Document:

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                                                                   Exhibit 10.18

                              APPLETON PAPERS INC.
                              -------------------
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                     --------------------------------------

                      (As Amended Through December 4, 1998)

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                              APPLETON PAPERS INC.
                              --------------------
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                     --------------------------------------
                      (As Amended Through December 4, 1998)

                                TABLE OF CONTENTS
                                -----------------

<TABLE>
<CAPTION>
                                                              Page
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<S>                                                           <C>
Article I. - Establishment ................................     1

        1.1  Establishment of the Plan ....................     1
        1.2  Purpose ......................................     1

Article II. - Definitions and Construction ................     1

        2.1     Definitions ...............................     1
        2.2     Gender and Number .........................     2
        2.3     Employment Rights .........................     2
        2.4     Severability ..............................     2
        2.5     Applicable Law ............................     2

Article III. - Participation and Benefits .................     2

        3.1     Participation and Vesting. ................     2
        3.2     Retirement Benefit. .......................     3
        3.3     Small Benefits ............................     4
        3.4     Beneficiary ...............................     4
        3.5     Death Benefits. ...........................     4
        3.6     Disability Benefits .......................     4

Article IV. - General Provisions ..........................     4

        4.1     Funding ...................................     4
        4.2     Administration ............................     5
        4.3     Expenses ..................................     5
        4.4     Indemnification and Exculpation ...........     5
        4.5     Interests not Transferable ................     5
        4.6     Effect on Other Benefit Plans .............     5
        4.7     Tax Liability .............................     5

Article V. - Amendment and Termination ....................     6

        5.1     Amendment and Termination .................     6
</TABLE>

                                       [i]

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                              APPLETON PAPERS INC.
                              --------------------
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                     --------------------------------------
                      (As Amended Through December 4, 1998)

                            Article I. Establishment
                            ------------------------

     1.1  Establishment of the Plan. Appleton Papers Inc. (the "Company")
          -------------------------
established the APPLETON PAPERS INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (the
"Plan"), effective January 1, 1992 (the "Effective Date"). The Plan, as set
forth in this document, includes all amendments adopted through December 4,
1998.

     1.2  Purpose. The Company sponsors the Appleton Papers Inc. Retirement Plan
          -------
for Non-Bargaining Unit Employees (the "Pension Plan") for the benefit of
employees and their beneficiaries. This plan is a defined benefit pension plan
intended to operate as a "qualified plan" as that term is defined under section
401(a) of the Internal Revenue Code (the "Code").

The Pension Plan is subject to limitations under sections 401(a)(17) and 415 of
the Code that may result in the diminution of benefits payable on behalf of
certain employees. Further, the Pension Plan does not recognize compensation
deferred under a non-qualified deferred compensation plan of the Company as
"Compensation" for benefit accrual purposes. This Plan is established and
maintained to offset these diminutions for eligible employees.

This Plan is intended to be an unfunded plan maintained for the purpose of
providing deferred compensation for a select group of management or highly
compensated employees and as such is exempt from Parts 2, 3, and 4 of Title I of
ERISA.

                    Article II. Definitions and Construction
                    ----------------------------------------

     2.1  Definitions. The terms used in this Plan shall have the same meaning
          -----------
as they have under the Pension Plan except as otherwise indicated herein.

     (a)  "Company" means Appleton Papers Inc.
           -------

     (b)  "Compensation" under this Plan for any calendar year shall have the
           ------------
          meaning given it under Section 1.17(b) of the Pension Plan, plus any
          deferred compensation for such calendar year.

     (c)  "Employer" means the Company and any Subsidiaries participating in the
           --------
          Pension Plan.

     (d)  "ERISA" means the Employee Retirement Income Security Act of 1974, as
           -----
          amended.

                                       1

<PAGE>

          (e)  "Participant" means an employee of the Employer who meets the
                -----------
               participation requirements set forth in Section 3.1 of this Plan.

          (f)  "Retirement" means separation from service from the Employer on
                ----------
               or after attainment of early or normal retirement eligibility
               under the Pension Plan, but in no event earlier than age 55 with
               10 years of service.

