Document:

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                                                                     EXHIBIT 4.1

                                                          AGREEMENT NO. 003/2002

                              LAND SALES AGREEMENT

                                     BETWEEN

                          S I L INDUSTRIAL LAND CO. LTD

                                       AND

                      DSG INTERNATIONAL (THAILAND) CO. LTD

<PAGE>

                                 [ Translation ]

                              LAND SALES AGREEMENT

                             AGREEMENT NO. 003 /2002

                                         Made at S I L Industrial Land Co., Ltd.

                                         Date October 31, 2002

     This Agreement is made and entered into by and between:

S I L Industrial Land Co., Ltd., having its principal place of business at No.
111 Moo 7, Nong Pla Kradi Road, Tambon Nong Pla Moh, Amphur Nong Khae, Saraburi
Province, represented by Mr. Udom Siripanich, Managing Director, as its
authorized representative, hereinafter referred to as "Seller" of the one part,
and DSG International (Thailand) Co., Ltd., "Purchaser" having its principal
place of business at 448/11 Ladprao 53 (Choke Chai 4), Ladprao Road, Ladprao,
Bangkok, represented by Mr. Wong Po Wah, Chief Operating Officer - South East
Asia and Mr. Praphan Anuwongnukroh, Director Consultant, as its authorized
representative. Both parties hereby agree as follows:

     The Seller represents that the Land is free and clear of all liens and
encumbrance, and that the Seller shall not create any lien, encumbrance or any
disturbance over the Land as from the date here of.

     Clause 1. The Seller is the owner of a piece of land Plot No. 57/1. The
area of the land is approximately 15 Rai, located in the S I L Industrial Land,
Amphur Nong Khae, Saraburi Province owned by the Seller (hereinafter referred to
as the "Land"). Details of the plot shall be attached hereto and made a part
hereof.

     Clause 2. The Seller agrees to sell and the Purchaser agrees to purchase
the Land as specified in Clause 1 at the price of 2,000,000 Baht per Rai (Two
Million Baht per Rai), totalling 30,000,000 Baht (Thirty Million Baht). In the
event that the area of the Land is more or less than the specified area, both
parties agree to increase or decrease the price of Land proportionately.

                                       1

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                              [ Translation ]

     The Purchaser agrees to pay for the price of land to The Seller in
accordance with the following terms:

     2.1  First payment 9,000,000 Baht (Nine Million Baht) shall be paid on the
          signing date of this Agreement.

     2.2  Second payment 9,000,000 Baht (Nine Million Baht) shall be paid within
          60 (sixty) days after the signing date.

     2.3  Third payment 9,000,000 Baht (Nine Million Baht) shall be paid with in
          120 (one hundred and twenty) days after the signing date.

     2.4  Last payment 3,000,000 Baht (Three Million Baht) shall be paid within
          180 (one hundred and eighty) days after the signing date. The title
          deed shall be transferred on that day.

The Purchaser agrees to make the total payment to the Seller on the title
transfer registration date to be notified by the Seller under Clause 3 ("Title
Transfer Date").

     The Purchaser agrees to payfor the total Land price to the Seller by
cheque, except for the last payment which shall be paid by cashier's cheque. The
payment of the Land price pursuant to this Agreement shall be valid only when
the Seller shall have issued the receipt to the Purchaser and the Seller shall
have deposited the cheque into its bank account and such cheque has been
completely honoured.

     Clause 3. The Seller shall register the transfer of Land title pursuant to
Clause 2 above to the Purchaser and The Purchaser shall register the transfer of
Land title in accordance with the date, time and place as notified by the
Seller.

     In the case that the Seller cannot transfer the land title deed as
specified in this agreement after the Purchaser had paid. The Seller shall
return to the Purchaser all the money which has been paid to The Seller and this
agreement shall be terminated.

                                       2

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                                 [ Translation ]

     In the event that the Purchaser fails to make payment in any installment or
neglects or fails to accept the transfer of Land title as per the date and time
specified hereabove for reasons attributable to the Purchaser. the Purchaser
agrees to pay to the Seller a penalty at the rate of 1% per month of the default
installment, calculated from the date of default upto the date when the
Purchaser shall have complied with its obligations hereunder and the exercise of
right pursuant to clause 14 by the Seller shall not be affected thereby.

     The time fixed for the Title Transfer Date as per the preceding paragraph
shall not be applied if the Seller or the Purchaser fails to do so for reasons
beyond its control or from the delay of any governmental agency concerned or
force majeure. In such cases, both parties shall agree to fix the new Title
Transfer Date without delay.

     All fees, taxes and stamp duties, as well as other costs and expenses
relating to the registration of the transfer of Land title shall be borne by the
Seller.

     Clause 4. The Seller agrees to develop the Land in order that the Purchaser
shall be able to operate its factory conveniently and shall provide the
Purchaser with the following facilities:

     4.1  High-voltage electricity lines upto the frontage of the Land;

     4.2  Water pipes to be used in the industry upto the frontage of the Land;

     4.3  Natural gas pipes passing along the Land which the Purchaser shall be
          able to connect such pipes for its own use;

     4.4  Telephone numbers not exceeding the numbers provided by the Seller;

     4.5  Connecting roads within the S I L Industrial Land upto the frontage of
          the Land and to the public roads;

     4.6  Drain pipes from the Seller's waste water treatment plant upto the
          frontage of the Land;

     4.7  Flood protection system

     4.8  Other services as stipulated in clause 6

                                       3

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                                 [ Translation ]

     Clause 5. The Purchaser covenants that it shall comply with all standards,
provisions, laws and/or regulations relating to the Land usage and the
construction of industrial factory for the operation of business in the area of
the Seller's Industrial Land as stipulated and may be stipulated in the future.

     Clause 6. The Purchaser agrees to utilize all public utilities services
provided by the Seller, the terms and conditions of which shall be in accordance
with the Declaration of Siam Cement Industrial Zone, Saraburi.

     No.1/2000 General Utility Service Rates
     No.2/2000 Industrial Water Price Rates
     No.3/2000 Central Waste Water Treatment Service Rates
     No.4/2000 Garbage Disposal Service Rates

     Whenever the Purchaser wishes to transfer the Land, whether by sale,
exchange or disposition by any other means, the Purchaser shall inform the
Seller and ask for the Seller's prior written consent. The Land transferee shall
have the qualifications, and agree to comply with all conditions, stipulated in
the related agreements which the Purchaser has entered into with the Seller.

     Clause 7. The Purchaser agrees to make use of the Land for its intended
purpose by only use as contracted to establish and operate a disposable diaper
factory. The expansion of the factory or the change in manufacturing activity,
products processing or any conduct which may cause the increase of pollution or
the increase use of the public utilities system as provided by the Seller shall
not be permitted unless a prior written consent of the Seller shall have been
obtained.

     Clause 8. The Purchaser shall be entitled to enter into possession of the
Land on the execution date hereof and to continue in possession so long as it is
not in default in the performance of this Agreement. However, before making use
of or constructing the factory for its operation within the Land, the Purchaser
shall have the following obligations:

                                       4

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                                 [ Translation ]

     8.1  To show the Seller the layouts of the factory buildings, office
          buildings or other buildings which shall be in conformity with the
          standards of the Land usage set by the Seller as attached hereto and
          made a part hereof. The Seller reserves the right to express
          disagreement, express opinion, advise or modify the said layouts:

     8.2  To present to the Seller the detailed information concerning the
          electricity and water consumption requirement necessary for use in the
          operation of the factory in each day and each month.

     8.3  To inform the Seller of the type of fuel or energy to be utilized in
          the operation of the factory and whether the Purchaser requires to
          use the natural gas, if so, the amount of natural gas to be used in
          each day and each month.

     8.4  To inform the Seller of the amount of telephone numbers necessary to
          be used in the factory.

     8.5  To inform the Seller of the kind or type of products to be
          manufactured and the estimated production capacity in each day and
          each month.

     8.6  To inform the Seller of the volume of waste water from the factory,
          the amount of waste materials, toxic materials, and scrap of any used
          materials in each day and month.

     8.7  To inform the Seller of the number of workers or employees who will be
          working in the factory.

     All obligations shall be deemed fulfilled when the Purchaser has achieved
all the abovementioned obligations. The Purchaser shall comply with those
obligations not yet achieved within 180 days from the signing date hereof.

     Clause 9. The Purchaser hereby agrees to purchase all kinds of facilities
and public utilities provided by the Seller within the S I L Industrial Land on
the following conditions:

                                       5

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                                 [ Translation ]

     9.1  The Seller shall, at its own costs, construct the electricity
          substation in the S I L Industrial Land and proceed to have the
          electricity available upto the frontage of the Land at the volume
          necessary for the Purchaser to use in the operation of its factory as
          informed to the Seller in advance pursuant to Clause 8 above.

          The Purchaser shall have an obligation to pay the electricity bills
          directly to the Provincial Electricity Authority of Thailand ("PEA")
          in accordance with the actual amount consumed as per the binding
          obligations agreed upon between the Purchaser and the PEA.

     9.2  The Telephone Organization of Thailand ("TOT") has installed the
          telephone exchange for the S I L Industrial Land as applied by the
          Seller and shall provide the Purchaser with the telephone numbers as
          specified in Clause 8 above, but not exceeding the amount advised by
          the Seller. The Purchaser shall, at its own costs and expenses, apply
          for permission of the installation and execute the services agreement
          directly with the TOT.

          The Purchaser shall have an obligation to pay the telephone bills
          directly to the TOT in accordance with the actual amount used as per
          the binding obligations agreed upon between the Purchaser and the TOT.

     9.3  The Petroleum Authority of Thailand ("PTT") shall invest in the
          installation of natural gas pipeline upto the frontage of the Land, as
          applied by the Seller and required by the Purchaser, which shall be in
          accordance with the terms and conditions mutually agreed by the
          Purchaser and the PTT.

          The Purchaser shall have an obligation to pay the natural gas bills or
          other expenses directly to the PTT in accordance with the binding
          obligations agreed upon between the Purchaser and the PTT.

                                       6

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                                 [ Translation ]

     9.4  The Purchaser agrees to purchase water to be used for its industry and
          other purposes. The Seller shall arrange to have the water pipeline
          connected up to the frontage of the Land and start distributing water
          to the Purchaser on the commencement date required by the Purchaser
          and informed to the Seller. The Purchaser shall pay to the Seller for
          the water bills as per the volume utilized in each month at the
          standard rate set by the Seller. The Seller shall be entitled to
          adjust the rate of price as per the terms and conditions specified in
          the Declaration of Siam Cement Industrial Zone, Saraburi. No.2/2000
          Industrial Water Price Rates

     9.5  The Purchaser agrees to be bound by any other obligations set forth in
          the Declaration of Siam Cement Industrial Zone, Saraburi either
          stipulated or may be stipulated in the future.

     Clause 10. The Seller shall provide the roads within the S I L Industrial
Land upto the frontage of the Land so that the Purchaser shall be able to make
use thereof. It is expressly understood that the Seller is the sole owner of the
said roads and shall have the right to modify and make changes whenever it deems
appropriate, provided that the Seller shall inform the Purchaser prior to such
modification or change is made.

     Clause 11. All kinds of vehicles, whether used for the transportation of
personnel, goods, machinery or others, and whether owned by the Purchaser, its
personnel or other persons, entering or leaving the factory or the Land in the
S I L Industrial Land shall have Seller's permission in advance. The Seller
shall have the right to inspect and examine such vehicles whenever they are
entering or leaving the said area.

     Clause 12. The Purchaser covenants to make use of the Land only in order to
operate its factory with no living quarters, whether for workers, employees or
other persons who work within the area of the Land or the factory. Workers,
employees or other persons shall leave the area of the Land or S I L Industrial
Land after work, except those who are on guard or on duty for the factory or the
Land security.

                                       7

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                                 [ Translation ]

     Clause 13. The Purchaser shall be responsible for all damages which may be
incurred to the Seller due to the act of the Purchaser's employees, workers or
agents while performing their duties to the Purchaser. The Purchaser shall be
liable and reimburse to the Seller until all damages shall have been fully paid.

     Clause 14. In the event that either party commits a breach of any or all of
the provisions hereof, the other party shall be entitled to terminate this
Agreement, and claim for damages as permitted by the applicable Thai laws.

     Clause 15. Each party hereby represents to the other party that:

     15.1 it is a corporation duly organized and validly existing under the laws
          of its incorporation and has full legal right, power and authority to
          execute and deliver this Agreement, to enter into the transactions and
          incur the obligations provided for in this Agreement, and to perform
          and observe the terms and conditions hereof;

     15.2 it has taken all appropriate and necessary corporate and other action
          to authorize the execution and delivery of this Agreement, and to
          authorize the performance and observance of the terms and conditions
          hereof;

     15.3 this Agreement, when executed and delivered, shall constitute legal
          valid and binding obligations, enforceable in accordance with their
          respective terms;

     15.4 this Agreement shall not violate or contravene any provision of law or
          other governmental directive, shall not conflict with its Memorandum
          and Articles of Association or other corporate documents, and shall
          not conflict with or result in the breach of any provision of any
          agreement to which it is a party.

     Clause 16. All of the terms and conditions of this Agreement between the
parties are stated herein and no representations or inducements have been made
to the Purchaser by the Seller other than those expressly stated in this
Agreement.

                                       8

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                                 [ Translation ]

     Clause 17. The Purchaser shall in no event assign this Agreement without
the prior written consent of the Seller.

     Clause 18. The waiver of any breach of this Agreement by either party shall
not constitute a waiver of any subsequent breach either of the same or another
provision of this Agreement.

     Clause 19. This Agreement shall be governed by the laws of Thailand.

     This Agreement is made in duplicate with identical wording. Both parties
have read and found the same to be in accordance with their intentions, thus
caused their authorized representatives to sign their names hereinbelow in the
presence of the witnesses. Each party retains one copy.

                   S I L INDUSTRIAL LAND CO., LTD. The Seller

                         Sign             signature
                              --------------------------------
                                    (Mr. Udom Siripanich)
                                      Managing Director

              DSG INTERNATIONAL (THAILAND) CO., LTD. The Purchaser

   Sign            signature                Sign            signature
        -------------------------------          -------------------------------
               (Mr. Wong Po Wah)                    (Mr. Praphan Anuwongnukroh)
            Chief Operating Officer                     Director Consultant
                South East Asia

                         Sign             signature              Witness
                              --------------------------------
                                   (Mr. Anont Bukkanasuta)

                         Sign             signature              Witness
                              --------------------------------
                                 (Mr. Pairat Anuwongnukroh)

                                       9

<PAGE>

                       Land Plot for Land Sales Agreement

                                October 31, 2002

                                  NO. 003/2545

                                    Land Plot

                                    No. A57/1

                                   15-0-00 Rai

                                                                           [MAP]

<TABLE>
<S>                                                      <C>
S I L INDUSTRIAL LAND CO., LTD. The Seller               DSG INTERNATIONAL (THAILAND) CO., LTD. The Purchaser

Sign            signature                                Sign            signature
     ------------------------------- Managing Director        ------------------------------- Chief Operating Officer
          (Mr. Udom Siripanich)                                      (Mr. Wong Po Wah)        South East Asia

Sign            signature                                Sign            signature
     ------------------------------- Witness                  ------------------------------- Director Consultant
         (Mr. Anont Bukkanasuta)                                (Mr. Praphan Anuwongnukroh)

                                                         Sign             signature
                                                              ------------------------------- Witness
</TABLE><PAGE>

                                                                     EXHIBIT 4.2

                               SHARE PURCHASE DEED

Dated                                                                       2002

                                     PARTIES

                        ASSOCIATED HYGIENIC PRODUCTS INC.

