Document:

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                                                                   Exhibit 10.27

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                    [FORM OF LONG TERM INCENTIVE STOCK PLAN]

                         PACKAGING DYNAMICS CORPORATION

                       2002 LONG TERM INCENTIVE STOCK PLAN

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                               TABLE OF CONTENTS

Section 1.  Purpose .....................................................   1
            -------

Section 2.  Definitions .................................................   1
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Section 3.  Administration ..............................................   4
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Section 4.  Shares Available for Awards .................................   5
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Section 5.  Eligibility .................................................   6
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Section 6.  Options .....................................................   6
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Section 7.  Stock Appreciation Rights ...................................   7
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Section 8.  Restricted Stock and Restricted Stock Units .................   8
            -------------------------------------------

Section 9.  Performance Awards ..........................................   9
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Section 10.  Other Stock-Based Awards ...................................   9
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Section 11.  Amendment and Termination ..................................  10
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Section 12.  General Provisions .........................................  10
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Section 13.  Term of the Plan ...........................................  14
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                         PACKAGING DYNAMICS CORPORATION

                       2002 Long Term Incentive Stock Plan

          Section 1. Purpose. The purposes of this Packaging Dynamics
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Corporation 2002 Long Term Incentive Stock Plan are to promote the interests of
Packaging Dynamics Corporation and its stockholders by (i) attracting and
retaining exceptional officers, employee-directors and other key employees,
non-employee directors and consultants of the Company and its Affiliates, as
defined below; (ii) motivating such individuals by means of performance-related
incentives to achieve longer-range performance goals; and (iii) enabling such
individuals to participate in the long-term growth and financial success of the
Company.

          Section 2. Definitions. As used in the Plan, the following terms shall
                     -----------
have the meanings set forth below:

          "Affiliate" shall mean (i) any entity that, directly or indirectly, is
controlled by or controls the Company and (ii) any entity in which the Company
has a significant equity interest, in either case as determined by the
Committee.

          "Award" shall mean any Option, Stock Appreciation Right, Restricted
Stock Award, Restricted Stock Unit Award, Performance Award or Other Stock-Based
Award granted under this Plan.

          "Award Agreement" shall mean any written agreement, contract, or other
instrument or document evidencing any Award, which may, but need not, be
executed or acknowledged by the Participant.

          "Board" shall mean the Board of Directors of the Company.

          "Code" shall mean the Internal Revenue Code of 1986, as amended from
time-to-time.

          "Committee" shall mean (i) a committee of the Board designated by the
Board to administer the Plan and composed of not fewer than two directors, each
of whom is intended to be a "non-employee director" (within the meaning of Rule
16b-3) and an "outside director" (within the meaning of Code section 162(m)),
respectively, or (ii) if at any time such a committee has not been so designated
by the Board, the Board.

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                  "Company" shall mean Packaging Dynamics Corporation together
with any successor thereto.

                  "Fair Market Value" shall mean, as of any given date: (i) if
the Shares are publicly traded, the closing sale price of a Share on the date
preceding such given date as reported in the Western Edition of the Wall Street
                                                                    -----------
Journal or (ii) if the Shares are not publicly traded, the fair market value of
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a Share as otherwise determined by the Committee in its sole discretion.

                  "Incentive Stock Option" shall mean a right to purchase Shares
from the Company that is granted under Section 6 of the Plan and that is
intended to meet the requirements of Section 422 of the Code or any successor
provision thereto.

                  "Non-Qualified Stock Option" shall mean a right to purchase
Shares from the Company that is granted under Section 6 of the Plan and that is
not intended to be an Incentive Stock Option.

                  "Option" shall mean an Incentive Stock Option or a
Non-Qualified Stock Option.

                  "Other Stock-Based Award" shall mean any right granted under
Section 10 of the Plan.

                  "Parent" shall mean any corporation (other than the Company)
in an unbroken chain of corporations ending with the Company, if each of the
corporations in the chain (other than the Company) owns stock possessing 50% or
more of the combined voting power of all classes of stock in one of the other
corporations in the chain.

                  "Participant" shall mean any officer, employee-director or
other key employee, non-employee director or consultant of the Company or its
Affiliates eligible for an Award under Section 5 and selected by the Committee
to receive an Award under the Plan.

                  "Performance Award" shall mean any right granted under Section
9 of the Plan.

                  "Person" shall mean any individual, corporation, partnership,
association, joint-stock company, trust, unincorporated organization, government
or political subdivision thereof or other entity.

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                  "Plan" shall mean this Packaging Dynamics Corporation 2002
Long Term Incentive Stock Plan.

                  "Restricted Stock" shall mean any Share granted under Section
8 of the Plan.

                  "Restricted Stock Unit" shall mean any unit granted under
Section 8 of the Plan.

                  "Rule 16b-3" shall mean Rule 16b-3 as promulgated and
interpreted by the SEC under the Exchange Act, or any successor rule or
regulation thereto as in effect from time-to-time.

                  "SEC" shall mean the Securities and Exchange Commission or any
successor thereto and shall include the Staff thereof.

                  "Shares" shall mean the common shares of the Company, $.01 par
value, or such other securities of the Company (i) into which such common shares
shall be changed by reason of a recapitalization, merger, consolidation,
split-up, combination, exchange of shares or other similar transaction, or (ii)
as may be determined by the Committee pursuant to Section 4(b).

