Document:

Exhibit 4.1

                          First Supplemental Indenture

                          dated as of January 29, 2010

                                      among

                              APPLETON PAPERS INC.,
                                   as Issuer,

                     the parties named as guarantors herein,
                                 as Guarantors,

                                       and

                         U.S. BANK NATIONAL ASSOCIATION,
                        as Trustee and Collateral Agent,

                                     to the

                                    INDENTURE

                         dated as of September 30, 2009,

                                    governing

                        11.25% Second Lien Notes due 2015
<PAGE>
     This FIRST SUPPLEMENTAL INDENTURE, dated as of January 29, 2010 (this
"First Supplemental Indenture"), is among Appleton Papers Inc., a Delaware
corporation (the "Company"), the parties named on the signature pages hereto as
guarantors (the "Guarantors") and U.S. Bank National Association, as trustee and
collateral agent (the "Trustee").

                                    RECITALS

     WHEREAS, the Company, the Guarantors and the Trustee have entered into the
Indenture, dated as of September 30, 2009 (as amended, supplemented or otherwise
modified from time to time, the "Indenture"), providing for the issuance of the
Company's 11.25% Second Lien Notes due 2015 (the "Notes");

     WHEREAS, Section 9.02 of the Indenture provides that the Company and the
Trustee may amend or supplement the Indenture as set forth in Article I of this
First Supplemental Indenture with the consent of the Holders of a majority in
aggregate principal amount of the outstanding Notes;

     WHEREAS, Holders of a majority in aggregate principal amount of the
outstanding Notes have consented to the amendments to the Indenture set forth in
Article I of this First Supplemental Indenture;

     WHEREAS, the Company and the Guarantors have duly authorized the execution
and delivery of this First Supplemental Indenture;

     WHEREAS, pursuant to Section 9.06 of the Indenture, the Trustee is
authorized and required to execute and deliver this First Supplemental
Indenture;

     WHEREAS, all other acts and proceedings required by law, by the Indenture
and by the amended and restated certificate of incorporation and by-laws of the
Company and by the applicable governing documents of each Guarantor to execute
and deliver this First Supplemental Indenture, in accordance with its terms,
have been duly done and performed;

     NOW, THEREFORE, in consideration of the premises and the covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and for the equal and
proportionate benefit of the Holders of the Notes, the Company, the Guarantors
and the Trustee hereby agree as follows:

                                    ARTICLE I
                           AMENDMENTS TO THE INDENTURE

     1.   Amendments to the Indenture. The following sections of the Indenture
are hereby amended and/or restated as set forth below:

     1.1  Section 1.01 Definitions. Section 1.01 of the Indenture is hereby
amended to include the following additional terms:

          "Parent Entity Transaction" means the consummation of a merger or
consolidation by the Parent Entity with a Specified Person or the acquisition of
Capital Stock of the Parent Entity by a Specified Person; provided that such
transaction does not result in (a) any "person" (as defined in clause (1) of the
definition of "Change of Control") other than a Specified Person becoming the
Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock
of the Company, measured by voting power rather than number of shares.

          "Specified Person" means, in respect of a Parent Entity Transaction,
(a) a Person with no material operations immediately prior to such Parent Entity
Transaction, (b) a special purpose acquisition company or (c) a "Morris Trust"
vehicle or reverse "Morris Trust" vehicle.
<PAGE>
     1.2  Section 1.01 Definitions. The definition of "Asset Sale" set forth
in Section 1.01 of the Indenture is hereby amended and restated to read in its
entirety as follows:

          "Asset Sale" means:

          (1)  the sale, lease, conveyance or other Disposition of any assets or
rights; provided that the sale, lease, conveyance or other Disposition of all or
substantially all of the assets of the Company and its Subsidiaries taken as a
whole will be governed by Section 4.15 and/or Section 5.01 hereof and not by the
provisions of Section 4.10 hereof; and

          (2)  the issuance of Equity Interests in any of the Company's
Restricted Subsidiaries or the sale of Equity Interests in any of its Restricted
Subsidiaries.

          Notwithstanding the preceding, none of the following items will be
deemed to be an Asset Sale:

          (1)  any single transaction or series of related transactions that
involves assets having a Fair Market Value of less than $2.0 million;

          (2)  a sale or transfer of assets between or among the Company and its
Restricted Subsidiaries;

          (3)  an issuance of Equity Interests by a Restricted Subsidiary of
the Company to the Company, any Parent Entity or to a Restricted Subsidiary of
the Company or the issuance by the Parent Entity of its Capital Stock to the
ESOP;

          (4)  the sale or lease of equipment, products, services or accounts
receivable in the ordinary course of business and any Disposition of damaged,
worn-out or obsolete assets in the ordinary course of business;

          (5)  the licensing of intellectual property in the ordinary course of
business;

          (6)  the Disposition of cash or Cash Equivalents;

          (7)  a Restricted Payment that does not violate Section 4.07 hereof or
a Permitted Investment;

          (8)  the granting of Liens that is permitted by Section 4.12 hereof;

          (9)  surrender or waiver of contract rights or the settlement, release
or surrender of contract, tort or other claims; and

          (10) the sale, lease, conveyance, transfer or other Disposition of the
black liquor producing property, plant, and equipment, together with all related
assets (tangible and intangible), located at the Company's Roaring Spring,
Pennsylvania facility.