                            DSG INTERNATIONAL LIMITED

                            NAPPIES NEWCO PTY LIMITED

                            APPP FINANCE PTY LIMITED

<PAGE>

DEED made                             2002

PARTIES   ASSOCIATED HYGIENIC PRODUCTS INC. a company incorporated in the State
          of Wisconsin, USA of 205 East Highland Drive, Oconto Falls, Wisconsin
          54154, United States of America ("AHPI")

AND       DSG INTERNATIONAL LIMITED a company incorporated in the British Virgin
          Islands under IBC No 54212 of 17/K Watson Centre, 16-22 Kung Yip
          Street, Kwai Chung, N.T., Hong Kong ("DSGI")

AND       NAPPIES NEWCO PTY LIMITED ACN 102 609 094 of 1-3 Lake Drive, Dingley
          Village, Victoria 3172, Australia ("Nappies Newco")

AND       APPP finance PTY LIMITED, a company incorporated in the State of
          Victoria Australia ACN 102 578 503 of Level 2, The Terrace, 155 George
          Street, Sydney NSW 2000, Australia ("Purchaser")

INTRODUCTION

A.   The Companies are incorporated under the Corporations Act 2001. They have
     issued capital as set out in Schedule 2 of this Deed. The Shares are fully
     paid.

B.   The Shares and their numbers and classes are legally and beneficially owned
     by the Vendors as set out against their names in Schedule 2.

C.   The Companies carry on the business of the manufacture, distribution and
     sale of nappies, diapers and adult incontinence products and related
     products in the Territory.

D.   The Vendors have agreed to sell the Shares to the Purchaser and the
     Purchaser has agreed to buy the Shares from the Vendors on the terms of
     this Deed.

<PAGE>

IT IS AGREED

1.   Definitions and Interpretation

1.1  Definitions

     In this Deed:

     (1)  "Accounts Date" means 31 December 2001;

     (2)  "Accrued Rights" means all accretions and rights attaching to or
          arising from the Shares at or after the date of this Deed including
          all rights to receive dividends except for the dividend specified in
          clause 5.3 and to receive or subscribe for shares, stock units, notes
          or options, declared, paid or issued by the Company;

     (3)  "Annual Accounts" means the statutory audited financial statements for
          the Company for the financial years ending on the Balance Dates;

     (4)  "Assessment" includes a notice, statement, letter, account or other
          document which notifies an assessment or determination of Tax or an
          amendment of a previous assessment or determination of Tax, or which
          requires payment of Tax;

     (5)  "ANZ" means Australia and New Zealand Banking Group Limited;

     (6)  "ANZ Debt" has the meaning given by clause 11.1(2);

     (7)  "Balance Dates" means 31 December 2001 and 31 December 2000, which is
          the last day of the Companies' last two financial years (as the
          context so requires);

     (8)  "Brand Names" means "Babylove", "Lullaby", "Cosies", "Cosifits",
          "Fairytale" and "Merit" in the Territory;

     (9)  "Brand Name IP" means the Intellectual Property relating to the Brand
          Names in the Territory;

     (10) "Brand Name Trademarks" mean the registered trademarks relating to the
          Brand Names as set out in Error! Reference source not found.;

     (11) "Brand Name IP Licence" means the royalty-free Intellectual Property
          licence to use the Brand Name IP (including the Brand Name Trademarks)
          in the Territory, for automatically-renewing ten (10) year terms, to
          be entered into between DSG NEWCO LIMITED as the owner of the Brand
          Name IP and as licensor, and the Purchaser as licensee in the form
          annexed as Annexure F;

<PAGE>

     (12) "Business Day" means a day that is not a Saturday, Sunday or any other
          day which is a public holiday or a bank holiday in the place where an
          act is to be performed or a payment is to be made;

     (13) "CHAMP" means Castle Harlan Australian Mezzanine Partners Pty Limited
          ACN 091 067 846 registered in Australia;

     (14) "Companies" means DSG Pty, NDSG and Nappies Newco and "Company" means
          either of them as the context so requires;

     (15) "Completion" means performance of the acts set out in clause 6 to be
          performed on the Purchase 1 Date, Purchase 2 Date and Purchase 3 Date;

     (16) "Conditions" means the conditions precedent specified in clause 4.1;

     (17) "Deed" means this document (including any Schedule or annexure to it);

     (18) "Disclosure Schedule" means Schedule 4;

     (19) "Directors" means the directors of each of the Companies as set out in
          Schedule 1

     (20) "Dollars" or "$" or "A$" means Australian dollars, the lawful currency
          of Australia;

     (21) "DSG Newco Limited" means DSG Newco Limited incorporated in the
          British Virgin Islands under IBC No.150425 of 17/F Watson Centre,
          16-22 Kung Yip Street, Kwai Chung, N.T. Hong Kong;

     (22) "DSG Pty" means DSG Pty Limited ACN 006 884 546, a company registered
          in the State of Victoria, Australia;

     (23) "DSG Pty Shares" means all of the issued share capital of DSG Pty, as
          listed in Part 1 of Schedule 2;

     (24) "DSG Board" means the board of directors of DSG Pty;

     (25) "Effective Date Balance Sheet" means the consolidated balance sheet of
          the Companies prepared as at close of business on the Effective Date;

     (26) "Effective Date" means close of business on 31 October 2002;

     (27) "Environmental Warranty" means the Warranty set in paragraph 27 of
          Schedule 3;

     (28) "Escrow Agent" means Chapman Tripp, Barristers and Solicitors ofLevel
          35, 23-29 Albert Street, PO Box 2206, Auckland, New Zealand;

<PAGE>

     (29) "Escrow Agreement" means the Agreement to be entered into by the
          Escrow Agent, the Vendors and the Purchaser in relation to the Share
          Sale Deed in the form annexed as Annexure G;

     (30) "Financial Statements" means the Annual Accounts and the Management
          Accounts;

     (31) "Independent Accountants" or "Expert" means a firm of Chartered
          Accountants agreed between the Vendors and the Purchaser or failing
          agreement determined by the President for the time being of the
          Institute of Chartered Accountants in Australia, Victorian Branch;

     (32) "Intellectual Property" means all trade marks, logos, service marks,
          trade names, brand names, business names, copyrights, designs,
          patents, inventions, processes and other technical know-how,
          confidential information and other rights in industrial property and
          applications for them or licence agreements or other arrangements
          under which a person has the right to use any of them;

     (33) "Internal Revenue Code" means the United State Internal Revenue Code
          of 1986, as amended, and any successor statutory provisions;

     (34) "Liability" includes a present, prospective or contingent liability
          incurred or arising out of events occurring prior to the relevant
          Purchase Date;

     (35) "Management Accounts" means the profit and loss statement, cashflow
          statement and balance sheet for each of the Companies for each of the
          months and years ending January 2002 to September 2002 and the
          consolidated profit and loss account, cashflow statement and balance
          sheet for each of the months and years ending January 2002 to
          September 2002;

     (36) "Marketable Security" means:

          (a)  debentures, stocks, shares or bonds of any government, of any
               local government authority or of any body corporate, association
               or society, and includes any right or option in respect of shares
               in any body corporate and any prescribed interest; and

          (b)  any right, whether actual, prospective or contingent, of any
               person to have issued to that person any of the securities
               described in paragraph (a) above, whether or not on payment of
               any money or other consideration;

     (37) "Material Adverse Change" means a material adverse change or event in
          relation to the structure, business, financial or trading position of
          the Company or in relation to the condition, assets or liabilities,
          profitability or prospects of the Company, as determined by the
          Purchaser;

<PAGE>

     (38) "Mortgages" includes legal mortgages and charges, equitable mortgages
          and charges, fixed or floating or both, liens, pledges and other
          security interests in respect of property;

     (39) "Nappies Newco Board" means the board of directors of Nappies Newco;

     (40) "Nappies Newco Shares" means all of the issued or to be issued share
          capital of Nappies Newco as set out in Schedule 2;

     (41) "NASDAQ Announcements" means announcements or releases relating to the
          sale and purchase of the Shares which in the reasonable opinion of the
          Vendor's Attorneys are required by the securities laws of the United
          States of America or regulations of the NASDAQ National Market System;

     (42) "NDSG" means Nappies DSG Pty Ltd ACN 057 041 399, a company registered
          in the State of Victoria, Australia;

     (43) "NDSG Board" means the board of directors of NDSG;

     (44) "NDSG Shares" means all of the issued share capital of NDSG, as listed
          in Part 2 of Schedule 2;

     (45) "Non-NASDAQ Announcements" means all public and internal information
          releases and announcements relating to the sale and purchase of the
          Shares which are not NASDAQ Announcements;

     (46) "P&G Agreement" means the patent licensing agreement between The
          Proctor & Gamble Company and DSGI dated 21 May 2001 with commencement
          date of 1 January 2001;

     (47) "Pacific Islands" means Fiji, the Solomon Islands, Samoa, the Cook
          Islands, Christmas Island, Easter Island, French Polynesia, Tonga,
          Vanuatu and New Caledonia;

     (48) "Parties" means the parties to this Deed;

     (49) "Property" means 1-5 Lake Drive, Dingley, Victoria 3172, Australia;

     (50) "Purchase 1 Completion" means the completion of the sale and purchase
          of the Purchase 1 Shares under this deed;

     (51) "Purchase 2 Completion" means the completion of the sale and purchase
          of the Purchase 2 Shares under this deed;

     (52) "Purchase 3 Completion" means the completion of the sale and purchase
          of the Purchase 3 Shares under this deed;

<PAGE>

     (53) "Purchase Dates" means the Purchase 1 Date, Purchase 2 Date and
          Purchase 3 Date and each of them as the context so requires;

     (54) "Purchase 1 Date" means 25 November 2002 or, if later, the date which
          is 5 Business Days after the date on which the Conditions have been
          satisfied or waived, or another date agreed in writing by the Vendors
          and the Purchaser and which completion of the sale and purchase of the
          Purchase 1 Shares occurs;

     (55) "Purchase 2 Date" means the date of completion of the sale and
          purchase of the Purchase 2 Shares, being the Purchase 1 Date subject
          to Purchase 1 having first completed;

     (56) "Purchase 3 Date" means the date of completion of the sale and
          purchase of the Purchase 3 Shares, being the Business Day after the
          Purchase 2 Date subject to Purchase 2 having first completed;

     (57) "Purchase Price" means the purchase price stated in clause 3.1;

     (58) "Purchase 1 Shares" means the DSG Pty Shares and 1 ordinary share in
          the capital of NDSG, to be acquired by the Purchaser;

     (59) "Purchase 2 Shares" means 1 ordinary share in the capital of NDSG, to
          be acquired by Nappies Newco;

     (60) "Purchase 3 Shares" means all of the issued share capital of Nappies
          Newco as set out in Schedule 2;

     (61) "Purchaser Sale" means a transfer of the shares of DSG Pty as a result
          of which any person would hold or acquire beneficial ownership of or
          over that number of shares which in aggregate confers 100 per cent of
          the voting rights normally exercisable at general meetings of DSG Pty
          provided however there shall be no Purchaser Sale as a result of any
          transfer between members of the Purchaser's Group, or due to a listing
          of shares on any recognised stock exchange;

     (62) "Purchaser Sale Shares" means shares in DSG Pty to be sold under a
          Purchaser Sale;

     (63) "Purchaser's Group" means the Purchaser and any of its Related Bodies
          Corporate or Related Entities and any investor in any fund or
          affiliate of any fund advised by CHAMP for the time being;

     (64) "Purchaser Warranties" means the warranties given by the Purchaser
          pursuant to clause 9.10;

     (65) "Related Body Corporate" means a body corporate that is related to
          another body corporate because it is:

<PAGE>

          (a)  the holding company of the other body corporate;

          (b)  a subsidiary of the other body corporate; or

          (c)  a subsidiary of a holding company of the other body corporate;

     (66) "Related Entities" means, in relation to a body corporate, any of the
          following:

          (a)  a promoter of the body;

          (b)  a relative, or de facto spouse, of such a promoter;

          (c)  a relative of a spouse, or of a de facto spouse, of such a
               promoter;

          (d)  a director or member of the body or of a related body corporate;

          (e)  a relative, or de facto spouse, of such a director or member;

          (f)  a relative of a spouse, or of a de facto spouse, of such a
               director or member;

          (g)  a body corporate that is related to the first-mentioned body;

          (h)  a beneficiary under a trust of which the first-mentioned body is
               or has at any time been a trustee;

          (i)  a relative, or de facto spouse, of such a beneficiary;

          (j)  a relative of a spouse, or of a de facto spouse, of such a
               beneficiary;

          (k)  a body corporate one of whose directors is also a director of the
               first-mentioned body;

          (l)  a trustee of a trust under which a person is a beneficiary, where
               the person is a related entity of the first-mentioned body
               because of any other application or applications of this
               definition;

     (67) "Shares" means the DSG Pty Shares, NDSG Shares and the Nappies Newco
          Shares;

     (68) "Stock" means all stock in trade, materials and supplies (including
          finished goods, raw materials, packaging and containers, and
          work-in-progress) in use or intended for use in connection with the
          business of DSG Pty as at close of business on the Effective Date
          including items in transit or on consignment with any customer or
          distributor of the business;

<PAGE>

     (69) "Subsidiary" means a body corporate (in this definition called the
          first body) that is a subsidiary of another body corporate because:

          (a)  the other body:

               (i)  controls the composition of the first body's board;

               (ii) is in a position to cast, or control the casting of, more
                    than one-half of the maximum number of votes that might be
                    cast at a general meeting of the first body; or

               (iii) holds more than one-half of the issued share capital of the
                    first body (excluding any part of that issued share capital
                    that carries no right to participate beyond a specified
                    amount in a distribution of either profits or capital); or

          (b)  the first body is a subsidiary of a subsidiary of the other body;

          For the purposes of the definition of "Subsidiary" without limiting by
          implication the circumstances in which the composition of a body
          corporate's board is to be taken to be controlled by another body
          corporate, the composition of the board is taken to be so controlled
          if the other body, by exercising a power exercisable (whether with or
          without the consent or concurrence of any other person) by it, can
          appoint or remove all, or the majority, of the directors of the
          first-mentioned body, and, for the purposes of this Deed, the other
          body is taken to have power to make such an appointment if:

          (c)  a person cannot be appointed as a director of the first-mentioned
               body without the exercise by the other body of such a power in
               the person's favour; or

          (d)  a person's appointment as a director of the first-mentioned body
               follows necessarily from the person being a director or other
               officer of the other body;

     (70) "Tax" means taxes, duties, fees, rates, charges and imposts of all
          kinds assessed, levied or imposed by the Commonwealth of Australia, a
          state or any other government, regional, municipal or local authority
          (Australian or overseas) and includes capital gains tax, fringe
          benefits tax, income tax, prescribed payments tax, superannuation
          guarantee charge, training guarantee levy, undistributed profits tax,
          payroll tax, goods and services tax, group tax, land tax, import duty,
          excise, stamp duty, municipal and water rates, interest on tax
          payments withholding tax and additional tax by way of penalty;

     (71) "Tax Warranties" means the Warranties which relate to Tax, as set out
          in paragraphs 11 and 12 of Schedule 3;

<PAGE>

     (72) "Territory" means Australia, New Zealand, Papua New Guinea and the
          Pacific Islands;

     (73) "Vendors" means AHPI and DSGI;

     (74) "Vendor Group" means the Vendors and their Related Bodies Corporate
          and a member of the Vendor Group means any one of them;

     (75) "Vendors' Attorneys" means Pillsbury Winthrop LLP of 50 Fremont
          Street, San Francisco, CA, USA;

     (76) "Warranties" means the warranties given by the Vendors as set out in
          Schedule 3.

