Document:

Form for Performance Share Agreement

 Exhibit 10.6 
 PLANAR SYSTEMS, INC. 
 PERFORMANCE SHARE AGREEMENT 
  

					
	For:	 	  
	 	
	  
	 	

 NOTICE OF GRANT 
 Planar Systems, Inc. (the “Company”) hereby grants you,                      (the
“Employee”), in your position as President and Chief Executive Officer, an award of Performance Shares under the Company’s 1996 Stock Incentive Plan (the “Plan”). The date of this Performance Share Agreement (the
“Agreement”) is                      (the “Grant Date”). Subject to the provisions of Appendix A (attached),
Appendix B (attached) and of the Plan, the principal features of this award are as follows: 
  

									
	 Target Number of
 Performance Shares:
	  	  
	  		  		  	
		
	 Performance Period:
	  	Fiscal Year 2007 through Fiscal Year 2009
		
	 Vesting Schedule:
	  	The number of Performance Shares that will vest and the timing of the vesting of the Performance Shares will depend upon achievement of certain performance goals and will be
determined in accordance with the Performance Matrix, attached hereto as Appendix B. Except as otherwise provided in Appendix A, the Performance Shares will not vest unless

  

	 	i)	Employee is employed by the Company or one of its Subsidiaries through the applicable vesting date 

  

	 	ii)	Employee is employed in the same, or a substantially similar role through the applicable vesting date 

 Your signature below indicates your agreement and understanding that this award is subject to all of the terms and conditions contained in
Appendix A, Appendix B and the Plan. Important additional information on vesting and forfeiture of the Performance Shares is contained in paragraphs 3, 4 and 6 of Appendix A and in Appendix B. PLEASE BE SURE TO READ ALL
OF APPENDIX A AND APPENDIX B, WHICH CONTAIN THE SPECIFIC TERMS AND CONDITIONS OF THIS AGREEMENT. 
  

											
	PLANAR SYSTEMS, INC.	 		 	EMPLOYEE
						
	By:	 		 	  
	 		 		 	  

	Name:	 		 	Gerald Perkel	 		 	Name:	 	  

	Title:	 		 	President and CEO	 		 	Title:	 	  

						
	Date:	 		 	__________	 		 	Date:	 	__________

 APPENDIX A 
 TERMS AND CONDITIONS OF PERFORMANCE SHARES 
 1. Grant. The Company hereby grants to the
Employee under the Plan an award of the Target Number of Performance Shares set forth on the Notice of Grant, subject to all of the terms and conditions in this Agreement and the Plan. The number of Performance Shares that may vest and the timing of
vesting of the Performance Shares shall depend upon achievement of certain performance goals during the Performance Period and shall be determined in accordance with the Performance Matrix attached hereto as Appendix B. Unless otherwise defined
herein, capitalized terms used herein shall have the meanings ascribed to them in the Plan. 
 2. Company’s Obligation to Pay.
Unless and until the Performance Shares have vested in the manner set forth in paragraphs 3 and 4, the Employee will have no right to payment of such Performance Shares. Prior to actual payment of any vested Performance Shares, such Performance
Shares will represent an unsecured obligation. Payment of any vested Performance Shares shall be made in whole shares of the Company’s common stock (“Shares”) only. 
 3. Vesting Schedule/Period of Restriction. Except as provided in paragraph 4, and subject to paragraph 6, the Performance Shares awarded
by this Agreement shall vest in accordance with the vesting provisions set forth in the Performance Matrix. Performance Shares shall not vest in the Employee in accordance with any of the provisions of this Agreement unless the Employee shall have
been continuously employed by the Company or by one of its Subsidiaries from the Grant Date until the date the Performance Shares vest in accordance with the provisions set forth in the Performance Matrix. 
 4. Committee Discretion. The Committee, in its discretion, may accelerate the vesting of the balance, or some lesser portion of the balance, of
the Performance Shares at any time, subject to the terms of the Plan. If so accelerated, such Performance Shares will be considered as having vested as of the date specified by the Committee. 
 5. Payment after Vesting. Any Performance Shares that vest in accordance with paragraphs 3 or 4 will be paid to the Employee as soon as
practicable following the date of vesting, subject to paragraph 8. For each Performance Share that vests, the Employee will receive one Share. 
 6. Forfeiture. Notwithstanding any contrary provision of this Agreement, the balance of the Performance Shares that have not vested pursuant to paragraphs 3 or 4 at the time of the Employee’s termination of service (with or
without cause) will be forfeited and automatically transferred to and reacquired by the Company at no cost to the Company. 
 7. Death of
Employee. Any distribution of Shares that vested during Employee’s lifetime which is to be made to the Employee under this Agreement after the Employee is deceased shall be made to the administrator or executor of the Employee’s
estate. Any such administrator or executor must furnish the Company with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any
laws or regulations pertaining to said transfer. 
  