     1.3  Section 1.01 Definitions. The definition of "Change of Control"
set forth in Section 1.01 of the Indenture is hereby amended and restated to
read in its entirety as follows:

          "Change of Control" means the occurrence of any of the following:

          (1)  the direct or indirect sale, transfer, conveyance or other
Disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of
<PAGE>
the properties or assets of the Company and its Subsidiaries taken as a whole to
any "person" (as that term is used in Section 13(d) of the Exchange Act);

          (2) the adoption of a plan relating to the liquidation or dissolution
of the Company;

          (3)  the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any
"person" (as defined above in clause (1) of this definition) becomes the
Beneficial Owner, other than the ESOP and its Subsidiaries, directly or
indirectly, of more than 50% of the Voting Stock of the Company, measured by
voting power rather than number of shares; provided, however, that the foregoing
shall not apply to a Parent Entity Transaction;

          (4)  the first day on which a majority of the members of the Board of
Directors of the Company and the Parent Entity are not Continuing Directors; or

          (5)  the first day on which the Parent Entity ceases to own at least
50% of the outstanding Equity Interests of the Company; provided, however, that
the foregoing shall not apply to a Parent Entity Transaction;.

          Notwithstanding anything to the contrary above, if the Company
converts to a limited liability company, such a conversion of corporate form
alone shall not be deemed to result in a "Change of Control" for purposes of
this definition.

     1.4  Section 1.01 Definitions. The definition of "Permitted Investments"
set forth in Section 1.01 of the Indenture is hereby amended and restated to
read in its entirety as follows:

          "Permitted Investments" means:

          (1)  any Investment in the Company or in a Restricted Subsidiary of
the Company;

          (2)  any Investment in Cash Equivalents;

          (3)  any Investment existing on the Issue Date;

          (4)  any Investment by the Company or any Restricted Subsidiary of the
Company in a Person, if as a result of such Investment:

          (a) such Person becomes a Restricted Subsidiary of the Company; or

          (b) such Person is merged, consolidated or amalgamated with or into,
     or transfers or conveys substantially all of its assets to, or is
     liquidated into, the Company or a Restricted Subsidiary of the Company;

          (5)  any Investment made as a result of the receipt of non-cash
consideration from an Asset Sale that was made pursuant to and in compliance
with Section 4.10 hereof;

          (6)  any acquisition of assets or Capital Stock solely in exchange for
the issuance of Equity Interests (other than Disqualified Stock) of the Company;

          (7)  any Investments received in compromise or resolution of (A)
Obligations of trade creditors or customers that were incurred in the ordinary
course of business of the Company or any of its Restricted Subsidiaries,
including pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of any trade creditor or customer; or (B) litigation,
arbitration or other disputes with Persons who are not Affiliates;

          (8)  Investments represented by Hedging Obligations;
<PAGE>
          (9)  loans or advances to employees made in the ordinary course of
business of the Company or the Restricted Subsidiary of the Company in an
aggregate principal amount not to exceed $2.0 million at any one time
outstanding;

          (10) repurchases of the Notes;

          (11) extensions of trade credit (including accounts receivable) by the
Company and its Restricted Subsidiaries on commercially reasonable terms in the
ordinary course of business;

          (12) other Investments in any Person having an aggregate Fair Market
Value (measured on the date each such Investment was made and without giving
effect to subsequent changes in value), when taken together with all other
Investments made pursuant to this clause (12) that are at the time outstanding
not to exceed the greater of (x) $25.0 million and (y) 3.0% of Consolidated
Tangible Assets;

          (13) Investments in any Person consisting of the black liquor
producing property, plant, and equipment, together with all related assets
(tangible and intangible), located at the Roaring Spring, Pennsylvania facility.
Not in limitation of the foregoing, and notwithstanding any other provision of
this Indenture to the contrary, any sale, lease, conveyance, transfer or other
Disposition of such property, plant and equipment and related assets to any
Person shall be considered a Permitted Investment for all purposes under this
Indenture; and

          (14) Equity Interests or other Investments received by the Parent
Entity, the Company or any Restricted Subsidiary in respect of Permitted
Investments of the type described in clause (13) above, so long as such
Investment is held by the Company or a Guarantor.