1.2  Interpretation

     (1)  Reference to:

          (a)  one gender includes the others;

          (b)  the singular includes the plural and the plural includes the
               singular;

          (c)  a person includes a body corporate;

          (d)  a Party includes the Party's executors, administrators,
               successors and permitted assigns;

          (e)  a statute, regulation or provision of a statute or regulation
               ("Statutory Provision") includes:

               (i)  that Statutory Provision as amended or re-enacted from time
                    to time; and

               (ii) a statute, regulation or provision enacted in replacement of
                    that Statutory Provision; and

          (f)  money is to Australian dollars, unless otherwise stated.

     (2)  "Including" and similar expressions are not words of limitation.

     (3)  Where a word or expression is given a particular meaning, other parts
          of speech and grammatical forms of that word or expression have a
          corresponding meaning.

     (4)  Headings, the table of contents and the table of key data are for
          convenience only and do not form part of this Deed or affect its
          interpretation.

<PAGE>

     (5)  A provision of this Deed must not be construed to the disadvantage of
          a Party merely because that Party was responsible for the preparation
          of the Deed or the inclusion of the provision in the Deed.

     (6)  If an act must be done on a specified day which is not a Business Day,
          it must be done instead on the next Business Day.

1.3  Parties

     (1)  If a Party consists of more than 1 person, this Deed binds each of
          them separately and any 2 or more of them jointly.

     (2)  An obligation, representation or warranty in favour of more than 1
          person is for the benefit of them separately and jointly.

     (3)  A Party which is a trustee is bound both personally and in its
          capacity as a trustee.

     (4)  An obligation, warranty or representation by the Vendors binds each
          Vendor separately and any 2 or more of them jointly.

2.   Sale and Purchase

2.1  The Vendors agree to sell to the Purchaser and the Purchaser agrees to
     purchase from the Vendors the full legal and beneficial ownership in the
     Shares together with all Accrued Rights free from Mortgages and other
     encumbrances with effect from the Effective Date with the intention that
     the Purchaser is entitled to all trading profits and bears all trading
     losses of the Companies between the Effective Date and the Purchase 3 Date.

2.2  The Vendors shall sell to the Purchaser the Shares as follows and in
     accordance with clause 6 (the Completion of each sale and purchase
     transaction specified below being interdependent with each of the others
     and subject to each of the other transactions occurring on the relevant
     Purchase Date):

     (1)  the sale and purchase of the Purchase 1 Shares shall occur on the
          Purchase 1 Date;

     (2)  the sale and purchase of the Purchase 2 Shares shall occur on the
          Purchase 2 Date;

     (3)  the sale and purchase of the Purchase 3 Shares shall occur on the
          Purchase 3 Date.

<PAGE>

2.3  The Vendors hereby waive any pre-emptive rights they may have in relation
     to the Shares pursuant to the memorandum and articles of association of the
     Companies or otherwise.

3.   Purchase Price

3.1  The Purchase Price for the Shares is A$53,000,000 as adjusted pursuant to
     clause 3.3(4).

     No part of the Purchase Price is apportionable to the agreement in clause
     16.

3.2  The Purchase Price is apportioned between the Purchase 1 Shares, Purchase 2
     Shares and Purchase 3 Shares of the Companies as set out in Schedule 2.

3.3  Subject to the Vendors performing their obligations under clause 6, the
     Purchaser must pay the Purchase Price to the Vendors as follows:

     (1)  the Purchaser shall pay or procure the payment by DSG Pty to ANZ the
          outstanding balance owing to ANZ by DSG Pty at the Purchase 1 Date
          (after the amount referred to in clause 3.3(3) has been applied to
          reduce the balance owed to ANZ);

     (2)  the Purchaser shall pay to DSGI on behalf of DSG Pty the amount of any
          intercompany debt owed by DSG Pty and NDSG to the Vendor Group at the
          Effective Date (other than the intercompany debt owed by NDSG to DSG
          Pty and less any intercompany debt owed by the Vendor Group to the
          Companies) and DSGI shall procure the repayment of that debt to the
          Vendor Group;

     (3)  the Purchaser shall pay to DSG Pty on behalf of NDSG the amount of any
          intercompany debt owed by NDSG to DSG Pty at the Effective Date and
          the Vendors shall procure that such amount will be applied by DSG Pty
          in part satisfaction of the outstanding balance owed to ANZ by DSG Pty
          at the Purchase 1 Date;

     (4)  the Purchaser shall pay to the Vendors in accordance with any written
          directions given by the Vendors under clause 8, the balance, being
          A$53,000,000 less the aggregate of the ANZ Debt outstanding at the
          Effective Date after all cash on hand at the Effective Date has
          reduced that balance and the amount paid under clause 3.3(2) of this
          Deed.

3.4  The amounts paid by the Purchaser pursuant to clauses 3.3(1), 3.3(2) and
     3.3(3) will be treated as loans from the Purchaser to DSG Pty and NDSG.

<PAGE>

4.   Conditions Precedent

4.1  The obligations of the Parties which relate to the sale and purchase of the
     Shares are subject to the following conditions precedent:

     (1)  the Vendors having registered share transfers effecting the transfer
          of 2,000,000 Cumulative Preference Shares and 749,999 ordinary shares
          in DSG Pty by DSGI to AHPI, in the company books of DSG Pty and having
          provided evidence satisfactory to the Purchaser in relation to the
          same;

     (2)  the Vendors having registered share transfers effecting the transfer
          of one ordinary share held by each of Shamsher Kanji and Patrick Tsang
          in NDSG to DSGI in the company books of NDSG and having provided
          evidence satisfactory to the Purchaser in relation to the same;

     (3)  The Vendors having registered the share transfer effecting the
          transfer of one ordinary share held by Patrick Tsang in DSG Pty to
          DSGI, and consequently having registered a transfer of that one
          ordinary share from DSGI to AHPI in the company books of DSG Pty and
          having provided evidence satisfactory to the Purchaser in relation to
          the same;

     (4)  no Material Adverse Change having occurred;

     (5)  the Purchaser not having become aware of any material breach of
          Warranty (whether as a result of a notification under clause 5.3 or
          otherwise) since the date of this Deed or any materially misleading
          statement or omission having been made by the Vendors or the Directors
          in relation to the Companies;

     (6)  the loan facilities between the Companies and ANZ having been
          terminated and all amounts outstanding under them having been repaid
          and all obligations under them having been discharged;

     (7)  all other loan facilities, loans and similar arrangements between the
          Companies and Related Entities of the Companies having been
          terminated, all amounts outstanding under them having been repaid and
          all obligations under them having been discharged;

     (8)  AHPI and DSGI having provided evidence satisfactory to the Purchaser
          of releases of any charges which affect the Shares and any consents to
          the transactions under this Deed required by AHPI's or DSGI's
          financing documents;

     (9)  a new agreement between DSG Pty and The Proctor and Gamble Company
          regarding patent licensing arrangements in the form attached as
          Annexure A having been duly executed by the parties thereto;

<PAGE>

     (10) the assignment of the Brand Name IP (other than the Brand Name
          Trademarks) having been executed between DSG-Tek Limited, Disposable
          Soft-Goods UK plc and DSG Newco Limited;

     (11) the assignment of:

          (a)  the Brand Name Trademarks from DSG-Tek Limited to Disposable Soft
               Goods (UK) plc having been registered with IP Australia and the
               IP registration authority in New Zealand (IPONZ) so far as it
               relates to Australia and New Zealand; and

          (b)  the subsequent assignment of the Brand Name Trademarks from
               Disposable Soft Goods (UK) plc to DSG Newco Limited having been
               recorded by IP Australia and the IP registration authority in New
               Zealand (IPONZ), and DSG Newco Limited having been recorded as
               current registered holder of the Australian and New Zealand Brand
               Name Trademarks;

     (12) the Brand Name IP Licence in favour of DSG Pty having been duly
          executed by DSG Newco Limited and provided to the Purchaser;

     (13) the Vendor having obtained the written consent of Vlesia AG to the
          change of control of DSG Pty occurring pursuant to this Deed as
          required under the Distribution Agreement between Vlesia AG and DSG
          Pty;

     (14) the Purchaser having obtained notification from the Treasurer of the
          Commonwealth of Australia that no objection is made to the acquisition
          by the Purchaser of the Shares under the Foreign Acquisitions and
          Takeovers Act 1975 or if any conditions are imposed to such consent,
          such consent and conditions being granted on terms reasonably
          acceptable to the Purchaser;

     (15) the Purchaser having obtained sufficient bank financing to enable it
          to perform its obligations under this Deed and for future working
          capital purposes, on terms and conditions acceptable to the Purchaser;

     (16) new employment contracts being entered into between DSG Pty and each
          of Colin Lamond, Paul Llewellyn, Stuart Vohmann, Steve Carroll and
          Hugh Gilmartin substantially in the form of Annexure C.

4.2  Each of the Parties must use its best endeavours to obtain the fulfilment
     of the Conditions except for Conditions 4.1(14) to 4.1(16) inclusive by 21
     November 2002. The Purchaser must use its best endeavours to obtain the
     fulfilment of Conditions 4.1(14) to 4.1(16) (inclusive) by 21 November
     2002.

4.3  If:

<PAGE>

     (1)  any of the Conditions are not fulfilled to the reasonable satisfaction
          of the Purchaser or waived in writing by the Purchaser by 31 December
          2002 or a later date agreed in writing by the Vendors and the
          Purchaser; or

     (2)  any consent or approval required under any of the Conditions is not
          granted on terms acceptable to the Purchaser in its absolute
          discretion,

     then, if the Purchaser has complied with clause 4.2, the Purchaser may
     terminate this Deed at any time before Purchase 1 Completion by notice to
     the Vendors.

4.4  The Purchaser may waive any of the Conditions in clause 4.1 either
     unconditionally or on the basis that the waiver is only of the Condition as
     a condition precedent to Completion, in which case the Condition (other
     than Conditions 4.1(14) to 4.1(16) inclusive) becomes and remains a matter
     which the Vendors are obliged to use their best endeavours to satisfy.

4.5  If this Deed is terminated under clause 4.3:

     (1)  each Party must return immediately to the Party from which they were
          obtained all documents provided by that other Party pursuant to this
          Deed; and

     (2)  the Vendors must pay any cost reimbursements required to be paid under
          clause 17.6;

4.6  If this Deed is terminated under clause 4.3 then, in addition to any other
     rights, power or remedies provided by law:

     (1)  each Party is released from its obligations to further perform this
          Deed except for obligations of confidentiality and under clause 17.6;

     (2)  each Party retains the rights it has against any other Party in
          respect of any past breach.

5.   Procedure Prior to Purchase 3 Completion

5.1  Until Purchase 3 Completion the Vendors must, unless the Purchaser
     otherwise agrees, procure that each Company:

     (1)  carries on its business in a normal manner in accordance with standard
          commercial practice;

     (2)  uses all reasonable endeavours to preserve the goodwill of its
          business;

     (3)  maintains its assets at levels consistent with past practice over the
          12 months prior to the date of this Deed; and

<PAGE>

     (4)  carries out repairs and maintenance to the Company's plant and
          equipment and business premises in accordance with standard commercial
          practice and standards of maintenance.

5.2  Until Purchase 3 Completion the Vendors must, except with the prior consent
     in writing of the Purchaser, procure that each Company does not:

     (1)  increase, reduce or otherwise alter its share capital or grant any
          options for the issue of shares or other securities;

     (2)  declare or pay a dividend other than as permitted by clause 5.3;

     (3)  make a distribution or revaluation of assets except for the
          revaluation of Stock consistent with the accounting policies set out
          in Schedule 5;

     (4)  buy back any of its shares;

     (5)  create, incur or assume any debt, liability or obligation directly or
          indirectly whether an accrued liability, contingent liability or
          otherwise, other than in the ordinary course of trading consistent
          with past practice (excluding borrowings under the existing ANZ debtor
          financing facility of the Companies);

     (6)  grant any Mortgage;

     (7)  lend any money or provide any financial accommodation in excess of
          A$50,000 (other than in the ordinary course of trading);

     (8)  enter into any transaction with a Related Body Corporate or Related
          Entity other than as expressly contemplated by this Deed;

     (9)  acquire or dispose of any asset with a market value in excess of
          A$50,000 (other than in the ordinary course of trading);

     (10) employ or offer to employ any person on a salary of more than A$50,000
          or change or seek to change the conditions of employment of any person
          at managerial level or with a salary of more than A$50,000 other than
          as expressly contemplated by this Deed; or

     (11) institute or defend any proceedings in any court;

     (12) allow any Company to take or omit to take any action that would amount
          to or result in a breach of Warranty;

     (13) refuse or prevent the Companies from occurring or undertaking or all
          capital expenditure recommended to be undertaken by the chief
          operating officer of DSG Pty;

<PAGE>

     (14) pay any bonuses to employees or officers of the Companies;

     (15) change any accounting policies of the Companies including but not
          limited to the terms and timing of collection of receivables or the
          terms and timing of payments to creditors;

     (16) change any provisions or policies relating to accounting provisions,
          including but not limited to provisions for bad or doubtful debts;

     (17) procure that Nappies Newco does not enter into any transaction or
          arrangement other than the acquisition of one ordinary share in NDSG
          as set out in this Deed.

5.3  To the extent of retained earnings and as permitted by law, the Vendors may
     procure that before or on the Purchase 1 Date NDSG declares a franked
     dividend of A$1,000,000 (assuming all of the dividend is fully franked) to
     DSGI utilising substantially all of the balance outstanding in the NDSG
     franking account as at the Effective Date ("Pre-Completion Dividend"). Such
     dividend shall be accounted for as if it were paid prior to or as at the
     Effective Date and the intercompany loan amount owed by NDSG to DSGI shall
     be increased by the amount of the Pre-Completion Dividend in the Effective
     Date Balance Sheet.

5.4  The Vendors must promptly notify the Purchaser in writing of any material
     breach of any Warranty occurring or expected to occur during the period
     from the date of this Deed up to and including Purchase 3 Completion.

5.5  In the period prior to Purchase 3 Completion the Vendors must consult and
     procure that other officers of the Company consult with a representative of
     the Purchaser identified for the purposes of this clause ("Purchaser's
     Representative") on all material business decisions of the Company.

5.6  Without limiting clause 5.5, in the period prior to Purchase 3 Completion
     the Parties must use all reasonable efforts to prepare for a smooth
     transition of the Company and its business activities into the control of
     the Purchaser including that:

     (1)  the Vendors must procure that the Companies give the Purchaser
          reasonable access during normal business hours to the Companies'
          premises and make available to the Purchaser and its management
          personnel, consultants, accountants and lawyers such of the business
          records and contracts as the Purchaser, its management personnel,
          consultants, accountants or lawyers may reasonably request to assist
          in an orderly transfer of control of the Companies; and

     (2)  in relation to announcements:

          (a)  DSGI and the Purchaser must consult and agree on Non-NASDAQ
               Announcements that are to be made;

<PAGE>

          (b)  the Vendors must inform the Purchaser of the nature and content
               of any NASDAQ Announcements or releases it makes or intends to
               make and shall use its best endeavours to ensure such information
               is provided to Purchaser for comment prior to such NASDAQ
               Announcements being made or announced.

