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Statement of Support for the
Shareholder Resolution to Declassify Boise Cascade's
Board of Directors
and for the

Shareholder Resolution Regarding Shareholder Rights Plan

Presented by Justin Hayes

Phone: 208-861-6134
Email: jhayes@wildidaho.org
 
Thursday, April 18, 2002
Boise Cascade Shareholder Meeting
Boise, Idaho

My name is Justin Hayes; I am here at the request of Boise Cascade stockholders Dr. John Osborn and Bartlett Naylor. Dr. Osborn and Mr. Naylor have each submitted stockholders resolutions. I am here to represent their interests and serve as their proxy.

Dr. Osborn's resolution reads as follows:

  • RESOLVED, that the stockholders of Boise Cascade Corp. urge the board to take the necessary steps to amend the Company's Bylaws, in compliance with applicable law, to reorganize itself into one class. The reorganization shall be done in a manner that does not affect the unexpired terms of directors previously elected.
  • Mr. Naylor's resolution reads as follows:

  • RESOLVED: That shareholders urge that the board of directors will solicit shareholder approval for any "shareholder rights" plan that might be adopted, and that if this approval is not granted in the form of a majority of the shares voted, then any rights plan is redeemed.
  • The purpose of these resolutions is to improve Board accountability. I hereby propose the resolutions as explained in the company's proxy statement.

    Boise Cascade shareholders require increased Board accountability because the current actions of the Board demonstrate that it is out of touch with the interests of stockholders, the general public and consumers. This endangers the long-term interests of the Company and stockholders alike.

    The Board of Directors' disregard for the interests of the stockholders is readily apparent. Dr. Osborn's resolution to declassify the Board of Directors has twice been approved by stockholders. Yet still the Board of Directors has refused to declassify itself. The Board continues to disregard the direction of stockholders at its own peril.

    In addition to being out of touch with the voted interests of its own stockholders, the Board of Directors is out of touch with the wants of the general public and consumers. For example, Boise Cascade has taken a very public position opposing the so-called "Roadless Initiative." The position needlessly jeopardizes the reputation of Boise Cascade and threatens to undermine long-term profitability.

    Polls have shown that the Roadless Initiative enjoys majority support amongst the general public. The Board's decision to oppose this popular wildland and wildlife protection measure has resulted in increased public scrutiny of Boise Cascade. The Boise Cascade product lines have become increasingly associated with "anti-environmental" policies and practices.

    Boise Cascade's profitability is increasingly tied to its office products division. This sector is very "image conscious." Increasingly, consumers are "voting with their pocketbook" and penalizing corporations that are not seen as good environmental stewards.

    The Board's recent decision to phase out the cutting of old growth trees reflects two important facts. One, the Board is aware that being painted as anti-environmental has negative consequences and the Board wants to avoid this reputation and its consequences. Two, the Company's long-term profitability is not tied to cutting virgin timber stands. Shareholders are forced to wonder why the Board can not apply this same clear thinking to the Roadless issue. Enlightened environmental stewardship helps Boise Cascade's long-term profitability.

    The long-term interests of Boise Cascade are best served by being able to hold its corporate directors accountable for their decisions. Boise Cascade's current Bylaws serve to insulate the Board. As a result, the Board has become dangerously out of step with the interests of its stockholders and the public. The resolutions presented by Dr. Osborn and Mr. Naylor seek to increase Board accountability. I urge that all stockholders support these resolutions.

    I move the resolutions and ask that the votes be tallied and the outcome immediately presented to stockholders at this meeting.