 A-1 

 8. Withholding of Taxes. When Shares are issued as payment for vested Performance Shares, the
Company (or the employing Subsidiary) will withhold a portion of the Shares that have an aggregate market value sufficient to pay federal, state, local and foreign income, social insurance, employment and any other applicable taxes required to be
withheld by the Company or the employing Subsidiary with respect to the Shares, unless the Company, in its sole discretion, either requires or otherwise permits the Employee to make alternate arrangements satisfactory to the Company for such
withholdings in advance of the arising of any withholding obligations. The number of Shares withheld pursuant to the prior sentence will be rounded up to the nearest whole Share, with no refund for any value of the Shares withheld in excess of the
tax obligation as a result of such rounding. Notwithstanding any contrary provision of this Agreement, no Shares will be issued unless and until satisfactory arrangements (as determined by the Company) have been made by the Employee with respect to
the payment of any income and other taxes which the Company determines must be withheld or collected with respect to such Shares. In addition and to the maximum extent permitted by law, the Company (or the employing Subsidiary) has the right to
retain without notice from salary or other amounts payable to the Employee, cash having a sufficient value to satisfy any tax withholding obligations that the Company determines cannot be satisfied through the withholding of otherwise deliverable
Shares. All income and other taxes related to the Performance Shares award and any Shares delivered in payment thereof are the sole responsibility of the Employee. By accepting this award, the Employee expressly consents to the withholding of Shares
and to any additional cash withholding as provided for in this paragraph 8. 
 9. Rights as Shareholder. Neither the Employee nor
any person claiming under or through the Employee will have any of the rights or privileges of a shareholder of the Company in respect of any Shares deliverable hereunder unless and until certificates representing such Shares (which may be in book
entry form) shall have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to the Employee (including through electronic delivery to a brokerage account). After such issuance, recordation and
delivery, the Employee will have all the rights of a shareholder of the Company with respect to voting such Shares and receipt of dividends and distributions on such Shares. 
 10. No Effect on Employment. Subject to any employment contract with the Employee, the terms of such employment will be determined from time to
time by the Company, or the Subsidiary employing the Employee, as the case may be, and the Company, or the Subsidiary employing the Employee, as the case may be, will have the right, which is hereby expressly reserved, to terminate or change the
terms of the employment of the Employee at any time for any reason whatsoever, with or without good cause. The transactions contemplated hereunder and the vesting schedule set forth on the first page of this Agreement do not constitute an express or
implied promise of continued employment for any period of time. A leave of absence or an interruption in service (including an interruption during military service) authorized or acknowledged by the Company or the Subsidiary employing the Employee,
as the case may be, shall not be deemed a termination of service for the purposes of this Agreement. 
 11. Address for Notices. Any
notice to be given to the Company under the terms of this Agreement will be addressed to the Company, in care of its General Counsel, at 1195 NW Compton Drive, Beaverton, OR 97006-1992, or at such other address as the Company may hereafter designate
in writing. 
  

