----

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| 1.1 | The      Board adopted the Plan for the purpose of assisting the Company in      attracting and retaining key management employees who are in a position to      make a significant contribution to the growth and profitability of the      Company by providing a reward for performance and incentive for future      endeavor.  Appleton competitively positions its compensation and      rewards programs relative to general and paper industry companies of      similar revenue.  The Plan accomplishes its objective by      providing eligible employees with a competitive long-term compensation      opportunity tied to the performance of the  Company. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | The      Plan is intended to be an unfunded bonus program of the Company in      accordance with Department of Labor Regulations Section      2510.3-2(c).  The Plan shall be interpreted, operated and      administered in a manner consistent with these  intentions. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | The      Plan does not permit Participants to elect to defer their      compensation. |
|-----|---------------------------------------------------------------------------------------|

| 1.4 | The      effective date of the Plan is January 1,2008. |
|-----|--------------------------------------------------------|

| 2.1 | Average Revenue      Growth.  “Average Revenue Growth” means the sum of the      each annual Revenue Growth during the Performance Cycle divided by the      number of the Company’s completed fiscal years during the Performance      Cycle. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2   | Average      ROIC.  “Average ROIC” means the sum of each annual ROIC      Growth during the Performance Cycle divided by the number of the Company’s      completed fiscal years during the Performance  Cycle. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3   | Board.  “Board”      means the Board of Directors of Appleton Papers  Inc. |
|-----------------|--------------------------------------------------------------------------------------------------|

| 2.4   | Cause. “Cause”      in connection with the termination of the Participant's employment with      the Company, means that, in the judgment of the Committee, based upon any      information or evidence reasonably persuasive to the Committee, the      Participant: (1) willfully engaged in activities or conducted himself or      herself in a manner seriously detrimental to the interests of the Company      or its subsidiaries and affiliates; or (2) failed to execute the duties      reasonably assigned to him or her in a reasonably timely, effective, or      competent manner; provided, however, that      the termination of the Participant's employment because of Disability      shall not be deemed to be forCause. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 2.5   | Change of      Control.  “Change of Control” means: (1) the termination      of the Appleton Papers Retirement Savings and Employee Stock Ownership      Plan (the “ESOP”) or amendment of the ESOP so that it ceases to be an      employee stock ownership plan; (2) the ESOP ceases to own a majority      interest in the Company; (3) the sale, lease, exchange or other transfer      of all or substantially all of the assets of the Company (in one      transaction or in a series of related transactions) to a person or entity      that is not controlled by the Company; (4) the approval by the Company      shareholders of any plan or proposal to terminate the Company’s business,      to liquidate or dissolve the Company or to sell substantially all the      Common Stock; (5) the Company merges or consolidates with any other      company and the Company is not the surviving company of such merger or      consolidation; or (6) any other event or series of events whereby      ownership and effective control of the Company is transferred or conveyed      to a person or entity that is not controlled by the    Company. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.6   | Code.  “Code”      means the Internal Revenue Code of 1986, as amended, or any successor      statute.  Reference to a specific section of the Code shall      include a reference to any successorprovision. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.7   | Committee.  “Committee”      means the Compensation Committee of theBoard. |
|-----------------|--------------------------------------------------------------------------------------------------|

