Document:

Agreement for purchase and Sale of Partnership Interests in Standard Gypsum

 Exhibit 10.32 
 AGREEMENT FOR PURCHASE AND SALE 
 OF 
 PARTNERSHIP INTERESTS 
 IN 
 STANDARD GYPSUM, L.P. 
 THIS IS AN
AGREEMENT FOR PURCHASE AND SALE dated as of January 17, 2006 by and among TIN INC., a Delaware corporation f/k/a Temple-Inland Forest Products Corporation (“TIN”), TEMPLE GYPSUM COMPANY, a Nevada corporation
(“TGC”), GYPSUM MGC, INC., a Delaware corporation (“Gypsum”), MCQUEENY GYPSUM COMPANY, LLC, a Delaware limited liability company (“MGC”), and CARAUSTAR INDUSTRIES, INC., a North Carolina corporation
(“Caraustar”). 
 BACKGROUND STATEMENT 
 TIN and Gypsum are the general partners, with each owning a one percent (1%) general partnership interest, and TGC and MGC are the limited partners,
with each owning a forty nine percent (49%) limited partnership interest, of Standard Gypsum, L.P., a Delaware limited partnership (the “Partnership”). TIN and TGC are wholly owned subsidiaries of Temple-Inland Inc., a Delaware
corporation (“Temple-Inland”). Gypsum and MGC are wholly owned subsidiaries of Caraustar. TIN desires to purchase the general partnership interest in the Partnership owned by Gypsum (the “GP Interest”) and TGC
desires to purchase the limited partnership interest in the Partnership owned by MGC (the “LP Interest” and collectively with the GP Interest, the “Partnership Interests”). The parties are entering into this
Agreement to set forth the terms and conditions of such transactions and certain related matters. 
 STATEMENT OF AGREEMENT

 In consideration of the mutual covenants and agreements set forth herein and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows: 
 ARTICLE 1 

 Definitions; Interpretation 
 1.1 Definitions. For purposes of this Agreement, the following terms shall have the meanings ascribed to them below: 
 “Affiliate” of any Person means any other Person of which such Person is a shareholder, member, director, officer, manager, partner or employee, any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such Person. 
 “Agreement” means this Agreement for Purchase
and Sale of Partnership Interests, as amended from time to time as provided herein. 

 “Ancillary Instrument” means any agreement or instrument of conveyance contemplated by
this Agreement to be delivered by one or more parties to this Agreement. 
 “Business Day” means any day excluding a
Saturday, a Sunday and any other day on which banks are required or authorized to close in New York City. 
 “Caraustar” is
defined in the Preamble to this Agreement. 
 “Closing” is defined in Section 2.4. 
 “Closing Date” is defined in Section 2.4. 
 “Closing Distribution” is defined in Section 5.2. 
 “Code” means the
Internal Revenue Code of 1986, as it may hereafter be amended from time to time, and any successor statute or statutes thereto. 
 “Effective Time” is defined in Section 2.4. 
 “Formation Agreement” means that certain
Agreement to Form LLC effective as of April 1, 1996 by and among Caraustar, Standard Gypsum Corporation, a Texas corporation, and TIN. 
 “GAAP” means generally accepted accounting principles in the United States of America. 
 “Governmental
Authority” means any nation or government, any state or other political subdivision thereof and any other Person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

“GP Interest” is defined in the Background Statement to this Agreement. 
 “Gypsum” is defined in the Preamble to this Agreement. 
 “Lien” means any lien, security interest, pledge, charge, option, right of first refusal, claim, mortgage, lease, restriction or any other encumbrance whatsoever. 
 “Loan Agreement” is defined in Section 5.6. 
 “LP Interest” is defined in the Background Statement to this Agreement. 
 “Material
Adverse Effect” with respect to any Person other than the Partnership, means any fact, circumstance, event, violation, development, change in or effect on such Person that individually or in the aggregate with any other facts,
circumstances, events, violations, developments, changes in or effects on such Person is materially adverse to the business, financial condition, results of operation, assets, properties or liabilities of such Person. 
  

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 “MGC” is defined in the Preamble to this Agreement. 
 “Mutual Release” is defined in Section 2.6(a)(v). 
 “Nondisclosure Agreement” is defined in Section 2.6(a)(iv). 
 “Partnership” is defined in the Background Statement to this Agreement. 
 “Partnership Agreement”
means that certain Partnership Agreement of Standard Gypsum, L.P. dated December 31, 2000, as amended from time to time as provided therein. 
 “Partnership Interests” is defined in the Background Statement to this Agreement. 
 “Partnership Material
Adverse Effect” means any fact, circumstance, event, violation, development, change in or effect on the Partnership that individually or in the aggregate with any other facts, circumstances, events, violations, developments, changes in or
effects on the Partnership is materially adverse to the business, financial condition, results of operation, assets, properties or liabilities of the Partnership; provided, however, that any termination of the Partnership for tax
purposes or otherwise resulting from the transactions contemplated herein shall not constitute a Partnership Material Adverse Effect. 
 “Permitted Restriction” means transfer and other restrictions arising under the Partnership Agreement. 
 “Person” means an individual, partnership, corporation, limited liability company, joint venture, business trust or unincorporated organization, Governmental Authority or any other entity. 
 “Purchase Price” is defined in Section 2.2. 
 “Purchaser” means either TIN or TGC, individually, and “Purchasers” means TIN and TGC, collectively. 
 “Seller” means either Gypsum or MGC, individually, and “Sellers” means Gypsum and MGC, collectively. 
 “Supply Agreement” is defined in Section 2.6(a). 
 “Temple-Inland” is
defined in the Background Statement to this Agreement. 
 “TGC” is defined in the Preamble to this Agreement. 
 “TIN” is defined in the Preamble to this Agreement. 
 1.2 Accounting Terms and Determinations. All accounting terms used in this Agreement and not otherwise defined shall have the meaning ascribed to them in accordance with GAAP and, except as expressly provided
herein, all accounting determinations shall be made in accordance with GAAP, consistently applied. 
  

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 1.3 Interpretation. 
 (a) Schedules, Exhibits, Sections. References to a “Schedule” or an “Exhibit” are, unless otherwise specified,
to a Schedule or an Exhibit attached to this Agreement and references to a “Section” or a “subsection” are, unless otherwise specified, to a Section or a subsection of this Agreement. 
 (b) Plural. Wherever from the context it appears appropriate, each term stated in either the singular or the plural shall include
the singular and the plural, and pronouns stated in the masculine, the feminine or neuter gender shall include the masculine, the feminine and the neuter. 
 (c) Captions. Captions contained in this Agreement are inserted only as a matter of convenience and in no way define, limit or extend or otherwise affect the scope or intent of this Agreement or any provision
hereof. 
 (d) Including. “Including” and other words or phrases of inclusion, if any, shall not be construed
as terms of limitation, so that references to “included” matters shall be regarded as non-exclusive, non-characterizing illustrations, and equivalent to the terms “including, but not limited to,” and “including, without
limitation.” 
 ARTICLE 2  
 Purchase and Sale of the Partnership Interests 
 2.1 Purchase and Sale of the Partnership
Interests. At the Closing and on the terms and subject to the conditions set forth in this Agreement: (i) Gypsum shall sell, transfer, convey, deliver and assign to TIN, and TIN shall purchase from Gypsum the GP Interest, free and clear of
all Liens other than Permitted Restrictions, for the consideration provided herein; and (ii) MGC shall sell, transfer, convey, deliver and assign to TGC, and TGC shall purchase from MGC the LP Interest, free and clear of all Liens other than
Permitted Restrictions, for the consideration provided herein. 
 2.2 Purchase Price. At the Closing, Purchasers shall pay to Sellers
the aggregate sum of One Hundred Fifty Million Dollars ($ 150,000,000.00) as the purchase price for the Partnership Interests (the “Purchase Price”). Ninety eight percent (98%) of the Purchase Price shall be paid by TGC to MGC
as the consideration for the LP Interest and two percent (2%) of the Purchase Price shall be paid by TIN to Gypsum as the consideration for the GP Interest. 
 2.3 Indemnity and Hold Harmless. From and after the Closing, TIN shall indemnify, defend and hold harmless Caraustar and Sellers, and their successors and assigns, from and against any and all liabilities and
obligations of the Partnership; provided, however, TIN shall not be required to indemnify, defend and hold harmless Caraustar and Sellers from any such liability or obligation to the extent it arose or results from or relates to: (i) the gross
negligence, willful misconduct or fraud of Caraustar or any Seller; (ii) any action taken without the actual knowledge, express consent or 
  

