Document:

Form of RSU Deferral Agreement for Founders Grant RSUs

 Exhibit 10.4 
 Founders Grant RSUs 
 [Letterhead of Clearwater Paper Corporation]

 [Date] 
 [Name] 

[Address] 
 [Address] 

Re: Deferral of Founders Award Settlement 
 Dear                     : 
 The balance of your “Founders Award,” consisting of              Restricted Stock Units (RSUs), is scheduled to fully vest on
January 13, 2012. Ordinarily we would transfer to you the number of shares of Clearwater Paper common stock (“Shares”) corresponding to your fully vested RSUs within a period of days after the vesting date. However, because the
compensation from your RSUs will likely exceed the amount deductible by Clearwater Paper for federal income tax purposes, we are required to defer the delivery of a portion of these shares until a later date. 

The remainder of this letter explains in more detail the reasons for this deferral and how it will be administered in practice. 

Why must delivery of the Shares be deferred? 
 Section 12 of your RSU Agreement provides for an automatic deferral of RSU compensation to the extent that compensation would exceed the amount deductible by Clearwater Paper under
Section 162(m) of the Internal Revenue Code at the time the RSU award vests. 
 Section 162(m) imposes a $1 million cap on the tax
deduction that can be claimed by Clearwater Paper for compensation paid to any “covered employee” during a calendar year. Our “covered employees” for any calendar year are the CEO and the three most highly compensated executive
officers, other than the CFO, who are employed as of the end of the year. Performance-based compensation, such as our Performance Share awards and Annual Incentive Plan bonuses, is exempt from the $1 million limit, but RSUs are not considered
“performance-based” and thus are subject to the limit. 
 We are expecting that you will be one of our “covered employees”
for 2012, and that your total non-performance based compensation for 2012 will exceed the $1 million deduction limit. That means you will be subject to the deferral requirement. 

 How is the amount to be deferred calculated? 
 On January 13, 2012 we will determine whether, and by how much, the value of your Founder Award RSUs fully vesting on that date, plus your other non-performance based compensation projected for 2012,
exceeds the $1 million deduction limit. The value of your RSUs will be determined by multiplying the number of fully vested RSUs by the closing selling price per Share on the NYSE on January 13, 2012. If your total non-performance based
compensation projected for 2012 exceeds $1 million, we will divide the excess amount by the same price per Share to determine the number of Shares under your Founders Award that must be deferred. 

For example, if the value of one Share on January 13, 2012 is $35 per share, your RSUs would be worth
$            . If your other non-performance based compensation projected for 2012 is $            , you would
exceed the $1 million limit by $            . We would divide the $             excess by $35 per share to
determine the number of shares that must be deferred: $             ÷ $35 =              shares. 

When will the deferred Shares be paid? 

Under Section 12 of your RSU Agreement, the deferred Shares will be settled after we have determined that deduction of the payment will not be barred
by Section 162(m). That means payment will be made to you after any one of the following events occurs: 
  

	 	•	 	 You terminate employment with Clearwater Paper and its affiliates; 

 

	 	•	 	 You continue employment with Clearwater Paper, but you cease to be a “covered employee,” i.e., you cease to be CEO or one of the top 3
highest paid executive officers other than the CFO; or 

  

	 	•	 	 You continue employment with Clearwater Paper and remain a “covered employee,” but you have room under the $1 million deduction cap to
receive additional non-performance based compensation at year-end. 