 A-2 

 12. Grant is Not Transferable. This grant of Performance Shares and the rights and privileges
conferred hereby may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any way (whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process, until the Employee
has been issued Shares in payment of the Performance Shares. Upon any attempt to sell, pledge, assign, hypothecate, transfer or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale under any
execution, attachment or similar process, this grant and the rights and privileges conferred hereby immediately will become null and void. 
 13. Restrictions on Sale of Securities. The Shares issued as payment for vested Performance Shares under this Agreement will be registered under U.S. federal securities laws and will be freely tradable upon receipt. However, an
Employee’s subsequent sale of the Shares may be subject to any market blackout-period that may be imposed by the Company and must comply with the Company’s insider trading policies, and any other applicable securities laws. 
 14. Binding Agreement. Subject to the limitation on the transferability of this grant contained herein, this Agreement will be binding upon and
inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto. 
 15. Additional
Conditions to Issuance of Certificates for Shares. The Company shall not be required to issue any certificate or certificates for Shares hereunder prior to fulfillment of all the following conditions: (a) the admission of such Shares to
listing on all stock exchanges on which such class of stock is then listed; (b) the completion of any registration or other qualification of such Shares under any U.S. state or federal law or under the rulings or regulations of the Securities
and Exchange Commission or any other governmental regulatory body, which the Committee shall, in its absolute discretion, deem necessary or advisable; (c) the obtaining of any approval or other clearance from any U.S. state or federal
governmental agency, which the Committee shall, in its absolute discretion, determine to be necessary or advisable; and (d) the lapse of such reasonable period of time following the date of vesting of the Performance Shares as the Committee may
establish from time to time for reasons of administrative convenience. 
 16. Plan Governs. This Agreement is subject to all the terms
and provisions of the Plan. In the event of a conflict between one or more provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan will govern. 
 17. Committee Authority. The Compensation Committee of the Company’s Board of Directors (the “Committee”) will have the power to
interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination
of whether or not any Performance Shares have vested). All actions taken and all interpretations and determinations made by the Committee in good faith will be final and binding upon the Employee, the Company and all other interested persons. No
member of the Committee will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement. 
  

 A-3 

 18. Captions. Captions provided herein are for convenience only and are not to serve as a basis
for interpretation or construction of this Agreement. 
 19. Agreement Severable. In the event that any provision in this Agreement is
held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement. 
 20. Modifications to the Agreement. This Agreement constitutes the entire understanding of the parties on the subjects covered. The Employee
expressly warrants that Employee is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein. Modifications to this Agreement can be made only in an express written contract executed
by a duly authorized officer of the Company. Notwithstanding anything to the contrary in the Plan or this Agreement, the Company reserves the right to revise this Agreement as it deems necessary or advisable, in its sole discretion and without the
consent of the Employee, to comply with Section 409A of the Code or to otherwise avoid imposition of any additional tax or income recognition under Section 409A of the Code prior to the actual payment of Shares pursuant to this award of
Performance Shares. 
 21. Adjustments Upon Changes in Capital. The aggregate number of Performance Shares covered by this Agreement
will be proportionally adjusted for any increase or decrease in the number of issued and outstanding Shares resulting from a stock split-up or consolidation of Shares or any like capital adjustments, or the payment of any stock dividend. 

22. Amendment, Suspension or Termination of the Plan. By accepting this Performance Shares award, the Employee expressly warrants that Employee
has received a right to receive stock under the Plan, and has received, read and understood a description of the Plan. The Employee understands that the Plan is discretionary in nature and may be amended, suspended or terminated by the Company at
any time. 
 23. Governing Law. This award of Performance Shares shall be governed by, and construed in accordance with, the laws of
the State of Oregon, without regard to principles of conflict of laws. 
  

