Participants who at the time of consideration for such Award (i) are persons subject to the short-swing profit rules of Section 16 of the 1934 Act, or (ii) are reasonably anticipated to become Covered Employees during the term of the Award. However, the mere fact that a Committee member shall fail to qualify as an Independent Director or shall fail to abstain from such action shall not invalidate any Award made by the Committee which Award is otherwise validly made under the Plan. The members of the Committee shall be appointed by, and may be changed at any time and from time to time in the discretion of, 

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the Board. The Board may reserve to itself any or all of the authority and responsibility of the Committee under the Plan or may act as administrator of the Plan for any and all purposes. To the extent the Board has reserved any authority and responsibility or during any time that the Board is acting as administrator of the Plan, it shall have all the powers and protections of the Committee hereunder, and any reference herein to the Committee (other than in this Section 4.1) shall include the Board. To the extent any action of the Board under the Plan conflicts with actions taken by the Committee, the actions of the Board shall control. 
		
	4.2
	ACTION AND INTERPRETATIONS BY THE COMMITTEE.    For purposes of administering the Plan, the Committee may from time to time adopt rules, regulations, guidelines and procedures for carrying out the provisions and purposes of the Plan and make such other determinations, not inconsistent with the Plan, as the Committee may deem appropriate. The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the extent it deems necessary to carry out the intent of the Plan. The Committee’s interpretation of the Plan, any Awards granted under the Plan, any Award Certificate and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Affiliate, the Company’s or an Affiliate’s independent certified public accountants, Company counsel or any executive compensation consultant or other professional retained by the Company or the Committee to assist in the administration of the Plan. No member of the Committee will be liable for any good faith determination, act or omission in connection with the Plan or any Award. 

		
	4.3
	AUTHORITY OF COMMITTEE.    Except as provided in Section 4.1 hereof, the Committee has the exclusive power, authority and discretion to: 

		
	(a)
	grant Awards; 

		
	(b)
	designate Participants; 

		
	(c)
	determine the type or types of Awards to be granted to each Participant; 

		
	(d)
	determine the number of Awards to be granted and the number of Shares or dollar amount to which an Award will relate; 

		
	(e)
	determine the terms and conditions of any Award granted under the Plan; 

		
	(f)
	prescribe the form of each Award Certificate, which need not be identical for each Participant; 

		
	(g)
	decide all other matters that must be determined in connection with an Award; 

		
	(h)
	establish, adopt or revise any plan, program or policy for the grant of Awards as it may deem necessary or advisable, including but not limited to short-term incentive programs, and any special plan documents; 

		
	(i)
	establish, adopt or revise any rules, regulations, guidelines or procedures as it may deem necessary or advisable to administer the Plan; 

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	(j)
	make all other decisions and determinations that may be required under the Plan or as the Committee deems necessary or advisable to administer the Plan; 

		
	(k)
	amend the Plan or any Award Certificate as provided herein; and 

		
	(l)
	adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of the United States or any non-U.S. jurisdictions in which the Company or any Affiliate may operate, in order to assure the viability of the benefits of Awards granted to participants located in the United States or such other jurisdictions and to further the objectives of the Plan. 

Notwithstanding the foregoing, grants of Awards to non-employee directors hereunder shall be made only in accordance with the terms, conditions and parameters of a plan, program or policy for the compensation of non-employee directors as in effect from time to time, and the Committee may not make discretionary grants hereunder to non-employee directors. 
		
	4.4
	DELEGATION. 

		
	(a)
	Administrative Duties.    The Committee may delegate to one or more of its members or to one or more officers of the Company or an Affiliate or to one or more agents or advisors such administrative duties or powers as it may deem advisable, and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render advice with respect to any responsibility the Committee or such individuals may have under this Plan. 

		
	(b)
	Special Committee.    The Board may, by resolution, expressly delegate to a special committee, consisting of one or more directors who may but need not be officers of the Company, the authority, within specified parameters as to the number and terms of Awards, to (i) designate officers and/or employees of the Company or any of its Affiliates to be recipients of Awards under the Plan, and (ii) to determine the number of such Awards to be received by any such Participants; provided, however, that such delegation of duties and responsibilities to an officer of the Company may not be made with respect to the grant of Awards to eligible participants (a) who are subject to Section 16(a) of the 1934 Act at the Grant Date, or (b) who as of the Grant Date are reasonably anticipated to be become Covered Employees during the term of the Award. The acts of such delegates shall be treated hereunder as acts of the Board and such delegates shall report regularly to the Board and the Compensation Committee regarding the delegated duties and responsibilities and any Awards so granted. 

Article 5     
SHARES SUBJECT TO THE PLAN 
		
	5.1
	NUMBER OF SHARES.    Subject to adjustment as provided in Section 5.2 and Section 15.1, the aggregate number of Shares reserved and available for issuance pursuant to Awards granted under the Plan shall be 1,800,000, all of which may be granted as Incentive Stock Options.  From and after the Effective Date, no further awards shall be granted under the Prior Plan, and the Prior Plan shall remain in effect only so long as awards granted thereunder shall remain outstanding. 

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	5.2
	SHARE COUNTING.    Shares covered by an Award shall be subtracted from the Plan share reserve as of the Grant Date, but shall be added back to the Plan share reserve or otherwise treated in accordance with subsections (a) through (i) of this Section 5.2.

		
	(a)
	To the extent that an Award is canceled, terminates, expires, is forfeited or lapses for any reason, any unissued or forfeited Shares subject to the Award will be added back to the Plan share reserve and again be available for issuance pursuant to Awards granted under the Plan. 

		
	(b)
	Shares subject to Awards settled in cash will be added back to the Plan share reserve and again be available for issuance pursuant to Awards granted under the Plan. 

		
	(c)
	Shares withheld from an Award to satisfy tax withholding requirements will count against the number of Shares remaining available for issuance pursuant to Awards granted under the Plan, and Shares delivered by a participant to satisfy tax withholding requirements will not be added to the Plan share reserve. 

		
	(d)
	The full number of Shares subject to an Option shall count against the number of Shares remaining available for issuance pursuant to Awards granted under the Plan, even if the exercise price of an Option is satisfied through net-settlement or by delivering Shares to the Company (by either actual delivery or attestation) . 

		
	(e)
	The full number of Shares subject to a SAR shall count against the number of Shares remaining available for issuance pursuant to Awards made under the Plan (rather than the net number of Shares actually delivered upon exercise).

		
	(f)
	Substitute Awards granted pursuant to Section 14.12 of the Plan shall not count against the Shares otherwise available for issuance under the Plan under Section 5.1. 

		
	(g)
	Subject to applicable Exchange requirements, shares available under a stockholder-approved plan of a company acquired by the Company (as appropriately adjusted to Shares to reflect the transaction) may be issued under the Plan pursuant to Awards granted to individuals who were not employees of the Company or its Affiliates immediately before such transaction and will not count against the maximum share limitation specified in Section 5.1. 

		
	5.3
	STOCK DISTRIBUTED.    Any Stock distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open market. 

		
	5.4
	LIMITATION ON AWARDS.    Notwithstanding any provision in the Plan to the contrary (but subject to adjustment as provided in Article 15): 

		
	(a)
	Options.    The maximum number of Shares subject to Options granted under the Plan in any calendar year to any one Participant shall be 250,000. 

		
	(b)
	SARs.    The maximum number of Shares subject to Stock Appreciation Rights granted under the Plan in any calendar year to any one Participant shall be 150,000. 

		
	(c)
	Performance Awards.    With respect to any one calendar year (i) the maximum amount that may be paid to any one Participant for Performance Awards payable in 

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cash or property other than Shares shall be $3,000,000, and (ii) the maximum number of Shares that may be paid to any one Participant for Performance Awards payable in Stock shall be 500,000 Shares. For purposes of applying these limits in the case of multi-year performance periods, the amount of cash or property or number of Shares deemed paid with respect to any one 12-month period is the total amount payable or Shares earned for the performance period divided by the number of 12-month periods in the performance period. 
		
	5.5
	LIMITATION ON COMPENSATION FOR NON-EMPLOYEE DIRECTORS. With respect to any one calendar year, the aggregate compensation that may be granted to any non-employee director, including all meeting fees, cash retainers and retainers granted in the form of Awards, shall not exceed $350,000, or $500,000 in the case of a non-employee Chairman of the Board or Lead Director.  For purposes of such limit, the value of Awards will determined based on the aggregate Grant Date fair value of all awards issued to the director in such year (computed in accordance with applicable financial accounting rules).

Article 6     
ELIGIBILITY 
		
	6.1
	GENERAL.    Awards may be granted only to Eligible Participants. Incentive Stock Options may be granted only to Eligible Participants who are employees of the Company or a Parent or Subsidiary as defined in Section 424(e) and (f) of the Code. Eligible Participants who are service providers to an Affiliate may be granted Options or SARs under this Plan only if the Affiliate qualifies as an “eligible issuer of service recipient stock” within the meaning of §1.409A-1(b)(5)(iii)(E) of the final regulations under Code Section 409A. 

Article 7     
STOCK OPTIONS 
		
	7.1
	GENERAL.    The Committee is authorized to grant Options to Participants on the following terms and conditions: 

		
	(a)
	Exercise Price.    The exercise price per Share under an Option shall be determined by the Committee, provided that the exercise price for any Option (other than an Option issued as a substitute Award pursuant to Section 14.12) shall not be less than the Fair Market Value as of the Grant Date. 

		
	(b)
	Prohibition on Repricing.    Except as otherwise provided in Section 15.1, without the prior approval of stockholders of the Company: (i) the exercise price of an Option may not be reduced, directly or indirectly, (ii) an Option may not be cancelled in exchange for cash, other Awards or Options or SARs with an exercise or base price that is less than the exercise price of the original Option, and (iii) the Company may not repurchase an Option for value (in cash or otherwise) from a Participant if the current Fair Market Value of the Shares underlying the Option is lower than the exercise price per share of the Option. 

		
	(c)
	Time and Conditions of Exercise.    The Committee shall determine the time or times at which an Option may be exercised in whole or in part, subject to Section 7.1(e), and may include in the Award Certificate a provision that an Option that is 

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otherwise exercisable and has an exercise price that is less than the Fair Market Value of the Stock on the last day of its term will be automatically exercised on such final date of the term by means of a “net exercise,” thus entitling the optionee to Shares equal to the intrinsic value of the Option on such exercise date, less the number of Shares required for tax withholding. The Committee shall also determine the performance or other conditions, if any, that must be satisfied before all or part of an Option may be exercised or vested. 
		
	(d)
	Payment.    The Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment, and the methods by which Shares shall be delivered or deemed to be delivered to Participants. As determined by the Committee at or after the Grant Date, payment of the exercise price of an Option may be made, in whole or in part, in the form of (i) cash or cash equivalents, (ii) delivery (by either actual delivery or attestation) of previously-acquired Shares based on the Fair Market Value of the Shares on the date the Option is exercised, (iii) withholding of Shares from the Option based on the Fair Market Value of the Shares on the date the Option is exercised, (iv) broker-assisted market sales, or (iv) any other “cashless exercise” arrangement. 

		
	(e)
	Exercise Term.    Except for Nonstatutory Options granted to Participants outside the United States, no Option granted under the Plan shall be exercisable for more than ten years from the Grant Date. 

		
	(f)
	No Deferral Feature.    No Option shall provide for any feature for the deferral of compensation other than the deferral of recognition of income until the exercise or disposition of the Option. 

		
	(g)
	No Dividend Equivalents.    No Option shall provide for Dividend Equivalents. 

		
	7.2
	INCENTIVE STOCK OPTIONS.    The terms of any Incentive Stock Options granted under the Plan must comply with the requirements of Section 422 of the Code. Without limiting the foregoing, any Incentive Stock Option granted to a Participant who at the Grant Date owns more than 10% of the voting power of all classes of shares of the Company must have an exercise price per Share of not less than 110% of the Fair Market Value per Share on the Grant Date and an Option term of not more than five years. If all of the requirements of Section 422 of the Code (including the above) are not met, the Option shall automatically become a Nonstatutory Stock Option. 

Article 8     
STOCK APPRECIATION RIGHTS 
		
	8.1
	GRANT OF STOCK APPRECIATION RIGHTS.    The Committee is authorized to grant Stock Appreciation Rights to Participants on the following terms and conditions: 

		
	(a)
	Right to Payment.    Upon the exercise of a SAR, the Participant has the right to receive, for each Share with respect to which the SAR is being exercised, the excess, if any, of: 

		
	(1)
	The Fair Market Value of one Share on the date of exercise; over 

12

		
	(2)
	The base price of the SAR as determined by the Committee and set forth in the Award Certificate, which shall not be less than the Fair Market Value of one Share on the Grant Date. 

		
	(b)
	Prohibition on Repricing.    Except as otherwise provided in Section 15.1, without the prior approval of the stockholders of the Company, (i) the base price of a SAR may not be reduced, directly or indirectly, (ii) a SAR may not be cancelled in exchange for cash, other Awards, or Options or SARs with an exercise or base price that is less than the base price of the original SAR, and (iii) the Company may not repurchase a SAR for value (in cash or otherwise) from a Participant if the current Fair Market Value of the Shares underlying the SAR is lower than the base price per share of the SAR. 

		
	(c)
	Time and Conditions of Exercise.    The Committee shall determine the time or times at which a SAR may be exercised in whole or in part, and may include in the Award Certificate a provision that a SAR that is otherwise exercisable and has a base price that is less than the Fair Market Value of the Stock on the last day of its term will be automatically exercised on such final date of the term, thus entitling the holder to cash or Shares equal to the intrinsic value of the SAR on such exercise date, less the cash or number of Shares required for tax withholding. Except for SARs granted to Participants outside the United States, no SAR shall be exercisable for more than ten years from the Grant Date. 

		
	(d)
	No Deferral Feature.    No SAR shall provide for any feature for the deferral of compensation other than the deferral of recognition of income until the exercise or disposition of the SAR. 

		
	(e)
	No Dividend Equivalents.    No SAR shall provide for Dividend Equivalents. 

		
	(f)
	Other Terms.    All SARs shall be evidenced by an Award Certificate. Subject to the limitations of this Article 8, the terms, methods of exercise, methods of settlement, form of consideration payable in settlement (e.g., cash, Shares or other property), and any other terms and conditions of the SAR shall be determined by the Committee at the time of the grant and shall be reflected in the Award Certificate. 

Article 9     
RESTRICTED STOCK AND STOCK UNITS 
		
	9.1
	GRANT OF RESTRICTED STOCK AND STOCK UNITS.    The Committee is authorized to make Awards of Restricted Stock, Restricted Stock Units or Deferred Stock Units to Participants in such amounts and subject to such terms and conditions as may be selected by the Committee. An Award of Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be evidenced by an Award Certificate setting forth the terms, conditions, and restrictions applicable to the Award. 

		
	9.2
	ISSUANCE AND RESTRICTIONS.    Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be subject to such restrictions on transferability and other restrictions as the Committee may impose (including, for example, limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). These restrictions may lapse separately or in combination at such times, under such circumstances, in such installments, upon the satisfaction of performance goals or otherwise, as the Committee determines at the time of the grant of the Award or thereafter. 

13

Except as otherwise provided in an Award Certificate or any special Plan document governing an Award, a Participant shall have none of the rights of a stockholder with respect to Restricted Stock Units or Deferred Stock Units until such time as Shares of Stock are paid in settlement of such Awards. 
		
	9.3
	DIVIDENDS ON RESTRICTED STOCK.   Dividends accrued on shares of Restricted Stock before they are vested shall be credited by the Company to an account for the Participant and accumulated without interest until the date upon which the host Award becomes vested, and, in either case, any dividends accrued with respect to forfeited Restricted Stock will be reconveyed to the Company without further consideration or any act or action by the Participant.  In no event shall dividends be paid or distributed until the vesting restrictions of the underlying Restricted Stock Award lapse.

		
	9.4
	FORFEITURE.    Subject to the terms of the Award Certificate and except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of Continuous Service during the applicable restriction period or upon failure to satisfy a performance goal during the applicable restriction period, Restricted Stock or Restricted Stock Units that are at that time subject to restrictions shall be forfeited. 

		
	9.5
	DELIVERY OF RESTRICTED STOCK.    Shares of Restricted Stock shall be delivered to the Participant at the Grant Date either by book-entry registration or by delivering to the Participant, or a custodian or escrow agent (including, without limitation, the Company or one or more of its employees) designated by the Committee, a stock certificate or certificates registered in the name of the Participant. If physical certificates representing shares of Restricted Stock are registered in the name of the Participant, such certificates must bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock. 