| 2.8   | Company.  “Company”      means Appleton Papers Inc., 825 East Wisconsin Avenue, Appleton, Wisconsin      54911-1703.  “Company” also means (except where the context      relates solely to Appleton Papers Inc.) any subsidiary or other affiliate      of Appleton Papers Inc. who employs an Eligible Employee (as designated by      the Committee in accordance with Section 4.1).  Any such      subsidiary or affiliate of Appleton Papers Inc. that has become a      “Company” as provided above is deemed to have designated Appleton Papers      Inc. as its agent with respect to amending or terminating the      Plan.  Any such action by Appleton Papers Inc. shall be binding      on such subsidiary or affiliate at the time  taken. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.9   | Disability.  “Disability”      means a physical or mental condition of the Participant which results in      the Participant receiving benefits under an applicable Company’s long-term      disability insurance plan, or in the event the Participant is not      participating in a Company long-term disability insurance plan, means      disability as defined under the long-term disability plan of Appleton      Papers Inc. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.10   | Eligible      Employee.  “Eligible Employee” means an employee of      Appleton Papers Inc. who has been designated by the Committee as an      Eligible Employee. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.11   | Employment.  References      in the Plan to “employment” with the Company, “year(s) of employment,” and      “termination of employment” shall in all events refer to the total period      of employment with Appleton Papers Inc. and any of its subsidiaries or      affiliates. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.12   | Extraordinary      Occurrences.  “Extraordinary Occurrences” means those      events that, in the opinion of the Committee, are likely to have a      significant effect, whether positive or negative, on the Company’s      financial results, including Revenue andROIC. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.13   | Final      Award.  “Final Award” means the amount payable to a      Participant by the Company under thePlan. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| 2.14   | Invested      Capital.  “Invested Capital” means Appleton Papers Inc.’s      non-interest bearing net working capital assets plus long-term      assets. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.15   | Participant.  “Participant”      means an Eligible Employee who participates in the Plan for purposes of a      Performance Cycle in accordance with Section4. |
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| 2.16   | Plan.  “Plan”      means the Appleton Papers Inc. Performance Cash Plan, as set forth herein      and as amended from time to time. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.17   | Performance      Cycle.  “Performance Cycle” means the three year period      that begins January 1, 2008, and ends December 31, 2010, provided that a new      three-year Performance Cycle shall begin on each January  1 |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.18   | Performance      Measure.  “Performance Measure” means each factor, as set      forth in an Appendix hereto, that is taken into consideration under the      Plan in determining the value of a FinalAward. |
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| 2.19   | Plan      Year.  “Plan Year” means the fiscal year of Appleton      Papers Inc. |
|------------------|-------------------------------------------------------------------------------------------------------|

| 2.20   | Representative.      “Representative” means the personal representative of the Participant's      estate, and after final settlement of the Participant's estate, the      successor or successors entitled thereto bylaw. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.21   | Revenue.  “Revenue”      means Appleton Papers Inc.’s net revenue as reported in its financial      statements for the Company’s relevant fiscal year, subject to adjustments,      in the Committee’s discretion, to reflect the impact of any Extraordinary      Occurrences. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.22   | Revenue      Growth.  “Revenue Growth” means, with respect to the      Company’s relevant fiscal year, the increase, expressed as a percentage,      if any, in Revenue from Revenue in the immediately preceding      year. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.23   | Retirement.  “Retirement”      means termination of employment of a Participant with the Company on or      after the date such Participant has attained the age of 55 years and has      at least ten years of service with theCompany. |
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| 2.24   | ROIC.  “ROIC”      means Appleton Papers Inc.’s earnings before interest and taxes (“EBIT”)      divided by Invested Capital. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.25   | ROIC      Growth.  “ROIC Growth” means, with respect to the      Company’s relevant fiscal year, the increase, expressed as a percentage,      if any, in ROIC from ROIC in the immediately preceding fiscal      year. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.26   | Target      Award.  “Target Award” means the initial value of an      award at the beginning of the Performance Cycle and prior to any      Performance Measure adjustments or Final Award value      determination. |
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| 3.1 | The      Plan provides for annual grants of long-term cash-based performance      awards, which may be earned by Participants based on the Company’s      achievement of pre-set performance measures and the Participant’s      continued employment. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Extraordinary      Occurrences may be considered by the Committee when assessing the      Company’s performance results and appropriate adjustments may be made by      the Committee, in its good faith discretion, to the performance measures      under the Plan. |
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| 4.1 | Before      the beginning of each Performance Cycle, the Committee shall designate the      Eligible Employees for the Plan Year who are so designated for the      Performance Cycle and shall notify Participants of such      designation.  At or shortly after commencement of the      Performance Cycle, a Target Award shall be established for each      Participant.  Target Awards will be expressed as a fixed dollar      amount. |
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| 4.2 | At      the end of the Performance Cycle, the Final Award will be valued based      upon the Committee’s evaluation of the Company’s performance against the      established Performance Measures.   The Performance      Measures for any given Performance Cycle shall be as set forth in an      Appendix to this Plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Performance Measures will be reviewed and updated, as determined by the      Committee, at the beginning of each Performance Cycle.  The      Performance Measures used to determine the Final Award may change from      Performance Cycle to Performance Cycle to reflect modifications in the      Company’s strategic objectives.  Such changes may be made, as      deemed necessary by the Committee, to serve the best interests of the      Company. |
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| 4.3. | In      the event of a Participant’s voluntary or involuntary termination of      employment with the Company before the end of the Performance Cycle, no      award or other amount shall be payable to such Participant under the Plan      except as provided under Sections 4.5 and 4.6.  Any awards or      other amounts forfeited under the Plan shall not be reallocated to      remaining Participants. |
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| 4.4   | In      the event of Participant’s voluntary or involuntary termination of      employment with the Company at the end of the Performance Cycle, a      violation of any express restrictive covenant between Participant and      Company (whether relating to obligations of confidentiality,      non-competition, non-solicitation or otherwise), Participant forfeits any      and all rights to payment relating to thePlan. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5   | In      the event of a Change of Control during a Performance Cycle, the      Participant shall, with respect to each outstanding Target Award, receive      a “prorated Final Award” based upon 100% of the Participant’s outstanding      Target Award as of the end of the applicable Performance      Cycle.  The “prorated Final Award” is determined based on the      number of months of employment completed during the Performance Cycle up      to and including the month of the Change of Control divided by total      number of months for the Performance Cycle multiplied by 100% of the      Target Award.  A Participant shall not be entitled to any other      amounts under the Plan with respect to such Target  Award. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6   | Notwithstanding      the foregoing, in the event of a Participant’s Retirement, Disability or      death, during a Performance Cycle, a “prorated award” is paid to the      Participant (or the Participant’s estate or designated beneficiary in the      case of death) for each then outstanding Performance Cycle.  The      amount of any “prorated award” is determined by reference to months of      employment completed during the Performance Cycle, the Target Award and      the Company’s performance against the established Performance Measures,      determined as of the end of the month of the retirement, disability or      death.  For example, for the 2008-2010 Performance Cycle, if a      Participant’s Target Award was $10,000 and he/she retired in July 2009 and      the Revenue Growth and ROIC Growth determined at the end of the month of      the retirement, disability or death was 2.50% and 9.33% respectively, then      such Participant’s Final Award would be ($10,000 x 104%) x 50% or      $5,200. |
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|   | Section      5. |
|--------|-----------------|