 A-4 

 APPENDIX B 
 PERFORMANCE MATRIX 
 FY07-FY09 Long Term Incentive Matrix 
  

																																																					
	 FY 09 $M
 Specialty

Revenue
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 360
	  	 	0.4	X	 	 	0.5	X	 	 	0.6	X	 	 	0.75	X	 	 	0.9	X	 	 	0.95	X	 	 	1.0	X	 	 	1.1	X	 	 	1.25	X	 	 	1.3	X	 	 	1.35	X	 	 	1.4	X	 	 	1.5	X
	 331
	  	 	0.35	X	 	 	0.4	X	 	 	0.5	X	 	 	0.65	X	 	 	0.85	X	 	 	0.9	X	 	 	0.95	X	 	 	1.0	X	 	 	1.2	X	 	 	1.25	X	 	 	1.3	X	 	 	1.35	X	 	 	1.45	X
	 303
	  	 	0.3	X	 	 	0.35	X	 	 	0.45	X	 	 	0.6	X	 	 	0.75	X	 	 	0.8	X	 	 	0.9	X	 	 	0.95	X	 	 	1.1	X	 	 	1.2	X	 	 	1.25	X	 	 	1.3	X	 	 	1.4	X
	 275
	  	 	0.25	X	 	 	0.3	X	 	 	0.4	X	 	 	0.55	X	 	 	0.7	X	 	 	0.75	X	 	 	0.8	X	 	 	0.9	X	 	 	1.0	X	 	 	1.1	X	 	 	1.2	X	 	 	1.25	X	 	 	1.35	X
	 246
	  	 	0.2	X	 	 	0.25	X	 	 	0.35	X	 	 	0.5	X	 	 	0.65	X	 	 	0.7	X	 	 	0.75	X	 	 	0.8	X	 	 	0.9	X	 	 	1.0	X	 	 	1.15	X	 	 	1.2	X	 	 	1.3	X
	 218
	  	 	0.15	X	 	 	0.2	X	 	 	0.3	X	 	 	0.45	X	 	 	0.6	X	 	 	0.65	X	 	 	0.7	X	 	 	0.75	X	 	 	0.85	X	 	 	0.95	X	 	 	1.1	X	 	 	1.15	X	 	 	1.25	X
	 190
	  	 	0.1	X	 	 	0.15	X	 	 	0.25	X	 	 	0.4	X	 	 	0.55	X	 	 	0.6	X	 	 	0.65	X	 	 	0.7	X	 	 	0.8	X	 	 	0.9	X	 	 	1.0	X	 	 	1.1	X	 	 	1.2	X
		  	$	0.60	 	 	$	0.65	 	 	$	0.70	 	 	$	0.75	 	 	$	0.80	 	 	$	0.85	 	 	$	0.90	 	 	$	0.95	 	 	$	1.00	 	 	$	1.05	 	 	$	1.10	 	 	$	1.15	 	 	$	1.20	 
		  	 	FY09 Consolidated Pro Forma EPS	 

  

			
	 Early Earning Opportunities
 1. First 20 cent Pro Forma
EPS quarter earns 0.05X
	  	 Note: Specialty Display Revenue will be calculated as total
 revenue minus the general purpose monitor revenue in CBU

	2. First 25 cent Pro Forma EPS quarter earns 0.05X	  	
	3. First $55M Specialty Display Revenue Quarter earns 0.05X	  	
	4. First $60M Specialty Display Revenue Quarter earns 0.05X	  	X= the number of shares allotted to each individual
	5. First $65M Specialty Display Revenue Quarter earns 0.05X	  	
	6. FY07 Specialty Display Revenue >$190M earns 0.05X	  	
	7. FY08 Specialty Display Revenue >$230M earns 0.1X	  	
	8. FY08 Pro Forma EPS >75 cents earns 0.1X	  	

  

 B-1Management Incentive Plan (2007)

 Exhibit 10.1 
 INTERNATIONAL PAPER COMPANY 
 MANAGEMENT INCENTIVE PLAN (MIP) 
 Amended and Restated as of January 1, 2007 
  

	I.	Purposes of the Plan and Plan Description 

 The purposes of this Management Incentive Plan, amended and restated as of January 1, 2007 (the “Plan”) are to: (a) provide an incentive for Participants to exert their best efforts to improve the financial
performance of the Company; (b) attract and retain the best talent available; and (c) further align the interests of the Participants and International Paper’s shareowners. 
 The Plan is an annual cash incentive plan developed around the achievement of pre-established Performance Objectives and funded based on the
Company’s achievement level against those Performance Objectives. 
  

	II.	Definitions 

  

	 	•	 	 Award Scale 

 “Award Scale”
means the conversion of the Performance Objective Rating to a percent of Target Award earned. 
  

	 	•	 	 Business 

 “Business” means
a business segment that reports to a senior vice president of the Company. 
  

	 	•	 	 Committee 

 “Committee”
means the Management Development and Compensation Committee of the Company’s Board of Directors. 
  

	 	•	 	 Company 

 “Company” means
International Paper Company, a New York corporation, together with its Subsidiaries. 
  

	 	•	 	 Cost of Capital 

 “Cost of
Capital” is the weighted average of the cost of equity and the cost of debt of the Company. 
  

