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|   | (5) | Compensation: |
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|   | (A) | “Compensation”      for any Limitation Year means wages, salaries, and fees for professional      services and other amounts received (without regard to whether or not an      amount is paid in cash) for personal services actually rendered in the      course of employment with the Company or an Affiliate to the extent that      the amounts are includible in gross income (including, but not limited to,      commissions paid to salesmen, compensation for services on the basis of a      percentage of profits, commissions on insurance premiums, tips, bonuses,      fringe benefits, reimbursements and expenses allowances), and excluding      the following: |
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|   | (i) | employer      contributions to a plan of deferred compensation which are not includible      in the employee’s gross income for the taxable year in which contributed,      or employer contributions under a simplified employee pension plan to the      extent such contributions are deductible by the employee, or any      distributions from a plan of deferred  compensation; |
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|   | (ii) | amounts      realized from the exercise of a non-qualified stock option, or when      restricted stock (or property) held by the employee either becomes freely      transferrable or is no longer subject to a substantial risk of      forfeiture; |
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|   | (iii) | amounts      realized from the sale, exchange or other disposition of stock acquired      under a qualified stock option; and |
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|   | (iv) | other      amounts which receive special tax benefits, or contributions made by the      employer (whether or not under a salary reduction agreement) toward the      purchase of an annuity described in Section 403(b) of the Code, (whether      or not the amounts are actually excludable from the gross income of the      employee). |
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|   | (B) | For      years commencing on and after January 1, 1989, Compensation shall be      limited to the first $200,000 of Compensation (as such amount may be      adjusted from time to time by the Secretary of the Treasury in a manner      similar to §415(d) of the Code), except the first adjustment to the      $200,000 limitation shall be effected on January 1, 1990; and for each      Plan Year beginning on or after January 1, 1994, such limitation shall be      $150,000 ($160,000, effective January 1, 1997), as adjusted. If the Plan      determines Compensation on a period of time that contains fewer than      twelve calendar months, then the limitation on Compensation is an amount      equal to the annual Compensation limit for the calendar year in which the      Compensation period begins multiplied by the ratio obtained by dividing      the number of full months in the period by twelve. Prior to January 1,      1997, in determining the Compensation of a Participant for purposes of      this limitation, the rules of Section 414(q)(6) of the Code shall apply,      except in applying such rules, the term “family” shall include only the      Spouse of a Participant and any lineal descendants of the Participant who      have not attained age 19 before the close of the Plan Year. If, as a      result of the application of such rules, the adjusted limitation is      exceeded, then the limitation shall be prorated among the affected      individuals in proportion to each such individual’s Compensation as      determined under this Section 14.01(b)(5) prior to the application of the      limitation. Effective January 1, 1997, such family aggregation rules shall      not apply. Effective for Plan Limitation Years beginning on or after      January 1, 1998, “Compensation” for purposes of this Section 14.01(b)(5)      shall include any elective deferral (as defined in Section 402(g)(3) of      the Code), any amount which is contributed to or deferred by the Employer      at the election of the Employee and which is not includible in the gross      income of the Employee by reason of Section 125 or 457 of the Code, and,      effective January 1, 2000, any elective amounts that are not includible in      the gross income of the Employee by reason of Section 132(f) of the      Code. |
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Provided that payment is actually made by the later of 2 1⁄2 months afterseverance from employment or the end of the Limitation Year that includes thedate of severance from employment, the following amounts are included inCompensation:  (1) regular compensation paid after severancefrom employment for services during the Participant's regular working hours, andcompensation for services outside the Participant's regular working hours (suchas overtime or shift differential), commissions, bonuses, or other similarpayments; provided
that the payment would have been paid to the Participant prior to a severancefrom employment if the Participant had continued in employment with the Company,and (2) payment for unused accrued bona fide sick, vacation, or other leave, butonly if the Participant would have been able to use the leave if employment hadcontinued.

|   | (iii) | Salary      continuation payments for military service or disability. The rule of clause      (ii)(1) above shall not apply to: (1) payments to an individual who does      not currently perform services for the Company by reason of qualified      military service (as defined in Code §414(u)(1)) to the extent those      payments do not exceed the amounts the individual would have received if      the individual had continued to perform services for the Company rather      than entering qualified military service, or (2) payments made to an      Participant who is permanently and totally disabled (as defined in Code §      22(e)(3)). |
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|   | (iv) | Interaction      with Code §417(a)(17). The definition of Compensation for a Plan      Year that is used for purposes of applying the limitations of Code §415      shall not reflect Compensation for such year that is in excess of the      limitation under Code §401(a)(17) that applies to that Plan      Year.” |
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|   |  APPLETON      PAPERS INC. BENEFITS FINANCE COMITTEE |
|--------|-----------------------------------------------------------|
|   |                                                      |
|   |                                                      |
|   |  /s/ Mark R.      Richards                           |
|   |  Mark R.      Richards                               |
|   |                                                      |
|   |  /s/ Thomas J.Ferree                                 |
|   |  Thomas J.      Ferree                               |
|   |                                                      |
|   |  /s/      Kerry S. Arent                             |
|   |  Kerry S.      Arent                                 |