     1.5  Section 4.11 Transactions with Affiliates. Section 4.11(b) of the
Indenture is hereby amended and restated to read in its entirety as follows:

          The following items will not be deemed to be Affiliate Transactions
and, therefore, will not be subject to the provisions of Section 4.11(a) hereof:

          (1)  any employment, termination protection, deferred compensation,
     incentive, non-competition, consulting, benefit, indemnification or similar
     agreement or plan entered into by the Company or any of its Restricted
     Subsidiaries or the Parent Entity in the ordinary course of business with
     officers, directors or employees of the Company, such Restricted Subsidiary
     or such Parent Entity;

          (2)  transactions (including a merger otherwise in compliance with the
     terms hereof) between or among the Parent Entity, the Company and one or
     more of the Company's Restricted Subsidiaries;

          (3)  transactions with a Person (other than an Unrestricted Subsidiary
     of the Company) that is an Affiliate of the Company solely because the
     Company owns, directly or through a Restricted Subsidiary, an Equity
     Interest in, or controls, or is under common control with, such Person;

          (4)  payment of reasonable compensation (including equity-based
     compensation) and expense reimbursement to members of the Board of
     Directors who are not otherwise Affiliates of the Company;

          (5)  any issuance of Equity Interests (other than Disqualified Stock)
     of the Company to Affiliates of the Company;
<PAGE>
          (6)  Restricted Payments or Permitted Investments that do not violate
     the provisions of Section 4.07 hereof;

          (7)  loans or advances to employees in the ordinary course of business
     not to exceed $2.0 million in the aggregate at any one time outstanding;

          (8)  the repurchase by the Parent Entity, or the issuance by the
     Parent Entity, of shares of its Capital Stock, from or to the ESOP, as the
     case may be, pursuant to the terms of the ESOP Documentation, not otherwise
     prohibited by this Indenture;

          (9)  amendments to the ESOP that do not violate the provisions of
     Section 4.16 hereof; and

          (10) the Parent Entity Transaction and any related transactions and
     documentation in connection therewith.

     1.6  Section 4.16 Amendment of Fox River Indemnity Arrangements, Security
Holders Agreements or ESOP Documentation. Section 4.16 of the Indenture is
hereby amended and restated to read in its entirety as follows:

          Section 4.16 Amendment of Fox River Indemnity Arrangements, Security
Holders Agreements or ESOP Documentation. Without the consent of the Holders of
at least a majority in aggregate principal amount of the Notes then outstanding,
the Company and the Parent Entity will not amend, supplement or otherwise
modify, or permit the amendment, supplement or modification of (pursuant to a
waiver, endorsement or otherwise):

          (a)  the terms and conditions of the Fox River Indemnity Arrangements
in a manner that is materially adverse to the Holders of the Notes;

          (b)  the terms and conditions of the Security Holders Agreements in a
manner that is materially adverse to the Holders of the Notes; or

          (c)  the ESOP Documentation relating to the ESOP Component in a manner
that is materially adverse to the Holders of the Notes; provided, however, that
certain administrative, non-economic and other terms of the ESOP Documentation
relating to the ESOP Component (not including the following provisions as they
relate to the ESOP Component: (i) contributions to the ESOP (Article III of the
ESOP), (ii) distributions to participants (Article VII of the ESOP),
(iii) amendment or termination of the ESOP (Articles IX and X of the ESOP),
(iv) eligibility (Section 2.1(d) of the ESOP), (v) the allowable amount of a
participant's Savings Percentage (as defined in the ESOP) (Section 2.2(a) of the
ESOP), (vi) leased employees (Section 2.6 of the ESOP), (vii) the vesting
schedule relating to specific accounts (Section 4.2 of the ESOP), (viii) special
vesting rules (Section 4.3 of the ESOP), (ix) maximum amounts on annual
additions (Section 5.4 of the ESOP), (x) limitation on deduction (Section 5.5 of
the ESOP), (xi) the trust fund (Section 6.1 of the ESOP), (xii) diversification
of ESOP accounts (Section 6.5 of the ESOP), (xiii) adjustment of ESOP accounts
(Section 6.9(d) of the ESOP) and definitions related to items (i) through (xiii)
of this subsection (c) as they relate to the ESOP Component) may be amended with
the consent of the Trustee upon receipt of an Officers' Certificate and an
Opinion of Counsel, to the general effect that the proposed amendment is not
adverse to the Parent Entity or the Company, and an opinion of an ESOP
consultant, to the general effect that the proposed amendment will not
accelerate the timing or amount of the Parent Entity's obligations to repurchase
common stock from employees terminating their participation in the ESOP
Component; provided further, however, that amendments, supplements or other
modifications to the ESOP Documentation in connection with a Parent Entity
Transaction or a termination of the ESOP shall not be limited by or subject to
this Section 4.16(c).