	 	•	 	 Employee 

 “Employee” means
a regular, full-time employee of the Company. 
  

	 	•	 	 Free Cash Flow 

 “Free Cash
Flow” means cash flow from operations less (i) capital spending and (ii) cash dividends. 
  

	 	•	 	 Participant 

 “Participant”
means a person who has been designated as a participant in the Plan, according to Section V. 
  

 1 

	 	•	 	 Performance Objective Rating 

 “Performance Objective Rating” means the percentage amount assigned to a Performance Objective for a level of achievement that translates to a percentage of the Target Award. 
  

	 	•	 	 Performance Objectives 

 “Performance Objectives” mean the measures identified by the Company and approved by the Committee identified in Section VI of this Plan. 
  

	 	•	 	 Plan or MIP 

 “Plan” or
“MIP” means this Management Incentive Plan, amended and restated as of January 1, 2007. 
  

	 	•	 	 Plan Year 

 “Plan Year”
means the twelve month period corresponding to the Company’s fiscal year (January 1 through December 31). 
  

	 	•	 	 Return on Investment or ROI 

 “Return on Investment” or “ROI” means after-tax operating earnings, including both earnings from continuing and discontinued operations (up through the date of sale), and before the impact of special items divided by
average capital employed. Capital employed is total assets, less short-term, non-interest-bearing liabilities. The Company’s ROI metric excludes the impact of special items, such as gains or losses associated with asset sales, restructing
costs, changes in pension funding, and significant out-of-period or “one-off” items. 
  

	 	•	 	 ROI Peer Group 

 “ROI Peer
Group” means those companies in comparable industry or business segments against which the Company competes, as determined from time to time by the Company and approved by the Committee. The ROI Peer Group will be recorded in Appendix A
to the Plan, as amended from time to time as appropriate. 
  

	 	•	 	 Subsidiary 

 “Subsidiary”
means any company that is owned (50% or more) or controlled by the Company, directly or indirectly. 
  

	 	•	 	 Target Award 

 “Target
Award” means an amount equal to the percentage of salary range midpoint applicable to the actual position level of each Participant, shown in Appendix B. 
  

	III.	Chief Executive Officer Special Awards 

 The
Chief Executive Officer may designate a portion of the MIP award pool to fund special awards for extraordinary individual performance to award to Employees regardless of whether such Employees are otherwise eligible to participate in the Plan.

  

 2 

	IV.	Administration of the Plan 

 The Plan
operates at the discretion of the Committee. The Committee may exercise considerable discretion and judgment in interpreting the Plan, and adopting, from time to time, rules and regulations that govern the administration of the Plan. 
 The Committee has delegated authority to the Chairman and Chief Executive Officer or his designee for the day-to-day administration of the Plan, except
with respect to a Participant designated as senior vice president of the Company or higher. 
 Decisions of the Committee are final,
conclusive and binding on all parties, including the Company, its shareowners, and employees. 
  

	V.	Participation in the Plan 

 Participants in
the Plan are limited to Employees of the Company whose position level is 14 or higher. Except as set forth in Section VII(C), Participants must be actively employed on a full-time basis during the Plan Year and on the date of the award payout.

 Employees who are eligible for participation in any other short-term, cash-based incentive compensation plan of the Company are not
eligible for participation in this Plan. 
 An Employee who becomes eligible to participate in the Plan during the Plan Year or who moves from
one eligible position level to another will be eligible for a prorated award. 
 Participation in this Plan, or receipt of an award under this
Plan, does not give a Participant or Employee any right to a subsequent award, nor any right to continued employment by the Company for any period. 
  

	VI.	Award Pool and Award Scale  

 A.
Performance Objectives – Funding the MIP Award Pool 
 The Company must achieve at least a minimum level of performance in
order to fund the MIP award pool. If the Company does not achieve the minimum performance in at least one of the performance metrics, no MIP award pool is established. 
 The total MIP award pool will be determined based on achievement of the following Performance Objectives during the Plan Year. If the Company achieves its Cost of Capital during the Plan Year, an additional 50% will
be added to the award as set forth below. 
  

	 	•	 	 30% Weight: Improvement of Return on Investment (ROI) Against Plan, including the effects of pricing. 

