Document:

Exhibit 10.1 (W0233832).DOC

Exhibit 10.1

Wausau Paper Corp.

2010 Equity Incentive Compensation Plan

A portion of each individual officer’s grant, referred to below as the “Retention Award,” will vest upon meeting certain criteria relating to continued employment with the Company.  The remaining portion of the grant, referred to below as the “Performance Incentive,” will vest upon meeting both performance and continued employment criteria.  The maximum potential award for the CEO, chief financial officer, and each of the other executive officers with segment operating responsibility is described in the “Total Opportunity” column below.

				
	 
	Performance Units Granted

	 
	Retention Award*

	Maximum 

Performance Incentive**

	Total Opportunity

	 
	 
	 
	 

	CEO

	17,796

	53,388

	71,184

	 
	 
	 
	 

	Executive Vice President, Finance

	6,775

	20,326

	27,101

	 
	 
	 
	 

	Senior Vice President, Towel & Tissue

	4,631

	15,437

	20,068

	 
	 
	 
	 

	Senior Vice President, Paper

	4,696

	15,652

	20,348

   *The Retention Award is a grant of performance units equal to a specified percentage of base salary, which vests and is converted to a right to receive common stock (or, in the Compensation Committee’s discretion, cash with an equivalent value) based on continuous employment with the Company (in the same position or in a position with greater authority) through January 4, 2012.

**The Performance Incentive is a grant of performance units equal to a specified percentage of base salary.  These performance units may vest and be converted to a right to receive common stock (or, in the Compensation Committee’s discretion, cash with an equivalent value) based on (1) continuous employment with the Company (in the same position or in a position with greater authority) through January 4, 2012; and (2) the Company’s achieving levels of Return on Capital Employed (“ROCE”) ranging from 5% ROCE to 14% ROCE.  For purposes of this plan, ROCE is determined by excluding base gains from timberland sales and adjusting 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).  ROCE is calculated after incentive compensation expenses have been included.  No shares of common stock or cash will be awarded if earnings are at the bottom of the targeted range of ROCE, and the number of shares of common stock or cash awarded will increase on a pro rata basis to the maximum potential award if ROCE is at the top of the targeted range.Exhibit 10.2 (W0233833).DOC

Exhibit 10.2

Wausau Paper Corp.

2010 Cash Incentive Compensation Plan

For

Executive Officers

Executive officers are entitled to receive cash incentive compensation with respect to each fiscal year upon achievement of targeted company or personal objectives.  Executive officers are entitled to receive incentive compensation based upon:

(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) internal rate of return on approved capital spending, (e) volume growth and product mix, (f) working capital levels, (g) volume of sales of timberlands, (h) objectives for cost reduction or containment, and (i) various objectives for organizational development.

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

	95%

	–

	–

	30%

	125%

	 
	 
	 
	 
	 
	 
	 

	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, or other similar items) as determined in the discretion of the Compensation 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.Exhibit 10.3 (W0233834).DOC

Exhibit 10.3

BOARD OF DIRECTORS COMPENSATION

December 18, 2009

		
	 
	 

	Board Retainer

	$30,000 ($2,500/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

	 
	 

	 
	 

	Options

	3,000 shares annually 

	 
	on annual meeting date(2)

	 
	 

	 
	 

	Restricted Stock Units

	$30,000 equivalent value annually(3)

	(Performance Units)

	 

(1) Director may elect to defer retainer and meeting fees under the 2005 Directors Deferred Compensation Plan.

(2) All directors elected by the Board to fill a vacancy shall receive an initial grant of options with respect to 3,000 shares upon election by the Board.

(3) See attached Appendix A.

Board of Directors Compensation 

Appendix A

December 18, 2009

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 18, 2009 (the “Policy”).

1.

Grants of Performance Units.  Each person who is a Director on the first business day of a Fiscal Year which begins on or after January 1, 2010 is hereby awarded (a) that number of whole and fractional Performance Units (“Units”) which is determined by dividing (i) $30,000 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.

2000 Stock Incentive Plan.  The Units shall be awarded pursuant to the terms of the Corporation’s 2000 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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