5.7  The Purchaser must ensure that all documents and information, together with
     any data, information and other documents provided to the Purchaser
     pursuant to this clause 5:

     (1)  are maintained in strict confidence by the Purchaser, its management
          personnel, consultants, accountants, lawyers and financiers in
          accordance with this Deed; and

     (2)  are used by the Purchaser, its management personnel, consultants,
          accountants, lawyers and financiers exclusively for purposes
          associated with the purchase and sale contemplated by this Deed.

6.   Procedure at Completion

6.1  Purchase 1 Completion will take place at 10.00am on the Purchase 1 Date at
     the offices of Chapman Tripp located at Level 35, 23-29 Albert Street
     Auckland, New Zealand.

6.2  At Purchase 1 Completion the Vendors must deliver (or, where appropriate,
     procure that the Companies deliver) to the Purchaser or the Purchaser's
     nominees:

     (1)  registrable transfers of the Purchase 1 Shares in favour of the
          Purchaser or the Purchaser's nominees;

     (2)  any declaration required by the Stamps Office;

     (3)  share certificates for the Purchase 1 Shares;

     (4)  deed of release of charge and Australian Securities and Investment
          Commission Form 312 (Notification of discharge or release of property
          from a charge) of registered charge No 819963 dated 30 August 2001
          given to ANZ over DSG Pty Ltd, duly executed by ANZ;

     (5)  deed of release of charge and Australian Securities and Investments
          Commission Form 312 (Notification of discharge or release of property
          from a charge) of registered charge No 819955 dated 30 August 2001
          given to ANZ over NDSG, duly executed by ANZ;

     (6)  discharge of mortgage 5187121F over certificate of title volume 9986
          Folio 515 (1-5 Lake Drive, Dingley, Victoria), duly executed by ANZ;

<PAGE>

     (7)  all documents of DSG Pty referred to in Schedule 4 or its appendices;

     (8)  all seals, minute books, statutory books and registers, books of
          account, trading and financial records, copies of taxation returns and
          other documents and papers of DSG Pty;

     (9)  authorities directed to DSG Pty's bankers authorising the operation of
          each of DSG Pty's bank accounts in accordance with the Purchaser's
          directions;

     (10) instruments in a form approved by the Purchaser's solicitors executed
          as a deed by the Vendors releasing the Companies from all claims of
          any kind which the Vendors or any one or more of them may have against
          the Companies as at and from the Purchase 1 Date save for claims
          pursuant to this Deed;

     (11) a management services agreement in the form annexed as Annexure E,
          duly executed by appropriate members of the Vendor Group; and

     (12) the royalty free Brand Name IP Licence in the form annexed as Annexure
          F duly executed by DSG Newco Limited;

     (13) the deed of restrictive covenant executed by Brandon Wang in the form
          annexed as Annexure F;

     (14) such other matters that the Purchaser reasonably requires in
          connection with the completion of the acquisition of the Shares in
          accordance with this Deed.

6.3  At Purchase 1 Completion the Vendors must procure:

     (1)  a direction in writing signed by all shareholders of DSG Pty and NDSG
          that the Board register the transfers of the Purchase 1 Shares (as
          applicable);

     (2)  approval by the DSG Pty Board of the transfers of the DSG Pty Shares
          and approval by the NDSG Board of the NDSG Shares comprising the
          Purchase 1 Shares to the Purchaser for registration (and to the extent
          not already approved, approval of the share transfers listed in
          Conditions 4.1(2) and 4.1(3));

     (3)  appointment to the Board of DSG Pty of those persons nominated by the
          Purchaser and resignations from those boards of those of the present
          directors whom the Purchaser requests to resign, and in the case of
          each director resigning an acknowledgment in such form as the
          Purchaser may require that he or she has no claim of any nature
          against DSG Pty (and vice versa except in relation to fraud or gross
          negligence) for salary, fees, compensation for loss of office or
          otherwise; and

     (4)  delivery into the control of the Purchaser of all keys and codes of
          whatever nature required to enter or gain access to any property of
          DSG Pty and without limitation

<PAGE>

          including all keys and combinations required to unlock each safe
          deposit box at a bank, cupboards, safes, storage rooms, filing
          cabinets and desk drawers, and all keys and codes necessary to gain
          access to computer programmes;

     (5)  that upon the release of the ANZ securities referred to in clauses
          6.2(4), 6.2(5) and 6.2(6) the Vendors will procure that they and the
          directors of the Companies do all things necessary to enable and
          permit the Purchaser's debt financiers to take security on the
          Purchase 1 Date over the assets and undertaking of NDSG and the
          Property.

6.4  Subject to Purchase 1 Completion occurring, on the Purchase 2 Date the
     Vendors shall procure that Nappies Newco shall acquire the Purchase 2
     Shares in respect of Purchase 2 Completion. On the Purchase 1 Completion,
     the Vendors must deliver to the Escrow Agent:

     (1)  undated registrable transfers of the Purchase 2 Shares in favour of
          Nappies Newco;

     (2)  the share certificates for the Purchase 2 Shares;

     (3)  all seals, minute books, statutory books and registers, books of
          account, trading and financial records, copies of taxation returns and
          other documents and papers of NDSG;

     (4)  delivery into the control of the Purchaser of all keys and codes of
          whatever nature required to enter or gain access to any property of
          NDSG and without limitation including all keys and combinations
          required to unlock each safe deposit box at a bank, cupboards, safes,
          storage rooms, filing cabinets and desk drawers, and all keys and
          codes necessary to gain access to computer programmes.

6.5  On the Purchase 1 Completion the Vendors must procure and deliver to the
     Escrow Agent in respect of the Purchase 2 Completion:

     (1)  a direction in writing signed by all shareholders of NDSG that the
          Board register the transfers of the Purchase 2 Shares (as applicable);

     (2)  approval by the NDSG Board of the transfers of the Purchase 2 Shares
          to Nappies Newco for registration and the actual registration of the
          transfer in the Company books of NDSG;

     (3)  appointment to the Board of NDSG of those persons nominated by the
          Purchaser and resignations from those boards of those of the present
          directors whom the Purchaser requests to resign, and in the case of
          each director resigning an acknowledgment in such form as the
          Purchaser may require that he or she has no claim of any nature
          against NDSG (and vice versa except in relation to fraud or gross
          negligence) for salary, fees, compensation for loss of office or
          otherwise as at the Purchase 2 Date;

<PAGE>

6.6  Each of the items in clause 6.5 shall be irrevocable and unconditional
     except that they are subject to the Purchase 1 Completion occurring.

6.7  On the Purchase 2 Date, Nappies Newco shall issue 4,050,000 ordinary shares
     credited as fully paid at A$1 per share to DSGI in consideration for the
     acquisition of the Purchase 2 Shares from DSGI and shall issue a share
     certificate in the name of DSGI in relation to the same, which shall be
     delivered to the Escrow Agent in accordance with clause 6.8(2).

6.8  On the Purchase 1 Completion, in respect of the Purchase 3 Completion the
     Vendors must deliver (or, where appropriate, procure that the Companies
     deliver) to the Escrow Agent:

     (1)  undated registrable transfers of the Purchase 3 Shares in favour of
          the Purchaser or the Purchaser's nominees;

     (2)  share certificates for the Purchase 3 Shares;

     (3)  all documents of Nappies Newco referred to in Schedule 3 or its
          appendices;

     (4)  all seals, minute books, statutory books and registers, books of
          account, trading and financial records, copies of taxation returns and
          other documents and papers of Nappies Newco;

     (5)  authorities directed to the Companies' bankers authorising the
          operation of each of Nappies Newco's and NDSG's bank accounts (if any)
          in accordance with the Purchaser's directions.

6.9  At Purchase 1 Completion the Vendors must procure and deliver to the Escrow
     Agent in respect of the Purchase 3 Completion:

     (1)  a direction in writing signed by all shareholders of Nappies Newco
          that the Nappies Newco Board register the transfers of the Purchase 3
          Shares (as applicable);

     (2)  approval by the Nappies Newco Board of the transfers of the Purchase 3
          Shares to the Purchaser for registration; and

     (3)  appointment to the Boards of Nappies Newco of those persons nominated
          by the Purchaser and resignations from those boards of those of the
          present directors whom the Purchaser requests to resign, and in the
          case of each director resigning an acknowledgment in such form as the
          Purchaser may require (and vice versa except in relation to fraud or
          gross negligence) that he or she has no claim of any nature against
          Nappies Newco and NDSG for salary, fees, compensation for loss of
          office or otherwise.

6.10 Each of the items in clause 6.9 shall be irrevocable and unconditional
     except that they are subject to the Purchase 1 and Purchase 2 Completions
     occurring.

<PAGE>

6.11 On the Purchase 3 Date and after repayment of the ANZ Debt to ANZ pursuant
     to clause 3.3(1), the Purchaser shall procure that DSG Pty pays to DSGI the
     sum of A$200,000. This payment shall be in full and final satisfaction of
     any and all accrued royalties and payments payable to the Vendor Group by
     DSG Pty in respect of any Proctor and Gamble Company patent fees for all
     and any periods up to the Effective Date.

6.12 On the Purchase 3 Date the parties shall procure that the Companies enter
     into an instrument in the agreed form executed as a deed releasing the
     Vendors from all claims of any kind which the Companies may have against
     the Vendors as at and from the Purchase 3 Date, save for claims pursuant to
     this Deed and claims for fraud or gross negligence.

6.13 Despite clause 6.2(8):

     (1)  the Vendors are entitled to retain after Completion copies of any
          records necessary for the Vendors to comply with their legal
          obligations including their tax obligations; but

     (2)  the Vendors must not disclose any confidential information contained
          in those records unless required by law or the regulations of any
          recognised stock exchange, or until the information becomes public
          (otherwise than by a breach by the Vendors of their obligations under
          this clause 6.11);

     (3)  the Vendors may have reasonable access on advance notice and during
          business hours to such of the books and records of the Companies (but
          only to the extent they relate to the period prior to Completion or in
          relation to any franking credits arising under clause 12.5) as are
          reasonably required by the Vendors for proper purposes. Any request
          for access shall be in writing and shall state particulars of the
          books and records requested and the purpose for which the access is
          requested.

6.14 At 9.00am (New Zealand time) on the Purchase 3 Date, the documents held by
     the Escrow Agent shall be automatically released from Escrow pursuant to
     the Escrow Agreement and dealt with in accordance with the terms of the
     Escrow Agreement.

7.   Continuance of Obligations after Completion

7.1  If any obligation of the Vendors is not performed at Completion, and
     regardless of whether it is waived as a condition or requirement of
     Completion, the Vendors remain obliged to perform that obligation.

8.   Payment

8.1  All money payable by the Purchaser to the Vendors must be paid to a bank
     account/s specified by the Vendors under a written direction of the Vendors
     provided by the

<PAGE>

     Vendors or the Vendors' Attorneys to the Purchaser a reasonable time before
     Completion. Payment of the Purchase Price to one or more of the Vendors
     shall be good discharge to the Purchaser of its obligations to pay the
     Purchase Price in respect of all of the Vendors and the Vendors shall sign
     any receipts reasonably required by the Purchaser in respect of payment of
     the Purchase Price.

8.2  All payments under this Deed must be made by telegraphic transfer from an
     authorised deposit-taking institution as defined in the Banking Act 1959,
     or by other mechanism agreed between DSGI and the Purchaser.

8.3  Following Completion, any payments made by a Party to another Party under
     this Deed will be an adjustment to the Purchase Price.

9.   Warranties

9.1  The Vendors jointly and severally warrant to the Purchaser in the terms of
     the Warranties, each of which is a separate Warranty in no way limited by
     any other Warranty.

9.2  Each of the Warranties applies at:

     (1)  the date set out at the commencement of this Deed; and

     (2)  the Purchase 3 Date.

9.3  A Warranty which refers to "so far as the Vendors are aware", the
     "knowledge, information and belief" of a Vendor or a Director, or that
     person's "knowledge", or contains words to that effect, and a Warranty that
     a Vendor or a Director or the Company is aware or is not aware of a matter,
     must be treated as including an additional warranty that the Vendors, the
     Directors or the Company (as the case may be) have made due and careful
     inquiries as to the matter.

9.4  The Vendors shall not be liable under the Warranties:

     (1)  in respect of any specific matters fully and fairly disclosed in
          Schedule 4 (Disclosure Schedule); and

     (2)  in respect of any product liability claims in respect of Stock sold
          ex-factory after the Effective Date.

9.5  Subject to clause 9.6 in the absence of fraud or wilful concealment on the
     part of the Vendors or the Vendors' agents or advisers, the liability of
     the Vendors in respect of:

     (1)  the Warranties (excluding the Tax and Environmental Warranties) shall
          terminate on the date 2 years after the Purchase 3 Date Purchase 3;
          and

<PAGE>

     (2)  the Tax Warranties and Environmental Warranty shall terminate on the
          date which is five years after the Purchase 3 Date,

     except in respect of any claim of which notice in writing providing such
     reasonable details of the circumstances as is reasonably practicable for
     the Purchaser to supply, is given to any of the Vendors or the Vendors'
     Solicitors before the applicable date.

9.6  In relation to the Warranties set out in paragraph 2 and paragraph 25.2 of
     Schedule 3 the limitations set out in clauses 9.5 and 9.7 shall not apply.

9.7  In the absence of fraud, or wilful concealment, the Purchaser cannot make
     any claim against the Vendors for a breach of any Warranty unless and until
     the aggregate amount of all claims in respect of that and any other breach
     of Warranty is A$250,000 (or A$500,000 in the case of the Environmental
     Warranty) or more but in relation to any such claim or claims the Purchaser
     shall be entitled to claim the entire aggregate amount and such claims
     shall not be limited to the excess over A$250,000.

9.8  Except in the case of fraud or wilful concealment, the maximum amount
     recoverable from the Vendors under the Warranties is AUD$30,000,000.

9.9  If the Vendors make payment to the Purchaser under the Warranties and the
     Companies recover part or all of the loss the subject of the Warranty Claim
     from an insurer then the Purchaser shall reimburse the Vendors to the
     extent of the proceeds received by the Companies from the insurer less any
     out of pocket costs of making the insurance claim (including any excess
     attributable to the making of that claim.)

9.10 The Purchaser warrants to the Vendors as follows:

     (1)  Corporate Organization: It is a private limited company duly
          incorporated, validly existing and in good standing under the laws of
          the State of Victoria, Australia and has the corporate power and
          authority to acquire and own the Shares. The Purchaser has conducted
          no business other than entering into this Deed and engaging in
          transactions contemplated by this Deed and no other corporate
          proceedings are necessary to authorise this Deed and the transaction
          contemplated hereby.

     (2)  Authorization of Agreement; No violation. The Board of Directors of
          the Purchaser has duly authorised the execution and delivery of this
          Deed.

     (3)  Litigation. There are no action, suits, proceedings or investigations,
          either at law or in equity, or before any commission or other
          administrative authority in Australia or and foreign jurisdiction, of
          any kind now pending or threatened or proposed in any manner, or any
          circumstances which should or could reasonably form the basis of any
          such action, suit, proceeding or investigation, involving the
          Purchaser or any of its properties or assets that (i) questions the
          validity of this Deed or (ii) seeks to delay, prohibit or restrict in
          any manner any action taken or to be taken by the Purchaser under this
          Deed.