|   | Plan      Administration |
|--------|--------------------------|

| 5.1 | The      Committee shall be responsible for the operation and administration of the      Plan. The decision of a majority of the members of the Committee shall      consti­tute the decision of the Committee.  The Committee      may act either at a meeting at which a majority of the members of the      Committee is present or by a writing signed by all Committee      members.  The Committee shall have full discretion, power and      authority to make factual determinations, construe, interpret and      administer the Plan, to adopt such rules and regulations governing the      administration of the Plan, and shall exercise all other duties and powers      conferred on it by the Plan, or which are incidental or ancillary thereto,      and may designate agents to assist it in the administration of the      Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Without      limiting the generality of the foregoing, the Committee shall have full      power and authority, in its absolute discretion, in accordance with the      Plan, to:  determine eligibility to participate in the Plan;      determine the rights and benefits with respect to all claims, demands and      actions arising out of the provisions of the Plan and any Participant,      beneficiary, deceased Participant or other person having or claiming to      have any interest under the Plan; interpret and construe the provisions of      the Plan; decide all questions and settle all controversies arising in the      administration, interpretation, construction and application of, or      otherwise in connection with, the Plan; determine whether any Participant      is considered disabled in accordance with this Plan; employ accountants,      counsel, consultants and other persons the Committee deems necessary in      connection with the administration and operation of the Plan; and take all      other necessary or appropriate actions to fulfill its duties under this      Plan. |
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| 5.3 | In      exercising its power and authority hereunder, the Committee shall at all      times exercise good faith, apply standards of uniform application and      refrain from arbitrary action.  Benefits will be paid only if      the Committee determines in its discretion that the applicant is entitled      to them. |
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| 5.4 | All      interpretations, constructions, determinations, decisions and actions of      the Committee in relation to this Plan shall be final, binding and      conclusive on all Participants and all other  persons. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Section      6. |
|--------|-----------------|

|   | Payment of      Awards |
|--------|------------------------|

| 6.1 | Subject      to Sections 6.2 and 6.3, Final Awards shall be paid to Participants in a      single lump-sum in cash as soon after the end of the Performance Cycle in      which they have been earned as is reasonably practicable, but in any case      not later than 60 days after the end of the calendar year in which the      Performance Cycle ends. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Final      Awards to Participants to which Section 4.5 applies shall be paid to the      Participant in a single lump-sum in cash as soon after the Change of      Control as is reasonably practicable, but in any case not later than 60      days following the Change of Controlevent. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | Final      Awards to Participants to which Section 4.6 applies shall be paid to the      Participant in a single lump-sum in cash as soon as is reasonably      practicable after the month in which the retirement, disability or death      occurs, but in any case not later than 60 days after the end of the      calendar year in which the retirement, disability or death      occurs. |
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| 6.4 | The      foregoing to the contrary notwithstanding, any amounts due to or in      respect of a deceased Participant under the Plan shall be paid to the      Participant’s Representative. |
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|   | Section      7. |
|--------|-----------------|

