<PAGE>

                                                                   Exhibit 10.14

                              APPLETON PAPERS INC.
                           DEFERRED COMPENSATION PLAN
                      (As Restated Effective July 1, 2000)


The Appleton Papers Inc. Deferred Compensation Plan provides eligible executives
an opportunity to defer base salary and/or bonuses. With the exception of FICA
taxes, monies deferred are not subject to Federal and/or State income taxation
until they are distributed to the participant.

I.       Establishment and Purpose
         -------------------------

         Appleton Papers Inc. (the "Company") established, effective as of June
         1, 1990, an unfunded deferred compensation plan within the meaning of
         Sections 201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement
         Income Security Act of 1974, as amended, and the regulations thereunder
         ("ERISA") for a select group of managers and/or highly compensated
         employees. Such plan, as originally adopted and as thereafter amended
         and as restated herein, is known as the Appleton Papers Inc. Deferred
         Compensation Plan (the "Plan").

         For purposes of the Plan, the word "Company" includes any affiliates
         and subsidiaries of Appleton Papers Inc. that adopt this Plan with the
         consent of Appleton Papers Inc.

II.      Eligibility
         -----------

         Certain key executives who occupy the positions set forth below with
         respect to Appleton Papers Inc., who are selected by the Board of
         Directors of Appleton Papers Inc. (the "Board of Directors"), or the
         officer or committee designated by the Board of Directors, and
         compensated by United States payroll, are eligible for participation in
         the Plan:

         . Chief Executive Officer

         . President and Chief Operating Officer

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         .  Vice Presidents

         .  Plant/Mill Managers

         .  Business Unit Managers

         In addition, the Board of Directors of the Company (or the officer or
         committee designated by the Board of Directors), may designate any
         other executive employee of the Company who is compensated by United
         States payroll as eligible to participate in the Plan; provided
         however, that any such executive is a member of a select group of
         management or highly compensated employees as determined for purposes
         of ERISA.

         Eligible employees who elect to participate in the Plan and make
         deferrals hereunder are referred to herein as "Participants".

III.     Plan Year
         ---------

         The "plan year" is the 12-month period beginning on each January 1 and
         ending on each December 31.

IV.      Salary and/or Bonus Deferral
         ----------------------------

         Participants may defer all or a portion of either their base salary
         and/or bonus on an annual basis. The minimum base salary deferral is
         $400 per month. The minimum bonus deferral is 25% of the bonus amount.

         In addition, a Participant may elect to defer such other amounts of
         compensation as the Company may agree pursuant to an employment
         agreement, separation agreement or other similar written contractual
         arrangement with the Participant; provided that the terms and


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         conditions of such agreement or other arrangement shall be, and are,
         incorporated herein and made a part hereof to the extent necessary for
         the proper administration thereof.

         Participants shall be provided deferral election forms and detailed
         instructions during the month of October prior to each plan year (or,
         prior to the first day of the month for which a deferral is made or
         scheduled to commence, where an eligible employee is first made
         eligible to participate other than as of the first day of a plan year).
         Control procedures require that all eligible employees, whether or not
         they elect to defer, complete and sign a deferred compensation election
         form. Except as noted above, the completed and signed forms must be
         returned to the Plan Administrator by the first day of November prior
         to the applicable plan year.

         Amounts deferred are credited to the Participant's deferred
         compensation account as of the date on which the salary and/or bonus
         normally would have been paid. FICA and other tax obligations, if any,
         are withheld from other compensation if available; otherwise, the taxes
         are deducted from the amount scheduled for deferral.

V.       Special Company Matching Contribution.
         -------------------------------------

         A Participant may receive a Special Company Match pursuant to Exhibit
         A, attached hereto; provided, however, the Board of Directors of the
         Company (or the officer or committee designated by the Board of
         Directors), may designate any other executive employee of the Company
         who is compensated by United States payroll as eligible to receive a
         Special Company Match hereunder. Any Company Match credited to the
         account of a Participant shall be administered in accordance with the
         terms and conditions of the Plan.

