Document:

Exhibit 10.2 (W0276514).DOC

Exhibit 10.2

Wausau Paper Corp.

2013 Equity Incentive Compensation Plan

Grants of performance units under the 2013 Equity Incentive Compensation Plan will vest upon the Company’s attainment of certain targeted levels of “total shareholder return.” The calculation of total shareholder return is measured over a three year period, and is calculated by reference to a “target” and a “maximum” total shareholder return.  If total shareholder return is at the target (7% per year return, or 22.5% over the three-year performance period), grant recipients will receive 50% of the total potential award.  If total shareholder return is at or above the maximum (14% per year, or 45.0% over the three-year performance period), grant recipients will receive 100% of the total potential award.  At total shareholder return levels that are less than the maximum, the award is prorated based on the actual level of total shareholder return that is achieved.  The maximum potential award for the CEO, chief financial officer, and each of the other executive officers with segment operating responsibility, as well as the levels that would be achieved at the target for total shareholder return, is described in the table below.

					
	 
	Performance Units Granted

	 
	Total Opportunity

	 

	 
	(Award at Max. TSR)

	Award at Target TSR

	 
	 
	 

	CEO

	143,973

	 
	71,987

	 

	 
	 
	 
	 
	 

	Executive Vice President, Finance

	34,319

	 
	17,160

	 

	 
	 
	 
	 
	 

	Senior Vice President, Towel & Tissue

	27,132

	 
	13,566

	 

	 
	 
	 
	 
	 

	Senior Vice President, Paper

	27,640

	 
	13,820

	 

Under the 2013 Equity Incentive Compensation Plan, “total shareholder return” shall be determined by dividing (1) the sum of (a) the average closing share price for the Company’s common stock over the last 60 trading days of the period immediately prior to the end of the three-year performance period (the “Maturity Date FMV”); and (b) cash dividends paid during the three-year performance period; by (2) the average closing share price for the Company’s common stock over the last 60 trading days preceding the date of grant (the “Grant Date FMV”).  The formula for calculating TSR is as follows:

			
	(Maturity Date FMV + Cash Dividends Paid)

	– 1

	=  Total Shareholder Return

	Grant Date FMV

Total shareholder return is calculated to closest tenth of a percent, and vested performance units are rounded to the next highest whole unit.Exhibit 10.3 (W0276517).DOC

Exhibit 10.3

Wausau Paper Corp.

2011 Cash Incentive Compensation Plan

For

Executive Officers

Executive officers are entitled to receive cash incentive compensation with respect to each fiscal year based on:

(1)

the level of achievement by the Company of targeted goals for adjusted earnings per share, as derived from targeted return on capital employed; 

(2)

for executive officers with direct segment operating responsibility, achievement of targeted segment operating profit targets; and

(3)

the level of achievement of specified quantifiable bottom-line oriented targets and specific operational or strategic goals including (a) strategic market direction, (b) new products margins and revenue levels, (c) increase in operating efficiencies, (d) implantation of and achievement of internal rate of return on approved capital spending projects, (e) volume sales growth and product mix, (f) working capital levels, (g) volume of sales of timberlands, (h) objectives for cost reduction or containment, (i) various objectives for organizational development and technology systems initiatives, (j) debt management objectives, and (j) safety incident rates.

The following table sets forth, as a percentage of base salary, the maximum incentive compensation opportunity for the CEO, chief financial officer, and each of the other executive officers with segment operating responsibility.

							
	 
	 
	Segment

	Individual

	 

	 
	Earnings Per Share(1)

	Operating Profits(2)

	Objectives(3)

	Total

	 
	 
	 
	Targeted

	 
	 
	 

	 
	Targeted

	Max.

	Range of

	Max.

	Max.

	Max.

	 
	Range of

	% of

	Operating

	% of

	% of

	% of

	 
	EPS

	Salary

	Profits

	Salary

	Salary

	Salary

	 
	 
	 
	 
	 
	 
	 

	CEO

	$.20–$.75

	120%

	–

	–

	30%

	150%

	 
	 
	 
	 
	 
	 
	 

	Executive Vice President–Finance

	$.20–$.75

	90%

	–

	–

	30%

	120%

	 
	 
	 
	 
	 
	 
	 

	Senior Vice President, Towel & Tissue

	$.20–$.75

	25%

	$ 30–55 M

	50%

	25%

	100%

	 
	 
	 
	 
	 
	 
	 

	Senior Vice President, Paper

	$.20–$.75

	25%

	$ 10–33 M

	50%

	25%

	100%

(1) For purposes of this plan, “earnings per share” means earnings per share as reported in the Company’s audited financial statements, excluding base gains from timberland sales and adjusted for other extraordinary items (which may include, for example, facility closure charges, one-time expenses associated with certain major capital projects, black liquor tax credit impacts, or other similar items) as determined in the discretion of the Compensation 

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Committee.  Incentive bonuses will be 0% of base salary if earnings are at the bottom of the targeted range of earnings per share and will increase on a pro rata basis to the officer’s maximum of percentage of base salary at the top of the targeted range.  