Article 10     
PERFORMANCE AWARDS 
		
	10.1
	GRANT OF PERFORMANCE AWARDS.    The Committee is authorized to grant any Award under this Plan, including cash-based Awards, with performance-based vesting criteria, on such terms and conditions as may be selected by the Committee. Any such Awards with performance-based vesting criteria are referred to herein as Performance Awards. The Committee shall have the complete discretion to determine the number of Performance Awards granted to each Participant, subject to Section 5.4, and to designate the provisions of such Performance Awards as provided in Section 4.3. All Performance Awards shall be evidenced by an Award Certificate or a written program established by the Committee, pursuant to which Performance Awards are awarded under the Plan under uniform terms, conditions and restrictions set forth in such written program. 

		
	10.2
	PERFORMANCE GOALS.    The Committee may establish performance goals for Performance Awards which may be based on any criteria selected by the Committee. Such performance goals may be described in terms of Company-wide objectives or in terms of objectives that relate to the performance of the Participant, an Affiliate or a division, region, department or function within the Company or an Affiliate. If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company or the manner in which the Company or an Affiliate conducts its business, or other events or circumstances render performance goals to be unsuitable, the Committee may modify such performance goals in whole or in part, as the Committee deems appropriate. If a Participant is promoted, demoted or transferred to a different business unit or function during a performance period, the Committee may determine that the performance goals 

14

or performance period are no longer appropriate and may (i) adjust, change or eliminate the performance goals or the applicable performance period as it deems appropriate to make such goals and period comparable to the initial goals and period, or (ii) make a cash payment to the participant in an amount determined by the Committee. The foregoing two sentences shall not apply with respect to a Performance Award that is intended to be a Qualified Performance-Based Award if the recipient of such award (a) was a Covered Employee on the date of the modification, adjustment, change or elimination of the performance goals or performance period, or (b) in the reasonable judgment of the Committee, may be a Covered Employee on the date the Performance Award is expected to be paid. 
Article 11     
QUALIFIED PERFORMANCE-BASED AWARDS 
		
	11.1
	OPTIONS AND STOCK APPRECIATION RIGHTS.    The provisions of the Plan are intended to ensure that all Options and Stock Appreciation Rights granted hereunder to any Covered Employee shall qualify for the Section 162(m) Exemption. 

		
	11.2
	OTHER AWARDS.    When granting any other Award, the Committee may designate such Award as a Qualified Performance-Based Award, based upon a determination that the recipient is or may be a Covered Employee with respect to such Award, and the Committee wishes such Award to qualify for the Section 162(m) Exemption. If an Award is so designated, the Committee shall establish performance goals for such Award within the time period prescribed by Section 162(m) of the Code based on one or more of the following Qualified Business Criteria, which may be expressed in terms of Company-wide objectives or in terms of objectives that relate to the performance of an Affiliate or a division, region, department or function within the Company or an Affiliate:

		
	•
	Revenue (premium revenue, total revenue or other revenue measures) 

		
	•
	Sales 

		
	•
	Profit (net profit, gross profit, operating profit, economic profit, profit margins or other corporate profit measures) 

		
	•
	Earnings (EBIT, EBITDA, earnings per share, or other corporate earnings measures) 

		
	•
	Net income (before or after taxes, operating income or other income measures)  

		
	•
	Cash (cash flow, cash generation or other cash measures)

		
	•
	Stock price or performance 

		
	•
	Total stockholder return (stock price appreciation plus reinvested dividends divided by beginning share price)

		
	•
	Economic value added return measures (including, but not limited to, return on assets, capital, equity, investments or sales, and cash flow return on assets, capital, equity, or sales); 

		
	•
	Market share 

		
	•
	Improvements in capital structure 

15

		
	•
	Expenses (expense management, expense ratio, expense efficiency ratios or other expense measures) 

		
	•
	Business expansion or consolidation (acquisitions and divestitures) 

		
	•
	Internal rate of return or increase in net present value 

		
	•
	Productivity measures 

		
	•
	Cost reduction measures 

		
	•
	Strategic plan development and implementation 

		
	•
	Working capital (including, but not limited to, targets relating to inventory and/or accounts receivable

		
	•
	Safety standards 

		
	•
	Stock price or performance 

Performance goals with respect to the foregoing Qualified Business Criteria may be specified in absolute terms, in percentages, or in terms of growth from period to period or growth rates over time, as well as measured relative to the performance of a group of comparator companies, or a published or special index, or a stock market index, that the Committee deems appropriate. Any member of a comparator group or an index that ceases to exist during a measurement period shall be disregarded for the entire measurement period. Performance Goals need not be based upon an increase or positive result under a business criterion and could include, for example, the maintenance of the status quo or the limitation of economic losses (measured, in each case, by reference to a specific business criterion). 
		
	11.3
	PERFORMANCE GOALS.    Each Qualified Performance-Based Award (other than a market-priced Option or SAR) shall be earned, vested and payable (as applicable) only upon the achievement of performance goals established by the Committee based upon one or more of the Qualified Business Criteria, together with the satisfaction of any other conditions, such as continued employment, as the Committee may determine to be appropriate; provided, however, that the Committee may provide, either in connection with the grant thereof or by amendment thereafter, that achievement of such performance goals will be waived, in whole or in part, upon (i) the termination of employment of a Participant by reason of death or Disability, or (ii) the occurrence of a Change in Control. Performance periods established by the Committee for any such Qualified Performance-Based Award may be as short as three months and may be any longer period. In addition, the Committee has the right, in connection with the grant of a Qualified Performance-Based Award, to exercise negative discretion to determine that the portion of such Award actually earned, vested and/or payable (as applicable) shall be less than the portion that would be earned, vested and/or payable based solely upon application of the applicable performance goals. 

		
	11.4
	INCLUSIONS AND EXCLUSIONS FROM PERFORMANCE CRITERIA.    The Committee may provide in any Qualified Performance-Based Award, at the time the performance goals are established, that any evaluation of performance shall exclude or otherwise objectively adjust for any specified circumstance or event that occurs during a performance period, including by way of example but without limitation the following: (a) asset write-downs or impairment charges; (b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results; (d) accruals for reorganization and restructuring programs; (e) unusual or infrequently occurring items as described in Accounting 

16

Standards Codification Topic 225-20 (or any successor pronouncements thereto) and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year; (f) any other specific, unusual or nonrecurring events, or objectively determinable category thereof, including discontinued operations  or changes in the Company’s fiscal year; (g) acquisitions or divestitures; and (h) foreign exchange gains and losses. To the extent such inclusions or exclusions affect Awards to Covered Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility.
		
	11.5
	CERTIFICATION OF PERFORMANCE GOALS.    Any payment of a Qualified Performance-Based Award granted with performance goals pursuant to Section 11.3 above shall be conditioned on the written certification of the Committee in each case that the performance goals and any other material conditions were satisfied. Except as specifically provided in Section 11.3, no Qualified Performance-Based Award held by a Covered Employee or by an employee who in the reasonable judgment of the Committee may be a Covered Employee on the date of payment, may be amended, nor may the Committee exercise any discretionary authority it may otherwise have under the Plan with respect to a Qualified Performance-Based Award under the Plan, in any manner to waive the achievement of the applicable performance goal based on Qualified Business Criteria or to increase the amount payable pursuant thereto or the value thereof, or otherwise in a manner that would cause the Qualified Performance-Based Award to cease to qualify for the Section 162(m) Exemption. 

		
	11.6
	AWARD LIMITS.    Section 5.4 sets forth, with respect to any one 12-month period, (i) the maximum number of time-vesting Options or SARs that may be granted to any one Participant, (ii) the maximum amount that may be paid to any one Participant for Performance Awards payable in cash or property other than Shares, and (iii) the maximum number of Shares that may be paid to any one Participant for Performance Awards payable in Stock. 

Article 12     
DIVIDEND EQUIVALENTS 
		
	12.1
	GRANT OF DIVIDEND EQUIVALENTS.    The Committee is authorized to grant Dividend Equivalents with respect to Full-Value Awards granted hereunder. Dividend Equivalents shall entitle the Participant to receive payments equal to ordinary cash dividends or distributions with respect to all or a portion of the number of Shares subject to a Full-Value Award, as determined by the Committee. Dividend Equivalents accruing on unvested Full-Value Awards shall, as provided in the Award Certificate, either (i) be reinvested in the form of additional Shares (subject to Share availability under Section 5.1 hereof), which shall be subject to the same vesting provisions as provided for the host Award, or (ii) be credited by the Company to an account for the Participant and accumulated without interest until the date upon which the host Award becomes vested, and, in either case, any Dividend Equivalents accrued with respect to forfeited Awards will be reconveyed to the Company without further consideration or any act or action by the Participant. In no event shall Dividend Equivalents be paid or distributed until the vesting restrictions of the underlying Full-Value Award lapse.

Article 13     
STOCK OR OTHER STOCK-BASED AWARDS 
		
	13.1
	GRANT OF STOCK OR OTHER STOCK-BASED AWARDS.    The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other Awards that are payable 

17

in, valued in whole or in part by reference to, or otherwise based on or related to Shares, as deemed by the Committee to be consistent with the purposes of the Plan, including without limitation (but subject to Section 14.6) Shares awarded purely as a “bonus” and not subject to any restrictions or conditions, convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, including limited partnership interests in a limited partnership entity of which the Company is general partner that may be exchanged or redeemed for Shares on a one-for-one basis, or any profits interest in such limited partnership entity that may be exchanged or converted into such limited partnership interests, and Awards valued by reference to book value of Shares or the value of securities of or the performance of specified Parents or Subsidiaries. The Committee shall determine the terms and conditions of such Awards. 
Article 14     
PROVISIONS APPLICABLE TO AWARDS 
		
	14.1
	AWARD CERTIFICATES.    Each Award shall be evidenced by an Award Certificate. Each Award Certificate shall include such provisions, not inconsistent with the Plan, as may be specified by the Committee. 

		
	14.2
	FORM OF PAYMENT FOR AWARDS.    At the discretion of the Committee, payment of Awards may be made in cash, Stock, a combination of cash and Stock, or any other form of property as the Committee shall determine. In addition, payment of Awards may include such terms, conditions, restrictions and/or limitations, if any, as the Committee deems appropriate, including, in the case of Awards paid in the form of Stock, restrictions on transfer and forfeiture provisions. Further, payment of Awards may be made in the form of a lump sum, or in installments, as determined by the Committee. 

		
	14.3
	LIMITS ON TRANSFER.    No right or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or an Affiliate, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or an Affiliate. No unexercised or restricted Award shall be assignable or transferable by a Participant other than by will or the laws of descent and distribution or, except in the case of an Incentive Stock Option, pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the Code if such Section applied to an Award under the Plan; provided, however, that the Committee may (but need not) permit other transfers (other than transfers for value) where the Committee concludes that such transferability (i) does not result in accelerated taxation, (ii) does not cause any Option intended to be an Incentive Stock Option to fail to be described in Code Section 422(b), and (iii) is otherwise appropriate and desirable, taking into account any factors deemed relevant, including without limitation, state or federal tax or securities laws applicable to transferable Awards. 

		
	14.4
	BENEFICIARIES.    Notwithstanding Section 14.3, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person claiming any rights under the Plan is subject to all terms and conditions of the Plan and any Award Certificate applicable to the Participant, except to the extent the Plan and Award Certificate otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been designated or survives the Participant, any payment due to the Participant shall be made to the Participant’s estate. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant, in the manner provided by the Company, at any time provided the change or revocation is filed with the Committee. 

18

		
	14.5
	STOCK TRADING RESTRICTIONS.    All Stock issuable under the Plan is subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal or state securities laws, rules and regulations and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate or issue instructions to the transfer agent to reference restrictions applicable to the Stock. 

		
	14.6
	MINIMUM VESTING REQUIREMENTS.    Except in the case of substitute Awards granted pursuant to Section 14.12, Awards granted under the Plan to an Eligible Participant shall be subject to a minimum vesting period of one year (subject to automatic acceleration of vesting only in the event of death or disability of the Participant as provided in Section 14.7 and Section 14.8 hereof).  Notwithstanding the foregoing, the Committee may grant Awards without the above-described minimum vesting requirement with respect to Awards covering five percent (5%) or fewer of the total number of Shares authorized under the Plan. 

		
	14.7
	ACCELERATION UPON DEATH OR DISABILITY.    Except as otherwise provided in the Award Certificate or any special Plan document or separate agreement with a Participant governing an Award, upon the termination of a person’s Continuous Service by reason of death or Disability: 

		
	(a)
	all of that Participant’s outstanding Options and SARs shall become fully exercisable; 

		
	(b)
	all time-based vesting restrictions on that Participant’s outstanding Awards shall lapse as of the date of termination; and 

		
	(c)
	the target payout opportunities attainable under all of such Participant’s outstanding performance-based Awards shall be deemed to have been fully earned as of the date of termination based upon (A) an assumed achievement of all relevant performance goals at the “target” level if the date of termination occurs during the first half of the applicable performance period, or (B) the actual level of achievement of all relevant performance goals against target, if the date of termination occurs during the second half of the applicable performance period, and, in either such case, there shall be a prorata payout to the Participant or his or her estate within thirty (30) days following the date of termination (unless a later date is required by Section 17.3 hereof) based upon the length of time within the performance period that has elapsed prior to the date of termination. Any Awards shall thereafter continue or lapse in accordance with the other provisions of the Plan and the Award Certificate.

To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Code Section 422(d), the excess Options shall be deemed to be Nonstatutory Stock Options. 
		
	14.8
	EFFECT OF A CHANGE IN CONTROL.  

		
	(a)
	Awards Assumed or Substituted by Surviving Entity.    With respect to Awards assumed by the Surviving Entity or otherwise equitably converted or substituted in connection with a Change in Control: if within two years after the effective date of the Change in Control, a Participant’s employment is terminated without Cause or the Participant resigns for Good Reason, then (i) all of that Participant’s outstanding Options or SARs shall become fully exercisable, (ii) all time-based vesting restrictions on the his or her outstanding Awards shall lapse, and (iii) the target 

19

payout opportunities attainable under all outstanding of that Participant’s performance-based Awards shall be deemed to have been fully earned as of the date of termination based upon (A) an assumed achievement of all relevant performance goals at the “target” level if the date of termination occurs during the first half of the applicable performance period, or (B) the actual level of achievement of all relevant performance goals against target, if the date of termination occurs during the second half of the applicable performance period, and, in either such case, there shall be prorata payout to such Participant within thirty (30) days following the date of termination of employment (unless a later date is required by Section 17.3 hereof) based upon the length of time within the performance period that has elapsed prior to the date of termination of employment. With regard to each Award, a Participant shall not be considered to have resigned for Good Reason unless either (i) the Award Certificate includes such provision or (ii) the Participant is party to an employment, severance or similar agreement with the Company or an Affiliate that includes provisions in which the Participant is permitted to resign for Good Reason. Any Options or SARs shall thereafter continue or lapse in accordance with the other provisions of the Plan and the Award Certificate. To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Code Section 422(d), the excess Options shall be deemed to be Nonstatutory Stock Options. 
		
	(b)
	Awards not Assumed or Substituted by Surviving Entity.    Upon the occurrence of a Change in Control, and except with respect to any Awards assumed by the Surviving Entity or otherwise equitably converted or substituted in connection with the Change in Control in a manner approved by the Committee or the Board: (i) outstanding Options or SARs shall become fully exercisable, (ii) time-based vesting restrictions on outstanding Awards shall lapse, and (iii) the target payout opportunities attainable under outstanding performance-based Awards shall be deemed to have been fully earned as of the effective date of the Change in Control based upon (A) an assumed achievement of all relevant performance goals at the “target” level if the Change in Control occurs during the first half of the applicable performance period, or (B) the actual level of achievement of all relevant performance goals against target, if the Change in Control occurs during the second half of the applicable performance period, and, in either such case, there shall be prorata payout to Participants within thirty (30) days following the Change in Control (unless a later date is required by Section 17.3 hereof) based upon the length of time within the performance period that has elapsed prior to the Change in Control. Any Options or SARs shall thereafter continue or lapse in accordance with the other provisions of the Plan and the Award Certificate. To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Code Section 422(d), the excess Options shall be deemed to be Nonstatutory Stock Options.  

		
	14.9
	DISCRETION TO ACCELERATE AWARDS.    Regardless of whether an event has occurred as described in Section 14.7 or 14.8 above, and subject to Article 11 as to Qualified Performance-Based Awards, the Committee may in its sole discretion determine that, upon the termination of service of a Participant for any reason, or the occurrence of a Change in Control, all or a portion of such Participant’s Options or SARs shall become fully or partially exercisable, that all or a part of the restrictions on all or a portion of the Participant’s outstanding Awards shall lapse, and/or that any 

20

performance-based criteria with respect to any Awards held by that Participant shall be deemed to be wholly or partially satisfied, in each case, as of such date as the Committee may, in its sole discretion, declare. The Committee may discriminate among Participants and among Awards granted to a Participant in exercising its discretion pursuant to this Section 14.9.  
		