VI.      Earnings on Deferred Compensation
         ---------------------------------

                                       3

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         Earnings are credited to each Participant's account as of the first day
         of each month, before any additional deferrals for that month are
         credited. The amount of earnings so credited for a month is calculated
         by multiplying the Participant's account balance as of the beginning of
         such month by an interest factor determined as follows: the weekly
         average rate for 10-year Treasury notes (as reported by the Federal
         Reserve Board and quoted in The Wall Street Journal), for the last week
         ending within such month. Accounts are not actually invested.

         For the month with respect to which a Participant's account is required
         to be fully and finally distributed, and after earnings are calculated
         and credited for such final month, the account shall be deemed to have
         been distributed on the first day of such month (irrespective of the
         actual date of distribution).

VII.     Payout
         ------

         Effective October 1, 1995, Participants may designate, from the
         following options, how their deferred amounts are to be paid out upon
         retirement:

                  .    a single sum in January following the year of retirement.

                  .    annual installments over 5, 10, or 15 years beginning in
                       January following the year of retirement.

         Such designation must be delivered to the Company, in writing, no later
         than November 1 of the year immediately preceding the year in which the
         Participant's retirement date occurs. If no designation is made prior
         to such time, such deferred amounts shall be paid out as provided in
         Article XV hereof. Such designations may not be changed after
         retirement or termination of employment for any other reason.

                                       4

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         Notwithstanding the foregoing provisions, any election made prior to
         October 1, 1995, by a Participant shall continue to be honored by the
         Plan, unless and until changed by the Participant as above provided.

         For purposes of this Plan, "retirement" means termination of employment
         at or after a participant's Normal or Early Retirement Date, as those
         terms are defined in the Appleton Papers Inc. Retirement Plan for
         Non-Bargaining Unit Employees (or, if applicable, the similar plan of a
         company affiliated or under common control with the Company in which
         the participant is participating or is a member at the time of
         termination of employment with the Company).

VIII.    Beneficiary
         -----------

         All participants are required to complete a beneficiary notice
         designating how their deferred compensation account is to be
         distributed in case of death. Participants may change their beneficiary
         designations from time to time by completing an amended beneficiary
         notice.

IX.      No Transfer
         -----------

         Except as permitted by Article VIII, no rights of any kind under this
         plan can be transferred or assigned by the participant or any
         designated beneficiary or be subject to alienation, encumbrance,
         garnishment, attachment, execution, or levy or seizure by legal process
         of any kind, voluntary or involuntary.

X.       Hardship Withdrawal
         -------------------

                                       5

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         Once deferred, the funds are expected to remain in the deferred account
         until the date elected for distribution. However, in the case of a
         severe financial hardship or genuine financial emergency caused by
         accident, illness, or other event totally beyond the control of the
         participant, application may be made for withdrawal from the account to
         cover actual expenses. In the event of such withdrawal, deferrals shall
         be stopped for the balance of the current plan year, as well as the
         next full plan year. The application must be in writing and include all
         of the details relevant to the situation. The Plan Administrator is the
         sole judge of the severity of the situation and the amount, if any,
         which may be withdrawn.

         Hardship withdrawals are paid in a single sum as soon as
         administratively possible following the date of determination of severe
         financial hardship or emergency.

XI.      Special Withdrawal Prior to Full Distribution of Account
         --------------------------------------------------------

         Notwithstanding any other provision of this Plan, a Participant
         (whether an active Employee of the Company, or a former Employee or
         Retiree of the Company with a continuing deferred account balance) may
         at any time request a withdrawal of all or any portion of his deferred
         account prior to the full distribution thereof, subject to the
         irrevocable forfeiture of ten percent (10%) of the amount so withdrawn.
         Any such forfeiture shall revert solely to the Company. The amount of
         such withdrawal, reduced by such forfeiture and any applicable tax
         withholdings, shall be paid to the Participant as soon as reasonably
         practicable after the receipt of a written request therefor.