          (g)  "Subsidiary" means a corporation which, with the Company, is a
                ----------
               member of a controlled group of Employers or an affiliate as
               defined in Internal Revenue Code section 414(b), (c), or (m).

     2.2  Gender and Number. Except when otherwise indicated by the context,
          -----------------
words in the masculine gender shall include the feminine and neuter genders; the
plural shall include the singular and the singular shall include the plural.

     2.3  Employment Rights. Establishment of the Plan shall not be construed to
          -----------------
give any Participant the right to be retained by the Employer or to interfere
with the right of the Employer to discharge or retire any Participant at any
time. Nothing contained in the Plan shall give a Participant the right to any
benefits not specifically provided by the Plan.

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

     2.5  Applicable Law. Portions of this Plan providing benefits for certain
          --------------
employees in excess of the limitations on contributions and benefits imposed
under section 415 of the Internal Revenue Code are fully exempt from the
provisions of ERISA pursuant to section 4(b)(5) thereof. Other portions of the
Plan which are unfunded and relate to a select group of management or highly
compensated employers are intended to be exempt from ERISA as described in
Section 1.2 above and from all ERISA reporting and additionally from disclosure
requirements except the filing of a statement with Department of Labor pursuant
to DOL regulations section 2520.104-23. The Plan shall be governed and construed
in accordance with the laws of the State of Wisconsin except to the extent such
laws are preempted by ERISA.

                     Article III. Participation and Benefits
                     ---------------------------------------

     3.1  Participation and Vesting.
          -------------------------

     (a)  A person who is a participant under the Pension Plan shall become a
          Participant in this Plan at the time he has become subject to (1) or
          (2), or both (1) and (2), below:

                                       2

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          (1)  the benefit to which he is entitled under the Pension Plan is
               limited due to the operation of sections 401(a)(17) and 415 of
               the Code;

          (2)  he has elected to defer compensation under a non-qualified
               deferred compensation plan of the Company, and such deferred
               compensation is not recognized under the Pension Plan.

     (b)  Effective December 4, 1998, a Participant (or Beneficiary, if
          applicable) shall be entitled to and vest in a Supplemental Retirement
          Benefit under this Plan only upon the occurrence of (i) termination of
          employment with a vested benefit under the Pension Plan, whether by
          Retirement or otherwise, or (ii) receipt of a Disability Retirement
          Pension under the Pension Plan.

     3.2  Retirement Benefit.
          ------------------

     (a)  Amount of Retirement Benefit. A Participant who becomes eligible for a
          ----------------------------
          Supplemental Retirement Benefit pursuant to Section 3.1 above shall be
          entitled to a monthly benefit in an amount equal to the excess of (1)
          below over (2) below:

          (1)  the retirement benefit to which he would have been entitled under
               the Pension Plan had (i) his benefit not been reduced pursuant to
               Code sections 401(a)(17) and 415, or (ii) his benefit included
               amounts deferred under a non-qualified deferred compensation plan
               of the Company (or both (i) and (ii)),

          (2)  the retirement benefit to which he is entitled under the Pension
               Plan;

          provided, however, that no benefit shall be payable under the Plan
          unless and until the Participant (or Beneficiary, if applicable) is
          eligible to receive an immediate retirement benefit under the Pension
          Plan. Benefits under this Plan shall be subject to the same
          cost-of-living adjustments, if any, as applicable under the Pension
          Plan.

     (b)  Payment of Benefit. A Participant's Supplemental Benefit shall be paid
          ------------------
          or commence at the time payment of the Participant's (or, if
          applicable, the Beneficiary's) benefit under the Pension Plan is paid
          or commences.

     (c)  Form of Benefit. A Participant shall be deemed to have elected the
          ---------------
          same benefit form under this Plan as his election in effect under the
          Pension Plan at the time of payment or commencement of payment under
          the Pension Plan. If no election is in effect under the Pension Plan
          at his termination of employment as to form of benefit, the
          Participant shall be deemed to have elected to receive his benefits in
          the form of a single life annuity if unmarried, or in the form of a
          Qualified Joint and Survivor Annuity if married.

