Document:

Exhibit 10.10 Amended

AMENDMENT NO. 1 TO CREDIT AGREEMENT
Amendment No. 1, dated as of August 1, 2012 (this “Amendment” or this “Amendment No. 1”), to the Credit Agreement, dated as of August 2, 2011, among OM GROUP, INC., a Delaware corporation (the “Company”), HARKO C.V., a limited partnership (commanditaire vennootschap) organized under the laws of the Netherlands (the “Dutch Borrower” and, together with the Company, the “Borrowers” and each a “Borrower”), each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”) and BANK OF AMERICA, N.A., as Administrative Agent (the “Administrative Agent”), Swing Line Lender and L/C Issuer.  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.
The Company has requested that the Required Lenders agree to certain amendments to the Credit Agreement, and each of the Lenders party hereto (which Lenders collectively constitute the Required Lenders), have agreed, subject to the terms and conditions set forth herein, to amend the Credit Agreement as herein provided.  Accordingly the Company and the Lenders party hereto agree as follows:
Section I.Amendments.
(a)    The Credit Agreement is, effective as of the Amendment No. 1 Effective Date (as defined below), hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in the Section 1(b), 1(c) and 1(d) below.
(b)    The definition of “L/C Issuer” is hereby amended as follows:
““L/C Issuer” means Bank of America and PNC Bank, National Association each in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder, and, solely with respect to the Existing Letters of Credit, mean the “Issuing Bank” with respect to such Existing Letters of Credit set forth on Schedule 1.01(a).”
(c)    The definition of “Consolidated Net Income” is hereby amended as follows: 
““Consolidated Net Income” means, for any period, for the Company and its Subsidiaries on a consolidated basis for any period, net income (or loss) for that period, excluding, without duplication, (a) the income (or loss) of (i) any Person (other than a Subsidiary of the Company) in which any other Person (other than the Company or any of its Subsidiaries) has a joint interest or (ii) any Unrestricted Subsidiary, in each case, except to the extent of the amount of dividends or other distributions actually paid in cash to the Company or any of its Subsidiaries by such Person during such period, and (b) the income of any Subsidiary of the 

        

Company in which any Person (other than the Company or any of its Subsidiaries) has a joint interest, to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of that incomeincome to a Loan Party in cash is not at the time permitted by operation of the terms of its Organization Documents or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary.””Subsidiary, (c) any net after-tax non-recurring gains, losses or charges in connec-tion with the Transactions and (d) any net after-tax non-cash non-recurring gain or loss.”

(d)    Section 7.05(j) is hereby amended as follows:
“Dispositions of property by the Company or any Restricted Subsidiary not otherwise permitted under this Section 7.05; provided that (i) at the time of such Disposition, no Event of Default shall exist or would result from such Disposition, (ii) the aggregate consideration for all Dispositions pursuant to this clause (j) shall not exceed $35,000,000, (iii) the sale price for such property shall be paid to the Company or such Restricted Subsidiary for not less than 75% cash consideration; provided that for purposes of clause (iii), (A) the amount of any liabilities (as shown on the Company’s or any Restricted Subsidiary’s most recent balance sheet or in the notes thereto) of the Company or any Restricted Subsidiary (other than liabilities that are by their terms subordinated to the Obligations) that are assumed by the transferee of any such assets, (B) any notes or other obligations or other securities or assets received by the Company or any Restricted Subsidiary from such transferee that are converted by the Company or any Restricted Subsidiary into cash within 180 days of the receipt thereof (to the extent of the cash received) and (C) with respect to any lease of assets by the Company or any Restricted Subsidiary that constitutes a disposition, receipt of lease payments over time on market terms (as determined in good faith by the Company) where the payment consideration is at least 75% cash consideration shall, in each case, be deemed to be cash, (iiiiv) the limitation set forth in clause (i)(ii)shall not apply if, on a Pro Forma Basis after giving effect to such Disposition, the Company shall be in compliance with the Incurrence Test and (iv) the Net Cash Proceeds of such Disposition shall be applied to prepay Term Loans pursuant to Section 2.05(b)(ii);”.
Section 2.    Conditions Precedent to the Effectiveness of this Amendment.
This Amendment shall become effective as of the date when, and only when, each of the following conditions precedent shall have been (or are or will be substantially concurrently therewith) satisfied (the “Amendment No. 1 Effective Date”):
(a)    the Administrative Agent shall have received (i) this Amendment, duly executed and delivered by (x) the Company, and (y) Lenders constituting the Required Lenders;