         Any withdrawal made under this Article XI shall be made from the
         Participant's Account for each Year in the amounts and proportions
         specified by the Participant; provided that if the Participant does not
         so specify, such withdrawals shall be made proportionately out of the
         balance of such accounts outstanding at the time of withdrawal and
         shall thereby proportionately reduce the amounts of distributions
         therefrom.

                                       6

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         If any such withdrawal causes the balance of the Participant's Account,
         or the account of any other Participant, to be or become taxable by the
         Internal Revenue Service, such withdrawal, and the right to make future
         withdrawals, shall be deemed to be null and void ab initio, and the
                                                          ---------
         Participant shall redeposit the withdrawn amount to with the Company
         (and any amounts forfeited shall be restored by the Company to the
         Participant's account), subject to the other terms and conditions of
         this Plan. This redeposit requirement is a condition to participation
         in this Plan.

XII.     Newly Eligible Participants
         ---------------------------

         Executives attaining one of the positions described in Article II above
         by means of employment or promotion are eligible for participation
         beginning with the plan year following the date of their selection for
         participation. Newly eligible participants will be provided with
         deferral election forms prior to their first plan year of eligibility.
         The completed and signed forms must be returned to the Plan
         Administrator by the first day of November prior to the applicable plan
         year (or, if the date of selection is on or after November 1 of such
         year, by the last day of the month prior to the applicable plan year).

XIII.    Transfer to a Non-Eligible Position
         -----------------------------------

         Participants who are transferred from an eligible to a non-eligible
         position are prohibited from deferring additional monies into their
         accounts as of the date of the reassignment. However, their previously
         elected payout schedules remain in force.

XIV.     Termination
         -----------

         The following events other than retirement or death constitute
         termination:

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         .        Severance from service with Appleton Papers Inc. and all other
                  Arjo Wiggins Appleton controlled group members;

         .        Permanent non-U.S. payroll compensation status.

XV.      Payout in the Event of Death or Termination
         -------------------------------------------

         If the participant dies, or terminates service for any reason other
         than retirement, all deferred monies are paid out in a single sum in
         the month following the month of death or termination. This
         distribution is made regardless of the payment method previously
         elected.

XVI.     Administration of the Plan
         --------------------------

         The Company has appointed the Vice President Human Resources (the "Plan
         Administrator") to administer the Plan. The Plan is administered under
         the guidelines established by the Plan Administrator, which has sole
         discretionary authority over the administration of the Plan.

         The Company reserves the right to modify, amend or terminate the plan
         at any time, provided, however, that no such action will have the
         effect of diminishing the benefits payable hereunder in respect of any
         person then participating in or receiving benefits under this Plan,
         without the consent of such person.

XVII.    General Provisions
         ------------------

         A.       Finality of Determination. The determination of the Plan
                  -------------------------
                  Administrator as to any disputed questions arising under this
                  Plan, including questions of construction and interpretation
                  shall be final,  binding, and conclusive upon all persons.

         B.       Expenses. The expenses of administering the Plan shall be
                  --------
                  borne by the Company.

                                       8

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          C.   Indemnification and Exculpation. The Plan Administrator, its
               -------------------------------
               agents and the officers, directors, and employees of the Company
               shall be indemnified and held harmless by the Company against and
               from any and all loss, cost, liability, or expense that may be
               imposed upon or reasonably incurred by them in connection with or
               resulting from any claim, action, suit, or proceeding to which
               they may be a party or in which they may be involved by reason of
               any action taken or failure to act under this Plan and against
               and from any and all amounts paid by them in settlement (with the
               Company's written approval) or paid by them in satisfaction of a
               judgment in any such action, suit, or proceeding. The foregoing
               provision shall not be applicable to any person if the loss,
               cost, liability, or expense is due to such person's gross
               negligence or willful misconduct.

          D.   Funding. All benefits paid under this Plan shall be paid from the
               -------
               general assets of the Company. Such amounts shall be reflected on
               the accounting records of the Company but shall not be construed
               to create or require the creation of a trust, custodial, or
               escrow account. No Participant shall have any right, title, or
               interest whatever in or to any investment reserves, accounts, or
               funds that the Company may purchase, establish, or accumulate to
               aid in providing benefits under this Plan. Nothing contained in
               this Plan, and no action taken pursuant to its provisions, shall
               create a trust or fiduciary relationship of any kind between the
               Company and a Participant or any other person. Neither a
               Participant nor any beneficiary of a Participant shall acquire
               any interest greater than that of an unsecured creditor.