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 conscious acquiescence of any Purchaser by Caraustar or any Seller that constitutes a breach of the Partnership
Agreement; (iii) any action by MGC that results in MGC having liability for the obligations of the Partnership under Section 17-303 of the Delaware Revised Uniform Limited Partnership Act; (iv) any of the matters on which Caraustar
has agreed to provide indemnification as pursuant to Section 5.7 of this Agreement, as limited by Section 5.8 of this Agreement; or (v) a final and non-appealable judicial determination that the corporate identity of Gypsum be
“pierced” or disregarded for the purpose of discharging liabilities or obligations otherwise attributable to Gypsum. Nothing in this Section 2.3 shall be construed or interpreted to obligate TIN to indemnify or reimburse Caraustar or
any Seller for the return of any distribution made by the Partnership that may be required pursuant to the provisions of Section 17-607 of the Delaware Revised Uniform Limited Partnership Act; provided, however, that to the extent that any such
distribution that is required to be returned pursuant to the provisions of Section 17-607 of the Delaware Revised Uniform Limited Partnership Act would be deemed permissible if distributed at any other time subsequent to the date of such
distribution and prior to the Closing Date, taking into account distributions made during such period, TIN agrees to return to Sellers or their successors and assigns any such distribution or portion thereof that Sellers or Caraustar or their
successors and assigns were required to disgorge. 
 2.4 The Closing. Consummation of the purchase and sale of the Partnership
Interests as described in this Article 2 (the “Closing”) shall take place at 10:00 a.m. at the offices of Sutherland Asbill & Brennan LLP, 999 Peachtree Street, NE, Atlanta, GA 30309, on a date to be specified by the
parties, which date shall be no later than two Business Days after satisfaction or waiver of all of the conditions set forth in Section 2.5, but in no event earlier than January 3, 2006 (the “Closing Date”). At the
Closing, the parties shall deliver the agreements, instruments and documents described in Section 2.6 and such other instruments of conveyance and such other documentation as the other may reasonably request to confirm Purchaser’s right,
title and interest to the Partnership Interests. Notwithstanding the foregoing, the Closing shall not occur unless and until all of the actions and deliveries contemplated by this Agreement shall have been taken or made (or waived) and none of such
actions or deliveries shall be deemed to have been taken or made unless and until all of them have been taken or made (or waived); but if all such actions and deliveries have been taken and made (or appropriately waived), then the Closing shall be
effective as of 12:01 a.m. Central Standard Time on January 1, 2006 (the “Effective Time”). 
 2.5 Conditions to
Closing. 
 (a) Conditions to Each Party’s Obligation to Close. The obligations of Purchasers, on the one
hand, and Caraustar and Sellers, on the other hand, to consummate the transactions contemplated by this Agreement are subject to the satisfaction (or, if permissible, waiver by the party for whose benefit such condition exists) of the following
conditions: 
 (i) Since the date of this Agreement, no action shall have been commenced, instituted or threatened in writing
by or before any Governmental Authority that has not been withdrawn, dismissed with prejudice, rescinded or otherwise eliminated either (A) to enjoin or otherwise prohibit or restrict the performance of this Agreement, (B) to obtain
material damages against any party in 
  

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 respect of the execution, delivery and performance of this Agreement, or (C) which, in the
reasonable judgment of Purchasers, could reasonably be expected to have a Partnership Material Adverse Effect; and 
 (ii) All
necessary consents, approvals, authorizations, clearances, exemptions, declarations or filings with, or expiration or waiver of waiting periods imposed by, any Governmental Authority required for the consummation of the transactions contemplated by
this Agreement shall have been filed, expired, obtained or otherwise satisfied. 
 (b) Conditions to Obligations of
Purchasers. The obligations of Purchasers to consummate the transactions contemplated by this Agreement are further subject to the satisfaction or waiver of the following conditions: 
 (i) Each of the representations and warranties of Caraustar and Sellers shall be true and correct in all material respects (or true and
correct in the case of any such representation or warranty that is qualified by the words “material” or “materially”) both when made and at and as of the Closing Date as if made at and as of such time (except to the extent
expressly made as of an earlier date, in which case as of such date); 
 (ii) Caraustar and Sellers shall have performed in
all material respects all obligations required to be performed by them under this Agreement at or prior to the Closing; 
 (iii) Since the date of this Agreement, there shall not have been any Partnership Material Adverse Effect; 
 (iv) At
or prior to Closing, Caraustar and Sellers shall have delivered the items described in Section 2.6(b); and 
 (v)
Purchasers shall have received all consents from Persons other than Governmental Authorities, the failure of which to obtain would have a Partnership Material Adverse Effect, and none of such consents shall have been given on terms that have a
Partnership Material Adverse Effect or a Material Adverse Effect on any Purchaser. 
 (c) Conditions to Obligations of
Caraustar and Sellers. The obligations of Caraustar and Sellers to consummate the transactions contemplated by this Agreement are further subject to the satisfaction or waiver of the following conditions: 
 (i) Each of the representations and warranties of Purchasers shall be true and correct in all material respects (or true and correct in
the case of any such representation or warranty that is qualified by the words “material” or “materially”) both when made and at and as of the Closing Date as if made at and as of such time (except to the extent expressly made as
of an earlier date, in which case as of such date); 
  

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 (ii) Purchasers shall have performed in all material respects all obligations required to
be performed by them under this Agreement at or prior to the Closing; 
 (iii) At or prior to Closing, Purchasers shall have
delivered the items described in Section 2.6(a); and 
 (iv) Caraustar shall have received all consents from Persons
other than Governmental Authorities, the failure of which to obtain would have a Material Adverse Effect on Caraustar and the Sellers, taken as a whole, and none of such consents shall have been given on terms that materially and adversely affect
the Caraustar and the Sellers, taken as a whole. 
 2.6 Deliveries at Closing. 
 (a) By Purchasers. At the Closing, Purchasers shall deliver or shall cause to be delivered to Caraustar and Sellers the following
items: 
 (i) The Purchase Price by wire transfer of immediately available funds to an account or accounts designated by
Sellers in writing no later than one Business Day prior to the Closing Date; 
 (ii) A certificate executed by an executive
officer of each Purchaser, dated as of the Closing Date, stating that the conditions set forth in Sections 2.5(a) and (c) (i) – (iii) hereof have been satisfied; 
 (iii) A supply agreement in substantially the form of Exhibit A attached hereto (the “Supply Agreement”), duly
executed by TIN; 
 (iv) A nondisclosure agreement in substantially the form of Exhibit B attached hereto (the
“Nondisclosure Agreement”); and 
 (v) A mutual release in substantially the form of Exhibit C attached
hereto, duly executed by the Partnership and the Purchasers (the “Mutual Release”). 
 (b) By Caraustar and
Sellers. At the Closing, Caraustar and Sellers shall deliver or shall cause to be delivered to Purchasers the following items: 
 (i) A certificate executed by an executive officer of Caraustar and each Seller, dated as of the Closing Date, stating that the conditions set forth in Sections 2.5(a) and (b)(i), (ii) and (iv) hereof have been satisfied;

 (ii) Any certificate representing the Partnership Interests and instruments of assignment, in form reasonably satisfactory
to Purchasers, for the transfer and assignment of each of the Partnership Interests to the applicable Purchaser, duly executed by the applicable Seller; 
  

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 (iii) The Supply Agreement, duly executed by Caraustar; 
 (iv) The Nondisclosure Agreement, duly executed by Caraustar and Sellers; 
 (v) The Mutual Release, duly executed by Caraustar and Sellers; 
 (vi) The resignations of those members of the Management Committee of the Partnership designated by Gypsum; and 
 (vii) The resignations of those current officers of the Partnership that are employed by Caraustar, Gypsum and/or MGC. 
 2.7 Termination. This Agreement may be terminated and the transactions contemplated herein abandoned at any time prior to the Closing: 

(a) By mutual written consent of Purchasers, Caraustar and Sellers. 
 (b) By Purchasers, on the one hand, or Caraustar and Sellers, on the other hand, if the Closing shall have not occurred on or prior to
January 31, 2006, including by reason of the failure to satisfy any condition set forth in Section 2.5(a); provided, however, that the right to terminate this Agreement pursuant to this Section 2.7(b) shall not be
available to any party whose failure to perform or comply with any of its obligations or breach of any of its representations and warranties under this Agreement results in the failure of the Closing to have occurred by such time. 
 (c) By Purchasers if: (i) Caraustar or any Seller (A) breaches any of its representations and warranties such that the condition
set forth in Section 2.5(b)(i) would not be satisfied or (B) breaches or fails in any material respect to perform or comply with any of its covenants or other agreements contained in this Agreement such that the condition set forth in
Section 2.5(b)(ii) would not be satisfied; provided; however, that if any such breach is curable by Caraustar or such Seller through the exercise of Caraustar’s or Seller’s reasonable best efforts and for so long as
Caraustar or Seller shall be using its reasonable best efforts to cure such breach, Purchasers may not terminate this Agreement pursuant to this Section 2.7(c); or (ii) a Partnership Material Adverse Effect shall have occurred since the
date of this Agreement. 
 (d) By Caraustar and Sellers if Purchaser (i) breaches any of its representations and
warranties such that the condition set forth in Section 2.5(c)(i) would not be satisfied or (ii) breaches or fails in any material respect to perform or comply with any of its covenants or other agreements contained in this Agreement such
that the condition set forth in Section 2.5(c)(ii) would not be satisfied; provided; however, that if any such breach is curable by Purchaser through the exercise of Purchaser’s reasonable best efforts and for so long as
Purchaser shall be using its reasonable best efforts to cure such breach, Caraustar and Sellers may not terminate this Agreement pursuant to this Section 2.7(d). 
  

