pagination not working in custom post type

<?php
/*
Template Name: Applications
*/



get_header(); ?>

<div id="ppagewrapper" >




<?php
//list terms in a given taxonomy
$taxonomy = 'apptypes';
$appargs=array(
  'hide_empty' => false,
  'orderby' => 'name',
  'order' => 'ASC',
  'parent' => '0'
);
$appterms = get_terms($taxonomy,$appargs);
?>

<?php
foreach ($appterms as $appterm) {

$termID = $appterm->term_id;
$taxonomyName = $taxonomy;
$termchildren = get_term_children( $termID, $taxonomyName );
foreach ($termchildren as $child) {
    $termsub = get_term_by( 'id', $child, $taxonomyName );
    echo '<div style="margin:0 auto; width="100%"><h2>'. $appterm->name.'</h2></div>';
    echo $termsub->name;


  $wpq = array (
    'posts_per_page' => get_option('posts_per_page'),
    'paged' => $paged,
    'taxonomy' => $taxonomy,
    'term' => $termsub->slug
);
$query = new WP_Query ($wpq);
$article_count = $query->post_count;
echo '<table width="98%" border="0" cellspacing="0" cellpadding="5"  class="customtable">
  <tr class="customhead">
    <td align="left" valign="top">Year</td>
    <td align="left" valign="top">Kit Name</td>
    <td align="left" valign="top">Kit</td>
  </tr>
  <tr><td colspan="3">'.term_description($termsub->term_id,$taxonomyName) .'</td></tr>';

if ($article_count) {
$posts = $query->posts;
foreach ($posts as $post) {
include(MY_THEME_FOLDER . '/appsloop.php');
}
}
echo ' </table>'; ?>

  <div class="nav-previous"><?php next_posts_link( __( '<span class="meta-nav">&larr;</span> Older posts', 'twentyten' ) ); ?></div>
<div class="nav-next"><?php previous_posts_link( __( 'Newer posts <span class="meta-nav">&rarr;</span>', 'twentyten' ) ); ?></div>

<?php } }
?>
</ul>



  </div>




<?php get_footer(); ?>