N&B Profitability Improvement plan

1. N&B Profitability Improvement plan March 26, 2010

2. Total 2009 N&B Sales • $347,552 Margin • 16% GP (@ Std Cost) • 26% GP (substituting actual cost on 4 White Foam Core items)

3. A Review by Product Category • Alpha Mat • 174,786 lbs • $215,806 margin, 52% GP @ std • 5,000 lb order minimum incurs a price premium over 10,000 lb orders • Review for appropriate up charge • ArtCare Black • 109,188 lbs • $48,139 margin, 23% GP @ std • Current price $209/cwt • Foam Core Liner • 1,957,290 lbs • -1% GP @ std, but $210,076 margin, 17% GP @ actual • Actual costs are between $9.50/cwt to $17.50/cwt better than standard • Sulfite Mat • 158,881 lbs • $88,678 margin, 35% @ std • 5,000 lb order minimum incurs a price premium over 10,000 lb orders

4. N&B Current Situation • The past due account balance has been cleaned up. Payment terms were extended to net 45 days through June 2010. In July will revert back to 2% 20, n21. Paper is shipping without delay or credit hold. • However, N&B couldn’t risk shutting down their production operations due to credit holds, so they qualified a new supplier for the white foam core liner. We’re not certain who the supplier is but we suspect Wausau. Already 1 ½ trucks of product were ordered during the qualification process with no operational issues. • We have been advised that our pricing is too high and we’ll need to be competitive if we want to maintain a secondary position for the white foam core business. The transition will begin as early as June and the risk of lost business is 1MM lbs in the back half of this year. • Gary is getting opportunities to grow colors. We have taken the black foam core business from Mohawk . To-date, two truckloads ordered at a selling price of $93/cwt. Actual costs are about $14/cwt better than standard costs --- GP of 15%.

5. N&B Profit Improvement Plan • The account is more profitable than believed based on actual production costs. • Recommend that we hold current foam core pricing until we can determine the competitive pricing landscape. • Establish escalator or pulp index for pricing of white foam core liner. (We need to stay involved with this product to be a relevant supplier to N&B, and also provides consistent volume for the paper machine). • Propose $2-$3/cwt increase on black core foam liner effective May. • Review alpha and sulfite mat costs to determine where we can implement a price increase in May. Work closely with Dave Lemmers immediately. • Continue to seek more profitable color opportunities – Gary is quickly developing solid relationships at the Bridgeview plant and this will lead to more quoting.