 In the first situation, we will deliver all of the
deferred Shares to you (subject to applicable withholding taxes) as soon as practicable after your termination of employment. While that delivery would normally occur within 60 days after your termination of employment, it is likely we will have to
delay delivery for at least 6 months after your termination of employment to comply with Section 409A of the Internal Revenue Code. 
 In
the second situation, we will deliver all of the deferred Shares to you (subject to applicable withholding taxes) at or near the end of the calendar year in which you ceased be a “covered employee,” but no later than 60 days after the end
of that year. 
 In the third situation, we will perform a year-end calculation to determine the maximum number of Shares that can be delivered
to you. We would first determine the maximum amount of RSU award compensation that, when added to your other non-performance based compensation for that calendar year, would not exceed the $1 million limit, and then divide that amount by the closing
selling price per Share on the NYSE on December 31 (or the last day of trading, if 

  
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earlier) of that year. The resulting number of Shares will be paid to you (subject to applicable withholding taxes) no later than 60 days after the end of that calendar year. Any Shares that
cannot be paid to you at that time will continue to be deferred until they can be paid to you under one of the three scenarios described above. 

Will the deferred shares be eligible for dividends? 
 Your deferred Shares will be credited with dividend equivalents if and when Clearwater Paper pays dividends on its outstanding Shares. The dividend amounts will be deemed invested in additional Shares,
which will be paid to you at the same time or times as the original deferred Shares are paid to you. 
 When is the compensation for deferred
RSU awards reported for federal income tax purposes? 
 Normally, when RSUs vest in a particular calendar year, we report on Form W-2 the
fair market value of all of the underlying Shares as “wages” subject to income tax and FICA tax withholding for that year. Since the settlement of a portion of your RSUs will be deferred, however, the tax reporting will be different.

 The fair market value of the Shares that are being delivered to you (i.e., that are not being deferred) will be included in your Form W-2 for
the year of vesting, and will be subject to both income tax and FICA tax withholding. The Shares that are deferred will not be reported for income tax purposes until they are later paid to you. However, the fair market value of those deferred Shares
will need to be reported for FICA tax purposes in the year of vesting. There will be no additional FICA taxes payable on the deferred Shares when the Shares are later paid to you, even if the Shares have appreciated in value prior to that time.

 We are permitted to treat the “wages” for the deferred Shares as arising at the end of the calendar year of vesting, when you
should have exceeded Social Security wage base for the year ($106,800 for 2011). So the only portion of the FICA tax that should apply to the deferred Shares is the 1.45% Medicare tax. Arrangements will be made to have the 1.45% Medicare tax paid by
withholding shares that are not being deferred. 
 *** 
 If you have any questions about this letter, please contact
                                        
at
                                        .

 To confirm that you understand and agree with the deferral terms described in this letter, please sign and date this letter where indicated
below. You should retain a copy of this letter for your records, and return the signed original to
                                        
at
                                        .

 Sincerely, 
 [Name] 

[Title] 

  
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Acknowledged and agreed: 
  

			
	  

	 [Name]
	 	
	
	
Date:                       
                                         
                       

  
 4Form of Restricted Stock Unit Award

 Exhibit 10.5 
 CLEARWATER PAPER CORPORATION 
 RESTRICTED STOCK UNIT AGREEMENT 

2008 STOCK INCENTIVE PLAN 
 THIS RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) is made and entered into on the Grant Date specified in the attached Addendum to this Agreement, by and between Clearwater Paper
Corporation, a Delaware corporation (the “Corporation”), and the Employee named in the attached Addendum (the “Employee”). 
 W I T N E S S E T H: 
 WHEREAS, the Corporation maintains the Clearwater Paper
Corporation 2008 Stock Incentive Plan (the “Plan”), which is incorporated into and forms a part of this Agreement, and the Employee has been selected to receive a grant of Restricted Stock Units under Section 10 of the Plan;

 NOW, THEREFORE, for valuable consideration, the parties agree as follows: 

1. Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms used in this Agreement shall
have the meanings set forth in this Section 1. Capitalized terms not defined in this Agreement shall have the same definitions as in the Plan. 
 (a) “Addendum” means the attached Addendum. 
 (b)
“Cause” means the occurrence of any one or more of the following: (i) the Employee’s conviction of any felony or any crime involving fraud, dishonesty or moral turpitude; (ii) the Employee’s participation in a
fraud or act of dishonesty against the Corporation, its Subsidiaries or Affiliates or any successor to the Corporation that results in material harm to the business of the Corporation, its Subsidiaries or Affiliates or any successor to the
Corporation; (iii) the Employee’s intentional, material violation of any contract between the Corporation, its Subsidiaries or Affiliates or any successor to the Corporation and the Employee, or any statutory duty the Employee owes the
Corporation, its Affiliates or any successor to the Corporation, in either case that the Employee does not correct within 30 days after written notice thereof has been provided to the Employee, (iv) the commission of an act by the Employee that
could (either alone or with other acts) be considered harassment or discrimination on the basis of gender, race, age, religion, sexual orientation or other protected category; or (v) the commission by the Employee of an alcohol or drug offense
in violation of the Corporation’s, or a Subsidiary’s or an Affiliate’s Substance Abuse Policy for salaried employees. 
 (c) “Disability” means the condition of the Employee who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted or can be expected to last for a continuous period of at least 12 months. 
 (d) “Double Trigger Event” means the Employee’s Service with the Corporation or a Subsidiary or an Affiliate is involuntarily terminated without Cause or voluntarily terminated for
Good Reason within one month prior to or 24 months following the effective date of a Change of Control. 

 (e) “Good Reason” means that one or more of the following are undertaken by
the Corporation, its Subsidiaries or Affiliates or any successor to the Corporation without the Employee’s written consent: (i) the assignment to the Employee of any duties or responsibilities that results in a material diminution in the
Employee’s position or function as in effect immediately prior to the effective date of a Change of Control; provided, however, that a change in the Employee’s title or reporting relationships shall not provide the basis for
a voluntary termination with Good Reason; (ii) a reduction, without the Employee’s written consent, by the Corporation, its Subsidiaries or Affiliates or any successor to the Corporation in the Employee’s annual base salary, as in
effect on the effective date of the Change of Control or as increased thereafter; (iii) any failure by the Corporation, its Subsidiaries or Affiliates or any successor to the Corporation to continue in effect (or substantially replace in the
aggregate) any material benefit plan or program in which the Employee was participating immediately prior to the effective date of the Change of Control (hereinafter referred to as “Benefit Plans”), or the taking of any action by the
Corporation, its Subsidiaries or Affiliates or any successor to the Corporation that would adversely affect the Employee’s participation in or reduce the Employee’s benefits under the Benefit Plan; provided, however, that no
voluntary termination of Service with Good Reason shall be deemed to have occurred if the Corporation, its Subsidiaries or Affiliates or any successor to the Corporation provide for the Employee’s participation in benefit plans and programs
that, taken as a whole, are comparable to the Benefit Plans; (iv) a relocation of the Employee’s business office to a location more than 50 miles from the location at which the Employee performs duties as of the effective date of the
Change of Control, except for required travel by the Employee on the Corporation’s, its Subsidiaries’ or Affiliates’ or any successor to the Corporation’s business to an extent substantially consistent with the Employee’s
business travel obligations prior to the effective date of the Change of Control; or (v) a material breach by the Corporation, its Subsidiaries or Affiliates or any successor to the Corporation concerning the terms and conditions of the
Employee’s employment. 
 (f) “Grant Date” means the effective date of the Award of the Restricted Stock
Units to the Employee, as specified in the Addendum. 
 (g) “Retirement” means (i) the Employee’s
early or normal retirement and commencement of benefit payments under the Retirement Plan, or (ii) if the Employee does not have an accrued benefit under the Retirement Plan, the Employee’s termination of Service on or after the earlier of
his or her (A) attainment of age 65 or (B) attainment of age 55 and completion of 10 years of Service. 
 (h)
“Retirement Plan” means the Clearwater Paper Salaried Retirement Plan. 
 (i) “Service” shall
have the meaning given such term under the Plan, except that as used in this Agreement the term “Service” shall be limited to employment and shall exclude service performed as an Outside Director or as a Consultant. 

(j) “Vesting Period” means the period specified in the Addendum. 