          Notwithstanding anything to the contrary contained in the paragraph
above in this Section 4.16(c), amendments, supplements or other modifications of
the ESOP Documentation shall be permitted
<PAGE>
so long as the Board of Directors or an Officer of the Company determines in
good faith on, or within five Business Days of, the date the respective
amendment, supplement or modification becomes effective, that the respective
such amendment, supplement or modification is not reasonably likely to result in
a material adverse change in the business, financial condition or results of
operations of the Company and its Subsidiaries taken as whole.

     1.7  Section 5.01 Merger, Consolidation, or Sale of Assets.  Section 5.01
of the Indenture is hereby amended and restated to read in its entirety as
follows:

          Section 5.01 Merger, Consolidation, or Sale of Assets. The Company
shall not, directly or indirectly: (1) consolidate or merge with or into another
Person (whether or not the Company is the surviving corporation); or (2) sell,
assign, transfer, convey or otherwise Dispose of all or substantially all of the
properties or assets of the Company and its Restricted Subsidiaries taken as a
whole, in one or more related transactions, to another Person, unless:

          (1)  either:

               (A) the Company is the surviving corporation; or

               (B)  the Person formed by or surviving any such consolidation or
          merger (if other than the Company) or to which such sale, assignment,
          transfer, conveyance or other Disposition has been made is a
          corporation organized or existing under the laws of the United States,
          any state of the United States or the District of Columbia;

          (2)  the Person formed by or surviving any such consolidation or
     merger (if other than the Company) or the Person to which such sale,
     assignment, transfer, conveyance or other Disposition has been made assumes
     all the Obligations of the Company under the Security Documents, the Notes
     and this Indenture pursuant to agreements reasonably satisfactory to the
     Trustee;

          (3)  immediately after such transaction, no Default or Event of
     Default exists;

          (4)  the Company or the Person formed by or surviving any such
     consolidation or merger (if other than the Company), or to which such sale,
     assignment, transfer, conveyance or other Disposition has been made, will,
     on the date of such transaction after giving pro forma effect thereto and
     any related financing transactions as if the same had occurred at the
     beginning of the applicable four-quarter period, be permitted to incur at
     least $1.00 of additional Indebtedness pursuant to the Bank Consolidated
     First Lien Leverage Ratio, Bank Consolidated Leverage Ratio and Bank
     Consolidated Interest Coverage Ratio tests set forth in Section 4.09(a)
     hereof; and

          (5)  all rights afforded to the Company or the Parent Entity by the
     Environmental Indemnity Agreements are effectively assigned, in full, to
     the Person formed by or surviving any such consolidation or merger (if
     other than the Company or the Parent Entity) or the Person to which such
     sale, assignment, transfer, conveyance or other Disposition has been made
     pursuant to agreements reasonably satisfactory to the Trustee.

          In addition, the Company may not, directly or indirectly, lease all or
substantially all of the properties and assets of the Company and its Restricted
Subsidiaries taken as a whole, in one or more related transactions, to any other
Person, and the Parent Entity will not consolidate or merge with any entity
other than another Parent Entity and will not permit any merger by any future
Parent Entity unless and until the conditions set forth in clauses (1) through
(5) above have been satisfied.

          This Section 5.01 will not apply to:
<PAGE>
          (A)  a merger of the Company with an Affiliate solely for the purpose
of reincorporating the Company in another jurisdiction;

          (B)  any consolidation or merger or any sale, assignment, transfer,
conveyance, lease or other Disposition of assets between or among the Company
and its Restricted Subsidiaries; or

          (C)  a Parent Entity Transaction.

     1.8  Section 10.04 Guarantors May Consolidate, etc., on Certain Terms.
Section 10.04 of the Indenture is hereby amended and restated to read in its
entirety as follows:

          Section 10.04 Guarantors May Consolidate, etc., on Certain Terms.
Except as otherwise provided in Section 10.05 hereof, no Guarantor may sell or
otherwise dispose of all or substantially all of its assets to, or consolidate
with or merge with or into (whether or not such Guarantor is the surviving
Person) another Person, other than the Company or another Guarantor, unless:

          (1)  Except with respect to a Parent Entity Transaction, immediately
     after giving effect to such transaction, no Default or Event of Default
     exists; and

          (2)  either:

               (a)  subject to Section 10.05 hereof, the Person acquiring the
          property in any such Disposition or the Person formed by or surviving
          any such consolidation or merger assumes all the Obligations of that
          Guarantor under (i) this Indenture and its Note Guarantee on the terms
          set forth herein or therein, pursuant to a supplemental indenture in
          form and substance reasonably satisfactory to the Trustee and the
          Collateral Agent and (ii) the Security Documents to which that
          Guarantor was a party by amendment, supplement or other instrument
          reasonably satisfactory to the Trustee and the Collateral Agent, and
          in connection therewith shall cause such instruments to be filed and
          recorded in such jurisdictions and take such other actions as may be
          required by applicable law to perfect or continue the perfection of
          the Lien created under the Security Documents on the Collateral owned
          by or transferred to the surviving entity; or