	14.10
	FORFEITURE EVENTS.    Awards under the Plan shall be subject to any compensation recoupment policy that the Committee may adopt from time to time that is applicable by its terms to the Participant. In addition, the Committee may specify in an Award Certificate that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, (i) termination of employment for cause, (ii) violation of material Company or Affiliate policies, (iii) breach of noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, (iv) other conduct by the Participant that is detrimental to the business or reputation of the Company or any Affiliate, or (v) a later determination that the vesting of, or amount realized from, a Performance Award was based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria, whether or not the Participant caused or contributed to such material inaccuracy. 

		
	14.11
	SUBSTITUTE AWARDS.    The Committee may grant Awards under the Plan in substitution for stock and stock-based awards held by employees of another entity who become employees of the Company or an Affiliate as a result of a merger or consolidation of the former employing entity with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or stock of the former employing corporation. The Committee may direct that the substitute awards be granted on such terms and conditions as the Committee considers appropriate in the circumstances. 

Article 15     
CHANGES IN CAPITAL STRUCTURE 
		
	15.1
	MANDATORY ADJUSTMENTS.    In the event of a nonreciprocal transaction between the Company and its stockholders that causes the per-share value of the Stock to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering, or large nonrecurring cash dividend), the authorization limits under Section 5.1 and 5.4 shall be adjusted proportionately, and the Committee shall make such adjustments to the Plan and Awards as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction. Action by the Committee may include: (i) adjustment of the number and kind of shares that may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding Awards or the measure to be used to determine the amount of the benefit payable on an Award; and (iv) any other adjustments that the Committee determines to be equitable. Notwithstanding the foregoing, the Committee shall not make any adjustments to outstanding Options or SARs that would constitute a modification or substitution of the stock right under Treas. Reg. Sections 1.409A-1(b)(5)(v) that would be treated as the grant of a new stock right or change in the form of payment for purposes of Code Section 409A. Without limiting the foregoing, in the event of a subdivision of the outstanding Stock (stock-split), a declaration of a dividend payable in Shares, or a combination or consolidation of the outstanding Stock into a lesser number of Shares, the authorization limits under Section 5.1 and 5.4 shall automatically be adjusted proportionately, and the Shares then subject to each Award shall automatically, without the necessity for any additional action by the Committee, be adjusted proportionately without any change in the aggregate purchase price therefor. 

21

		
	15.2
	DISCRETIONARY ADJUSTMENTS.    Upon the occurrence or in anticipation of any corporate event or transaction involving the Company (including, without limitation, any merger, reorganization, recapitalization, combination or exchange of shares, or any transaction described in Section 15.1), the Committee may, in its sole discretion, provide (i) that Awards will be settled in cash rather than Stock, (ii) that Awards will become immediately vested and non-forfeitable and exercisable (in whole or in part) and will expire after a designated period of time to the extent not then exercised, (iii) that Awards will be assumed by another party to a transaction or otherwise be equitably converted or substituted in connection with such transaction, (iv) that outstanding Awards may be settled by payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction, over the exercise or base price of the Award, (v) that performance targets and performance periods for Performance Awards will be modified, consistent with Code Section 162(m) where applicable, or (vi) any combination of the foregoing. The Committee’s determination need not be uniform and may be different for different Participants whether or not such Participants are similarly situated. 

		
	15.3
	GENERAL.    Any discretionary adjustments made pursuant to this Article 15 shall be subject to the provisions of Section 16.2. To the extent that any adjustments made pursuant to this Article 15 cause Incentive Stock Options to cease to qualify as Incentive Stock Options, such Options shall be deemed to be Nonstatutory Stock Options. 

Article 16     
AMENDMENT, MODIFICATION AND TERMINATION
		
	16.1
	AMENDMENT, MODIFICATION AND TERMINATION.    The Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without stockholder approval; provided, however, that if an amendment to the Plan would, in the reasonable opinion of the Board or the Committee, either (i) materially increase the number of Shares available under the Plan, (ii) expand the types of awards under the Plan, (iii) materially expand the class of participants eligible to participate in the Plan, (iv) materially extend the term of the Plan, or (v) otherwise constitute a material change requiring stockholder approval under applicable laws, policies or regulations or the applicable listing or other requirements of an Exchange, then such amendment shall be subject to stockholder approval; and provided, further, that the Board or Committee may condition any other amendment or modification on the approval of stockholders of the Company for any reason, including by reason of such approval being necessary or deemed advisable (i) to comply with the listing or other requirements of an Exchange, or (ii) to satisfy any other tax, securities or other applicable laws, policies or regulations. Without the prior approval of the stockholders of the Company, the Plan may not be amended to permit: (i) the exercise price or base price of an Option or SAR to be reduced, directly or indirectly, (ii) an Option or SAR to be cancelled in exchange for cash, other Awards, or Options or SARs with an exercise or base price that is less than the exercise price or base price of the original Option or SAR, or (iii) the Company to repurchase an Option or SAR for value (in cash or otherwise) from a Participant if the current Fair Market Value of the Shares underlying the Option or SAR is lower than the exercise price or base price per share of the Option or SAR.

		
	16.2
	AWARDS PREVIOUSLY GRANTED.    At any time and from time to time, the Committee may amend, modify or terminate any outstanding Award without approval of the Participant; provided, however: 

		
	(a)
	Subject to the terms of the applicable Award Certificate, such amendment, modification or termination shall not, without the Participant’s consent, reduce or 

22

diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment or termination (with the per-share value of an Option or SAR for this purpose being calculated as the excess, if any, of the Fair Market Value as of the date of such amendment or termination over the exercise or base price of such Award); 
		
	(b)
	The original term of an Option or SAR may not be extended without the prior approval of the stockholders of the Company; 

		
	(c)
	Except as otherwise provided in Section 15.1, without the prior approval of the stockholders of the Company, (i) the exercise price of an Option or base price of a SAR may not be reduced, directly or indirectly, (ii) an option or SAR may not be cancelled in exchange for cash, other Awards or Options or SARs with an exercise or base price that is less than the exercise price or base price of the original Option or SAR, or otherwise, and (iii) the Company may not repurchase an Option or SAR for value (in cash or otherwise) from a Participant if the current Fair Market Value of the Shares underlying the Option or SAR is lower than the exercise price or base price per share of the Option or SAR; and 

		
	(d)
	No termination, amendment, or modification of the Plan shall adversely affect any Award previously granted under the Plan, without the written consent of the Participant affected thereby. An outstanding Award shall not be deemed to be “adversely affected” by a Plan amendment if such amendment would not reduce or diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment (with the per-share value of an Option or SAR for this purpose being calculated as the excess, if any, of the Fair Market Value as of the date of such amendment over the exercise or base price of such Award). 

		
	16.3
	COMPLIANCE AMENDMENTS.    Notwithstanding anything in the Plan or in any Award Certificate to the contrary, the Board may amend the Plan or an Award Certificate, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or Award Certificate to any present or future law relating to plans of this or similar nature (including, but not limited to, Section 409A of the Code), and to the administrative regulations and rulings promulgated thereunder. By accepting an Award under this Plan, a Participant agrees to any amendment made pursuant to this Section 16.3 to any Award granted under the Plan without further consideration or action. 

Article 17     
GENERAL PROVISIONS 
		
	17.1
	RIGHTS OF PARTICIPANTS. 

		
	(a)
	No Participant or any Eligible Participant shall have any claim to be granted any Award under the Plan. Neither the Company, its Affiliates nor the Committee is obligated to treat Participants or Eligible Participants uniformly, and determinations made under the Plan may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive, Awards (whether or not such Eligible Participants are similarly situated). 

23

		
	(b)
	Nothing in the Plan, any Award Certificate or any other document or statement made with respect to the Plan, shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any Participant’s employment or status as an officer, or any Participant’s service as a director or consultant, at any time, nor confer upon any Participant any right to continue as an employee, officer, director or consultant of the Company or any Affiliate, whether for the duration of a Participant’s Award or otherwise. 

		
	(c)
	Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company or any Affiliate and, accordingly, subject to Article 16, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company or any of its Affiliates. 

		
	(d)
	No Award gives a Participant any of the rights of a stockholder of the Company unless and until Shares are in fact issued to such person in connection with such Award. 

		
	17.2
	WITHHOLDING.    The Company or any Affiliate shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company or such Affiliate, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any exercise, lapse of restriction or other taxable event arising as a result of the Plan. The obligations of the Company under the Plan will be conditioned on such payment or arrangements and the Company or such Affiliate will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant. Unless otherwise determined by the Committee at the time the Award is granted or thereafter, any such withholding requirement may be satisfied, in whole or in part, by withholding from the Award Shares having a Fair Market Value on the date of withholding equal to the amount required to be withheld in accordance with applicable tax requirements (up to the maximum individual statutory rate in the applicable jurisdiction as may be permitted under then-current accounting principles to qualify for equity classification), in accordance with such procedures as the Committee establishes. All such elections shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 

		
	17.3
	SPECIAL PROVISIONS RELATED TO SECTION 409A OF THE CODE. 

		
	(a)
	General.    It is intended that the payments and benefits provided under the Plan and any Award shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Code. The Plan and all Award Certificates shall be construed in a manner that effects such intent. Nevertheless, the tax treatment of the benefits provided under the Plan or any Award is not warranted or guaranteed. Neither the Company, its Affiliates nor their respective directors, officers, employees or advisers (other than in his or her capacity as a Participant) shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan or any Award. 

		
	(b)
	Definitional Restrictions.    Notwithstanding anything in the Plan or in any Award Certificate to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of 

24

the Code (“Non-Exempt Deferred Compensation”) would otherwise be payable or distributable, or a different form of payment (e.g., lump sum or installment) of such Non-Exempt Deferred Compensation would be effected, under the Plan or any Award Certificate by reason of the occurrence of a Change in Control, or the Participant’s Disability or separation from service, such Non-Exempt Deferred Compensation will not be payable or distributable to the Participant, and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving rise to such Change in Control, Disability or separation from service meet any description or definition of “change in control event”, “disability” or “separation from service”, as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition). This provision does not prohibit the vesting of any Award upon a Change in Control, Disability or separation from service, however defined. If this provision prevents the payment or distribution of any amount or benefit, or the application of a different form of payment of any amount or benefit, such payment or distribution shall be made at the time and in the form that would have applied absent the Change in Control, Disability or separation from service as applicable. 
		
	(c)
	Allocation among Possible Exemptions.    If any one or more Awards granted under the Plan to a Participant could qualify for any separation pay exemption described in Treas. Reg. Section 1.409A-1(b)(9), but such Awards in the aggregate exceed the dollar limit permitted for the separation pay exemptions, the Company shall determine which Awards or portions thereof will be subject to such exemptions. 

		
	(d)
	Six-Month Delay in Certain Circumstances.    Notwithstanding anything in the Plan or in any Award Certificate to the contrary, if any amount or benefit that would constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Plan or any Award Certificate by reason of a Participant’s separation from service during a period in which the Participant is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Committee under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes): (i) the amount of such Non-Exempt Deferred Compensation that would otherwise be payable during the six-month period immediately following the Participant’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Participant’s separation from service (or, if the Participant dies during such period, within 30 days after the Participant’s death) (in either case, the “Required Delay Period”); and (ii) the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.   For purposes of this Plan, the term “Specified Employee” has the meaning given such term in Code Section 409A and the final regulations thereunder.

		
	(e)
	 Installment Payments.    If, pursuant to an Award, a Participant is entitled to a series of installment payments, such Participant’s right to the series of installment payments shall be treated as a right to a series of separate payments and not to a single payment. For purposes of the preceding sentence, the term “series of 

25

installment payments” has the meaning provided in Treas. Reg. Section 1.409A-2(b)(2)(iii) (or any successor thereto). 
		
	(f)
	Timing of Release of Claims.    Whenever an Award conditions a payment or benefit on the Participant’s execution and non-revocation of a release of claims, such release must be executed and all revocation periods shall have expired within sixty (60) days after the date of termination of the Participant’s employment; failing which such payment or benefit shall be forfeited. If such payment or benefit is exempt from Section 409A of the Code, the Company may elect to make or commence payment at any time during such 60-day period. If such payment or benefit constitutes Non-Exempt Deferred Compensation, then, subject to subsection (c) above, (i) if such 60-day period begins and ends in a single calendar year, the Company may make or commence payment at any time during such period at its discretion, and (ii) if such 60-day period begins in one calendar year and ends in the next calendar year, the payment shall be made or commence during the second such calendar year (or any later date specified for such payment under the applicable Award), even if such signing and non-revocation of the release occur during the first such calendar year included within such 60-day period. In other words, a Participant is not permitted to influence the calendar year of payment based on the timing of signing the release. 

		
	(g)
	Permitted Acceleration.    The Company shall have the sole authority to make any accelerated distribution permissible under Treas. Reg. Section 1.409A-3(j)(4) to Participants of deferred amounts, provided that such distribution(s) meets the requirements of Treas. Reg. Section 1.409A-3(j)(4). 

		
	17.4
	UNFUNDED STATUS OF AWARDS.    The Plan is intended to be an “unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Certificate shall give the Participant any rights that are greater than those of a general creditor of the Company or any Affiliate. In its sole discretion, the Committee may authorize the creation of grantor trusts or other arrangements to meet the obligations created under the Plan to deliver Shares or payments in lieu of Shares or with respect to Awards. This Plan is not intended to be subject to ERISA. 

		
	17.5
	RELATIONSHIP TO OTHER BENEFITS.    No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or benefit plan of the Company or any Affiliate unless provided otherwise in such other plan. Nothing contained in the Plan will prevent the Company from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases. 

		
	17.6
	EXPENSES.    The expenses of administering the Plan shall be borne by the Company and its Affiliates. 

		
	17.7
	TITLES AND HEADINGS.    The titles and headings of the Sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 

		
	17.8
	GENDER AND NUMBER.    Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 

26

		
	17.9
	FRACTIONAL SHARES.    No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down. 

		
	17.10
	GOVERNMENT AND OTHER REGULATIONS. 

		
	(a)
	Notwithstanding any other provision of the Plan, no Participant who acquires Shares pursuant to the Plan may, during any period of time that such Participant is an affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission under the 1933 Act), sell such Shares, unless such offer and sale is made (i) pursuant to an effective registration statement under the 1933 Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration requirement of the 1933 Act, such as that set forth in Rule 144 promulgated under the 1933 Act. 

		
	(b)
	Notwithstanding any other provision of the Plan, if at any time the Committee shall determine that the registration, listing or qualification of the Shares covered by an Award upon any Exchange or under any foreign, federal, state or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Award or the purchase or receipt of Shares thereunder, no Shares may be purchased, delivered or received pursuant to such Award unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any condition not acceptable to the Committee. Any Participant receiving or purchasing Shares pursuant to an Award shall make such representations and agreements and furnish such information as the Committee may request to assure compliance with the foregoing or any other applicable legal requirements. The Company shall not be required to issue or deliver any certificate or certificates for Shares under the Plan prior to the Committee’s determination that all related requirements have been fulfilled. The Company shall in no event be obligated to register any securities pursuant to the 1933 Act or applicable state or foreign law or to take any other action in order to cause the issuance and delivery of such certificates to comply with any such law, regulation or requirement. 

		
	17.11
	GOVERNING LAW.    To the extent not governed by federal law, the Plan and all Award Certificates shall be construed in accordance with and governed by the laws of the State of Maryland. 

		
	17.12
	SEVERABILITY.    In the event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable law, such invalidity or unenforceability will not be construed as rendering any other provisions contained herein as invalid or unenforceable, and all such other provisions will be given full force and effect to the same extent as though the invalid or unenforceable provision was not contained herein. 

		
	17.13
	NO LIMITATIONS ON RIGHTS OF COMPANY.    The grant of any Award shall not in any way affect the right or power of the Company to make adjustments, reclassification or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets. The Plan shall not restrict the authority of the Company, for proper corporate purposes, to draft or assume awards, other than under the Plan, to or with respect to any person. If the Committee so directs, the Company may issue or transfer Shares to an Affiliate, for 

27

such lawful consideration as the Committee may specify, upon the condition or understanding that the Affiliate will transfer such Shares to a Participant in accordance with the terms of an Award granted to such Participant and specified by the Committee pursuant to the provisions of the Plan. 
The foregoing is hereby acknowledged as being the CatchMark Timber Trust, Inc. 2017 Incentive Plan as adopted by the Board on April 12, 2017 and approved by the Company’s stockholders on [____], 2017. 