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 (e) If this Agreement is terminated pursuant to this Section 2.7, all obligations of
the parties under this Agreement (other than under this Section 2.7 or under Section 5.5 and Articles 6 and 7) shall be terminated without any liability or penalty on the part of any party or its shareholders, members, officers, directors,
employees or agents to any other party; provided, however, that no such termination shall relieve any party from liability for damages resulting from any breach by such party of this Agreement or otherwise limit any remedy available to
any party on account of such breach. 
 ARTICLE 3  
 Representations and Warranties of Caraustar and Sellers 
 Caraustar and
Sellers hereby jointly and severally represent and warrant to Purchasers, as of the date of this Agreement and the Closing Date, as follows: 
 3.1 Title. Gypsum is the sole record and beneficial owner of the GP Interest, which is the sole interest in the Partnership owned by Gypsum, free and clear of any Lien other than a Permitted Restriction, and has full power and
authority to sell, transfer, convey, deliver and assign the GP Interest, free and clear of any Lien other than a Permitted Restriction and (as of the date of this Agreement) other than restrictions on the sale and transfer thereof under
Caraustar’s senior credit agreement, which restrictions shall be waived or otherwise eliminated on or prior to the Closing Date. The GP Interest constitutes Gypsum’s entire right and interest in the Partnership. MGC is the sole record and
beneficial owner of the LP Interest, which is the sole interest in the Partnership owned by MGC, free and clear of any Lien other than a Permitted Restriction, and has full power and authority to sell, transfer, convey, deliver and assign the LP
Interest, free and clear of any Lien other than a Permitted Restriction and (as of the date of this Agreement) other than restrictions on the sale and transfer thereof under Caraustar’s senior credit agreement which restrictions shall be waived
or otherwise eliminated on or prior to the Closing Date. The LP Interest constitutes MGC’s entire right and interest in the Partnership. 
 3.2 Organization and Status. Caraustar is a corporation, duly incorporated and organized, validly existing and in good standing under the laws of the State of North Carolina and has the corporate power and authority to own and
operate its assets, properties and business and to otherwise conduct its business as presently conducted. Gypsum is a corporation, duly incorporated and organized, validly existing and in good standing under the laws of the State of Delaware and has
the corporate power and authority to own and operate its assets, properties and business and to otherwise conduct its business as presently conducted. MGC is a limited liability company, duly formed and organized, validly existing and in good
standing under the laws of the State of Delaware and has the power and authority to own and operate its assets, properties and business and to otherwise conduct its business as presently conducted. 
 3.3 Authority. Each of Caraustar and the Sellers has the full legal right and power and all authority required to enter into, execute and deliver
this Agreement and any Ancillary Instrument to 
  

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 which it is a party and to perform its obligations under this Agreement and such Ancillary Instruments. The execution and
delivery of this Agreement and the Ancillary Instruments to which it is a party and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of Caraustar and Sellers in
compliance with any governing or applicable agreements, instruments or other documents. This Agreement and the Ancillary Instruments to which it is a party have been duly executed and delivered by each of Caraustar and Sellers and constitute the
legal, valid and binding obligations of Caraustar and Sellers enforceable against Caraustar and Sellers in accordance with their respective terms, except as limited by: (i) applicable bankruptcy, reorganization, insolvency, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally from time to time in effect; and (ii) the availability of equitable remedies (regardless of whether enforceability is considered in a proceeding at law or in equity).

 3.4 No Consents or Approvals; Absence of Conflicts. Except as may be required under the terms of the Partnership Agreement, the
execution and delivery of this Agreement and the Ancillary Instruments to which it is a party, the consummation of the transactions contemplated hereby and thereby and the performance by each of Caraustar and Sellers of this Agreement and such
Ancillary Instruments in accordance with their respective terms and conditions will not: (i) except for disclosures required to be made under the applicable rules and regulations of the Securities and Exchange Commission or the rules of any
securities exchange or NASDAQ, require any notice to, filing or registration with, or permit, license, variance, waiver, exemption, franchise, order, consent, authorization or approval of, any Governmental Authority or any other person;
(ii) assuming that the consent(s) referenced in Section 2.5(c)(iv) have been obtained, violate, conflict with or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both,
would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in the creation of any Lien on the Partnership Interest held by Seller or upon the assets, properties or business of the
Partnership under any of the terms, conditions and provisions of any contract or other agreement to which Caraustar or any Seller is a party or to which Caraustar or any Seller or any Partnership Interest held by Seller are bound or subject, other
than such violations, conflicts or breaches as would not, individually or in the aggregate, have a Partnership Material Adverse Effect, or result in the creation of any Lien on the Partnership Interest held by Seller or upon the assets, properties
or business of the Partnership (iii) violate any judgment, ruling, order, writ, injunction, award, decree, statute, law, ordinance, code, rule or regulation of any Governmental Authority that is applicable to Caraustar or any Seller or to the
Partnership Interest held by any Seller, other than such violations as would not, individually or in the aggregate, have a Partnership Material Adverse Effect or have a Material Adverse Effect on Caraustar and the Sellers, taken as a whole, or
(iv) violate the certificate/articles of incorporation, certificate/articles of formation, bylaws or limited liability company agreement of Caraustar or any Seller or the Partnership Agreement. 
 3.5 Litigation. Neither Caraustar nor any Seller is a party to, or to Caraustar’s or any Seller’s knowledge, threatened with, any
litigation or judicial, governmental, regulatory, administrative or arbitration suit, action, claim, proceeding or investigation which, if decided adversely, could reasonably be expected to have a material adverse effect on the Partnership Interests
or the transactions contemplated hereby. 
  

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 3.6 Brokers’ or Finders’ Fees, Etc. Other than UBS Securities LLC, the fees and expenses
of which will be paid by Caraustar, no broker, finder, agent or similar intermediary has acted for or on behalf of Caraustar or any Seller in connection with this Agreement or the transactions contemplated hereby, and no broker, finder, agent or
similar intermediary is entitled to any broker’s, finder’s or similar fee or other commission in connection therewith based on any contract or other agreement with Caraustar or any Seller or any action taken by Caraustar or any Seller.

 ARTICLE 4  
 Representations and Warranties of Purchasers 
 Purchasers hereby jointly and severally represent and warrant to
Caraustar and Sellers, as of the date of this Agreement and the Closing Date, as follows: 
 4.1 Organization and Status. TIN is a
corporation duly incorporated and organized, validly existing and in good standing under the laws of the State of Delaware, and has the corporate power and authority necessary to own and operate its assets, properties and business and to otherwise
conduct its business as presently conducted. TGC is a corporation duly incorporated and organized, validly existing and in good standing under the laws of the State of Nevada, and has the corporate power and authority necessary to own and operate
its assets, properties and business and to otherwise conduct its business as presently conducted. 
 4.2 Authority. Each Purchaser has
the full legal right and power and all authority required to enter into, execute and deliver this Agreement and the Ancillary Instruments to which it is a party and to perform such Purchaser’s obligations under this Agreement and such Ancillary
Instruments. The execution and delivery of this Agreement and the Ancillary Instruments to which it is a party and the consummation by each Purchaser of the transactions contemplated hereby and thereby have been duly authorized by all necessary
action on the part of such Purchaser in compliance with any governing or applicable agreements, instruments or other documents. This Agreement and the Ancillary Instruments to which it is a party have been duly executed and delivered by each
Purchaser and constitute the legal, valid and binding obligations of each Purchaser, enforceable against such Purchaser in accordance with their respective terms, except as limited by: (i) applicable bankruptcy, reorganization, insolvency,
moratorium or other similar laws affecting the enforcement of creditors’ rights generally from time to time in effect; and (ii) the availability of equitable remedies (regardless of whether enforceability is considered in a proceeding at
law or in equity). 
 4.3 No Consents or Approvals; Absence of Conflicts. Except as may be required under the terms of the Partnership
Agreement, the execution and delivery of this Agreement and the Ancillary Instruments to which it is a party, the consummation of the transactions contemplated hereby and thereby and the performance by each Purchaser of this Agreement and such
Ancillary Instruments in accordance with their respective terms and conditions will not: (i) except for disclosures required to be made under the applicable rules and regulations of the Securities and Exchange commission or the rules of any
securities exchange or NASDAQ, require any notice to, filing or registration with, or permit, license, variance, waiver, exemption, franchise, order, consent, authorization or approval of, any Governmental Authority or any other person;
(ii) assuming that the consents referenced in Section 2.5(b)(v) have been obtained, violate, conflict with or result in a breach of any provision of, 
  