                  "Stock Appreciation Right" shall mean any right granted under
Section 7 of the Plan.

                  "Subsidiary" shall mean any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company, if
each of the corporations (other than the last corporation) in the unbroken chain
owns stock possessing 50% or more of the total combined voting power of all
classes of stock in one of the other corporations in the chain.

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          Section 3. Administration.
                     --------------

                (a)  The Plan shall be administered by the Committee. Subject to
the terms of the Plan and applicable law, the Committee's powers shall include,
without limitation, the authority to: (i) designate Participants; (ii) determine
the type or types of Awards to be granted to a Participant; (iii) determine the
number of Shares, to be covered by or, with respect to which payments, rights,
or other matters are to be calculated in connection with, Awards; (iv) determine
the terms and conditions of any Award; (v) determine, whether, to what extent,
and under what circumstances Awards may be settled or exercised in cash, Shares,
other securities, other Awards or other property, or canceled, forfeited, or
suspended and the method or methods by which Awards may be settled, exercised,
canceled, forfeited, or suspended; (vi) accelerate the vesting or lapse of
restrictions of any outstanding Award, based in each case on such considerations
as the Administrator in its sole discretion determines; (vii) determine whether,
to what extent, and under what circumstances cash, Shares, other securities,
other Awards, other property, and other amounts payable with respect to an Award
shall be deferred either automatically or at the election of the holder thereof
or of the Committee; (viii) interpret and administer the Plan and any instrument
or agreement relating to, or Award made under, the Plan; (ix) establish, amend,
suspend, or waive such rules and regulations and appoint such agents as it shall
deem appropriate for the proper administration of the Plan; and (x) make any
other determination and take any other action that the Committee deems necessary
or desirable for the administration of the Plan.

                (b)  Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with
respect to the Plan or any Award shall be within the sole discretion of the
Committee, may be made at any time and shall be final, conclusive, and binding
upon all Persons, including the Company, any Affiliate, any Participant, any
holder or beneficiary of any Award, and any shareholder.

                (c)  The mere fact that a Committee member shall fail to qualify
as a "non-employee" or "outside director" within the meaning of Rule 16b-3 and
Code section 162(m), respectively, shall not invalidate any Award made by the
Committee, which Award is otherwise validly made under the Plan.

                (d)  No member of the Committee shall be liable for any action
or determination made in good faith with respect to the Plan or any Award
hereunder.

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          Section 4. Shares Available for Awards
                     ---------------------------

                (a)  Shares Available. Subject to adjustment as provided in
                     ----------------
Section 4(b), the aggregate number of Shares shall be 1,400,000 and the maximum
number of Shares with respect to which Awards may be granted to any Participant
in any calendar year shall not exceed 200,000. If, after the effective date of
the Plan, any Shares covered by an Award granted under the Plan, or to which
such an Award relates, are forfeited, or if an Award has expired, terminated or
been canceled for any reason whatsoever (other than by reason of exercise or
vesting) and in either such case a Participant has received no benefits of
ownership with respect to the forfeited Shares or the Shares to which such
expired, terminated or canceled Award relates (other than voting rights and
dividends that were forfeited in connection with such forfeiture, expiration,
termination or cancellation), then the Shares covered by such Award shall again
be, or shall become, Shares with respect to which Awards may be granted
hereunder.

                (b)  Adjustments. In the event that the Committee determines
                     -----------
that any dividend or other distribution (whether in the form of cash, Shares,
other securities, or other property), recapitalization, stock split, reverse
stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company, or other similar corporate transaction or event
affects the Shares such that an adjustment is determined by the Committee in its
discretion to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan,
then the Committee shall, in such manner as it may deem equitable, adjust any or
all of (i) the number of Shares or other securities of the Company (or number
and kind of other securities or property) with respect to which Awards may be
granted, (ii) the maximum number of Shares with respect to which Options and
Stock Appreciation Rights may be granted to any Participant in any calendar
year, (iii) the number of Shares or other securities of the Company (or number
and kind of other securities or property) subject to outstanding Awards, and
(iv) the grant or exercise price with respect to any Award or, if deemed
appropriate, make provision for the early cancellation, expiration or
termination of such Award with or without consideration or consent; provided,
however, that in the case of cancellation without consideration or consent, the
Participant is given an appropriate period of time to exercise such Award prior
to such cancellation (to the extent such Award was otherwise exercisable); and
provided further, that in each case, with respect to Awards of Incentive Stock
Options, no such adjustment shall be authorized to the extent that such
authority would cause the Plan to violate Section 422(b)(1) of the Code, as from
time-to-time amended.

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                (c)  Sources of Shares Deliverable Under Awards. Any Shares
                     ------------------------------------------
delivered pursuant to an Award may consist, in whole or in part, of authorized
and unissued Shares or of treasury Shares.

          Section 5. Eligibility. Any officer, director employee, advisor or
                     -----------
consultant to the Company or any of its Affiliates shall be eligible to be
designated a Participant.