CATCHMARK TIMBER TRUST, INC.

By:                        
Name:    
Title:    
 

28Exhibit

EXHIBIT 10.2

PURCHASE AND SALE AGREEMENT

THIS AGREEMENT (this “Agreement”), made as of the Effective Date (as defined in paragraph 26 below), by and among FIATP SSF TIMBER LLC, a Delaware limited liability company (hereinafter referred to as “Seller”), CATCHMARK TIMBER TRUST, INC., a Maryland corporation (hereinafter referred to as “Purchaser”) and FIRST AMERICAN TITLE INSURANCE COMPANY (hereinafter referred to as “Escrow Agent”);

W I T N E S S E T H:

WHEREAS, Seller is the owner of those certain tracts or parcels of land in Kershaw, Richland and Sumter Counties, State of South Carolina, containing approximately ± 23,985 acres, which tracts or parcels are more fully described and shown in Exhibit A attached hereto, and hereby made a part hereof, together with all buildings, structures, and other improvements located thereon, all tenements, hereditaments, easements, appurtenances and privileges thereto belonging, all trees, timber, sand, gravel and crops now located thereon or thereunder, and all oil, gas and mineral rights and interests not reserved or conveyed by Seller’s predecessors in title (hereinafter referred to collectively as the “Property”); and

WHEREAS, Purchaser desires to purchase and Seller desires to sell the Property;

NOW, THEREFORE, the parties have agreed and do hereby agree as follows:

1.Agreement of Purchase and Sale.  Subject to the provisions of this Agreement, and for the consideration herein stated, Seller agrees to sell the Property to Purchaser and Purchaser agrees to buy the Property from Seller.  

2.    Purchase Price.  The purchase price (subject to adjustment as provided herein, hereinafter referred to as the “Purchase Price”) to be paid by Purchaser for the Property shall be THIRTY EIGHT MILLION FIVE HUNDRED TWENTY-ONE THOUSAND THIRTY and 35/100ths DOLLARS ($38,521,030.35), and shall be payable to Seller by wire transfer of immediately available funds at the date of Closing to an account designated by Seller.  The purchase and sale pursuant to this Agreement is not based on a per-acre price and the Purchase Price shall not be subject to adjustment if the acres within the Property are more or less than the above-stated numbers of acres.

3.    Earnest Money.  Within five (5) business days after the Effective Date of this Agreement, Purchaser shall deliver to Escrow Agent the sum of ONE MILLION AND NO/100THS DOLLARS ($1,000,000.00) (said amount is hereinafter referred to as the “Earnest Money”).  Escrow Agent agrees to hold the Earnest Money in a non-interest bearing account and disburse the Earnest Money in accordance with the terms hereof.  At the Closing the Earnest Money shall be returned to Purchaser.

SGR/13818384.2

4.    Closing.  

(a)    The execution and delivery of the documents and instruments for the consummation of the purchase and sale pursuant hereto (herein referred to as the “Closing”) shall take place on June 15, 2016 at 10:00 a.m. through the escrow services of Escrow Agent, or such earlier date and time, and/or such other location, as may be mutually agreeable to Seller and Purchaser (the “Closing Date”).  

(b)    At the Closing, Seller shall execute, or cause to be executed, and deliver to Escrow Agent the following:

(i)        one or more (at Purchaser’s election) special warranty deeds (warranting only against the claims of persons claiming by, through or under Seller) for each county in which the Property is located, in the form of Exhibit B attached hereto, and subject only to the Unrecorded Encumbrances and the Permitted Encumbrances (both as hereinafter defined) (with an affidavit of consideration for each, collectively, the “Deed”).  The legal description of the Property to be contained in Deed shall be the legal description of the Property as set forth on Exhibit A attached hereto and hereby made a part hereof; 

(ii)        an affidavit as to the non-foreign status of Seller in form reasonably satisfactory to Seller and Purchaser;

(iii)        the assignment and assumption of any Unrecorded Encumbrances (as hereinafter defined) in form attached hereto as Exhibit G and hereby made a part hereof (the “Unrecorded Encumbrances Assignment”); 

(iv)        the assignment and assumption of the Pulpwood Supply Agreement, duly executed by Broad Arrow in form reasonably satisfactory to Seller and Purchaser (the “Supply Agreement Assignment”);

(v)        the assignment and assumption of the Pulpwood Support Agreement, in form reasonably satisfactory to Seller and Purchaser (the “Support Agreement Assignment”);

(vi)        assignment and assumption of the Master Stumpage Agreement, in form reasonably satisfactory to Seller and Purchaser duly executed by Seller and Broad Arrow Timber Company LLC, in form reasonably satisfactory to Seller and Purchaser (the “Stumpage Agreement Assignment”);

(vii)        the Memorandum of Assignment;
    
(viii)        an assignment and assumption of the Timber Cutting Agreements (as hereinafter defined) , in form reasonably satisfactory to Seller and Purchaser (the “Timber Cutting Assignment”); 

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SGR/13818384.2

(ix)        an owner’s affidavit in form attached hereto as Exhibit F and hereby made a part hereof; 

(x)        a Closing statement; 

(xi)        a Tax Lien and Withholding Affidavit; and
 
(xii)        Seller hereby agrees to execute such other certificates and affidavits, and do such other acts as may be reasonably necessary to consummate the purchase and sale contemplated hereby and to enable Purchaser to obtain the title insurance policy in accordance with this Agreement.  The owner’s affidavit and any other affidavits or certificates executed by or on behalf of Seller at the Closing shall be given to the actual knowledge of the person or entity executing the same, without independent investigation or inquiry.

(c)    At the Closing, Purchaser shall execute, or cause to be executed, and deliver to Escrow Agent the following:

(i)        the Unrecorded Encumbrances Assignment, as applicable;
(ii)        the Timber Cutting Assignment, as applicable;
(iii)        the Supply Agreement Assignment;
(iv)        the Support Agreement Assignment;
(v)        the Stumpage Agreement Assignment;
(vi)        the Memorandum of Assignment;
(vii)        a Closing statement; and
(viii)        Purchaser hereby agrees to execute such other certificates and affidavits, and do such other acts as may be reasonably necessary to consummate the purchase and sale contemplated hereby and to obtain the title insurance policy in accordance with this Agreement.

5.    Title.

(a)    Seller agrees to convey to Purchaser fee simple title to the Property by the Deed, free and clear of all liens, encumbrances, mortgages, deeds of trust, deeds to secure debt, assessments, agreements, options and covenants arising by, through or under Seller, except for the Permitted Encumbrances, as hereinafter defined. 

3
SGR/13818384.2

(b)    Seller has, at Seller’s cost, caused to be delivered to Purchaser one or more commitments for an owner’s title insurance policy with respect to the Property (the “Title Commitment”), and written through the Escrow Agent (the “Title Company”).  Purchaser shall have a period of fifteen (15) days after the Effective Date of this Agreement (the “Title Review Period”) to review the Title Commitment and to provide Seller with written notice that the condition of title to the Property is satisfactory to Purchaser, as determined by Purchaser in its sole and absolute discretion (“Notice to Proceed”), whereupon all matters appearing in the Title Commitment (other than Required Cure Matters (as hereinafter defined)) shall constitute Permitted Encumbrances.  If Purchaser fails for any reason to deliver the Notice to Proceed prior to the expiration of the Title Review Period, Purchaser shall be deemed to have elected to terminate this Agreement, whereupon this Agreement shall automatically terminate, Escrow Agent shall deliver the Earnest Money to Purchaser, and neither party will have any further rights, duties or obligations hereunder other than those which expressly survive the termination hereof.

(c)    Seller shall at its sole cost and expense secure the release of any mortgage, deed of trust or deed to secure debt securing a monetary obligation which was created or suffered by Seller or any party claiming by, through or under Seller, using the cash portion of the Purchase Price to cure any such objection at Closing (“Required Cure Matters”).  

(d)    At any time prior to Closing Purchaser shall have the right to update the Title Commitment and notify Seller  (“Updated Title Objection Notice”) of any title matter to which Purchaser objects which first appears in such updated Title Commitment, including any Permitted Encumbrance, and which materially and adversely affects the use or value of the Property as commercial timberlands or for resale (“Updated Title Objections”).  Seller shall have the right, but not the obligation, to respond within five (5) days of receipt of such Updated Title Objection Notice indicating whether Seller will cure any valid Updated Title Objections.  If Seller fails to elect, or elects not to, cure or satisfy any valid Updated Title Objections within five (5) days after Seller’s receipt of Purchaser’s notice thereof, then Purchaser shall elect either: 

(i)        cancel this Agreement by providing written notice to Seller on or before 12:00 p.m. (Atlanta Time) ten (10) days after Seller’s receipt of Purchaser’s Updated Title Objection Notice, whereupon this Agreement will terminate, Escrow Agent shall deliver the Earnest Money to Purchaser, and neither party will have any further rights, duties or obligations hereunder other than those which expressly survive the termination hereof.  If Purchaser fails to timely cancel this Agreement pursuant to this subsection (i), then Purchaser shall be deemed to have waived this right; or

(ii)    waive such Updated Title Objections and close the sale without regard to said Updated Title Objections, whereupon such Updated Title Objections, together with all other matters appearing in the Updated Title Commitment (other than Required Cure Matters and Title Objections and Updated Title Objections which Seller has agreed in writing to cure) shall constitute Permitted Encumbrances and without an adjustment to the Purchase Price.

(e)    For so long as this Agreement remains in force, Seller shall not lease, encumber or convey all or part of the Property or any interest therein, or enter into any agreement 

4
SGR/13818384.2

granting to any person any right with respect to the Property or any portion thereof, without the prior written consent of Purchaser.

(f)    Purchaser acknowledges that, as of the Effective Date, the Property is subject to certain Supply, Support and Stumpage Agreements with International Paper Company (“IP”) and West Fraser, Inc.(“West Fraser”, and collectively with IP, the “Mill Owners”), which require that Seller make available certain annual amounts of pulpwood or sawtimber (logs) to its affiliate, Broad Arrow Timber Company LLC (“Broad Arrow”), for delivery to the Mill Owners.  

(i)        Seller and Broad Arrow shall use commercially reasonable efforts to terminate that certain Log Supply Agreement dated as of November 3, 2006 (the “Log Supply Agreement”), by and between Broad Arrow and IP, as assigned by IP to West Fraser, pursuant to that certain Assignment, Amendment and Further Assurances Agreement dated as of March 31, 2007.  Seller shall use commercially reasonable efforts to terminate that certain Log Support Agreement dated as of November 3, 2006 (the “Log Support Agreement”, and together with the Log Supply Agreement, hereinafter referred to as the “Log Agreements”), by and between Seller and IP, as assigned by IP to West Fraser, pursuant to that certain Assignment, Amendment and Further Assurances Agreement dated as of March 31, 2007.  If Seller fails to obtain such terminations by the date which is five (5) days prior to the Closing Date, Purchaser shall have the right, at its option and its sole discretion, either (1) to terminate this Agreement, without any further liability to Seller (except as may be otherwise expressly provided herein), whereupon Escrow Agent shall promptly return the Earnest Money to Purchaser, or (2) to extend the Closing Date for a period not to exceed thirty (30) days in order to allow Seller additional time to continue its efforts to obtain such terminations.  If Purchaser exercises its option under the foregoing clause (2) and Seller fails to obtain such release(s) within said extension period, then Purchaser shall elect (A) to terminate this Agreement without further liability to Seller whatsoever (except as may be otherwise expressly provided herein), whereupon Escrow Agent shall promptly return the Earnest Money to Purchaser, or (B) to proceed to Closing and take title to the Property subject to, or take an assignment of, the Log Agreements, in which case Seller shall provide such assurances and indemnities as may be reasonably requested by Purchaser to ensure that Purchaser shall have no obligations or liability under said Log Agreements. 

(ii)        At Closing, Seller shall assign to Purchaser, and Purchaser shall assume from Seller, that certain Pulpwood Support Agreement, dated November 3, 2006, by and between FIATP Parent LLC, Seller and IP (the “Pulpwood Support Agreement”).  Purchaser agrees to reasonably cooperate with Seller and IP in connection with such assignment, and shall provide IP with all information reasonably requested by IP regarding the Purchaser’s acquisition of the Property and the assignment of the Pulpwood Support Agreement.  Seller shall use commercially reasonable efforts to obtain from IP and deliver to Purchaser an Estoppel and Recognition Agreement the form attached hereto as Exhibit H (the “Estoppel Agreement”).  If Seller fails to obtain the Estoppel Agreement from IP within thirty (30) days after the Effective Date (the “Supply Agreement Diligence Period”), then within three (3) business days after the expiration of the Supply Agreement Diligence Period Purchaser shall elect (A) to terminate this Agreement without further 

5
SGR/13818384.2

liability to Seller whatsoever (except as may be otherwise expressly provided herein), whereupon Escrow Agent shall promptly return the Earnest Money to Purchaser, or (B) to proceed to Closing without the Estoppel Agreement.  If Purchaser fails to timely elect either (A) or (B) above, then Purchaser shall be deemed to have elected (B).

(iii)        At Closing, Broad Arrow shall assign to Purchaser, or an affiliate of Purchaser at Purchaser’s election, (such assignee being referred to herein as “LogCo”) and LogCo shall assume from Broad Arrow, that certain Pulpwood Supply Agreement, dated November 3, 2006, by and between Broad Arrow and IP (the “Pulpwood Supply Agreement”).  

(iv)        At Closing, Seller shall assign to Purchaser, and Purchaser shall assume from Seller, that certain Master Stumpage Agreement, dated November 3, 2006, by and between Broad Arrow, FIATP SSF Parent LLC, and Seller, as supplemented by that certain Stumpage Agreement Supplement dated January 12, 2016, as modified by that certain Stumpage Agreement Supplement Addendum dated February 10, 2016 (as supplemented and modified, the “Stumpage Agreement”; the Stumpage Agreement, Pulpwood Supply Agreement and the Pulpwood Support Agreement, collectively, are referred to herein as the “Supply Agreements”) and Broad Arrow shall assign to LogCo, and LogCo shall assume from Broad Arrow the Stumpage Agreement.

(v)        At Closing, Seller, Broad Arrow, Purchaser and LogCo shall execute a Memorandum of Assignment of Pulpwood Agreements in form suitable for recording in the public records and otherwise reasonably acceptable to Seller and Purchaser providing record notice of the assignment and assumption of the Pulpwood Supply Agreement, Pulpwood Support Agreement and Stumpage Agreement (the “Memorandum of Assignment”).

(g)    For purposes of this Agreement, “Permitted Encumbrances” shall mean those matters set forth on Exhibit C attached hereto and hereby made a part hereof, the Unrecorded Encumbrances, the Supply Agreements, the Timber Cutting Agreements and any other title matter to which Purchaser does not object, or for which Purchaser waives its objection, pursuant to this Section 5.  

6.    Inspection.  

(a)    Purchaser and its agents, representatives, employees, engineers and contractors shall have the right at any time during the term of this Agreement to enter upon the Property to inspect, examine, survey and make timber cruises and other engineering tests or surveys, including a Phase I environmental site assessment (collectively, the “Tests”) which it may deem necessary or advisable, all at Purchaser’s sole cost and expense.  Upon completion of the Tests, Purchaser shall repair, at its sole cost and expense, any physical damage caused to the Property by Purchaser’s inspection of the Property and the Tests, and shall remove all debris and materials placed on the Property in connection with Purchaser’s inspection of the Property and the Tests.

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(b)    Purchaser hereby agrees to indemnify and hold Seller harmless from and against any and all causes, claims, demands, losses, liabilities, costs, damages, expenses and fees (including, but not limited to, reasonable attorney’s fees) incurred or suffered by or asserted against Seller caused by or related to Purchaser’s inspection of the Property or the Tests, with the exception of any causes, claims, demands, losses, liabilities, costs, damages, expenses and fees directly caused by the gross negligence of Seller. The foregoing indemnification shall survive any termination, cancellation or expiration of this Agreement or the Closing of the purchase and sale contemplated hereby.  

