Document:

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                                                                    EXHIBIT 10.3

                                                                  Execution Copy

                     MEMBERSHIP INTEREST PURCHASE AGREEMENT

                                      AMONG

                            SONOCO PRODUCTS COMPANY,

                             CORRFLEX GRAPHICS, LLC,

                            CORRFLEX PACKAGING, LLC,

                                   N717CF, LLC

                                       AND

                  THE MEMBERS AND OPTION AND WARRANT HOLDERS OF
                             CORRFLEX GRAPHICS, LLC

                                 APRIL 28, 2004

        THIS AGREEMENT IS SUBJECT TO ARBITRATION PURSUANT TO SECTION 8.7
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                                TABLE OF CONTENTS
<TABLE>
<S>         <C>                                                                                                 <C>
ARTICLE I     DEFINITIONS.........................................................................................2

ARTICLE II    COVENANTS AND UNDERTAKINGS.........................................................................10

   2.1      PURCHASE OF MEMBERSHIP INTERESTS.....................................................................10
   2.2      ADDITIONAL COVENANTS.................................................................................11
   2.3      PURCHASE PRICE ADJUSTMENT............................................................................11
   2.4      CONDUCT OF THE BUSINESS OF THE COMPANY PRIOR TO CLOSING..............................................12
   2.5      CONSENTS OF THIRD PARTIES; GOVERNMENTAL AUTHORIZATIONS...............................................12
   2.6      NEGOTIATION WITH OTHERS..............................................................................13
   2.7      INVESTIGATIONS.......................................................................................14
   2.8      ENVIRONMENTAL INSPECTION.............................................................................14
   2.9      TITLE ABSTRACTS AND SURVEYS..........................................................................15
   2.10     KEY EMPLOYEES........................................................................................15
   2.11     TAX MATTERS..........................................................................................15
   2.12     EFFORTS TO SATISFY CLOSING CONDITIONS................................................................16
   2.13     MONTHLY FINANCIAL STATEMENTS.........................................................................16
   2.14     MEMBERS' REPRESENTATIVE..............................................................................16
   2.15     COLLECTION OF RECEIVABLES............................................................................17
   2.16     ENVIRONMENTAL........................................................................................17
   2.17     CORRFLEX NAME........................................................................................19

ARTICLE III   REPRESENTATIONS AND WARRANTIES OF..................................................................19

   3.1      AUTHORIZATION........................................................................................19
   3.2      ORGANIZATIONAL, EXISTENCE AND GOOD STANDING OF THE COMPANY AND THE SUBSIDIARIES......................20
   3.3      MEMBERSHIP INTEREST OF THE COMPANY...................................................................20
   3.4      SUBSIDIARIES.........................................................................................21
   3.5      FINANCIAL STATEMENTS.................................................................................21
   3.6      ACCOUNTS AND NOTES RECEIVABLE........................................................................21
   3.7      GOVERNMENTAL PERMITS.................................................................................22
   3.8      TAX MATTERS..........................................................................................22
   3.9      ASSETS AND PROPERTIES................................................................................23
   3.10     REAL PROPERTY LEASES; OPTIONS........................................................................24
   3.11     ENVIRONMENTAL LAWS AND REGULATIONS...................................................................24
   3.12     CONTRACTS............................................................................................25
   3.13     UNDISCLOSED LIABILITIES..............................................................................26
   3.14     NO VIOLATIONS........................................................................................26
   3.15     CONSENTS.............................................................................................26
   3.16     LITIGATION AND RELATED MATTERS.......................................................................27
   3.17     COMPLIANCE WITH LAWS.................................................................................27
   3.18     INTELLECTUAL PROPERTY RIGHTS.........................................................................27
   3.19     EMPLOYEE BENEFIT PLANS...............................................................................28
   3.20     EMPLOYEES; EMPLOYEE RELATIONS........................................................................29
   3.21     INSURANCE............................................................................................31
   3.22     INTERESTS IN CUSTOMERS, SUPPLIERS, ETC...............................................................31
   3.23     BUSINESS RELATIONS...................................................................................31
   3.24     OFFICERS AND MANAGERS................................................................................31
   3.25     BANK ACCOUNTS AND POWERS OF ATTORNEY.................................................................31
   3.26     ABSENCE OF CERTAIN CHANGES OR EVENTS.................................................................31
   3.27     VALIDITY OF AGREEMENT................................................................................32
   3.28     ABSENCE OF CLAIMS AGAINST THE COMPANY................................................................32
   3.29     NO OTHER REPRESENTATIONS OR WARRANTIES...............................................................32
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<TABLE>
<S>         <C>                                                                                                 <C>
ARTICLE IV    REPRESENTATIONS AND WARRANTIES OF PURCHASER........................................................33

   4.1      ORGANIZATION AND STANDING............................................................................33
   4.2      CORPORATE POWER AND AUTHORITY........................................................................33
   4.3      AGREEMENT DOES NOT VIOLATE OTHER INSTRUMENTS; CONSENTS...............................................33
   4.4      NO DEFAULT...........................................................................................33
   4.5      CONSENTS.............................................................................................34
   4.6      FINANCING............................................................................................34

ARTICLE V     CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER TO CLOSE..........................................34

   5.1      COVENANTS OF THE COMPANY AND THE MEMBERS.............................................................34
   5.2      NO INJUNCTION, ETC...................................................................................34
   5.3      OPINION OF COUNSEL...................................................................................34
   5.4      HSR ACT..............................................................................................34
   5.5      DOCUMENTS TO BE DELIVERED............................................................................34
   5.6      CONSENTS.............................................................................................34
   5.7      NO MATERIAL ADVERSE EFFECT...........................................................................35

ARTICLE VI    CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE MEMBERS TO CLOSE....................................35

   6.1      COVENANTS OF PURCHASER...............................................................................35
   6.2      NO INJUNCTION, ETC...................................................................................35
   6.3      OPINION OF COUNSEL FOR PURCHASER.....................................................................35
   6.4      REPRESENTATIONS TRUE AT CLOSING......................................................................35
   6.5      DOCUMENT DELIVERY....................................................................................35
   6.6      HSR ACT..............................................................................................35

ARTICLE VII   CLOSING............................................................................................36

   7.1      TIME AND PLACE OF CLOSING............................................................................36
   7.2      THE COMPANY'S AND THE MEMBERS' PERFORMANCE AT CLOSING................................................36
   7.3      PERFORMANCE BY PURCHASER AT CLOSING..................................................................37

ARTICLE VIII  INDEMNIFICATION; REMEDIES..........................................................................37

   8.1      SURVIVAL OF REPRESENTATIONS AND WARRANTIES...........................................................37
   8.2      INDEMNIFICATION AND PAYMENT OF DAMAGES BY THE MEMBERS................................................38
   8.3      INDEMNIFICATION AND PAYMENT OF DAMAGES BY PURCHASER..................................................38
   8.4      LIMITATIONS ON INDEMNIFICATION.......................................................................38
   8.5      INDEMNIFICATION BY THE EXCLUDED SUBSIDIARIES.........................................................39
   8.6      PROCEDURE FOR INDEMNIFICATION--THIRD PARTY CLAIMS....................................................39
   8.7      PROCEDURE FOR INDEMNIFICATION--DIRECT CLAIMS.........................................................40
   8.8      SUBROGATION..........................................................................................41
   8.9      EXCLUSIVE REMEDY.....................................................................................41

ARTICLE IX    TERMINATION........................................................................................41

   9.1      TERMINATION..........................................................................................41
   9.2      NOTICE OF TERMINATION................................................................................42
   9.3      EFFECT OF TERMINATION................................................................................42

ARTICLE X     GENERAL PROVISIONS.................................................................................42

   10.1     NOTICES..............................................................................................42
   10.2     BROKERS..............................................................................................44
   10.3     FURTHER ASSURANCE....................................................................................44
   10.4     WAIVER...............................................................................................45
   10.5     TAXES AND EXPENSES...................................................................................45
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<TABLE>
<S>         <C>                                                                                                 <C>
   10.6     BINDING EFFECT.......................................................................................45
   10.7     HEADINGS.............................................................................................45
   10.8     ENTIRE AGREEMENT.....................................................................................45
   10.9     GOVERNING LAW........................................................................................45
   10.10    CONFIDENTIALITY......................................................................................45
   10.11    PUBLICITY............................................................................................46
   10.12    ASSIGNMENT...........................................................................................46
   10.13    COUNTERPARTS.........................................................................................46
   10.14    PRONOUNS.............................................................................................46
   10.15    EXHIBITS INCORPORATED................................................................................46
   10.16    CREATION OF THE HOLDING COMPANY......................................................................46
   10.17    OPERATING AGREEMENT..................................................................................47

LIST OF SCHEDULES................................................................................................49

LIST OF EXHIBITS.................................................................................................51
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                     MEMBERSHIP INTEREST PURCHASE AGREEMENT

         THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT entered into this 28th day
of April, 2004, among SONOCO PRODUCTS COMPANY, a South Carolina corporation
(hereinafter sometimes referred to as "Purchaser"), CORRFLEX GRAPHICS, LLC, a
North Carolina limited liability company (hereinafter sometimes referred to as
the "Company"), CORRFLEX PACKAGING, LLC, a North Carolina limited liability
company, N717CF, LLC, a North Carolina limited liability company (each an
"Excluded Subsidiary" and collectively the "Excluded Subsidiaries") and each
Person identified on Schedule 2.1 (each referred to herein as a "Member" and
collectively the "Members").

                                   WITNESSETH:

         WHEREAS, the Members own all of the membership or other equity
interest, or rights to acquire such interests, of the Company; and

         WHEREAS, the Purchaser desires to purchase and the Members desire to
sell all of the membership or other equity interest, or rights to acquire such
interests, of the Company, subject to the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
promises, representations, warranties and covenants hereinafter set forth, the
parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         As used herein, the following terms shall have the following meanings
unless the context otherwise requires:

         1.1      "Allied" shall have the meaning assigned to such term in
                  SECTION 2.14.1

         1.2      "AAA Rules" shall have the meaning assigned to such term in
                  Section 8.7.

         1.3      "Affiliate" means, with respect to any Person, any other
                  Person, directly or indirectly, controlling, controlled by, or
                  under common control with, such Person. For purposes of this
                  definition, the term "control" (including the correlative
                  terms "controlling", "controlled by" and "under common control
                  with") means the possession, direct or indirect, of the power
                  to direct or cause the direction of the management and
                  policies of a Person, whether through the ownership of voting
                  securities, by contract, or otherwise.

         1.4      "Agreement" shall mean this Membership Interest Purchase
                  Agreement.

         1.5      "Agreement Termination Date" shall have the meaning assigned
                  to such term in Section 9.1.

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CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                        PAGE 2

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         1.6      Allocation Schedule" shall have the meaning assigned to such
                  term in Section 2.11.2.

         1.7      "Assets" shall mean all of the assets (other than the excluded
                  assets set forth on Schedule 2.2(b)) of the Company and the
                  Retained Subsidiaries, including, without limitation, (a) all
                  owned real property, leasehold and subleasehold estates,
                  improvements, fixtures and fittings thereon owned by the
                  Company and the Retained Subsidiaries, and easements,
                  rights-of-way and other appurtenances thereto, (b) all
                  tangible personal property (such as machinery, equipment,
                  inventories of raw materials and supplies, manufactured and
                  purchased parts, goods in process and finished goods,
                  furniture, automobiles, trucks, tractors, trailers, tools,
                  jigs, dies and office equipment) owned by the Company and the
                  Retained Subsidiaries, (c) Intellectual Property of the
                  Company and the Retained Subsidiaries, the goodwill associated
                  therewith, licenses and sublicenses granted and obtained with
                  respect thereto, and rights thereunder including the name
                  "CorrFlex" and the stylized trade mark "CorrFlex", (d)
                  accounts, accounts receivable, notes receivable and all other
                  receivables owned by the Company and the Retained
                  Subsidiaries, (e) cash and cash equivalents owned by the
                  Company and the Retained Subsidiaries, (f) prepaid assets
                  owned by the Company and the Retained Subsidiaries, (g)
                  marketable securities owned by the Company and the Retained
                  Subsidiaries and (h) deposits owned by the Company and the
                  Retained Subsidiaries.

         1.8      "Assumption Notice" shall have the meaning assigned to such
                  term in Section 8.6(a).

         1.9      "Audited Statements" shall have the meaning assigned to such
                  term in Section 3.5.

         1.10     "CERCLA" shall mean the federal Comprehensive Environmental
                  Response, Compensation and Liability Act (42 U.S.C.ss.9601 et
                  seq.).

         1.11     "Class C Membership Interests" shall mean the membership
                  Interests obtained by the exercise of the option under the
                  Class C Agreement.

         1.12     "Class C Agreement" shall mean the Class C Membership Option
                  and Redemption Agreement between the Company and John G.
                  Sutlive dated October 13, 1998.

         1.13     "Class D Membership Interests" shall mean the membership
                  Interests obtained by the exercise of the option under the
                  Class D Agreement.

         1.14     "Class D Agreement" shall mean the Class D Membership Option
                  and Redemption Agreement between the Company and John G.
                  Sutlive dated October 13, 1998.

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CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                        PAGE 3

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         1.15     "Class E Membership Interests" shall mean the membership
                  Interests obtained by the exercise of the option under the
                  Class E Agreement.

         1.16     "Class E Agreement" shall mean the Class E Membership Option
                  and Redemption Agreement between the Company and John G.
                  Sutlive dated October 13, 1998.

         1.17     "Closing" shall mean the consummation of the transactions
                  provided for in this Agreement.

         1.18     "Closing Date" shall mean the date on which the Closing occurs
                  pursuant to SECTION 7.1 hereof.

         1.19     "Closing Date Balance Sheet" shall have the meaning assigned
                  such term in SECTION 2.3.

         1.20     "Code" shall mean the Internal Revenue Code of 1986, as
                  amended.

         1.21     "Confidential Information" shall have the meaning assigned
                  such term in SECTION 10.10.

         1.22     "Company" shall have the meaning assigned to such term in the
                  preamble.

         1.23     "Consent" shall mean any approval, consent, ratification,
                  waiver, or other authorization (including any Governmental
                  Authorization).

         1.24     "Contemplated Transactions" shall mean all of the transactions
                  contemplated by this Agreement including the purchase of the
                  Membership Interests and the performance by Purchaser, the
                  Company and the Members of their respective covenants and
                  obligations under this Agreement.

         1.25     "Contracts" shall mean all of the agreements, contracts,
                  licenses and undertakings of the Company and the Retained
                  Subsidiaries including those listed on Schedule 3.12(a) and
                  Schedule 3.10.

         1.26     "Damages" shall have the meaning assigned to such term in
                  SECTION 8.2.

         1.27     "Dispute" shall have the meaning assigned to such term in
                  SECTION 8.7.

         1.28     "Environmental Information" shall have the meaning assigned to
                  such term in SECTION 2.8.

         1.29     "Environmental Requirements" means all laws, statutes, rules,
                  regulations, ordinances, guidance documents, judgments,
                  decrees, orders, agreements and other restrictions and
                  requirements of any governmental authority, including, without
                  limitation, federal, state and local authorities, relating to
                  the regulation or protection of the environment, or the
                  storage, treatment, disposal, transportation,

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CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                        PAGE 4

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                  handling or other management of industrial or solid waste,
                  hazardous waste, hazardous or toxic substances or chemicals,
                  pollutants or Hazardous Substances, including without
                  limitation, CERCLA; the Resource Conservation and Recovery
                  Act, as amended, 42 U.S.C.ss.6901 et seq.; the Federal Water
                  Pollution Control Act, as amended, 33 U.S.C.ss.1251 et seq.;
                  the Toxic Substances Control Act, 15 U.S.C.ss.2601 et seq.;
                  the Clean Air Act, 42 U.S.C.ss.7401 et seq.; the Safe Drinking
                  Water Act, 42 U.S.C. 300f et seq.; and their foreign, state
                  and local counterparts and equivalents.

         1.30     "ERISA" shall mean the Employee Retirement Income Security Act
                  of 1974, as amended.

         1.31     "Escrow Agent" shall mean Wachovia Bank, National Association
                  or such other financial institution as agreed to by the
                  parties.

         1.32     "Escrow Agreement" shall mean the escrow agreement between
                  Purchaser, Members and the Escrow Agent in the form of Exhibit
                  1.32.

         1.33     "Escrow Amount" shall have the meaning assigned to such term
                  in SECTION 2.1.

         1.34     "Excluded Subsidiaries" shall have the meaning assigned to
                  such term in the preamble.

         1.35     "Financial Debt" shall mean all interest-bearing debt, capital
                  leases and obligations under the Class C Membership Interest
                  including such debt and other items set forth in Schedule
                  2.2(a).

         1.36     "Financial Debt Payoff" shall have the meaning assigned to
                  such term in SECTION 2.1.

         1.37     "Financial Statements" shall have the meaning assigned to such
                  term in SECTION 3.15.

         1.38     "GAAP" means generally accepted accounting principles as
                  recognized by the American Institute of Certified Public
                  Accountants, applied on a basis consistent with the basis on
                  which the Financial Statements were prepared.

         1.39     "Governmental Entity" shall mean any federal, state, local,
                  foreign or other governmental or administrative authority,
                  agency, entity, body, court or tribunal.

         1.40     "Governmental Authorization" means any approval, consent,
                  license, permit, waiver, or other authorization issued,
                  granted, given, or otherwise made available by or under the
                  authority of any Governmental Entity or pursuant to any Legal
                  Requirement.

         1.41     "Group Members" shall have the meaning assigned to such term
                  in SECTION 3.19(c).

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CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                        PAGE 5

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         1.42     "Hazardous Substance" shall mean (i) any "hazardous substance"
                  as defined in ss.101(14) of CERCLA, or any regulations
                  promulgated thereunder, or the Occupational Safety and Health
                  Act of 1970, as amended from time to time (29 U.S.C. ss. 651
                  et seq.), or any regulations promulgated thereunder; (ii)
                  petroleum and petroleum by-products, asbestos and
                  asbestos-containing materials polychlorinated biphenyls and
                  pesticides; or (iii) any additional substances or materials
                  that are currently classified or considered to be hazardous or
                  toxic under Environmental Requirements.

         1.43     "Holding Company" shall have the meaning assigned to such term
                  in SECTION 10.16.

         1.44     "HSR Act" shall mean the Hart-Scott-Rodino Antitrust
                  Improvements Act of 1976, or any successor law, and
                  regulations and rules issued pursuant to the Act or any
                  successor law.

         1.45     "Incentive Bonus Plan" shall mean the CorrFlex Graphics, LLC
                  Incentive Bonus Plan as adopted on January 28, 2002, as
                  amended.

         1.46     "Indemnification Threshold" shall have the meaning assigned to
                  such term in SECTION 8.6(a).

         1.47     "Indemnifying Party" shall have the meaning assigned to such
                  term in SECTION 8.6(a).

         1.48     "Indemnitee" shall have the meaning assigned to such term in
                  SECTION 8.6(a).

         1.49     "Intellectual Property" shall have the meaning assigned to
                  such term in SECTION 3.18 hereof.

         1.50     "IRS" shall have the meaning assigned to such term in SECTION
                  3.19(a).

         1.51     "Key Employees" shall have the meaning assigned to such term
                  in SECTION 2.10.

         1.52     "Knowledge of the Company" or similar words shall mean the
                  actual knowledge of the Members and, with respect to Members
                  who also are officers of Company and the Retained
                  Subsidiaries, their actual knowledge after commercially
                  reasonable due inquiry.

         1.53     "Legal Requirement" shall mean any federal, state, local,
                  municipal, foreign, international, multinational, or other
                  administrative order, constitution, law, ordinance, principle
                  of common law, regulation, statute, or treaty.

         1.54     "Liabilities" means any liability whether known or unknown,
                  asserted or unasserted, absolute or contingent, accrued or
                  unaccrued, liquidated or unliquidated or whether due or to
                  become due.

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CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                        PAGE 6

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         1.55     "Liens" shall mean all liens, mortgages, security interests,
                  encumbrances, pledges, charges, adverse claims, options,
                  buy-sell agreements, rights of first refusal agreements, and
                  property settlement or marital dissolution agreements.