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 or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or
result in the termination of, or accelerate the performance required by, or result in the creation of any Lien on any of the assets, properties or businesses of any Purchaser under any of the terms, conditions or provisions of any contract or other
agreement to which any Purchaser is a party or to which any assets, properties or businesses of any Purchaser are bound or subject, other than such violations, conflicts or breaches as would not, individually or in the aggregate, have a Partnership
Material Adverse Effect (iii) violate any judgment, ruling, order, writ, injunction, award, decree, statute, law, ordinance, code, rule or regulation of any Governmental Authority that is applicable to either Purchaser or any of its assets,
properties or businesses, other than such violations as would not, individually or in the aggregate, have a Partnership Material Adverse Effect or have a material adverse effect on any Purchaser, or (iv) violate the certificate of incorporation
or bylaws of either Purchaser or the Partnership Agreement. 
 4.4 Brokers’ or Finders’ Fees, Etc. No broker, finder, agent
or similar intermediary has acted for or on behalf of either Purchaser in connection with this Agreement or the transactions contemplated hereby, and no broker, finder, agent or similar intermediary is entitled to any broker’s, finder’s or
similar fee or other commission in connection therewith based on any contract or other agreement with either Purchaser or any action taken by either Purchaser. 
 4.5 Purchase for Investment. Purchasers acknowledge that the sale of the Partnership Interests purchased by them has not been registered under the Securities Act of 1933, as amended (the “Securities
Act”), or under any state securities laws. Each Purchaser is purchasing the Partnership Interest from its respective Seller solely for investment for its own account and not with a view to, or in connection with, any distribution or sale
thereof to any Person (other than an Affiliate), and neither Purchaser will sell or otherwise dispose of the Partnership Interest purchased by it except in compliance with the registration requirements or exemption provisions under the Securities
Act and the rules and regulations promulgated thereunder, and any other applicable securities laws. 
 4.6 Litigation. As of the date
hereof, neither Purchaser is a party to, or to Purchaser’s knowledge, threatened with, any litigation or judicial, governmental, regulatory, administrative or arbitration suit, action, claim, proceeding or investigation which, if decided
adversely, could reasonably be expected to have a Partnership Material Adverse Effect or an adverse effect on the transactions contemplated hereby. 
 ARTICLE 5  
 Additional Covenants 
 5.1 Commercially Reasonable Efforts. Each of the parties hereto agrees to use its commercially reasonable efforts to take or cause to be taken all
action, to do or cause to be done, and to assist and cooperate with the other in doing, all things necessary, proper or advisable or ensure that the conditions to the other party’s obligations hereunder are satisfied, insofar as such matters
are within the control of such party, in the most expeditious manner practicable, including, but not limited to, (i) the obtaining of all necessary waivers, consents and approvals from Governmental Authorities and the making of all necessary
registrations and filings (including, but not limited to, 
  

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 filings with Governmental Authorities, if any) and the taking of all reasonable steps as may be necessary to obtain any
approval or waiver from, or to avoid any action or proceeding by, any Governmental Authority, (ii) the obtaining of all necessary consents, approvals or waivers from third Persons, and (iii) the execution and delivery of any and all
agreements, documents and instruments as are necessary and appropriate in order to effectuate and carry out the provisions of this Agreement and the Ancillary Instruments to which it is a party and the consummation of the transactions contemplated
hereby and thereby. 
 5.2 Partnership Distributions. Prior to December 31, 2005, TIN and Gypsum, in their capacities as the
general partners of the Partnership, shall each cause its representatives serving on the Management Committee of the Partnership to consent to and authorize, contingent upon Closing, a distribution to the Sellers equal to the following: (i) 50%
of the amount shown as “net income” on the audited statement of operations of the Partnership for the year ending December 31, 2005, minus (ii) any prior cash distributions made to Sellers for the fiscal year ending
December 31, 2005 (or any portion thereof) in their capacities as partners of the Partnership (such amount as determined by the formula described in (i)-(ii) of this Section 5.2 collectively, the “Closing
Distribution”). Sellers and Purchasers acknowledge and agree that (x) a distribution of $2.5 million has been made to Sellers as of December 30, 2005, and that such distribution shall be subtracted as provided in (ii) above
for purposes of determining the Closing Distribution and (y) if the Closing occurs and the Closing Distribution is made pursuant to this Section 5.2, such Closing Distribution will be in full and complete satisfaction of Sellers’
right to receive any “net free cash flow” for the period ending December 31, 2005. Notwithstanding anything else in this Agreement or the Partnership Agreement to the contrary, Purchasers and Sellers agree that if the Closing occurs
prior to January 31, 2006, Sellers shall not be entitled to any distribution of net free cash flow or any allocation of profits, gains, losses, credits and other items realized or recognized by the Partnership for any period commencing on or
after January 1, 2006. Purchasers shall, on the later to occur of: (i) the Closing Date or (ii) one (1) Business Day following the issuance by Deloitte & Touche LLP of its audit report on the Partnership’s financial
statements for the year ending December 31, 2005, pay the Closing Distribution by wire transfer of immediately available funds to the account or accounts specified by Sellers pursuant to Section 2.6(a)(i) or any other account or accounts
subsequently designated by Sellers no later than one (1) Business Day prior to the date that such payment is due. 
 5.3 Consent.
Each of the parties acknowledges and agrees that the purchase and sale of the Partnership Interests contemplated by this Agreement are not being made pursuant to the terms of the Partnership Agreement and consents to the purchase and sale of the
Partnership Interests pursuant to this Agreement notwithstanding any provision to the contrary contained in the Partnership Agreement. 
 5.4
Certain Tax Matters. 
 (a) Tax Returns. The parties acknowledge and agree that TIN shall (i) deliver or cause to be
delivered a Schedule K-l for the taxable year of the Partnership ending on December 31, 2005 to Seller as soon as practicable after the Closing Date, but not later than one hundred eighty (180) days after the Closing Date,
(ii) deliver or cause to be delivered a Schedule K-l for the taxable year (including, if applicable, any short taxable year) of the 
  

 -13- 

 Partnership subsequent to the year ending on December 31, 2005 to Seller as soon as practicable
after the end of such taxable year, but not later than one hundred eighty (180) days after the end of such taxable year, and (iii) prepare and timely file, or cause to be prepared and timely filed, a federal information tax return and any
required similar state tax returns for the Partnership for the taxable year of the Partnership ending on December 31, 2005, and that upon the request of any Seller, TIN shall furnish to Caraustar a copy of the proposed form of any such federal
or state information tax return of the Partnership not less than ten (10) Business Days before the final version of such return is to be filed, and will furnish to each Seller such information concerning the Partnership’s tax matters for
periods ending on or prior to December 31, 2005 as such Seller may reasonably request. 
 (b) Section 754
Election. Caraustar and Sellers agree and consent to the Partnership making the election provided in Code section 754 effective for any or all of the returns described in Section 5.4(a) above, as TIN, in its sole discretion, may determine.

 5.5 Confidentiality; Public Announcements. The parties agree that the terms and conditions of the transactions contemplated in this
Agreement are to remain confidential, except that a party and its Affiliates may disclose the terms and provisions of this Agreement (i) to the extent that any party or any of its Affiliates is required by applicable law or by the rules of any
securities exchange to make public disclosure or (ii) in any legal proceeding, including any audit, to the extent necessary to enforce any rights under this Agreement, in either case, the disclosing party shall provide the other party with
prior notice of such disclosure and the content thereof. Notwithstanding the foregoing, following the Closing, a party may issue a press release or make other public announcements disclosing that the transactions contemplated by this Agreement have
been consummated, but shall not disclose any other terms of the transactions, except to the extent required by applicable law or by the rules of any securities exchange. Each party shall provide the other party with the reasonable opportunity to
review any press release concerning the transactions contemplated by this Agreement prior to dissemination of such press release. Any announcement or notice to the employees of the Partnership shall be jointly planned and coordinated by Purchasers
and Sellers. 
 5.6 Caraustar Letter of Credit. On or prior to the second Business Day following the Closing, Purchasers shall payoff,
or shall cause the Partnership to payoff, all amounts owed by the Partnership pursuant to that certain Loan Agreement dated as of September 22, 2005, by and among the Partnership and Toronto Dominion (Texas), LLC, as lender and administrative
agent (the “Loan Agreement”). Purchasers shall use their reasonable commercial efforts to assist Caraustar in obtaining the release and cancellation of that certain letter of credit delivered by Caraustar for the benefit of the lenders
under the Loan Agreement. 
 5.7 Surviving Contractual Indemnity. Subject to the limitations set forth in Section 5.8 hereof,
Caraustar shall indemnify, defend and hold TIN harmless from and against the matters identified in Section 13.1(d)(i) and Section 13(d)(v) of the Formation Agreement. Purchasers confirm and agree that, except as expressly provided herein,
any and all other obligations of Caraustar in Section 13.1 of the Formation Agreement shall be null and void as of the Closing and forever thereafter. 
  