|   |  Miscellaneous |
|--------|---------------------|

| 7.1 | The      adoption and maintenance of the Plan shall not be deemed to be a contract      of employment or service between the Company and any employee of the      Company.  Nothing contained herein shall give any such employee      the right to be retained in the employ or service of the Company or to      interfere with the right of the Company to discharge the employee, nor      shall it give the Company the right to require the employee to remain in      its employ or service or to interfere with the employee’s right to      terminate employment or service.  No person shall have any      rights or claims in relation to the Plan except in accordance with the      provisions of the Plan.  The adoption of the Plan shall not be      deemed to give any employee of the Company any right to be selected as a      Participant or receive any awards under the  Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.2 | The      Plan shall not be construed to require the Company to fund any of the      amounts payable under the Plan or to set aside or earmark any monies or      other assets specifically for payments under the Plan.  If the      Company decides to establish any advance accrued reserve on its books      against the future expense of benefits payable hereunder, or if the      Company determines to fund a trust under the Plan, such reserve or trust      shall not under any circumstances be deemed to be an asset of the      Plan. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | The      Plan is “unfunded” and benefits payable hereunder shall be paid by the      Company out of its general assets.  No Participant or      beneficiary thereof shall have any interest in any specific asset of the      Company as a result of the Plan.  Nothing contained in the Plan      and no action taken pursuant to the provisions of the Plan shall create or      be construed to create a trust of any kind, or a fiduciary relationship      amongst the Company, the Committee and the Participants and any      beneficiary thereof or any other person.  Any funds that may be      invested under the provisions of the Plan shall continue for all purposes      to be part of the general funds of the Company and no person other than      the Company shall by virtue of the provisions of the Plan have any      interest in such funds.  To the extent that any person acquires      a right to receive payments from the Company under the Plan, such right      shall be no greater than the right of any unsecured general creditor of      the Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 7.4 | Any      liability of the Company to any Participant in relation to the Plan shall      be based solely upon contractual obligations created by the      Plan.  None of the Company, the Committee nor any other person      participating in any determination of any question under the Plan, or in      the interpretation, administration or application of the Plan, shall have      any liability, in the absence of bad faith, to any party for any action      taken or not taken in connection with the Plan, except as may expressly be      provided by statute.  The Company shall not be liable to any      Participant or any other person as to any tax consequence expected, but      not realized, by any Participant or other person in relation to      participation in the Plan. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5 | Notwithstanding      any other provision of the Plan, all rights to any payments under the      Plan, shall be discontinued and forfeited, and the Company will have no      further obligation to the Participant if the Participant is discharged      from employment with the Company or its subsidiaries and affiliates for      Cause, or the Participant performs during the course of his employment      with the Company or its subsidiaries and affiliates acts of willful      malfeasance or gross negligence in a matter of material importance to the      Company.  Any decision of the Committee with respect to the      application of the provisions of this Section 7.5 shall have a presumption      of correctness, and the burden shall be on the Participant to rebut such      presumption by clear and convincingevidence. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.6 | Except      as otherwise provided in Section 6.4, no benefit payable at any time under      the Plan shall be subject in any manner to alienation, sale, transfer,      assignment, pledge, attachment, or encumbrance of any  kind. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.7 | Any      payment or other distribution of amounts under the Plan may be reduced by      any amount (including employment taxes) required to be withheld by the      Company under any applicable law, rule, regulation, order or other      requirement of any governmental authority.  If a Participant      becomes entitled to a distribution under the Plan, and if at such time      such Participant has outstanding any debt, obligation or other liability      representing an amount owing to the Company, then the Company may offset      such amount against the amount otherwise distributable to the Participant      under this Plan to the extent permitted by applicable  law. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.8 | If      any payments or benefits provided to a Participant under this Plan (the      “Payments”) will be subject to the tax imposed by Section 4999 of the Code      (the “Excise Tax”), the Company shall pay to the Participant, at the time      the Payments are paid to the Participant, an additional amount (the      “Gross-Up Payment”) such that the net amount retained by the Participant,      after deduction of any Excise Tax on the Payments and any federal, state      and local income tax and Excise Tax on the Gross-Up Payment itself, shall      be equal to the Payments. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      purposes of determining whether any of the Payments will be subject to the      Excise Tax and the amount of such Excise Tax: (i) any other payments or      benefits received by the Participant in connection with a “Change of      Control” (as such term is defined in the Appleton Papers Inc. Long Term      Incentive Plan) or the Participant’s termination of employment shall be      treated as “parachute payments” within the meaning of section 280G(b)(2)      of the Code, and all “excess parachute payments” within the meaning of      section 280G(b)(1) shall be treated as subject to the Excise Tax, unless      in the opinion of tax counsel selected by the Company’s independent      auditors and acceptable to the Participant such other payments or benefits      (in whole or in part) do not constitute parachute payments, or such excess      parachute payments (in whole or in part) represent reasonable compensation      for services actually rendered within the meaning of Section 280G(b)(4) of      the Code; (ii) the amount of the Payments which shall be treated as      subject to the Excise Tax shall be equal to the lesser of (A) the total      amount of the Payments or (B) the amount of excess parachute payments      within the meaning of Sections 280G(b)(1) (after applying clause (i)      above, and after deducting any excess parachute payments in respect of      which payments have been made); and (iii) the value of any non-cash      benefits or any deferred payment or benefit shall be determined by the      Company’s independent auditors in accordance with the principles of      Sections 280G(d)(3) and (4) of the Code.  For purposes of      determining the amount of the Gross-Up Payment, the Participant shall be      deemed to pay federal income taxes at the highest marginal rate of federal      income taxation in the calendar year in which the Gross-Up Payment is to      be made and state and local income taxes at the highest marginal rates of      taxation in the state and locality of the Participant’s residence on the      date of the Participant’s termination of employment, net of the maximum      reduction in federal income taxes which could be obtained from deduction      of such state and local taxes. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.9 | No      lawsuit with respect to any benefit payable or other matter arising out of      or relating to the Plan may be brought before exhaustion of claim and      review procedures established by the Committee, and any lawsuit must be      filed no later than nine (9) months after a claim is denied or be forever      barred. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.10 | The      Plan and all rights hereunder shall be governed by and construed according      to the laws of the State of Wisconsin.  By participating in the      Plan, the Participant irrevocably consents to the exclusive jurisdiction      of the courts of the State of Wisconsin and of any federal court located      in Milwaukee, Wisconsin in connection with any action or proceeding      arising out of or relating to the Plan, any document or instrument      delivered pursuant to or in connection with the  Plan. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.11 | The      Plan shall become effective upon approval of the Plan by the      Board.  The Board may amend, suspend or terminate the Plan at      any time in writing, and each such amendment, suspension or termination      shall be binding upon the Company, all Participants and all other      persons. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.12 | The      words “Section” and “clause” herein shall refer to provisions of the Plan,      unless expressly indicated otherwise.  Wherever any words are      used in the Plan in the masculine gender they shall be construed as though      they were also used in the feminine gender in all cases where they would      so apply, and wherever any words are used herein in the singular form they      shall be construed as though they were also used in the plural form in all      cases where they would so apply.  The words “include,”      “includes,” and “including” herein shall be deemed to be followed by      “without limitation” whether or not they are in fact followed by such      words or words of similar import, unless the context otherwise      requires. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | APPENDIX      A |
|--------|-----------------|

| 3-Year      Average Revenue Growth (%)                |
|-------------------------------------------------------|
|    3-Year      AverageROIC      (%)ROA |   |   | 0.50% | 1.17% | 1.83% | 2.50% | 3.33% | 4.17% | ≥5.00% |   |
|                                                  |   |
| ≥11.00%                                         | 77.00% | 89.00% | 101.00% | 111.50% | 124.00% | 137.00% | 150.00% |   |
| 10.17%                                                | 72.50% | 84.50% | 97.00% | 107.50% | 120.50% | 133.00% | 146.00% |   |
| 9.33%                                                 | 68.00% | 80.00% | 92.50% | 104.00% | 116.50% | 129.50% | 142.50% |   |
| 8.50%                                                 | 63.50% | 75.50% | 88.00% | 100.00% | 113.00% | 125.50% | 138.50% |   |
| 7.67%                                                 | 59.00% | 71.50% | 83.50% | 95.50% | 109.00% | 122.00% | 134.50% |   |
| 6.83%                                                 | 54.50% | 67.00% | 79.00% | 91.00% | 105.50% | 118.00% | 131.00% |   |
| 6.00%                                                 | 50.00% | 62.50% | 74.50% | 86.50% | 101.50% | 114.50% | 127.00% |   |

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