         1.56     "Material Adverse Effect" shall mean any effect or change that
                  is or would be reasonably expected to be, materially adverse
                  (i) to the business, assets, condition (financial or
                  otherwise), operating results, operations or business
                  prospects of the Company and the Retained Subsidiaries, taken
                  as a whole, considered within the context of the terms of the
                  Contemplated Transactions including, but not limited to, the
                  limitations in SECTIONS 8.1, 8.2 and 8.4; or (ii) to the
                  ability of any party to consummate timely the transactions
                  contemplated hereby ; provided that the following shall not be
                  considered when determining whether a Material Adverse Effect
                  has occurred: any effect resulting from (i) economic or
                  industry conditions within the United States or generally
                  affecting the industry in which the Company and the Retained
                  Subsidiaries operate, (ii) changes in U.S. or global financial
                  markets or conditions, (iii) any generally applicable change
                  in law, rule or regulation or GAAP or interpretation of any
                  thereof or (iv) the announcement of this Agreement or the
                  Contemplated Transactions.

         1.57     "Material Permits" shall have the meaning assigned to such
                  term in SECTION 3.7.

         1.58     "Member" or "Members" shall have the meaning assigned to such
                  term as in the preamble. With respect to Allied Capital
                  Corporation, the terms "Member" or "Members" as used herein
                  and in any other document relating to the Contemplated
                  Transactions are used solely for drafting simplicity. The
                  parties acknowledge and agree that Allied Capital Corporation
                  is not a member of the Company or the Subsidiaries but in fact
                  is solely the owner and holder or the warrants and purchase
                  options shown on Schedule 2.1.

         1.59     "Membership Interests" shall mean all of the membership or
                  equity ownership interests and the rights to acquire such
                  interests in the Company owned by the Members as set forth in
                  Schedule 2.1. With respect to Allied Capital Corporation, the
                  terms "Membership Interest" or "Membership Interests" as used
                  herein and in any other document relating to the Contemplated
                  Transactions are used solely for drafting simplicity. The
                  parties acknowledge and agree that Allied Capital Corporation
                  does not own or hold any membership interests in the Company
                  or the Subsidiaries but in fact is solely the owner and holder
                  or the warrants and purchase options shown on Schedule 2.1 and
                  which are being purchased pursuant to this Agreement by the
                  Purchaser.

         1.60     "Members' Representative" shall have the meaning assigned to
                  such term in SECTION 2.14.1.

         1.61     "Monthly Financial Statements" shall the meaning assigned to
                  such term in SECTION 2.13.

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CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                        PAGE 7

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         1.62     "Noncompetition Agreement" shall mean the agreements between
                  the Company and certain of the Members in the form of Exhibit
                  1.62.

         1.63     "Organizational Documents" means (a) the articles or
                  certificate of incorporation and the bylaws or code of
                  regulations of a corporation; (b) the partnership agreement
                  and any certificate or statement of partnership of a general
                  partnership; (c) the limited partnership agreement and the
                  certificate of limited partnership of a limited partnership;
                  (d) the articles or certificate of organization of a limited
                  liability company and the operating agreement or limited
                  liability company agreement of a limited liability company;
                  (e) any charter or similar document adopted or filed in
                  connection with the creation, formation or organization of a
                  Person; and (f) any amendment to any of the foregoing.

         1.64     "PBGC" means the Pension Benefit Guaranty Corporation.

         1.65     "Permitted Encumbrance" or "Permitted Lien" shall mean (i) any
                  Lien for taxes or assessments that are not delinquent or are
                  being contested in good faith by appropriate proceedings, (ii)
                  any statutory Lien, including, without limitation, Liens of
                  carriers, warehousemen, mechanics, materialmen and landlords,
                  arising in the ordinary course of business by operation of law
                  with respect to a liability that is not yet due or delinquent
                  or is being contested in good faith by appropriate
                  proceedings, (iii) any Liens set forth on Schedule 1.65, and,
                  in addition with respect to Real Property, (iv) imperfections
                  of title that, individually or in the aggregate, do not
                  materially detract from the value or impair the present use of
                  the Real Property subject thereto; (v) zoning laws and other
                  land use restrictions; (vi) items that are reflected on
                  surveys of the Real Property which have been delivered to the
                  Purchaser by the Company or the Members and (vii) all Liens
                  disclosed in policies of title insurance or title commitments
                  that have been delivered to Purchaser by the Company or the
                  Members.

         1.66     "Person" shall mean any individual, corporation (including any
                  non-profit corporation), general or limited partnership,
                  limited liability company, joint venture, estate, trust,
                  association, organization, labor union, or other entity or
                  Governmental Entity.

         1.67     "Plans" shall have the meaning assigned to such term in
                  SECTION 3.10.

         1.68     "Preliminary Working Capital" shall mean the Working Capital
                  estimated as of the Closing Date by the Company by virtue of a
                  statement to be delivered by the Company at Closing signed by
                  the President and Chief Financial Officer of the Company
                  certifying that such statement is their best estimate of
                  Working Capital as of the Closing.

         1.69     "Proceeding" shall mean any action, arbitration, audit,
                  hearing, litigation, or suit (whether civil, criminal or
                  administrative) commenced, brought, conducted, or heard by or
                  before, or otherwise involving, any Governmental Entity or
                  arbitrator.

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CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                        PAGE 8

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         1.70     "Pro-Forma Statements" shall have the meaning assigned to such
                  term in SECTION 3.5.

         1.71     "Purchase Price" shall have the meaning assigned to such term
                  in SECTION 2.2 hereof.

         1.72     "Purchaser" shall have the meaning assigned to such term in
                  the preamble.

         1.73     "Purchaser Indemnified Persons" shall have the meaning
                  assigned to such term in SECTION 8.2.

         1.74     "Real Property" shall have the meaning assigned to such term
                  in SECTION 3.9(a).

         1.75     "Real Property Leases" shall have the meaning assigned to such
                  term in SECTION 3.10.

         1.76     "Remediation Amount" shall mean the amount, if any, to be
                  added to the Escrow Amount pursuant to SECTION 2.16.

         1.77     The terms "removal," "remedial" and "response" action shall
                  include the types of activities required by CERCLA or RCRA,
                  and shall additionally include, without limitation, any other
                  form of response or cleanup, corrective action, removal,
                  containment, monitoring, treatment or other mitigation or
                  remediation of Hazardous Materials on, in, under or about the
                  Real Property, or offsite, and other work on the Real Property
                  or offsite incidental to such actions.

         1.78     "Representative" means, with respect to a particular Person,
                  any director, officer, employee, agent, consultant, advisor,
                  or other representative of such Person, including legal
                  counsel, accountants, and financial advisors.

         1.79     "Retained Subsidiaries" shall mean CorrFlex Display &
                  Packaging, LLC, a North Carolina limited liability company and
                  CorrFlex D&P, LLC a North Carolina limited liability company.

         1.80     "Subject Property" means all Real Property and all property
                  subject to the Real Property Leases.

         1.81     "Subsidiaries" shall mean the Excluded Subsidiaries and the
                  Retained Subsidiaries.

         1.82     "Subsidiary Membership Interests" shall have the meaning
                  assigned to such term in SECTION 3.4.

         1.83     "Taxes" means all taxes (including, without limitation,
                  income, corporation, capital, sales, withholding, franchise,
                  customs duties, profits, gross receipts, excise, property,
                  stamp, transfer, water, business, and goods and services
                  taxes), imposts, duties, levies, deductions, withholdings,
                  charges, assessments,

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                        PAGE 9

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                  reassessments or fees of any nature (including, without
                  limitation, interest, penalties and additions) that are
                  imposed by any relevant taxing authority; and "Tax" shall mean
                  any one of them.

         1.84     "Third Party Claim" shall have the meaning assigned to such
                  term in SECTION 8.6(a).

         1.85     "Third Party Claim Notice" shall have the meaning assigned to
                  such term in SECTION 8.6(a).

         1.86     "Third Party Intellectual Property" shall have the meaning
                  assigned to such term in SECTION 3.18.

         1.87     "Threshold Working Capital" shall mean $16,000,000.

         1.88     "Transition Services Agreement" shall mean the transition
                  services agreement to be entered into at Closing between the
                  Excluded Subsidiaries and the Company in the form of Exhibit
                  1.88.

         1.89     "Working Capital" shall mean "current assets" reduced by
                  "current liabilities" of the Company and the Retained
                  Subsidiaries consistently calculated as reflected on Schedule
                  1.89.

         1.90     "Working Capital Escrow Account" shall have the meaning
                  assigned such term in SECTION 2.1.

                                   ARTICLE II

                           COVENANTS AND UNDERTAKINGS

         2.1 PURCHASE OF MEMBERSHIP INTERESTS. On the Closing Date, Purchaser
agrees to purchase from the Members, and the Members agree to sell to Purchaser,
all of the Membership Interests as set forth on Schedule 2.1 and certain of the
Members (as identified on Schedule 2.10.2) agree to enter into the
Noncompetition Agreements for a total purchase price of $250,000,000 (i) reduced
by the (A) the Financial Debt Payoff and (B) any bonuses paid to employees
outside of the ordinary course of business including any bonus paid to Robert
Tiede during the period beginning on the date hereof until Closing; and (ii)
increased to the extent Preliminary Working Capital is greater than Threshold
Working Capital and decreased to the extent Preliminary Working Capital is less
than Threshold Working Capital (the "Purchase Price"). The Purchase Price, less
the sum of $12,500,000 plus (x) the greater of $500,000 or any positive
adjustment to the Purchase Price under (ii) of this Section 2.1 (the "Working
Capital Escrow Amount") and (y) any Remediation Amount (collectively, the
"Escrow Amount") shall be paid to the Members and/or the Members' Representative
(as directed in writing by the Members' Representative at or prior to the
Closing) by wire transfer at Closing. The Escrow Amount shall be paid to the
Escrow Agent by wire transfer at Closing. At Closing, the Company shall deliver
to the Purchaser a schedule as of the date of Closing listing all Financial Debt
and the then current balance of such debt, accrued interest through the date of
Closing,

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 10

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prepayment and other costs or expenses payable by the Company in connection with
such Financial Debt, along with letters from all financial institutions or
lenders of such Financial Debt stating the total amount payable by the Company
on the Closing Date in complete satisfaction of all obligations under the
Financial Debt and that any and all Liens on the Assets or the Membership
Interests held by such lender shall be released upon the payment of such stated
amount on the Closing Date (the "Financial Debt Payoff"). Purchaser shall cause
the Company to pay the Financial Debt Payoff at Closing pursuant to such
letters.

         2.2 ADDITIONAL COVENANTS.

         (a) The Company and each of the Retained Subsidiaries, between the date
hereof and Closing, shall collect its receivables in the ordinary course of
business, purchase and sell its inventory in the ordinary course of business,
and pay its accounts payable and retire its other obligations in the ordinary
course of its business, consistent with prior practice, except as otherwise
provided in this Agreement.

         (b) The parties acknowledge and agree that prior to Closing, all
excluded assets on Schedule 2.2(b) shall be paid or distributed to, or for the
benefit of the Members, as provided in SECTION 10.16 or in accordance with
SECTION 2.5.3.

         2.3 PURCHASE PRICE ADJUSTMENT. Within thirty (30) days after the
Closing, the Company shall prepare and deliver to the Members' Representative a
statement of Working Capital as of the Closing Date ("Closing Date Working
Capital Statement") which shall be prepared on a basis consistent with the
method used in calculating Schedule 1.89. In the event the Members'
Representative does not object by written notice to the Purchaser to such
Closing Date Balance Sheet within thirty (30) days from receipt thereof by the
Members' Representative, the Closing Date Working Capital Statement shall be
deemed accepted. If the Members' Representative makes a timely objection to the
Closing Date Working Capital Statement, Purchaser and the Members'
Representative shall have ten (10) calendar days from receipt of such objection
by Purchaser in which to reach agreement as to the Closing Date Working Capital
Statement. If no agreement is reached in said ten (10) calendar day period, at
the end of such period, Purchaser and the Members' Representative shall appoint
Ernst & Young to arbitrate the dispute and calculate the Closing Date Working
Capital Statement. The determination shall be binding on the parties. Purchaser
shall pay one-half of the fees and expenses of such accounting firm and one-half
of such fees shall be a reduction of the Working Capital of the Company at
Closing to be calculated based on such Closing Date Working Capital Statement.
The Purchase Price shall be reduced to the extent the Working Capital as
determined based on the Closing Date Working Capital Statement is less than
Preliminary Working Capital and the Purchase Price shall be increased to the
extent the Working Capital as determined based on the Closing Date Working
Capital Statement is greater than Preliminary Working Capital. Any required
reduction to the Purchase Price made under this SECTION 2.3 shall be paid by the
Escrow Agent to Purchaser pursuant to the Escrow Agreement (such amount to be
paid first from the Working Capital Account and thereafter, to the extent
necessary, from the Primary Account (as such terms are used in the Escrow
Agreement). Any required addition to the Purchase Price shall be paid by
Purchaser to the Members or the Members' Representative by wire transfer to the
same wire transfer instructions delivered to the Purchaser for Closing. Upon
receipt of the Closing Date Working Capital Statement, the parties will instruct
the

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 11

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Escrow Agent to release to the Members' Representative the balance of the funds,
if any, remaining with respect to the Working Capital Escrow Amount held by the
Escrow Agent. All such payments required under this SECTION 2.3 shall be made
within 5 business days after final determination of the Closing Date Working
Capital Statement.

         2.4 CONDUCT OF THE BUSINESS OF THE COMPANY PRIOR TO CLOSING. Except
with the consent in writing of Purchaser or as provided otherwise in this
Agreement, the Company covenants that, between the date of this Agreement and
the Closing Date, the Company and the Retained Subsidiaries will conduct their
business in the ordinary course, which shall include: (a) using commercially
reasonable efforts to preserve the business intact and to preserve the goodwill
of customers and others having material business relations with the Company and
the Retained Subsidiaries; (b) using commercially reasonable efforts to (i)
maintain the Assets in all material respects in the same working order and
condition as such Assets are in as of the date of this Agreement, reasonable
wear and tear, casualty and other events beyond the Company's and the Retained
Subsidiaries control, excepted and subject to the sale of any of such Assets in
the ordinary course of business, and (ii) not liquidate the Assets to cash
except in the ordinary course of business; (c) using commercially reasonably
efforts to retain its employees, subject to the termination of employees in the
ordinary course of business or for cause; (d) keeping in force at no less than
their present limits, if available at commercially reasonable cost, all existing
bonds and policies of insurance insuring the Assets or the business of the
Company and the Retained Subsidiaries; (e) not unreasonably delay the acceptance
of any new equipment or machinery presently on order; (f) not unreasonably delay
commencing or completing any material capital expenditure or capital improvement
project heretofore approved by the Company or the Retained Subsidiaries; (g) not
enter into any material contract, commitment, arrangement or transaction of the
type described in SECTION 3.12 hereof, except for contracts for the sale of
goods or services or the purchase of inventory and supplies, personal property
leases and nondisclosure agreements, in each case in the ordinary course of
business; and (h) using commercially reasonable efforts to cause the Company and
the Retained Subsidiaries not to suffer, permit or incur any of the transactions
or events described in SECTION 3.26 hereof to the extent such events or
transactions are within the control of the Company and the Retained
Subsidiaries.

         2.5 CONSENTS OF THIRD PARTIES; GOVERNMENTAL AUTHORIZATIONS.

                  2.5.1 The Company shall use commercially reasonable efforts to
secure the Consent, in form and substance reasonably satisfactory to Purchaser,
from any party to any Contract as required to be obtained to permit the
consummation of the Contemplated Transactions; provided that the Company shall
not, and the Company shall cause the Members not to, make any agreement or
understanding materially affecting the Assets, the Company, the Retained
Subsidiaries or their business after Closing as a condition for obtaining any
such Consent except with the prior written consent of Purchaser, such consent
not to be unreasonably withheld. During the period prior to the Closing Date,
Purchaser shall act diligently and reasonably to cooperate with the Company and
the Members (to the extent their participation is required) to obtain the
Consents contemplated by this SECTION 2.5.1.

                  2.5.2 During the period prior to the Closing Date, the
Purchaser shall, the Company shall, and the Company shall cause the Members to
(to the extent their participation is

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 12

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required), act diligently and reasonably, and shall cooperate with each other,
in making any required filing or notification and in securing any Consents of
any Governmental Entity required to be obtained by them in order to permit the
consummation of the Contemplated Transactions, or to otherwise satisfy the
conditions set forth in Article V or Article VI; provided that the Company shall
not, and the Company shall cause the Members not to, make any agreement or
understanding materially affecting the Assets, the Company, the Retained
Subsidiaries or their business as a condition to obtaining any such Consents
except with the prior written consent of Purchaser, such consent not to be
unreasonably withheld. The Purchaser shall be responsible for all filing fees
payable to any Governmental Entity in connection with the foregoing.

                  2.5.3 The Excluded Subsidiaries and Purchaser (on behalf of
itself, the Company and the Retained Subsidiaries) shall use commercially
reasonable efforts to secure the Consent to a partial assignment, as applicable,
from any party to a Contract entered into by the Company or a Retained
Subsidiary that covers any excluded assets set forth on Schedule 2.2. Each such
Consent shall be in form and substance reasonably satisfactory to the Excluded
Subsidiaries and Purchaser. If any such Consent is not obtained, or if an
attempted partial assignment thereof would be ineffective, the Excluded
Subsidiaries and Purchaser (on behalf of itself, the Company and the Retained
Subsidiaries) will cooperate with each other in any reasonable arrangement
pursuant to which the Excluded Subsidiaries will continue to obtain the benefits
of use of the applicable excluded asset and perform the contractual obligations
associated with such excluded asset.

         2.6 NEGOTIATION WITH OTHERS. From and after the date of this Agreement
until the earlier of Closing or the Agreement Termination Date, the Company
shall not, and the Company shall cause the Members not to, directly or
indirectly, except as it may relate exclusively to the Excluded Subsidiaries:

                  2.6.1 solicit, initiate discussions or engage in negotiations
with any Person, or take any action to facilitate the efforts of any Person,
other than Purchaser, relating to the possible acquisition of all or a
substantial part of the Assets, the Company, the Retained Subsidiaries or their
business (whether by way of merger, purchase of capital stock, purchase of
assets or otherwise);

                  2.6.2 except for information furnished to Purchaser or to
third parties required for the Company to obtain all necessary consents in
connection with the transactions contemplated by this Agreement, provide
information with respect to the Company to any Person, other than Purchaser and
its advisors or the Company's Members, officers and advisors, relating to the
possible acquisition of all or a substantial part of the Assets, the Company or
its business (whether by way of merger, purchase of equity interests, purchase
of assets or otherwise);

                  2.6.3 enter into any agreement with any Person, other than
Purchaser, providing for the possible acquisition of all of a substantial part
of the Assets, the Company, the Retained Subsidiaries or their business (whether
by way of merger, purchase of capital stock, purchase of assets or otherwise);
or

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 13

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                  2.6.4 make or authorize any statement, recommendation or
solicitation in support of any possible acquisition by any Person, other than
Purchaser, of all or a substantial part of the Assets, the Company, the Retained
Subsidiaries or their business (whether by way of merger, purchase of capital
stock, purchase of assets or otherwise).

Each Member shall be severally liable for its breach of this SECTION 2.6, and no
other Member shall be liable (jointly or otherwise) for the breach hereof by
another Member.

         2.7 INVESTIGATIONS. Following the date of this Agreement, the Company
shall provide Purchaser and its representatives and agents such access to the
books and records of the Company and the Retained Subsidiaries and furnish to
Purchaser such financial and operating data and other information in the
Company's or the Retained Subsidiaries' possession with respect to the
businesses and property of the Company and the Retained Subsidiaries as it may
reasonably request from time to time, and permit Purchaser and its
representatives and agents to make such inspections of the Company's and the
Retained Subsidiaries' real and personal properties as they may reasonably
request. The foregoing access and inspections shall be allowed during normal
business hours and upon reasonable notice, and shall be conducted in such a
manner as not to interfere unreasonably with the normal operations of the
Company or the Retained Subsidiaries. The Company shall promptly arrange for
Purchaser and its representatives and agents to meet with such directors,
officers, employees and agents of the Company and the Retained Subsidiaries as
requested.