 -14- 

 5.8 Limitation of Surviving Contractual Indemnity. 
 (a) as used in this Section 5.8, the following terms shall have the following meanings: 
 (i) “Claim” means a claim for indemnification under Section 5.7. A series of claims arising out of or relating to the same
act, omission, event, condition or circumstance is a single “Claim”. 
 (ii) “Claim Threshold” means
$50,000.00. 
 (b) No indemnification shall be made under Section 5.7 unless the Claim exceeds the Claim Threshold. If a
Claim exceeds the Claim Threshold, Caraustar shall, subject to the other limitations set forth in this Section 5.8, pay the Claim in its entirety without regard to the Claim Threshold. 
 (c) Caraustar’s total liability for all Claims under Section 5.8 shall in no event exceed five million dollars USD
($5,000,000.00). 
 (d) Caraustar shall have no obligation to make indemnification with respect to Claims made under
Section 5.7 unless TIN shall have asserted the Claim within five (5) years after the Closing Date (as defined in Section 2.4 of this Agreement). 
 (e) Each of Caraustar and TIN shall promptly notify the other if such party receives notice of any order, demand, claim or facts which
could reasonably be expected to lead to a Claim. Upon such notification, Caraustar shall have the right to reasonably determine the appropriate actions to be taken and to prepare and implement the necessary response action plan through its internal
environmental and legal personnel or qualified external environmental consulting and contracting firms selected, engaged and directed by Caraustar. Caraustar shall also have the right, at its own expense, to pursue administrative appeals or
litigation in order to avoid or mitigate a potential Claim. Caraustar shall consult with TIN prior to making each determination, and shall promptly advise TIN on each determination when made. In no event shall Caraustar make such determination
involving a material change in plant operations without first receiving the approval of TIN, which approval shall not be unreasonably withheld or delayed. In no event shall TIN cause or obligate Caraustar to undertake any response work without
Caraustar’s prior written consent, which shall not be unreasonably withheld or delayed. Caraustar shall have the sole right to obtain reimbursement or payment from any insurance policy, governmental fund, responsible party or other source
available for payment of costs related to its indemnification obligations under Section 5.7. TIN will cooperate with any response work conducted by Caraustar, including the placement of engineering or institutional controls to the extent such
controls do not materially affect the industrial use of the real property or the operational costs of the facility, as well as any efforts to obtain reimbursement or payment, upon request by Caraustar. Upon advanced reasonable notice to TIN by
Caraustar, TIN agrees that Caraustar shall have full access to the subject facilities to undertake response work related to its indemnification obligations under Section 5.7 and shall have sole control over such work. Caraustar shall

  

 -15- 

 keep TIN timely informed as to the progress of the response work, and shall do all that is reasonably
possible to avoid disruption of facility operations when undertaking response actions. In no event shall Caraustar’s indemnity obligation as set forth in Section 5.7 be deemed to cover any change in Environmental Law (as defined in the
Formation Agreement) after the Closing Date (as defined in the Formation Agreement), nor shall the limitations in Section 5.8 affect any other indemnity obligations of Caraustar or Sellers under this Agreement. 
 ARTICLE 6  
 Survival of Representations and Warranties; Indemnification 
 6.1 Survival of Representations and Warranties.
All representations, warranties, covenants and agreements made by any party hereunder shall survive the Closing. 
 6.2 Obligation of
Caraustar and Sellers to Indemnify. Caraustar and Sellers, jointly and severally, shall indemnify, defend and hold harmless Purchasers and their successors and assigns, from and against any loss or damage resulting in an actual expenditure by
Purchasers, the Partnership or any of their Affiliates, or any of their successors or assigns, and any cost or expense, including reasonable attorneys’ fees and expenses actually paid, suffered, sustained, incurred or required to be paid by
Purchasers, the Partnership or any of their Affiliates, or any of their successors and assigns, based upon, arising out of or otherwise with respect to a breach or inaccuracy of any representation or warranty made by Caraustar or any Seller
hereunder, or any failure of Caraustar or any Seller to perform or comply with any covenant or agreement contained herein or in any Ancillary Instrument to which it is a party. 
 6.3 Obligation of Purchasers to Indemnify. Purchasers, jointly and severally, shall indemnify, defend and hold harmless Caraustar and Sellers and
their successors and assigns, from and against any loss or damage resulting in an actual expenditure by Caraustar, Sellers, their Affiliates or any of their successors and assigns, and any cost or expense, including reasonable attorneys’ fees
and expenses actually paid, suffered, sustained, incurred or required to be paid by Caraustar, Sellers, their Affiliates or any of their successors and assigns, based upon, arising out of or otherwise with respect to a breach or inaccuracy of any
representation or warranty made by Purchaser hereunder, or any failure of Purchaser to perform or comply with any covenant or agreement contained herein or in any Ancillary Instrument to which it is a party. 
 6.4 Procedure for Indemnification – Third Party. 
 (a) If any Person entitled to indemnification pursuant to this Article 6 (an “Indemnified Person”) receives notice of any
third party claim by a Person not affiliated with a party to this Agreement or the commencement of any suit, action, proceeding or investigation by such a Person with respect to which any other person (or persons) is obligated to provide
indemnification (an “Indemnifying Person”) pursuant to this Article 6, the Indemnified Person shall promptly give the Indemnifying Person written notice thereof (an “Indemnification Notice”), but the failure to give
an Indemnification Notice to the Indemnifying Person shall not relieve the Indemnifying Person of any liability that it may 
  

 -16- 

 have to an Indemnified Person, except to the extent that the Indemnifying Person shall have been actually
prejudiced in its ability to defend the suit, action, claim, proceeding or investigation for which such indemnification is sought by reason of such failure. 
 (b) Upon receipt of an Indemnification Notice, the Indemnifying Person shall be entitled at its option and at its cost and expense to
assume the defense of such suit, action, claim, proceeding or investigation with respect to which it is called upon to indemnify an Indemnified Person pursuant to this Article 6; provided, however, that, notice of the Indemnifying
Person’s intention to assume such defense shall be given by the Indemnifying Person to the Indemnified Person within fifteen (15) days after the Indemnified Person gives the Indemnifying Person an Indemnification Notice. In the event that
the Indemnifying Person elects to assume the defense of such suit, action, claim, proceeding or investigation, as the case may be, the Indemnifying Person shall promptly retain counsel reasonably satisfactory to the Indemnified Person. The
Indemnified Person shall have the right to employ its own counsel in any such suit, action, claim, proceeding or investigation, but the fees and expenses of such counsel shall be at the expense of the Indemnified Person unless: (i) the
employment of such counsel shall have been authorized by the Indemnifying Person; (ii) the Indemnifying Person shall not have promptly retained counsel reasonably satisfactory to the Indemnified Person to take charge of the defense of such
suit, action, claim, proceeding or investigation; or (iii) the Indemnified Person shall have reasonably concluded that there may be one or more legal defenses available to it that are different from or additional to those available to the
Indemnifying Person if the Indemnifying Person is also a defendant in such claim, suit, action, proceeding or investigation, in which event, such fees and expenses (including, without limitation, any fees paid to witnesses) shall be borne by the
Indemnifying Person. In the event of (i), (ii) or (iii) above, the Indemnifying Person shall not have the right to direct the defense of any suit, action, claim, proceeding or investigation on behalf of the Indemnified Person, but may
participate therein. Notwithstanding the foregoing, if any Indemnified Person reasonably determines in good faith that there is a reasonable probability that an action may materially and adversely affect it or its subsidiaries or Affiliates other
than as a result of monetary damages for which it would be entitled to indemnification from the Indemnifying Person under this Agreement, such Indemnified Person may, by written notice to the Indemnifying Person, assume the exclusive right to
defend, compromise or settle such action, but the Indemnifying Person shall not be bound by any determination of an action so defended or any compromise or settlement thereof effected without its consent (which shall not be unreasonably withheld or
unreasonably delayed). 
 (c) If the Indemnifying Person fails to give written notice to the Indemnified Person of its
election to assume the defense of any suit, action, claim, proceeding or investigation for which it is called upon to indemnify an Indemnified Person pursuant to this Article 6 within fifteen (15) days after the Indemnified Person gives the
Indemnification Notice to the Indemnifying Person, the Indemnifying Person shall be bound by any determination made in such suit, action, claim, proceeding or investigation or compromise or settlement thereof effected by the Indemnified Person.