7.    Environmental.  Purchaser shall have a period of thirty (30) days after the Effective Date of this Agreement to obtain, at Purchaser’s sole cost and expense, a new or updated Phase I environmental site assessment or environmental audit of the Property from a licensed environmental consultant (the “Environmental Due Diligence Period”).  With regard to the Tests, without Seller’s prior written consent, no secondary environmental reports, soil borings, groundwater samples, or other invasive or subsurface environmental investigations may be made of the Property, and neither Purchaser nor its agents, representatives, employees, engineers or contractors may contact any federal, state, or local governmental agency or authority regarding the results of the Tests.  In the event that Purchaser determines that disclosure by Purchaser of the results of any Tests is required by applicable law, regulation or court order, Purchaser shall notify Seller promptly in writing so that Seller may seek a protective order (at its own cost and expense) or other appropriate remedy.  In the event that no such protective order or other appropriate remedy is obtained, or Seller waives compliance with the terms of this Section 7, Purchaser shall give Seller written notice of the information to be disclosed as far in advance of its disclosure as practicable.  In the event any such assessment or audit reveals that, in the commercially reasonable opinion of Purchaser’s environmental consultant, any portion of the Property is impaired by a Recognized Environmental Condition or there is a reportable violation of Environmental Laws, Purchaser shall have until the expiration of the Environmental Due Diligence Period to deliver to Seller written notice of such impairment or such reportable violation (the “Environmental Notice”); provided, however, that Purchaser shall have no right to send an Environmental Notice or to any other remedy set forth in this Section 7 with respect to any impairment or reportable violation related to those portions of the Property set forth on Schedule 7 (the “Schedule 7 Property”).  The Environmental Notice shall include a copy of any report, notice, or correspondence by which Purchaser was made aware of the impairment or reportable violation.  If Purchaser timely delivers the Environmental Notice Seller shall have the right, but not the obligation, to attempt to cure and remove such Recognized Environmental Conditions.  If Seller fails to cure, or elects not to cure, any such Recognized Environmental Condition within fifteen (15) days prior to the Closing, Seller shall notify Purchaser of same, and Purchaser shall elect by delivering written notice to Seller (i) to proceed to Closing subject to such uncured or unsatisfied Environmental Conditions, with no reduction in the Purchase Price; or (ii) to proceed to Closing and purchase the Property exclusive of such portion or portions of the Property subject to such uncured or unsatisfied Environmental Conditions, with such adjustment in the Purchase Price as may be determined in accordance with the provisions of Section 23 hereof; or (iii) cancel this Agreement by providing written notice to Seller on or before 12:00 p.m. (Atlanta Time) on the day before the Closing Date, whereupon this Agreement will terminate, Escrow Agent shall deliver the Earnest Money to Purchaser, and neither party will have any further rights, duties or obligations hereunder other than those which expressly 

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survive the termination hereof.  As used herein, “Recognized Environmental Condition” shall have the meaning set out for the same in ASTM Practice E 2247-08.  

8.    Condition of Property; Damage; Condemnation.

(a)    Seller agrees that at the Closing the Property shall be in the same condition as exists on the date hereof, subject to natural wear and tear, condemnation and casualties beyond Seller’s control, the Permitted Encumbrances and the Timber Cutting Agreements.  Purchaser acknowledges and agrees that Seller has sold and conveyed to third parties the right harvest and remove certain timber from the Property pursuant to the Timber Cutting Agreements.  During the term of this Agreement, Seller shall neither cut or remove nor permit the cutting or removal of any timber or trees which are included as part of the Property, subject to the Permitted Encumbrances and the Timber Cutting Agreements.  

(b)    If at any time prior to the Closing, the Property or any part thereof (including, but not limited to, any timber or trees which are included as part of the Property) is destroyed or damaged by fire or other Casualty (as hereinafter defined), Seller shall deliver to Purchaser prompt written notice of such destruction or damage along with the amount of such damage (calculated as the value of the destroyed or damaged Property less the salvage value of such destroyed or damaged Property), and the transactions contemplated by this Agreement shall be subject to the provisions of this Section 8(b).  The date of the Closing shall be extended to the extent necessary to permit the compliance with all procedures set forth in this Section 8(b).

(i)        If the amount of such damage does not exceed $100,000 (the “Threshold Amount”), then Purchaser shall be required to purchase the Property in accordance with this Agreement without a reduction of the Purchase Price.  

(ii)        If the amount of such damage exceeds the Threshold Amount but does not exceed $3,000,000, then Purchaser shall be required to purchase the Property in accordance with this Agreement, provided that the Purchase Price shall be reduced by an amount equal to the amount of such damage.

(iii)        If the amount of such damage exceeds $3,000,000, then Purchaser, at its sole option, shall elect by delivering written notice to Seller either (A) to cancel this Agreement, whereupon Escrow Agent shall promptly return the Earnest Money to Purchaser and no party hereto shall have any further rights or obligations hereunder (except as may otherwise be expressly provided herein), or (B) to purchase the Property in accordance with this Agreement, provided that the Purchase Price shall be reduced by an amount equal to the amount of such damage.  Subject to Section 8(b)(iv), failure of Purchaser to deliver such written notice to Seller within fifteen (15) days following receipt of Seller’s written notice shall be deemed an election of clause (B).

(iv)        If Purchaser, by delivering written notice to Seller within fifteen (15) days following Seller’s delivery of written notice of the damage, disputes the amount of damage reported by Seller, Purchaser and Seller shall attempt in good faith to resolve such dispute and agree upon the amount of the damage. If Purchaser and Seller 

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are unable to agree as to the amount of damage from fire or other Casualty on or before ten (10) days after Purchaser delivers to Seller written notice of its dispute, then the amount of damage will be determined in accordance with Section 23 of this Agreement.

(c)    If at any time prior to the Closing, any action or proceeding is filed or threatened under which any portion of the Property may be taken pursuant to any law, ordinance or regulation by condemnation or the right of eminent domain, Seller shall deliver to Purchaser prompt notice thereof.  To the extent such action or proceeding would result in the taking of Three Thousand (3,000) acres or more, then Purchaser at its sole option shall elect, by delivering written notice to Seller within fifteen (15) days following Seller’s delivery of notice to Purchaser, either (i) to cancel this Agreement, whereupon Escrow Agent shall promptly return the Earnest Money to Purchaser and no party hereto shall have any further rights or obligations hereunder (except as may otherwise be expressly provided herein), or (ii) to purchase the Property pursuant to this Agreement, notwithstanding such action or proceeding.  Failure by Purchaser to deliver written notice to Seller of its election within such fifteen (15) day period shall be deemed an election of clause (ii).  If the action or proceeding would result in the taking of not more than Three Thousand (3,000) acres, or if Purchaser elects or is deemed to elect clause (ii), then Purchaser shall receive a credit against the Purchase Price in the amount of all proceeds of any awards payable with respect to the Property, or, if such amount is not known at the time of the Closing, the Purchase Price shall not be reduced and Seller shall assign to Purchaser at the Closing all of Seller’s right to such proceeds from such action or proceeding.  To the extent such action or proceeding would result in the taking of Three Thousand (3,000) acres or more, the date of the Closing shall be extended to the extent necessary to permit the exercise of such election by Purchaser.

9.    Warranties and Representations.

(a)    Seller hereby warrants and represents to Purchaser as of the Effective Date and as of the date of Closing that:
 
(i)        Seller has the full right, power, and authority to enter into and perform this Agreement; and no consent, approval, order or authorization of any court or other governmental entity is required to be obtained by Seller in connection with the execution and delivery of this Agreement or the performance hereof by Seller.

(ii)        attached hereto as Exhibit D is a true and accurate summary of all unrecorded encumbrances created by Seller (other than the Supply Agreements and the Timber Cutting Agreements) and currently affecting the Property (the “Unrecorded Encumbrances”).  The Unrecorded Encumbrances remain in full force and effect and have not been modified or amended, except as indicated on said Exhibit D.  To Seller’s actual knowledge, no event or condition exists or has occurred which with notice, the passage of time or otherwise would constitute a default or event of default under any of the Unrecorded Encumbrances.

(iii)        attached hereto as Exhibit E is a true and accurate summary of all timber cutting agreements currently affecting the Property (the “Timber Cutting Agreements”).  To Seller’s actual knowledge, no event or condition exists or has 

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occurred which with notice, the passage of time or otherwise would constitute a default or event of default under any of the Timber Cutting Agreements. 

(iv)        to Seller’s actual knowledge, no event or condition exists or has occurred which with notice, the passage of time or otherwise would constitute a default or event of default under any of the Supply Agreements.  The Supply Agreements remain in full force and effect and have not been modified or amended.
    
(v)        Seller has received no written notice of any threatened or contemplated actions against Seller or the Property based upon the presence on the Property of any species listed as threatened or endangered under the Endangered Species Act of the United States or any law of the State of South Carolina protecting endangered or threatened animal or plant species, and Seller has no actual knowledge of the current or past presence on the Property of any such threatened or endangered species on the Property.

(vi)        there is no pending or, to Seller’s actual knowledge, threatened litigation, action or proceeding (including, but not limited to, any condemnation or eminent domain action or proceeding or any litigation regarding the location of lines and corners of the Property or any dispute regarding adverse possession) before any court, governmental agency or arbitrator which may adversely affect Seller’s ability to perform this Agreement or which directly involves the Property.

(vii)        this Agreement and the performance hereof by Seller will not contravene any contractual restriction binding on Seller, subject to any consent or approval rights in the Log Agreements or Supply Agreements.

(viii)        Seller (which for this purpose includes Seller’s partners, members, principal stockholders and any other constituent entities) (x) has not been designated as a “specifically designated national and blocked person” on the most current list published by the U.S. Treasury Department Office of Foreign Assets Control at its official website, <http://www.treas.gov/ofac/t11sdn.pdf> or at any replacement website or other replacement official publication of such list and (y) is currently in compliance with and will at all times during the term of this Agreement remain in compliance with the regulations of the Office of Foreign Asset Control of the Department of the Treasury and any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action relating thereto.

(ix)        except as may be disclosed on the Phase I, neither Seller nor, to Seller’s actual knowledge, any other person has used any portion of the Property as a land fill or as a dump to receive garbage, refuse, or waste, whether or not hazardous (other than unauthorized household refuse dump sites typical of rural timberlands not more than 1/4 acre in size), and neither Seller nor, to Seller’s actual knowledge, any other person has stored, handled, installed or disposed in, on or about the Property any Hazardous Substance, except for, in accordance with applicable law, (A) the use of motor vehicle lubricants and fuels, and (B) the application of silvicultural and agricultural chemicals.  For 

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purposes of this warranty, the term “Hazardous Substance” means any chemical, compound, constituent, material, waste, contaminant (including petroleum, crude oil or any fraction thereof) or other substance, defined as hazardous or toxic, or otherwise regulated by any of the following laws and regulations promulgated thereunder as amended from time to time prior to the Effective Date:  (1) the Comprehensive Environmental Response, Compensation and Liability Act (as amended by the Superfund Amendments and Reauthorization Act), 42 U.S.C. § 9601 et seq.; (2) the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq.; (3) the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq.; (4) the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; (5) the Clean Water Act, 33 U.S.C. § 1251 et seq.; (6) the Clean Air Act, 42 U.S.C. § 1857 et seq.; and (7) all laws of the State of South Carolina that are based on, or substantially similar to, the federal statutes listed in clauses (1) through (6) of this sentence.

(x)        Except for the Supply Agreements and the Timber Cutting Agreements:  (A) no third party has any rights to enter upon the Property to harvest and remove any timber therefrom; and (B) no timber or trees have been removed or harvested from the Property or affected by any Casualty causing damage in excess of the Threshold Amount since January 18, 2016 (the “Inventory Date”). For purposes of this Agreement, “Casualty” shall mean any physical damage to or loss of the timber on any portion of the Property by fire, earthquake, flood, insects, disease or other calamity, or as a result of timber trespass or unauthorized harvest.

(xi)        except for the Unrecorded Encumbrances, the Supply Agreements, and the Timber Cutting Agreements, to Seller’s actual knowledge, there are no unrecorded contracts, leases, or other agreements that affect the ownership, use or operation of the Property and that would be binding on Purchaser after the Closing Date.

(xii)        Seller has not engaged in active mining operations conducted on the Property during the past ten (10) years, and Seller has no actual knowledge of any proposed mineral activity on the Property.

(xiii)    The Supply Agreements encumber only the Property and the TP Property (as hereinafter defined).

(xiv)    FIATP SSF Parent LLC, a Delaware limited liability company (“FIATP SSF Parent”), has the right to fifty percent (50%) or more of the profits of Seller or the right in the event of dissolution to fifty percent (50%) or more of the assets of the Seller, and FIA Timber Partners Special Situation Fund, L.P., a Delaware limited partnership (“FIA SS Fund”), has the right to fifty percent (50%) or more of the profits of FIATP SSF Parent or the right in the event of dissolution to fifty percent (50%) or more of the assets of FIATP SSF Parent, and no single person or entity or group of affiliated persons or entities has either the right to fifty percent (50%) or more of the profits of FIA SS Fund or the right in the event of dissolution to fifty percent (50%) or more of the assets of FIA SS Fund.

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(b)    References to the “best of Seller’s knowledge” and/or “Seller’s actual knowledge” shall refer only to the actual current, combined knowledge, without additional specific investigation, of Jon E. Sokol and Charles L. VanOver, and shall not be construed, by imputation or otherwise, to refer to any other officer, agent, manager, representative, advisor, or employee of Seller or any affiliate thereof or to impose upon such designated employee any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains.

(c)    Purchaser hereby warrants and represents to Seller that Purchaser has the full right, power and authority to enter into and perform this Agreement; and no consent, approval, order or authorization of any court or other governmental entity is required to be obtained by Purchaser in connection with the execution and delivery of this Agreement or the performance hereof by Purchaser.

(d)    This paragraph 9 shall survive Closing for a period of one (1) year after the Closing Date (the “Survival Period”).  No claim for a breach of any Seller representation or warranty, or the failure or default of a covenant or agreement of Seller that survives Closing, shall be actionable or payable unless written notice containing a description of the specific nature of such breach shall have been delivered by Purchaser to Seller prior to the expiration of said Survival Period. The maximum amount that Purchaser shall be entitled to collect from Seller in connection with all suits, litigation or administrative proceedings resulting from all breaches by Seller of any Seller Representations or any covenants of Seller shall in no event exceed five percent (5%) of the Purchase Price in the aggregate; provided, however, the limitation on Seller’s liability for breach of warranty shall not apply to the representation and warranty in 9(a)(xiv) above.

10.    Brokerage Commission.  Seller and Purchaser warrant each to the other that they have not dealt with any real estate broker or salesperson with regards to this transaction.  Seller shall indemnify and hold Purchaser harmless from all claims, losses, liabilities and expenses (including but not limited to reasonable attorneys’ fees and court costs actually incurred) which Purchaser may incur on account of any claim which may be asserted against Purchaser, whether or not meritorious, by any broker or other person on the basis of any agreements made or alleged to have been made by or on behalf of Seller.  Purchaser shall indemnify and hold Seller harmless from all claims, losses, liabilities and expenses (including but not limited to reasonable attorneys’ fees and court costs actually incurred) which Seller may incur on account of any claim which may be asserted against Seller, whether or not meritorious, by any broker or other person on the basis of any agreements made or alleged to have been made by or on behalf of Purchaser. This paragraph 10 shall survive the Closing or any termination, cancellation or expiration of this Agreement.

11.    Income; Taxes; Expenses.  

(a)    All rent and other income and all expenses relating to the Property shall be prorated as of the date of Closing.  If the actual rent and other income and all expenses relating to the Property is not known as of the date of Closing, then within thirty (30) days after Closing, Seller and Purchaser shall reconcile such actual rent and other income and all expenses with the prorations done at Closing.  This obligation shall survive the Closing.

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(b)    All ad valorem real property taxes and special assessments for the year 2016 shall be prorated as of the Closing Date.  If actual tax bills for the year of Closing are not available, said taxes shall be prorated based on tax bills for the previous calendar year and the parties hereto agree to cause a reproration of said taxes upon the receipt of tax bills for the year of Closing.  This obligation to reprorate shall survive the Closing of the purchase and sale contemplated hereby.  If the Property is not designated a separate tax parcel, said taxes shall be adjusted to an amount bearing the same relationship to the total tax bill which the acreage contained within the Property bears to the acreage contained within the property included within said tax bill.  Any payments and amounts due, payable or paid to or collected by Seller pursuant to such Unrecorded Encumbrances, shall be prorated as of the Closing Date.    

(c)    Purchaser and Seller shall each pay one-half of all transfer taxes, documentary stamp taxes and other taxes, fees, costs and expenses in connection with the sale of the Property and the recordation of the Deed.  

(d)    Seller shall pay any and all fees, costs and expenses for title searches and examinations and other title-related charges and all title insurance premiums in connection with obtaining the Title Commitment.  Purchaser shall pay all title insurance premiums for the issuance of Purchaser’s title insurance policy.  