         2.8 ENVIRONMENTAL INSPECTION. Following the date of this Agreement, the
Company shall provide to Purchaser access to all records and information in the
Company's and the Retained Subsidiaries' possession concerning all Hazardous
Substances, used, stored, generated, treated or disposed of by the Company or
the Retained Subsidiaries, all environmental or safety studies in the Company's
and the Retained Subsidiaries' possession conducted by or on behalf of the
Company or the Retained Subsidiaries and all reports, correspondence or filings
to Governmental Entities with jurisdiction over Environmental Requirements
concerning the compliance of the Subject Property or the operation of the
Subject Property with Environmental Requirements, all policies and procedures
manuals or guidelines utilized by the Company and the Retained Subsidiaries to
comply with Environmental Requirements in the Company's or the Retained
Subsidiaries' possession, and any other information reasonably requested by
Purchaser in the Company's or the Retained Subsidiaries' possession pertaining
to environmental, health and safety issues (the "Environmental Information").
The Company agrees that Purchaser shall have the right to inspect the
Environmental Information and the Subject Property, including the performance of
a "Phase 1" environmental site assessment and audit, and, at the discretion of
Purchaser, perform subsurface or other invasive investigations, including air
monitoring, at or near the Subject Property all at Purchaser's expense, subject
to (i) compliance by Purchaser with all applicable Legal Requirements (including
without limitation any applicable well permitting requirements), and (ii) as to
property covered by the Real Property Leases or otherwise owned by third
parties, approval of the lessor or other property owner of such work in writing
if required under such leases which the Company or the Retained Subsidiaries
shall diligently assist in obtaining; and (iii) SECTION 10.10. Except to the
extent required by Applicable Law, Purchaser shall not disclose any
Environmental Information or the results of any Phase I or other environmental
investigation to any third party who is not Purchaser's agent, without first

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 14

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obtaining the consent of the Company, which consent shall not be unreasonably
withheld. Purchaser shall indemnify, defend and hold harmless the Company, the
Subsidiaries and the Members from and against all claims, actions, damages,
liens, liabilities, obligations and expenses (including reasonable attorneys'
fees and court costs) arising out of or relating in any manner to Purchaser's
work and investigations under this SECTION 2.8 and SECTION 2.7 above, which
indemnity shall survive Closing or termination of this Agreement. In the event
of Termination of this Agreement without a Closing, Purchaser shall repair any
damage resulting from such activities (including without limitation, proper
closure of all well and borings installed by Purchaser and removal at
Purchaser's sole cost of all waste derived from such investigation).

         2.9 TITLE ABSTRACTS AND SURVEYS. The Company has delivered to
Purchaser, with respect to each parcel of Real Property, (i) the Company's or
the Retained Subsidiaries' most recent title insurance policy and copies of all
documents referenced in the policies, to the extent in the Company's or the
Retained Subsidiaries' possession, and (ii) the Company's or the Retained
Subsidiaries' most recent survey, to the extent in the Company's or the Retained
Subsidiaries' possession.

         2.10 KEY EMPLOYEES. The Company agrees to use commercially reasonable
efforts to assist and cooperate with Purchaser in encouraging the Key Employees
to remain employed by the Company or the Retained Subsidiaries after Closing.
The "Key Employees" are the individuals identified on Schedule 2.10.

         2.11 TAX MATTERS.

                  2.11.1 Tax Returns. The Members' Representative shall prepare,
or cause to be prepared, and deliver to the Purchaser for review the partnership
tax returns for the calendar year 2003, if not prepared prior to the date
hereof. The Members' Representative shall prepare, or cause to be prepared, and
deliver to the Purchaser for review the Company's final partnership tax returns
for the period beginning January 1, 2004 through the Closing Date within 150
days after the Closing. Purchaser's review and approval of such tax returns
shall not be unreasonably withheld. If the parties cannot agree on such returns,
such dispute shall be submitted to any nationally recognized firm of certified
public accountants except for Grant Thornton or PricewaterhouseCoopers for
resolution. Once the returns are agreed to by the parties, the parties shall
require officers of the Company to execute and file the returns. Purchaser shall
provide to the Members' Representative fully executed copies of such tax
return(s) following their filing. For an appropriate period of time after the
Closing Date, Purchaser shall provide or cause to be provided to the Members'
Representative such records and information concerning the Company and the
Retained Subsidiaries as the Members may reasonably require, to prepare,
determine or verify the Members' tax liability in respect of the Company.

                  2.11.2 Allocation Schedule. The parties have agreed upon an
allocation of the purchase price for the Membership Interests and the
Noncompetition Agreements as attached hereto as Schedule 2.11.2 (the "Allocation
Schedule"). The Purchaser shall obtain a third party appraisal of the Assets and
shall provide the Members' Representative a copy of such appraisal. The
Allocation Schedule and the valuation shown on such appraisal shall be binding
on all parties for tax purposes and no party shall file any tax returns
inconsistent with the Allocation

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 15

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Schedule and such appraisal unless required to do so pursuant to a determination
(as defined in Section 1313(a) of the Code) or any similar state or local Tax
provision. If such a determination is made, no party shall bear any liability to
any other party hereunder for taking such an inconsistent position. In addition,
neither party shall have any liability to any other party hereunder if a Tax
authority takes any position inconsistent with the Allocation Schedule or any
adjustment resulting therefrom.

         2.12 EFFORTS TO SATISFY CLOSING CONDITIONS. The Company and the
Purchaser shall use commercially reasonable efforts to cause the conditions in
Articles V and VI to be satisfied in a timely manner and, in any event, by July
15, 2004. As promptly as practicable after the date of this Agreement, the
Company and the Purchaser shall make all filings required by the Legal
Requirements to be made by them to consummate the transactions contemplated
hereby (including all filings under the HSR Act). Between the date of this
Agreement and the Closing Date, the Purchaser shall cooperate with the Company
in obtaining all of the Consents identified in Schedule 3.15. The Purchaser and
the Company shall each request early termination of the applicable waiting
period under the HSR Act.

         2.13 MONTHLY FINANCIAL STATEMENTS. Between the date hereof and the
Closing, Company shall provide to Purchaser, as soon as reasonably available, a
monthly financial statement for each calendar month ending 30 days or more prior
to the Closing Date (the "Monthly Financial Statements").

         2.14 MEMBERS' REPRESENTATIVE

                  2.14.1 Each Member hereby irrevocably appoints and authorizes
L. Kerry Vickar and Bryan L. Smith, acting jointly, to act as its
representatives (the "Members' Representative"). So long as two individuals
serve jointly as the Members' Representative, any action approved by both
individuals shall be the action of the Members' Representative. In the event of
the death, incapacity or refusal to serve (i) of either Messrs. Vickar or Smith,
then the other shall be the sole Members' Representative or (ii) of both Messrs.
Vickar and Smith, then a majority of the Members (based on their fully-diluted
percentage interests, or rights to acquire such interests, in the Company
immediately prior to the Closing) shall appoint a successor Members'
Representative, which appointment shall be subject to the consent (not to be
unreasonably withheld) of Allied Capital Corporation ("Allied"). The Members'
Representative is hereby granted full authority, in its sole discretion, on
behalf of all of the Members to (i) oversee the preparation and completion of
all matters and execution of all documents for Closing and post-Closing as
contemplated herein (including, without limitation, the Escrow Agreement), (ii)
collect the Purchase Price (including funds released from the Escrow from time
to time) and use such funds to (A) settle and pay the selling expenses of the
Company, (B) pay any required tax make-up payment to Allied Capital Corporation,
(C) fund the Incentive Bonus Plan, (D) pay any required taxes or tax
withholding, and, thereafter, (E) distribute the net proceeds to the Members pro
rata in accordance with the Allocation Schedule, provided that the ratable share
of the Purchase Price payable to Allied after giving effect to the adjustments
in clauses (A) through (D) above shall be paid directly to Allied, unless Allied
consents otherwise in writing, (iii) negotiate, defend, pursue, settle and pay
(from the Escrow only) any indemnification claims, and (iv) take any other
action that may be necessary or desirable on behalf of the Members in connection
with

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 16

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this Agreement, provided that such action affects the Members ratably, unless
each Member affected by more than its ratable share consents otherwise in
writing. By each Member's execution of this Agreement it shall irrevocably make,
constitute and appoint the Members Representative as such Member's
attorney-in-fact and authorizes and empowers the Members' Representative to act
with the foregoing authority (provided that the Members' Representative is not
authorized to execute any Noncompetition Agreement or employment agreement on
behalf of any Member or otherwise bind or subject any Member to individual
liability other than claims to be satisfied exclusively from the Escrow).
Nothing set forth herein shall convey or be construed to authorize the Members'
Representative to take any action on behalf of Allied in its capacity as a
creditor of the Company or its affiliates.

                  2.14.2 The Members' Representative shall have no duties or
obligations other than those specifically set forth herein and shall not be
liable under any circumstances for any actions or inactions in such capacity
other than for its or their willful misconduct. Any individual Members'
Representative may resign at any time upon ten days' notice to all Members and
the Purchaser. The Members agree to indemnify and hold the Members'
Representative harmless from any claims, losses, expenses (including reasonable
attorneys' fees) and damages arising out of his or their services hereunder. The
Members' Representative is authorized to pay or reimburse any such claims,
losses, expenses and damages from the Purchase Price, including any funds in the
Escrow that may be released from time to time.

                  2.14.3 Each of the Members and the Members' Representative
acknowledge and agree that Purchaser may rely on the Members' appointment of the
Members' Representative and deal exclusively with the Members' Representative
consistent with such appointment as provided herein and the provisions of this
Agreement and the Escrow Agreement dealing with actions to be taken by the
Members' Representative on behalf of the Members, and the Members agree to
indemnify and save harmless the Purchaser from and against any loss, liability,
cost or expense that it may incur by reason of its relying upon the authority of
the Members' Representative as provided herein.

         2.15 COLLECTION OF RECEIVABLES. After the Closing, the Purchaser shall
cause the Company to use commercially reasonable efforts to collect all accounts
receivable existing as of Closing in the ordinary course of business consistent
with past practice.

         2.16 ENVIRONMENTAL.

                  2.16.1 After the date hereof, Purchaser shall conduct the
limited environmental investigation at the properties owned by the Company in
Winston-Salem, North Carolina and York, Pennsylvania (the "Sites") as set forth
in the letter from ERM to Purchaser dated April 27, 2004 attached hereto as
Schedule 2.16. Immediately following such investigation, Purchaser shall cause
ERM to issue a written report identifying any environmental conditions that
require remediation in order for the Sites to comply with applicable
Environmental Laws and providing an estimate of the cost of such remediation
(collectively, the "ERM Findings"). If the Company does not object by written
notice to the ERM Findings within ten (10) days after the Company's receipt of
the ERM letter, the ERM Findings shall be deemed accepted. In such event, the
Company will use commercially reasonable efforts to complete the required
remediation prior to

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 17

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Closing. If such remediation has not been completed prior to Closing, ERM shall
provide to the parties an estimate of the remaining cost of such remediation,
which shall constitute the initial Remediation Amount. Such amount shall be
added to the Escrow Amount and held by the Escrow Agent to reimburse Purchaser,
pursuant to the Escrow Agreement, for the costs of such post-Closing remediation
incurred in accordance with this Section 2.16.

                  2.16.2 If the Company objects to the ERM Findings (based on
either the recommended scope of remediation or the estimated costs), it shall
provide written notice to Purchaser identifying the objections and if a final
determination of the cost of remediation has not been made prior to Closing, the
costs of remediation included in the ERM Findings shall constitute the initial
Remediation Amount. Such amount shall be added to the Escrow Amount and held by
the Escrow Agent to reimburse Purchaser, pursuant to the Escrow Agreement, for
the costs of such post-Closing remediation incurred in accordance with this
Section 2.16. Following delivery of a written notice of objections, the Company,
at the direction of the Members' Representative, shall retain a national
environmental contracting firm (the "Company Consultant") to conduct an
evaluation of the disputed ERM Findings (which may, in the discretion of the
Members' Representative, involve a limited investigation similar to the one
conducted by ERM). The Company shall provide Purchaser and the Members'
Representative with a copy of the written findings of the Company Consultant,
which shall include an estimate of the costs of any remediation required at the
Sites to comply with applicable Environmental Laws. If the findings of the
Company Consultant differ from the ERM Findings, and the Members' Representative
and Purchaser are unable to resolve such differences within five (5) days after
Purchaser's receipt of such report, the parties shall select a qualified,
independent environmental contracting firm (the "Third Party Consultant") to
evaluate the disputed ERM Findings (which may, in the discretion of the Third
Party Consultant, involve a limited investigation similar to the one conducted
by ERM), and provide an estimate of the costs of any remediation required in
order for the Sites to comply with applicable Environmental Laws. In the event
the Members' Representative and Purchaser are unable to agree upon a Third Party
Consultant within seven (7) days after Purchaser's receipt of the report of the
Company Consultant, then ERM and the Company Consultant shall mutually select
such firm within five (5) days thereafter. Upon completion of its investigation,
the Third Party Consultant shall deliver a written report to the Members'
Representative and Purchaser identifying any environmental conditions that
require remediation at the Sites in order to comply with applicable
Environmental Laws and providing an estimate of the cost of such remediation. If
the Third Party Consultant's estimate is closer to the Company Consultant's
estimate than it is to ERM's estimate, the Remediation Amount shall be deemed to
be the Company Consultant's estimate (and any excess Remediation Amount then
held in escrow shall be distributed by the Escrow Agent in accordance with the
Escrow Agreement). If the Third Party Consultant's estimate is closer to ERM's
Estimate than it is to the Company Consultant's estimate (or the Third Party
Consultant's estimate is equidistant from ERM's Estimate and the Company
Consultant's Estimate), the Remediation Amount shall not change.

                  2.16.3 In performing any post-Closing remediation hereunder,
Purchaser shall employ cost- effective methods and shall limit such work to the
minimum needed to satisfy applicable Environmental Laws. Purchaser may take into
account operational concerns in determining the cost-effectiveness of a remedial
method, provided that under no circumstances shall

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 18

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the Members have any obligation to pay for any work required as a result of (a)
a change in the use of the applicable property from its use as of the Closing,
or (b) any hazardous material released on or about, or migrating to, the
applicable property after the Closing. Upon completion of any post-Closing
remediation work performed in accordance with this Section 2.16, Purchaser shall
submit to the Escrow Agent and the Members' Representative invoices or other
written evidence of the expenses incurred by Purchaser in connection with such
remediation work. Unless the Members' Representative objects in writing within
five (5) days after receipt thereof, he shall execute a joint direction to the
Escrow Agent to distribute to Purchaser an amount equal to its documented
expenses, provided that, in no event shall such distribution exceed the then
remaining Remediation Amount. If the Members' Representative delivers a timely
objection, the dispute shall be resolved in accordance with this Agreement. Upon
completion of the required post-Closing remediation as determined in accordance
with this Section 2.16 and the distribution of any of the Remediation Amount to
Purchaser as required hereunder, the parties will instruct the Escrow Agent to
release to the Members' Representative the balance of the funds, if any,
remaining with respect to the Remediation Amount held by the Escrow Agent.

                  2.16.4 The Remediation Amount shall be held by the Escrow
Agent solely for the purpose of reimbursing to Purchaser the remaining costs of
remediation incurred in accordance with this Section 2.16 after the Closing and
shall not be used for any other purpose. The Remediation Amount shall constitute
Purchaser's sole and exclusive remedy for any remediation work conducted after
the Closing that arises from the ERM Findings.

         2.17 CORRFLEX NAME. On or before the later of the date which is 6
months after the Closing Date or December 31, 2004, CorrFlex Packaging, LLC
shall change its name to delete any reference to the name "CorrFlex" and
discontinue using such name in any form or manner except as required to comply
with any applicable Legal Requirement. At Closing, CorrFlex Packaging, LLC shall
discontinue the use of the "CorrFlex" stylized trademark.

                                  ARTICLE III

                        REPRESENTATIONS AND WARRANTIES OF
                                  THE COMPANY

         The Company represents and warrants to Purchaser, as of the date hereof
and subject to the disclosure in the schedules that corresponds to each such
representation and warranty (whether directly or through the related
definitions), as follows:

         3.1 AUTHORIZATION. This Agreement has been duly executed and delivered
by the Company, the Excluded Subsidiaries and the Members and constitutes the
valid and binding obligation of each such party, enforceable in accordance with
its terms, except that (i) such enforcement may be subject to bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors'
rights generally, (ii) the remedies of specific performance and injunctive
relief are subject to certain equitable defenses and to the discretion of the
court before which any proceedings may be brought and (iii) rights to
indemnification hereunder may be limited under applicable securities laws. The
Company and the Excluded Subsidiaries have full limited

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 19

<PAGE>

liability company power, capacity and authority to execute this Agreement and
all other agreements and documents contemplated hereby.

         3.2 ORGANIZATIONAL, EXISTENCE AND GOOD STANDING OF THE COMPANY AND THE
SUBSIDIARIES. The Company and each of the Subsidiaries is a limited liability
company duly organized, validly existing and in good standing under the laws of
the state of North Carolina with all limited liability company power and
authority to own, lease and operate their properties and to carry on their
business as now being conducted. The Company and each of the Subsidiaries is
duly qualified or licensed as a foreign limited liability company and in good
standing in each jurisdiction in which the character or location of the property
owned, leased or operated by it or the nature of the business conducted by it
makes such qualification necessary, except where the failure to be so duly
qualified or licensed would not have a Material Adverse Effect. Set forth on
Schedule 3.2 is a list of the jurisdictions in which the Company and each of the
Subsidiaries is qualified or licensed to do business as a foreign corporation.
Set forth in Schedule 3.2 is a listing of all names of all predecessor companies
for the past five (5) years of the Company and each of the Retained
Subsidiaries, including the names of any entities from whom the Company or any
of the Retained Subsidiaries previously acquired assets with a purchase price in
excess of $5,000,000 (and in the event of any such acquisitions, a copy of the
related purchase agreement has been delivered to the Purchaser). In addition,
set forth on Schedule 3.2 is a complete list of all the names under which the
Company or any of the Subsidiaries does or has done business since its
formation. True, complete and correct copies of the Articles of Organization of
the Company and each of the Subsidiaries certified by the Secretary of State of
the State of North Carolina as of the date not more than twenty (20) days prior
to the date of execution of this Agreement and of the operating agreement of the
Company and each of the Retained Subsidiaries has been delivered to the
Purchaser. The minute books of the Company and each of the Subsidiaries, as
heretofore delivered to Purchaser, are true copies of the minute books for each
of the Company and the Subsidiaries. The minute books of the Company and each of
the Subsidiaries have been maintained in accordance with applicable Legal
Requirements in all material respects.

         3.3 MEMBERSHIP INTEREST OF THE COMPANY.

         (a) The Membership Interests represents all of the membership interests
or other equity ownership interest in the Company. All of the Membership
Interests have been validly issued and are fully paid and are nonassessable.
Except as set forth on Schedule 3.3, there are no outstanding conversion or
exchange rights, subscriptions, options, warrants or other arrangements or
commitments obligating the Company to issue any additional membership or equity
interests in the Company or other securities or to purchase, redeem or otherwise
acquire any membership or equity interests in the Company or other securities,
or to make any distribution in respect thereof.

         (b) The Members own of record and beneficially and have good title to
all of the Membership Interests, free and clear of any and all Liens other than
standard state and federal securities law private offering legends and
restrictions and the restrictions set forth in the Company's Operating
Agreement.

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CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 20

<PAGE>

         (c) The Company does not, and shall not at Closing or after Closing,
have any obligations (i) to any holders of Class C Membership Interests, Class D
Membership Interests, or Class E Membership Interests or (ii) under the Class C
Agreement, Class D Agreement or Class E Agreement except for an obligation to
the holders of the Class C Membership Interests which is included in Financial
Debt and will be included in the Financial Debt Payoff at Closing.

         3.4 SUBSIDIARIES. Except for the Subsidiaries, the Company and the
Subsidiaries do not presently own, of record or beneficially, or control
directly or indirectly, any capital stock, securities convertible into capital
stock or any other equity interest in any corporation, association or business
entity, nor is the Company or any of the Subsidiaries, directly or indirectly, a
participant in any joint venture, partnership or other non-corporate entity. The
Company owns of record and beneficially and has good title to 100% of the
membership interests or other equity ownership interests ("Subsidiary Membership
Interests") in each of the Retained Subsidiaries free of any Liens other than
standard state and federal securities law private offering legends and
restrictions and the restrictions set forth in the applicable Operating
Agreement. All of the Subsidiary Membership Interests have been validly issued
and are fully paid and nonassessable. There are no outstanding conversion or
exchange rights, subscriptions, options, warrants or other arrangements or
commitments obligating any Subsidiary to issue any additional membership or
equity interests in any Retained Subsidiaries or other securities or to
purchase, redeem or otherwise acquire any membership or equity interests in any
subsidiaries or other securities, or to make any distribution in respect
thereof.