  
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 2. Award. Subject to the terms of this Agreement and the Addendum, the Employee is
hereby awarded a grant of Restricted Stock Units in the number set forth in the attached Addendum (the “Award”). Except as otherwise set forth herein, the number of Shares actually payable to the Employee is contingent on the
Employee’s continuous Service for the duration of the Vesting Period. This Award has been granted pursuant to the Plan and is subject to all the terms and provisions thereof, a copy of which is attached and the terms and conditions of which are
incorporated by reference into this Agreement. 
 3. Dividend Equivalents. During the Vesting Period, dividend
equivalents shall be converted into additional Restricted Stock Units based on the closing price of the Stock on the New York Stock Exchange on the dividend payment date. Such additional Restricted Stock Units shall vest or be forfeited in the same
manner as the underlying Restricted Stock Units to which they relate. 
 4. Settlement of Awards. Pursuant to
Section 5 of this Agreement, the Corporation shall deliver to the Employee one Share for each vested Restricted Stock Unit included in the Award and, as applicable, one share for each vested Restricted Stock Unit that corresponds to an accrued
dividend equivalent. Any vested Restricted Stock Units payable to the Employee (including Shares payable pursuant to Section 3 above) shall be paid solely in Shares. Any fractional Share will be rounded to the closest whole Share. 

5. Time of Payment. Except for Shares issuable pursuant to Section 8, the Shares issuable for the vested
Restricted Stock Units shall be delivered to the Employee (or, in the case of the Employee’s death, to the Employee’s beneficiary or representative) as soon as practicable after the end of the Vesting Period (but in no event late than the
15th day of the third calendar month following the date on
which the Vesting Period ends). With respect to Shares issuable in connection with Restricted Stock Units that become vested pursuant to Section 8, such Shares shall be delivered to the Employee as soon as practicable after (but no later than
60 days after) the date on which the Double Trigger Event occurs; provided however, that if the Employee’s Service with the Corporation, a Subsidiary or an Affiliate is involuntarily terminated without Cause or voluntarily terminated for Good
Reason on or prior to the date of the Change of Control to which the Double Trigger Event relates, then such Shares shall be delivered immediately prior to the consummation of such Change of Control. 

6. Retirement, Disability, or Death During the Vesting Period. If the Employee’s Service with the Corporation or a Subsidiary
or an Affiliate terminates during the first year of the Vesting Period because of the Employee’s Retirement, due to his or her Disability or due to his or her death, the Employee (or, in the case of the Employee’s death, the
Employee’s beneficiary or representative) will be entitled to a prorated number of Shares, determined by multiplying the number of Restricted Stock Units subject to this Agreement by a fraction, the numerator of which is the number of full
months completed in the first year of the Vesting Period as of the date of termination, and the denominator of which is twelve. If the Employee’s Service with the Corporation or a Subsidiary or an Affiliate terminates after the first year of
the Vesting Period because of the Employee’s Retirement, due to his or her Disability or due to his or her death, the Restricted Stock Units shall become immediately vested in full and payable in accordance with Sections 4 and 5
above. 

  
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 7. Termination of Service During the Vesting Period. If the Employee’s Service
terminates during the Vesting Period for any reason other than as described in Section 6 or Section 8, this Agreement shall be terminated automatically as of the date of such termination of Service and the Employee shall not become vested
in any of the Restricted Stock Units subject to this Agreement. 
 8. Change of Control. If a Double Trigger Event occurs
during the first year of the Vesting Period, the Employee will be entitled to a prorated number of Shares, determined by multiplying the number of Restricted Stock Units subject to this Agreement by a fraction, the numerator of which is the number
of full months in the first year of the Vesting Period prior to the month in which the Double Trigger Event occurred, and the denominator of which is twelve. If a Double Trigger Event occurs after the first year of the Vesting Period, the Restricted
Stock Units shall become immediately vested in full and payable in accordance with Sections 4 and 5 above. 
 9. Available
Shares. The Corporation agrees that it will at all times during the term of this Agreement reserve and keep available sufficient authorized but unissued or reacquired Shares to satisfy the requirements of this Agreement. 