(e)    Each party shall pay its respective costs and expenses of legal representation.

(f)    Purchaser shall be solely responsible and liable for any deferred, rollback, recapture or other tax or assessment (“Rollback Taxes”) imposed or charged with respect to the Property or any part thereof for or relating to any periods prior to or subsequent to the Closing based on any change of use of the Property by Purchaser.  Seller shall be responsible for any Rollback Taxes due based upon the actions of Seller, including but not limited to the sale of the Property to Purchaser.  The provisions of this subparagraph (f) shall survive the Closing.

12.    Earnest Money; Default; Remedies.  

(a)    If the purchase and sale of the Property contemplated hereby is not consummated because of a default by Purchaser under this Agreement, then Seller shall have the right, as its sole and exclusive remedy, to require Escrow Agent to pay the Earnest Money to Seller as full liquidated damages and not as a penalty (the parties hereto acknowledging that Seller’s damages as a result of such default are not capable of exact ascertainment and that said liquidated damages are fair and reasonable).

(b)    If the purchase and sale of the Property contemplated hereby is not consummated because of a default by Seller under this Agreement, then Purchaser , as its sole and exclusive remedy, shall have the right either (i) to terminate this Agreement, whereupon Escrow Agent will return the Earnest Money to Purchaser, and the parties hereto will have no further rights or obligations hereunder (except as otherwise expressly provided herein), (ii) to waive any such default and proceed to Closing, (iii) to seek specific performance of this Agreement, or (iv) if specific performance is not available to Purchaser, Purchaser shall be permitted entitled to reimbursement 

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of up to, but not to exceed, $100,000, of its reasonable third party cost and expenses incurred in connection with this Agreement. 

(c)    Simultaneously herewith, Purchaser and FIATP Timber LLC are entering into that certain Purchase and Sale Agreement (“TP PSA”) for the purchase and sale of approximately 30,060 acres of timberlands in South Carolina (the “TP Property”).  Seller’s obligation to close the purchase and sale pursuant hereto shall be conditioned upon Purchaser’s closing of the TP PSA.  If the TP PSA is terminated for any reason other than due to a default of the purchaser thereunder, then this Agreement will automatically terminate, Escrow Agent shall deliver the Earnest Money to Purchaser, and neither party will have any further rights, duties or obligations hereunder other than those which expressly survive a termination hereof. If the TP PSA is terminated due to a default of the purchaser thereunder, then Seller shall have the right to terminate this Agreement whereupon Escrow Agent shall pay the Earnest Money to Seller as full liquidated damages and not as a penalty (the parties hereto acknowledging that Seller's damages as a result of such default are not capable of exact ascertainment and that said liquidated damages are fair and reasonable).

(d)    The duties of Escrow Agent shall be as follows:

(i)         During the term of this Agreement, Escrow Agent shall hold and deliver the Earnest Money in accordance with the terms and provisions of this Agreement.

(ii)         If this Agreement shall be terminated by the mutual written agreement of Seller and Purchaser, or if Escrow Agent shall be unable to determine at any time to whom the Earnest Money should be delivered, or if a dispute shall develop between Seller and Purchaser concerning to whom the Earnest Money should be delivered, then in any such event, Escrow Agent may request joint written instructions from Seller and Purchaser and shall deliver the Earnest Money in accordance with such joint written instructions.  In the event that such written instructions shall not be received by Escrow Agent within ten (10) days after Escrow Agent has served a written request for instructions upon Seller and Purchaser, Escrow Agent shall have the right to pay the Earnest Money into a court of competent jurisdiction and interplead Seller and Purchaser in respect thereof, and thereafter Escrow Agent shall be discharged of any obligations in connection with this Agreement.

(iii)         If costs or expenses are incurred by Escrow Agent because of litigation or a dispute between Seller and Purchaser arising out of the holding of the Earnest Money in escrow, Seller and Purchaser shall each pay Escrow Agent one-half of such costs and expenses.  Except for such costs and expenses, no fee or charge shall be due or payable to Escrow Agent for its services as escrow holder.

(iv)         By joining herein, Escrow Agent undertakes only to perform the duties and obligations imposed upon it under the terms of this Agreement and expressly does not undertake to perform any of the other covenants, terms and provisions incumbent upon Seller and Purchaser hereunder.

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(v)         Purchaser and Seller hereby agree and acknowledge that Escrow Agent assumes no liability in connection herewith except for any loss, costs or damage arising out of Escrow Agent’s own gross negligence or willful misconduct; that Escrow Agent shall not be liable or responsible for any loss occurring which arises from bank failure or error, insolvency or suspension, or a situation or event which falls under the Federal Deposit Insurance Corporation (FDIC) coverage (Seller and Purchaser are aware that FDIC coverage applies to a maximum amount of $250,000 per depositor, as may be modified by the FDIC from time to time); and that Escrow Agent may seek advice from its own counsel and shall be fully protected in any action taken by it or omitted to be taken by it in good faith in accordance with the opinion of its counsel.

13.    Assignment.  Except as otherwise expressly permitted in this Agreement, neither party hereto shall assign its rights or obligations hereunder, in whole or in part, without the prior written consent of the other party, which written consent will not be unreasonably withheld of delayed.  Notwithstanding the foregoing, (a) Purchaser shall have the right to assign its rights and obligations under this Agreement in whole or in part to any affiliate or affiliates of Purchaser, provided that Purchaser shall remain liable for all obligations under this Agreement; and (b) Purchaser may assign this Agreement at the Closing, but not earlier, to any institutional lender or lenders as security for obligations to such lender or lenders in respect of financing arrangements of Purchaser or any affiliates thereof with such lender or lenders.

14.    No Waiver.  No action or failure to act by any party hereto shall constitute a waiver of any right or duty afforded to such party under this Agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach of this Agreement except as may be specifically agreed in writing.

15.    Governing Law.  This Agreement shall be governed by the laws of the State of South Carolina.  

16.    Notice.  Any and all notices, elections and communications required or permitted by this Agreement shall be made or given in writing and shall be delivered in person or sent by postage, pre-paid, United States Mail, certified or registered, return receipt requested, or by a recognized overnight courier such as FedEx or UPS, or by facsimile or e-mail, to the other parties at the addresses set forth below, or such other address as may be furnished by notice in accordance with this paragraph.  The date of notice given by personal delivery shall be the date of such delivery.  The effective date of notice by mail, facsimile, email or overnight courier shall be the date such notice is mailed, faxed, emailed or deposited with such overnight courier.  In the event that the last day for giving notice hereunder or for the performance of any obligation hereunder, including closing, falls upon a Saturday, Sunday or a legal holiday, the last day for said notice or performance shall be deemed to be the next day which is neither a Saturday, Sunday nor a legal holiday.

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Seller:    FIATP SSF TIMBER LLC
c/o Forest Investment Associates L.P.
15 Piedmont Center
Suite 1250
Atlanta, Georgia 30305
Attention:  Charles L. VanOver
Facsimile No.: (404) 261-9574
Email:  cvanover@forestinvest.com

with a copy to:       Sutherland Asbill & Brennan LLP
999 Peachtree Street, N.E.
Suite 2300
Atlanta, Georgia  30309-3996
Attention:  Kevin Thomas, Esq.
Facsimile No.: (404) 853-8806
Email:  kevin.thomas@sutherland.com

Purchaser:    c/o CatchMark Timber Trust
Five Concourse Parkway
Suite 2325
Atlanta, Georgia 30328
Attention:  John D. Capriotti
Facsimile No.:  (770) 243-8172
Email:  john.capriotti@catchmark.com

with a copy to:    Smith, Gambrell & Russell, LLP
Suite 3100, Promenade II
1230 Peachtree Street, N.E.
Atlanta, Georgia  30309-3592
Attention:  Mark G. Pottorff
Facsimile:  (404) 685-6897
Email: mpottorff@sgrlaw.com

Escrow Agent:    First American Title Insurance Company
6 Concourse Parkway
Suite 2000
Atlanta, Georgia 30328
Attention: Kevin Wood
Phone: (770) 390-6533
Fax: (866) 735-3071
Email: kwwood@firstam.com

17.    Entire Agreement.  This Agreement contains the entire agreement among the parties hereto with respect to the subject matter hereof and cannot be amended or supplemented except by a written agreement signed by all parties.

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18.    Captions.  The captions of paragraphs in this Agreement are for convenience and reference only and are not part of the substance hereof.

19.    Severability.  In the event that any one or more of the provisions, paragraphs, words, clauses, phrases or sentences contained in this Agreement, or the application thereof in any circumstance is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision, paragraph, word, clause, phrase or sentence in every other respect and of the remaining provisions, paragraphs, words, clauses, phrases or sentences of this Agreement, shall not be in any way impaired, it being the intention of the parties that this Agreement shall be enforceable to the fullest extent permitted by the laws of the State of South Carolina. 

20.    Counterparts.  This Agreement may be executed in multiple counterparts which shall be construed together as one instrument.  This Agreement, including any amendments thereto, may be executed and delivered by facsimile transmission, with the intention that such facsimile signature and delivery shall have the same effect as an original signature and actual delivery.

21.    Binding Effect.  This Agreement shall bind the parties hereto and their respective heirs, legal representatives, successors and assigns.

22.    Time; Business Day.  

(a)    Time is of the essence of this Agreement.

(b)    As used in this Agreement, the term “business day” shall mean any day that is not a Saturday, a Sunday, a legal holiday in the United States of America, or a legal holiday in the State of Georgia.

23.    Resolution of Disputes.  In the event that any provision of this Agreement refers to this Section 23 for a determination of the amount of any change in the value of the Property or the fair market value of any portion(s) of the Property or the timber on the Property, Seller and Purchaser will promptly make a good faith attempt to mutually agree upon such fair market value.  In the event Seller and Purchaser are unable to so agree within five (5) days after notice of the event or circumstance necessitating the need for such determination from either party to the other party, Seller and Purchaser will each promptly appoint an independent forestry consultant, each of which may be a consultant previously engaged by the appointing party with respect to the Property, and such two consultants will in turn promptly select a third independent forestry consultant (which third consultant may not be a consultant previously engaged by either party) to act with them in a panel to determine the appropriate fair market valuation.  The panel of consultants will reach a binding decision within thirty (30) days of the selection of the third consultant, and the decision of the panel of consultants as to the fair market valuation in dispute will be final.  Seller shall pay the cost of its appointed consultant; Purchaser shall pay the cost of its appointed consultant; and Seller and Purchaser shall each pay one-half (1/2) of the cost of the third consultant.  The Closing Date shall be extended to the extent necessary for such consultants to reach such decision.

17
SGR/13818384.2

24.    Public Announcements.  Seller and Purchaser hereby agree that, except as required by applicable laws or any applicable stock exchange rules, all press releases and other public announcements with respect to the transactions contemplated by this Agreement, including the time, form and content of such release or announcement, shall be made only with the mutual written agreement of Purchaser and Seller; provided, however, that any disclosure required to be made under applicable law may be made only if a party required to make such disclosure has determined in good faith that it is necessary to do so and has used reasonable efforts, prior to the issuance of the disclosure, to provide the other party with a copy of the proposed disclosure and to discuss the proposed disclosure with the other party.  The foregoing obligations shall survive any termination, cancellation or expiration of this Agreement or the Closing of the purchase and sale contemplated hereby.  

25.    Patriot Act Compliance.   Purchaser represents that neither Purchaser nor any of Purchaser’s affiliates, nor any of their respective partners, or members, and none of their respective employees, officers, directors, representatives or agents is, nor will they become, a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and will not attempt to assign this contract to, contract with or otherwise engage in any dealings or transactions or be otherwise associated with such persons or entities.  Any assignee of this contract is deemed to make this representation upon acceptance of an assignment of this contract.  Purchaser’s primary address is as set forth in the notice section of this Agreement.  Purchaser hereby covenants and agrees that if Purchaser obtains knowledge that Purchaser or any owner of any controlling interest in Purchaser becomes listed on the foregoing or is indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering, Purchaser will immediately notify Seller in writing, and in such event, Seller will have the right to terminate this Agreement without penalty or liability to Seller immediately upon delivery of written notice thereof to Purchaser, in which event the Earnest Money will be returned to Purchaser and neither party will have any further rights or obligations under this Agreement, except for such as specifically survive termination.   

26.    Effective Date.  The “Effective Date” of this Agreement will be the date the later of Seller and Purchaser has executed this Agreement, as indicated on the signature page(s) below.  

27.    Incorporation of Exhibits.  All exhibits referred to herein are hereby incorporated in this Agreement by this reference.

28.    As Is.    PURCHASER ACKNOWLEDGES THAT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 9 OR IN ANY DOCUMENT DELIVERED AT CLOSING: (I) NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, HAVE BEEN OR ARE BEING MADE BY OR ON BEHALF OF SELLER OR ANY OTHER PERSON, INCLUDING WITH RESPECT TO THE CONDITION 

18
SGR/13818384.2

OR VALUE OF THE PROPERTY, AND SELLER HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES RELATING TO THE PROPERTY, EITHER EXPRESS OR IMPLIED, INCLUDING MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND SUITABILITY FOR ITS INTENDED USE, (II) IN ENTERING INTO THIS AGREEMENT, PURCHASER HAS NOT RELIED ON AND DOES NOT RELY ON ANY SUCH REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, BY OR ON BEHALF OF SELLER OR ANY OTHER PERSON, AND (III) PURCHASER SHALL ACQUIRE THE PROPERTY IN “AS IS, WHERE IS, AND WITH ALL FAULTS” CONDITION ON THE CLOSING DATE, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT.  

29.    Property Data and Materials; Confidentiality Agreement.   Purchaser acknowledges that, except as may otherwise be provided in Section 9, any information or materials provided or made available to Purchaser or its representatives in hard copy, by facsimile or electronic transmission or via the online data room managed by Forest Investment Associates, including, without limitation, any cost or other estimates, projections, acreage, and timber information, environmental reports, title commitments, and other title policies, are not and shall not be deemed representations or warranties by or on behalf of Seller.  Purchaser acknowledges and agrees that Purchaser is and will remain, until the Closing, subject to and bound by all of the prohibitions, requirements, restrictions and other provisions of that certain Confidentiality Agreement, by and between Forest Investment Associates L.P. and Purchaser, and reaffirms all of its obligations and liabilities thereunder.  This Section 29 shall survive any termination, cancellation or expiration of this Agreement or the Closing of the purchase and sale contemplated hereby. 

30.    No Survival.  Except as may otherwise expressly be provided herein, the provisions of this Agreement shall not survive the Closing of the purchase and sale contemplated hereby and shall be merged into the delivery of the Deed and other documents and the payment of all monies pursuant hereto.

31.     No Solicitation.  Seller agrees that it shall not after the Effective Date, directly or indirectly, through any officer, director, employee, agent or otherwise, (a) solicit, initiate or encourage submission of proposals, offers or expressions of interest from any person or entity relating to any acquisition or purchase of all or a portion of the Property (any of the foregoing proposals, offers or expressions of interest being referred to herein as an “Acquisition Proposal”), or (b) participate in any negotiations or discussions regarding, or furnish to any person any nonpublic information with respect to, or otherwise cooperate in any way with, or assist or participate in, facilitate or encourage, any Acquisition Proposal.

32.    Conditions.
(a)    Unless waived by Purchaser, the obligations of Purchaser under this Agreement are expressly made subject to the fulfillment in all respects of the following conditions precedent:

(i)        the truth and accuracy in all material respects as of the date of Closing of each and every warranty and representation herein made by Seller; and

19
SGR/13818384.2

(ii)        Seller’s timely performance of and compliance in all material respects with each and every term, condition, agreement, restriction and obligation to be performed and complied with by Seller under this Agreement.

In the event any of the above conditions is not satisfied on or before the Closing, Purchaser will have the right, exercisable at Purchaser’s sole election, to exercise the remedies described in Section 12(b).
(b)    Unless waived by Seller, the obligations of Seller under this Agreement are expressly made subject to the fulfillment in all respects of the following conditions precedent:

(i)        the truth and accuracy in all material respects as of the date of Closing of each and every warranty and representation herein made by Purchaser; and

(ii)        Purchaser’s timely performance of and compliance in all material respects with each and every term, condition, agreement, restriction and obligation to be performed and complied with by Purchaser under this Agreement.

In the event any of the above conditions is not satisfied on or before the Closing, Seller will have the right, exercisable at Seller’s sole election, to exercise the remedies described in Section 12(a).