         3.5 FINANCIAL STATEMENTS. Attached as Schedule 3.5 are (i) the audited
balance sheet of the Company and the Subsidiaries as of December 31, 2001,
December 31, 2002 and December 31, 2003 and the related statements of income,
Members' equity and cash flows (the Audited Financial Statements"), (ii) the
Company's and the Retained Subsidiaries (but excluding the Excluded
Subsidiaries) unaudited pro-forma statement of Working Capital and fixed assets
as of December 31, 2003, and the related statement of operating income for the
12-month period then ended, and (iii) the Company and the Retained Subsidiaries
(but excluding the Excluded Subsidiaries) unaudited pro-forma statement of
Working Capital and fixed assets as of March 31, 2004 and the related statement
of operating income for the 3-month period ended then ended (collectively items
(ii) and (iii), the "Pro-Forma Statements") and together with the Audited
Statements, the "Financial Statements"). The Audited Statements present fairly,
in all material respects, the financial position and results of operations of
the Company as of the indicated dates and for the indicated periods in
accordance with GAAP. The Pro-Forma Statements present fairly, in all material
respects, the Working Capital and fixed assets and operating income of the
Company and the Retained Subsidiaries as of the indicated dates and for the
indicated periods, and except as set forth on Schedule 3.5 are in accordance
with GAAP in all material respects.

         3.6 ACCOUNTS AND NOTES RECEIVABLE. Set forth on Schedule 3.6 is an
accurate list of the accounts and notes receivable of the Company and the
Retained Subsidiaries, as of March 31, 2004, and including receivables from and
advances to employees and the Members (other than routine travel advances to be
repaid or formally accounted for within sixty (60) days). Schedule 3.6 sets
forth information showing the aging of all such accounts and notes receivable.
Except to the extent reflected on Schedule 3.6, all such accounts and notes are
legal, valid and

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 21

<PAGE>

binding obligations of the obligors, collectible in the amount shown on Schedule
3.6 net of reserves reflected on the Audited Financial Statements.

         3.7 GOVERNMENTAL PERMITS. Except with respect to environmental permits
or authorizations (which are covered exclusively in SECTION 3.11), the Company
and the Retained Subsidiaries hold all licenses, franchises, permits and
authorizations from Governmental Entities (including Real Property licenses and
permits) which are required by applicable Legal Requirements and material to the
operation of the business of the Company and the Retained Subsidiaries as
currently conducted (the "Material Permits"). An accurate list is set forth on
Schedule 3.7 hereto of all such Material Permits. The Material Permits are
valid, and neither the Company nor any Retained Subsidiary has received any
written notice that any Governmental Entity intends to cancel, terminate or not
renew any such Material Permit. Except as disclosed on Schedule 3.7, the Company
and the Retained Subsidiaries have conducted and are conducting their business
in compliance in all materials respects with the requirements, standards,
criteria and conditions set forth in the Material Permits and are not in
violation in any material respect of any of the foregoing. Except as
specifically provided on Schedule 3.7, the Contemplated Transactions will not
result in a default under or a breach or violation of any such Material Permits.

         3.8 TAX MATTERS.

         (a) The Company and the Subsidiaries have filed all income tax returns
required to be filed by the Company and the Subsidiaries and all returns,
reports and forms of other Taxes required to be filed by the Company and the
Subsidiaries. The Company and the Subsidiaries have paid or provided for all
Taxes shown to be due on such returns and all such returns are accurate and
correct in all material respects. Except as set forth on Schedule 3.8, (i) no
action or proceeding for the assessment or collection of any Taxes is pending
against the Company and no notice of any claim for Taxes, whether pending or
threatened, has been received; (ii) no deficiency, assessment or other formal
claim for any Taxes has been asserted or made against the Company or any
Retained Subsidiary that has not been fully paid or finally settled; and (iii)
no issue has been formally raised by any taxing authority in connection with an
audit or examination of any return of Taxes; (iv) no federal, state or foreign
income tax returns of the Company or the Subsidiaries have been audited by any
Governmental Entity, and (v) there are no outstanding agreements or waivers
extending the applicable statutory periods of limitation for such Taxes for any
period. All Taxes that the Company and the Subsidiaries have been required to
collect or withhold have been duly withheld or collected and, to the extent
required, have been paid to the proper taxing authority. No Taxes will be
assessed on or after the Closing Date against the Company or any Subsidiary for
any tax period ending on or prior to the Closing Date in excess of the amounts
reserved therefor.

         (b) Neither the Company nor any of the Subsidiaries is a party to any
Tax allocation or sharing agreement (other than the tax provisions of the
Company's operating agreement.)

         (c) None of the assets of the Company or any of the Subsidiaries
constitute tax-exempt bond financed property or tax-exempt use property, within
the meaning of Section 168 of the Code. Neither the Company nor any of the
Subsidiaries is a party to any "safe harbor lease"

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CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 22

<PAGE>

that is subject to the provisions of Section 168(f)(8) of the Code as in effect
prior to the Tax Reform Act of 1986, or to any "long-term contract" within the
meaning of Section 460 of the Code.

         3.9 ASSETS AND PROPERTIES.

         (a) Real Property. Neither the Company nor any of the Retained
Subsidiaries owns or holds any ownership interest in any real property other
than as set forth in Schedule 3.9(a) (the "Real Property"). Except as set forth
on such schedule, the Company or the Retained Subsidiaries have good and
marketable title to all Real Property and none of the Real Property is subject
to any Lien, except for Permitted Liens and Liens securing any of the Financial
Debt which will be released upon payment of the Financial Debt at or prior to
Closing as provided herein. All facilities on the Real Property are supplied
with utilities and other similar services necessary for the current operation of
such facilities.

         (b) Personal Property. Except as set forth on Schedule 3.9(b) and
except for inventory, supplies and other personal property disposed of or
consumed, and accounts receivable collected or written off, and cash utilized,
all in the ordinary course of business consistent with past practice, the
Company and the Retained Subsidiaries own all of their inventory, equipment and
other tangible personal property reflected on the latest balance sheet included
in the Audited Financial Statements, not disposed of in the ordinary course of
business consistent with past business practice since such date or listed on
Schedule 3.9(b), free and clear of any Liens, except for Permitted Liens and
Liens securing any of the Financial Debt which will be released upon payment of
the Financial Debt at or prior to Closing as provided herein.

         (c) Condition of Properties. Except as set forth on Schedule 3.9(c),
the buildings, structures and material improvements located on the Real Property
("Improvements"), the tangible personal property owned or leased by the Company
and the Retained Subsidiaries and used in the operation of the business as
currently conducted and, to the Knowledge of the Company, the premises that are
the subject of the Real Property Leases (as defined in SECTION 3.10), are in
good operating condition and repair, ordinary wear and tear excepted; and the
Company does not have any Knowledge of any condition not disclosed herein of any
such Improvements or premises that would materially affect the use or operation
of such Improvements or premises in the ordinary course of its existing business
or materially affect the fair market value of the Real Property.

         (d) Compliance. The current ownership, operation, use and occupancy of
the Real Property and the Improvements, the current use and occupancy of the
leasehold estates that are the subject of the Real Property Leases does not
violate any applicable zoning, building, health, flood control or fire law,
ordinance, order or regulation or any restrictive covenant. Except with respect
to Environmental Requirements (which are covered exclusively in SECTION 3.11),
there are no current material violations of any applicable Legal Requirement
affecting any portion of the Real Property or such leasehold estates, and no
written notice of any such violation has been issued by any Governmental Entity,
with respect to the Real Property, or to the Knowledge of the Company, with
respect to such leasehold estates. The assets owned, leased or licensed by the
Company and the Retained Subsidiaries are adequate for Purchaser to continue to
operate the

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 23

<PAGE>

business of such entities immediately after the Closing as currently conducted
and consistent with past practices.

         3.10 REAL PROPERTY LEASES; OPTIONS. Schedule 3.10 sets forth a list of
(i) all leases and subleases under which the Company or any of the Retained
Subsidiaries is lessor or lessee or sublessor or sublessee of any real property,
together with all amendments, supplements, nondisturbance agreements, brokerage
and commission agreements and other agreements pertaining thereto and binding
upon the Company or any of the Retained Subsidiaries ("Real Property Leases");
(ii) all material options held by the Company or any of the Retained
Subsidiaries or contractual obligations on the part of the Company or any of the
Retained Subsidiaries to purchase or acquire any interest in real property; and
(iii) all options granted by the Company or any of the Retained Subsidiaries or
contractual obligations on the part of the Company or any of the Retained
Subsidiaries to sell or dispose of any interest in real property. Copies of all
Real Property Leases and such options and contractual obligations have been
delivered to Purchaser. Neither the Company nor any of the Retained Subsidiaries
has assigned any Real Property Leases or any such options or obligations, except
for purposes of securing any of the Financial Debt which will be released upon
payment of the Financial Debt as provided herein. To the Knowledge of the
Company, there are no disputes, oral agreements or forbearance programs in
effect as to any Real Property Lease; all facilities leased under the Real
Property Leases (including alterations constructed by the Company or any of the
Retained Subsidiaries) have received all approvals of Governmental Entities
(including licenses and permits) required in connection with the operation
thereof; and all facilities leased under the Real Property Leases are supplied
with utilities and other similar services necessary for the operation of said
facilities. There are no Liens on the interest of the Company and the Retained
Subsidiaries in the Real Property Leases, except for Permitted Liens and except
for Liens securing any of the Financial Debt which will be released upon payment
of the Financial Debt at or prior to Closing as provided herein. The Real
Property Leases and options and contractual obligations listed on Schedule 3.10
are in full force and effect and constitute binding obligations of the Company,
the Retained Subsidiaries and, to the Knowledge of the Company, the other
parties thereto, subject to bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditor's rights generally, and (x) there are no
defaults thereunder by the Company, the Retained Subsidiaries and, to the
Knowledge of the Company, the other parties thereto and (y) no event has
occurred that with notice, lapse of time or both would constitute a default by
the Company or any of the Retained Subsidiaries or, to the Knowledge of the
Company by any other party thereto.

         3.11 ENVIRONMENTAL LAWS AND REGULATIONS. Except as disclosed in
Schedule 3.11, (i) during the occupancy and operation of the Subject Property by
the Company or any of the Subsidiaries and, to the Knowledge of the Company,
prior to its occupancy and operation, the operations of the Subject Property,
and any use, storage, treatment, disposal or transportation of Hazardous
Substances that has occurred in, on, to, from or under the Subject Property
prior to the date of this Agreement have been in compliance in all material
respects with all applicable Environmental Requirements; (ii) during the
occupancy and operation of the Subject Property by the Company or the
Subsidiaries and, to the Knowledge of the Company, prior to its occupancy or
operation, no material release, leak, discharge, spill, disposal or emission of
Hazardous Substances has occurred in, on, to, from or under the Subject Property
in a quantity or manner

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 24

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that currently violates Environmental Requirements; (iii) there is no pending
Proceeding or, to the Knowledge of the Company, threatened Proceeding or
investigation concerning the Subject Property or the Company or any of the
Subsidiaries involving Hazardous Substances or Environmental Requirements; (iv)
there are no asbestos-containing materials or above-ground or underground
storage tank systems located at the Subject Property, except in compliance in
all material respects with applicable Environmental Requirements and all such
storage tank systems are disclosed on Schedule 3.11; (v) neither the Company nor
any of the Retained Subsidiaries has ever owned, operated, or leased any real
property other than the Subject Property; and (vi) the Company's and Retained
Subsidiaries' transportation to or disposal at any off-site location of any
Hazardous Substances from property now or formerly owned, operated or leased by
the Company or any of the Retained Subsidiaries at the time of the Company's or
any of the Retained Subsidiaries' ownership, operation or lease thereof was
conducted in material compliance with applicable Environmental Requirements; and
(vii) to the Knowledge of the Company, there are no facts, conditions or
circumstances that could reasonably be expected to form the basis for a material
claim against the Company or any of the Retained Subsidiaries or the Purchaser
relating to the Company's or any of the Subsidiaries' compliance or failure to
comply with any Environmental Requirements. This Section 3.11 is the sole and
exclusive warranty of the Company with regard to Environmental Requirements.

         3.12 CONTRACTS.

         (a) Set forth on Schedule 3.12(a) is a list of all Contracts as of the
date hereof, (except Real Property Leases, which are listed on Schedule 3.10),
(whether oral (summaries only) or written) to which the Company or any of the
Retained Subsidiaries is a party and that relate to (i) the sale, lease or other
disposition by the Company or any of the Retained Subsidiaries of all or any
substantial part of its business or assets or the purchase by the Company or any
of the Retained Subsidiaries of a substantial amount of assets with a purchase
price in excess of $50,000 (in each event other than in the ordinary course of
business), (ii) the employment of any person other than personnel employed at
the pleasure of the Company or any of the Retained Subsidiaries; (iii)
collective bargaining with, or any representation of any employees by, any labor
union or association; (iv) the acquisition of services, supplies, equipment or
other personal property in each case in which payments are due after the date of
this Agreement involving more than $50,000 and that is not terminable by the
Company or the Retained Subsidiaries upon not more than thirty (30) days' notice
without obligation on the part of the Company or any of the Retained
Subsidiaries; (v) noncompetition or nondisclosure (other than, with respect to
nondisclosure, Contracts that are not primarily intended to facilitate the
exchange of confidential information but also include confidentiality or
nondisclosure provisions); (vi) the purchase or sale of real property or any
interest therein; (vii) distribution, agency or construction; (viii) (A) lease
of personal property as lessor or sublessor or (B) lease of personal property as
lessee or sublessee in each case in which payments are due after the date of
this Agreement involving more than $50,000 and that is not terminable by the
Company or the Retained Subsidiaries upon not more than thirty (30) days' notice
without obligation on the part of the Company or any of the Retained
Subsidiaries; (ix) lending or advancing of funds other than the extension of
credit to trade purchasers in the ordinary course of the Company's or any of the
Retained Subsidiaries' business consistent with past business practice; (x)
borrowing of funds or receipt of credit other than by the Company or any of the
Retained Subsidiaries in the ordinary

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 25

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course of business consistent with past business practice and except for trade
payables in amounts and on terms consistent with past business practice; (xi)
incurring of any obligation or liability except for transactions engaged in by
the Company or any of the Retained Subsidiaries in the ordinary course of
business consistent with past business practice; (xii) the sale of personal
property (other than sales of inventory in the ordinary course of business
consistent with past business practice) or services in each case in which
payments are due after the date of this Agreement that exceed $50,000 and (xiii)
any matter or transaction not in the ordinary course of the business of the
Company and of the Retained Subsidiaries and, in each case, imposes a material
obligation on the Company or provides a material benefit to the Company. The
Company and the Retained Subsidiaries have delivered to Purchaser copies of all
of the written Contracts listed on Schedule 3.12(a).

         (b) Except as set forth on Schedule 3.12(b), each Contract is in full
force and effect on the date hereof, neither the Company nor any of the Retained
Subsidiaries is in default under any Contract, neither the Company nor any of
the Retained Subsidiaries has given or received notice of any default under any
Contract, and to the Knowledge of the Company, no other party to any Contract is
in default thereunder.

         3.13 UNDISCLOSED LIABILITIES. Except as disclosed on Schedule 3.13 and
excluding liabilities that fall within the subject matter covered by the other
sections of this Article III, neither the Company nor any of the Retained
Subsidiaries has any Liability in an amount in excess of $50,000 except for (a)
Liabilities set forth on the face of the most recent Audited Financial Statement
or Pro Forma Statement; (b) Liabilities which have arisen after the most recent
Audited Financial Statement in the ordinary course of business, none of which
relates to, is in the nature of, or was caused by any breach of contract, breach
of warranty, tort, infringement, or violation of any applicable Legal
Requirement (except to the extent reserved for in the most recent Audited
Financial Statement); or (c) Liabilities that arise from or relate to the
performance of obligations under any Contract, but not the breach thereof.

         3.14 NO VIOLATIONS. Except with respect to Environmental Requirements
which are covered exclusively in Section 3.11, the execution, delivery and
performance of this Agreement and the other agreements and documents
contemplated hereby by the Company, any of the Retained Subsidiaries and the
Members and the consummation of the transactions contemplated hereby by such
parties will not (i) violate any provision of any Organization Document, (ii)
violate in any material respect any statute, rule, regulation, order or decree
of any public body or authority by which the Company, any of the Retained
Subsidiaries or the Members or its or their respective properties or assets are
bound, or (iii) result in a violation or breach of, or constitute a default
under, or result in the creation of any encumbrance upon, or create any rights
of termination, cancellation or acceleration in any person with respect to any
Contract or any Material Permit, except as set forth on Schedule 3.7 or Schedule
3.15.

         3.15 CONSENTS. Except as set forth on Schedule 3.15, no consent,
approval, notice to, registration or filing with, authorization or order, of any
Governmental Entity or under any Contract or Material Permit is required as a
result of or in connection with the execution or delivery, by the Company, the
Retained Subsidiaries or the Members, of this Agreement and the other agreements
and documents to be executed by the Company, the Retained Subsidiaries and

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 26

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the Members in connection herewith or the consummation by the Company, the
Retained Subsidiaries and the Members of the transactions contemplated hereby.

         3.16 LITIGATION AND RELATED MATTERS. Except with respect to
Environmental Requirements which are covered exclusively in Section 3.11, set
forth on Schedule 3.16 is a list of all Proceedings pending against the Company
or any of the Retained Subsidiaries or, to the Knowledge of the Company,
Proceedings threatened or investigations or grievances pending against the
Company or any of the Retained Subsidiaries, the business or any property or
rights of the Company or any of the Retained Subsidiaries, at law or in equity,
before or by any arbitration board or panel or Governmental Entity. None of the
Proceedings, investigations or grievances listed on Schedule 3.16 either (i) has
had, or, if adversely determined, would be likely to have, a Material Adverse
Effect or (ii) has adversely affected in any material respect or, if adversely
determined, would be likely to adversely affect in any material respect, the
right or ability of the Company and the Retained Subsidiaries to carry on its
business substantially as now conducted. Neither the Company nor any of the
Retained Subsidiaries is subject to any continuing court or Governmental Entity
order, writ, injunction or decree applicable specifically to its business,
operations or assets or their employees, nor in default with respect to any
order, writ, injunction or decree of any court or Governmental Entity with
respect to their assets, business or operations.

         3.17 COMPLIANCE WITH LAWS. Except with respect to Environmental
Requirements (which are covered exclusively in SECTION 3.11), the Company and
the Retained Subsidiaries are in compliance in all material respects with all
applicable Legal Requirements.

         3.18 INTELLECTUAL PROPERTY RIGHTS. Schedule 3.18 lists the registered
domestic and foreign trade names, trademarks, service marks, trademark
applications, service mark applications, patents, patent applications, patent
licenses, copyrights and copyright applications owned by the Company and the
Retained Subsidiaries (collectively, the "Intellectual Property"). Unless
otherwise indicated on Schedule 3.18, the Company and the Retained Subsidiaries
have the right to use and license the Intellectual Property, and the
consummation of the transactions contemplated hereby will not result in the loss
or material impairment of any rights of the Company and the Retained
Subsidiaries in the Intellectual Property. Each item constituting part of the
Intellectual Property has been, to the extent indicated on Schedule 3.18,
registered with, filed in or issued by, as the case may be, the United States
Patent and Trademark Office or such other government entity, domestic or
foreign, as is indicated on Schedule 3.18; all such registrations, filings and
issuances remain in full force and effect; and all fees and other charges with
respect thereto are current. Except as stated on Schedule 3.18, there are no
pending proceedings or adverse claims made or, to the Knowledge of the Company,
threatened against the Company or any of the Retained Subsidiaries with respect
to the Intellectual Property; there has been no litigation commenced or
threatened in writing within the past five (5) years with respect to the
Intellectual Property or the rights of the Company and the Retained Subsidiaries
therein; and, to the Knowledge of the Company, (i) the Intellectual Property or
the use thereof by the Company and the Retained Subsidiaries does not conflict
with any trade names, trademarks, service marks, trademark or service mark
registrations or applications, patents, patent applications, patent licenses or
copyright registrations or applications of others ("Third Party Intellectual
Property"), and (ii) such Third Party Intellectual Property or its use by others
or any

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other conduct of a third party does not conflict with or infringe upon the
Intellectual Property or its use by the Company or any of the Retained
Subsidiaries. Schedule 3.18 separately lists all of the computer software, other
than off-the-shelf software or other software generally available from retail
vendors, that the Company uses in, and is material to, its business and
identifies each contract pursuant to which the Company has licensed such
software from any other Person.