        

(b)    the Company shall have paid all fees and expenses payable to the Lenders, Administrative Agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Amendment No. 1 Lead Arranger”) on the Amendment No. 1 Effective Date, including as set forth in Section 3 hereof (to the extent invoiced); 
(c)    the Administrative Agent shall have received a satisfactory legal opinion of Jones Day; and
(d)    the Administrative Agent shall have received such other documents, instruments, agreements or information as may be reasonably requested by the Administrative Agent.  All corporate and legal proceedings and all instruments and agreements relating to the transactions contemplated by this Amendment No. 1 or in any other document delivered in connection herewith shall be reasonably satisfactory in form and substance to the Administrative Agent and its counsel, and the Administrative Agent shall have received all information and copies of all documents and papers, including records of corporate proceedings, governmental approvals, good standing certificates and bring-down telegrams, if any, which the Administrative Agent may reasonably have requested, such documents and papers where appropriate to be certified by proper corporate or governmental authorities.  The documents referred to in this Section 2(d) shall be delivered to the Administrative Agent no later than the Amendment No. 1 Effective Date.
Section 3.    Fees and Reimbursement of Expenses.
(a)    The Company agrees to pay to the Administrative Agent, for the ratable benefit of each consenting Lender, an irrevocable and non-refundable fee in an amount equal to 0.05% of such Lender’s Commitment (the “Work Fee”), which Work Fee shall be fully earned and payable on the Amendment No. 1 Effective Date.
(b)    The Company agrees to pay in accordance with the terms of Section 10.04 of the Credit Agreement all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent and Amendment No. 1 Lead Arrangers (including the reasonable fees, charges and disbursements of Cahill Gordon & Reindel LLP) in connection with the preparation, negotiation, execution, delivery and administration of this Amendment.
Section 4.    Reference to and Effect on the Loan Documents.
(a)    Except as specifically amended above, all of the terms and provisions of the Credit Agreement and all other Loan Documents are and shall remain in full force and effect and are hereby ratified and confirmed.
(b)    Except as expressly set forth herein, this Amendment shall not operate as a waiver of any right, power or remedy of the Lenders, the Borrowers, the Guarantors or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any other provision of any of the Loan Documents or for any purpose.

        

