Cellu Tissue Holdings, Inc. Retention Bonus Agreement with Dianne Scheu
Cellu Tissue Holdings, Inc. agrees to pay Dianne Scheu a one-time cash bonus equal to one year's current base salary, subject to standard tax withholdings. If her employment ends for any reason other than death or disability before March 27, 2007, she must repay the bonus within 30 days. The company may offset the repayment against any amounts owed to her. This bonus does not affect other compensation or benefits unless specifically stated in another plan.
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Exhibit 10.9
[LETTERHEAD OF CELLU TISSUE HOLDINGS, INC.
Dianne Scheu
367 Hasty Trail
Canton, GA 30115
March 27,2006
Re: Retention Letter
As we have agreed, upon your execution of this letter, Cellu Tissue Holdings, Inc. (the "Company") shall pay to you a lump sum cash payment equal to one year's current base salary (the "One-Time Bonus"). The Company shall withhold from the One-Time Bonus all taxes, FICA or other amounts required to be withheld pursuant to any applicable law.
This One-Time Bonus shall be subject to forfeiture if your employment is terminated on or prior to March 27, 2007, for any reason, other than due to your death or disability (a "Termination Event"). Within 30 days following a Termination Event that occurs on or prior to March 27, 2007, you shall repay the Company the One-Time Bonus. The Company shall be entitled to offset any amounts owing to you from the Company in order to recoup the One-Time Bonus.
The One-Time Bonus is a special incentive payment to you and will not be taken into account in computing the amount of any salary or compensation for purposes of determining any bonus, incentive, pension, retirement, death or other benefit under any other bonus, incentive, pension, retirement, insurance or other employee benefit plan of the Company, unless such plan or agreement expressly provides otherwise.
Sincerely,
Cellu Tissue Holdings, Inc.
By: | /s/ RUSSELL C. TAYLOR Name: Russell C. Taylor Title: President | |||
By signing below, please acknowledge that you agree with the terms and conditions of this letter: | ||||
/s/ DIANNE SCHEU Dianne Scheu | ||||
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- Exhibit 10.9