         3.19 EMPLOYEE BENEFIT PLANS.

         (a) Each employee benefit, stock or compensation plan, including
without limitation employee benefit plans within the meaning of Section 3(3) of
ERISA, maintained or contributed to by the Company or any of its Group Members
(collectively, the "Plans") is listed on Schedule 3.19, is in substantial
compliance with applicable law and has been administered and operated in all
material respects in accordance with its terms. Each Plan that is intended to be
"qualified" within the meaning of Section 401(a) of the Code has received a
favorable determination letter from the Internal Revenue Service (the "IRS") and
no event has occurred and no condition exists that could be expected to result
in the revocation of any such determination. For purposes of this Agreement, the
term "Plan" shall include each bonus, incentive or deferred compensation,
severance, termination, retention, change of control, stock option, stock
appreciation, stock purchase, SERP, phantom stock or equity-based, performance
or other employee or retiree benefit or compensation plan, welfare benefit
program, arrangement, agreement, policy or understanding, whether written or
unwritten.

         (b) No Plan is subject to Title IV of ERISA, and neither the Company
nor any Group Member has made any contributions to or participated in any
"multiple employer plan" (within the meaning of the Code or ERISA) or
"multi-employer plan" (as defined in Section 4001(a)(3) of ERISA). Full payment
has been made of all amounts that the Company or any Group Member was required
under the terms of the Plans to have paid as contributions to such Plans on or
prior to the date hereof (excluding any amounts not yet due) and all amounts
properly accrued to date as liabilities of the Company and the Group Members
that have not been paid have been properly recorded on the Financial Statements,
and no Plan that is subject to Part 3 of Subtitle B of Title 1 of ERISA has
incurred any "accumulated funding deficiency" (within the meaning of Section 302
of ERISA or Section 412 of the Code), whether or not waived. Neither the
Company, any Group Member nor, to the Knowledge of the Company, any other
"disqualified person" or "party in interest" (within the meaning of Section
4975(e)(2) of the Code and Section 3(14) of ERISA, respectively) has engaged in
any transactions in connection with any Plan that could be expected to result in
the imposition of a material penalty pursuant to Section 502(i) of ERISA,
damages pursuant to Section 409 of ERISA or a tax pursuant to Section 4975(a) of
the Code. No material claim, action, proceeding, or litigation has been made,
commenced or, to the Knowledge of the Company, threatened with respect to any
Plan (other than for benefits payable in the ordinary course and PBGC insurance
premiums). No Plan or related trust owns any securities in violation of Section
407 of ERISA. Neither the Company nor any Group Member has incurred any
liability or taken any action, or has any knowledge of any action or event, that
could cause it to incur any liability (i) under Section 412 of the Code or Title
IV of ERISA with respect to any "single employer plan" (within the meaning of
Section 4001(a)(15) of ERISA), (ii) on account of a partial or complete
withdrawal (within the meaning of Section 4205 and 4203 of ERISA, respectively)
with respect to any "multi-employer plan" (within the meaning of

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PURCHASE AGREEMENT                                                       PAGE 28

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Section 3(37) of ERISA), (iii) on account of unpaid contributions to any such
multi-employer plan, or (iv) to provide health benefits or other non-pension
benefits to retired or former employees, except as specifically required by
Section 4980B(f) of the Code.

         (c) Except as set forth on Schedule 3.19, neither the execution and
delivery of this Agreement by the Company or the Retained Subsidiaries nor the
consummation of the transactions contemplated hereby will (i) entitle any
current or former employee of the Company or any Subsidiary to severance pay,
unemployment compensation or any similar payment, (ii) accelerate the time of
payment or vesting, or increase the amount of, any compensation due to any such
employee or former employee, or (iii) directly or indirectly result in any
payment made or to be made to or on behalf of any person to constitute a
"parachute payment" (within the meaning of Section 280G of the Code). For
purposes of this Agreement, "Group Member" shall mean each corporation which is
a member of a controlled group of corporations (as defined in Code Section
414(b)), a group of trades or businesses (whether or not incorporated) which are
under common control (as defined in Code Section 414(c)) or an affiliated
service group (as defined in Code Section 414(m)) which includes the Company,
and any other entity required to be aggregated with the Company pursuant to
regulations prescribed under Code Section 414(o).

         (d) With respect to each Plan, the Company has delivered to Purchaser a
true and complete copy of such plan document, including any amendments and a
copy of any related trust agreement or insurance contract, all determination
letters issued by the Internal Revenue Service for such Plan, the most recent
summary plan description, together with any summaries of material modifications,
the most recently filed Form 5500, as applicable, and other material related
documents.

         3.20 EMPLOYEES; EMPLOYEE RELATIONS.

         (a) Schedule 3.20 sets forth as of the dates set forth on such schedule
(i) the name and current annual salary (or rate of pay) and other compensation
(including, without limitation, normal bonus, profit-sharing and other
compensation) now payable by the Company or any of the Retained Subsidiaries to
each employee (which for all purposes shall include employees leased by the
Company or any Retained Subsidiaries from a third party) and all incentive or
bonus payments paid to all such employees by the Company or the Retained
Subsidiaries for each of 2002 and 2003 along with any such bonus or incentive
payments accrued in 2004 to the date hereof, (ii) any increase to become
effective after the date of this Agreement in the total compensation or rate of
total compensation payable by the Company or any of the Retained Subsidiaries to
each such person, (iii) any increase to become payable after the date of this
Agreement by the Company or any of the Retained Subsidiaries to employees other
than those specified in clause (i) of this SECTION 3.20(a), (iv) all presently
outstanding loans and advances (other than routine travel advances to be repaid
or formally accounted for within sixty (60) days) made by the Company or any of
the Retained Subsidiaries to, or made to the Company or any of the Retained
Subsidiaries by, any director, officer or employee, (v) all accrued but unpaid
vacation pay owing to any officer or employee that is not disclosed on the
Financial Statements, and (vi) any relative of any of the Members (whether by
blood, marriage or adoption) employed by the Company or any of the Retained
Subsidiaries and the position and salary and other compensation payable thereto.

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         (b) Except as disclosed on Schedule 3.20, neither the Company nor any
of the Retained Subsidiaries is a party to, or bound by, the terms of any
collective bargaining agreement, and neither the Company nor any of the Retained
Subsidiaries has experienced any material labor difficulties during the last
five (5) years and, during the last five (5) years, none of the employees of the
Company or any of the Retained Subsidiaries has been represented by any labor
union or other employee collective bargaining organization, was a party to, or
bound by, any labor or other collective bargaining agreement or has been subject
to or involved in or, to the Knowledge of the Company, threatened with, any
union elections, petitions or other organizational or recruiting activities.
Except as set forth on Schedule 3.20, there are no labor disputes existing, or
to the Knowledge of the Company, threatened involving, by way of example,
strikes, work stoppages, slowdowns, picketing, or any other interference with
work or production, or any other concerted action by employees. No charges or
proceedings before the National Labor Relations Board, or similar agency, exist,
or to the Knowledge of the Company, are threatened.

         (c) The Company believes that the relationships enjoyed by the Company
and the Retained Subsidiaries with their employees in general are good and the
Company does not have any Knowledge that any Key Employee does not plan, at this
time, to continue in the employ thereof following the Closing on a basis similar
to that existing on the date of this Agreement. Except as disclosed on Schedule
3.20, neither the Company nor any of the Retained Subsidiaries is a party to any
employment contract with any individual or employee, either express or implied.
No legal proceedings, charges, complaints or similar actions are pending or, to
the Knowledge of the Company, are threatened under any federal, state or local
laws affecting the employment relationship including, but not limited to: (i)
anti-discrimination statutes such as Title VII of the Civil Rights Act of 1964,
as amended (or similar state or local laws prohibiting discrimination because of
race, sex, religion, national origin, age and the like); (ii) the Fair Labor
Standards Act or other federal, state or local laws regulating hours of work,
wages, overtime and other working conditions; (iii) requirements imposed by
federal, state or local governmental contracts; (iv) state laws with respect to
tortious employment conduct, such as slander, harassment, false light, invasion
of privacy, negligent hiring or retention, intentional infliction of emotional
distress, assault and battery, or loss of consortium; or (v) the Occupational
Safety and Health Act, as amended, as well as any similar state laws, or other
regulations respecting safety in the workplace; and to the Knowledge of the
Company, no proceedings, charges, or complaints are threatened under any such
laws or regulations and no facts or circumstances exist that would give rise to
any such proceedings, charges, complaints, or claims, whether valid or not.
Neither the Company nor any of the Retained Subsidiaries is subject to any
settlement or consent decree with any present or former employee, employee
representative or any Governmental Entity relating to claims of discrimination
or other claims in respect to employment practices and policies; and no
government or Governmental Entity has issued a judgment, order, decree or
finding with respect to the labor and employment practices (including practices
relating to discrimination) of the Company or any of the Retained Subsidiaries.
The Company has received properly executed releases from each employee
terminated as a part of workforce reduction program in January of 2004 in the
form of release provided to the Purchaser.

         (d) The Company and the Retained Subsidiaries are in compliance in all
material respects with the provisions of the Americans with Disabilities Act.

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PURCHASE AGREEMENT                                                       PAGE 30

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         3.21 INSURANCE. Schedule 3.21 contains an accurate list of the policies
and contracts (including insurer, named insured, and type of coverage) for fire,
casualty, liability and other forms of insurance maintained by, or for the
benefit of, the Company or any of the Retained Subsidiaries. All such policies
are in full force and effect and shall remain in full force and effect through
the Closing Date. Neither the Company, any of the Retained Subsidiaries nor the
Members has received any notice of cancellation or non-renewal or of significant
premium increases with respect to any such policy. Except as disclosed on
Schedule 3.21, no pending claims made by or on behalf of the Company or any of
the Retained Subsidiaries under such policies have been denied or are being
defended against third parties under a reservation of rights by an insurer
thereof. All premiums due prior to the date hereof for periods prior to the date
hereof with respect to such policies have been timely paid.

         3.22 INTERESTS IN CUSTOMERS, SUPPLIERS, ETC. Except as set forth on
Schedule 3.22, no Member, officer, director or affiliate of the Company
possesses, directly or indirectly, any financial interest in, or is a director,
officer, employee or affiliate of, any corporation, firm, association or
business organization that is a client, supplier, customer, lessor, lessee or
competitor of the Company or any of the Retained Subsidiaries. Ownership of
securities of a corporation whose securities are registered under the Securities
Exchange Act of 1934 not in excess of five percent (5%) of any class of such
securities shall not be deemed to be a financial interest for purposes of this
SECTION 3.22.

         3.23 BUSINESS RELATIONS. Schedule 3.23 contains an accurate list of (a)
all customers representing one percent (1%) or more of the combined sales of the
Company and the Retained Subsidiaries during the twelve (12) months ended
December 31, 2003 and (b) all suppliers representing one percent (1%) or more of
the combined operating expenses of the Company and the Retained Subsidiaries for
the twelve (12) months ended December 31, 2003. Except as set forth on Schedule
3.23, to the Knowledge of the Company as of the date hereof, no customer or
supplier of the Company or any of the Subsidiaries has indicated that it plans
to terminate its commercial relationship with the Company or any of its
Subsidiaries, which termination would have a Material Adverse Effect.

         3.24 OFFICERS AND MANAGERS. Set forth on Schedule 3.24 is a list of the
current officers and managers of the Company and each of the Retained
Subsidiaries.

         3.25 BANK ACCOUNTS AND POWERS OF ATTORNEY. Schedule 3.25 sets forth
each bank, savings institution and other financial institution with which the
Company or any of the Retained Subsidiaries has an account or safe deposit box
and the names of all persons authorized to draw thereon or to have access
thereto. Each person holding a power of attorney or similar grant of authority
on behalf of the Company or any of the Retained Subsidiaries is identified on
Schedule 3.25. Except as disclosed on such Schedule, neither the Company nor any
of the Retained Subsidiaries has given any revocable or irrevocable powers of
attorney to any person, firm, corporation or organization relating to its
business for any purpose whatsoever.

         3.26 ABSENCE OF CERTAIN CHANGES OR EVENTS. Except as set forth on
Schedule 3.26 or as otherwise contemplated by this Agreement, since December 31,
2003, there has not been (a) any material damage, destruction or casualty loss
to the physical properties of the Company

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 31

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or any of the Retained Subsidiaries or to the physical properties of any third
parties that are located on the Company's or any of the Retained Subsidiaries'
premises or within the Company's or any of the Subsidiaries' control (whether or
not covered by insurance), (b) a Material Adverse Effect, (c) any entry into any
Contract material to the Company or any of the Retained Subsidiaries, except
transactions, commitments or agreements in the ordinary course of business
consistent with past practice, (d) any declaration, setting aside or payment of
any distribution in cash, stock or property with respect to the membership or
other equity interest of the Company, any repurchase, redemption or other
acquisition by the Company of any membership interest, equity interest or other
securities, or any agreement, arrangement or commitment by the Company to do so
except as allowed under this Agreement, (e) any increase that is material in the
compensation payable or to become payable by the Company or any of the Retained
Subsidiaries to their managers, officers, employees or agents or any increase in
the rate or terms of any bonus, pension or other employee benefit plan, payment
or arrangement made to, for or with any such managers, officers, employees or
agents, (f) any sale, transfer or other disposition of, or the creation of any
Lien upon, any material part of the Assets, except for sales of inventory and
use of supplies and collections of accounts receivables in the ordinary course
of business consistent with past practice, or any cancellation or forgiveness of
any material debts or claims by the Company or any of the Retained Subsidiaries,
(g) any material change in the relations of the Company or any of the Retained
Subsidiaries with or material loss of its customers or suppliers, or any
material loss of business or material increase in the cost of inventory items or
material change in the terms offered to customers, or (h) any capital
expenditure (including any capital leases) or commitment therefor by the Company
or any of the Retained Subsidiaries except in the ordinary course of business
consistent with past practice.

         3.27 VALIDITY OF AGREEMENT. This Agreement has been duly executed and
delivered and is the legal, valid and binding obligations of the Company, the
Retained Subsidiaries and each Member in accordance with its terms, except as
enforceability may be limited by applicable equitable principles, or by
bankruptcy, insolvency, reorganization, moratorium, or similar laws from time to
time in effect affecting the enforcement of creditors' rights generally..

         3.28 ABSENCE OF CLAIMS AGAINST THE COMPANY. Neither the Members nor any
Excluded Subsidiary has any claims against the Company or any Retained
Subsidiary.

         3.29 NO OTHER REPRESENTATIONS OR WARRANTIES. Except as expressly set
forth in this Article III, neither the Company, the Subsidiaries nor the
Members, makes, and no party shall be entitled to rely upon, any representation
or warranty as to any fact or matter about the Company, the Subsidiaries and the
Members; provided, however, that the foregoing shall not be deemed to negate the
express representations and warranties made by a party in an independent
agreement with respect to such agreement (e.g. the Noncompetition Agreements).

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PURCHASE AGREEMENT                                                       PAGE 32

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                                   ARTICLE IV

                   REPRESENTATIONS AND WARRANTIES OF PURCHASER

         Purchaser represents and warrants to the Company and the Members as
follows:

         4.1 ORGANIZATION AND STANDING. Purchaser is a corporation duly
organized, validly existing and in good standing under the laws of the State of
South Carolina. Purchaser has the full corporate power and authority to carry on
its business in the places and as it is now being conducted and to own and lease
the properties and assets which it now owns or leases.

         4.2 CORPORATE POWER AND AUTHORITY. Purchaser has the corporate power,
capacity and authority to execute and deliver this Agreement, to perform
hereunder, and to consummate the transactions contemplated hereby. The
execution, delivery and performance by Purchaser of this Agreement and each and
every agreement, document and instrument provided for herein has been duly
authorized and approved by its Board of Directors. This Agreement, and each and
every other agreement, document and instrument to be executed, delivered and
performed by Purchaser in connection herewith, constitutes or will, when
executed and delivered, constitute the valid and legally binding obligation of
Purchaser enforceable against it in accordance with their respective terms,
except as enforceability may be limited by applicable equitable principles, or
by bankruptcy, insolvency, reorganization, moratorium, or similar laws from time
to time in effect affecting the enforcement of creditors' rights generally.

         4.3 AGREEMENT DOES NOT VIOLATE OTHER INSTRUMENTS; CONSENTS. The
execution and delivery of this Agreement and each and every agreement, document
and instrument to be executed and delivered in connection herewith by Purchaser
does not, and the consummation of the transactions contemplated hereby will not,
violate any provisions of the Articles of Incorporation, as amended, or Bylaws,
as amended, of Purchaser or violate or constitute an occurrence of default under
any provision of, or conflict with, result in acceleration of any obligation
under, or give rise to a right by any party to terminate its obligations under,
any mortgage, deed of trust, conveyance to secure debt, note, loan, lien, lease,
agreement, instrument, or any order, judgment, decree or other arrangement to
which Purchaser is a party or is bound or by which its assets are affected which
violation, default, conflict, acceleration or termination, either singularly or
in the aggregate, would have a material adverse effect on the ability of
Purchaser to perform under this Agreement. Except for approval under the HSR
Act, no consent, approval, order or authorization of, or registration,
declaration or filing with, any Governmental Entity is required to be obtained
or made by or with respect to Purchaser in connection with the execution and
delivery by Purchaser of this Agreement or any of the agreements, certificates
or other documents delivered or to be delivered on or after the date hereof and
at or prior to Closing in connection with the transactions contemplated hereby
to which Purchaser is or will be a party or the consummation of the transactions
contemplated hereby.

         4.4 NO DEFAULT. No event of default or default, or event which with the
giving of notice, lapse of time, or both, would constitute a default or an event
of default under any loan agreement, note, deed of trust, mortgage, lease,
instrument or other similar agreement, to which Purchaser is a party of by which
it or its properties are bound, exists, the effect of which would

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 33

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be to materially interfere with or prevent the consummation of the transactions
contemplated hereby.

         4.5 CONSENTS. Except as set forth on Schedule 4.5, no consent,
approval, notice to, registration or filing with, authorization or order, of any
governmental authority or under any Contract or other agreement or commitment to
which the Purchaser is a party or by which its assets are bound is required as a
result of or in connection with the execution or delivery of this Agreement and
the other agreements and documents to be executed by the Purchaser or the
consummation by the Purchaser of the transactions contemplated hereby.

         4.6 FINANCING. Purchaser has, and on the Closing Date will have,
sufficient funds unconditionally available to it (without the need to obtain any
additional bank or third party financing) to pay the Purchase Price to the
Members and to consummate the transactions contemplated hereby.

                                   ARTICLE V

            CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER TO CLOSE

         The obligations of Purchaser to consummate the transactions
contemplated by this Agreement shall be subject to the satisfaction, on or
before the Closing Date, of each and every one of the following conditions.

         5.1 COVENANTS OF THE COMPANY AND THE MEMBERS. The Company and the
Members shall have duly performed in all material respects all of the covenants,
acts and undertakings to be performed by them on or prior to the Closing Date
and an authorized officer of the Company and the Members' Representative shall
have delivered to Purchaser a certificate dated as of the Closing Date
certifying to the fulfillment of this condition.

         5.2 NO INJUNCTION, ETC. No Proceeding or investigation shall have been
instituted, before any Governmental Entity to enjoin, restrain, prohibit, or
obtain substantial damages in respect of, this Agreement or the consummation of
the Contemplated Transactions.

         5.3 OPINION OF COUNSEL. An opinion of Robinson Bradshaw and Hinson,
counsel for the Company and the Subsidiaries shall have been delivered to
Purchaser dated as of the Closing Date, substantially in form and substance of
the opinion attached hereto as Exhibit 5.3.

         5.4 HSR ACT. Early termination of or expiration of the waiting period
under the HSR Act shall have occurred on or prior to the Closing Date.