               (b)  the Net Proceeds of such Disposition are applied in
          accordance with the applicable provisions of this Indenture, including
          without limitation, Section 4.10 hereof; and

          (3)  if the Guarantor is a party to the Environmental Indemnity
     Agreements, all rights afforded to such Guarantor under the Environmental
     Indemnity Agreements are effectively assigned in full to the Person formed
     by or surviving any consolidation or merger (if other than the Company or
     another Guarantor) or the Person to which such sale, assignment, transfer,
     conveyance or other Disposition has been made, pursuant to agreements
     reasonably satisfactory to the Trustee.

          In case of any such consolidation, merger, sale or conveyance and upon
the assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the Note
Guarantee and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by the Guarantor, such successor
Person will succeed to and be substituted for the Guarantor with the same effect
as if it had been named herein as a Guarantor. All Note Guarantees so evidenced
will in all respects have the same legal rank and benefit under this Indenture
as the Note Guarantees theretofore and thereafter issued in accordance with the
terms of this Indenture as though all of such Note Guarantees had been executed
at the Issue Date.

          Except as set forth in Articles IV and V hereof, and notwithstanding
clauses 2(a) and (b) above, nothing contained in this Indenture or in any of the
Notes will prevent any consolidation or merger
<PAGE>
of a Guarantor with or into the Company or another Guarantor, or will prevent
any sale or conveyance of the property of a Guarantor as an entirety or
substantially as an entirety to the Company or another Guarantor.

                                   ARTICLE II
                                  MISCELLANEOUS

     2.   Reference to and Effect on the Indenture. On and after the effective
date of this First Supplemental Indenture, each reference in the Indenture to
"this Indenture," "hereunder," "hereof," or "herein" shall mean and be a
reference to the Indenture as supplemented and amended by this First
Supplemental Indenture, unless the context otherwise requires.

     2.1  Integral Part. This First Supplemental Indenture constitutes an
integral part of the Indenture.

     2.2  Adoption, Ratification and Confirmation. The Indenture, as
supplemented and amended by this First Supplemental Indenture, is in full force
and effect and is in all respects hereby adopted, ratified and confirmed. Every
Holder of Notes heretofore authenticated and delivered under the Indenture shall
be bound by the Indenture as amended hereby. Subject to Section 12.01 of the
Indenture, in the case of a conflict between the Indenture and this First
Supplemental Indenture, the provisions of this First Supplemental Indenture
shall control.

     2.3  General Definitions. Capitalized terms used but not defined herein
shall have the meanings specified in the Indenture.

     2.4  Counterparts. This First Supplemental Indenture may be executed in any
number of copies or counterparts, each of which will be an original; and all
such counterparts together represent the same agreement. The exchange of copies
of this First Supplemental Indenture and of signature pages by facsimile or PDF
transmission shall constitute effective execution and delivery of this First
Supplemental Indenture as to the parties hereto and may be used in lieu of the
original First Supplemental Indenture for all purposes. Signatures of the
parties hereto transmitted by facsimile or PDF shall be deemed to be their
original signatures for all purposes.

     2.5  Headings. Titles of sections of this First Supplemental Indenture are
for convenience of reference only, are not to be considered a part of this First
Supplemental Indenture and will in no way modify or restrict any of the terms or
provisions hereof.

     2.6  Severability. In case any provision of this First Supplemental
Indenture is invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions will not in any way be affected or
impaired thereby.

     2.7  Benefits of Supplemental Indenture. Nothing in this First Supplemental
Indenture, the Indenture or the Notes, express or implied, shall give to any
Person (other than the parties hereto, any Paying Agent, any Registrar and their
successors hereunder and the Holders) any benefit or any legal or equitable
right, remedy or claim under this First Supplemental Indenture, the Indenture or
the Notes.

     2.8  Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN
AND BE USED TO CONSTRUE THIS FIRST SUPPLEMENTAL INDENTURE, WITHOUT GIVING EFFECT
TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION
OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     2.9  Notices. Any notice or communication by the Company, any Guarantor or
the Trustee to the others is duly given if in writing and delivered in person or
by first class mail (registered or certified,
<PAGE>
return receipt requested), facsimile transmission or overnight air courier
guaranteeing next day delivery, to the others' address:

          if to the Company and/or any Guarantor:
               Appleton Papers Inc.
               825 East Wisconsin Avenue
               P.O. Box 359
               Appleton, WI 54912
               Facsimile No.: (920) 991-7256
               Attention: Chief Financial Officer

          with a copy to:
               White & Case LLP
               1155 Avenue of the Americas
               New York, NY 10036
               Facsimile No.: (212) 354-8113
               Attention: Kevin Keogh

          if to the Trustee:
               U.S. Bank National Association
               60 Livingston Avenue
               St. Paul, MN 55107
               Facsimile No.: (651) 495-8097
               Attention: Corporate Trust Administration

     The Company, any Guarantor or the Trustee, by notice to the others, may
designate additional or different addresses for subsequent notices or
communications.