                                       3

<PAGE>

     3.3  Small Benefits. Notwithstanding the foregoing provisions of this Plan,
          --------------
if the amount of the Actuarial Equivalent immediate single sum payment of a
Participant's or a Beneficiary's accrued benefit under this Plan is less than
$20,000, the benefit will be paid to the Participant or Beneficiary in one lump
sum payment.

     3.4  Beneficiary. The Beneficiary of each Participant under the Pension
          -----------
Plan shall be the beneficiary of the Participant's benefits under this Plan.

     3.5  Death Benefits.
          --------------

     (a)  Death Prior to Commencement of Benefit. In the event of a
          --------------------------------------
          Participant's death prior to payment or commencement of payment of a
          benefit hereunder, the greater of the following pre-retirement death
          benefits will be available to the Participant's surviving spouse, if
          any:

          (1)  the Pre-Retirement Surviving Spouse Annuity provided under
               Section 6.03 of the Pension Plan, if eligible for such benefit
               under the Pension Plan; or

          (2)  the Special Spouse Benefit provided under Sections 6.01 and 6.02
               of the Pension Plan, if eligible for such benefit under the
               Pension Plan.

     (b)  Death After Commencement of Benefits. If the Participant dies after
          ------------------------------------
          the commencement of benefits under this Plan, the Beneficiary shall
          receive such benefits, if any, as are provided in accordance with the
          Participant's election under Section 3.2(c) regarding the form of
          benefits.

     (c)  Except as set forth in subsections (a) and (b) above, no death
          benefits are payable under the Plan.

     3.6  Disability Benefits. If a Participant terminates his employment with
          -------------------
the Employer because of a Disability as defined under the Pension Plan, benefits
will be payable under this Plan at such time as the Participant commences to
receive benefits under the Pension Plan, as calculated and paid pursuant to
Section 3.2.

                         Article IV. General Provisions
                         ------------------------------

     4.1  Funding. All benefits paid under this Plan shall be paid in cash from
          -------
the general assets of the Company. Such amounts shall be reflected on the
accounting records of the Company but shall not be construed to create or
require the creation of a trust, custodial, or escrow account. No employee shall
have any right, title, or interest whatever in or to any investment reserves,
accounts, or funds that the Company may purchase, establish, or accumulate to
aid in providing benefits under this Plan. Nothing contained in this Plan, and
no

                                       4

<PAGE>

action taken pursuant to its provisions, shall create a trust or fiduciary
relationship of any kind between the employer and an employee or any other
person. Neither an employee nor beneficiary of an employee shall acquire any
interest greater than that of an unsecured creditor.

     The foregoing paragraph is not intended to preclude the Company from
establishing and funding a trust pursuant to I.R. Rev. Proc. 92-64 through which
any or all of such benefits may be paid.

     4.2 Administration. This Plan shall be administered by the Vice President -
         --------------
Human Resources of the Company (referred to in this Plan as the
"Administrator"), provided that the powers and authority of the Administrator
shall reside with the Chief Executive Officer of the Company with respect to the
eligibility or entitlement to benefits under this Plan with respect to the said
Vice President - Human Resources. The Administrator shall have, to the extent
appropriate, the same powers, rights, duties, and obligations with respect to
this Plan as does the administrative committee of the Pension Plan; provided,
however, that the Administrator shall have full discretion to interpret the
provisions of this Plan and that the determination of the Administrator as to
any questions arising under this Plan, including questions of construction and
interpretation, shall be final, binding, and conclusive upon all persons.

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

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

     4.5 Interests not Transferable. The interests of the Participants and their
         --------------------------
beneficiaries under the Plan are not subject to the claims of their creditors
and may not be voluntarily or involuntarily transferred, assigned, alienated, or
encumbered.

     4.6 Effect on Other Benefit Plans. Amounts credited or paid under this Plan
         -----------------------------
shall not be considered to be compensation for the purposes of a qualified
pension plan maintained by the Employer. The treatment of such amounts under
other employee benefit plans shall be determined pursuant to the provisions of
such plans.