<PAGE>

     (4)  Other than in connection with or in compliance with the provisions of
          Foreign Acquisitions and Takeovers Act 1975, no authorisation, consent
          or approval of, or filing with, any public body or authority is
          necessary for the consummation by the Purchaser of the transactions
          contemplated by this Deed.

9.11 The Vendors' liability under the Environmental Warranty shall be limited as
     follows:

     (1)  for the purpose of clause 9.7 the aggregate amount of all claims under
          the Environmental Warranty must not be less than A$500,000;

     (2)  to the extent that the claims under the Environmental Warranty exceed
          A$500,000 the Vendors shall only be liable for 50% of the excess over
          A$500,000.

10.  Stock

10.1 The value of Stock is determined in accordance with this clause 10 and
     Schedule 6.

10.2 The parties must procure that DSG Pty must at DSG Pty's expense carry out a
     full physical stocktake in accordance with Schedule 6. DSG Pty immediately
     after the close of business on the Effective Date in the presence of
     representatives of the Purchaser and compile a complete list of Stock.

10.3 The Vendors must provide a copy of the list referred to in clause 10.2 to
     the Purchaser on its completion within 5 Business Days of the Effective
     Date.

10.4 The values ascribed to each item of Stock must be the lower of cost and net
     realisable value calculated in accordance with Approved Accounting Standard
     AASB 1019 or as otherwise agreed between DSGI and the Purchaser. Any
     dispute in relation to the values ascribed to Stock shall be resolved in
     accordance with clause 11.

10.5 The Vendors and the Purchaser must use their reasonable endeavours to
     ensure that the stocktake of Stock is completed prior to the opening of
     business on the business day after the Effective Date.

11.  Effective Date Balance Sheet

11.1 The Parties will procure that DSG Pty will prepare the Effective Date
     Balance Sheet as soon as practicable after the Effective Date but in any
     event within 15 days after the Effective Date. The stocktake of DSG Pty
     pursuant to clause 10 shall be used to calculate the value of Stock for the
     Effective Date Balance Sheet. The Vendors and the Purchaser are entitled to
     be consulted in connection with the preparation of the Effective Date
     Balance Sheet. The Effective Date Balance Sheet will:

     (1)  be prepared as the relevant Effective Date;

<PAGE>

     (2)  be used to determine the amount of indebtedness of the Companies to
          ANZ ("ANZ Debt") at the Effective Date for the purpose of clause 3.3;
          and

     (3)  be prepared in accordance with the accounting policies set out in
          Schedule 5.

11.2 DSG Pty shall deliver to the Vendors and the Purchaser the Effective Date
     Balance Sheet for their review within 15 days of the Effective Date.

11.3 If the Vendors or the Purchaser dispute any item or calculation in the
     Effective Date Balance Sheet, they shall give notice containing full
     details of and reasons for the amount and nature of the dispute and any
     adjustments they believe should be made to reflect ANZ Debt and an
     Effective Date Balance Sheet prepared in accordance with Schedule 5 to the
     other Parties and DSG Pty within 15 Days after delivery of the Effective
     Date Balance Sheet by DSG Pty to them. The Vendors and the Purchaser shall
     then discuss the dispute and adjustments with a view to agreeing the
     adjustments to be made to the Effective Date Balance Sheet. In the absence
     of any notice pursuant to this clause being given by the Vendors or the
     Purchaser each of them (in respect of themselves only), the Vendors shall
     be deemed to have accepted the Effective Date Balance Sheet, on the day
     which is 16 Days from delivery of the Effective Date Balance Sheet to them.

11.4 If the items in dispute under clause 11.3 have not been agreed in writing
     by the Vendors and the Purchaser within 30 Days after delivery of the
     Effective Date Balance Sheet the item or items in dispute must be
     determined by the Independent Accountants.

11.5 The Independent Accountants must act on the following basis:

     (1)  the Independent Accountants will act as experts and not as
          arbitrators;

     (2)  their terms of reference must be to determine an amount which in their
          opinion represents the item or items in dispute and any adjustments to
          be made, as notified to them in writing by AHPI and DSGI (acting
          jointly) or the Purchaser within 30 days of their appointment;

     (3)  the Purchaser and the Vendors must provide the Independent Accountants
          with all information which they reasonably require and the Independent
          Accountants are entitled to base their opinion on such information and
          on the accounting and other records of the Companies, and the Vendors
          and Purchaser shall provide and procure that the Companies provide the
          Independent Accountants reasonable access during normal business hours
          to their own and the Companies' premises, books and records,
          accountants, advisers and personnel to assist and to enable the
          Independent Accountants to make their determination;

     (4)  if the Independent Accountants deem fit they may seek submissions from
          AHPI and DSGI (acting jointly) and the Purchaser as to the matters in
          dispute and the manner in which each party believes the adjustments
          should be made in order to

<PAGE>

          reflect ANZ Debt at the Effective Date and a Effective Date Balance
          Sheet which is prepared in accordance with Schedule 4. The Independent
          Accountants may interview key personnel and the parties shall
          co-operate and respond within the timeframe allocated by the
          Independent Accountants;

     (5)  the determination of the Independent Accountants will (in the absence
          of manifest error) be conclusive; and

     (6)  their costs will be borne by the Purchaser and the Vendors in equal
          one half shares.

12.  Taxation

12.1 If at any time the Commissioner of Taxation or other competent person or
     authority issues to any Company an Assessment in respect of a financial
     year or period ending on or prior to the Purchase 3 Date in which the Tax
     payable exceeds or is additional to the amount of Tax on the same account
     previously notified as payable or provided for in the Financial Statements
     for that financial year or period, then the Purchaser must immediately
     provide or must cause that Company to immediately provide the Vendors with
     a statement of the circumstances of the Assessment.

12.2 If so required by the Vendors, the Purchaser must permit the Vendors at
     their own cost and expense, but in the name of the Companies, to take any
     reasonable action the Vendors reasonably require to contest any Assessment
     and for this purpose the Purchaser must procure the Companies to make
     available to the Vendors the relevant records and books of account of the
     relevant Company. If the Vendors reasonably require the Assessment to be
     contested under this clause 12.2 then the Vendors shall be required to pay
     the excess or additional Tax (including interest and penalties) ultimately
     determined to be payable as soon as possible after the dispute has been
     finally determined or settled, as the case may be.

12.3 Subject to clause 12.4, the Purchaser must account or must procure that the
     Companies account to the Vendors for any refund of Tax received by the
     Purchaser or Companies under this clause 12.

12.4 The Purchaser and the Companies are entitled to deduct and set off the
     amount of any costs incurred by the Purchaser or the Companies pursuant to
     this clause 12, which the Vendors have not previously paid or caused to be
     paid, from the amount of any refund of Tax payable to the Vendors under
     clause 12.3.

12.5 If any additional franking credits of the Companies arise as a result of
     any payment by the Vendors pursuant to this clause 12 then to the extent of
     the additional franking credit amount ("Additional Franking Credits") in
     the event that a dividend utilising the Additional Franking Credits is
     paid, the Purchaser shall reimburse the Vendors or procure that the Company
     shall reimburse the Vendors an amount equal to the Additional

<PAGE>

     Franking Credits used by the Companies within 14 days of utilising the
     Additional Franking Credits. In determining when a dividend utilising the
     Additional Franking Credits is paid, the Franking accounts of the Companies
     will be deemed to be utilised on a first-in-first-out basis.

13.  Goods and Services Tax

13.1 In this clause:

     (1)  "GST" means GST as defined in the A New Tax System (Goods and Services
          Tax) Act 1999 as amended from time to time ("GST Act") or any
          replacement or other relevant legislation and regulations;

     (2)  words used in this clause which have a particular meaning in the "GST
          law" (as defined in the GST Act, and also including any applicable
          legislative determinations and Australian Taxation Office public
          rulings) have the same meaning, unless the context otherwise requires;

     (3)  any reference to GST payable by a party includes any corresponding GST
          payable by the representative member of any GST group of which that
          party is a member; and

     (4)  if the GST law treats part of a supply as a separate supply for the
          purpose of determining whether GST is payable on that part of the
          supply or for the purpose of determining the tax period to which that
          part of the supply is attributable, such part of the supply is to be
          treated as a separate supply.

13.2 The consideration expressed to be payable under any other clause of this
     Deed for any supply made under or in connection with this Deed excludes
     GST.

13.3 If GST is or will be imposed on a supply made by the Vendor under or in
     accordance with this Deed, the Vendor may, to the extent that the
     consideration otherwise provided for that supply under this Deed is not
     stated to include an amount in respect of GST on the supply:

     (1)  increase the consideration otherwise provided for that supply under
          this Deed by the amount of that GST; or

     (2)  otherwise recover from the Purchaser the amount of that GST.

13.4 Each party agrees to do all things, including providing tax invoices and
     other documentation, that may be necessary or desirable to enable or assist
     the other party to claim any input tax credit, adjustment or refund in
     relation to any amount of GST paid or payable in respect of any supply made
     under or in connection with this Deed.

<PAGE>

13.5 If a payment to a party under this Deed is a payment by way of
     reimbursement or indemnity and is calculated by reference to the GST
     inclusive amount of a loss, cost or expense incurred by that party, then
     the payment is to be reduced by the amount of any input tax credit to which
     that party is entitled in respect of that loss, cost or expense.

14.  Indemnities

14.1 The Vendors hereby jointly and severally indemnify the Purchaser and the
     Companies against any costs, claims, expenses, liabilities or losses,
     (including reasonable legal fees on a solicitor and own client basis) in
     relation to:

     (1)  any delay or failure to stamp and register the transfers of DSG Pty
          Shares from DSGI to AHPI in the company books of DSG Pty at the time
          of the transfers in 2001 including any cost, claims, expenses,
          liabilities or losses (including reasonable legal fees on a solicitor
          and own client basis) arising out of or in relation to the delay in
          registration in the DSG Pty company books and the transfer of
          ownership, including any Tax connected with the same;

     (2)  any delay or failure to stamp and register in Australia and New
          Zealand the assignments of the Brand Name Trademarks as detailed in
          condition 4.1(11);

     (3)  subject to the limitations in clause 9, any breach of the Warranties;

     (4)  any failure by the Vendors to fulfil their obligations under this Deed
          or due to any other covenant or representation of the Vendors in this
          Deed being untrue or inaccurate;

14.2 The Purchaser hereby indemnifies the Vendors against any costs, claims,
     expenses, liabilities or losses (including reasonable legal fees on a
     solicitor and own client basis) arising out of any breach by the Purchaser
     of its obligations under this Deed or the Purchaser Warranties.

15.  Continuing Obligations

15.1 The Vendors must in consultation with the Company and the Purchaser use
     their best endeavours to encourage the Companies current clients customers
     and suppliers and new clients customers or suppliers to utilise the goods
     and services of the Companies business.

15.2 Subject to clause 9, each obligation and warranty of a Party (except an
     obligation fully performed or unconditionally waived by the Purchaser in
     writing at the relevant Completion) continues in force despite Completion.

15.3 The Vendors must provide any assistance the Purchaser reasonably requires
     to create, re-create or rectify any books or records of the Companies.

<PAGE>

15.4 Without the prior written consent of AHPI (which consent may not be
     unreasonably withheld), the Purchaser shall not make, and shall not allow
     any other person treated as the "purchasing corporation" within the meaning
     of Section 338(g)(2) of the Internal Revenue Code to make, an election
     under Section 338 of the Internal Revenue Code with respect to the
     acquisition of the DSG Pty Shares pursuant to this Deed.

16.  Restraint

16.1 The Vendors (for themselves and as agents and attorneys for the Vendor
     Group) jointly and severally agree (on behalf of themselves and the Vendor
     Group) with the Purchaser that in order to protect the goodwill of the
     Companies and their respective businesses the Vendors and the Vendor Group
     will not either directly or indirectly at any time:

     (1)  within each of the following areas:

          (a)  Australia, New Zealand, Papua New Guinea and the Pacific Islands;

          (b)  Australia, New Zealand and Papua New Guinea;

          (c)  Australia and New Zealand;

          (d)  Australia;

          (e)  Victoria, New South Wales, Queensland, Western Australia and
               South Australia;

          (f)  Victoria, New South Wales, Queensland and Western Australia;

          (g)  Victoria and New South Wales; and

          (h)  Victoria;

     (2)  for a period up to and including the Purchase 3 Date ("Pre-completion
          Period") and:

          (a)  of 5 years after the Purchase 3 Date;

          (b)  of 4 years after the Purchase 3 Date;

          (c)  of 3 years after the Purchase 3 Date;

          (d)  of 2 years after the Purchase 3 Date;

          (e)  of 1 year after the Purchase 3 Date.

<PAGE>

     either:

     (3)  canvass or solicit (other than, during the Pre-completion Period, for
          the Companies):

          (a)  orders for goods or services supplied by the Companies in the 12
               months prior to the Purchase 3 Date, or

          (b)  business the same as or similar to the business of the Companies
               in the 12 months prior to the Purchase 3 Date,

          from any person who is or has been in the 12 months prior to the
          Purchase 3 Date a client or customer of the Companies;

     or:

     (4)  engage or be concerned or interested in any business:

          (a)  the same as or similar to the business of the Companies on the
               Purchase 3 Date;

          (b)  the same as or similar to a material part of the business of the
               Companies on the Purchase 3 Date;

          (c)  competitive with the business of the Companies on the Purchase 3
               Date; or

          (d)  competitive with a material part of the business of the Companies
               on the Purchase 3 Date;

          (e)  the manufacture, direct distribution or sale of diapers, nappies,
               adult incontinence products, training pants and related products;

          other than, during the Pre-completion Period, the business of the
          Companies;

     (5)  solicit for a period of 5 years after the Completion within or outside
          the areas specified in clause 16.1(1) the services of any person who
          was an employee of either Company in the 3 months prior to the
          Purchase 3 Date or any person who becomes a former employee of either
          Company after the Purchase 3 Date and in particular the services of
          Colin Lamond, Stuart Vohmann, Hugh Gilmartin, Steve Carroll, Ken Chen,
          Carl Neys, Germaine Wong, Greg Brown or Paul Llewellyn.

16.2 The agreement by the Vendors in clause 16.1 applies to any of them acting:

     (1)  either alone or in partnership or association with another person;

     (2)  as principal, agent, representative, director, officer or employee;

<PAGE>

     (3)  as member, shareholder, debenture holder, note holder or holder of any
          other security;

     (4)  as trustee of or as a consultant or adviser to any person (other than
          the Purchaser); or

     (5)  in any other capacity.

16.3 Clause 16.1 has effect as comprising each of the separate provisions which
     results from each combination of a capacity referred to in clause 16.2, an
     area referred to in clause 16.1(1), a period referred to in clause 16.1(2)
     and a category of conduct referred to in clause 16.1(3) or 16.1(4). Each of
     these separate provisions operates concurrently and independently.

16.4 If any separate provision referred to in clause 16.3 is unenforceable,
     illegal or void that provision is severed and the other provisions remain
     in force. Each of the Vendors acknowledges that each of those separate
     provisions is a fair and reasonable restraint of trade.

