GEORGIA-PACIFIC CORPORATION LONG-TERM INCENTIVE PLAN ADOPTED BY THE BOARD OF DIRECTORS, SEPTEMBER 17, 1997 APPROVED BY THE SHAREHOLDERS, DECEMBER 16, 1997

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1. ADOPTION AND PURPOSE

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2. DEFINITIONS

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(a) Award

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(b) Award Agreement

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(c) Board

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(d) Cause

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(e) Change of Control

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(f) Code

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(g) Committee

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(h) Common Stock

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(i) Company

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(j) Dividend Equivalent

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(k) Effective Date

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(l) Employee

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(m) Exchange Act

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(n) Fair Market Value

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(o) Incentive Stock Option

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(p) Non-Qualified Stock Option

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(q) Option

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(r) Participant

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(s) Performance Goals

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(t) Performance Award

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(u) Performance Period

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(v) Plan

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(w) Plan Year

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(x) Restricted Shares

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(y) Restriction Period

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(z) Subsidiary

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(aa) SAR

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(ab) SAR Unit

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3. ELIGIBILITY

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4. STOCK SUBJECT TO THE PROVISIONS OF THIS PLAN; LIMITATIONS.

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(a) Applicable Stock

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(b) Plan Limitations

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(c) Individual Limitations

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(d) Calculation Procedures

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5. AWARDS UNDER THIS PLAN

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(a) Stock Options

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(b) Performance Awards

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(i) Administration

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(ii) Payment of Award

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(iii) Further Restriction Period

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(c) Restricted Shares

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(i) Issuance of Stock Certificates

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(ii) Status of Restricted Shares

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(iii) Participant Rights With Respect to Issued Restricted

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(d) Dividend Equivalents

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(e) SARs

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6. OTHER TERMS AND CONDITIONS

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(a) Assignability; Designation of Beneficiaries

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(i) Prohibition on Transfer

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(ii) Designation of Beneficiaries

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(b) Award Agreement

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(c) Rights as a Shareholder

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(d) No Obligation to Exercise

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(e) Payments by Participants

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(f) Tax Withholding

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(g) Restrictions on Exercise

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(h) Surrender of Options

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(i) Additional Options Upon Exercise

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(j) Requirements of Law

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(k) Non-Exclusivity of the Plan

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(l) Unfunded Plan

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(m) Legends

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(n) Company’s Retirement and Welfare Plans

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(o) Forfeitures

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(i) Violations of Company Policies

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(ii) For Cause Termination

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(p) Requirement of Employment

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(q) Code Section 162(m)

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(r) Deferred Transfer of Shares Upon Exercise of Options

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7. PLAN ADMINISTRATION

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(a) Committee as Plan Administrator

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(b) Delegation

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(c) Determinations Final

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8. AMENDMENTS AND TERMINATION

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(a) Authority to Amend or Terminate

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(b) Awards Previously Granted

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(c) Limitations

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9. CORPORATE RESTRUCTURING

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(a) No Bar to Corporate Restructuring

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(b) Capital Readjustments/Award Modifications

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10. NO RIGHT TO EMPLOYMENT

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11. CHANGE OF CONTROL

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(a) Special Rights Upon Change of Control

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(i) Lapse of Restrictions; Acceleration of Exercise and/or Vesting

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(ii) Election of Cash or Stock Distribution

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(iii) Extended Exercise Period

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(iv) Awards Non-Cancellable

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(b) Definition of “Change of Control

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(i) Acquisition of Stock

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(ii) Change in Board Membership

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(iii) Shareholder-Approved Reorganization, Merger or Consolidation

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(iv) Liquidation or Dissolution

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12. GOVERNING LAW

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13. CAPTIONS

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14. RESERVATION OF SHARES

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