(c)    It is understood and agreed that each reference in each Loan Document to the Credit Agreement, whether direct or indirect, shall hereafter be deemed to be a reference to the Credit Agreement as amended hereby.  Without limiting the generality of the foregoing, the Collateral Documents and all of the Collateral described therein do and shall continue to secure the payment of all Obligations of the Loan Parties under the Loan Documents, in each case, as amended by this Amendment.  The Company hereby agrees to execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably require from time to time in order to carry out more effectively the purposes of the Loan Documents, in each case, as amended by this Amendment.  For the avoidance of doubt, each Lender executing this Amendment hereby authorizes the Administrative Agent to take any and all necessary actions to effect the purpose of the foregoing sentence, including, without limitation, amending any of Loan Documents (other than the Credit Agreement) without further action or consent of the Lenders.
(d)    This Amendment is a Loan Document.  For the avoidance of doubt, the indemnification provisions set forth in Section 10.04 of the Credit Agreement shall apply to this Amendment.
Section 5.    Representations and Warranties. In order to induce the Required Lenders to consent to the amendments contained herein, the Company represents and warrants as set forth below:
(i)    After giving effect to this Amendment No. 1, the Credit Agreement, as amended, does not impair the validity, effectiveness or priority of the Liens granted pursuant to the Collateral Documents, and such Liens continue unimpaired with the same priority to secure repayment of all Obligations, whether heretofore or hereafter incurred.  The position of the Lenders with respect to such Liens, the Collateral in which a security interest was granted pursuant to the Collateral Documents and the ability of the Administrative Agent to realize upon such Liens pursuant to the terms of the Collateral Documents have not been adversely affected in any material respect by the amendments to the Credit Agreement effected pursuant to this Amendment No. 1 or by the execution, delivery, performance or effectiveness of this Amendment No. 1.
(ii)    The Company reaffirms as of the date hereof and the Amendment No. 1 Effective Date its covenants and agreements contained in the Credit Agreement.  The Company further confirms that each Collateral Document and other Loan Document to which it is a party is, and shall continue to be, in full force and effect, and the same are hereby ratified, approved and confirmed in all respects, except as the Credit Agreement may be amended by this Amendment No. 1.
(iii)    Immediately after giving effect to this Amendment No. 1, the representations and warranties set forth in Article V of the Credit Agreement (as so amended) and each other Loan Document are, in each case, true and correct in all material respects (unless stated to relate solely to an earlier date, in which case such 

        

representations and warranties shall be true and correct in all material respects as of such earlier date).
(iv)    This Amendment No. 1 constitutes the legal, valid and binding obligation of the Company enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.
(v)    The Company has all requisite corporate power and authority to enter into this Amendment No. 1 and to carry out the transactions contemplated by, and perform its obligations under, this Amendment No. 1 and the Credit Agreement as amended by this Amendment No. 1.
(vi)    As of the Amendment No. 1 Effective Date (and giving effect to this Amendment No. 1), no event has occurred and is continuing or will result from the consummation of the transactions contemplated by this Amendment No. 1 and the Credit Agreement, as amended by this Amendment No. 1 that would constitute an Event of Default or a Default.
Section 6.    Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery by telecopier of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart of this Amendment.  The Administrative Agent may also require that any such documents and signatures delivered by telecopier be confirmed by a manually signed original thereof; provided that the failure to request or deliver the same shall not limit the effectiveness of any document or signature delivered by telecopier.
Section 7.    Governing Law.
(i)    GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
(ii)    SUBMISSION TO JURISDICTION.  SUBJECT TO THE LAST SENTENCE OF THIS SECTION 7(ii), EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES 

        

HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AMENDMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO ENFORCEMENT OF RIGHTS UNDER THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT, INCLUDING WITH RESPECT TO COLLATERAL, AGAINST ANY BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.
(iii)    WAIVER OF VENUE.  EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
(iv)    SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN CREDIT AGREEMENT.  NOTHING IN THIS AMENDMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.
Section 8.    Headings.  Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.
Section 9.    Notices.  All communications and notices hereunder shall be given as provided in the Credit Agreement.
Section 10.    Severability.  The illegality or unenforceability of any provision of this Amendment or any instrument or agreement required hereunder shall not in any way affect 

        

or impair the legality or enforceability of the remaining provisions of this Amendment or any instrument or agreement required hereunder.
Section 11.    Successors. The terms of this Amendment shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns.
Section 12.    Waiver of Jury Trial.
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
[SIGNATURE PAGES FOLLOW]

        

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first written above.
OM GROUP, INC., as Borrower
By:/s/Christopher M. Hix
Name: Christopher M. Hix                Title: Vice President and Chief Financial Officer

BANK OF AMERICA, N.A., as Administrative Agent
By:        
Name: 
Title:

PNC BANK, N.A., as L/C Issuer
By:        
Name: 
Title:

_______________________________________,
as an Existing Lender
By:        
Name: 
Title:
[If a second signature is required]
By:        
Name: 
Title:Exhibit 10.1  (W0580817.DOC;1)

Exhibit 10.1

CONFIDENTIAL

EXECUTIVE RETENTION BONUS AND SEVERANCE AGREEMENT

This Confidential Executive Retention Bonus and Severance Agreement (“Agreement”) is entered into as of February 15, 2013, between Michael W. Nelson (the “Executive”) and Wausau Paper Mills, LLC, a Wisconsin limited liability company (the “Company”).

