This excerpt taken from the IP 10-K filed Feb 29, 2008.
As previously reported on the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on October 10, 2007, Mr. Paul Herbert, former senior vice president, International Paper Company, resigned his position with the Company to become chief executive officer of OJSC Ilim Group (Ilim Group). Ilim Group is a 50:50 joint venture between the Company and Ilim Holding S.A.
Under the post-employment agreement between the Company and Mr. Herbert, effective October 4, 2007 (the Agreement), attached as Exhibit 10.31, Mr. Herbert continues to participate in Company-provided health and welfare benefits during his service to Ilim Group. In addition, in 2009 and 2010, the Company will pay Mr. Herbert a lump sum amount equal to the value of restricted stock that he would have been eligible to receive under the Companys Performance Share Plan had he remained employed during 2008 and 2009, respectively. For subsequent years, Mr. Herberts long-term incentive compensation will be earned under, and paid by, Ilim Groups incentive compensation plans.
Mr. Herberts Company retirement benefits became vested under our SERP, and, if his employment is terminated under the following scenarios he will receive the equivalent of an unreduced retirement benefit: (1) his employment terminates after he has completed two years of service to Ilim Group, (2) he is terminated at any time without Cause (as defined in the Agreement) or he voluntarily leaves for Good Reason (as defined in the Agreement), (3) he becomes disabled, or (4) there is a change in control of Ilim Group resulting in his termination of employment where he does not return to a Comparable Position (as defined by the Agreement) with the Company.
Mr. Herbert is not eligible to receive severance under the Companys Salaried Severance Plan unless his employment with Ilim Group is terminated and there is no Comparable Position with the Company for him to return to, or if he receives severance from Ilim Group. Mr. Herbert remains covered by the Companys Tier I change in control agreement (previously filed with the SEC as Exhibit 10.3 to the Companys Current Report on Form 8-K, dated October 17, 2005).
This excerpt taken from the IP 10-Q filed Aug 5, 2005.
The following information is being provided in lieu of filing a Form 8-K to report our entry into material definitive agreements under Item 1.01:
On August 1, 2005, the Company purchased the 50% outside interest of International Paper Pacific Millennium Limited (IPPM) for $46.1 million. The purchase is discussed in Note 13 Subsequent Events in Item 1. of this Form 10-Q.
On August 3, 2005, the Company entered into an agreement with a group of insurance carriers to settle the Companys claims against those carriers in the Hardboard Lawsuit which is pending in a state court in California. Under the settlement agreement, the carriers agreed to pay International Paper $242 million, including $25 million within 90 days of the execution of the agreement and the balance thereafter in 47 equal monthly installments. The settlement is discussed in Note 13 Subsequent Events in Item 1. of this Form 10-Q.