  

 -17- 

 6.5 Procedure for Indemnification – Direct Claims. If an Indemnified Person shall claim
indemnification hereunder for any claim other than third-party claims described in Section 6.4, the Indemnified Person shall notify the Indemnifying Person in writing of the basis for such claim and such notice shall set forth the nature and
amount of alleged damages resulting from such claim in reasonable detail. The Indemnifying Person shall give written notice of any disagreement with such claim within thirty (30) days following receipt of the Indemnified Person’s notice of
the claim, and such notice shall specify the nature and extent of such disagreement in reasonable detail. If the Indemnifying Person and the Indemnified Person are unable to resolve any disagreement within thirty (30) days following receipt by
the Indemnified Person of the notice referred to in the preceding sentence, then the parties hereto agree, subject to this Section 6.5, to arbitrate any such claim as set forth in Section 7.6. 
 6.6 Covered Persons. The obligations of Caraustar and Sellers under this Article 6 shall extend, upon the same terms and conditions, to each
person, if any, who controls Purchasers, the Partnership or any of their Affiliates and each of their respective successors or assigns, within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of
1934, as amended, and to officers, directors, shareholders, members, partners, employees, consultants and agents of Purchasers, the Partnership or any of their Affiliates, and each of their respective successors or assigns, and their controlling
persons. The obligations of Purchasers under this Article 6 shall extend, upon the same terms and conditions, to each person, if any, who controls Caraustar, Sellers, any of their Affiliates and each of their respective successors or assigns, within
the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended, and to officers, directors, shareholders, members, partners, employees, consultants and agents of Caraustar, Sellers, any of
their Affiliates and each of their respective successors or assigns, and their controlling persons. 
 6.7 Exclusive Remedy. If the
Closing occurs, the remedies provided in this Article 6 constitute the sole and exclusive remedies for recoveries against another party for breaches of the representations, warranties, covenants and agreements in this Agreement and for the matters
specifically listed in this Article 6 as being indemnified against; provided, however, that neither the foregoing nor anything else in this Agreement will limit the right of a party to enforce the performance of this Agreement by any
remedy available to it in equity, including specific performance, or to any remedy whatsoever with respect to the Nondisclosure Agreement or the Supply Agreement. Notwithstanding the foregoing limitation, nothing in this Section 6.7 shall be
construed or interpreted to apply to any cost, damage, expense or loss with respect to, as a result of or involving (i) any breach of a representation, warranty, covenant or agreement in this Agreement, whether by act or omission, intended to
mislead the party relying on it or (ii) fraud. 
 ARTICLE 7  
 Miscellaneous 
 7.1 Fees and Expenses. Whether or not the
transactions contemplated hereby are consummated, each Purchaser, on the one hand, and each of Caraustar and Sellers on the other hand, 
  

 -18- 

 shall each pay its own fees and expenses incident to the negotiation, preparation and execution of this Agreement and the
consummation of the transactions contemplated hereby, including attorneys’, accountants’ and other advisors’ fees and the fees and expenses of any broker, finder or agent retained by such party in connection with the transaction
contemplated hereby. 
 7.2 Notices. Any notice or other communication required or which may be given hereunder shall be in writing
and shall be delivered personally or sent by overnight courier service (with all fees prepaid) or facsimile transmission, to the parties at the following addresses or at such other addresses as shall be specified by the parties by like notice as
follows: 
  

	 	(i)	If to Purchasers: 

 c/o Temple-Inland Inc. 
 303 South Temple Drive 
 Diboll, Texas 75941

 Telefax: 936.829.1248 
 Attention: Jack C. Sweeny 
 Executive Vice President-Forest Products 
 with a copy to: 
 c/o Temple-Inland Inc.

 1300 S. Mopac Expressway 
 Austin, Texas 78746 
 Telefax: 512.434.8051 
 Attention: George S. Vorpahl 
 and 
 Sutherland Asbill & Brennan LLP 
 999 Peachtree Street, NE, Suite 2300 
 Atlanta, Georgia 30309 
 Telefax: 404.853.8806 
 Attention: Thomas C.
Herman 
  

	 	(ii)	If to Caraustar or any Seller: 

 c/o Caraustar Industries,
Inc. 
 5000 Austell-Powder Springs Road, Suite 300 
 Austell, Georgia 30106 
 Telefax: 770.732.3433 
 Attention: Michael J. Keough 
  

 -19- 

 with a copy to: 
 Caraustar Industries, Inc. 
 Legal Department 
 5000 Austell – Powder Springs Road, Suite 300 
 Austell, Georgia 30106 
 Telefax: 770.745.3719 
 Attention: Wilma Beaty 
 Robinson, Bradshaw & Hinson, P.A. 
 101 North Tryon Street, Suite 1900 
 Charlotte, North Carolina 28246 
 Telefax: 704.378.4000 
 Attention: Robert G. Griffin 
 Any such notice, request,
demand or other communication shall be deemed to be given if delivered in person, on the date delivered, if made by facsimile transmission, on the date transmitted (as evidenced by electronic confirmation), or, if sent by overnight courier service,
on the date delivered as evidenced by the date of the bill of lading. Any party sending a notice, request, demand or other communication by facsimile transmission shall also send a hard copy of such notice, request, demand or other communication by
one of the other means of providing notice set forth in this Section 7.2. Any notice, request, demand or other communication shall be given to such other representative or at such other address as a party to this Agreement may furnish to the
other parties in writing pursuant to this Section 7.2. 
 7.3 Entire Agreement. This Agreement and any exhibits and schedules
hereto contain the entire agreement between the parties with respect to the purchase of the Partnership Interests and related transactions and supersede all prior contracts and other agreements, written or oral, with respect thereto. 
 7.4 Waivers and Amendments. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms and conditions
hereof may be waived, only by a written instrument signed by the parties hereto or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder, preclude any other or further exercise thereof or the exercise
of any other right, power or privilege hereunder. The rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies that any party may otherwise have at law or in equity. The rights and remedies of any party
arising out of or otherwise in respect of any inaccuracy in or breach of any representation or warranty, or any failure to perform or comply with any covenant or agreement, contained in this Agreement shall in no way be limited by the fact that the
act, omission, occurrence or other state of facts upon which any claim of any such inaccuracy, breach or failure is based may also be the subject matter of any other representation, warranty, covenant or agreement contained in this Agreement (or in
any other agreement between the parties) as to which there is no inaccuracy, breach or failure. 
  

 -20- 

 7.5 Governing Law. This Agreement shall be governed by, and construed and enforced in accordance
with the internal laws of the State of Delaware without regard to its conflicts of law principles. 
 7.6 Dispute Resolution. All
claims or disputes arising between the parties relating to this Agreement or the breach thereof, including claims unresolved pursuant to Section 6.5, shall be resolved by final and binding arbitration instituted and conducted pursuant to the
Commercial Arbitration Rules of the American Arbitration Association (the “AAA Rules”), except to the extent such rules are modified or altered by this Section 7.6. All arbitration hearings of claims shall be conducted in
Houston, Texas. The arbitrator(s) shall have the authority to award interest on any damages and to award attorneys fees and costs to the prevailing party or parties, if any, or to allocate such fees and costs as the arbitrator(s) shall determine to
be equitable. A judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction. The agreement to arbitrate set forth in this Section 7.6 may only be enforced by the parties to this Agreement and their
permitted successors and assigns, shall survive the termination or breach of this Agreement, and shall be construed pursuant to and governed by the provisions of the Federal Arbitration Act, 9 U.S.C. §l, et seq. 
 7.7 Binding Effect; Benefit. This Agreement shall inure to the benefit of, and be binding upon the parties hereto and their respective successors
and assigns. Nothing in this Agreement, expressed or implied, is intended to confer on any Person other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this
Agreement. 
 7.8 No Assignment. This Agreement is not assignable except by operation of law; provided, however, that
either Purchaser may assign this Agreement to an Affiliate (but any such assignment shall not release the assigning Purchaser from its obligations under this Agreement). 
 7.9 Counterparts. This Agreement may be executed in any number of counterparts and by the parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. 
 7.10 Severability. If any provision of this Agreement, or the
application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not
in any way be impaired, unless the provisions held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining provisions hereof. 
 [Signatures on following page] 
  

 -21- 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	TIN INC.
		
	By:	 	 /s/ Jack C. Sweeny

		 	 Jack C. Sweeny
 Executive Vice
President

	
	TEMPLE GYPSUM COMPANY
		
	By:	 	 /s/ Andrew D. Harris

		 	 Andrew D. Harris
 President

	
	GYPSUM MGC, INC.
		