(2) For purposes of this plan, “operating profits” means the segment operating profits as reported in connection with the Company’s audited financial statements adjusted for other extraordinary items (which may include, for example, facility closure charges, one-time expenses associated with certain major capital projects, or other similar items) as determined in the discretion of the Compensation Committee.  Incentive bonuses are 0% of base salary if operating profits are at the bottom of the targeted range for the officer’s respective operating segment’s targeted operating profit and increase on a pro rata basis to the officer’s maximum percentage of base salary at the top of the targeted range.

(3) Individual performance objectives are approved at the beginning of the year by the Compensation Committee.

-2-Exhibit 10.4 (W0276424).DOC

Exhibit 10.4

BOARD OF DIRECTORS COMPENSATION

December 17, 2010

		
	 
	 

	Board Retainer

	$40,000 ($3,333/month)(1)

	 
	 

	Chair Retainer

	$100,000

	 
	 

	 
	 

	Board Meetings

	$1,500

	 
	$1,000 telephonic

	 
	 

	 
	 

	Committee Chair Retainer

	$10,000 Audit

	 
	$5,000 Compensation, Governance, and Executive

	 
	 

	 
	 

	Committee Meetings

	$1,000

	 
	$500 telephonic

	 
	 

	 
	 

	Restricted Stock Units

	$50,000 equivalent value annually(2)

	(Performance Units)

	 

(1) Director may elect to defer retainer and meeting fees under the 2005 Directors Deferred Compensation Plan.  Board retainer and other amounts under this policy apply only to non-employee directors.

(2) See attached Appendix A.

Board of Directors Compensation 

Appendix A

December 17, 2010

This Appendix A describes the award of Performance Units to Directors pursuant to the Corporation’s Director Compensation policy adopted December 16, 2005, as last amended December 17, 2010 (the “Policy”).

1.

Grants of Performance Units.  Each person who is a non-employee Director on the first business day of a Fiscal Year that begins on or after January 1, 2011 is hereby awarded (a) that number of whole and fractional Performance Units (“Units”) that is determined by dividing (i) $50,000 by (ii) the Fair Market Value of the Common Stock on such date and (b) the related Dividend Equivalents specified in paragraph 2 on such date in consideration of the services as a Director to be performed by such person during such Fiscal Year.  Each person who is first elected a Director on a date other than the first business day of a Fiscal Year is hereby awarded such Units and the related Dividend Equivalents specified in paragraph 2 on the date of such election in consideration of the services as a Director to be performed by such person during the remainder of such Fiscal Year.  Fractional Units shall be rounded to the nearest one-ten-thousandth of a Unit.

2.

Grants of Dividend Equivalents.  Dividend Equivalents are hereby granted with respect to each grant of Units made pursuant to paragraph 1 and shall be credited to the Grantee in the form of whole and fractional Units (“Additional Units”) which shall be subject to the same terms and conditions as the Units granted pursuant to paragraph 1.  Additional Units, once credited to Grantee pursuant to this paragraph, shall be referred to as “Units.”

3.

Grant Agreement.  A Grant Agreement in a form approved by the Committee shall evidence the award of the Units pursuant to this Policy. 

4.

Settlement of Units.  Units shall be distributed promptly following the Grantee’s Termination of Service; provided, however, that a Grantee may elect, prior to (a) the first day of any Fiscal Year, in the case of a person who was a Director prior to the first day of such Fiscal Year, and (b) prior to election as a Director, in the case of a person who was not a Director on the first day of the Fiscal Year in which he first became a Director, that Units attributable to a Fiscal Year Grant may be deferred for a period of up to two years from the date on which settlement and distribution would otherwise occur.  Any such election shall be made in accordance with the provisions of the Grant Agreement evidencing the award of the Units pursuant to this Policy and the provisions of Code Section 409A.

5.

Amendment or Termination.  The award of Units provided for by the Policy may be amended or terminated as to any Fiscal Year subsequent to such amendment or termination.

6.

2010 Stock Incentive Plan.  The Units shall be awarded pursuant to the terms of the Corporation’s 2010 Stock Incentive Plan (the “Plan”).  Unless otherwise defined, all terms used in this Appendix, when capitalized, have the same meaning as such terms are defined in the Plan and each such definition is hereby incorporated by this reference.

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