                                       5

<PAGE>

     4.7 Tax Liability. The Employer may withhold from any payment of benefits
         -------------
hereunder any taxes required to be withheld by law.

                      Article V. Amendment and Termination
                      ------------------------------------

     5.1 Amendment and Termination. The Company reserves the right to amend this
         -------------------------
Plan from time to time and to terminate the Plan at any time. Termination of the
Plan shall not diminish the rights of any Participant to benefits accrued prior
to such date of termination of or cessation of participation in the Plan. The
benefits of all Participants (and any benefits of former Participants who remain
employed by the Employer on such date) shall become fully vested upon
termination of the Plan.

                                    * * * * *

                                       6<PAGE>

                                                                   Exhibit 10.19

                              APPLETON PAPERS INC.
                        TERMINATION PROTECTION AGREEMENT

                  AGREEMENT dated as of the ____ day of ____________________,
20___, between Appleton Papers Inc. (the "Corporation") and _____________ (the
"Executive"). Unless otherwise indicated, terms used herein and defined in
Schedule A shall have the meanings assigned to them in Schedule A.

                  WHEREAS, the Corporation desires to continue to attract and
retain skilled and dedicated management employees, by providing post-employment
benefits in the event of certain terminations of employment; and

                  WHEREAS, the Corporation has employed the Executive in the
capacity of _____________________________________, upon the terms and conditions
currently reflected in Executive's personnel file or in various minutes of the
Board of Directors; and

                  WHEREAS, Executive has specific duties and unique talents
which are of benefit to the Corporation;

                  NOW, THEREFORE, it is agreed as follows:

1.       Term of Agreement.
         -----------------

         This Agreement shall become effective as of July 1, 2001 (the
         "Effective Date") and shall remain in effect from time to time
         thereafter. The Corporation may terminate this Agreement by giving the
         Executive at least eighteen (18) months advance written notice of
         termination of the Agreement. Notwithstanding the foregoing, this
         Agreement shall, if in effect on the date of a Change of Control,
         remain in effect for at least two (2) years following such Change of
         Control.

2.       Notice of Termination of Employment.
         -----------------------------------

         The Executive agrees to give the Corporation at least two (2) months'
         written advance notice of Executive's voluntary termination of
         employment, other than for Good Reason, if such termination occurs
         prior to a Change of Control.

3.       Benefits Payable Upon Termination of Employment.
         -----------------------------------------------

(a)      General Rule.  In the event that, at any time other than within two
         (2) years after a Change of Control, the Corporation terminates the
         employment of the Executive with the Corporation other than for
         misconduct or Permanent Disability, or the Executive terminates
         employment

                                   Page 1 of 9

<PAGE>

         for Good Reason, the Executive shall receive from the Corporation,
         provided the Executive executes the release described in Paragraph 3(d)
         below:

         (i)      an annual amount, equal to the Executive's Base Salary,
                  payable for each of the eighteen (18) months following
                  termination of employment in equal installments at the times
                  set forth in the Corporation's payroll policy, as in effect at
                  the time of payment;

         (ii)     reimbursement of reasonable expenses incurred by the Executive
                  for professional outplacement services by qualified
                  consultants after termination of employment; and

         (iii)    until the earlier of (A) eighteen (18) months following the
                  date of termination of employment; or (B) the date on which
                  the Executive is employed by a new employer, medical and
                  dental benefits at the level provided immediately prior to the
                  termination of employment date. Any statutory rights of the
                  Executive to continued health coverage shall be governed by
                  the Executive's actual date of termination and not by the
                  expiration of the salary continuation period.