16.5 This clause 16 does not preclude the Vendors from owning Marketable
     Securities of a corporation or trust which are listed on a recognised stock
     exchange in Australia or elsewhere provided that they hold not more than 5%
     in the aggregate of the total Marketable Securities of any corporation or
     trust carrying on a business of a type referred to in this clause 16.

16.6 Each of the Vendors covenants to the Purchaser that, subject to Purchase 3
     Completion occurring, that it will not sell the whole or substantially the
     whole of its business or undertaking to any person after the date of this
     Deed unless it has procured that the buyer provides a covenant to the
     Purchaser in substantially the same terms as this Clause 16 on or prior to
     completion of the sale on the basis that the covenant shall expire on the
     date which is 5 years from the Purchase 3 Date.

16.7 The parties agree that the provisions of this Clause 16 shall cease to
     apply to any Vendor in the event of a sale of all the shares in that Vendor
     to a competitor of DSG Pty in Australia providing that the competitor has
     been a competitor of DSG Pty in Australia for not less than 6 months, prior
     to the date of the sale of shares.

17.  Default

17.1 Definitions

     In this clause 17 "Defaulting Party" has the meaning given to it in clauses
     17.2 and 17.3.

<PAGE>

17.2 Events of Default

     Any Vendor or the Purchaser ("Subject Party") is a Defaulting Party for the
     purposes of this clause 17.2 if any of the following apply:

     (1)  the Subject Party fails to carry out any material provision of this
          Deed and does not remedy that failure within 7 days after notice to
          the Subject Party requiring it to be remedied;

     (2)  any other event occurs or circumstance arises which, is likely
          materially and adversely to affect the ability of the Subject Party to
          perform all or any of its joint or several material obligations under
          or otherwise to comply with the material terms of this Deed;

     (3)  the Subject Party suspends payment of its debts; or

     (4)  where the Subject Party is a body corporate:

          (a)  the Subject Party becomes an externally-administered body
               corporate under the Corporations Act 2001;

          (b)  steps are taken by any person towards making the Subject Party an
               externally-administered body corporate;

          (c)  a controller (as defined in section 9 of the Corporations Act
               2001) is appointed of any of the property of the Subject Party or
               any steps are taken for the appointment of such a person;

          (d)  the Subject Party is taken to have failed to comply with a
               statutory demand within the meaning of section 459F of the
               Corporations Act 2001;

          (e)  a resolution is passed for the reduction of capital of the
               Subject Party or notice of intention to propose such a resolution
               is given, without the prior written consent of the other Party;

          (f)  in the case of a Subject Party incorporated outside Australia,
               any equivalent or substantially equivalent situation occurs to
               those detailed in clauses 17.2(4)(a) to 17.2(4)(d) in that
               Company's jurisdiction of incorporation; or

          (g)  chapter 11 proceedings or procedures are commenced in the United
               States of America in respect of a Subject Party;

          (h)  a receiver, administrator, liquidator or other insolvency manager
               is appointed over the Subject Party's assets and undertaking or
               any part of them or steps are instigated to wind up or liquidate
               or apply for winding up or liquidation of the Subject Party.

<PAGE>

17.3 Termination for Default

     If any of the Vendors or the Purchaser is a Defaulting Party the Purchaser
     or the Vendors, as the case may be, may at any time (without prejudice to
     its other rights and remedies under this Deed or at law) terminate this
     Deed by giving notice in writing to the other Parties. Termination pursuant
     to this clause 17.3 does not prejudice any claim which the Party who is not
     in default may have against the other Parties at the time of termination.

17.4 Extension of Purchase 1 Date

     If a Party gives a notice referred to in clauses 17.2(1) within 7 days
     prior to the Purchase 1 Date, then the Purchase 1 Date is extended to
     coincide with the expiry of the notice period.

17.5 Rights on Termination by Purchaser

     If the Purchaser terminates this Deed under either clause 4.3, clause 17.3
     or any other provision of this Deed, the Vendors must, without prejudice to
     any other rights and remedies of the Purchaser, comply with clause 17.6.

17.6 Costs on Default

     If the Vendors fail to satisfy any of the conditions in clause 4.1,
     resulting in the Purchaser terminating this Deed (save where such
     termination arises due to the Purchaser's failure to satisfy conditions
     4.1(14) to 4.1(16) inclusive, or if this Deed is terminated under any other
     provision of this Deed including clause 17.3 or clause 18.1 attributable to
     a default of the Purchaser, the Vendors must on demand pay to the Purchaser
     or as the Purchaser directs actual third party costs and out of pocket
     expenses incurred by the Purchaser or CHAMP in connection with their
     investigation, due diligence, negotiation and engagement of advisers in
     relation to this Deed and the acquisition of the Shares, or shall pay such
     costs directly to parties as directed in writing by the Purchaser or CHAMP,
     up to a maximum amount of A$500,000.

     Should notice be served on more than one Party in connection with the same
     breach or default the Liability of those Parties under this clause 17 is
     joint and several.

17.7 This Deed may not be terminated by any Party after Completion.

18.  Termination

18.1 In the event that Purchase 3 Completion has not occurred on or before 31
     December 2002 then the Vendors or the Purchaser may terminate this Deed by
     giving 7 days' prior written notice of termination to the other parties.

<PAGE>

19.  Right of First Offer

19.1 In the event that the Purchaser wishes to effect a Purchaser Sale then it
     shall give notice ("the Transfer Notice") to DSGI specifying its intention
     or desire to effect a Purchaser Sale.

19.2 DSGI shall have a period of 20 days from service of the Transfer Notice (or
     such other time period as agreed between the Purchaser and DSGI) to
     exercise its right of first offer in relation to the Purchaser Sale Shares
     by serving written notice on the Purchaser confirming its interest in
     acquiring the Purchaser Sale Shares and the purchase price and key terms on
     which it is prepared to effect a Purchaser Sale. In the absence of such
     notice DSGI shall be deemed to have elected not to have exercised its right
     of first offer and the Purchaser may offer the Purchaser Sale Shares (or
     any part of them) to any other person on any terms and conditions that it
     deems fit. The Purchaser shall be entitled to use its absolute discretion
     as to whether or not to proceed with any offer from DSGI and may consider
     offers from other persons (either in conjunction with or separate from any
     offer by DSGI) after the expiry of the 20 day period set out in this clause
     19.2.

19.3 The Purchaser shall not sell or enter into an unconditional agreement to
     sell the Purchaser Sale Shares (or any part of them) to a third party until
     the 20 day period in clause 19.2 has expired.

20.  Confidentiality

20.1 Subject to clause 20.2, each Party must up to and following Purchase 3
     Completion keep confidential any information about the existence and terms
     of this Deed (and any draft of this Deed) and any information obtained
     under or pursuant to this Deed and must not disclose such information to
     any person except:

     (1)  any director, officer, employee, adviser or associated entity of the
          Party that has a clear need to use that information;

     (2)  pursuant to any applicable law or order or rule of any court,
          regulatory body, governmental agency or stock exchange, including for
          the avoidance of applicable doubt, securities laws of the United
          States of America or the regulations of the NASDAQ National Market
          System; or

     (3)  the Purchaser shall be entitled to disclose such information to CHAMP
          funds and their investors or its financiers.

20.2 In relation to Non-NASDAQ Announcements no Party will make any public or
     press announcement or statement concerning this Deed or Completion without
     the prior approval of the other parties. The Purchaser and the Vendors must
     in good faith agree at or before Purchase 1 Completion on the form of any
     Non-NASDAQ press announcement or public statement that they will each make.

<PAGE>

20.3 In relation to NASDAQ Announcements the Vendors shall inform the Purchaser
     in advance of the nature and content of such announcements and shall use
     its best endeavours to ensure that the content and form of any NASDAQ
     announcement is provided to the Purchaser for comment before the making of
     or release of the relevant NASDAQ Announcement.

20.4 Without limiting clause 20.1 but subject to clauses 20.2 and 20.3, the
     Vendors and Directors must keep confidential and must use its best
     endeavours to procure that its directors and employees keep confidential
     all information concerning the Companies and the Companies' business which
     is in their knowledge, possession or control and must not disclose such
     information to any person except pursuant to any applicable law or order or
     rule of any court, regulatory body, governmental agency or stock exchange.

21.  Time of the Essence

21.1 Time is of the essence of this Deed.

21.2 If the Parties agree to vary a time requirement, the time requirement so
     varied is of the essence of this Deed.

21.3 An agreement to vary a time requirement must be in writing.

22.  Further Assurance

22.1 Each Party must promptly at its own cost do all things (including executing
     all documents) necessary or desirable to give full effect to this Deed.

23.  Severability

23.1 If anything in this Deed is unenforceable, illegal or void then it is
     severed and the rest of this Deed remains in force.

24.  Entire Understanding

24.1 This Deed:

     (1)  is the entire agreement and understanding between the parties on
          everything connected with the subject matter of this Deed; and

     (2)  supersedes any prior agreement or understanding on anything connected
          with that subject matter.

<PAGE>

25.  Variation

25.1 An amendment or variation to this Deed is not effective unless it is in
     writing and signed by the Parties.

26.  Counterparts

26.1 This Deed may be executed in any number of counterparts. Each counterpart
     is an original but the counterparts together shall constitute one and the
     same agreement.

27.  Waiver

27.1 A Party's failure or delay to exercise a power or right does not operate as
     a waiver of that power or right.

27.2 The exercise of a power or right does not preclude either its exercise in
     the future or the exercise of any other power or right.

27.3 Waiver of a power or right is effective only in respect of the specific
     instance to which it relates and for the specific purpose for which it is
     given.

28.  Costs and Outlays

28.1 Subject to clause 17.6, each Party must pay its own costs and outlays
     connected with the negotiation, preparation and execution of this Deed.

28.2 The Purchaser must pay all stamp duty and other government imposts payable
     in connection with this Deed (save any stamp duty or other government
     imposts in connection with any transfers of the Shares to AHPI and DSGI
     which shall be payable by the Vendors) and all other documents and matters
     referred to in this Deed when due or earlier if requested in writing by the
     Vendors.

29.  Notices

29.1 A notice or other communication connected with this Deed ("Notice") has no
     legal effect unless it is in writing.

29.2 In addition to any other method of service provided by law, the Notice may
     be:

     (1)  sent by prepaid registered post to the address for service of the
          addressee, if the address is in Australia and the Notice is sent from
          within Australia;

<PAGE>

     (2)  sent by prepaid ordinary mail to the address for service of the
          addressee, if the address is in Australia and the Notice is sent from
          within Australia;

     (3)  sent by prepaid airmail to the address for service of the addressee,
          if the address is outside Australia or if the Notice is sent from
          outside Australia;

     (4)  sent by facsimile to the facsimile number of the addressee; or

     (5)  delivered at the address for service of the addressee.

29.3 A certificate signed by a Party giving a Notice or by an officer or
     employee of that Party stating the date on which that Notice was sent or
     delivered under clause 29.2 is prima facie evidence of the date on which
     that Notice was sent or delivered.

29.4 If the Notice is sent or delivered in a manner provided by clause 29.2, it
     must be treated as given to and received by the Party to which it is
     addressed:

     (1)  if mailed from within Australia to an address in Australia, on actual
          delivery to that address as evidenced by Australia Post documentation;

     (2)  if mailed from within Australia to an address in Australia, on the 2nd
          Business Day (at the address to which it is mailed) after mailing;

     (3)  if mailed to an address outside Australia or mailed from outside
          Australia, on the 5th Business Day (at the address to which it is
          mailed) after mailing;

     (4)  if sent by facsimile before 5 p.m. on a Business Day at the place of
          receipt, on the day it is sent and otherwise on the next Business Day
          at the place of receipt; or

     (5)  if otherwise delivered before 5 p.m. on a Business Day at the place of
          delivery, upon delivery, and otherwise on the next Business Day at the
          place of delivery.

29.5 Despite clause 29.4(4):

     (1)  a facsimile is not treated as given or received unless at the end of
          the transmission the sender's facsimile machine issues a report
          confirming the transmission of the number of pages in the Notice; and

     (2)  a facsimile is not treated as given or received if it is not received
          in full and in legible form and the addressee notifies the sender of
          that fact within 3 hours after the transmission ends or by 12 noon on
          the Business Day on which it would otherwise be treated as given and
          received, whichever is later.

29.6 If a Notice is served by a method which is provided by law but is not
     provided by clause 29.2, and the service takes place after 5 p.m. on a
     Business Day, or on a day which is not a Business Day, it must be treated
     as taking place on the next Business Day.

<PAGE>

29.7 A Notice sent or delivered in a manner provided by clause 29.2 must be
     treated as validly given to and received by the Party to which it is
     addressed even if:

     (1)  the addressee has been liquidated or deregistered or is absent from
          the place at which the Notice is delivered or to which it is sent; or

     (2)  the Notice is returned unclaimed.

29.8 The Vendors' address for service and facsimile number are:

     Name          :   Associated Hygienic Products Inc.
     Attention     :   Peter Chang
     Address       :   205 East Highland Drive, Oconto Falls, Wisconsin 54154,
                       United States of America
     Facsimile No. :   +1 (920) 846 3026

     Name          :   DSG International Limited
     Attention     :
     Address       :   17/F Watson Centre 16-22 Kung Yip Street Kwai Chung,
                       N.T. Hong Kong
     Facsimile No. :   + (852) 2480 4491

     Copy to:

     Name          :   Robert E. Sullivan
     Attention     :   Pillsbury Winthrop LLP
     Address       :   50 Fremont Street
                       San Francisco, CA 94105, USA

     Facsimile No. :   +1 (415) 983 1200

     The Purchaser's address for service and facsimile number are:

     Name          :   APPP Finance Pty Limited
     Attention     :   William Ferris/Cameron Buchanan
     Address       :   Level 2, The Terrace, 155 George Street
                       Sydney NSW 2000  Australia

     Facsimile No. :   +61 (0)2 9247 5551

29.9 A Party may change its address for service or facsimile number by giving
     Notice of that change to each other Party.

29.10 If the Party to which a Notice is intended to be given consists of more
     than 1 person then the Notice must be treated as given to that Party if
     given to any of those persons.

29.11 Any Notice by a Party may be given and may be signed by its solicitor.

<PAGE>

29.12 Any Notice to a Party may be given directly to its attorney by any of the
     means listed in clause 29.2 to the attorney's business address or facsimile
     number whether or not such notice has also been served on the relevant
     Party.

30.  Governing Law and Jurisdiction

30.1 The law of Victoria, Australia governs this Deed.

30.2 The Parties submit to the exclusive jurisdiction of the courts of Victoria
     and of the Commonwealth of Australia.