	By:	 	 /s/ Ronald J. Domanico

	Name:	 	Ronald J. Domanico
	Title:	 	Vice President, Secretary and Treasurer
	
	MCQUEENY GYPSUM COMPANY, LLC 
	
	By: McQueeney Gypsum Company, its sole member 
		
	By:	 	 /s/ Ronald J. Domanico

	Name:	 	Ronald J. Domanico
	Title:	 	Vice President, Secretary and Treasurer
	
	CARAUSTAR INDUSTRIES, INC.
		
	By:	 	 /s/ Michael J. Keough

	Name:	 	Michael J. Keough
	Title:	 	President and CEO

 Signature page to Partnership Interests Purchase Agreement 
  
 *    *    * 
  
 The following Exhibits to the Agreement for Purchase and Sale of Partnership Interests in Standard
Gypsum, L.P., dated as of January 17, 2006 are omitted, and the Company will furnish supplementally any such omitted Exhibit to the Commission upon request. 
 Exhibit A – Supply Agreement 
 Exhibit B – Nondisclosure Agreement 
 Exhibit C – Mutual ReleaseDirector Deferral Plan

 Exhibit 10.17 
 COCA-COLA BOTTLING CO. CONSOLIDATED 
 DIRECTOR DEFERRAL PLAN 
 (Amended and Restated Effective January 1, 2005) 
  

	1.	Name and Effective Date: 

 This plan shall be known
as the “Coca-Cola Bottling Co. Consolidated Director Deferral Plan” (the “Plan”). The Plan was originally effective as of January 1, 1998, was amended as of January 1, 2000, and is hereby amended and restated effective
as of January 1, 2005. 
  

	2.	Purpose and Intent: 

 The purpose of the Plan is to
provide nonemployee members of the Board of Directors of the Company with the opportunity to defer payment of the director fees payable with respect to a year in accordance with the terms and provisions set forth herein. It is the intent of the
Company that amounts deferred under the Plan by a director shall not be taxable to the director for income tax purposes until the time actually received by the director. The provisions of the Plan shall be construed and interpreted to effectuate
such intent. 
  

	3.	Definitions: 

 For purposes of the Plan, the
following terms shall have the following meanings: 
 (a) “Account” means the account established and maintained on the books of the
Company to record a Participant’s interest under the Plan attributable to amounts credited to the Participant pursuant to paragraph 5(c) below, as adjusted from time to time pursuant to the terms of the Plan. 
 (b) “Beneficiary” means the person(s) or entity(ies) designated by the Participant to receive the Participant’s benefits under the Plan in
the event of the Participant’s death. Designation of a Participant’s Beneficiary shall be made on such forms and pursuant to such procedures as determined by the Plan Administrator from time to time. If a Participant fails to designate a
Beneficiary or if the designated Beneficiary fails to survive the Participant, then the Beneficiary shall be the Participant’s surviving spouse, and if there is no surviving spouse, then the Participant’s estate. 
 (c) “Claim” means a claim for benefits under the Plan. 
 (d) “Claimant” means a person making a Claim. 
 (e) “Code” means the Internal Revenue
Code, as now in effect or as hereafter amended. All citations to sections of the Code are to such sections as they may from time to time be amended or renumbered. 

 (f) “Company” means Coca-Cola Bottling Co. Consolidated, a Delaware corporation. 
 (g) “Compensation Committee” means the committee of individuals who are serving from time to time as the members of the Compensation Committee
of the Board of Directors of the Company. 
 (h) “Fees” means both (i) the annual retainer fee and (ii) any meeting fees
payable to a Nonemployee Director under the Company’s compensation policies for directors in effect from time to time. 
 (i)
“Nonemployee Director” means an individual who is a member of the Board of Directors of the Company, but who is not an employee of the Company. 
 (j) “Participant” means a Nonemployee Director who has elected to participate in the Plan as provided in paragraph 5(b) below. 
 (k) “Plan Administrator” means the Executive Vice President and Assistant to the Chairman or such other person designated by such individual or by the Chief Executive Officer of the Company. 
 (l) “Plan Year” means the twelve (12) month period beginning each January 1 and ending the next following December 31.

 (m) “Single Sum Value” of the Account of a Participant who is receiving annual installments pursuant to paragraph 5(h) means the
single sum present value of the installments determined as of the relevant determination date using for such purpose as the discount rate the same rate that was used in calculating the amount of the installments pursuant to paragraph 5(g) below.

  

	4.	Administration: 

 The Plan Administrator shall be
responsible for administering the Plan. The Plan Administrator shall have all of the powers necessary to enable it to properly carry out its duties under the Plan. Not in limitation of the foregoing, the Plan Administrator shall have the power to
construe and interpret the Plan and to determine all questions that shall arise thereunder. The Plan Administrator shall have such other and further specified duties, powers, authority and discretion as are elsewhere in the Plan either expressly or
by necessary implication conferred upon it. The Plan Administrator may appoint such agents as it may deem necessary for the effective performance of its duties, and may delegate to such agents such powers and duties as the Plan Administrator may
deem expedient or appropriate that are not inconsistent with the intent of the Plan. The decision of the Plan Administrator upon all matters within its scope of authority shall be final and conclusive on all persons, except to the extent otherwise
provided by law. 
  

 2 

	5.	Operation: 

 (a) Eligibility. Each
Nonemployee Director shall be eligible to participate in the Plan. 
 (b) Elections to Defer. A Nonemployee Director may become a
Participant in the Plan by irrevocably electing to defer all or a specified portion of the Fees payable for a Plan Year to the Nonemployee Director. In order to be effective, a Nonemployee Director’s election to defer must be completed in
accordance with procedures established by the Plan Administrator within 30 days following the date the Nonemployee Director first becomes eligible to participate in the Plan. Such election shall apply to Fees earned during the portion of the Plan
Year remaining after such election is made and which, but for such election, would be paid to the Nonemployee Director. A Nonemployee Director’s election to defer all or a specified portion of the Fees earned in any subsequent Plan Year must be
completed in accordance with procedures established by the Plan Administrator no later than the December 31 of the Plan Year before the Plan Year to which the election relates. 
 (c) Establishment of Accounts. The Company shall establish and maintain on its books an Account for each Participant. Each Account shall be
designated by the name of the Participant for whom established. The amount of Fees deferred by a Participant shall be credited to the Participant’s Account as of the date such Fees would have otherwise been paid to the Participant. 

(d) Periodic Account Adjustments for Deemed Investments. 
 (i) Deemed Investment. The Plan Administrator shall from time to time designate one or more investment vehicle(s) in which the
Accounts of Participants shall be deemed to be invested. The investment vehicle(s) may be designated by reference to the investments available under other plans sponsored by the Company. Each Participant shall designate the investment 
vehicle(s)
in which his or her Account shall be deemed to be invested according to the procedures developed by the Plan Administrator. The Company shall be under no obligation to acquire or invest in any of the deemed investment vehicle(s) under this
subparagraph, and any acquisition of or investment in a deemed investment vehicle by the Company shall be made in the name of the Company and shall remain the sole property of the Company. 
 (ii) Periodic Account Adjustments. Each Account shall be adjusted from time to time at such intervals as determined by the Plan
Administrator. The amount of the adjustment shall equal the amount that each Participant’s Account would have earned (or lost) for the period since the last adjustment had the Account actually been invested in the deemed investment vehicle(s)
designated by the Participant for such period pursuant to paragraph 5(d)(i). 
 (e) Methods of Payment. 
 (i) Termination Prior to Age 65. If a Participant terminates service with the Company as a member of the Board of Directors of the
Company prior to having attained age 65, then the Participant’s Account shall be paid in a single cash payment in accordance with paragraph 5(f) below. 
  