(b)      Termination Within Two (2) Years After a Change of Control. In the
         ----------------------------------------------------------
         event that within two (2) years after a Change of Control, the
         Corporation terminates the employment of the Executive, other than for
         misconduct or Permanent Disability, or the Executive terminates
         employment for Good Reason, the Executive shall receive from the
         Corporation, within two (2) business days after such termination:

         (i)      an amount in cash equal to the product of two (2), multiplied
                  by the sum of the  Executive's  Base Salary and Target Bonus;

         (ii)     an amount in cash equal to the product of (A) Executive's
                  Target Bonus and (B) a fraction, the numerator of which is the
                  number of days in the Corporation's fiscal year that occurred
                  prior to the Executive's termination of employment and the
                  denominator of which is 365, representing a partial bonus for
                  the year of termination, less any partial bonus related to the
                  same fiscal year previously paid to the Executive;

         (iii)    if the bonus amounts for the Corporation's fiscal year ending
                  prior to the Executive's termination date have not, prior to
                  such termination, been paid to Corporation executives
                  generally, an amount in cash equal to the unpaid bonuses under
                  the Corporation's annual executive bonus program, based on
                  actual Corporation performance during such fiscal year;

         (iv)     reimbursement of reasonable expenses incurred by the
                  Executive for professional outplacement services by qualified
                  consultants after termination of employment; and

         (v)      until the earlier of twenty-four (24) months following the
                  date of termination of employment or the date on which the
                  Executive is employed by a new employer,

                                   Page 2 of 9

<PAGE>

               medical and dental benefits at the level provided immediately
               prior to the Change of Control. After Executive is employed by a
               new employer these benefits shall remain in effect for the term
               established above, but shall become secondary to any such
               benefits offered by the new employer (i.e. they will be offset by
               such new employer's benefits).

(c)      Termination for Misconduct.
         --------------------------

         Nothing in this Agreement shall be construed to prevent the Corporation
         from terminating Executive's employment under this Agreement for
         misconduct. Such termination shall relieve the Corporation of its
         obligation to make any other payments under this Agreement, except
         those that may be otherwise payable under then existing employee
         benefit plans, programs and arrangements of the Corporation.

(d)      Release of Claims.
         -----------------

         To be eligible for and receive the benefits described in subparagraphs
         (a) or (b) of this Paragraph 3, Executive must, at the time of
         termination of employment, irrevocably execute a Release form
         prescribed by the Corporation, file it with the person, and within the
         time period, the Corporation prescribes, and the Release must be
         enforceable in all respects. The purpose of the Release is to release
         the Corporation from all claims and liability arising out of the
         employment relationship with the Corporation, including without
         limitation, claims arising under the Age Discrimination in Employment
         Act ("ADEA"), Title VII of the Civil Rights Act of 1964, and all other
         federal, state, local or other laws, regulations or rules, whether
         arising from statute or the common law, or in law or equity. The
         Release shall be in a form that complies with regulations promulgated
         by the Equal Employment Opportunity Commission ("EEOC").

4.       Mitigation; Non-Compete.
         -----------------------

(a)      If the Executive's termination of employment occurs at any time other
         than within two (2) years after a Change of Control:

         (i)   the amount of the payments under Paragraph 3(a)(i) will be
               reduced by the amount of any gross compensation the Executive is
               entitled to receive, whether or not deferred, during the eighteen
               (18) month period following the termination, from any other
               source of employment, which term, for purposes of this Agreement,
               includes self-employment. Provided the Executive is not in
               violation of the requirements of Paragraph 5 or this Paragraph 4,
               the reduction described in the preceding sentence will not apply
               during the twelve (12) month period beginning on the day
               following the Executive's termination of employment hereunder. As
               a condition to receiving the payments under Paragraph 3(a)(i),
               the Corporation may require certification of the Executive's
               employment status and the Corporation may require, in the event
               of the

                                   Page 3 of 9

<PAGE>

               Executive's other employment, proof, in a form acceptable to the
               Corporation, of the Executive's rate of gross compensation from
               the Executive's new employer.