          Section 6. Options.
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                (a)  Grant. Subject to the provisions of the Plan, the Committee
                     -----
shall have sole and complete authority to determine the Participants to whom
Options shall be granted, the number of Shares to be covered by each Option and
the conditions and limitations applicable to the exercise of the Option. The
Committee shall have the authority to grant Incentive Stock Options, or to grant
Non-Qualified Stock Options, or to grant both types of Options. In the case of
Incentive Stock Options, the terms and conditions of such grants shall be
subject to and comply with such rules as may be prescribed by Section 422 of the
Code, as amended from time-to-time, and any regulations implementing such
statute. All Options when granted under the Plan are intended to be
Non-Qualified Stock Options, unless the applicable Award Agreement expressly
states that the Option is intended to be an Incentive Stock Option, and if for
any reason such Option (or any portion thereof) shall be regarded as a
Non-Qualified Stock Option, then, to the extent of such non-qualification, such
Option (or portion thereof) shall be regarded as a Non-Qualified Stock Option
appropriately granted under the Plan); provided that such Option (or portion
thereof) otherwise complies with the Plan's requirements relating to
Non-Qualified Stock Options.

                (b) Exercise Price. The Committee, in its sole discretion, shall
                    --------------
establish the exercise price per Share at the time each Option is granted, which
exercise price shall be set forth in the applicable Award Agreement; provided
that the exercise price of any Incentive Stock Option shall not be less than
100% of the Fair Market Value of the Share on such date. If a Participant owns
or is deemed to own (by reason of the attribution rules applicable under Section
424(d) of the Code) more than 10% of the combined voting power of all classes of
stock of the Company or of any Parent or Subsidiary and an Incentive Stock
Option is granted to such Participant, the exercise price of such Incentive
Stock Option shall be no less than 110% of the Fair Market Value of the Share on
the date such Incentive Stock Option is granted.

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                 (c) Option Term. The term of each Option shall be fixed by the
                     -----------
Committee, but no Option shall be exercisable more than ten years after the date
such Option is granted; provided, however, that if an employee owns or is deemed
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to own (by reason of the attribution rules of Section 424(d) of the Code) more
than 10% of the combined voting power of all classes of stock of the Company or
of any Parent or Subsidiary and an Incentive Stock Option is granted to such
employee, the term of such Incentive Stock Option (to the extent required by the
Code at the time of grant) shall be no more than five years from the date of
grant.

                 (d) Exercise. Each Option shall be exercisable at such times
                     --------
and subject to such terms and conditions as the Committee may, in its sole
discretion, specify in the applicable Award Agreement or thereafter. The
Committee may impose such conditions with respect to the exercise of Options,
including, without limitation, any relating to the application of federal or
state securities laws, as it may deem necessary or advisable.

                 (e) Payment. No Shares shall be delivered pursuant to any
                     -------
exercise of an Option until payment in full of the aggregate exercise price
therefor is received by the Company. Such payment may be made in cash, or its
equivalent, if and to the extent permitted by the Committee, by exchanging
Shares owned by the optionee (which are not the subject of any pledge or other
security interest and which have been owned by such optionee for at least six
months), by means of a cashless exercise procedure approved by the Committee, or
by a combination of the foregoing; provided that the combined value of all cash
and cash equivalents and the Fair Market Value of any such Shares so tendered to
the Company as of the date of such tender is at least equal to such aggregate
exercise price.

          Section 7. Stock Appreciation Rights.
                     -------------------------

                 (a) Grant. Subject to the provisions of the Plan, the Committee
                     -----
shall have sole and complete authority to determine the Participants to whom
Stock Appreciation Rights shall be granted, the number of Shares to be covered
by each Stock Appreciation Right Award, the grant price thereof and the
conditions and limitations applicable to the exercise thereof. Stock
Appreciation Rights may be granted in tandem with another Award, in addition to
another Award, or freestanding and unrelated to another Award. Stock
Appreciation Rights granted in tandem with or in addition to an Award may be
granted either at the same time as the Award or at a later time. Stock
Appreciation Rights shall not be exercisable earlier than six months after the
date of grant.

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                 (b) Exercise and Payment. A Stock Appreciation Right shall
                     --------------------
entitle the Participant to receive an amount equal to the excess of the Fair
Market Value of a Share on the date of exercise of the Stock Appreciation Right
over the grant price thereof. The Committee shall determine whether a Stock
Appreciation Right shall be settled in cash, Shares or a combination of cash and
Shares.

                 (c) Other Terms and Conditions. Subject to the terms of the
                     --------------------------
Plan and any applicable Award Agreement, the Committee shall determine, at or
after the grant of a Stock Appreciation Right, the term, methods of exercise,
methods and form of settlement, and any other terms and conditions of any Stock
Appreciation Right. Any such determination by the Committee may be changed by
the Committee from time-to-time and may govern the exercise of Stock
Appreciation Rights granted or exercised prior to such determination as well as
Stock Appreciation Rights granted or exercised thereafter. The Committee may
impose such conditions or restrictions on the exercise of any Stock Appreciation
Right as it shall deem appropriate.

          Section 8. Restricted Stock and Restricted Stock Units.
                     -------------------------------------------

                 (a) Grant. Subject to the provisions of the Plan, the Committee
                     -----
shall have sole and complete authority to determine the Participants to whom
Shares of Restricted Stock and Restricted Stock Units shall be granted, the
number of Shares of Restricted Stock and/or the number of Restricted Stock Units
to be granted to each Participant, the duration of the period during which, and
the conditions under which, the Restricted Stock and Restricted Stock Units may
be forfeited to the Company, and the other terms and conditions of such Awards.