     All notices and communications (other than those sent to Holders) will be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if transmitted by facsimile; and
the next Business Day after timely delivery to the courier, if sent by overnight
air courier guaranteeing next day delivery.

     Any notice or communication to a Holder will be mailed by first class mail,
certified or registered, return receipt requested, or by overnight air courier
guaranteeing next day delivery to its address shown on the register kept by the
Registrar. Any notice or communication will also be so mailed to any Person
described in TIA Section 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it will not affect
its sufficiency with respect to other Holders.

     If a notice or communication is mailed in the manner provided above within
the time prescribed, it is duly given, whether or not the addressee receives it.

     If the Company mails a notice or communication to Holders, it will mail a
copy to the Trustee and each Agent at the same time.

     2.10 No Recourse Against Others. No director, officer, employee,
shareholder or member as such, of the Company or any of the Guarantors shall
have any liability for any obligations of the Company and the Guarantors under
this First Supplemental Indenture, the Indenture or the Notes or for any claim
based on, in respect of or by reason of such obligations or their creation.

                            [Signature pages follow]
<PAGE>
          IN WITNESS WHEREOF, the parties hereto have caused this First
Supplemental Indenture to be duly executed as of the day and year first above
written.

                                           APPLETON PAPERS INC.

                                           By: /s/ Jeffrey J. Fletcher
                                               ---------------------------------
                                           Name:  Jeffrey J. Fletcher
                                           Title: Controller

                                           PAPERWEIGHT DEVELOPMENT CORP., as a
                                            Guarantor

                                           By: /s/ Jeffrey J. Fletcher
                                               ---------------------------------
                                           Name:  Jeffrey J. Fletcher
                                           Title: Controller

                                           AMERICAN PLASTICS COMPANY, INC., as a
                                            Guarantor

                                           By: /s/ Jeffrey J. Fletcher
                                               ---------------------------------
                                           Name:  Jeffrey J. Fletcher
                                           Title: Treasurer

                                           NEW ENGLAND EXTRUSION INC., as a
                                            Guarantor

                                           By: /s/ Jeffrey J. Fletcher
                                               ---------------------------------
                                           Name:  Jeffrey J. Fletcher
                                           Title: Treasurer

                                           U.S. BANK NATIONAL ASSOCIATION, as
                                            Trustee and Collateral Agent

                                           By: /s/ Richard Prokosch
                                               ---------------------------------
                                           Name:  Richard Prokosch
                                           Title: Vice Presidentex10-1.htm

    Exhibit 10.1

      

      

      

        

        

        

        NATIONAL PENN BANCSHARES,
INC.

        

        LONG-TERM INCENTIVE
COMPENSATION PLAN

        

        

        

        

        RESTRICTED
STOCK AGREEMENT

        BETWEEN

        NATIONAL
PENN BANCSHARES, INC.

        

        AND

        

        Scott V.
Fainor

        (the
Grantee)

        

        

        

        

        
          	 
      	
                  Date
      of Grant:

                	
                  January
      28, 2010

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  Number
      of Shares:

                	
                  45,378
      shares

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  Transfer
      Restriction:

                	
                  Lapses
      with respect to 25% of the shares each time that the Company repays an
      additional 25% of its TARP Capital Purchase Program
    Investment

                
	 
      	 
      	 
      
	 
      	
                  Vesting:

                	
                  2nd
      Anniversary of Date of Grant (or upon death, Disability or Change in
      Control)

                

        

        

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        NATIONAL
PENN BANCSHARES, INC.

        LONG-TERM INCENTIVE
COMPENSATION PLAN

        

        

        RESTRICTED STOCK
AGREEMENT

        

        

        This Restricted Stock Agreement dated
as of January 28, 2010, between National Penn Bancshares, Inc. (the
"Corporation") and Scott V.
Fainor (the
"Grantee"),

        

        WITNESSETH:

        

        1.           Grant of Restricted
Stock

        

        Pursuant to the National Penn
Bancshares, Inc. Long-Term Incentive Compensation Plan (the "Plan"), this
Agreement confirms the Corporation's grant to the Grantee, subject to the terms
and conditions of the Plan and to the terms and conditions set forth herein, of
an aggregate of 45,378
shares of common stock (without par value) of the Corporation (“shares of
Restricted Stock”).