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 (ii) Termination At and After Age 65. If a Participant terminates service with the
Company as a member of the Board of Directors of the Company after having attained age 65, then the Participant’s Account shall be paid in either a single cash payment (in accordance with paragraph 5(f) below) or ten (10) annual
installments (in accordance with paragraph 5(g) below) pursuant to the Participant’s election. Such election shall be irrevocable and shall be made at the time the Participant first elects to defer Fees under the Plan. 
 (f) Single Cash Payment. If a Participant to whom the single cash payment method applies terminates services with the Company as a member of the
Board of Directors of the Company, such Participant’s Account determined as of the date of such termination of service shall be paid to the Participant (or Beneficiary in case of death) as soon as practicable after such termination of service.
Notwithstanding the foregoing, at the time a Participant first elects to defer Fees under the Plan, the Participant may elect to have the payment of the Participant’s Account deferred until the date the Participant attains age 65, provided that
the Participant terminates service after having attained at least age 60 (i.e., the deferral to age 65 will not apply if the Participant terminates service prior to age 60). Such election shall be irrevocable and shall be made in such forms and
pursuant to such procedures as established by the Plan Administrator from time to time. 
 (g) Annual Installments. If a Participant
to whom the annual installments method applies terminates service with the Company as a member of the Board of Directors of the Company, the amount of such annual installments shall be calculated and paid to the Participant (or Beneficiary in the
case of death) pursuant to the provisions of this paragraph 5(g). The first installment shall be paid as soon as administratively practicable following such termination of service, and each subsequent installment shall be paid on or about the
anniversary of the first installment payment. The amount of the annual installments shall be calculated, based on the balance in the Participant’s Account determined as of the date of such termination of services, as ten (10) equal annual
installments amortized over the payment period using an eight percent (8%) interest rate. If a Participant who has selected the annual installments method dies before any or all of the annual installments have been paid, such remaining annual
installments shall be paid to the Participant’s Beneficiary at such time as they would have otherwise been paid to the Participant had the Participant not died. 
 (h) Other Payment Provisions. Subject to the provisions of paragraph 5(i) and paragraph 6 below, a Participant shall not be paid any portion of the Participant’s Account prior to the Participant’s
termination of service as a member of the Board of Directors of the Company. Any payment hereunder shall be subject to applicable payroll and withholding taxes. In the event any amount becomes payable under the provisions of the Plan to a
Participant, Beneficiary or other person who is a minor or an incompetent, whether or not declared incompetent by a court, such amount may be paid directly to the minor or incompetent person or to such person’s fiduciary (or attorney-in-fact in
the case of an incompetent) as the Plan Administrator, in its sole discretion, may decide, and the Plan Administrator shall not be liable to any person for any such decision or any payment pursuant thereto. 
  

 4 

 (i) Withdrawals on Account of an Unforeseeable Emergency. A Participant who is in active service
as a member of the Board of Directors of the Company may, in the Plan Administrator’s sole discretion, receive a refund of all or any part of the amounts previously credited to the Participant’s Account in the case of an
“unforeseeable emergency”. A Participant requesting a payment pursuant to this subparagraph (i) shall have the burden of proof of establishing, to the Plan Administrator’s satisfaction, the existence of such “unforeseeable
emergency”, and the amount of the payment needed to satisfy the same. In that regard, the Participant shall provide the Plan Administrator with such financial data and information as the Plan Administrator may request. If the Plan Administrator
determines that a payment should be made to a Participant under this subparagraph (i), such payment shall be made within a reasonable time after the Plan Administrator’s determination of the existence of such “unforeseeable emergency”
and the amount of payment so needed. As used herein, the term “unforeseeable emergency” means a severe financial hardship to a Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent of
the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The circumstances that shall constitute an
“unforeseeable emergency” shall depend upon the facts of each case, but, in any case, payment may not be made to the extent that such hardship is or may be relieved (i) through reimbursement or compensation by insurance or otherwise,
or (ii) by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship. Examples of what are not considered to be “unforeseeable emergencies” include the
need to send a Participant’s child to college or the desire to purchase a home. Withdrawals of amounts because of an “unforeseeable emergency” shall not exceed an amount reasonably needed to satisfy the emergency need. 
 (j) Statements of Account. Each Participant shall receive an annual statement of the Participant’s Account balance. 
  

	6.	Amendment, Modification and Termination of the Plan: 

 The Board of Directors (either by its own action or by action of the Compensation Committee) shall have the right and power at any time and from time to time to amend the Plan in whole or in part and at any time to terminate the Plan;
provided, however, that no such amendment or termination shall reduce the amount actually credited to a Participant’s Account under the Plan on the date of such amendment or termination. Notwithstanding the provisions of paragraph 5(e) and
5(g), and subject to the provisions of Section 409A of the Code, in connection with any termination of the Plan the Board of Directors shall have the authority to cause the Accounts of all Participants to be paid in a single sum payment as of a
date determined by the Board of Directors or to otherwise accelerate the payment of all Accounts in such manner as the Board of Directors shall determine in its discretion. In that regard, upon any termination of the Plan the amount of any payment
to a Participant (or beneficiary of a deceased Participant) who is receiving annual installments pursuant to paragraph 5(g) shall be the Single Sum Value of the Participant’s Account determined as of the selected determination date. 

 

 5 

	7.	Claims Procedures: 

 (a) General. In the
event that a Claimant has a Claim under the Plan, such Claim shall be made by the Claimant’s filing a notice thereof with the Plan Administrator within ninety (90) days after such Claimant first has knowledge of such Claim. Each Claimant
who has submitted a Claim to the Plan Administrator shall be afforded a reasonable opportunity to state such Claimant’s position and to present evidence and other material relevant to the Claim to the Plan Administrator for its consideration in
rendering its decision with respect thereto. The Plan Administrator shall render its decision in writing within ninety (90) days after the Claim is referred to it, unless special circumstances require an extension of such time within which to
render such decision, in which event such decision shall be rendered no later than one hundred eighty (180) days after the Claim is referred to it. A copy of such written decision shall be furnished to the Claimant. 
 (b) Notice of Decision of Plan Administrator. Each Claimant whose Claim has been denied by the Plan Administrator shall be provided written notice
thereof, which notice shall set forth: 
 (i) the specific reason(s) for the denial; 
 (ii) specific reference to pertinent provision(s) of the Plan upon which such denial is based; 
 (iii) a description of any additional material or information necessary for the Claimant to perfect such Claim and an explanation of why
such material or information is necessary; and 
 (iv) an explanation of the procedure hereunder for review of such Claim;

 all in a manner calculated to be understood by such Claimant. 
 (c) Review of Decision of Plan Administrator. Each such Claimant shall be afforded a reasonable opportunity for a full and fair review of the decision of the Plan Administrator denying the Claim. Such review
shall be by the Compensation Committee. Such appeal shall be made within ninety (90) days after the Claimant received the written decision of the Plan Administrator and shall be made by the written request of the Claimant or such
Claimant’s duly authorized representative of the Compensation Committee. In the event of appeal, the Claimant or such Claimant’s duly authorized representative may review pertinent documents and submit issues and comments in writing to the
Compensation Committee. The Compensation Committee shall review the following: 
 (i) the initial proceedings of the Plan
Administrator with respect to such Claim; 
  

 6 

 (ii) such issues and comments as were submitted in writing by the Claimant or the
Claimant’s duly authorized representative; and 
 (iii) such other material and information as the Compensation
Committee, in its sole discretion, deems advisable for a full and fair review of the decision of the Plan Administrator. 
 The Compensation Committee may
approve, disapprove or modify the decision of the Plan Administrator, in whole or in part, or may take such other action with respect to such appeal as it deems appropriate. The decision of the Compensation Committee with respect to such appeal
shall be made promptly, and in no event later than sixty (60) days after receipt of such appeal, unless special circumstances require an extension of such time within which to render such decision, in which event such decision shall be rendered
as soon as possible and in no event later than one hundred twenty (120) days following receipt of such appeal. The decision of the Compensation Committee shall be in writing and in a manner calculated to be understood by the Claimant and shall
include specific reasons for such decision and set forth specific references to the pertinent provisions of the Plan upon which such decision is based. The Claimant shall be furnished a copy of the written decision of the Compensation Committee.
Such decision shall be final and conclusive upon all persons interested therein, except to the extent otherwise provided by applicable law. 
  

	8.	Applicable Law: 

 The Plan shall be construed,
administered, regulated and governed in all respects under and by the laws of the United States to the extent applicable, and to the extent such laws are not applicable, by the laws of the state of North Carolina. 
  

	9.	Compliance with Section 409A of the Code: 

 The
Plan is intended to comply with Section 409A of the Code. Notwithstanding any provision of the Plan to the contrary, the Plan shall be interpreted, operated and administered consistent with this intent. 
  

	10.	Miscellaneous: 

 A Participant’s rights and
interests under the Plan may not be assigned or transferred by the Participant. The Plan shall be an unsecured, unfunded arrangement. To the extent the Participant acquires a right to receive payments from the Company under the Plan, such right
shall be no greater than the right of any unsecured general creditor of the Company. Nothing contained herein shall be deemed to create a trust of any kind or any fiduciary relationship between the Company and any Participant. The Plan shall be
binding on the Company and any successor in interest of the Company. 
  

 7 

 IN WITNESS WHEREOF, this instrument has been executed by an authorized officer of the Company as of the
7th day of December, 2005. 
  

			
	 COCA-COLA BOTTLING
 CO.
CONSOLIDATED

		
	By:	 	 /s/    Henry W. Flint

	Name:	 	 Henry W. Flint

	  
 Title:
  
	 	  
 Executive Vice President
and
Assistant to the Chairman

  

 8

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