                 (b) Transfer Restrictions. Shares of Restricted Stock and
                     ---------------------
Restricted Stock Units may not be sold, assigned, transferred, pledged or
otherwise encumbered, except, in the case of Restricted Stock, as provided in
the Plan or the applicable Award Agreements. Certificates issued in respect of
Shares of Restricted Stock shall be registered in the name of the Participant
and deposited by such Participant, together with a stock power endorsed in
blank, with the Company. Upon the lapse of the restrictions applicable to such
Shares of Restricted Stock, the Company shall deliver such certificates to the
Participant or the Participant's legal representative.

                 (c) Payment, Dividends and Voting Rights. Each Restricted Stock
                     ------------------------------------
Unit shall have a value equal to the Fair Market Value of a Share. Restricted
Stock Units shall be paid in cash, Shares, other securities or other property,
as determined in the sole discretion of the Committee, upon the lapse of the
restrictions

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applicable thereto, or otherwise in accordance with the applicable Award
Agreement. Dividends paid on any shares of Restricted Stock may be paid directly
to the Participant, or may be reinvested in additional Shares of Restricted
Stock or in additional Restricted Stock Units, as determined by the Committee in
its sole discretion. Unless otherwise determined by the Committee, Participants
who have been granted shares of Restricted Stock may exercise full voting rights
with respect to those Shares.

          Section 9.  Performance Awards.
                      ------------------

                      (a) Grant. The Committee shall have sole and complete
                          -----
authority to determine the Participants who shall receive a "Performance Award,"
which shall consist of a right which is (i) denominated in cash or Shares, (ii)
valued, as determined by the Committee, in accordance with the achievement of
such performance goals during such performance periods as the Committee shall
establish, and (iii) payable at such time and in such form as the Committee
shall determine.

                      (b) Terms and Conditions. Subject to the terms of the Plan
                          --------------------
and any applicable Award Agreement, the Committee shall determine the
performance goals to be achieved during any performance period, the length of
any performance period, the amount of any Performance Award and the amount and
kind of any payment or transfer to be made pursuant to any Performance Award.

                      (c) Payment of Performance Awards. Performance Awards may
                          -----------------------------
be paid in a lump sum or in installments following the close of the performance
period or, in accordance with procedures established by the Committee, on a
deferred basis.

          Section 10. Other Stock-Based Awards.
                      ------------------------

                      (a) General. The Committee shall have authority to grant
                          -------
to Participants an "Other Stock-Based Award," which shall consist of any right
which is (i) not an Award described in Sections 6 through 9 above and (ii) an
Award of Shares or an Award denominated or payable in, valued in whole or in
part by reference to, or otherwise based on or related to, Shares (including,
without limitation, securities convertible into Shares), as deemed by the
Committee to be consistent with the purposes of the Plan; provided that any such
rights must comply, to the extent deemed desirable by the Committee, with Rule
16b-3 and applicable law. Subject to the terms of the Plan and any applicable
Award Agreement, the Committee shall determine the terms and conditions of any
such Other Stock-Based

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Award, including the price, if any, at which securities may be purchased
pursuant to any Other Stock-Based Award granted under this Plan.

                       (b) Dividend Equivalents. In the sole and complete
                           --------------------
discretion of the Committee, an Award, whether made as an Other Stock-Based
Award under this Section 10 or as an Award granted pursuant to Sections 6
through 9 hereof, may provide the Participant with dividends or dividend
equivalents, payable in cash, Shares, other securities or other property on a
current or deferred basis.

           Section 11. Amendment and Termination.
                       -------------------------

                       (a) Amendments to the Plan. The Board may amend, alter,
                           ----------------------
suspend, discontinue, or terminate the Plan or any portion thereof at any time;
provided that no such amendment, alteration, suspension, discontinuation or
termination shall be made without shareholder approval if such approval is
necessary to comply with any tax, securities or regulatory law or requirement
with which the Board intends the Plan to comply; and provided further, that any
such amendment, alteration, suspension, discontinuation, or termination that
would impair the rights of any Participant or any holder or beneficiary of any
Award theretofore granted shall not to that extent be effective without the
consent of the affected Participant, holder or beneficiary. Notwithstanding
anything to the contrary herein, the Committee may amend the Plan in such manner
as may be necessary so as to have the Plan conform with local rules and
regulations in any jurisdiction outside the United States.

                       (b) Certain Adjustments of Awards Upon the Occurrence of
                           ----------------------------------------------------
Certain Unusual or Nonrecurring Events. In recognition of (i) unusual or
--------------------------------------
nonrecurring events (including, without limitation, the events described in
Section 4(b) hereof) affecting the Company or any Affiliate, (ii) changes in
applicable laws, regulations, or accounting principles, or (iii) any other
unusual or nonrecurring event as determined by the Committee, the Committee is
hereby authorized to make certain adjustments to the exercisability and vesting
of Awards, including the acceleration of vesting or exercisability or lapse of
restrictions otherwise applicable to such Awards.