         5.5 DOCUMENTS TO BE DELIVERED. The Company and the Members shall have
obtained for delivery at Closing the documents set forth in SECTION 7.2.

         5.6 CONSENTS. The Members shall deliver all the Consents listed on
Schedule 5.6 in form and substance reasonably satisfactory to the Purchaser, or
deliver the notices, if applicable set forth on Schedule 5.6.

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PURCHASE AGREEMENT                                                       PAGE 34

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         5.7 NO MATERIAL ADVERSE EFFECT. Between the date of this Agreement and
the Closing Date there shall not have been any Material Adverse Effect.

                                   ARTICLE VI

                   CONDITIONS PRECEDENT TO THE OBLIGATIONS OF
                              THE MEMBERS TO CLOSE

         The obligations of Members to consummate the transactions contemplated
by this Agreement shall be subject to the satisfaction, on or before the Closing
Date, of each and every one of the following conditions.

         6.1 COVENANTS OF PURCHASER. Purchaser shall have duly performed in all
material respects all of the covenants, acts and undertakings to be performed by
it on or prior to the Closing Date, and a duly authorized officer of Purchaser
shall deliver to the Members' Representative certificates dated as of the
Closing Date certifying to the fulfillment of this condition.

         6.2 NO INJUNCTION, ETC. No Proceeding or investigation shall have been
instituted, before any Governmental Entity to enjoin, restrain, prohibit, or
obtain substantial damages in respect of, this Agreement or the consummation of
the Contemplated Transactions.

         6.3 OPINION OF COUNSEL FOR PURCHASER. An opinion of Haynsworth Sinkler
Boyd, P.A., counsel for Purchaser shall have been delivered to Members'
Representative dated as of the Closing Date, substantially in form and substance
of the opinion attached hereto as Exhibit 6.3.

         6.4 REPRESENTATIONS TRUE AT CLOSING. The representations and warranties
made by Purchaser in this Agreement, the Schedules and the Exhibits hereto shall
be true and correct on the Closing Date with the same force and effect as though
such representation and warranty had been made on and as of such time (except
for representations and warranties specifically made as of a certain date,
changes expressly contemplated by this Agreement or otherwise previously
disclosed to, and agree to by, the Company in writing) other than such
representations and warranties that in the aggregate are not or would not be
reasonably expected to be materially adverse to the interest of the Company or
the Members or in connection with the Contemplated Transactions;

         6.5 DOCUMENT DELIVERY. Purchaser shall have obtained for delivery at
Closing the documents set forth in SECTION 7.3.

         6.6 HSR ACT. Early termination of or expiration of the waiting period
under the HSR Act shall have occurred on or prior to the Closing Date.

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 35

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                                  ARTICLE VII

                                     CLOSING

         7.1 TIME AND PLACE OF CLOSING. The Closing shall be held at the offices
of Haynsworth Sinkler & Boyd, P.A., 1201 Main Street, Suite 2200, Columbia,
South Carolina commencing at 10:00 a.m., Eastern Time, on a date to be agreed
that is no more than five business days following the later of (i) the
expiration or early termination of the applicable waiting period under the HSR
Act or (ii) the fulfillment, or waiver by the applicable party, of all of the
conditions of ARTICLES V and VI (the "Closing Date") unless another place or
date is agreed to in writing by the Company, the Members' Representative and
Purchaser.

         7.2 THE COMPANY'S AND THE MEMBERS' PERFORMANCE AT CLOSING. At the
Closing, the Company and the Members shall deliver to Purchaser, where
appropriate, the following:

                  7.2.1 the Certificates representing the Membership Interests
and the Assignments of the Membership Interests in the form of Exhibit 7.2.1;

                  7.2.2 releases in form and substance reasonably satisfactory
to the Purchaser effective as of the Closing from each of the (i) Members; (ii)
managers, officers of the Company and each Retained Subsidiaries (as listed on
Schedule 3.24) including a resignation for each such officer and manager, and
(iii) participants in the Incentive Bonus Plan which releases the Company from
any liability under the Incentive Bonus Plan;

                  7.2.3 resignations from employment by L. Kerry Vickar,
Bryan L. Smith and Whitcomb Honeycutt without severance or other payments;

                  7.2.4 noncompetition agreements executed by each of the
Members (other than Allied Capital Corporation) that own 1% or more of the
Membership Interests (the "Noncompetition Agreements");

                  7.2.5 certificates of compliance or certificates of good
standing of the Company and each of the Retained Subsidiaries, as of the most
recent practicable date, from the appropriate governmental authority of the
state of North Carolina;

                  7.2.6 certificates of incumbency of the officers of Company
and the Excluded Subsidiaries who are executing this Agreement and the other
documents contemplated hereunder;

                  7.2.7 certified copies of resolutions of the managing board of
the Company and the Excluded Subsidiaries approving the Contemplated
Transactions;

                  7.2.8 opinion of counsel described in SECTION 5.3;

                  7.2.9 the Transition Services Agreement executed by the
Excluded Subsidiaries;

                  7.2.10 certificate described in SECTION 5.1; and

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 36

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                  7.2.11 the Escrow Agreement.

         7.3 PERFORMANCE BY PURCHASER AT CLOSING. At the Closing, Purchaser
shall deliver to the Members' Representative the following:

                  7.3.1 cash payable to the Members as set out in SECTION 2.1;

                  7.3.2 Noncompetition Agreements signed by Purchaser;

                  7.3.3 opinion of counsel described in SECTION 6.3;

                  7.3.4 certificates of incumbency of the officers of Purchaser
who are executing this Agreement and the other documents contemplated hereunder;

                  7.3.5 certified copies of resolutions of the Board of
Directors of Purchaser approving the Contemplated Transactions;

                  7.3.6 the Transition Services Agreement executed by the
Company;

                  7.3.7 certificate described in SECTION 6.1; and

                  7.3.8 the Escrow Agreement.

                                  ARTICLE VIII

                            INDEMNIFICATION; REMEDIES

         8.1 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations,
warranties, covenants and agreements set forth in this Agreement by Purchaser,
Company and the Members are material and have been relied on by the other party
hereto. All representations, warranties, covenants and agreements set forth in
this Agreement and the remedies of Purchaser and the Company and the Members
with respect thereto, shall survive the Closing Date and shall not merge in the
performance of any obligation by any party hereto; provided, however, (a) that
any claim for indemnification relating to the breach by Purchaser of any of its
covenants, representations and warranties contained in this Agreement may be
made by the Members only if the Members shall notify Purchaser on or before the
expiration of thirty-six months after the Closing Date and (b) that any claim
for indemnification relating to the breach by the Company or the Members of any
of their covenants, representations and warranties contained in this Agreement
may be made by Purchaser only if Purchaser shall notify the Members'
Representative on or before the expiration of the following time periods:

         (a) 36 months after the Closing Date for a claim based on a breach of
SECTIONS 3.1, 3.3, 3.8 AND 3.11; and

         (b) 18 months after the Closing Date for a claim based on a breach of
any representation other than representations in SECTIONS 3.1, 3.3, 3.8 and
3.11.

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 37

<PAGE>

         8.2 INDEMNIFICATION AND PAYMENT OF DAMAGES BY THE MEMBERS. The Members
will jointly and severally indemnify and hold harmless Purchaser and its
Affiliates (collectively, the "Purchaser Indemnified Persons") for, and will pay
to the Purchaser Indemnified Persons, the amount of, any loss, liability claim,
damage (excluding consequential, multiple, exemplary, punitive and incidental
damage claimed directly by any Purchaser Indemnified Person, but including any
such damage to the extent that a Purchaser Indemnified Person becomes liable
therefore pursuant to any Third Party Claim), fine, penalty or expenses
(collectively, "Damages"), incurred by the Purchaser Indemnified Persons
arising, directly or indirectly, from or in connection with:

         (a) any breach of any representation or warranty made by the Company in
this Agreement as of the date of this Agreement and as if made again as of the
Closing, excluding any such breach under Sections 3.12(b), 3.20, 3.23 or 3.26
arising after the date hereof and resulting from or caused by (i) economic or
industry conditions within the United States or generally affecting the industry
in which the Company and the Retained Subsidiaries operate, (ii) changes in U.S.
or global financial markets or conditions, (iii) any generally applicable change
in law, rule or regulation or GAAP or interpretation of any thereof or (iv) the
announcement of this Agreement or the Contemplated Transactions;

         (b) any breach by the Company of any covenant or obligation of the
Company to be performed prior to or at Closing in this Agreement;

         (c) any breach by the Members of any covenant or obligation of the
Members in this Agreement; and

         (d) the litigation matters listed as items 2 and 3 on Schedule 3.16 to
the extent not covered by insurance maintained by the Company.

         8.3 INDEMNIFICATION AND PAYMENT OF DAMAGES BY PURCHASER. Purchaser will
indemnify and hold harmless the Members for, and will pay to the Members, the
amount of any Damages incurred by the Members arising, directly or indirectly,
from or in connection with:

         (a) any breach of any representation or warranty made by Purchaser in
this Agreement and as if made again as of the Closing; or

         (b) any breach by Purchaser of any covenant or obligation of Purchaser
in this Agreement.

         8.4 LIMITATIONS ON INDEMNIFICATION.

         (a) Except for claims under SECTION 8.2(d) which shall not be subject
to the Indemnification Threshold, no claim shall be made for indemnification
against the Members pursuant to this Agreement unless and until the aggregate
amount of Damages incurred by the Purchaser Indemnified Persons under this
Agreement exceeds $1,000,000 (the "Indemnification Threshold") and then the
Members shall be liable for Damages only to the extent of the excess over the
Indemnification Threshold. Notwithstanding the above, if the Company after
Closing collects receivables in excess of the accounts receivable net of its
allowance as of the Closing

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 38

<PAGE>

Date as shown on the detailed accounting provided to Purchaser under
SECTION 2.2(b), the Indemnification Threshold shall be increased by the amount
of such excess.

         (b) No claim shall be made for indemnification against Purchaser
pursuant to this Agreement unless and until the aggregate amount of Damages
incurred by the Members exceeds the Indemnification Threshold and then Purchaser
shall be liable for Damages only to the extent of the excess over the
Indemnification Threshold.

         (c) The total liability of the Members to Purchaser under SECTION 8.2
or of Purchaser to the Members under SECTION 8.3 hereof shall be limited in the
aggregate (for the Members on the one hand and the Purchaser on the other hand,
not combined) to $12,500,000 and in no event shall at any time exceed the amount
held in the Escrow Account.

         8.5 INDEMNIFICATION BY THE EXCLUDED SUBSIDIARIES. The Excluded
Subsidiaries will severally indemnify and hold harmless the Company, the
Retained Subsidiaries, the Purchaser and its Affiliates for, and will pay to
such Persons, the amount of Damages required to be paid by such Persons arising,
directly or indirectly, from or in connection with any claim, suit, course of
action, investigation or proceeding of any kind whatsoever which relates to, or
arises from, any Liabilities of the Excluded Subsidiaries before, on or after
the Closing Date. Claims hereunder may be brought at any time after Closing. The
limitations of SECTION 8.4 shall not apply to this SECTION 8.5.

         8.6 PROCEDURE FOR INDEMNIFICATION--THIRD PARTY CLAIMS.

         (a) If any Members or Purchaser Indemnified Person entitled to
indemnification under this Agreement (an "Indemnitee") receives notice of the
commencement of any Proceeding by any Person who is not a party to this
Agreement or an affiliate of such a party (a "Third Party Claim") against such
Indemnitee for which a party is obligated to provide indemnification under this
Agreement (an "Indemnifying Party"), the Indemnitee will give such Indemnifying
Party reasonably prompt written notice thereof (the "Third Party Claim Notice"),
but the failure to so notify Indemnifying Party shall not relieve Indemnifying
Party of its indemnity obligations with respect to such Third Party Claim unless
the Indemnifying Party establishes that the defense of such Third Party Claim is
actually prejudiced by the Indemnitee's failure to give such notice. The Third
Party Claim Notice will describe the Third Party Claim in reasonable detail and
will indicate the estimated amount, if reasonably practicable, of the Damages
that have been or may be sustained by the Indemnitee. Except as otherwise set
forth in this SECTION 8.5, the Indemnifying Party will have the right to assume
the defense of any Third Party Claim at the Indemnifying Party's own expense and
with counsel selected by the Indemnifying Party (which counsel shall be
reasonably satisfactory to the Indemnitee) by giving to the Indemnitee written
notice in which the Indemnifying Party acknowledges its responsibility to
indemnify the Indemnitee (the "Assumption Notice") no later than thirty calendar
days after receipt of the Third Party Claim Notice. The Indemnifying Party shall
not be entitled to assume the defense of, and the Indemnitee shall be entitled
to have sole control over, the defense or settlement of any Third Party Claim to
the extent that such claim seeks an order, injunction or other equitable relief
against the Indemnitee which, if successful, would be reasonably likely to
materially interfere with the business, operations, assets, or financial
condition of the Indemnitee. In the event the Indemnifying Party assumes the
defense of a Third Party Claim, the Indemnitee

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 39

<PAGE>

will cooperate in good faith with the Indemnifying Party in such defense and
will have the right to participate in the defense of any Third Party Claim
assisted by counsel of its own choosing and at its own expense. Notwithstanding
the foregoing, if the named parties to the Third Party Claim (including any
impleaded parties) include both the Indemnifying Party and the Indemnitee or if
the Indemnifying Party proposes that the same counsel represent both the
Indemnitee and the Indemnifying Party and the Indemnitee in good faith
determines that representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them, then
the Indemnitee shall have the right to retain its own counsel (which counsel
shall be reasonably satisfactory to the Indemnifying Party) at the cost and
expense of the Indemnifying Party. If the Indemnitee does not receive the
Assumption Notice within the thirty calendar day period set forth above or if
the Indemnifying Party is not entitled to assume the defense of the Third Party
Claim, the Indemnitee shall have sole control over the defense and settlement of
the Third Party Claim, and the Indemnifying Party will be liable for all Damages
paid or incurred in connection therewith; provided that the Indemnifying Party
may elect to participate in such proceedings, negotiation or defense at any time
at its own expense.

         (b) If the Indemnifying Party assumes the defense of the Third Party
Claim, the Indemnifying Party shall not compromise or settle such claim without
the Indemnitee's consent unless (i) there is no finding or admission of any
violation of legal requirements or any violation of the rights of any Person by
the Indemnitee and no effect on any other claims that may be made against the
Indemnitee, (ii) the sole relief provided is monetary damages that are paid in
full by the Indemnifying Party and (iii) the settlement includes as an
unconditional term a complete release of each Indemnitee from all liability in
respect of such claim.

         (c) Each Indemnifying Party who assumes the defense of a Third Party
Claim shall use reasonable efforts to diligently defend such claim.

         8.7 PROCEDURE FOR INDEMNIFICATION--DIRECT CLAIMS. If an Indemnified
Party shall claim indemnification hereunder for any claim other than a Third
Party Claim, the Indemnified Party shall notify the Indemnifying Party in
writing of the basis for such claim setting forth the nature and amount (or
reasonable estimate) of the Damages resulting from such claim. The Indemnifying
Party shall give written notice of any disagreement with such claim within 15
days following receipt of the Indemnified Party's notice of the claim,
specifying in reasonable detail the nature and extent of such disagreement. If
the Indemnifying Party and the Indemnified Party are unable to resolve any
disagreement (a "Dispute") within 30 days following receipt by the Indemnified
Party of the notice referred to in the preceding sentence, the disagreement
shall be submitted for resolution by arbitration administered by and in
accordance with the rules of the American Arbitration Association (the "AAA
Rules"). Disputes shall be heard and decided by a single arbitrator agreed to by
the Indemnified Party and the Indemnifying Party from the American Arbitration
Association's National Roster of Arbitrators or, if the parties cannot agree on
an arbitrator, appointed from the same panel in accordance with the AAA Rules.
All arbitration hearings shall be conducted in Charlotte, North Carolina. The
parties agree that this agreement to arbitrate does not extend to any demand
which would be barred by the applicable

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 40

<PAGE>

statute of limitations, that any award on such a demand would exceed the scope
of the arbitrator's authority under this Agreement, and that either party may
apply to the court for a stay of arbitration of any claim that would be barred
by the applicable statute of limitations. The arbitrator shall have no power to
award punitive or exemplary damages or to ignore or vary the terms of this
Agreement and shall be bound to apply controlling law. The arbitrator 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 shall determine to be equitable. A judgment upon the
award rendered by the arbitrator may be entered in any court having jurisdiction
thereof and may include the award of prejudgment interest, attorneys' fees and
other costs. The parties agree that such arbitration will be in lieu of either
party's rights to assert any claim, demand or suit in any court action, provided
that either party may elect to initiate a court action solely to obtain
injunctive relief. The parties further agree that any disputes as to the
applicability of the indemnification provisions of this Article VIII shall also
be submitted to arbitration in accordance with the foregoing provisions.

         8.8 SUBROGATION. Upon any payment of Damages to an Indemnitee, the
Indemnifying Party shall be subrogated to all rights of the Indemnitee with
respect to the Damages to which such indemnification relates; provided, however,
that the Indemnifying Party will only be subrogated to the extent that any
amount paid by it pursuant to this Agreement in connection with such Damages;
and provided further that no such right of subrogation will arise in favor of an
Indemnifying Party if such right would give such Indemnifying Party the right to
be reimbursed or further indemnified by the Company.

         8.9 EXCLUSIVE REMEDY. From and after the Closing, the right to
indemnification and other rights under this Article VIII shall constitute
Purchaser's and the Members' sole and exclusive remedies with respect to any and
all claims arising under or relating to this Agreement or the transactions
contemplated by this Agreement. In furtherance of the foregoing, Purchaser and
the Members and their respective Affiliates hereby waive, from and after the
Closing, to the fullest extent permitted by law, any and all rights, claims and
causes of action that they may have against any other party or its Affiliates,
except those arising under this Article VIII. Without limiting the generality of
the foregoing, Purchaser shall have no right of rescission following the Closing
with respect to the transactions contemplated by this Agreement. The foregoing
shall not waive, limit or restrict any parties' rights to enforce the
Noncompetition Agreements or any employment or consulting agreements pursuant to
the terms thereof. Notwithstanding anything in this Article VIII, nothing in
this Agreement shall limit the representations made by the Members at Closing in
the Assignment of Membership Interests to be executed by each Member at Closing
or the rights or remedies that the Purchaser may have directly against such
Member pursuant to such representations or otherwise under the Assignment of
Membership Interests.

                                   ARTICLE IX

                                   TERMINATION

         9.1 TERMINATION. Anything contained in this Agreement to the contrary
notwithstanding, this Agreement may be terminated at any time prior to the
Closing Date (the "Agreement Termination Date").

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 41

<PAGE>

                  9.1.1 by mutual consent of Purchaser, the Company, and the
Members' Representative;

                  9.1.2 by Purchaser, the Company or the Members' Representative
if the Closing shall not have occurred on or before July 15, 2004 (or such later
date as may be mutually agreed to by Purchaser, the Company, and the Members'
Representative), provided that the failure to close by such date shall not have
been caused by the failure of the party seeking termination to comply fully with
any of its obligations under this Agreement;

                  9.1.3 by Purchaser in the event of any material breach by the
Company or the Members of any of the Company's or the Members' agreements,
covenants, representations or warranties contained herein and which breach, if
unremedied, would cause any condition precedent stated in Article V not to be
satisfied and the breach continues for a period of fifteen (15) days after
receipt of notice from Purchaser requesting such breach to be cured; or,

                  9.1.4 by the Company and the Members' Representative in the
event of any material breach by Purchaser of any of Purchaser's agreements,
covenants, representations or warranties contained herein and which breach, if
unremedied, would cause any condition precedent stated in Article VI not to be
satisfied and the breach continues for a period of fifteen (15) days after
receipt of notice from the Members' Representative requesting such breach to be
cured.

                  9.1.5 by either Purchase, the Company or the Members'
Representative in the event that any of the conditions set forth in SECTION 5.2,
5.4, 6.2 or 6.5 shall have become incapable of fulfillment (other than through
the failure of the party seeking termination to comply fully with any of its
obligations under this Agreement).

         9.2 NOTICE OF TERMINATION. Any party desiring to terminate this
Agreement pursuant to SECTION 9.1 shall give notice of such termination to the
other party to this Agreement.

