X0303 4 2011-02-04 0000731939 TEMPLE INLAND INC TIN 0001361883 Davis Morris 1300 SOUTH MOPAC THIRD FLOOR AUSTIN TX 78746 1 General Counsel Common Stock 2011-02-04 2011-02-04 4 A 0 8033 0 A 20525 D Options (Right to Buy) 24.40 2011-02-04 4 A 0 10909 0 A 2012-02-04 2021-02-04 Common Stock 10909 10909 D Restricted Stock Units 2011-02-04 2011-02-04 4 D 0 12029 0 D Common Stock 0 0 D Performance Stock Units Common Stock 11286 11286 D Performance Stock Units Common Stock 40585 40585 D Options (Right to Buy) 22.13 2007-05-05 2016-05-05 Common Stock 6150 6150 D Options (Right to Buy) 24.34 2008-02-02 2017-02-02 Common Stock 6150 6150 D Options (Right to Buy) 19.50 2009-02-01 2018-02-01 Common Stock 34930 34930 D Options (Right to Buy) 5.64 2010-02-06 2019-02-06 Common Stock 38900 38900 D Options (Right to Buy) 16.71 2011-02-05 2020-02-05 Common Stock 16129 16129 D Includes 12,492 Restricted Stock Units granted to Reporting Person on February 5, 2010. These RSUs will vest effective February 5, 2013 if 1% ROI or ROI in top three quartiles of peer group performance criteria is met, and will be settled for stock on the vesting date Includes 8,033 Restricted Stock Units granted to Reporting Person on February 4, 2011. These RSUs will vest effective February 4, 2014 if 1% ROI or ROI in top three quartiles of peer group performance criteria is met, and will be settled for stock on the vesting date. Options granted 02/04/11 vest as follows: 2727 on 02/04/12, 2727 on 02/04/13, 2727 on 02/04/14 and 2728 on 02/04/15. Restricted Stock Units settled for cash. Performance Stock Units granted on February 5, 2010 will vest on or after February 5, 2013 at 100% if the Company's average ROI falls within the first quartile ROI ranking compared to its peer group; 75% if in the second quartile, zero if in the bottom half. PSUs will be settled for cash based on the fair market value on the vesting date. Performance Stock Units granted on February 6, 2009 will vest on or after February 6, 2012 at 100% if the Company's average ROI falls within the first quartile ROI ranking compared to its peer group; 75% if in the second quartile; zero if in the bottom half. PSUs will be settled for cash based on the fair market value on the vesting date. The exercise price of these outstanding options were amended from that previously reported in connection with the spin-off announced by the Company effective 12/28/2007, and pursuant to anti-dilution provisions set forth in the option plan, and is intended to give the option the same economic value it had before the spin-off. Options Vesting Schedule for Options Granted 02/02/2007. Options Exerciserable 02/02/2008 - 1,537; Options Exerciserable 02/02/2009 - 1,538; Options Exerciserable 02/02/2010 - 1,537; and Options Exerciserable 02/02/2011 - 1,538. Granted 02/01/2008 Option Vesting Schedule: Options exercisable 02/01/2009, 8732; Options exercisable 02/01/2010, 8733; Options exercisable 02/04/2010, 8732; Options exercisable 02/01/2012, 8733. Options Vesting Schedule for Options Granted 02/06/2009. Options Exerciserable 02/06/2010 - 9725; Options Exerciserable 02/06/2011 - 9725; Options Exerciserable 02/06/2012 - 9725; and Options Exerciserable 02/06/2013 - 9725. Options Vesting Schedule for Options Granted 02/05/2010. Options Exercisable 02/05/2011 - 4,032; Options Exercisable 02/05/2012 - 4,032; Options Exercisable 02/05/2013 - 4,032; and Options Exercisable 02/06/2014 - 4,033. /s/ Leslie K. O'Neal on Behalf of Reporting Person 2011-02-08