Health Insurance Retirement Benefit

EXHIBIT 10(v)


HEALTH INSURANCE RETIREMENT BENEFIT AGREEMENT


AGREEMENT MADE January 1, 1996, between BADGER PAPER MILLS, INC.
("Badger") and CLAUDE L. VAN HEFTY ("Van Hefty").


1. Recitals.


A. Van Hefty has provided exemplary service to Badger
throughout his years of employment.


B. Van Hefty's services have assisted the development and
expansion of Badger's business with conspicuous success.


C. Badger wishes to recognize the value of Van Hefty's
services by providing comprehensive major medial benefits after his
retirement, provided retirement occurs after he has attained the age of 55
years.


2. Comprehensive Major Medical Benefits.


Upon the effective date set forth below, Badger shall furnish to
Van Hefty and his spouse the same comprehensive major medical benefits
plan then offered to Badger's full-time employees. The plan shall be
furnished without residency requirements. Badger shall provide the plan
to Van Hefty and his spouse until Van Hefty's date of death. Upon Van
Hefty's death, his surviving spouse shall receive the same comprehensive
major medical benefits plan until her death or remarriage, whichever first
occurs.


3. Effective Date.


Badger shall provide Van Hefty a comprehensive major medical
benefits plan upon Van Hefty's retirement, provided retirement occurs
af ...