         9.3 EFFECT OF TERMINATION. In the event this Agreement shall be
terminated pursuant to SECTION 9.1.1, each party shall pay all expenses incurred
by it in connection with this Agreement, and no party shall have any further
obligations or liability for any damages or expenses under this Agreement. In
the event of any other termination, all further obligations of the parties under
this Agreement (other than as provided in SECTION 10.10 below) shall be
terminated without further liability of any party to the other, but each party
shall retain any and all rights incident to a breach by the other party of any
covenant, representation or warranty under this Agreement.

                                   ARTICLE X

                               GENERAL PROVISIONS

         10.1 NOTICES. All notices, requests, demands and other communications
shall be in writing and shall be delivered by hand or mailed by registered or
certified mail, return receipt

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 42

<PAGE>

requested, first class postage prepaid, or sent by telecopy confirmed by a copy
sent by the sender registered or certified mail, first class postage prepaid, in
each case, addressed as follows:

                  10.1.1 If to the Company:

                                   CorrFlex Graphics, LLC
                                   701 Rickert Street (28677)
                                   P. O. Box 5878 (28687)
                                   Statesville, North Carolina
                                   Attention: L. Kerry Vickar and Bryan L. Smith
                                   Fax: (704) 872-7778

                          and to

                                   Robinson, Bradshaw Hinson
                                   101 N. Tryon Street, #1900
                                   Charlotte, North Carolina 28246
                                   Attention: Allain C. Andry, Esq.
                                   Fax: (704) 373-3959

                  10.1.2 If to Members' Representative:

                                   L. Kerry Vickar
                                   789 Harbour Isles Court
                                   North Palm Beach, Florida 33410
                                   Fax: (561) 775-8338

                          and to

                                   Bryan L. Smith
                                   1826 Plumbago Lane
                                   Naples, Florida 34105
                                   Fax: (239) 434-7131

                          and to

                                   Robinson, Bradshaw Hinson
                                   101 N. Tryon Street, #1900
                                   Charlotte, North Carolina 28246
                                   Attention: Allain C. Andry, Esq.
                                   Fax: (704) 373-3959

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 43

<PAGE>

                  10.1.3 If to Purchaser:

                                   Sonoco Products Company
                                   1 North Second Street
                                   Hartsville, South Carolina 29550
                                   Attn: President
                                   Telecopier: (843) 383-7478

                          and to:

                                   Haynsworth Sinkler Boyd, P.A.
                                   1201 Main Street, Suite 2200
                                   Columbia, South Carolina 29201
                                   Attn: William C. Boyd,. Esq.
                                   Telecopier: (803) 540-7878

                  10.1.4 If delivered personally, the date on which a notice,
request, instruction or document is delivered shall be the date on which such
delivery is made and, if delivered by mail, the date on which such notice,
request, instruction or document is received shall be the date of delivery, and
in the case of telecopy, when the telecopy or the confirmed copy is received,
whichever is earlier. In the event any such notice, request, instruction or
document is mailed to a party in accordance with this SECTION 10.1 and is
returned to the sender as nondeliverable, then such notice, request, instruction
or document shall be deemed to have been delivered, or received on the fifth day
following the deposit of such notice, request, instruction, or document in the
United States mail.

                  10.1.5 Any party hereto may change its address specified for
notices herein by designating a new address by notice in accordance with this
SECTION 10.1.

         10.2 BROKERS. Purchaser represents and warrants to the Company that no
broker or finder has acted for it or any entity controlling, controlled by or
under common control with it in connection with this Agreement. The Company and
the Members represent and warrant to Purchaser that, except for Wachovia
Securities whose fees and expenses shall be paid by the Members at Closing from
the transaction proceeds, no broker or finder has acted for them or any entity
controlling, controlled by or under common control with them in connection with
this Agreement. Purchaser releases, discharges and agrees to indemnify and hold
harmless the Company and the Members against any fee, loss or expense arising
out of any claim by any broker or finder employed or alleged to have been
employed by it. The Members agree to jointly and severally indemnify and hold
harmless Purchaser and the Company and the Retained Subsidiaries after Closing
against any fee, loss, or expense arising out of any claim by any broker or
finder employed or alleged to have been employed by them or the Company.

         10.3 FURTHER ASSURANCE. Each party covenants that at any time, and from
time to time, after the Closing Date, it will execute such additional
instruments and take such actions as may be reasonably requested by the other
parties to confirm or perfect or otherwise to carry out the intent and purposes
of this Agreement.

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 44

<PAGE>

         10.4 WAIVER. Any failure on the part of either party hereto to comply
with any of its obligations, agreements or conditions hereunder may be waived by
the other party hereto. No waiver of any provision of this Agreement shall be
deemed, or shall constitute, a waiver of any other provisions, whether or not
similar, nor shall any waiver constitute a continuing waiver.

         10.5 TAXES AND EXPENSES. All expenses incurred by the parties hereto in
connection with or related to the authorization, preparation and execution of
this Agreement and the Closing of the Contemplated Transactions, including,
without limitation of the generality of the foregoing, all fees and expenses of
agents, representatives, counsel and accountants employed by any such party,
shall be borne solely and entirely by the Purchaser on the one hand for its
expenses and the Members on the other hand for their expenses. The Company and
the Retained Subsidiaries shall not be responsible for the third party expenses
in connection with or related to the distribution of the Excluded Assets
including the Excluded Subsidiaries or the authorization, preparation and
execution of this Agreement and the Closing of the Contemplated Transactions.

         10.6 BINDING EFFECT. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, legal
representatives, executors, administrators, successors and assigns.

         10.7 HEADINGS. The section and other headings in this Agreement are
inserted solely as a matter of convenience and for reference, and are not a part
of this Agreement.

         10.8 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
among the parties hereto and supersedes and cancels any prior agreements,
representations, warranties, or communications, whether oral or written or
implied, among the parties hereto relating to the Contemplated Transactions or
the subject matter herein. Neither this Agreement nor any provision hereof may
be changed, waived, discharged or terminated orally, but only by an agreement in
writing signed by the party against whom or which the enforcement of such
change, waiver, discharge or termination is sought.

         10.9 GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of South Carolina.

         10.10 CONFIDENTIALITY. Each party hereto shall, and shall cause its
affiliates to, and shall use reasonable commercial efforts to cause its
representatives to (a) hold in strict confidence and not utilize in its
respective business or otherwise all information and documents concerning any
other party hereto or any of its Affiliates or the Assets ("Confidential
Information") furnished to it by such other party or its Representatives in
connection with this Agreement or the transactions contemplated hereby and to
(b) hold in strict confidence and not disclose the fact that the parties have
entered into this Agreement or any documents executed pursuant hereto, except
where disclosure may be required by judicial or administrative process or law or
as may be necessary for each party to fulfill its obligations or to enforce its
rights under this Agreement (or any documents executed pursuant hereto).
Notwithstanding the foregoing, the following will not constitute Confidential
Information for purposes of this Agreement: (i) information which was already in
the possession of the disclosing party or its Affiliate prior to the date hereof
and which was not acquired or obtained from any other party or its Affiliates,
(ii) information which

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 45

<PAGE>

is independently developed by the disclosing party or any Affiliate thereof
without access to the Confidential Information and without utilizing its
inspection rights hereunder, (iii) information which is obtained or was
previously obtained by the disclosing party from a third Person who, insofar as
is known to the disclosing party or its Affiliate, is not prohibited from
transmitting the information to the other party or such Affiliate by a
contractual, legal or fiduciary obligation to the other party or any of its
Affiliates, and (iv) information which is or becomes generally available to the
public other than as a result of a disclosure by the disclosing party or any
Affiliate thereof or their agents or employees. If this Agreement is terminated
pursuant to Article IX hereof, each party hereto will not use any such
Confidential Information in competition with or in any manner to the detriment
of the other party, will not disclose any Confidential Information except as
required by court order or by law and will promptly return to the other party
Confidential Information delivered to such party or its Representatives, by or
on behalf of the other party. The foregoing shall not affect or limit any rights
of Allied Capital Corporation in its capacity as a lender to the Company.

         10.11 PUBLICITY. No party hereto shall issue any public announcement or
similar publicity of the Contemplated Transactions without first obtaining the
prior written consent of the Members' Representative and Purchaser; provided
that nothing contained herein shall prohibit any party from making any public
announcement if such party determines in good faith, on the advice of legal
counsel, that such public disclosure is required by a Legal Requirement, so long
as such party consults with the Members' Representative and Purchaser prior to
making such disclosure.

         10.12 ASSIGNMENT. This Agreement and all of the provisions hereof shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns, but neither this Agreement nor any
of the rights, interests or obligations hereunder shall be assigned by any party
hereto without the prior written consent of the other parties.

         10.13 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         10.14 PRONOUNS. All pronouns used herein shall be deemed to refer to
the masculine, feminine or neuter gender as the context requires.

         10.15 EXHIBITS INCORPORATED. All Exhibits attached hereto are
incorporated herein by reference, and all blanks in such Exhibits, if any, will
be filled in as required in order to consummate the transactions contemplated
herein and in accordance with this Agreement.

         10.16 CREATION OF THE HOLDING COMPANY.

         (a) Prior to the Closing, the Company shall (i) create a wholly-owned
limited liability company (the "Holding Company"), (ii) contribute to the
Holding Company all of its equity interests in the Excluded Subsidiaries, and
(iii) assign to the Holding Company all of its rights, duties and obligations
under the Incentive Bonus Plan and cause the Holding Company to assume all such
duties and obligations. Notwithstanding the foregoing assignment of the
Incentive Bonus Plan, the obligation of the Members to fund the Incentive Bonus
Plan in

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MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 46

<PAGE>

connection with the Closing shall remain in effect pursuant to the terms of the
Incentive Bonus Plan.

         (b) At or prior to the Closing, the Company shall distribute in-kind to
the Members its equity interest in the Holding Company in accordance with the
distribution provisions of the Company's operating agreement, except that Allied
Capital Corporation shall be distributed or granted a warrant to purchase an
equity interest in the Holding Company on terms substantially identical to the
terms of its existing warrants and purchase options in the Company.

         (c) The Members hereby authorize the Board of Managers to make all
amendments to the Incentive Bonus Plan that may be necessary or advisable to
provide for or facilitate the transactions contemplated by this Agreement.

         (d) At any time and from time to time after the date hereof, each party
to this Agreement shall, at the request of the Company (for the period prior to
the Closing) or the Members' Representative (for the period after the Closing),
execute and deliver such instruments, agreements or other documents and take all
such further action as the requesting Person may reasonably request to evidence
or give effect to the provisions of this SECTION 10.16 and to otherwise carry
out the intent of the parties hereunder.

         10.17 OPERATING AGREEMENT. The Members agree that the terms of this
Agreement supercede the membership interest transfer restrictions in Section 9
of the Company's operating agreement. If any provisions in such operating
agreement would prevent or restrict any of the Contemplated Transactions, the
Members waive the application and enforcement of such provisions to the extent
reasonably necessary to prepare for and to close the Contemplated Transactions.

         IN WITNESS WHEREOF the parties hereto have executed this Agreement as
of the date first-above mentioned.

                                            SONOCO PRODUCTS COMPANY
                                            ("Purchaser")

                                            By:
                                                   -----------------------------
                                            Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

                                            CORRFLEX GRAPHICS, LLC
                                            ("Company")

                                            By:
                                                   -----------------------------
                                            Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

                                            By:
                                                   -----------------------------
                                            Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

--------------------------------------------------------------------------------
CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 47

<PAGE>

                                            CORRFLEX PACKAGING, LLC
                                            ("Excluded Subsidiary")

                                            By:
                                                   -----------------------------
                                            Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

                                            By:
                                                   -----------------------------
                                            Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

                                            N717CF, LLC
                                            ("Excluded Subsidiary")

                                            By:
                                                   -----------------------------
                                            Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

                                            By:
                                                   -----------------------------
                                            Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

--------------------------------------------------------------------------------
CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 48

<PAGE>

                                LIST OF SCHEDULES

Schedule 1.65         Liens

Schedule 1.89         Working Capital

Schedule 2.1          Membership Interests Ownership

Schedule 2.2(a)       Financial Debt

Schedule 2.2(b)       Excluded Assets

Schedule 2.10         Key Employees

Schedule 2.11.2       Allocation Schedule

Schedule 2.16         ERM Proposal

Schedule 3.2          Jurisdictions Licensed to do Business; List of Predecessor
                      Companies; Prior Business Names; Exceptions to Accuracy
                      and Completeness of Minutes

Schedule 3.3          Outstanding conversion or exchange rights, subscriptions,
                      options, warrants or other arrangements or commitments

Schedule 3.5          Financial Statements

Schedule 3.6          Accounts and Notes Receivable

Schedule 3.7          Material Permits

Schedule 3.8          Tax Matters

Schedule 3.9(a)       Real Property

Schedule 3.9(b)       Personal Property

Schedule 3.9(c)       Personal Property Exceptions.

Schedule 3.10         Real Property Leases

--------------------------------------------------------------------------------
CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 49

<PAGE>

Schedule 3.11         Environmental Compliance

Schedule 3.12(a)      Contracts

Schedule 3.12(b)      Contract Exceptions

Schedule 3.13         Undisclosed Liabilities

Schedule 3.15         Consents

Schedule 3.16         Litigation

Schedule 3.18         Intellectual Property

Schedule 3.19         Employee Benefit Plans

Schedule 3.20         Employees

Schedule 3.21         Insurance

Schedule 3.22         Interests in Customers and Suppliers

Schedule 3.23         Customers and Supplies

Schedule 3.24         Officers and Directors

Schedule 3.25         Bank Accounts and Powers of Attorney

Schedule 3.26         Absence of Certain Changes or Events

Schedule 4.5          Consents

Schedule 5.6          Material Consents

--------------------------------------------------------------------------------
CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 50

<PAGE>

                                LIST OF EXHIBITS

Exhibit 1.32          Escrow Agreement

Exhibit 1.62          Noncompetition Agreement

Exhibit 1.88          Transition Services Agreement

Exhibit 5.3           Form of Opinion of Counsel for the Company, the Excluded
                      Subsidiaries and the Members

Exhibit 6.3           Form of Opinion of Counsel for Purchaser

Exhibit 7.2.1         Assignment of Membership Interests

--------------------------------------------------------------------------------
CORRFLEX GRAPHICS, LLC
MEMBERSHIP INTEREST
PURCHASE AGREEMENT                                                       PAGE 51

<PAGE>

                                 AMENDMENT NO. 1
                                       TO
                     MEMBERSHIP INTEREST PURCHASE AGREEMENT

         This Amendment No. 1 to the Membership Interest Purchase Agreement,
dated as of May 28, 2004 (the "Amendment"), among SONOCO PRODUCTS COMPANY, a
South Carolina corporation ("Purchaser"), CORRFLEX GRAPHICS, LLC, a North
Carolina limited liability company ("Company"), CORRFLEX PACKAGING, LLC, a North
Carolina limited liability company, and N717CF, LLC, a North Carolina limited
liability company (collectively the "Excluded Subsidiaries") and the members and
option and warrant holders of the Company (collectively the "Members") amends
the Membership Interest Purchase Agreement dated as of April 28, 2004, among
Purchaser, the Company, the Excluded Subsidiaries and the Members (the
"Agreement"). All capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to such terms in the Agreement.

                                    RECITALS

         WHEREAS, the parties hereto entered into the Agreement pursuant to
which Purchaser agreed to purchase from the Members, and the Members agreed to
sell to Purchaser, all of the membership or other equity interests of the
Company, subject to the terms and conditions set forth therein; and

         WHEREAS, the parties seek to amend the Agreement to make certain
changes as set forth below.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein and in the Agreement, the parties hereby agree as follows:

                                    AGREEMENT

         1. Section 1.68 is hereby deleted in its entirety and replaced with the
following:

         "Preliminary Working Capital" shall mean the Working Capital estimated
         as of 11:59 p.m., Eastern Time, on May 29, 2004 by the Company by
         virtue of a statement to be delivered by the Company at Closing signed
         by the President and Chief Financial Officer of the Company certifying
         that such statement is their best estimate of Working Capital as of
         11:59 p.m., Eastern Time, on May 29, 2004.

         2. Section 2.1(i)(B) is hereby deleted in its entirety and replaced
with the following:

         "(B) any bonuses paid to employees outside of the ordinary course of
         business (other than any bonus paid to Robert Tiede) during the period
         beginning on the date hereof until Closing."

         3. Section 2.2 is hereby amended by adding a new subsection (c) as
follows:

         "(c) L. Kerry Vickar hereby agrees to make a capital contribution to
         the Company immediately prior to the Closing in the amount of
         $5,320,521, which equals the special

<PAGE>

         bonus payment due to Robert Tiede from the Company as of the Closing
         (the "Bonus Payment"). L. Kerry Vickar further directs Purchaser to
         fund such capital contribution by withholding $5,320,521 at the Closing
         from the distribution amount to which he is entitled under Section 2.1.
         At the Closing, Purchaser shall cause the Company to make the Bonus
         Payment directly to Robert Tiede. The Company covenants that the Bonus
         Payment is the entire amount payable by the Company relating to the
         special bonus to Robert Tiede described in this subsection and that any
         breach of such covenant shall be covered by Article VIII, without
         regard to the Indemnification Threshold. Any Damages payable in
         accordance with the preceding sentence shall reduce the portion of the
         Escrow Amount to which L. Kerry Vickar is entitled in accordance with
         the Escrow Agreement."

         4. Section 2.3 is hereby amended by deleting the first sentence and
replacing it with the following:

         "Within thirty (30) days after the Closing, the Company shall prepare
         and deliver to the Members' Representative a statement of Working
         Capital as of 11:59 p.m., Eastern Time, on May 29, 2004 ("Closing Date
         Working Capital Statement") which shall be prepared on a basis
         consistent with the method used in calculating Schedule 1.89."

         5. Schedule 1.89 of the Agreement shall be amended by adding the
following notes to the bottom of that Schedule:

         "* Any cash held by the Company as of 11:59 p.m., Eastern Time, on May
         29, 2004 shall be deemed to be part of the "current assets" and
         included in Working Capital on the Closing Date Working Capital
         Statement."

         ** The accrual of employee bonuses, although set forth on the Financial
         Statements, shall be excluded from the calculation of Working Capital
         for all purposes of the Agreement, including Section 2.3."

         6. Schedule 2.11.2 of the Agreement shall be amended by deleting the
parenthetical under "Non-Competition Agreements" and replacing it with the
following:

         "(L. Kerry Vickar, Bryan L. Smith, Whitney Honeycutt, Frank Russ,
         Michael M. Sherck, Janet Simpson, William Phillip Dunn, Jr. and Robert
         Carsten Tiede)."

         7. Working Capital. Between the Closing and 11:59 p.m., Eastern Time,
on May 29, 2004, Purchaser shall operate the business of the Company in the
ordinary course consistent with past practice with respect to any matters that
affect Working Capital.

         8. Environmental Remediation. Pursuant to Section 2.16.1 and 2.16.2,
Purchaser and the Company have agreed that the Remediation Amount, as defined,
for the potential costs of post-closing remediation shall be $150,000 for the
York, PA site and $100,000 for the Winston-Salem, NC site, which escrowed
amounts shall be considered separate and available for use only with respect to
the respective specified sites. On May 27, 2004 the Company provided notice to
the State of Pennsylvania of its request for inclusion in the state UST fund
redemption program. In addition to the requirements of Section 2.16.3, Purchaser
agrees to take promptly all commercially reasonable action to qualify the York
site for the state UST fund redemption

                                       2
<PAGE>

program. If the York site is definitely accepted into such program, to the
extent that the site is therefore considered in compliance with Environmental
Laws, Purchaser agrees to release the escrow funds for York that are in excess
of the amount reasonably estimated to cover the owner's required costs (and
associated expenses) under such program. For the Winston-Salem site, prior to
beginning remediation, Purchase agrees first to notify NC DEHNR (to the most
limited extent it deems reasonably necessary or advisable) of the findings from
the site investigation and to seek the formal or informal acknowledgement or
acquiescence of the state that no remedial action will be required.

         9. Entire Agreement. This Amendment, together with the Agreement it
amends, contains all the terms and conditions agreed upon by the parties
relating to the subject matter of this Amendment, and supersedes all prior
agreements, negotiations, correspondence, undertakings, and communications of
the parties, whether oral or written, respecting that subject matter. Except as
explicitly amended by this Amendment, all of the terms and conditions of the
Agreement shall remain in full force and effect.

                         (signatures on following page)

                                       3

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized as of the date
first written above.