          Section 12.  General Provisions.
                       ------------------

                       (a) Non-Transferability. Each Award, and each right under
                           -------------------
any Award, shall be exercisable only by the Participant during the Participant's
lifetime, or, if permissible under applicable law, by the Participant's guardian
or legal representative or by a transferee receiving such Award pursuant to a
qualified domestic relations order ("QDRO"), as determined by the Committee. No
Award that constitutes a "derivative security" for purposes of Section 16 of the
Exchange

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Act, may be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by a Participant otherwise than by will or by the laws
of descent and distribution or pursuant to a QDRO, and any such purported
assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall
be void and unenforceable against the Company or any Affiliates; provided that
the designation of a beneficiary shall not constitute an assignment, alienation,
pledge, attachment, sale, transfer or encumbrance. With respect to Non-Qualified
Stock Options, upon the approval of the Committee and subject to the policies
and procedures set forth by the Committee, the Participant shall be permitted to
transfer one or more Non-Qualified Stock Options to a trust controlled by the
Participant during the Participant's lifetime for estate planning purposes.

                       (b) No Rights to Awards. No Participant or other Person
                           -------------------
shall have any claim to be granted any Award, and there is no obligation for
uniformity of treatment of Participants, or holders or beneficiaries of Awards.
The terms and conditions of Awards and the Committee's determinations and
interpretations with respect thereto need not be the same with respect to each
Participant (whether or not such Participants are similarly situated).

                       (c) Share Certificates. All certificates for Shares or
                           ------------------
other securities of the Company or any Affiliates delivered under the Plan
pursuant to any Award or the exercise thereof shall be subject to such stop
transfer orders and other restrictions as the Committee may deem advisable under
the Plan or the rules, regulations, and other requirements of the Securities and
Exchange Commission, any stock exchange upon which such Shares or other
securities are then listed, and any applicable Federal or state laws, and the
Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions.

                       (d) Delegation. Subject to the terms of the Plan, the
                           ----------
provisions of this Agreement and applicable law, the Committee may delegate to
one or more officers or managers of the Company or any Affiliate, or to a
committee of such officers or managers, the authority, subject to such terms and
limitations as the Committee shall determine, to grant Awards to, or to cancel,
modify or waive rights with respect to, or to alter, discontinue, suspend, or
terminate Awards held by, Participants who are not officers or directors of the
Company for purposes of Section 16 of the Exchange Act, or any successor section
thereto, or who are otherwise not subject to such Section.

                       (e) Withholding. A Participant may be required to pay to
                           -----------
the Company or any Affiliate and the Company or any Affiliate shall have the
right and is hereby authorized to withhold from any Award (as described below),
from any

                                       11

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payment due or transfer made under any Award or under the Plan or from any
compensation or other amount owing to a Participant the amount (in cash, shares,
other securities, other Awards or other property) of any applicable withholding
taxes in respect of an Award, its exercise, or any payment or transfer under an
Award or under the Plan and to take such other action as may be necessary in the
opinion of the Company to satisfy all obligations for the payment of such taxes.
With the approval of the Committee, a Participant may satisfy the foregoing
requirement by electing to have the Company withhold from delivery Shares or by
delivering already owned unrestricted Shares, in each case, having a value equal
to the minimum amount of tax required to be withheld. The Committee may provide
for additional cash payments to holders of Awards to defray or offset any tax
arising from the grant, vesting, exercise or payments of any Award.

                       (f) Award Agreements. Each Award hereunder shall be
                           ----------------
evidenced by an Award Agreement which shall be delivered to the Participant and
shall specify the terms and conditions of the Award and any rules applicable
thereto, including, but not limited, to the effect on such Award of the death,
disability or termination of employment or service of a Participant and the
effect, if any, of such other events as may be determined by the Committee.

                       (g) No Limit on Other Compensation Arrangements. Nothing
                           -------------------------------------------
contained in the Plan shall prevent the Company or any Affiliate from adopting
or continuing in effect other compensation arrangements, which may, but need
not, provide for the grant of options, restricted stock, Shares and other types
of Awards provided for hereunder (subject to shareholder approval if such
approval is required), and such arrangements may be either generally applicable
or applicable only in specific cases.

                       (h) No Right to Employment. The grant of an Award shall
                           ----------------------
not be construed as giving a Participant the right to be retained in the employ
of, or in any consulting relationship to, the Company or any Affiliate. Further,
the Company or an Affiliate may at any time dismiss a Participant from
employment or discontinue any consulting relationship, free from any liability
or any claim under the Plan, unless otherwise expressly provided in the Plan or
in any Award Agreement.

                       (i) No Rights as Stockholder. Subject to the provisions
                           ------------------------
of the Plan and the Applicable Award, no Participant or holder or beneficiary of
any Award shall have any rights as a stockholder with respect to any Shares to
be distributed under the Plan until he or she has become the holder of such
Shares. Notwithstanding the foregoing, in connection with each grant of
Restricted Stock

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hereunder, the applicable Award shall specify if and to what extent the
Participant shall not be entitled to the rights of a stockholder in respect of
such Restricted Stock.

                       (j) Governing Law. The validity, construction, and effect
                           -------------
of the Plan and any rules and regulations relating to the Plan and any Award
Agreement shall be determined in accordance with the laws of the State of
Delaware without regard to principles of conflicts of law.

                       (k) Severability. If any provision of the Plan or any
                           ------------
Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform the applicable laws, or if it cannot be
construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall be
stricken as to such jurisdiction, Person or Award and the remainder of the Plan
and any such Award shall remain in full force and effect.