<PAGE>

                                   Schedule 1

                                  The Companies

 1.   Name:                       DSG Pty Ltd

 2.   ACN:                        006 884 546

 3.   Australian Business No:     33 006 884 546

 4.   State of Registration:      Victoria, Australia

 5.   Date of Registration:       19 November 1987

 6.   Registered Office:          1-3 Lake Drive, Dingley Village  VIC  3172

 7.   Issued & Paid up Capital:   2,000,000 Cumulative Preference Shares
                                  750,000 Ordinary Shares

 8.   Directors:                  Brandon WANG Shui Ling
                                  Shamsher KANJI
                                  Patrick TSANG King Yu

 9.   Company Secretaries:        Patrick TSANG King Yu
                                  Carl Alexander NEYS

10.   Shareholders:               As detailed in Schedule 2

 1.   Name:                       Nappies DSG Pty Limited

 2.   ACN:                        057 041 399

 3.   Australian Business No:     33 006 884 546

 4.   Place of Registration:      Victoria, Australia

 5.   Date of Registration:       4 August 1992

 6.   Registered Office:          c/- DSG Pty Ltd, 1-3 Lake Drive,
                                  Dingley Village  VIC  3172

<PAGE>

 7.   Issued & Paid up Capital:   2 Ordinary Shares

 8.   Directors:                  Brandon WANG Shui Ling
                                  Shamsher KANJI
                                  Patrick TSANG King Yu

 9.   Company Secretaries:        Patrick TSANG King Yu
                                  Carl Alexander NEYS

10.   Shareholders:               As detailed in Schedule 2

 1.   Name:                       Nappies Newco Pty Limited

 2.   ACN:                        102 609 094

 3.   Australian Business No:     None

 4.   Place of Registration:      Victoria, Australia

 5.   Date of Registration:       24 October 2002

 6.   Registered Office:          c/- DSG Pty Ltd, 1-3 Lake Drive,
                                  Dingley Village  VIC  3172

 7.   Issued & Paid up Capital:   2 Ordinary Shares

 8.   Directors:                  Peter Chang
                                  Colin Lamond

 9.   Company Secretaries:        None

10.   Shareholders:               As detailed in Schedule 2

<PAGE>

                                   Schedule 2

                                   The Shares

                          Introduction A and B, 1.1(62)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
                                                DSG Pty Ltd
----------------------------------------------------------------------------------------------------------
                          Beneficial                   Class of        Total       Purchase
                           Owner of         Number      Shares     Subscription      Price      Timing of
       Vendor               Shares        of Shares      Held        Price A$         A$       Acquisition
----------------------------------------------------------------------------------------------------------
<S>                   <C>                 <C>         <C>            <C>          <C>          <C>
Associated Hygienic       Associated      2,000,000   Cumulative     2,000,000     2,100,000   Purchase 1
Products Inc          Hygienic Products               Preference                                  Date
                             Inc                        Shares
----------------------------------------------------------------------------------------------------------
Associated Hygienic       Associated        750,000    Ordinary        750,000    42,799,998   Purchase 1
Products Inc          Hygienic Products                 Shares                                    Date
                             Inc
----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
                                         Nappies DSG Pty Ltd
----------------------------------------------------------------------------------------------------
                      Beneficial                                  Total       Purchase
                       Owner of       Number      Class of    Subscription     Price      Timing of
      Vendor            Shares      of Shares   Shares Held     Price A$         A$      Acquisition
----------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>       <C>               <C>      <C>         <C>
DSG International        DSG            1         Ordinary          1        4,050,000   Purchase 1
Limited             International                   Share                                   Date
                       Limited
----------------------------------------------------------------------------------------------------
DSG International        DSG            1         Ordinary          1                    Purchase 2
Limited             International                  Share                                    Date
                       Limited
----------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
                                         Nappies Newco Pty Limited
----------------------------------------------------------------------------------------------------------
                      Beneficial                        Class of       Total        Purchase
                       Owner of         Number of        Shares     Subscription     Price      Timing of
      Vendor            Shares            Shares          Held        Price A$         A$      Acquisition
----------------------------------------------------------------------------------------------------------
<S>                 <C>             <C>                 <C>        <C>             <C>         <C>
DSG International        DSG        2 (at signing and   Ordinary         2             2       Purchase 3
Limited             International       Purchase 3       Share                                    Date
                        Limited        Completion)
----------------------------------------------------------------------------------------------------------
DSG International        DSG          4,050,000 (at     Ordinary         in        4,050,000   Purchase 3
                    International       Purchase 2       Shares    consideration                  Date
                        Limited        Completion)                  of transfer
                                                                     of 1 NDSG
                                                                       Share
----------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                   Schedule 3

                                   Warranties

                                    Clause 9

The Vendors, give, and shall be deemed to give the Warranties set out in this
Schedule 3 such that each reference to "the Company shall be deemed to be a
reference to each of DSG Pty, NDSG and Nappies Newco.

1.   Due Diligence

1.1  So far as the Vendors are aware, the written responses to questions put to
     officers and employees of the Company by the Purchaser, the Purchaser's
     lawyers and accountants and the Purchaser' consultants in carrying out due
     diligence investigations into the Company's affairs have been true,
     accurate, and not misleading in all material respects.

1.2  So far as the Vendors are aware, there were no material documents relating
     to the issues examined by the Purchaser, the Purchaser's lawyers and
     accountants and the Purchaser's consultants in the course of due diligence
     other than those contained in the materials provided by the Company.

1.3  All written information and documents supplied to the Purchaser, the
     Purchaser's lawyers and the Purchaser's consultants in the course of due
     diligence are and remain true, and correct and not misleading in all
     material respects.

2.   The Shares

2.1  AHPI is the registered holder and beneficial owner of all of the DSG Pty
     Shares at the date of this Deed and up until the Purchase 1 Completion and
     has power to transfer title to the DSG Pty Shares.

2.2  DSGI is the registered holder and beneficial owner of all of the NDSG
     Shares at the date of this Deed and up until the Purchase 1 Completion and
     50 per cent of the NDSG Shares from Purchase 1 Completion up until the
     Purchase 2 Completion and has power to transfer title to the NDSG Shares.

2.3  DSGI is the registered holder and beneficial owner of all of the Nappies
     Newco Shares at the date of this Deed and at all times thereafter up until
     the Purchase 3 Completion and has power to transfer title to the Nappies
     Newco Shares.

<PAGE>

2.4  At the Purchase 2 Date, the Shares will be fully paid and are free from all
     Mortgages and encumbrances and the NDSG Shares comprise the whole of the
     issued capital of the NDSG, the DSG Pty Shares comprise the whole of the
     issued capital of DSG Pty and the Nappies Newco Shares comprise the whole
     of the issued capital of Nappies Newco.

2.5  At the Purchase 1 Date, there will be no restrictions on the transfer of
     the Shares save that the approval of the Board may be required in order to
     register the transfers.

2.6  The Company has not granted to any person a right to subscribe for or
     acquire any of the Company's unissued shares.

2.7  At the relevant Purchase Date, no person will have any pre-emptive right
     with respect to any of the Shares that has not been waived.

2.8  There are no shareholders agreements or other agreements impacting upon the
     Shares or unissued share capital of each Company.

3.   The Companies

3.1  The details of the Company as set out in Schedule 1 are true and correct
     and up to date.

3.2  The copy of the constitution of the Company initialled for identification
     by an officer of the Company and produced to the Purchaser prior to
     executing this Deed is a true copy and includes all amendments made up to
     the date of this Deed.

3.3  No resolution to alter the Company's constitution as produced to the
     Purchaser has been passed.

3.4  The Company is not:

     (1)  wound up, no resolution for its winding up has been passed and no
          meeting of members or creditors has been convened for that purpose;

     (2)  the subject of a winding up application which has been made to a
          court, and no event has occurred which would entitle any person to
          apply to a court to wind up the Company;

     (3)  a party to a composition or arrangement with any of its creditors;

     (4)  the recipient of a demand under section 459E of the Corporations Act
          2001;

     (5)  in receivership and none of its assets is in the possession of or
          under the control of a mortgagee or chargee;

     (6)  subject to administration under Part 5.3A of the Corporations Act
          2001;

<PAGE>

     (7)  insolvent.

3.5  The Company has not received from the Australian Securities and Investments
     Commission any notice warning of possible cancellation of registration of
     the Company.

3.6  The Company has not since the Accounts Date declared or paid a dividend or
     effected any other distribution of profits or carried out or agreed to
     carry out any alteration to its capital structure except for the 5 percent
     dividend on the cumulative redeemable preference shares of A$100,000 paid
     by DSG Pty to AHPI on 23 August 2002.

3.7  So far as the Vendor is aware, no event has occurred which would entitle a
     government or government agency to take any proceeding or step the effect
     of which would warrant an inspection or investigation of the affairs of the
     Company.

3.8  All mortgages and encumbrances over the assets and undertaking of the
     Company are set out in Appendix 3.

3.9  Except in relation to the acquisition of 1 share in NDSG as permitted by
     this Deed, Nappies Newco has not traded or incurred any liability
     whatsoever.

4.   Names

4.1  The Vendor Group has not allowed or consented to or suffered:

     (1)  the use by any other person; or

     (2)  the registration as a business name;

     of the name "Australian Pacific Paper Products" or "APPP" in the Territory
     and, so far as the Vendors are aware, no other person is using the name
     "Australian Pacific Paper Products" or "APPP" in the Territory.

5.   Litigation and Outstanding Undertakings, Preservation of Rights

5.1  The Company:

     (1)  has no unsatisfied fines, judgments or awards outstanding against it
          and is not party to any undertaking or assurance given to any court
          arbitrator or government agency or tribunal which is still in force;
          and

     (2)  is not engaged in or so far as the Vendors are aware threatened with
          prosecution, litigation or arbitration.

<PAGE>

5.2  None of the Vendors are aware of any facts or circumstances which are
     likely to lead to prosecution, litigation or arbitration involving the
     Company or any person for whose acts or defaults the Company may be liable.

5.3  The Company is not involved in any proceeding before or investigation by
     any governmental or statutory appointee agency tribunal committee or board
     of inquiry nor by any Royal Commission and so far as the Vendors are aware
     no such proceeding or investigation is pending or threatened against the
     Company.

5.4  So far as the Vendors are aware the Company's rights, contracts,
     agreements, options and arrangements described in Part A of Appendix 2 and
     in Appendix 8 and Appendix 9, are all of the Company's material rights,
     contracts, agreements, options and arrangements and, are unimpaired current
     and exercisable or enforceable, and except as disclosed in Part B of
     Appendix 2:

     (1)  none of the Company's rights, contracts, agreements, options or
          arrangements is likely to lapse by reason of any act, default or
          neglect on the part of the Company;

     (2)  no claim or action which at the Balance Date the Company was entitled
          to bring has become or prior to 3 months after the Purchase 3 Date may
          become contractually or statutorily barred or impaired by reason of
          time or delay; and

     (3)  no claim or action which at the Balance Date the Company was entitled
          to defend, resist or claim set-off against has been, or prior to 3
          months after the Purchase 3 Date may be advanced against the Company
          for want of action by the Company in due time.

6.   Product Liability

6.1  There are no product liability claims, or so far as the Vendors are aware
     no threatened claims or notifications against the Company made by customers
     or other parties except for minor claims of less than A$50.

6.2  So far as the Vendors are aware there is no material deficiency or defect
     in a product or service supplied or provided by the Company which may
     result in a claim being made against the Company.

7.   Subsidiaries and Marketable Securities

7.1  Each Company:

     (1)  has no Subsidiaries; and

     (2)  is not the holder or beneficial owner of any Marketable Security (and
          in particular of any Marketable Security which is not fully paid up).

<PAGE>

8.   Associations with Others

8.1  The Company is not a member of any partnership, joint venture, society or
     other unincorporated association.

9.   Area of Business

9.1  The Company has not during the previous 7 years had a place of business,
     branch or permanent establishment outside Australia, and the Company is
     duly recognised or registered and authorised to do business in every
     country or other jurisdiction in which the nature of its business or
     property makes such recognition, registration or authorisation necessary.

10.  Financial Matters

10.1 The Financial Statements:

     (1)  Have been prepared in accordance with the policies and principles in
          Schedule 5 and with generally accepted accounting concepts and
          practices and in accordance with the accounting concepts and practices
          adopted by the Company in the previous 2 financial years

10.2 (1)  The Annual Accounts accurately disclose the assets and Liabilities of
          the Company at the date at which they are prepared. The Annual
          Accounts provide fully for all Liabilities of the Company for Tax as
          at the date at which they are prepared;

     (2)  The Annual Accounts are not affected by any unusual or non-recurring
          item; and

     (3)  The Annual Accounts take account of all gains and losses arising from
          foreign currency transactions.

10.3 The Annual Accounts present a true and fair view of the profit or loss of
     the Company for the accounting period expiring on the Balance Date at which
     they are prepared and the state of affairs of the Company as at the Balance
     Date at which they are prepared.

10.4 The Management Accounts are in accordance with the books and records of the
     Companies and although the Management Accounts are not audited and do not
     contain the footnotes which would be required in audited financial
     statements, in other respects present fairly and materially accurately the
     financial position, assets and liabilities of the Companies and the results
     of their operations, and changes in financial position for the respective
     periods indicated and reflect all necessary accruals, all in conformity
     with generally accepted accounting concepts and practices (GAAP) applied on
     a consistent basis. The Management Accounts contain all adjustments
     required to be made by

<PAGE>

     GAAP, subject to normal year end adjustments consistent with the Audited
     Accounts as at the date to which they are prepared.

10.5 Since the Accounts Date no Material Adverse Change has taken place in the
     financial position or business affairs of the Company.

10.6 All guarantees, indemnities, undertakings, letters of comfort and analogous
     obligations and assurances which the Company has given are listed in
     Appendix 4.

10.7 The provisions for accrued holiday pay and long service leave in the
     Financial Statements are adequate, and the provision for long service leave
     is calculated in respect of each employee with more than 5 years' service
     with the Company and its predecessors in business at the date at which the
     relevant Financial Statements are prepared.

10.8 The Company has no Liability of more than A$10,000 to any person and in
     aggregate no Liability of more than A$10,000 in respect of a pension, lump
     sum or other allowance or benefit relating to or arising from cessation of
     employment or termination of office.

10.9 The Company does not have any debts or Liabilities other than those debts
     and Liabilities disclosed in the Financial Statements and debts and
     Liabilities which:

     (1)  have been incurred in the ordinary course of the ordinary business of
          the Company up to the Purchase 3 Date; and

     (2)  are neither:

          (a)  of an unusual nature; nor

          (b)  of an unusually large amount.

10.10 So far as the Vendors are aware, particulars of all bills of exchange,
     promissory notes and other negotiable or transferable instruments in
     respect of which the Company has any Liability (other than cheques drawn by
     the Company in the ordinary course of business) have been fully disclosed
     to the Purchaser.

10.11 The trade debts (net of the provisions for doubtful debts, advertising,
     promotional expenses, discounts/rebates and quantity buys) owing at the
     Accounts Date and the Effective Date are good debts and will produce the
     full amount of the debts without deduction.

10.12 The aggregate written down value attributed to the fixed assets of the
     Company in the Financial Statements does not exceed the aggregate current
     market value of the assets at the Accounts Date.

10.13 The rate of depreciation applied in respect of each depreciable asset of
     the Company in the Financial Statements has been consistently applied over
     the previous accounting

<PAGE>

     periods of the Company and is adequate to write down the value of each
     fixed asset to its realisable value at the end of its effective working
     life.

11.  Taxation Matters

11.1 The Company has:

     (1)  furnished full and accurate Tax returns as required by law for all
          financial years ended on or prior to the Purchase 3 Date;

     (2)  furnished full and accurate Tax returns as required by law for all Tax
          periods ended on or prior to the Purchase 3 Date; paid or made
          provision in the Financial Statements for all Tax liability in respect
          of income derived up to and including the Balance Date;

     (3)  deducted amounts required by law to be deducted by the Company from
          payments by the Company to employees and other persons or entities and
          has paid those amounts to the appropriate authority.

11.2 The Company has no dispute or question outstanding with and the Company and
     the Vendors are not currently under investigation by the revenue
     authorities in Australia or elsewhere in relation to the Company.