10. Applicable Taxes. In the event the Corporation determines that it is required to withhold state or federal income taxes,
Social Security taxes, or any other applicable taxes as a result of the payment of the Shares, the Corporation will satisfy such withholding requirements by withholding of Shares otherwise payable upon the settlement of the Award, which Shares will
have a Fair Market Value (determined as of the date when taxes would otherwise be withheld in cash) not in excess of the legally required minimum amount of tax withholding. 
 11. Relationship to Other Benefits. Restricted Stock Units shall not be taken into account in determining any benefits under any pension, savings, disability, severance, group insurance or any
other pay-related plan of the Corporation or its Subsidiaries or Affiliates. 
 12. Required Deferral. In the event that,
as of the end of the Vesting Period, the value of the Shares issuable for the vested Restricted Stock Units exceeds the amount that would be deductible by the Corporation due to the application of Section 162(m) of the Code, the payment of that
portion of such Shares having a value in excess of the amount deductible by the Corporation under Section 162(m) of the Code shall be automatically deferred until the first calendar year in which the Corporation reasonably anticipates that
deduction of the payment will not be barred by application of Section 162(m) of the Code. Any portion of such Shares so deferred shall be credited with dividend equivalents which shall be paid out as additional Shares at the same time as the
underlying Shares with respect to which the dividend equivalents are credited. 
 13. Stockholder Rights. Neither the
Employee nor the Employee’s beneficiary or representative shall have any rights as a stockholder with respect to any Shares subject to this Agreement until such Shares shall have been issued to the Employee or the Employee’s beneficiary or
representative. 

  
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 14. Transfers, Assignments, Pledges. Except as otherwise provided in this Agreement,
the rights and privileges conferred by this Agreement shall not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment or similar process.
Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the Award, or of any right or privilege conferred by this Agreement, contrary to the provisions of this Section 14, or upon any attempted sale under any
execution, attachment or similar process upon the rights and privileges conferred by this Agreement, the Award and the rights and privileges conferred by this Agreement shall immediately become null and void. However, this Section 14 shall not
preclude: (i) an Employee from designating a beneficiary to succeed, after the Employee’s death, to any rights of the Employee or benefits distributable to the Employee under this Agreement not distributed at the time of the
Employee’s death; or (ii) a transfer of any Award hereunder by will or the laws of descent or distribution. In that regard, any such rights shall be exercisable by the Employee’s beneficiary, and such benefits shall be distributed to
the beneficiary, in accordance with the provisions of this Agreement and the Plan. The beneficiary shall be the named beneficiary or beneficiaries designated by the Employee in writing filed with the Corporation in such form and at such time as the
Corporation shall require. If a deceased Employee has not designated a beneficiary, or if the designated beneficiary does not survive the Employee, any benefits distributable to the Employee shall be distributed to the legal representative of the
estate of the Employee. If a deceased Employee has designated a beneficiary and the designated beneficiary survives the Employee but dies before the complete distribution of benefits to the designated beneficiary under this Agreement, then any
benefits distributable to the designated beneficiary shall be distributed to the legal representative of the estate of the designated beneficiary. 
 15. No Employment Rights. Nothing in this Agreement shall be construed as giving the Employee the right to be retained as an employee or as impairing the rights of the Corporation or a Subsidiary
or an Affiliate to terminate his or her employment at any time, with or without cause. 
 16. Administration. The
authority to manage and control the operation and administration of this Agreement shall be vested in the Committee, and the Committee shall have all powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of
this Agreement by the Committee and any decision made by it with respect to this Agreement is final and binding. 
 17.
Interpretation/Applicable Law. This Agreement shall be interpreted and construed in a manner consistent with the terms of the Plan and in accordance with the laws of the State of Delaware (without regard to choice of law principles). If there
is any discrepancy between the terms and conditions of this Agreement and the terms and conditions of the Plan, the terms and conditions of the Plan shall control. 
 18. Term of the Agreement. The term of this Agreement shall end upon the earlier of (i) the delivery of all of the Shares or other consideration to be issued in exchange for the Restricted
Stock Units (and accrued dividend equivalents) subject to the Award granted to the Employee or (ii) upon the termination of the Employee’s Service for any reason other than retirement under the Retirement Plan, the Employee’s
Disability or death or in connection with a Double Trigger Event. 