                       (l) Other Laws. The Committee may refuse to issue or
                           ----------
transfer any Shares or other consideration under an Award if, acting in its sole
discretion, it determines that the issuance or transfer of such Shares or such
other consideration might violate any applicable law or regulation or entitle
the Company to recover the same under Section 16(b) of the Exchange Act, and any
payment tendered to the Company by a Participant, other holder or beneficiary in
connection with the exercise of such Award shall be promptly refunded to the
relevant Participant, holder or beneficiary. Without limiting the generality of
the foregoing, no Award granted hereunder shall be construed as an offer to sell
securities of the Company, and no such offer shall be outstanding, unless and
until the Committee in its sole discretion has determined that any such offer,
if made would be in compliance with all applicable requirements of the U.S.
federal securities laws.

                       (m) No Trust or Fund Created. Neither the Plan nor any
                           ------------------------
Award shall create or be construed to create a trust or separate fund of any
kind or a fiduciary relationship between the Company or any Affiliate and a
Participant or any other Person. To the extent that any Person acquires a right
to receive payments from the Company or any Affiliate pursuant to an Award, such
right shall be no greater than the right of any unsecured general creditor of
the Company or any Affiliate.

                       (n) No Fractional Shares. No fractional Shares shall be
                           --------------------
issued or delivered pursuant to the Plan or any Award, and the Committee shall

                                       13

<PAGE>

determine whether cash, other securities, or other property shall be paid or
transferred in lieu of any fractional Shares or whether such fractional Shares
or any rights thereto shall be canceled, terminated, or otherwise eliminated.

                       (o) Headings. Headings are given to the Sections and
                           --------
subsections of the Plan solely as a convenience to facilitate reference. Such
headings shall not be deemed in any way material or relevant to the construction
or interpretation of the Plan or any provision thereof.

           Section 13. Term of the Plan.
                       ----------------

                       (a) Effective Date. The Plan shall be effective as of
                           --------------
the effective date of a registration statement of the Company filed on Form S-8
under the Securities Act of 1933, as amended.

                       (b) Expiration Date. No Award shall be granted under the
                           ---------------
Plan after ten years from the Effective Date. Unless otherwise expressly
provided in the Plan or in an applicable Award Agreement, any Award granted
hereunder may, and the authority of the Board or the Committee to amend, alter,
adjust, suspend, discontinue, or terminate any such Award or to waive any
conditions or rights under any such Award shall, continue after ten years
following the Effective Date.

                                       14<PAGE>

                                                                   Exhibit 10.30

                  [FORM OF NONQUALIFIED STOCK OPTION AGREEMENT]

                         PACKAGING DYNAMICS CORPORATION
                       2002 LONG TERM INCENTIVE STOCK PLAN
                      NONQUALIFIED STOCK OPTION AGREEMENT

          THIS AGREEMENT (the "Agreement"), made effective as of the __ day of
June, 2002 (hereinafter called the "Date of Grant"), between PACKAGING DYNAMICS
CORPORATION, a Delaware corporation (hereinafter called the "Company"), and the
employee named on the signature page hereto (hereinafter called the "Optionee"):

                                R E C I T A L S:
                                ---------------

          WHEREAS, the Company has adopted the Packaging Dynamics Corporation
2002 Long Term Incentive Stock Plan (the "Plan"), which Plan is incorporated
herein by reference and made a part of the Agreement. Capitalized terms not
otherwise defined herein shall have the same meanings as set forth in the Plan;

          WHEREAS, the Committee has determined that it would be in the best
interests of the Company and its stockholders to grant the option provided for
herein (the "Option") to the Optionee pursuant to the Plan and the terms set
forth herein; and

          WHEREAS, the Optionee hereby waives any and all benefits to which he
may be entitled under the Packaging Holdings L.L.C. 2001 Long-Term Incentive
Plan (the "2001 LTIP") in consideration for the Option.

          NOW THEREFORE, in consideration of the waiver by the Optionee of any
and all benefits under the 2001 LTIP and in consideration of the mutual
covenants set forth hereinafter, the parties hereto agree as follows:

          1. Waiver of 2001 LTIP Benefits and Grant of the Option.

         (a) The Optionee hereby waives any and all benefits to which he may be
entitled under the 2001 LTIP in consideration for the Option granted in Section
1(b) below.

         (b) In consideration of the Optionee's waiver in Section 1(a) above and
in consideration of the mutual covenants set forth herein, the Company hereby
grants to the Optionee an Option to purchase, on the terms and conditions
hereinafter set forth, the number of Shares set forth on the last page hereof,
at an exercise price equal to the dollar amount per Share set forth on the last
page hereof (the "Exercise Price"). The Option is intended to be a nonqualified
stock option, and is not intended to be treated as an Incentive Stock Option,
which complies with Section 422 of the Internal Revenue Code of 1986, as amended
(the "Code").

          2. Vesting.

<PAGE>

             (a) The Option is fully vested and earned as of the date hereof.

             (b) Notwithstanding any other provision of the Agreement to the
contrary, in connection with any merger, consolidation, change in control or
similar corporate transaction or reorganization as determined by the Committee,
(a "Corporate Transaction") the Committee may in its sole discretion:

                 (i) Provide that any acquiring or successor corporation will
assume the Option, to the extent then outstanding, or substitute an equivalent
option meeting the requirements of Section 424(a) of the Code for the
outstanding portion of the Option; or

                 (ii) Provide for a cash payment to the Optionee equal to the
excess, if any, of the Fair Market Value of the number of Shares covered by the
Option then held by the Optionee over the aggregate Exercise Price of such
Option.

