WAUSAU PAPER MILLS COMPANY
PRINTING AND WRITING DIVISION
INCENTIVE COMPENSATION PLAN
SECTION 1. ESTABLISHMENT AND PURPOSE OF THE PLAN
1.1 AMENDMENT OF THE PLAN. Wausau Paper Mills Company hereby amends, restates and renames the
Printing and Writing Paper Division Incentive Compensation Plan effective for Fiscal Years beginning on and after
September 1, 1995.
1.2 PURPOSE OF THE PLAN. The purpose of the Plan is to reward participating employees for efforts to
increase the financial performance of the Printing and Writing Division.
SECTION 2. DEFINITIONS
2.1 DEFINITIONS. Whenever used in the Plan, the following terms shall have the respective meanings set forth
below, unless otherwise expressly provided herein, and when the defined meaning is intended, the term is
(a) "ACHIEVED PERFORMANCE LEVEL" for a Fiscal Year shall mean that percentage (rounded to the
nearest .01%) obtained by dividing actual ROA for the Fiscal Year by the Target Performance Level for the
(b) "ADJUSTED OPERATING INCOME" means, with respect to each Fiscal Year, the Printing and Writing
Division's income before adjustment for (1) income tax, (2) accrued or paid bonuses, (3) interest income or
expense, (4) commissions paid to a domestic international sales corporation or foreign sales corporation which is
a subsidiary of the Company or any other subsidiary of the Company,
(5) gains and losses on the sale of operating assets, common stock or other securities, (6) income realized from
LIFO decrements and (7) any other material, nonrecurring events of an unusual nature. "Adjusted Operating
Income" shall be determined in accordance with generally accepted accounting principles.
(c) "ATTACHMENT A" means the schedule appended hereto and designated "Attachment A" or any amended
schedule designated by the Executive Committee as "Attachment A" for the Plan for any Fiscal Year; provided
however, that any such designation for a Fiscal Year shall occur on or before the date on which the Ex