        

        2.           Terms and
Conditions

        

        It is understood and agreed that the
grant of shares of Restricted Stock is subject to the following terms and
conditions:

        

        (a)           Restricted (Vesting)
Period.  The transfer of shares of Restricted Stock shall be
restricted until the later of the date on which such shares vest, which shall
occur on the second anniversary of the date of grant, and (i) with respect to
the first 25% of the Restricted Stock, at such time as the Corporation
repurchases at least 25% of its total senior preferred stock from the U.S.
Department of Treasury purchased pursuant to TARP; (ii) with respect to the
second 25% of the Restricted Stock, at such time as the Corporation repurchases
at least 50% of its total senior preferred stock from the U.S. Department of
Treasury purchased pursuant to TARP; (iii) with respect to the third 25% of the
Restricted Stock, at such time as the Corporation repurchases at least 75% of
its total senior preferred stock from the U.S. Department of Treasury purchased
pursuant to TARP; and (iv) with respect to the remaining 25% of the Restricted
Stock, at such time when the Corporation repurchases 100% of its total senior
preferred stock from the U.S. Department of Treasury purchased pursuant to
TARP.

        

        (b)           Escrow and Custody of
Shares.  Unless and until the shares of Restricted Stock vest
as provided in Section 2(a), such shares will be registered in the name of the
Grantee and issued in certificate form, and such certificate or certificates
will be held by the Secretary of the Corporation as escrow agent (“Escrow
Agent”) and may not be sold, transferred, pledged, assigned or otherwise
alienated, hypothecated or disposed of until the such corresponding vesting
conditions are met, as provided in Section 2(a). The Corporation may instruct
the transfer agent for its common stock to place a legend on the certificates
representing the shares of Restricted Stock or otherwise mark its records as to
the restrictions on transfer set forth in this Agreement. The certificate or
certificates representing such shares of Restricted Stock will not be delivered
by the Escrow Agent to the Grantee unless and until the shares of Restricted
Stock have vested and all other terms and conditions in this Agreement have been
satisfied.  The Escrow Agent may, in its discretion, elect to enter
into alternative arrangements for the escrow of the shares of Restricted Stock,
if, in the Escrow Agent’s discretion, such shares are issued in book-entry
form.

         

        (c)           Dividend and Voting
Rights.  The shares of Restricted Stock shall be entitled to

         

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        receive
all dividends and other distributions paid with respect to shares of the
Corporation’s common stock during the Restricted Period.  The Grantee
may exercise full voting rights with respect to the shares of Restricted Stock
during the Restricted Period.

         
 

        (d)           Forfeiture.   Notwithstanding
any contrary provision of this Agreement, upon the Grantee’s separation from
service (as defined in Section 409A of the Code) for any reason other than
death, Disability (as defined in the Plan), or Change in Control (as defined in
the Plan) before the second anniversary of the Date of Grant, the balance of the
shares of Restricted Stock that do not vest pursuant to Section 2(a) will
thereupon be forfeited and automatically transferred to and reacquired by the
Corporation at no cost to the Corporation. The Grantee hereby appoints the
Escrow Agent, with full power of substitution, as the Grantee’s true and lawful
attorney-in-fact with irrevocable power and authority in the name and on behalf
of the Grantee to take any action and execute all documents and instruments,
including without limitation stock powers, which may be necessary to transfer
the unvested shares of Restricted Stock and the certificate or certificates
representing the same to the Corporation upon determination of such
vesting.

        

        (e)           Death, Disability, Change in
Control.  If the Grantee experiences a Separation from Service
(as defined under Section 409A of the Code) due to death, Disability or Change
in Control, the Restricted Shares shall fully vest, but remain subject to the
transfer restrictions until such restrictions lapse in accordance with Section
2(a) above.

        

        (f)           Termination for
Cause.  If the Corporation or a subsidiary terminates the
Grantee’s employment for Cause (as defined in the Plan), any shares of
Restricted Stock not yet vested pursuant to Section 2(a) shall automatically be
forfeited and returned to the Corporation.

        

        (g)           Transferability. All
rights with respect to the shares of Restricted Stock shall be exercisable
during the Grantee’s lifetime only by the Grantee.  Prior to the lapse
of any corresponding vesting conditions, as provided in Section 2(a) during the
Restricted Period, the shares of Restricted Stock shall be transferable only by
Will or by the laws of descent and distribution.

        

        (h)           Adjustment and Substitution
of Shares.  If any merger, reorganization, consolidation,
recapitalization, separation, liquidation, stock dividend, split-up, share
combination, or other change in the corporate structure of the Corporation
affecting the Corporation’s shares of common stock shall occur, the number and
class of shares of Restricted Stock shall be adjusted or substituted for, as the
case may be, as shall be determined by the Committee to be appropriate and
equitable to prevent dilution or enlargement of rights, and provided that the
number of shares shall always be a whole number. Any adjustment or substitution
pursuant to this Section 2(h) shall meet the requirements of Section 409A of the
Code and shall be final and binding upon the Grantee.