         (ii)  the Corporation's obligation to make payments under Paragraph 3
               (a) shall cease completely and immediately if, without its prior
               written consent, at any time before all such payments have been
               made as scheduled, the Executive shall directly or indirectly
               (whether as a shareholder, owner, partner, consultant, employee,
               or otherwise), engage in any of the "major businesses" in which
               the corporation or its subsidiaries are engaged. A "major
               business" for this purpose is any business segment of the
               Corporation (e.g. carbonless copy paper, thermal paper, or other
               business segments) on the date of termination of employment that
               produced in the last fiscal year of the Corporation which ended
               before the termination occurred, or is projected to produce in
               the fiscal year in which the termination occurs or in either of
               the two succeeding fiscal years after the date of termination,
               more than 5% of the revenues of the Corporation. For this
               purpose, the Executive shall be deemed not a shareholder of a
               company that would otherwise be a competing entity if the
               Executive's record and beneficial ownership of the capital stock
               of such company amount to not more than one (1) percent of the
               outstanding capital stock of any such company subject to the
               periodic and other reporting requirements of Section 13 or
               Section 15(d) of the Securities Exchange Act of 1934, as amended.

(b)      If the Executive's termination of employment occurs within two (2)
         years after a Change of Control, the Executive shall not be required to
         mitigate damages or the amount of any payment hereunder by seeking
         employment or otherwise, nor will any payments hereunder be subject to
         offset or reduction in respect of any claims which the Corporation may
         have against the Executive.

5.       Trade Secrets.
         -------------

         Executive recognizes and acknowledges that the list of the
         Corporation's customers, as well as other confidential information, as
         it may exist from time to time, is a valuable, special, and unique
         asset of the Corporation's business. The Executive will not, during or
         after the term of Executive's employment, disclose any such information
         or any part thereof to any person, firm, corporation, association, or
         other entity for any reason or purpose whatsoever. In the event of a
         breach or threatened breach by the Executive of the provisions of this
         Paragraph 5, the Corporation shall be entitled to an injunction
         restraining the Executive from disclosing, in whole or in part, this
         information. The provisions of this Paragraph 5 are in supplement to,
         and not in derogation of, any prior agreements between the Executive
         and the Corporation concerning rights to inventions and/or confidential
         information. The Corporation will be free to pursue any other remedies
         as it may in its discretion deem to be appropriate under the
         circumstances.

6.       Effect on Pension, Severance and Other Benefits.
         -----------------------------------------------

                                   Page 4 of 9

<PAGE>

         Benefits payable under Paragraph 3 hereof shall not be counted towards
         any pension benefits to which Executive may otherwise be entitled;
         these benefits are also in lieu of, and not in addition to, any
         severance or similar benefits to which the Executive may otherwise be
         entitled under the terms of any policy, plan or program of the
         Corporation. Unless expressly otherwise stated, this Agreement is not
         intended to deprive and does not have the effect of depriving Executive
         of any benefits to which the Executive may be entitled under employee
         benefit, disability, insurance, deferred compensation of similar plans
         or programs of the Corporation.

7.       Change of Control Tax Provisions.
         --------------------------------

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

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

         If the Excise Tax is subsequently determined to be less than the amount
         taken into account hereunder, Executive shall repay to the Company, at
         the time that the amount of such

                                   Page 5 of 9

<PAGE>

         reduction in Excise Tax is finally determined, the portion of the
         Gross-Up Payment attributable to such reduction. If the Excise Tax is
         determined to exceed the amount taken in account hereunder (including
         by reason of any payment the existence or amount of which cannot be
         determined at the time of the Gross-Up Payment), the Company shall make
         an additional gross-up payment in respect of such excess to Executive
         (plus any interest payable with respect to such excess) at the time
         that the amount of such excess is finally determined.

8.       Assignment.
         ----------

         This Agreement shall be binding upon, inure to the benefit of and be
         enforceable by the Corporation and the Executive and their respective
         heirs, legal representatives, successors and assigns. If the
         Corporation shall be merged into or consolidated with another entity,
         the provisions of this Agreement shall be binding upon and inure to the
         benefit of the entity surviving such merger or resulting from such
         consolidation. The Corporation will require any successor (whether
         direct or indirect, by purchase, merger, consolidation or otherwise) to
         all or substantially all of the business or assets of the Corporation,
         by agreement in form and substance satisfactory to the Executive, to
         expressly assume and agree to perform this Agreement in the same manner
         and to the same extent that the Corporation would be required to
         perform it if no such success had taken place. The provisions of this
         Paragraph 7 shall continue to apply to each subsequent employer of the
         Executive hereunder in the event of any subsequent merger,
         consolidation or transfer of assets of such subsequent employer.