          E.   Action by the Company. Any action required of or permitted by the
               ---------------------
               Company under this Plan shall be by resolution of the Board of
               Directors of the Company or any person or persons authorized by
               resolution of the Board of Directors including, but not limited
               to, the Plan Administrator.

                                       9

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          F.   Employee Rights. Establishment of the Plan shall not be construed
               ---------------
               to give any Participant the right to be retained by the Company
               or to any benefits not specifically provided by the Plan.

          G.   Severability. In the event any provision of the Plan shall be
               ------------
               held invalid or illegal for any reason, any illegality or
               invalidity shall not affect the remaining parts of the Plan, but
               the Plan shall be construed and enforced as if the illegal or
               invalid provision had never been inserted, and the Company shall
               have the privilege and opportunity to correct and remedy such
               questions of illegality or invalidity by amendment as provided in
               the Plan.

          H.   Applicable Law. The Plan is fully exempt from Titles II, III, and
               --------------
               IV of ERISA. The Plan shall be governed and construed in
               accordance with the laws of the State of Wisconsin, except to the
               extent such laws are preempted by ERISA.

          I.   Appeals from Denial of Claims. If any claim for benefits under
               -----------------------------
               the Plan is wholly or partially denied, the claimant shall be
               given notice in writing within a reasonable period of time after
               receipt of the claim by the Plan (not to exceed 90 days after
               receipt of the claim or, if special circumstances require an
               extension of time, written notice of the extension shall be
               furnished to the claimant and an additional 90 days will be
               considered reasonable) by registered or certified mail of such
               denial, written in a manner calculated to be understood by the
               claimant, setting forth the following information:

               (i)  the specific reasons for such denial;

               (ii) specific reference to pertinent Plan provisions on which the
                    denial is based;

                                       10

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                  (iii)    a description of any additional material or
                           information necessary for the claimant to perfect the
                           claim and an explanation of why such material or
                           information is necessary; and

                  (d)      an explanation of the Plan's claim review procedure.

                  The claimant also shall be advised that he or his duly
                  authorized representative may request a review by the Plan
                  Administrator of the decision denying the claim by filing with
                  the Plan Administrator, within 60 days after such notice has
                  been received by the claimant, a written request for such
                  review, and that he may review pertinent documents, and submit
                  issues and comments in writing within the same 60-day period.
                  If such request is so filed, such review shall be made by the
                  Plan Administrator within 60 days after receipt of such
                  request, unless special circumstances require an extension of
                  time for processing, in which case the claimant shall be so
                  notified and a decision shall be rendered as soon as possible,
                  but not later than 120 days after receipt of the request for
                  review. The claimant shall be given written notice of the
                  decision resulting from such review, which notice shall
                  include specific reasons for the decision, written in a manner
                  calculated to be understood by the claimant, and specific
                  references to the pertinent Plan provisions on which the
                  decision is based. Only upon the exhaustion of the
                  administrative remedies outlined above may a claimant or his
                  duly authorized representative begin a legal action pressing a
                  claim for benefits under the Plan.

                                    * * * * *

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<PAGE>

                               APPLETON PAPERS INC.                ATTACHMENT A
                               --------------------                ------------
                           DEFERRED COMPENSATION PLAN
                           --------------------------

                                    EXHIBIT A
                                    ---------

                              SPECIAL COMPANY MATCH
                              ---------------------
                           (Effective January 1, 2000)

OVERVIEW

Due to tax law limitations/1/ on contributions to the 401(k) Plan, some
executives are not able to receive the full amount of "matching contributions"
available under the Appleton Papers Retirement Savings Plan ("401(k) Plan").
Normally, the Company matches the first 6% of elective deferrals at $.75 on the
dollar.