             The Committee shall have no obligation to take any such action in
connection with a Corporate Transaction.

          3. Exercise of Option.

             (a) Period of Exercise. Subject to the provisions of the Plan and
of this Agreement, the Optionee or any permitted transferee pursuant to Section
7 below ("Permitted Transferee") may exercise all or any part of the Option then
held by the Optionee or Permitted Transferee no sooner than the third (3rd)
anniversary of the Date of Grant (the "Third Anniversary"); provided that
notwithstanding the foregoing, in the event of a Sale Event (as defined in
Section 10(a) below) such period may begin no sooner than ninety (90) days
following the Third Anniversary. In addition, the Optionee or Permitted
Transferee may exercise all or any part of the Option then held by the Optionee
or Permitted Transferee no later than the end of the term of the Option, such
term ending upon the earliest to occur of:

                 (i) the tenth anniversary of the Date of Grant; or

                 (ii) the six (6) month anniversary of the date of the Third
Anniversary in the event of a Sale Event (as defined in Section 10(a) below);

                 (iii) in the event of the Optionee's termination of employment
with the Company or any of its Affiliates after the Third Anniversary for any
reason, including, without limitation, termination for cause or not for cause,
termination for good reason or not for good reason, retirement, death or
disability, three (3) months after the date of such termination; or

                 (iv) if determined by the Committee in its sole discretion,
the consummation of a Corporate Transaction; provided that the Committee shall
have notified the Optionee at least fifteen (15) days in advance of the

                                      2

<PAGE>

consummation of a Corporate Transaction of such a determination.

          (b) Method of Exercise.

              (i) Subject to Section 3(a), any portion of the Option then held
by the Optionee or Permitted Transferee may be exercised by delivering to the
Company at its principal office written notice of intent to so exercise;
provided that, the Option may be exercised with respect to whole Shares only.
Such notice shall specify the number of Shares for which the Option is being
exercised and shall be accompanied by payment in full of the Exercise Price. The
payment of the Exercise Price shall be made in cash or its equivalent, or, if
and to the extent permitted by the Committee, by exchanging Shares owned by the
Optionee (which are not the subject of any pledge or other security interest and
which have been owned by the Optionee for at least six (6) months), or by a
combination of the foregoing, provided that the combined value of all cash and
cash equivalents and the Fair Market Value of any such pre-owned Shares so
tendered to the Company as of the date of such tender is at least equal to the
aggregate Exercise Price.

              (ii) Notwithstanding any other provision of the Plan or the
Agreement to the contrary, the Option may not be exercised prior to the
completion of any registration or qualification of the Option or the Shares
under applicable state and federal securities or other laws, or under any ruling
or regulation of any governmental body or national securities exchange that the
Committee shall in its sole discretion determine to be necessary or advisable.

              (iii) Upon the Company's determination that the Option has been
validly exercised as to any of the Shares, the Company shall issue certificates
in the Optionee's name, or, if applicable, in the Permitted Transferee's name,
for such Shares. However, the Company shall not be liable to the Optionee or, if
applicable, to the Permitted Transferee, for damages relating to any delays in
issuing such certificates to him or her, any loss of the certificates, or any
mistakes or errors in the issuance of the certificates or in the certificates
themselves.

              (iv) In the event of the Optionee's death, the portion of the
Option then held by the Optionee shall remain exercisable by the Optionee's
executor or administrator, or the person or persons to whom the Optionee's
rights under the Agreement shall pass by will, or by the laws of descent and
distribution as the case may be, to the extent such Option was exercisable by
the Optionee at the time of such death as set forth in Section 3(a) above.

                                       3

<PAGE>

Any heir or legatee of the Optionee shall take rights herein granted subject to
the terms and conditions hereof.

     4. No Right to Continued Employment. Neither the Plan nor the Agreement
shall be construed as giving the Optionee the right to be retained in the employ
of, or in any consulting relationship to, the Company or any Affiliate. Further,
the Company or an Affiliate may at any time dismiss the Optionee or discontinue
any consulting relationship, free from any liability or any claim under the Plan
or the Agreement, except as otherwise expressly provided herein.

     5. Rights as a Stockholder. Neither the Optionee nor any successor in
interest shall have rights as a stockholder of the Company with respect to any
Shares subject to an Option granted hereunder until the date of issuance of a
certificate for such Shares.

     6. Legend on Certificates. The certificates representing the Shares
purchased by exercise of the Option shall be subject to such stop transfer
orders and other restrictions as the Committee may deem advisable under the Plan
or the rules, regulations, and other requirements of the Securities and Exchange
Commission, any stock exchange upon which such Shares are listed, and any
applicable federal or state laws, and the Committee may cause a legend or
legends to be put on any such certificates to make appropriate reference to such
restrictions.

     7. Transferability. The Option may not be assigned, alienated, pledged,
attached, sold or otherwise transferred or encumbered by the Optionee other than
by will or by the laws of descent and distribution or pursuant to a qualified
domestic relations order ("QDRO"), and any such purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance shall be void and
unenforceable against the Company or any Affiliate; provided that the
designation of a beneficiary shall not constitute an assignment, alienation,
pledge, attachment, sale, transfer or encumbrance. No such permitted transfer of
the Option to any Permitted Transferee of the Optionee shall be effective to
bind the Company unless the Committee shall have been furnished with written
notice thereof and a copy of such evidence as the Committee may deem necessary
to establish the validity of the transfer and the acceptance by the transferee
or transferees of the terms and conditions hereof. During the Optionee's
lifetime, the Option is exercisable only by the Optionee or by his or her legal
representative or as otherwise provided by a QDRO.