         

        (i)           No Right To Continued
Employment.  This grant of shares of Restricted Stock shall not
confer upon the Grantee any right to continue as an employee of the Corporation
or subsidiary, nor shall it interfere in any way with the right of his or her
employer to terminate his or her employment at any time.

        

        (j)           Compliance with Law and
Regulations.  This grant of shares of Restricted Stock shall be
subject to all applicable federal and state laws, rules and regulations and to
such approvals by any government or regulatory agency as may be
required.  The Corporation shall not be required to issue or deliver
any certificates for common shares prior to (1) the effectiveness of a
registration statement under the Securities Act of 1933, as amended, with
respect to such shares, if deemed necessary or appropriate by counsel for the
Corporation, (2) the listing of such shares on any stock exchange on which the
common shares m
 ay then be listed, or
upon the Nasdaq
Stock Market if the common shares are then listed thereon, and (3) compliance
with all 

         

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        other
applicable laws, regulations, rules and orders which may then be in
effect.

        

        3.           TARP Compliance
Period

        

        Notwithstanding anything herein to the
contrary, all restrictions shall lapse with respect to all of the shares of
Restricted Stock (and such shares shall become fully vested) at such time when
the Corporation repurchases 100% of its total senior preferred stock from the
U.S. Department of Treasury purchased pursuant to TARP.  

        

        4.           Investment
Representation

        

        The Committee may require the Grantee
to furnish to the Corporation, prior to the issuance of any shares of Restricted
Stock, an agreement (in such form as such Committee may specify) in which the
Grantee represents that the shares acquired by him or her are being acquired for
investment and not with a view to the sale or distribution thereof.

        

        5.           Grantee Bound by
Plan

        

        The Grantee hereby acknowledges receipt
of a copy of the Plan and agrees to be bound by all the terms and provisions of
the Plan, as in effect on the date hereof and as it may be amended from time to
time in accordance with its terms, all of which terms and provisions are
incorporated herein by reference.  If there shall be any inconsistency
between the terms and provisions of the Plan, as in effect from time to time,
and those of this Agreement, the terms and provisions of the Plan, as in effect
from time to time, shall control.

        

        
          6.         
 Committee

        

        

        All references herein to the
“Committee” mean the Compensation Committee of the Board of Directors of the
Corporation (or any successor committee designated by the Board of Directors to
administer the Plan).

        

        7.           Section 83(b)
Election

        

        The Grantee acknowledges that an
election under Section 83(b) of the Code  may be available to the
Grantee for Federal income tax purposes and that such election, if desired, must
be made within thirty (30) days of the date of this Agreement. The Grantee
acknowledges that whether to make such election is the responsibility of the
Grantee, not the Corporation, and that the Grantee should consult the Grantee’s
tax advisor with respect to the election and all other tax aspects associated
with this Agreement. The Grantee may make the election as to any or all of the
Restricted Stock.

        

        8.           Withholding of
Taxes

        

        The Corporation may require as a
condition precedent to the issuance of any shares of Restricted Stock, or their
release from the escrow established under Section 2(b), that appropriate
arrangements be made for the withholding of any applicable Federal, state and
local taxes.  Notwithstanding anything herein to the contrary, if the
Grantee does not make a Section 83(b) election with respect to the Restricted
Stock, in the year in which the Restricted Stock vests, the transfer restriction
described in Section 2(a) above shall lapse with respect to the minimum number
of shares necessary to pay the income taxes resulting from the vesting of the
Restricted Stock.

        

        9.           Governing
Law

        

        This Agreement shall be construed and
enforced in accordance with the laws of the Commonwealth of Pennsylvania, other
than any choice of law provisions calling for the application of laws of another
jurisdiction.

         

         

        
 

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        

        10.           Notices

        

        Any notice hereunder to the Corporation
shall be addressed to it at its office, Philadelphia and Reading Avenues,
Boyertown, Pennsylvania 19512, Attention: Corporate Secretary, and
any

        notice
hereunder to Grantee shall be addressed to him or her at the address below,
subject to the right of either party to designate at any time hereafter in
writing some other address.

        

        

        IN WITNESS WHEREOF, National Penn
Bancshares, Inc. has caused this Agreement to

        be
executed and the Grantee has executed this Agreement, both as of the day and
year first above written.

        

        
          	
                  NATIONAL
      PENN BANCSHARES, INC.

                	
                  GRANTEE

                
	 
      	 
      
	 
      	 
      
	By: 	
                  /s/ J. Ralph Borneman,
      Jr.

                	
                  /s/ Scott V. Fainor

                
	 
      	
                  (Signature)

                
	 	
                  J.
      Ralph Borneman, Jr.

                	 
      
	 	
                  Compensation
      Committee Chair

                	 
      
	 
      	
                  Scott V.
Fainor

                

        

        

        

5

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