Exhibit 10.1

 

FIRST AMENDMENT TO THE CARAUSTAR INDUSTRIES, INC.

2003 LONG-TERM EQUITY INCENTIVE PLAN

 

Pursuant to Section 23 of the Caraustar Industries, Inc. 2003 Long-Term Equity
Incentive Plan (the “Plan”), Caraustar Industries, Inc. (the “Company”) does
hereby amend the Plan in the following respects.

 

1. Effective as of the date of shareholder approval of this Amendment, Section 1
of the Plan is amended and restated in its entirety as follows:

 

“1. Purpose. The purpose of this Plan is to enhance alignment of the interests
of selected employees and directors of Caraustar Industries, Inc. (the
“Company”) with the interests of our shareholders by rewarding the participating
employees and directors for improving our financial performance in a manner that
is consistent with the creation of increased shareholder value. In furtherance
of this objective, awards in the form of common stock purchase options and
restricted or unrestricted common stock, or a combination of any of them, may be
granted in accordance with the provisions of this Plan.”

 

2. Effective as of the date of shareholder approval of this Amendment, Section 6
of the Plan is amended and restated in its entirety as follows:

 

“6. Eligibility. Awards made under this Plan may be made to (i) any salaried,
full-time key executive or operating or staff manager of the Company or any
Subsidiary, (ii) any other salaried, full-time employee of the Company or any
Subsidiary who is a significant contributor to the Company’s financial success
or (iii) any director of the Company. The Chief Executive Officer shall nominate
eligible employees and directors for participation in this Plan each year, and
the Committee shall then select the persons to receive awards under this Plan
during that year from the employees and directors so nominated.”

 

3. All other references to “employees” in the Plan shall be deemed to include
all employees and directors eligible under Section 6 of the Plan (as amended
hereby).

 

4. Effective as of the date of shareholder approval of this Amendment, a new
Section 8A of the Plan is hereby created to read in its entirety as follows:

 

“8A. Other Common Stock Awards. The Committee may from time to time grant to
directors awards under this Plan in the form of shares of common stock that are
not subject to a risk of forfeiture or restrictions on transfer, or to the
limitation on the frequency of grants set forth in clause (ii) of Section 5.
Such awards shall be subject to such terms and conditions, if any, as the
Committee may establish at the time of grant.”

 

5. As modified hereby, the Plan continues and is hereby confirmed in all
respects.

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IN WITNESS WHEREOF, Caraustar Industries, Inc. has caused this Amendment to be
executed by its officers, this 20 day of June, 2005.

 

        CARAUSTAR INDUSTRIES, INC.         By:  

/s/ Barry A. Smedstad

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        Name:  

Barry A. Smedstad

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        Title:  

Vice President, Human Resources

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ATTEST:

 

       

/s/ Joyce Waldin

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        Name:  

Joyce Waldin

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        Title:  

HR Manager

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