9.       Separability Clause.
         -------------------

         Any provision of this Agreement which is held to be unenforceable or
         invalid in any respect in any jurisdiction shall be ineffective in such
         jurisdiction to the extent that it is unenforceable or invalid without
         affecting the remaining provisions hereof, which shall continue in full
         force and effect. The unenforceability or invalidity of a provision of
         this Agreement in one jurisdiction shall not invalidate or render
         unenforceable such provision in any other jurisdiction.

10.      Withholding.
         -----------

         Notwithstanding the provisions of Paragraph 4(b) hereof, the
         Corporation may, to the extent required by law, withhold applicable
         federal, state and local income and other taxes from any payments due
         to the Executive hereunder.

11.      Applicable Law.
         --------------

         This Agreement shall be governed by and construed in accordance with
         the laws of the State of Wisconsin applicable to contracts made and to
         be performed therein.

                                   Page 6 of 9

<PAGE>

12.    Entire Agreement.
       ----------------

       This instrument contains the entire agreement of the parties, and
       supersedes any earlier agreement between them, relative to the matters
       described herein. It may not be changed orally but only by an agreement
       in writing signed by the party against whom enforcement of any waiver,
       change, modification, extension, or discharge is sought.

        IN WITNESS WHEREOF, the parties have executed this Agreement on the ____
day of _______________________, 20___.
                                                APPLETON PAPERS INC.

                                                By:____________________________

                                                EXECUTIVE

                                                By:____________________________

                                   Page 7 of 9

<PAGE>

                                                                     Schedule A

                               CERTAIN DEFINITIONS

              As used in this Agreement, and unless the context requires a
different meaning, the following terms have the meaning indicated:

"Base Salary" means the Executive's annual rate of base salary in effect on the
 -----------
date on which the Executive's employment terminates, determined before any
deductions for salary deferrals under a non-qualified deferred compensation
plan, or Internal Revenue Code Sections 125 or 402(g).

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

"Good Reason" means:
 -----------

(a)     prior to a Change of Control, without the Executive's express written
        consent, a reduction of 25% or more of the Executive base annual salary;
        and

(b)     after a Change of Control,

(1)     without the Executive's express written consent,

        i.   A.   a decrease in the Executive's positions, duties,
                  responsibilities or status from those in effect immediately
                  prior to the Change of Control; or

        .    B.   any removal of the Executive from, or failure to re-elect the
                  Executive to, any of the Executive's positions immediately
                  prior to the Effective Date, except in connection with the
                  termination of the employment of the Executive for misconduct,
                  as a result of the death or Permanent Disability of the
                  Executive, or a transfer of the Executive to a comparable
                  position, with no decrease in salary and that does not
                  require relocation, and

                                   Page 8 of 9

<PAGE>

         ii.  the continuance thereof for a period of twenty (20) days after
              written notice thereof from the Executive;

     (2) any failure to pay Executive's base annual salary, or any reduction of
         the Executive's base annual salary or the Executive's Target Bonus in
         effect immediately prior to the Change of Control;

     (3) without the Executive's express written consent, the relocation of the
         principal place of the Executive's employment; and

     (4) any breach of Paragraph 4 (relating to non-complete obligations) and
         Paragraph 5 (relating to Trade Secrets).

"Notice of Disability Termination" means written notice which sets forth in
 --------------------------------
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment for reason of Permanent Disability.

"Permanent Disability" means that Executive would be entitled to receive
 --------------------
benefits under Title II of the Social Security Act, as amended; provided,
however, that any termination of the Executive on account of the Executive's
Permanent Disability shall be communicated by and shall not be effective without
a Notice of Disability Termination.

"Target Bonus" means that percentage of Base Salary payable for "target
 ------------
performance" under the Corporation's annual executive bonus program for the
Corporation's fiscal year in which the Executive's employment terminates or, if
no such percentage has been established, the year prior to such termination.

                                   Page 9 of 9

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