33.    Harvest Credit.  Within ten (10) business days after the Effective Date, Seller shall provide to Purchaser an updated report of all harvesting conducted, and all harvesting remaining to be conducted, pursuant to the Timber Cutting Agreements.  The parties agree that timber cutting operations under the Timber Cutting Agreements shall proceed as normal during the term of this Agreement, and that Purchaser shall receive a credit against the Purchase Price at Closing equal to Seller’s net proceeds received from Timber Cutting Agreements for the period after the Inventory Date. Within thirty (30) days after Closing, Seller shall provide to Purchaser and updated report of all harvesting conducted pursuant to the Timber Cutting Agreements, and at such time Seller shall also deliver to Purchaser any additional net proceeds received from Timber Cutting Agreements for the period after the Inventory Date not credited to Purchaser at Closing.

34.    Deleted Parcels.  If any portion of the Property is to be excluded from the transaction pursuant to Section 7 above or as provided elsewhere in this Agreement (a “Deleted Parcel”) and such Deleted Parcel comprises less than all of a discrete parcel of land with an adequate, insurable legal description, Seller shall determine (subject to Purchaser’s right of reasonable approval as to shape or configuration) the exact boundaries and dimensions of the portion of the Property to be retained by Seller (provided that any such Deleted Parcel shall have a minimum size of the lesser of (i) forty (40) acres, and (ii) the entire such discrete parcel, and in any event the size and dimensions of such Deleted Parcel shall be configured as to produce a marketable parcel), and if necessary, Seller shall make arrangements to have said portion of the Property surveyed by a surveyor licensed to practice in South Carolina in order to produce an insurable legal description 

20
SGR/13818384.2

for said retained parcel.  Seller and Purchaser shall each pay one-half of all costs of any surveys so obtained.  Seller shall also obtain any and all subdivision approvals required for Seller’s retention of the Deleted Parcels.  Purchaser agrees to grant without cost to Seller easements over and across any portion of the Property acquired by Purchaser upon reasonable terms and over reasonable routes as may be necessary for Seller’s vehicular and pedestrian access to as well as utilities serving any Deleted Parcels, and Seller agrees to grant to Purchaser without cost easements over and across the Deleted Parcels (and any other portion of the Property retained by Seller) upon reasonable terms and over reasonable routes as may be necessary for Purchaser’s vehicular and pedestrian access to as well as utilities serving the Property.  Seller shall cause all Deleted Parcels to be released from the Supply Agreements at or prior to Closing.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
35.    

IN WITNESS WHEREOF, this Agreement has been duly executed, sealed and delivered by the parties hereto the day and year first above written.

	
			
	Date of Seller’s Execution:

________________________

	 
	SELLER:

FIATP SSF TIMBER LLC, a Delaware limited liability company

By:                 
Name:                
Title:                 

	 
	 
	 

	Date of Purchaser’s Execution:

________________________

	 
	PURCHASER:

CATCHMARK TIMBER TRUST, INC., a
Maryland corporation

By:                 
Name:                
Title:                 

SIGNATURES CONTINUED ON FOLLOWING PAGE 

Escrow Agent executes this Agreement for the purpose of acknowledging and agreeing to perform its duties as Escrow Agent hereunder.

	
			
	 
	 
	

ESCROW AGENT:

FIRST AMERICAN TITLE INSURANCE COMPANY

By:               

	 
	 
	 

SIGNATURES CONTINUED ON FOLLOWING PAGE 
Broad Arrow executes this Agreement for the purpose of acknowledging and agreeing to perform its obligations pursuant to Section 5(f) hereof.

	
			
	 
	 
	

BROAD ARROW:

BROAD ARROW TIMBER COMPANY LLC, a Delaware limited liability company

By:               
Name:               
Title:               

	 
	 
	 

Schedule of Exhibits

Exhibit A     -     Property Descriptions and Maps
Exhibit B    -    Form of Deed
Exhibit C    -    Permitted Encumbrances
Exhibit D    -    Schedule of Unrecorded Encumbrances
Exhibit E    -    Timber Cutting Agreements 
Exhibit F    -    Owner’s Affidavit 
Exhibit G    -    Form of Assignment of Unrecorded Encumbrances 
Exhibit H    -    Form of Estoppel and Recognition Agreement

Schedule 7    -    Schedule 7 Property

EXHIBIT A

Property Descriptions and Maps

EXHIBIT B

Form of Deed
[Note: Subject to title company approval]

Prepared by and 
after recording return to: 

Robert H. Mozingo, Esquire
Nexsen Pruet, LLC
205 King Street, Suite 400
Charleston, SC  29401

TMS #:                

SPECIAL WARRANTY DEED
(_________ County, SC)

STATE OF SOUTH CAROLINA    

COUNTY OF UNION        

THIS INDENTURE, made as of the ____ day of __________, 2016, between FIATP SSF TIMBER LLC, a Delaware limited liability company, c/o Forest Investment Associates, L.P., 15 Piedmont Center, Suite 1250, Atlanta, Georgia 30305 (“Grantor”), and [CATCHMARK ENTITY], a _______________________, c/o CatchMark Timber Trust, Inc., 5 Concourse Parkway, Suite 2325, Atlanta, Georgia 30328 (“Grantee”).

 WITNESSETH, that the Grantor, for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration, in hand paid at and before the sealing and delivery of these presents, the receipt of which is hereby acknowledged, has GRANTED, SOLD and CONVEYED, and by these presents does hereby GRANT, SELL and CONVEY unto the Grantee that certain real property located in __________ County, South Carolina, more particularly described on Exhibit “A” attached hereto and made a part hereof, TOGETHER WITH (i) all standing trees or timber located thereon, (ii) any improvements thereon, (iii) all right, title and interest in and to all gas, oil, minerals, coal, sand, gravel and all other substances or minerals of any kind or character underlying or relating to such property to the extent not retained by, or conveyed out by, Grantor’s predecessors in title, and (iv) all other privileges, appurtenances, easements and other rights appertaining to such property (collectively, the “Property”).

The Property is being conveyed subject to the matters set forth on Exhibit “B” attached hereto and made a part hereof (the “Permitted Encumbrances”), reference to which shall not serve to reimpose the same.  

TO HAVE AND TO HOLD the Property, together with any and all rights and appurtenances thereto in anywise belonging to Grantor, unto Grantee, its successors and assigns, FOREVER, and Grantor does hereby bind itself and its successors and assigns to WARRANT AND FOREVER DEFEND all and singular the Property unto Grantee, its successors and assigns, against every person whosoever lawfully claiming or to claim the same or any part thereof, by, through or under Grantor, but not otherwise, subject to the Permitted Encumbrances.

[Add Derivation Clause]

[REMAINDER OF PAGE LEFT BLANK]

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the Grantor has signed, sealed and delivered this deed, effective as of the day and year first written above.

GRANTOR:

FIATP TIMBER SSF LLC, a Delaware limited
liability company

By:  ______________________(SEAL)
Name: _________________________
Its: ____________________________

Signed and Delivered                
in the Presence of    
                    
Print Name: ____________________

                    
Print Name: ____________________

[NOTARY ACKNOWLEDGMENT ON NEXT PAGE]

STATE OF _____________________    )
)    ACKNOWLEDGEMENT
COUNTY OF ___________________    )

I, _______________________________, a Notary Public in and for said County and State, hereby certify that _____________________________, whose name as the __________________________ of Grantor, is signed to the foregoing instrument and who is known to me, acknowledged before me on this day that, being informed of the contents of the instrument, s/he, as such officer and with full authority, executed the same voluntarily (on the day the same bears date) on behalf of such limited liability company for and as the act of such limited liability company.
Given under my hand and official seal on the _____ day of __________, 2016.  
    
Notary Public
My commission expires:              
(affix notary seal)
Exhibit A to Deed

Legal Description

[To be attached]

Exhibit B to Deed

Permitted Encumbrances

[Insert final list at Closing from PSA]

EXHIBIT C

Permitted Encumbrances

		
	1.
	Ad valorem taxes not yet due and payable.

		
	2.
	All previous reservations, exceptions and conveyances of record by Seller’s predecessors in title of oil, gas, associated hydrocarbons, minerals and mineral substances, and royalty and other minerals rights and interests.

		
	3.
	All matters that would be revealed by a current and accurate survey or inspection of the Property.

		
	4.
	Existing zoning and land use restrictions.

		
	5.
	Rights of parties in possession pursuant to the Unrecorded Encumbrances.

		
	6.
	The Pulpwood Supply Agreement, the Pulpwood Support Agreement, and the Stumpage Agreement

		
	7.
	Riparian rights of others in and to any creeks, rivers, lakes or streams located on or adjoining the Property.

		
	i.
	All matters and exceptions to title set forth in Seller’s vesting deed for the Property.

		
	ii.
	Access or lack of legal access to the Property.

		
	8.
	Existing road rights of way and the right of the public to use such roads.

		
	9.
	Existing railroad rights of way and easements.

		
	10.
	Existing utility easements and rights of way.

		
	11.
	All other matters appearing of record which do not materially and adversely affect the use of the Property as commercial timberlands.

		
	12.
	The Timber Cutting Agreements.

		
	13.
	[List specific exceptions listed in Purchaser’s final marked title commitment].

EXHIBIT D

Schedule of Unrecorded Encumbrances

Hunting Licenses

	
			
	COUNTY
	TRACT NAME
	LICENSEE

	 
	 
	 

	Orangeburg
	Branchville South
	North Edisto Hunt Club

	Orangeburg
	Branchville North
	North Edisto Hunt Club

	Bamberg
	Rivers Bridge South
	Still Hunt Club

	Bamberg
	Rivers Bridge West
	Still Hunt Club

	Lexington
	Justice
	Henzler Hunt Club

	Bamberg
	Govan
	Zorn Hunt Club

	Orangeburg
	Branchville South
	Oxbow Hunting Club

	Lexington
	Lawson
	Whitetail Hunt Club

	Lexington
	Branham Branch
	Whitetail Hunt Club

	Lexington
	Sharpes Hill
	Wilbur Hunt Club

	Orangeburg
	Willow Swamp
	Swamp Water Hunt Club

	Lexington
	Cliff
	Spires Hunt Club

	Lexington
	Calvery Church
	Wise Hunt Club

	Bamberg
	Rivers Bridge East
	Savannah Creek Hunt Club

	Calhoun
	Ott Sisters
	Whip-O-Wil Hunt Club

	Bamberg
	Hudson Collier
	Tony Hill Hunt Club

	Bamberg
	Burnside
	Sandifer Hunt Club

	Bamberg
	Jolly West
	River Hunt Club

	Bamberg
	Jolly East
	River Hunt Club

	Orangeburg
	Widener
	David Eidson Hunt Club

	Bamberg
	Wichman Cone West
	Midway Hunt Club

	Bamberg
	Wichman Cone East
	Midway Hunt Club

	Bamberg
	Little Salkehatchie
	Flatwoods Hunt Club

	Calhoun
	Hwy 135
	Spring Branch Hunt Club

	Calhoun
	Horse Neck
	Spring Branch Hunt Club

	Calhoun
	Catalina
	Spring Branch Hunt Club

	Bamberg
	Capernaum
	Southern Pines Hunt Club

	Orangeburg
	Hwy 172
	Lucas Hunt Club

	Orangeburg
	Bull Swamp
	Lucas Hunt Club

	Kershaw
	Lloyd
	Miller's Swamp Hunt Club

	Richland
	Murray 1
	Jumping Run Hunt Club

	Richland
	Murray 3
	Jumping Run Hunt Club

	Richland
	Murray 2
	Jumping Run Hunt Club

	Richland
	McEntire
	Tom's Creek Hunt Club

	Richland
	McEntire
	Tom's Creek Hunt Club

	Sumter
	Bland
	Summer Block Hunt Club

	Sumter
	Cuttino
	Reed Hunt Club

	Sumter
	Upper East Wateree
	Eastover Hunting & Fishing Club

	Sumter
	Lower East Wateree
	Eastover Hunting & Fishing Club

	Richland
	McEntire
	Gun Smoke Hunt Club

	Richland
	Murray 4
	Cook's Mountain Hunt Club

	Richland
	Murray 9
	Cook's Mountain Hunt Club

	Richland
	Murray 8
	Cook's Mountain Hunt Club

	Sumter
	Petersfield
	Petersfield Hunting Club

	Sumter
	Pocotaligo
	Pine Oak Hunt Club

	Richland
	Mill Site # 2
	Congaree Hunt Club

	Richland
	Mill Site
	Congaree Hunt Club

	Richland
	Scarborough #1
	Congaree Bluff Hunt Club

	Richland
	Scarborough #2
	Congaree Bluff Hunt Club

	Sumter
	Goza #3
	Buck Shot Hunt Club

	Sumter
	Goza #5
	Buck Shot Hunt Club

	Sumter
	Goza #4
	Buck Shot Hunt Club

	Sumter
	Goza #2
	Buck Shot Hunt Club

	Sumter
	Goza #1
	Buck Shot Hunt Club

	Sumter
	Upper East Wateree
	Sugarberry Hunting Club

	Sumter
	Goza #5
	Loose Knit Hunt Club

EXHIBIT E

Timber Cutting Agreements

	
						
	Contract Num
	County
	Harvest Type
	End Date
	Sale Acres
	Tracts

	373-15-18
	SUMTER
	Clear Cut
	7/14/2016
	180
	LOWER EAST WATEREE (13723010)

	373-15-22
	RICHLAND
	Plantation row thinnin
	10/2/2016
	157
	MURRAY #9 (13722560)

	373-15-23
	RICHLAND
	Plantation row thinnin
	10/6/2016
	70
	MURRAY #8 (13722550)

	373-15-24
	RICHLAND
	Plantation row thinnin
	10/8/2016
	92
	MURRAY #1 (13722480)

	373-15-27
	SUMTER
	Clear Cut
	12/10/2016
	43.4
	GOZA #1 (13722900)

	373-16-2
	RICHLAND
	Select Thinning (i.e. c
	1/12/2017
	33.71
	SCARBOROUGH #2 (13722590)

EXHIBIT F

Form Owner’s Affidavit

AFFIDAVIT AS TO LIENS AND POSSESSION

Personally appeared before me, the undersigned officer, ____________________, who, being first duly sworn, deposes and says on oath to the best of his actual knowledge, without independent investigation or inquiry, as follows:

1.    That he is the ________________ of __________________, a Delaware limited liability company ("Seller") and is duly authorized to make and give this Affidavit for and on behalf of Seller.

2.    That Seller is the owner of those certain tracts or parcels of real property located in 
_________________________________________ Counties, South Carolina, being more particularly described on Exhibit A attached hereto and incorporated herein by reference, subject to the matters set forth on Exhibit B attached hereto and incorporated herein by reference (the "Property").

3.    Seller is lawfully seized and possessed of the Property and has a good right to convey it, that there are no unrecorded easements, leases or agreements affecting the Property except as set forth on Exhibit B attached hereto, and that there are no rights or claims of parties in possession, except as set forth on Exhibit B attached hereto.

4.    There are no pending suits, proceedings, judgments, bankruptcies or executions against Seller which might affect the Property, except as set forth on Exhibit B attached hereto and that there are no liens or claims thereof, inchoate or otherwise, by laborers, materialmen, or others for improvements on the Property which might affect the Property.  

5.    No work, improvements or repairs have been made on the Property during the 125 days immediately preceding this date for which full payment has not been made, that there are no outstanding bills for labor and materials used in making improvements or repairs on the Property, or for services of architects, surveyors or engineers in connection therewith which have not been fully paid and there are no outstanding contracts for the making of improvements or repairs on the Property or on any property of which all or any portion of the Property is a part.

6.    Seller has received no notice of any default under any conditions, covenants or restrictions which affect the Property.

Sworn to and subscribed before                 ______________________________(SEAL)
me this _____ day of __________, 2016.                 

___________________________
Notary Public

My Commission Expires:

     [Notary Seal]
EXHIBIT A

[To be inserted]

EXHIBIT B

		
	1.
	Ad valorem taxes not yet due and payable.

		
	2.
	All previous reservations, exceptions and conveyances of record by Seller’s predecessors in title of oil, gas, associated hydrocarbons, minerals and mineral substances, and royalty and other minerals rights and interests.

		
	3.
	All matters that would be revealed by a current and accurate survey or inspection of the Property.

		
	4.
	Existing zoning and land use restrictions.

		
	5.
	Rights of parties in possession pursuant to the Unrecorded Encumbrances.

		
	6.
	The Pulpwood Supply Agreement, the Pulpwood Support Agreement, and the Stumpage Agreement

		
	7.
	Riparian rights of others in and to any creeks, rivers, lakes or streams located on or adjoining the Property.

		
	i.
	All matters and exceptions to title set forth in Seller’s vesting deed for the Property.

		
	ii.
	Access or lack of legal access to the Property.