  

					
	 Achievement of Objective
	 	 % of Target Award
	 	 
	 111 to 175%
	 	 1.67% award for every 1%
 performance above target (100%)
	 	
	 90 to 110%
	 	90 to 110%	 	
	 70% to 89%
	 	 -1.67% award for every 1%
 performance below target (100%)
	 	
	 Below 70%
	 	0%	 	

  

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	 	•	 	 50% Weight: Return on Investment as compared to ROI Peer Group. 

  

									
	 Rank
	 	 	 	 % of Target Award
	 	 	 	 Cost of Capital “Kicker”

	1	 		 	175%	 		 	50%
	2	 		 	150%	 		 	50%
	3	 		 	125%	 		 	50%
	4	 		 	100%	 		 	50%
	5	 		 	50%	 		 	
	6 – 11	 		 	0%	 		 	

  

	 	•	 	 20% Weight: Key Company Non-Financial Drivers: 

  

	 	•	 	 10% Aggregate Weighted Global Employee Survey Objectives 

  

	 	•	 	 10% Aggregate Weighted Diversity Objectives 

  

					
	 Improvement Goal
	 	  	 	 % of Target Award

	100% or above	 		 	100%
	50%	 		 	50%
	Below 50%	 		 	0%

 B. Business Objectives 
 Business objectives should be in alignment with the financial and non-financial objectives of the Company. Business objectives are established by the
Business unit and approved by the Chief Executive Officer, and are weighted 50% for Business unit awards. 
 Non-financial objectives should
include specific goals under both Diversity and Global Employee Survey, weighted as appropriate for the specific Business, but not to exceed 20% of the overall Business award. 
 The Business performance achievement percentage may be modified by the Chief Executive Officer to ensure that the overall MIP award pool is not exceeded.

 C. Performance Objective Rating 
 Each Performance Objective will be evaluated at the end of the Plan Year to determine the level at which the Performance Objective was achieved. The Company’s determination of performance achievement is presented
to the Committee for its review and approval. 
 Business unit performance achievement will be assigned by appropriate Business unit
management for final review and approval by the Chief Executive Officer. 
  

 4 

 D. Approval by the Committee of the Total MIP Award Pool 
 The Committee approves the total MIP award pool based on the Company’s performance achievement against the Performance Objectives unless the
Committee determines in its sole discretion to reduce or eliminate the MIP award pool based upon any objective or subjective criteria it deems appropriate. 
 The Committee may not increase the MIP award pool above the calculated amount. 
 The amount allocated for
payment under the Plan and for special awards may not exceed the total approved MIP award pool. 
 In the discretion of the Committee, the MIP
award pool may be reduced in the event the Company’s ROI is negative. 
 No MIP award pool will be funded in the event the Company’s
Free Cash Flow for the Plan Year is negative. 
  

	VII.	Award Recommendations 

 A.
Recommendations 
 At the end of each Plan Year, the Chief Executive Officer will submit to the Committee the individual award
recommendations for Participants who are senior vice presidents of the Company and above, and an aggregate award amount for all other Participants. 
 The Committee will recommend to the independent members of the Board the amount of the award for the Chief Executive Officer and any other employee-director. 
 B. Granting of Awards 
 The Committee, in its sole discretion, may approve, revise or
disapprove any recommended award to a senior vice president of the Company or above. Any award to the Chief Executive Officer or any other employee-director will be subject to approval by the independent members of the Board of Directors of the
Company. 
 Participants each have an MIP target award expressed as a percentage of the midpoint of a defined salary range based on position
level as set forth on the attached Appendix B. Individual awards are based on Business or Company performance as well as individual performance. 
 C. Termination of Employment or Leave of Absence 
 A Participant whose employment terminates
during a Plan Year because of death or disability, or who is retirement eligible at the time of termination, will be eligible for a pro rata target award based on the period of active employment with the Company during the Plan Year. If a
Participant’s employment with the Company is terminated for any other reason prior to actual payment of an award, such award will be canceled and the Participant will have no right under the Plan to receive payment. 
 A Participant who is on an approved leave of absence during the Plan Year or on the date of an award payout will be eligible for a pro rata award
based on the period of active employment with the Company during the Plan Year. 
  