  
 5 

 19. Compliance with Section 409A of the Code. The provisions of this Agreement
regarding the payments to be provided to the Employee are intended to comply with Section 409A of the Code or an exemption therefrom, and any ambiguity in any such provision shall be resolved in a manner that supports compliance with
Section 409A or an exemption therefrom. Without limiting the foregoing, 
  

	 	a.	The provisions of Sections 5 and 8 requiring payment after a Double Trigger Event or otherwise upon an Employee’s termination of Service shall be construed to
require that the Employee “separate from service” with Clearwater and its Affiliates within the meaning of Treasury Regulation Section 1.409A-1(h) as a condition to the Employee receiving such payment. 

 

	 	b.	If the Employee is entitled to receive a payment subject to Section 409A of the Code after a Double Trigger Event or otherwise upon a termination of Service, and
the Corporation determines in good faith that the Employee is a “specified employee” as defined in Section 409A as of the date his Service terminates, then such payment shall be deferred and paid 6 months and 1 day following the date
of the Employee’s termination of Service (or if earlier, payment shall be made within 60 days after the date of the Employee’s death). 

  

	 	c.	Any deferrals of payment required under Section 12 are intended to comply with Section 409A of the Code. 

[remainder of page intentionally left blank] 

  
 6 

 IN WITNESS WHEREOF, each party has or has caused this Agreement to be executed as of
the respective date set forth below. 
  

			
	CORPORATION:
	
	 Clearwater Paper Corporation,
 a Delaware corporation

		
	By:	 	  

	Name:	 	
		 	  

	Title:	 	
		 	  

	Date:	 	
		 	  

	
	EMPLOYEE:
	
	  

	[Name of Employee]
		
	Date:	 	
		 	  

  
 7 

 STOCK INCENTIVE PLAN 
 ADDENDUM TO PEFORMANCE SHARE AGREEMENT 
 and RESTRICTED STOCK UNIT AGREEMENT

 Name of Employee: 
  

	1.	Date of Grant:                      

 

	2.	Target Grant of Performance Shares:                  

Target Grant of Restricted Stock Units:               

 

	3.	Performance Period:
                                         
                        

  

	4.	Performance Measure: The performance measure is a comparison of the percentile ranking of Clearwater Paper Corporation’s total stockholder return (TSR), which
includes stock price appreciation plus cash dividends paid during the Performance Period, to the TSR performance of a selected peer group of companies listed on Exhibit 1 hereto. 

 

	5.	Performance Schedule: The performance schedule displayed on Exhibit 2 shows the percentage of the target grant that will be awarded at the end of the Performance
Period depending upon the actual TSR percentile ranking achieved by the Corporation during the Performance Period with regard to the selected peer group. 

 The RSU award, along with all additional shares attributable to dividend equivalents shall vest on             . 

The Performance Share Agreement and Restricted Stock Unit Agreement are incorporated by reference into this Addendum and the terms of the Performance
Share and Restricted Stock Unit Agreements shall be controlling in the event of any discrepancy. 
 IN WITNESS WHEREOF, the Corporation
has caused this Addendum to the Performance Share and Restricted Stock Unit Agreements to be executed on its behalf by its duly authorized representative, and the Employee has executed the same on the date indicated below. 

 

					
		 		 	CLEARWATER PAPER CORPORATION
			
	Date:                     	 	By:	 	  

		 		 	Senior Vice President, Human Resources
			
	Date:                     	 	By:	 	  

		 		 	Employee

  
 8

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