In addition, eligible Appleton Papers executives who elect to defer income under
the Appleton Papers Inc. Deferred Compensation Plan are not currently eligible
for Company matching contributions on that portion of their income that would
have been previously eligible for a 401(k) match.

To partially remedy this situation, Appleton Papers provides a Special Company
Match of $.50 on each dollar that cannot be matched under the 401(k) Plan
because of these tax limitations, and on income deferred under the Deferred
Compensation Plan. The maximum Special Company Match is the difference between a
theoretical match (not to exceed $10,000) and the actual 401(k) match (but
assuming the actual match to be $.50 for each dollar up to 6% of pay).

The details of this Special Company Match are explained below.

ELIGIBILITY

1.       Executives selected by the Compensation Committee as eligible for
         participation in the Appleton Papers Inc. Deferred Compensation Plan
         will also be eligible for the Special Company Match. To actually
         receive a Special Company Match, executives must defer salary and/or
         bonus to the Deferred Compensation Plan.

2.       Executives must also be Participants in the Appleton Papers 401(k)
         Plan, and elect to defer a minimum of 6% of eligible Compensation into
         the 401(k) Plan.

--------
     /1/Tax law limits the amount of elective contributions that can be made
under the Company 401(k) Plan (for the year 2000, the indexed maximum elective
deferral is $10,500), and the amount of compensation that may be used for
benefit purposes (for the year 2000, the indexed maximum compensation is
$170,000).

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ADMINISTRATION
--------------

1.       Appleton Papers will credit a Special Company Match to the
         Participant's account in the Deferred Compensation Plan, which is the
         difference between the theoretical 401(k) match (not to exceed $10,000)
         and the actual 401(k) match (prorated to $.50 on the dollar up to 6% of
         pay). The theoretical match is 3% of eligible compensation as defined
         under the Savings Plus Plan, not reduced by IRS limits or other
         deferral decisions. This will typically be base salary plus bonus.

2.       The Special Company Match may not exceed 50% of the amount actually
         being deferred by the Participant under the Appleton Papers Deferred
         Compensation Plan for the year to which the Special Company Match
         applies.

3.       Each January, Appleton Papers will calculate the amount of any Special
         Company Match dollars to be added to the Participant's deferred
         compensation account. The adjustment will be made as of February 1st,
         at which time the Special Company Match will first become subject to
         interest earnings.

         Example of Year-end Calculation: Assume Executive earns $150,000 salary
         -------------------------------
         + $50,000 bonus and elects to defer 6% under the 401(k) Plan and the
         entire bonus under the Appleton Papers Deferred Compensation Plan.

<TABLE>
<CAPTION>
                                                                                    Year
                                                                                    2000
         Executive's Name ______________________________________________           -----

         <S>                                                                 <C>
         I.  DETERMINATION OF "SPECIAL MATCH"
                  Total Salary Earned                                        $   150,000
                  Total Bonus Earned                                              50,000
                                                                                --------

                           Total Compensation                                   $200,000
                                                                                --------

                  Theoretical Match Available*                                     6,000
                  Actual 401(k) Match**                                           -4,500
                                                                                  ------
                  Available Special Company Match
                  Through Deferred Comp.***                                  $     1,500
                                                                             -----------
</TABLE>

         *        3% of Total Compensation, not to exceed $10,000.

         **       Actual from payroll system (prorated to $.50 on the dollar up
                  to 6% of pay).

         ***      Limited to 50% of compensation actually deferred under the
                  Appleton Papers Deferred Compensation Plan by Participant.

                                  Page 2 of 3



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         II. DEFERRED COMPENSATION PLAN SUMMARY
             ----------------------------------
                  Salary/Bonus                                     $ 50,000
                  Special Company Match                               1,500
                                                                   --------

                           Appleton Papers Deferred Comp. Total    $ 51,500
                                                                   --------


4.       The payout of the Special Company Match dollars held within the
         Appleton Papers Inc. Deferred Compensation Plan will follow the payout
         option selected under the appropriate salary/bonus deferral election.

                                    * * * * *

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