		
	8.
	Existing road rights of way and the right of the public to use such roads.

		
	9.
	Existing railroad rights of way and easements.

		
	10.
	Existing utility easements and rights of way.

		
	11.
	All other matters appearing of record which do not materially and adversely affect the use of the Property as commercial timberlands.

		
	12.
	The Timber Cutting Agreements.

		
	13.
	[List specific exceptions listed in Purchaser’s final marked title commitment].

EXHIBIT G

Form Assignment of Unrecorded Encumbrances

ASSIGNMENT AND ASSUMPTION AGREEMENT

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (“Assignment”) is made effective as of the _____ day of ________________, 2016, by ___________________________, a Delaware limited liability company ("Assignor"), and ______________________________, a _________________
(“Assignee”).

		
	A.
	Assignor and Assignee entered into that certain Purchase and Sale Agreement dated _____________________ (“Agreement”), pursuant to which Assignee agreed to purchase from Assignor certain property located in ______________________ Counties, South Carolina (the “Property”).

		
	B.
	 Pursuant to the terms of the Agreement, Assignor desires to transfer to Assignee all of the rights, title and interest of Assignor in and to those leases, permits and unrecorded agreements set forth on Exhibit A attached hereto (the “Unrecorded Agreements”).

NOW, THEREFORE, in consideration of the foregoing recitals, and for other good and valuable consideration, the parties agree as follows:

		
	i.
	Assignment and Assumption.  Subject to the terms of the Agreement, Assignor hereby sells, assigns, conveys, transfers and delivers unto Assignee, and Assignee assumes from Assignor, all of Assignor’s rights, title, interests and obligations in and to the Unrecorded Agreements.  Assignee hereby accepts the assignment and agrees to faithfully perform all covenants, stipulations, agreements and obligations of Assignor under the Unrecorded Agreements.

		
	ii.
	Indemnification.  Assignor agrees to indemnify, defend and hold Assignee harmless from and against any and all claims, damages, costs, expenses and liabilities (including, without being limited to, reasonable attorneys’ fees) of whatever kind or nature with respect to any claim, liability or obligation of the lessor thereunder accruing under the Unrecorded Agreements, to the extent such Unrecorded Agreements affect the Property, prior to the date hereof.  Assignee agrees to indemnify, defend and hold Assignor harmless from and against any and all claims, damages, costs, expenses and liabilities (including, without being limited to, reasonable attorneys’ fees) of whatever kind or nature with respect to any claim, liability or obligation of the lessor thereunder accruing under the Unrecorded Agreements, to the extent such Unrecorded Agreements affect the Property, from and after the date hereof. 

		
	iii.
	Severability.  If any provision of this Assignment shall be held to be invalid or unenforceable, then the validity and enforceability of the remaining provisions shall not be affected thereby.

		
	iv.
	    Binding Effect.  This Assignment shall be binding upon the parties hereto and their respective successors and assigns and shall run with the title to the Property.

		
	v.
	Counterparts.  This Assignment may be signed in one or more counterparts which, together, shall constitute one agreement.

6.    Governing Law. This Agreement shall be governed by and construed under the laws of the State of South Carolina without regard to conflicts-of-law principles that would require the application of any other law.

[signatures begin on the following page]

IN WITNESS WHEREOF, this Assignment is entered into by the undersigned parties effective as of the date first above written.

Assignor:

___________________________, a Delaware limited liability company

By:________________________________
Name:______________________________
Title:_______________________________

                    

[signatures continue on the following page]

Assignee: 
                        

By:________________________________
Name:______________________________
Title:_______________________________

EXHIBIT A

[List of Unrecorded Agreements]

EXHIBIT H

Form Estoppel Agreement

ESTOPPEL AND RECOGNITION AGREEMENT

THIS ESTOPPEL AND RECOGNITION AGREEMENT (this “Agreement”) is executed as of ___________________, 2016, by INTERNATIONAL PAPER COMPANY, a New York corporation (“IP”), FIATP Timber LLC, a Delaware limited liability company, FIATP SSF Timber LLC, a Delaware limited liability company, FIATP SSF Parent, LLC, a Delaware limited liability company, and FIATP Parent, LLC, a Delaware limited liability company (collectively, the “Landowner”) to and for the benefit of COBANK, ACB, in its capacity as the administrative agent for the Lenders (as defined below) (in such capacity, “Administrative Agent”), and for the benefit of CatchMark Timber Trust, Inc., its subsidiaries and affiliates (collectively, “CatchMark”) with reference to the following recitals of fact:

		
	A.
	IP and Broad Arrow Timber Company LLC (“Supplier”) are parties to that certain Pulpwood Supply Agreement, dated November 3, 2006 (the “Supply Agreement”), wherein Supplier agreed to sell and IP agreed to purchase, on the terms and conditions set forth therein, certain quantities of pine pulpwood located on certain timberlands (the “Timberlands”) being more particularly described therein.

		
	B.
	In support of the Supply Agreement, Supplier and Landowner have entered into certain stumpage agreements, dated November 3, 2006 (the “Stumpage Agreements”), granting to Supplier certain cutting rights on the Timberlands.

		
	C.
	In further support of the Supply Agreement, IP and Landowner are parties to those certain Pulpwood Support Agreements (the “Support Agreements”) dated November 3, 2006, pursuant to which Landowner has granted certain rights to IP in support of the obligations of Supplier under the Supply Contract.

		
	D.
	Landowner and CatchMark are parties to those certain Purchase and Sale Agreements dated as of April __, 2016, wherein Landowner did agree to sell the Timberlands and assign the Stumpage Agreement, the Support Agreements and Supply Agreement (collectively, the “Contracts”) to CatchMark, and CatchMark did agree to purchase the Timberlands and assume the Contracts from Landowner.

		
	E.
	Pursuant to that certain Fourth Amended and Restated Credit Agreement, dated as of December 23, 2014 (as amended, restated, or otherwise modified from time to time, the “Credit Agreement”), various financial institutions (collectively, the “Lenders”) and the Administrative Agent have made certain loans (collectively, the “Loan”) to CatchMark. 

NOW THEREFORE, in consideration of Ten Dollars ($10.00) and for other good and valuable consideration, the receipt and sufficiency of which is hereby confirmed, the parties hereto agree and certify to and for the benefit of Administrative Agent as follows:

i.Assignment of Contracts.  To the extent that consent is required under the Contracts, IP hereby acknowledges and consents to the following (a) the acquisition by CatchMark of all or substantially all of the Timberlands, (b) Supplier’s assignment of the Supply Contract to CatchMark, (c) Supplier’s assignment of the Stumpage Agreement to __________, (d) Landowner’s assignment of the Stumpage Agreement to CatchMark, and (e) Landowners assignment of the Support Agreements to CatchMark, (f) CatchMark’s grant and collateral assignment to Administrative Agent of all of its right, title and interest in and to the Contracts as security for the payment and performance of the obligations arising under the Loan, and (e) that Administrative Agent shall have the rights to assert and enforce any of the rights of CatchMark in accordance with the terms and provisions of the Contracts so collaterally assigned.

ii.Mortgage of Timberlands.  IP further acknowledges that CatchMark shall encumber all of the Timberlands and the timber growing or to be grown thereon (the “Property”) by a Mortgage, Assignment of Leases and Rents and Security Agreement (or such other security agreement as Administrative Agent may require) in favor of Administrative Agent and that such encumbrance is permitted under and subject to the terms of the Contracts. 

3.    Representations Regarding Contracts.  IP hereby represents to CatchMark and Administrative Agent that (a) IP has not entered into any modification, amendment or assignment of the Contracts which materially change the Contracts since the date of execution, and no “Force Majeure Event”, “Change Event”, or “Change” as defined in the Contracts has occurred with respect to the Timberlands; (b) the only agreements or contracts currently in effect between IP and Landowner and/or Supplier with respect to the harvest of the Timberlands are the Contracts, and the Contracts comprise the entire agreement between the parties thereto; (c) the Supply Agreement and the Support Agreements were duly executed and delivered by IP and are the legal, valid and binding obligations of IP enforceable in accordance with their terms; (d) the Contracts are in full force and effect; (e) no default by IP exists under the Contracts and, to the knowledge of IP, no fact or circumstance exists under the Supply Agreement which, with the lapse of time or giving of notice or both, would constitute a default by IP under the Contracts; (f) no default by Landowner or Supplier exists under the Contracts and to the best of IP’s knowledge no fact or circumstance exists under the Contracts which, with the lapse of time or giving of notice or both, would constitute a default by Landowner or Supplier under the Contracts; and (g) IP has not previously assigned, whether absolutely, partially, conditionally, collaterally or otherwise or by operation of law, or otherwise transferred its interests under the Contracts.
4.    Mortgagee Protections.  
(a)IP shall provide Administrative Agent with a copy of any default notice it provides under the Contracts concurrently with the giving of such notice.  IP’s failure to provide a copy of such notice(s) to Administrative Agent shall not invalidate the notice sent or received; provided, however, that IP shall not be entitled to exercise any related remedies under the Contracts nor shall Administrative Agent’s cure period set forth in Section 4(b) commence until Administrative Agent has been provided with a copy of the related notice.
(b)    After receipt by Administrative Agent of notice of default by IP under the Contracts as set forth above, Administrative Agent shall have the right, in its sole discretion and option, but not the obligation, to cure such default within the Contract terms.
(c)    In the event of:
(i)    the institution of any foreclosure, trustee’s or power of sale or other like proceeding with respect to the Timberlands,
(ii)    the appointment of a receiver for CatchMark or the Timberlands,
(iii)    the exercise of rights to collect rents under any of the Security Documents,
(iv)    the recording by Administrative Agent of a deed in lieu of foreclosure for all or any portion of the Timberlands, or
(i)    any transfer or abandonment of possession of all or any portion of the Timberlands to Administrative Agent in connection with any proceedings affecting CatchMark  under the United States Bankruptcy Code or any other applicable law or regulation (any such action in the preceding clauses is herein called a “Transfer”, and Administrative Agent or any other party acquiring title to the Timberlands in connection with a Transfer or from any party who acquired title in such manner is herein called a “Transferee”), then the Contracts shall continue in full force and effect, subject to the terms of this Agreement, as if the Transferee were the original party to the Contracts, and IP shall recognize the Transferee as CatchMark’s successor thereunder.  
The Contracts shall continue in full force and effect after such Transferee acquires title to the Timberlands upon all the terms, covenants and conditions contained therein, including the provisions for segregating the Contracts and IP shall render performance to Transferee under the Contracts, except that the Transferee shall not be (1) liable for any monetary damages or defenses, or defaults under the Contracts (except and only to the extent and for the period that any default continues uncured after such acquisition unless such default is impossible for Transferee to cure), resulting from any previous act or omission by CatchMark or IP; (2) subject to any offset or defense which IP might have against CatchMark; (3) bound by any prepayments by IP (other than prepayment made to such Transferee); or (4) liable for any obligations pertaining to timberlands other than the Property.  If Administrative Agent or its affiliate acquires title to the Property and thereafter sells or transfers its interest in the Property, Administrative Agent or such affiliate shall have no obligations under the Contracts following the sale or transfer of the Property by Administrative Agent or such affiliate.
(d)    IP hereby warrants and represents, covenants and agrees to and with Administrative Agent that:  (i) IP has no charge, lien, claim or offset of any kind and will not prepay any payments due under the Contracts; except as expressly permitted in the Contracts; (ii)  IP is unaware of any charge, lien, claim or offset of any kind or any prepayment of any payments due under the Contracts; and (iii)  IP agrees, and CatchMark hereby irrevocably directs and authorizes IP, to make any payments due from IP to CatchMark under the Contracts directly to Administrative Agent upon receipt of any written notice from Administrative Agent of the existence of an Event of Default under any of the documents evidencing or securing the Loan.  IP agrees that it shall not, without written consent of Administrative Agent, which shall not be unreasonably withheld or delayed, amend any of the Contracts to (1) exceed the term of such Contract, (2) increase the volume requirements set forth in such Contracts, or (3) materially amend the pricing mechanism in  manner that does not reflect market based price.
5.    Miscellaneous.  This Agreement can be amended, supplemented or changed, and any provision hereof can be waived, only by a written instrument making specific reference to this Agreement signed by all of the parties hereto.  No action taken pursuant to this Agreement, including any investigation by or on behalf of any party, shall be deemed to constitute a waiver by such party taking such action of compliance by any other party with any covenant or agreement contained herein.  The failure of a party to assert any of its rights hereunder shall not constitute a waiver of such rights nor in any way affect the validity of this Agreement or any part hereof or the right of such party thereafter to enforce each and every provision of this Agreement.  No waiver of any breach of or non-compliance with this Agreement shall be held to be a waiver of any other or subsequent breach or non-compliance.
6.    No Obligation of Administrative Agent.  The parties further agree that Administrative Agent shall in no event have any liability or obligation for payment or performance in favor of IP or any of the other parties hereto under any of the Contracts, except to the extent provided herein if Administrative Agent shall become a Transferee.
7.    Notices.  Notices hereunder shall be given as follows:
Administrative Agent:     CoBank, ACB
5550 South Quebec Street
Greenwood Village, Colorado 8111
Attention: Syndications Coordinator, Corporate
Finance Division

CatchMark:            c/o CatchMark Timber Trust, Inc.
5 Concourse Parkway, Suite 2325
Atlanta, GA  30328

IP:                Vice President, Fiber Procurement
International Paper Company
International Place Towers
6400 Poplar, Memphis, TN 38197

with a copy to:            Senior Vice-President
General Counsel
International Place Towers
6400 Poplar, Memphis, TN 38197
Attention: Legal Department

or to such other address as either party may designate for itself by like notice given in accordance with this Section.
Except for any notices, demands, requests or other communications required under applicable law to be given in another manner, any notices, demands, requests or other communications with respect to this Agreement shall be in writing and delivered personally, mailed by United States Postal Service certified or registered mail or sent by a nationally recognized courier service such as Federal Express and properly addressed in accordance with this Section and shall be deemed given upon receipt or refusal to accept.  Any party may at any time change its address for such notices by delivering or mailing to the other party hereto, as aforesaid, a notice of such change.
1.    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to constitute an original, but all of which, when taken together, shall constitute one and the same instrument.
2.    Further Assurances.  The parties further agree to (i) execute such affidavits and certificates as Administrative Agent shall reasonably require to further evidence the agreements herein contained, and (ii) on request from Administrative Agent, furnish Administrative Agent with copies of such information as the parties are entitled to receive under the Supply Agreement.
3.    Successors and Assigns.  The parties agree that this Agreement and the parties’ obligations hereunder shall be binding upon the parties and their respective successors and assigns and shall inure to the benefit of Administrative Agent and its successors and assigns.

(Signatures follow on next page)

IN WITNESS WHEREOF, the parties hereby execute this Agreement to and for the benefit of each other and Administrative Agent as of the date first set forth above.

	
		
	

	IP:

INTERNATIONAL PAPER COMPANY, 
a New York Corporation

By:                  
Name:               
Title:               

	
		
	

	LANDOWNER:

FIATP PARENT LLC, a Delaware limited liability company

   By: ________________________
Name: ______________________
Title: _______________________

	
		
	

	LANDOWNER:

FIATP SSF PARENT LLC, a Delaware limited liability company

   By: ________________________
Name: ______________________
Title: _______________________

	
		
	

	LANDOWNER:

FIATP SSF TIMBER LLC, a Delaware limited liability company

   By: ________________________
Name: ______________________
Title: _______________________

	
		
	

	LANDOWNER:

FIATP TIMBER LLC, a Delaware limited liability company

   By: ________________________
Name: ______________________
Title: _______________________

Schedule 7

Schedule 7 Property

RECS
		
	•
	TP- Olde English MU- McMeekin Tract- a former Harrison’s rest Stop (gas station) adjacent. The station was identified as in an incident-related database. Two monitoring wells were located on the property, but it stopped service in 1994.

		
	•
	SSF- Sumter MU Murray Tract- Northeast Sanitary Landfill is an active municipal solid waste landfill adjacent to the tract in Richland County. According to a 2004 SCDHEC Groundwater Contamination Inventory available online this land fill had a volatile organic compound groundwater contamination and remedial activities were being conducted. 

AOC
		
	•
	SSF- Sumter- Goza Farm Tracts- onsite former land application area along Goza and Outlaw Road. Union Camp was issued a permit to land apply sludge and fly ash from a Union Camp paper mill to areas along Goza and Outlaw Road almost 15-17 years ago. 

		
	•
	Landfills and Dumps within the same county as some of the TP tracts in Bamberg and Richland County.  

21
SGR/13818384.2

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