11.3 With respect to the assets of the Company:

     (1)  the Company has no assets which it purchased for the purpose of profit
          making by sale or for the carrying on or carrying out of any profit
          making undertaking or plan within the meaning of section 15-15 of the
          Income Tax Assessment Act 1997;

     (2)  the Company has no assets which have been rolled over into the Company
          pursuant to any roll over provisions of Chapter 3 of the Income Tax
          Assessment Act 1997 which by reason of the making of this Deed will be
          deemed to be disposed of for the purposes of any provision in the
          Income Tax Assessment Act 1997;

     (3)  all depreciating assets of the Company have been depreciated under the
          most appropriate method for tax purposes available under Division 40
          of the Income Tax Assessment Act 1997 and any assets entitled to
          accelerated depreciation under Division 40 of the Income Tax
          (Transitional Provisions) Act 1997 have been so depreciated if
          appropriate;

     (4)  all calculations or assessments by the Company of effective life of
          its depreciating assets for purposes of depreciation under Division 40
          of the Income Tax Assessment Act 1997 are accurate;

<PAGE>

     (5)  the Company has obtained all relevant information regarding methods of
          depreciation and effective life of assets acquired from associates (as
          defined in section 318 of the Income Tax Assessment Act 1936) and has
          complied with all notices from such associates requiring this
          information from the Company, as required by Division 40 of the Income
          Tax Assessment Act 1997.

11.4 All Tax payable by the Company where due for payment has been paid by the
     due date.

11.5 All documents which are subject to stamp duty and in the enforcement of
     which the Company may be interested have been duly and sufficiently
     stamped. No document belonging to the Company subject to ad valorem stamp
     duty is liable to have additional duty assessed.

11.6 Without prejudice to Warranty 11.3(2), DSGI and Nappies Newco have not
     chosen to obtain a rollover of the share in NDSG into shares in Nappies
     Newco in relation to the transfer of the NDSG Share under clause 6 of this
     Deed.

12.  Franking Account

12.1 The Company currently maintains a franking account and has at all times
     maintained franking accounts as required by Part IIIAA of the Income Tax
     Assessment Act 1936.

12.2 The Company does not have a tainted share capital account under Division 7B
     of Part IIIAA of the Income Tax Assessment Act 1936.

13.  Statutory Returns

13.1 The Company has completed and lodged all returns and statements required to
     be lodged by law with any agency, department, authority or commission and
     the returns and statements so lodged were true and correct in every
     material respect except where the failure to have done so will not have a
     material adverse effect.

13.2 The books, records and registers of the Company are in accordance with all
     statutory requirements.

14.  Disclosures

14.1 The facts set out in the schedules, appendices and annexures are true,
     complete and accurate in all material respects.

14.2 All disclosures, representations and statements made in writing (including
     the Warranties in this Deed) already made or which may up to the Purchase 3
     Date be made by any of the Vendors, or any person on behalf of the Vendors
     or any one or more of them relating to the business activities, affairs,
     operations, assets or Liabilities of the Company are or

<PAGE>

     will when made (taken as a whole and taking into account all corrections
     and changes notified to the Purchaser) be true, accurate and comprehensive
     in all material respects and are not or will not when made be misleading in
     any material respect.

15.  Conduct of the Business

15.1 The business of the Company has been conducted in a normal and proper
     manner and there has not been any capital expenditure or agreement to incur
     capital expenditure exceeding A$10,000 in aggregate other than that capital
     expenditure disclosed in the Financial Statements or capital expenditure in
     the ordinary course of business.

15.2 Except for the Annual Target Objective Bonus Scheme disclosed in writing to
     the Purchaser and agents commissions disclosed in writing to the Purchaser
     and royalty payments under Intellectual Property licenses to The Proctor
     and Gamble Company or the Vendor Group, no schemes or arrangements operated
     by or relating to the Company exist, which provide to any officer,
     employee, independent contractor or agent of the Company a commission,
     remuneration or other payment calculated by reference to the whole or part
     of the turnover, profits or sales of the Company.

15.3 Subject to the exceptions in clause 15.2, the Company is not a party to any
     agreement pursuant to which it is or may be bound to share its profits or
     pay any royalties or to waive or abandon any rights to which it is
     entitled.

16.  Employment

16.1 The Company does not pay wages or provide other benefits (except those
     referred to in Appendix 5) to any employee at a rate or in a manner
     exceeding that employee's entitlement under that employee's employment
     agreement, the legislation, industrial awards and registered industrial
     agreements applicable to that employee.

16.2 Set out in Appendix 5 are all superannuation or pension schemes and
     arrangements whether legally enforceable or not relating to the Company.

16.3 Each scheme and arrangement set out in Appendix 5 is fully funded.

16.4 All employees and contractors of the Company receive the minimum
     superannuation guarantee contributions required by law and the Company has
     made all compulsory superannuation contributions.

16.5 There are no industrial disputes relevant to the conduct of the business of
     the Company and none of the Vendors are aware of any claims or other facts
     or circumstances which may result in an industrial dispute.

16.6 There are no claims made by former employees for compensation or
     reinstatement as a consequence of termination of employment.

<PAGE>

16.7 None of the Vendors are aware of any other claims respecting benefits
     conferred or to be conferred on employees their families or dependants or
     of any facts or circumstances which are likely to lead to any such other
     claims.

16.8 The Company complies with relevant occupational health and safety laws for
     the state of Victoria, Australia and the Companies have taken reasonable
     measures to prevent injury.

17.  Directors' and Officers' Remuneration etc.

17.1 The remuneration and other emoluments as defined in section 9 of the
     Corporations Act 2001 and terms of employment or engagement of each of the
     directors and other officers of the Company have been disclosed in writing
     and will not be changed prior to Purchase 3 Completion without the prior
     written agreement of the Purchaser.

17.2 Since the Accounts Date the Company has not given or agreed to give any
     remuneration or other emoluments or benefits to or for the benefit directly
     or indirectly of any director or other officer except remuneration and
     emoluments to which paragraph 17.1 applies.

17.3 The Company has not at any time given any remuneration or other emoluments
     to its directors in excess of the amount of directors' remuneration and
     emoluments which would be an allowable deduction in the calculation of the
     income tax payable by the Company in the relevant year.

17.4 There are no contracts, understanding or arrangements whereby a director or
     employee of the Company is entitled to receive any benefit, bonus, payment
     or payment in kind of any nature from the Company or the Vendor Group upon
     completion of or in connection with this Deed.

18.  Vehicles, Plant and Equipment

18.1 Each vehicle and item of plant and equipment used in connection with the
     business of the Company which is owned by the Company is listed in Appendix
     6 and is owned by the Company.

18.2 Each vehicle and item of plant and equipment used in connection with the
     business of the Company which is not owned by the Company is listed in
     Appendix 7 together with details of the contract, agreement or lease
     pursuant to which the Company is entitled to possession of it.

19.  Insurance, Performance Bonds and Bills of Exchange

19.1 All property of the Company of an insurable nature is insured consistent
     with general industry practice against loss or damage by fire, storm,
     tempest, theft, malicious damage

<PAGE>

     and other usual risks and the Company is and, so far as the Vendors are
     aware, has at all times has been adequately covered by public risk and
     product liability insurances.

19.2 All insurance required by law to be effected by the Company has been
     effected and is current and not void or voidable.

19.3 None of the Vendors and the Company is aware of anything which would lead
     to any contracts of insurance to which the Company is an insured party or
     an insurance claim made by the Company being avoided, repudiated or denied.

19.4 The Company:

     (1)  has made and will make all notifications to and claims on insurers;
          and

     (2)  has served or given all notices required for the purposes of ensuring
          that third parties meet their obligations in respect of policies of
          insurance in relation to which the Company is entitled to benefit or
          has any Liability;

     in the form required and within the times required so as to comply with
     each applicable policy of insurance.

19.5 The details of all insurance policies of the Companies are set out in
     Appendix 8.

20.  No Contravention of any Law

20.1 To the best of the knowledge, information and belief of the Vendors within
     the 5 years preceding the Purchase 3 Date the Company, its officers, agents
     and employees (during the course of their duties in relation to the
     Company) have not permitted or omitted to do any act or thing the
     commission or omission of which is or could be in contravention of any law
     and which could have a material adverse effect on the business or net
     assets of the Company.

20.2 The Company is not a party to any contract, arrangement or understanding
     which is in breach of the Trade Practices Act 1974.

21.  Contracts

21.1 All material agreements and arrangements binding on the Company and not
     entered into in the ordinary course of trading of the Company are described
     in Appendix 9.

21.2 There are no service, employment, consultancy or other similar agreements
     with the Company determinable on more than 5 weeks notice other than
     service agreements with management.

<PAGE>

21.3 To the knowledge, information and belief of the Vendors, there is no
     agreement or arrangement with the Company in respect of which any person is
     in default (without regard to any requirement of notice or period of grace
     or both).

21.4 Other than in relation to the patent licence agreement between The Proctor
     and Gamble Company and DSGI International Limited dated 21 May 2001, and
     the Distribution Agreement between Vlesia AG and DSG Pty, the Company is
     not party to any agreement or arrangement which may be terminated by any
     other party by reason of a change in the ownership of the Shares or any of
     the Shares or by reason of the change being subject to the consent of the
     other party which consent has not been obtained.

21.5 There is no offer, tender or quotation given or made by the Company other
     than in the ordinary course of business of the Company and still
     outstanding capable of giving rise to a contract by unilateral act of a
     third party.

21.6 The Vendors after reasonable enquiry are not aware of any reason or
     circumstance which might cause any agreement or arrangement to which the
     Company is a party to not be fully performed and completed in accordance
     with its terms.

21.7 The work in progress, progress claims lodged, claims lodged in excess of
     work performed, and value of work not yet claimed set out in Appendix 10
     represent a true and fair view of the value of those items at that date or
     dates stated in Appendix 10, to the knowledge, information and belief of
     the Vendors the amount of the claims lodged is fully recoverable within the
     time set out against each claim in Appendix 10, and there will not prior to
     the Purchase 3 Date be any Material Adverse Change to the recoverability of
     the Company's claims for payment for work performed, whether lodged before,
     on or after the date stated at the commencement of this Deed.

22.  Intellectual Property

22.1 All Intellectual Property of or used by the Company is listed with a brief
     description in Appendix 11 which also discloses:

     (1)  whether it is duly registered or an application for registration has
          been made and;

     (2)  the name of the registered owner of the Intellectual Property.

22.2 No proceedings have been instituted or are pending or are to the knowledge
     of the Vendors threatened which challenge the validity of the ownership by
     the Company or by the Vendor Group of the Intellectual Property.

22.3 The Vendor Group has not licensed anyone other than the Companies to use
     any of the Brand Name IP.

22.4 The Companies have not licensed anyone to use any of the Brand Name IP.

<PAGE>

22.5 The Vendor Group and the Company have no reason to suspect any infringing
     use or infringement of the Target IP by any other person.

22.6 The Company owns or possesses adequate and enforceable licences or other
     rights to use all Intellectual Property now used in the conduct of its
     business and has not received any notice of conflict with or infringement
     of the rights of any other person.

22.7 The Company has not passed off any of its goods or services as those of any
     other person and its own use of the Brand Name IP does not infringe the
     Intellectual Property of any other person.

23.  P & G Agreement

23.1 The Vendor Group has accrued or paid all licence fees payable to date under
     the P&G Agreement.

24.  Licences, Permits etc.

24.1 The Company holds all permits, licences, authorities, rights to use and
     consents necessary for carrying on the business of the Company
     (collectively "Permits"). Brief particulars of the Permits are set out in
     Appendix 12. The Permits are valid and in good standing. To the knowledge,
     information and belief of the Vendors, the Company has not failed to comply
     with any requirements of any of them.

24.2 So far as the Vendors are aware, there is no circumstance or fact involving
     the Company or its affairs which may result in the variation in any
     material respect or revocation of any of the Permits which it holds in
     connection with its business.

25.  Authorities to Act

25.1 There is no subsisting power of attorney, appointment of agent or other
     authority to act on behalf of the Company given by the Company to any
     person except to executive directors and employees acting in the normal
     course of their employment.

25.2 The Vendors have appropriate and lawful authority to sell the Shares and
     have passed any requisite resolutions and obtained any authorities required
     to enter into and to complete this Deed.

26.  Land

26.1 All land and interests in land owned, leased occupied or used by the
     Company are set out in Appendix 13.

<PAGE>

26.2 The buildings and other improvements constructed on or in the land owned,
     leased, occupied or used by the Company are in good condition and repair
     taking into account normal wear and tear.

27.  No Contamination/Environmental matters

27.1 (1)  To the Vendors' knowledge, the Companies are in compliance with all
          Environmental Laws. There are no events, conditions, circumstances,
          activities, practices, incidents, actions or plans in any way related
          to the Companies' business which will, or would reasonably be expected
          to, give rise to any Environmental Claim.

     (2)  As used in this Warranty:

          "Environmental Claim" means any and all administrative or judicial
          actions, suits, orders, claims, Liens, notices, violations or
          proceedings related to any applicable Environmental Law brought,
          issued or asserted by: (i) a governmental authority for compliance,
          damages, penalties, removal, response, remedial or other action
          pursuant to any applicable Environmental Law; or (ii) a third party
          seeking damages, contribution, remediation or other action for
          personal injury or property damage resulting from the release of a
          government regulated hazardous material at, to or from any real
          property upon which the business of either Company is located or
          operated.

          "Environmental Law" means all applicable federal, state and local
          laws, statutes, ordinances, codes, rules and regulations related to
          protection of the environment and/or the handling, presence, use,
          generation, treatment, storage, transportation, release, discharge,
          emission or disposal of government regulated hazardous materials in
          effect on or before the Purchase 3 Date.

28.  Stock

28.1 Except to the extent, if any, that the records of the Company indicate
     otherwise, all stock, work in progress, whether in hand in transit or in
     bond are of good and merchantable quality fit for the purpose for which
     they are intended to be used in the business of the Company and conform
     with all relevant descriptions specifications and standards and with any
     relevant statutory or regulatory requirements.

29.  The Vendors

29.1 Corporate Organization. AHPI is a corporation duly incorporated, validly
     existing and in good standing under the laws of the State of Wisconsin USA
     and DSGI is a corporation incorporated in the British Virgin Islands and
     the Vendors have the corporate power and authority to sell the Shares.

<PAGE>

29.2 Authorisation of Agreement; No violation. The Vendors' Boards of Directors
     have duly authorised the execution and delivery of this Deed and the sale
     and the consummation of the other transactions contemplated hereby.

29.3 Litigation. There are no action, suits, proceedings or investigations,
     either at law or in equity, or before any commission or other
     administrative authority in the United States British Virgin Islands or any
     foreign jurisdiction, of any kind now pending or threatened or proposed in
     any manner, or any circumstances which should or could reasonably form the
     basis of any such action, suit, proceeding or investigation, involving the
     Vendors or any of its properties or assets that (i) questions the validity
     of this Deed or (ii) seeks to delay, prohibit or restrict in any manner any
     action taken or to be taken by the Vendors under this Deed.

29.4 No authorisation, consent or approval of, or filing with, any public body
     or authority is necessary for the consummation by the Vendor of the
     transactions contemplated by this Deed.

30.  No Unauthorised Disclosures

30.1 None of the Vendors, and the Company has knowledge of any unauthorised
     disclosure of any of the financial or trade secrets or other confidential
     information of the Company.

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