     8. Withholding. The Optionee agrees to make appropriate arrangements with
the Company for satisfaction

                                       4

<PAGE>

of any applicable federal, state or local income tax withholding requirements or
like requirements, including the payment to the Company at the time of exercise
of, or other settlement in respect of, the Option of all such taxes and
requirements and the Company shall be authorized to take such action as may be
necessary in the opinion of the Company's counsel (including, without
limitation, withholding amounts from any compensation or other amount owing from
the Company to the Optionee) to satisfy all obligations for the payment of such
taxes.

     9.  Securities Laws. Upon the acquisition of any Shares pursuant to the
exercise of the Option, the Optionee will make or enter into such written
representations, warranties and agreements as the Committee may
reasonably request in order to comply with applicable securities laws or with
the Agreement.

     10.  Right of Company to Repurchase Option Upon Employment Termination.

        (a)  Sale Event.  In the event of the termination of an Optionee's
employment with the Company or any of its Affiliates prior to the Third
Anniversary, for any reason, including, without limitation, termination for
cause or not for cause, termination for good reason or not for good reason,
retirement, death or disability (such termination being referred to herein as a
"Sale Event"), the Company shall have the right (but not the obligation) at any
time thereafter up to and including the ninetieth (90th) day after the date of
the Third Anniversary, to repurchase all or a portion of the percentage of the
Option as determined in accordance with Section 10(c) below held by such
Optionee (and any Permitted Transferee) as of the date of the repurchase
("Repurchase Date"). Such right is exercisable by written notice (a "Repurchase
Notice") delivered to such Optionee (or, if applicable, Permitted Transferee).
The Repurchase Notice shall state the percentage of Option, if any, that the
Company elects to repurchase, the per share purchase price and the Repurchase
Date. The failure of the Company to deliver a Purchase Notice and effect a
repurchase on or before the above-described ninetieth (90th) day shall operate
as a waiver of the Company's rights under this Section 10(a).

     (b)  Purchase Price for Option.  The per share purchase price of any Option
repurchased pursuant to Section 10(a) above shall be equal to the lesser of (x)
the excess, if any, of the Fair Market Value on the Date of Grant over the
Exercise Price, and (y) the excess, if any, of the average of the Fair Market
Value during the sixty (60) days immediately preceding the date of the Sale
Event

                                       5

<PAGE>

 over the Exercise Price.

     (c)  Portion of Option Available for Repurchase. With respect to a Sale
Event, the Company shall have the right to purchase up to (i) one hundred
percent (100.0%) of the Option with respect to a Sale Event that occurs on or
before June 30, 2003; (ii) sixty-seven percent (67.0%) of the Option with
respect to a Sale Event that occurs on or after July 1, 2003 and on or before
June 30, 2004; and (iii) thirty-four percent (34.0%) of the Option with respect
to a Sale Event that occurs on or after July 1, 2004 and on or before June 30,
2005.

     11.  Notices.  Any notice necessary under the Agreement shall be addressed
to the Company in care of its Secretary at the principal executive office of the
Company and to the Optionee at the address appearing in the personnel records of
the Company for such Optionee or to either party at such other address as either
party hereto may hereafter designate in writing to the other. Any such notice
shall be deemed effective upon receipt thereof by the addressee.

     12.  Choice of Law.  THE INTERPRETATION, PERFORMANCE AND ENFORCEMENT OF THE
AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAW.

     13.  Option Subject to Plan.  The Plan is hereby incorporated by reference
and made a part hereof, and the Option and the Agreement are subject to all of
the terms and conditions of the Plan. By entering into the Agreement the
Optionee agrees and acknowledges that the Optionee has received and read a copy
of the Plan. The terms and provisions of the Plan as it may be amended from
time-to-time are hereby incorporated herein by reference. In the event of a
conflict between any term or provision contained herein and a term or provision
of the Plan, the applicable terms and provisions of the Plan will govern and
prevail.

     14.  Failure to Enforce Not a Waiver.  The failure of the Company to
enforce at any time any provision of the Agreement shall in no way be construed
to be a waiver of such provision or of any other provision hereof.

     15.  Amendments.  The Agreement may be amended or modified at any time by
an instrument in writing signed by the parties hereto.

     16.  Signature in Counterparts.  The Agreement may be signed in
counterparts, each of which shall be an

                                       6

<PAGE>

original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.

     17. Authority of the Committee. The Committee shall have full authority in
its discretion to interpret and construe the terms of the Plan and the
Agreement. The determination of the Committee as to any such matter of
interpretation or construction shall be final, binding and conclusive.

                                       7

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed the Agreement. By
execution of the Agreement, the Optionee acknowledges receipt of a copy of the
Plan.

PACKAGING DYNAMICS CORPORATION

By:
    ---------------------------

NAME OF OPTIONEE:

-------------------------------
(Sign Name)

[Date]

Number of Options:
                   ------------
Exercise Price:
                ---------------

                                       8

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