RECITALS:

A.

The Company, along with its parent company, Wausau Paper Corp. (the “Parent”), is in the process of evaluating various strategic alternatives with respect to the Company’s business, which is commonly referred to as the “Paper Segment” of the Parent’s business (the “Paper Segment”).

B.

The Executive’s continued service and dedication to the Company are important to the Company’s successful implementation of any transaction or series of transactions involving a disposition of the Paper Segment.

C.

To induce the Executive to remain employed with the Company, the Company has agreed to offer the Executive a retention bonus and to provide certain severance benefits to the Executive, under certain circumstances, as provided in this Agreement.

AGREEMENT:

ARTICLE 1 -  DEFINITIONS

Section  1.1

Acquiror.  “Acquiror” means any person or entity that acquires the Paper Segment in a Disposition Transaction that is structured as an asset sale and purchase transaction or in a Disposition Transaction that is structured as a merger transaction in which the Company is not a surviving entity in connection with the merger. 

Section  1.2

Cause.  “Cause” shall mean any of the following:

(a)

The willful and continued failure of the Executive to perform substantially all of the Executive’s duties with the Company, after a written demand for substantial performance is delivered to the Executive by the Executive’s supervisor that specifically identifies the manner in which the supervisor believes that the Executive has not substantially performed the Executive’s duties.

(b)

The willful engaging by the Executive in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company.

-1-

(c)

A Termination of Employment by Executive due to disability entitling the Executive to benefits under the Company’s long-term disability program.

For purposes of this Section 1.2, no act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company.  Termination of the Executive by the Company in contemplation of a Disposition Transaction (as defined below) shall not be considered for Cause.  The burden of proof in the evaluation of any circumstances arising under this Section 1.2 shall be on the Executive. 

Section  1.3

Code.  “Code” means the Internal Revenue Code of 1986, as amended.

Section  1.4

Controlled Group.  “Controlled Group” means the Company, the Parent, and each other member of the controlled group of corporations or other entities under common control to which the Company belongs for purposes of determining whether a separation from service has occurred pursuant to Code Section 409A and the regulations promulgated thereunder.

Section  1.5

Disposition Transaction.  “Disposition Transaction” shall mean a successful disposition of the Paper Segment as determined by the Chief Executive Officer of the Parent in his sole discretion.

Section  1.6

Effective Date.  “Effective Date” shall mean February 15, 2013.

Section  1.7

Good Reason.  “Good Reason” shall mean a material reduction in the Executive’s annual cash compensation opportunity (including both the Executive’s base salary and the Executive’s target cash bonus opportunity but excluding any equity or equity-based incentive or other compensation) with the Company that arises contemporaneously with the Closing of a Disposition Transaction or within thirty (30) days thereafter; provided, however, that “Good Reason” shall not exist unless the Executive first provides written notice to the Company of the existence of circumstances providing grounds for “Good Reason” and the Company has had at least fifteen (15) business days from the date such notice is provided to cure such circumstances.

Section  1.8

Parent.  “Parent” shall have the meaning set forth in the Recitals section of this Agreement.

Section  1.9

Retention Bonus.  “Retention Bonus” shall have the meaning set forth in Section 2.1 of this Agreement.

Section  1.10

Retention Period.  “Retention Period” shall mean the period of time from the Effective Date until the date of closing of any Disposition Transaction.

Section  1.11

Severance Benefit.  “Severance Benefit” shall have the meaning set forth in Section 3.2 of this Agreement.

