4. Go to LAYER...New Adjustment Layer and select Curves. (Make sure you check the "Group with Previous Layer" box).
In the dialog box that appears, there will be a diagonal line in the main window. Carefully click on it and enter in the Input box 180 and in the Output box 32.
This will give the "paper" a deeper tone. There are several other ways of achieving this, but this one will do.
5. Now select the Freehand Lasso Tool and, making sure you're on the "Paper" layer draw out some rough edges, holes etc. making sure that you complete a selection (i.e. go right back to the starting point). Hit Delete and the rough edges and holes will be "punched out" of the paper.
Here we've also added a bit of Drop Shadow (LAYER...Layer Styles...Drop Shadow).