Item 1.02 Termination of a Material Definitive Agreement.

The information contained in Item 2.04 concerning Deltic Timber Corporation's (the "Company") accepted Notice Letter (defined below) is hereby incorporated by reference.

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement

On October 29, 2008, the Company delivered a notice of voluntary prepayment ("Notice Letter") to Metropolitan Life Insurance Company, MetLife Investors USA Insurance Company, New England Life Insurance Company, General American Life Insurance Company, MetLife Insurance Company of Connecticut, and Modern Woodmen of America (collectively, the "Note Purchasers") to prepay in full all of its outstanding obligations as of November 4, 2008 relating to the $30.0 million 6.01% Senior Notes that were issued pursuant to a Note Purchase Agreement dated December 20, 2002, as amended. As part of the notice, the Company requested that the Note Purchasers waive any prepayment penalty or other requirement to pay any "make whole" fees. On October 30, 2008, all Note Purchasers, except for Modern Woodmen of America, accepted the Company's proposal, counter-signed the Notice Letter, and are waiving any prepayment penalties or "make whole" fees. As a result, $25.0 million of the $30.0 million notes will be paid in full, surrendered to the Company and cancelled.

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