-2-

Section  1.12

Termination of Employment.  “Termination of Employment” means the termination of the Executive’s employment by Company and each member of the Controlled Group.

ARTICLE 2 -  RETENTION BONUS

Section  2.1

Payment of Retention Bonus by Company.  The Company will pay the Executive a retention bonus in the amount of Two Hundred Fifty Thousand Dollars ($250,000.00), less all applicable withholdings and deductions required by law (the “Retention Bonus”), within five (5) business days following the closing of a Disposition Transaction, if all of the Eligibility Criteria described in Section 2.2 below are satisfied.

Section  2.2

Eligibility Criteria for Retention Bonus.  The Executive shall be entitled to payment of the Retention Bonus only if all of the following eligibility criteria are satisfied:

(a)

The Executive’s performance has been satisfactory, as determined in the Company’s sole discretion, from the Effective Date through the date of closing of a Disposition Transaction.

(b)

The Executive is actively employed by the Company on the business day immediately preceding the end of the Retention Period.

ARTICLE 3 -  SEVERANCE BENEFITS PAYABLE TO EXECUTIVE

Section  3.1

Circumstances under which Severance Benefits Payable.  In addition to the Retention Bonus provided for in Article 2 of this Agreement, Executive will be entitled to payment of severance benefits if both of the following circumstances occur:

(a)

a Disposition Transaction occurs prior to termination of this Agreement, and

(b)

the Executive incurs an involuntary Termination of Employment without Cause, or the Executive incurs a voluntary Termination of Employment with Good Reason, contemporaneously with the closing of a Disposition Transaction or within thirty (30) days thereafter (a “Severance-Triggering Termination”).

Section  3.2

Severance Benefits upon a Disposition Transaction.  In the event of any Severance-Triggering Termination, the Executive will be entitled to a severance benefit (the “Severance Benefit”) equal to twelve (12) months of salary continuation (the “Salary Continuation Portion”), plus an amount equal to the Executive’s average annual cash bonus for the three years immediately preceding the year in which the Severance-Triggering Termination occurs (the “Average Annual Bonus Amount”).  The Average Annual Bonus Amount, once calculated, shall be divided by twelve (12), and that amount shall be paid to the Executive, along with Salary Continuation Portion of the Severance Benefit, in accordance with the normal payroll practices of the Parent.  The Severance Benefit payments shall begin on the first pay date following the later of (a) the complete execution date of the separation and release of claims 

-3-

agreement described in Section 3.4 below, or (b) the date that any revocation period under such separation and release of claims agreement has expired.  Notwithstanding anything to the contrary contained in this Agreement, the payment of any Severance Benefit (and the obligation of the Company to pay any Severance Benefit under the terms of this Agreement) shall immediately end as of the date of the Executive’s death or any offer of employment by an Acquiror as set forth in Section 3.6 of this Agreement that does not give rise to Good Reason for a Termination of Employment by the Executive.

Section  3.3

Health Benefits Continuation.  If the Executive incurs a Severance-Triggering Termination and the Executive elects continuation coverage under the Company’s group health, dental and/or vision plans upon such Termination of Employment in accordance with the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”), the Company shall continue any employer contribution towards such elected coverages that it or the Parent then makes on behalf of other similarly situated executives until the last day of the month in which Executive’s severance benefit ends; provided, however, that the Executive shall be obligated to make any additional contributions towards such elected coverages in accordance with COBRA.

Section  3.4

Separation Agreement and Release Required.  In order to receive any severance benefits under this Agreement, Executive must sign a separation agreement and release of claims agreement in a form determined by the Company in its sole discretion.

Section  3.5

No Severance Benefit in Case of Employment Offer.  Notwithstanding anything to the contrary contained in this Agreement, in the event of a Disposition Transaction, if the Executive is offered continuing employment in any position whatsoever with the Company or with any Acquiror (or any affiliate of the Acquiror), the Executive shall not be entitled to any Severance Benefit under this Agreement in the absence of Good Reason.  