 5 

	VIII.	Allocation of MIP Award Pool Among Business Units and Corporate Staff Organizations 

 The MIP award pool is allocated by the Chief Executive Officer to Business Units and Corporate Staff Organizations based upon the following: 

A. Corporate Staff Organizations 
 Corporate staff organizations are allocated an MIP award pool equal to the performance percentage achieved by the Company as a whole. 
 B. Business Units 
 Business units are allocated an MIP award pool based 50% on Business performance and 50% on
Company performance. 
  

	IX.	Payment of Awards 

 A. Type of
Payment 
 MIP awards are paid in cash unless deferred by the Participant. 
 B. Time of Payment 
 Awards may be paid at such time(s) as determined by the Committee but in all events except as
provided in Section IX(D), below, will be paid no later than the later of: (i) March 15 following the end of the applicable Plan Year, or (ii) two and one-half (2  1/2) months after the expiration of the fiscal year in which the performance period with respect to which the awards are earned has ended. 
 C. Payment to Beneficiaries 
 If a Participant dies prior to receipt of an approved award under the Plan, the award will be paid in a lump sum to the Participant’s estate. 
 D. Deferral of Payment 
 Any Participant who has a position level of 18 or higher who has
elected to participate in the Company’s Deferred Compensation Savings Plan (“DCSP”) may elect to defer payment, not to exceed 85%, of any award under this Plan by filing an irrevocable Election to Defer Payment under the DCSP by the
last business day in December of the year prior to the year in which such award would be earned. Awards or portions elected to be deferred will be credited with investment earnings or losses in accordance with provisions of, and the
Participant’s elections under, the DCSP. MIP awards that are deferred will be paid in accordance with the payment terms of the DCSP. 
  

	X.	Modification, Suspension or Termination of Plan 

 The Committee may at any time suspend, terminate, modify or amend any or all of the provisions of this Plan. 
  

	XI.	Governing Law 

 The Plan is governed by the
laws of the State of New York. 
  

 6 

	XII.	Tax Withholding 

 The Company has the right
to make such provisions as it deems necessary or appropriate to satisfy any obligations it may have under law to withhold federal, state or local income or other taxes incurred by reason of payments pursuant to the Plan. 
  

	XIII.	Section 409A 

 The Plan is intended to comply
with the applicable requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and will be limited, construed and interpreted in accordance with such intent. 
  

	XIV.	Non-Transferability of Award 

 No award under
this Plan, and no rights or interests therein, will be assignable or transferable by a Participant (or legal representative). 
  

	XV.	Effective Date 

 This Plan is effective as of
January 1, 2007, and continues until terminated, suspended, modified, or amended by the Committee. 
  

 7 

 Appendix A 
 2007 ROI Peer Group 
  

	 	•	 	 Bowater 

  

	 	•	 	 Domtar 

  

	 	•	 	 Mead/Westvaco 

  

	 	•	 	 M-Real 

  

	 	•	 	 Packaging Corporation of America 

  

	 	•	 	 SAPPI 

  

	 	•	 	 Smurfit Stone 

  

	 	•	 	 Stora Enso 

  

	 	•	 	 UPM 

  

	 	•	 	 Weyerhaeuser 

  

 8 

 Appendix B 
 Management Incentive Plan (MIP) 
 Target Awards 
  

					
	 Position Level
	 	 	 	 Target Award (% of
Midpoint)

	 43
	 		 	100%
	 42
	 		 	90%
	 41
	 		 	85%
	 40
	 		 	85%
	 39
	 		 	80%
	 38
	 		 	80%
	 37
	 		 	75%
	 36
	 		 	75%
	 35
	 		 	70%
	 34
	 		 	70%
	 33
	 		 	65%
	 32
	 		 	65%
	 31
	 		 	60%
	 30
	 		 	55%
	 29
	 		 	50%
	 28
	 		 	50%
	 27
	 		 	45%
	 26
	 		 	45%
	 25
	 		 	40%
	 24
	 		 	40%
	 23
	 		 	35%
	 22
	 		 	30%
	 21
	 		 	30%
	 20
	 		 	25%
	 19
	 		 	25%
	 18
	 		 	20%
	 17
	 		 	20%
	 16
	 		 	20%
	 15
	 		 	15%
	 14
	 		 	15%

  

 9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]