Section  3.6

Exclusivity of Severance Benefits.  The Severance Benefit is in lieu of any severance or retention bonus payments or benefits to which Executive otherwise might be entitled under any Company severance plan or program or prior retention bonus agreement.  Notwithstanding the foregoing, this Agreement shall not affect any other earned (and fully-vested) benefits to which the Executive may be entitled under any Company or Parent employee benefit plans.

ARTICLE 4 -  TERMINATION

Section  4.1

Termination of Agreement by Company.  During the Retention Period, the Company may terminate this Agreement upon any of the following circumstances:

(a)

The Executive incurs a Termination of Employment by the Company for Cause.

(b)

The Parent’s board of directors determines that further pursuit of a Disposition Transaction is not in the best interest of the Parent or its shareholders.

-4-

Section  4.2

Termination of Agreement by Executive.  During the Retention Period, Executive shall be deemed to have terminated this Agreement if the Executive voluntarily incurs a Termination of Employment.

Section  4.3

Termination of Agreement by Reason of Executive’s Death.  This Agreement will automatically terminate if Executive dies during the Retention Period.  The termination date in such circumstances will be the date of Executive’s death.

Section  4.4

Automatic Termination Following Expiration of Retention Period.  This Agreement shall automatically terminate and be of no further force and effect thirty (30) days following the end of the Retention Period; provided, however, that any payment obligations incurred by the Company shall continue following any such automatic termination of this Agreement.

ARTICLE 5 -  MISCELLANEOUS

Section  5.1

Assignment.  Neither the Executive nor the Company may assign this Agreement without the prior written consent of the other.  Notwithstanding the foregoing limitation, the Executive and the Company agree that the Company may assign this Agreement to any person or entity who shall acquire substantially all the assets of the Paper Segment and, in such case, require such asset purchaser to assume the obligations of the Company and Parent under this Agreement. 

Section  5.2

Entire Agreement, Amendment.  This Agreement contains the parties’ entire agreement regarding its subject matter and may only be amended in a writing signed by the parties.  This Agreement supersedes any and all prior oral or written agreements (including letters, policies and memoranda) between the Executive and the Company regarding the subject matter of this Agreement.

Section  5.3

Choice of Law.  Wisconsin law governs this Agreement.

Section  5.4

Waivers.  No party’s failure to exercise, or delay in exercising, any right or remedy under this Agreement will be a waiver of such right or remedy, nor will any single or partial exercise of any right or remedy preclude any or further exercise of such right or remedy.

Section  5.5

Notices.  All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly given on the date of service, if personally served on the party to whom notice is being given, or on the third day after mailing, if mailed to the party to whom notice is to be given, by first class mail, and properly addressed as follows:

To Executive

Personal and Confidential

Michael W. Nelson

7203 Goldenrod Circle

Wausau, WI  54401

-5-

To Company

Personal and Confidential

Wausau Paper Mills, LLC

c/o Wausau Paper Corp.

100 Paper Place

Mosinee, WI  54455

Attention:  Curtis R. Schmidt

Any party may change its address for purposes of this paragraph by giving the other party written notice of the new address in the manner set forth above.

Section  5.6

Compliance with Code Section 409A.  This Agreement is intended to comply with, or be exempt from, Section 409A of the Code and shall be construed and administered in accordance with Section 409A of the Code.

Section  5.7

Limited Purpose of Agreement.  This Agreement applies only to the Executive for the limited purpose of a Disposition Transaction involving the Paper Segment, and for no other purpose.  This Agreement shall not be considered to give rise to any expectation of benefits by the Executive (for any purpose except as expressly set forth in this Agreement) or for any other employee of the Company, the Parent, or any other member of the Controlled Group.

WAUSAU PAPER MILLS, LLC

EXECUTIVE

By 

HENRY C. NEWELL

MICHAEL W. NELSON

Henry C. Newell

Michael W. Nelson

President and Chief Executive Officer

Manager

-6-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]