                                             CORRFLEX GRAPHICS, LLC

                                             -----------------------------------
                                             By:
                                             Title:

                                             CORRFLEX PACKAGING, LLC

                                             -----------------------------------
                                             By:
                                             Title:

                                             N717CF, LLC

                                             -----------------------------------
                                             By:
                                             Title:

                                             SONOCO PRODUCTS COMPANY

                                             -----------------------------------
                                             By:
                                             Title:

                    (Signatures continued on following page)

                                       4
<PAGE>

MEMBERS:

-----------------------------------         -----------------------------------
L. Kerry Vickar                             Leon E. Formancyzk

-----------------------------------         -----------------------------------
Bryan L. Smith                              Larry J. Hockensmith

-----------------------------------         -----------------------------------
Whitney Honeycutt                           Thomas L. Becht

-----------------------------------         -----------------------------------
Frank Russ                                  William Kenneth Kesler

-----------------------------------         -----------------------------------
Michael M. Sherck                           Jeffrey S. Guillebeau

-----------------------------------         -----------------------------------
Janet Simpson                               Jeffrey E. Tedder

___________________________________         Allied Capital Corporation:
William Phillip Dunn, Jr.

                                            By:  _______________________________
___________________________________         Name _______________________________
Robert Carsten Tiede

  (Signature page to Amendment No. 1 to Membership Interest Purchase Agreement)<PAGE>

                                                                    EXHIBIT 10.4

                                                                  EXECUTION COPY

================================================================================

                             CONTRIBUTION AGREEMENT

                                 BY AND BETWEEN

                             SONOCO PRODUCTS COMPANY

                                       AND

                              AHLSTROM CORPORATION

                                      DATED

                                 APRIL 19, 2004

================================================================================

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                               Page
                                                                                                               ----
<S>      <C>                                                                                                   <C>
1.       DEFINITIONS.............................................................................................1
2.       FORMATION AND CONTRIBUTION..............................................................................2
         2.1      Formation of the Joint Venture.................................................................2
         2.2      Contribution and Ownership.....................................................................2
3.       CLOSING.................................................................................................3
         3.1      Date and Place of Closing......................................................................3
         3.2      Closing Actions................................................................................3
4.       POST CLOSING REVIEW.....................................................................................7
         4.1      Understanding of the Parties...................................................................7
         4.2      Delivery and Review of Closing Statements......................................................8
         4.3      Disputes......................................................................................11
         4.4      Schedule of Payments..........................................................................12
         4.5      Joint Venture Starting Balance Sheet..........................................................12
         4.6      Accounting Issue Dispute Resolution Procedures................................................12
5.       UNDERTAKINGS AND COVENANTS.............................................................................13
         5.1      Completion of Reorganization; Interim Period Adjustments......................................13
         5.2      Access to Records and Properties..............................................................14
         5.3      Consents and Approvals; Undertakings to Competition Authorities...............................14
         5.4      Operation of Business During the Interim Period...............................................15
         5.5      Exclusivity...................................................................................18
         5.6      Public Announcements..........................................................................19
         5.7      Subsequent Events.............................................................................19
         5.8      Further Assurances............................................................................19
         5.9      Release of Guarantees.........................................................................20
         5.10     Repayment of Intercompany Debt................................................................20
         5.11     Karhula Services..............................................................................21
         5.12     Use of Ahlstrom Name, Labels, Corporate Names, Etc............................................21
         5.13     Paperinkerays Oy..............................................................................22
         5.14     UK Pension....................................................................................22
6.       REPRESENTATIONS AND WARRANTIES OF SONOCO PRODUCTS......................................................23
         6.1      Organization; Power and Authority; Good Standing..............................................24
         6.2      Authorization, Execution, Enforceability and No Conflicts.....................................24
         6.3      Ownership of Sonoco Holding Companies and Sonoco Operating Companies..........................25
         6.4      Bankruptcy....................................................................................26
         6.5      Distributions.................................................................................26
         6.6      Employee Remuneration.........................................................................26
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>      <C>                                                                                                   <C>
         6.7      Financial Statements..........................................................................27
         6.8      Absence of Undisclosed Liabilities............................................................27
         6.9      Absence of Changes............................................................................28
         6.10     Outstanding Borrowings; Intercompany Debt.....................................................30
         6.11     Related Party Transactions....................................................................30
         6.12     Compliance with Laws..........................................................................31
         6.13     Taxes.........................................................................................32
         6.14     Real Property.................................................................................33
         6.15     Environmental and Safety......................................................................34
         6.16     Title to Assets...............................................................................35
         6.17     Insurance.....................................................................................36
         6.18     Intellectual Property.........................................................................36
         6.19     Leased Personal Property......................................................................37
         6.20     Certain Material Agreements...................................................................38
         6.21     Litigation; Disputes..........................................................................40
         6.22     Labor Relations...............................................................................41
         6.23     Investment Representations....................................................................42
         6.24     Subsidies.....................................................................................42
         6.25     UK Pension....................................................................................42
         6.26     Completeness of Contribution..................................................................42
7.       REPRESENTATIONS AND WARRANTIES OF AHLSTROM CORP........................................................43
         7.1      Organization; Power and Authority; Good Standing..............................................43
         7.2      Authorization, Execution, Enforceability and No Conflicts.....................................43
         7.3      Ownership of Ahlstrom Holding Companies and Ahlstrom Operating Companies......................45
         7.4      Bankruptcy....................................................................................46
         7.5      Distributions.................................................................................46
         7.6      Employee Remuneration.........................................................................46
         7.7      Financial Statements..........................................................................46
         7.8      Absence of Undisclosed Liabilities............................................................47
         7.9      Absence of Changes............................................................................47
         7.10     Outstanding Borrowings; Intercompany Debt.....................................................49
         7.11     Related Party Transactions....................................................................49
         7.12     Compliance with Laws..........................................................................50
         7.13     Taxes.........................................................................................51
         7.14     Real Property.................................................................................52
         7.15     Environmental and Safety......................................................................54
         7.16     Title to Assets...............................................................................55
         7.17     Insurance.....................................................................................55
         7.18     Intellectual Property.........................................................................55
         7.19     Leased Personal Property......................................................................57
         7.20     Certain Material Agreements...................................................................57
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>      <C>                                                                                                   <C>
         7.21     Litigation; Disputes..........................................................................59
         7.22     Labor Relations...............................................................................60
         7.23     Investment Representations....................................................................61
         7.24     Subsidies.....................................................................................61
         7.25     Completeness of Contribution..................................................................61
8.       CONDITIONS TO OBLIGATION OF SONOCO PRODUCTS............................................................61
         8.1      Representations and Warranties................................................................62
         8.2      Performance...................................................................................62
         8.3      Legal Proceedings.............................................................................62
         8.4      Change in Law.................................................................................62
         8.5      Absence of Ahlstrom Material Adverse Effect...................................................63
         8.6      Required Consents.............................................................................63
         8.7      Required Competition Filings..................................................................63
         8.8      Ahlstrom Reorganization.......................................................................63
         8.9      China Purchase................................................................................63
         8.10     Works Council Consultation....................................................................63
9.       CONDITIONS TO OBLIGATION OF AHLSTROM CORP..............................................................64
         9.1      Representations and Warranties................................................................64
         9.2      Performance...................................................................................64
         9.3      Legal Proceedings.............................................................................64
         9.4      Change in Law.................................................................................65
         9.5      Absence of Sonoco Material Adverse Effect.....................................................65
         9.6      Required Consents.............................................................................65
         9.7      Required Competition Filings..................................................................65
         9.8      Sonoco Reorganization.........................................................................65
         9.9      China Purchase................................................................................66
         9.10     Works Council Consultation....................................................................66
10.      SURVIVAL; INDEMNIFICATION; REMEDIES....................................................................66
         10.1     Survival of Representations and Warranties....................................................66
         10.2     Agreement of Sonoco Products to Indemnify.....................................................67
         10.3     Agreement of Ahlstrom Corp to Indemnify.......................................................68
         10.4     Indemnification Procedures....................................................................70
         10.5     Remedies Exclusive and Cumulative.............................................................72
11.      TERMINATION............................................................................................73
         11.1     Termination...................................................................................73
         11.2     Effect of Termination.........................................................................73
12.      GENERAL PROVISIONS.....................................................................................74
         12.1     Additional Actions and Documents..............................................................74
         12.2     No Brokers....................................................................................74
         12.3     Expenses......................................................................................74
         12.4     Assignment....................................................................................75
         12.5     Entire Agreement; Amendments..................................................................75
         12.6     Waiver........................................................................................76
</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>      <C>                                                                                                   <C>
         12.7     Governing Law; Service of Process.............................................................76
         12.8     Arbitration...................................................................................76
         12.9     Severability..................................................................................78
         12.10    Notices.......................................................................................78
         12.11    Interpretation; Headings......................................................................79
         12.12    Limitation on Benefits........................................................................80
         12.13    Successors and Assigns........................................................................80
</TABLE>

                                       iv

<PAGE>

                                LIST OF EXHIBITS
                            TO CONTRIBUTION AGREEMENT

-------------------------------------------------------------------------------

 EXHIBIT                                DESCRIPTION
-------------------------------------------------------------------------------
Exhibit A     Definitions
-------------------------------------------------------------------------------
Exhibit B     Organizational Chart of Sonoco and its Affiliates and Other
              Entities Engaged in the Sonoco Business
-------------------------------------------------------------------------------
Exhibit C     Organizational Chart of Ahlstrom and its Affiliates and Other
              Entities Engaged in the Ahlstrom Business
-------------------------------------------------------------------------------
Exhibit D     Form of Initial Articles of Association of the Joint Venture
-------------------------------------------------------------------------------
Exhibit E     Business Plan
-------------------------------------------------------------------------------
Exhibit F     Form of Minutes of Initial Joint Venture Shareholder's Meeting
-------------------------------------------------------------------------------
Exhibit G     Form of New Articles of Association of the Joint Venture
-------------------------------------------------------------------------------
Exhibit H     List of New Directors
-------------------------------------------------------------------------------
Exhibit I     Form of Shareholders' Agreement
-------------------------------------------------------------------------------
Exhibit J     Form of Joint Venture/Sonoco IP License Agreement
-------------------------------------------------------------------------------
Exhibit K     Form of SDI IP License Agreement
-------------------------------------------------------------------------------
Exhibit L     Form of Services Agreement
-------------------------------------------------------------------------------
Exhibit M     Form of Joint Venture Supply Agreement
-------------------------------------------------------------------------------
Exhibit N     Form of Representation Agreement
-------------------------------------------------------------------------------
Exhibit O     Form of VP Supply Agreement
-------------------------------------------------------------------------------
Exhibit P     Form of Opinion of Ahlstrom General Counsel
-------------------------------------------------------------------------------
Exhibit Q     Form of Minutes of Board of Directors' Meeting
-------------------------------------------------------------------------------
Exhibit R     Equalization Statement
-------------------------------------------------------------------------------
Exhibit S     Description of Sonoco Reorganization
-------------------------------------------------------------------------------
Exhibit T     Description of Ahlstrom Reorganization
-------------------------------------------------------------------------------
Exhibit U     Ahlstrom Accounting Principles
-------------------------------------------------------------------------------

                                       v

<PAGE>

                                LIST OF SCHEDULES
                            TO CONTRIBUTION AGREEMENT

-------------------------------------------------------------------------------

   SCHEDULE                         DESCRIPTION
-------------------------------------------------------------------------------
Schedule 5.3       List of Required Competition Filings
-------------------------------------------------------------------------------
Schedule 5.10      List of Intercompany Debt and Applicable Rate of Interest
-------------------------------------------------------------------------------
Schedule 5.14      UK Pension Plan Accounting Principles
-------------------------------------------------------------------------------
Schedule 6.1       Sonoco Charter Documents
-------------------------------------------------------------------------------
Schedule 6.2       Sonoco Consents
-------------------------------------------------------------------------------
Schedule 6.3       Sonoco Group Capitalization and Ownership Structure
-------------------------------------------------------------------------------
Schedule 6.6       Sonoco Employee Remuneration
-------------------------------------------------------------------------------
Schedule 6.7       Sonoco Financial Statements
-------------------------------------------------------------------------------
Schedule 6.8       Sonoco Undisclosed Liabilities
-------------------------------------------------------------------------------
Schedule 6.9       Sonoco Absence of Changes
-------------------------------------------------------------------------------
Schedule 6.10      Sonoco Outstanding Borrowings; Intercompany Debt
-------------------------------------------------------------------------------
Schedule 6.11      Sonoco Related Party Transactions
-------------------------------------------------------------------------------
Schedule 6.12      Sonoco Compliance with Laws
-------------------------------------------------------------------------------
Schedule 6.13      Sonoco Tax Consolidation Agreements
-------------------------------------------------------------------------------
Schedule 6.14      Sonoco Real Property
-------------------------------------------------------------------------------
Schedule 6.15      Sonoco Environmental and Safety
-------------------------------------------------------------------------------
Schedule 6.18      Sonoco Intellectual Property
-------------------------------------------------------------------------------
Schedule 6.19      Sonoco Leased Personal Property
-------------------------------------------------------------------------------
Schedule 6.20      Sonoco Material Agreement
-------------------------------------------------------------------------------
Schedule 6.21      Sonoco Litigation; Disputes
-------------------------------------------------------------------------------
Schedule 6.22      Sonoco Labor Relations
-------------------------------------------------------------------------------
Schedule 6.24      Sonoco Subsidies
-------------------------------------------------------------------------------
Schedule 7.1       Ahlstrom Charter Documents
-------------------------------------------------------------------------------
Schedule 7.2       Ahlstrom Consents
-------------------------------------------------------------------------------
Schedule 7.3       Ahlstrom Group Capitalization and Ownership Structure
-------------------------------------------------------------------------------
Schedule 7.6       Ahlstrom Employee Remuneration
-------------------------------------------------------------------------------
Schedule 7.7       Ahlstrom Financial Statements
-------------------------------------------------------------------------------
Schedule 7.8       Ahlstrom Undisclosed Liabilities
-------------------------------------------------------------------------------
Schedule 7.9       Ahlstrom Absence of Changes
-------------------------------------------------------------------------------
Schedule 7.10      Ahlstrom Outstanding Borrowings; Intercompany Debt
-------------------------------------------------------------------------------
Schedule 7.11      Ahlstrom Related Party Transactions
-------------------------------------------------------------------------------
Schedule 7.12      Ahlstrom Compliance with Laws
-------------------------------------------------------------------------------
Schedule 7.13      Ahlstrom Tax Consolidation Agreements
-------------------------------------------------------------------------------
Schedule 7.14      Ahlstrom Real Property
-------------------------------------------------------------------------------
Schedule 7.15      Ahlstrom Environmental and Safety
-------------------------------------------------------------------------------

                                       vi

<PAGE>

Schedule 7.18      Ahlstrom Intellectual Property
-------------------------------------------------------------------------------
Schedule 7.19      Ahlstrom Leased Personal Property
-------------------------------------------------------------------------------
Schedule 7.20      Ahlstrom Material Agreements
-------------------------------------------------------------------------------
Schedule 7.21      Ahlstrom Litigation; Disputes
-------------------------------------------------------------------------------
Schedule 7.22      Ahlstrom Labor Relations
-------------------------------------------------------------------------------
Schedule 7.24      Ahlstrom Subsidies
-------------------------------------------------------------------------------

                                      vii

<PAGE>

                             CONTRIBUTION AGREEMENT

         This CONTRIBUTION AGREEMENT (this "CONTRIBUTION AGREEMENT") is entered
into on April 19, 2004 by and between Sonoco Products Company, a company
incorporated under the laws of South Carolina, located at One North Second
Street, Hartsville, South Carolina, 29550, U.S.A. ("SONOCO PRODUCTS"), and
Ahlstrom Corporation, a company incorporated under the laws of Finland, with its
registered office at Etelaesplanadi 14, 00130, Helsinki, Finland ("AHLSTROM
CORP"). Each of Sonoco Products and Ahlstrom Corp is hereinafter referred to
individually as a "Party" and collectively as the "PARTIES."

                             RECITALS OF THE PARTIES

         A. Sonoco Products, through its Affiliates and other entities in which
it has an ownership interest as of the Closing included in the organizational
chart set forth on Exhibit B, is engaged in the paper core/tube and core board
business in Europe (the "SONOCO BUSINESS");

         B. Ahlstrom Corp, through its Affiliates and other entities in which it
has an ownership interest as of the Closing included in the organizational chart
set forth on Exhibit C is engaged in the paper core/tube and core board business
in Europe (the "AHLSTROM BUSINESS");

         C. The Parties desire to create a joint venture through the combination
of the Sonoco Business and the Ahlstrom Business (the "TRANSACTION") in a
holding company to be organized under the laws of Luxembourg (the "JOINT
VENTURE");

         D. This Contribution Agreement is being entered into by the Parties to
set forth the terms and conditions pursuant to which the Sonoco Business and the
Ahlstrom Business will be contributed to the Joint Venture in exchange for Joint
Venture shares; and

         E. Upon completion of the transactions contemplated by this
Contribution Agreement, Sonoco Products and Ahlstrom Corp will, directly or
indirectly, own 64.5% and 35.5%, respectively, of the Joint Venture shares.

         NOW, THEREFORE, the Parties hereby agree as follows:

1.       DEFINITIONS

         For all purposes of this Contribution Agreement, capitalized terms used
herein shall have the meanings ascribed to such terms in Exhibit A.

<PAGE>

2.       FORMATION AND CONTRIBUTION

         2.1      FORMATION OF THE JOINT VENTURE

                  (a) Prior to the Closing, Sonoco Products shall cause the
formation of the Joint Venture as a limited liability company (Societe a
Responsabilite Limitee) pursuant to the laws of Luxembourg under the corporate
name "Sonoco - JV S.a r.l.".

                  (b) The Joint Venture shall have an initial registered share
capital of EUR12,500, which Sonoco Products shall cause to be paid in full to
the Joint Venture in cash prior to the registration of the Joint Venture with
the Commercial Register of Luxembourg, Grand Duchy of Luxembourg.

                  (c) The initial articles of association of the Joint Venture
shall be executed in the form attached as Exhibit D.

                  (d) Sonoco Products undertakes to ensure through the Closing:
(i) that the Joint Venture will not carry out any activity, enter into any
Agreements or assume any Liabilities; and (ii) that none of the shares in the
Joint Venture are Transferred and no Encumbrance is created with respect to such
shares, except, in each of (i) and (ii), as may be required under the laws of
Luxembourg in connection with the Joint Venture's formation or as specifically
contemplated in this Contribution Agreement.

                  (e) The initial five-year strategic business plan of the Joint
Venture is attached as Exhibit E (the "BUSINESS PLAN").

         2.2      CONTRIBUTION AND OWNERSHIP

                  (a) Sonoco Contribution and Ownership. On the Closing, in
accordance with, and subject to, the provisions of this Contribution Agreement:
(i) Sonoco Products shall cause to be contributed, assigned, transferred and
conveyed to the Joint Venture by way of contribution in kind (Sacheinlage) the
Sonoco Contributed Shares, free and clear of all Encumbrances (other than the
Encumbrances listed on Schedule 6.3) and together with all rights which are on
the Closing Date, or may thereafter become, attached to them (including the
right to receive all undistributed profits, dividends and distributions), and
the Joint Venture shall accept the Sonoco Contributed Shares (the "SONOCO
CONTRIBUTION"); and (ii) the Joint Venture shall issue to Sonoco Luxco Class A
shares of the Joint Venture in a nominal amount of EUR 25 representing, together
with all shares previously owned by Sonoco Luxco, 64.5% of the issued and
outstanding shares, of all classes, of the Joint Venture as of the Closing Date
(the "SONOCO SHARES") and a share reserve account in the maximum amount possible
to be agreed further by the

                                       2
<PAGE>

Parties prior to the Closing Date that would not reasonably be expected to cause
any additional capital Tax Liability to any Party or any of their Affiliates.

                  (b) Ahlstrom Contribution and Ownership. On the Closing, in
accordance with, and subject to, the provisions of this Contribution Agreement:
(i) Ahlstrom Corp shall cause to be contributed, assigned, transferred and
conveyed to the Joint Venture by way of contribution in kind (Sacheinlage) the
Ahlstrom Contributed Shares, free and clear of all Encumbrances (other than the
Encumbrances listed on Schedule 7.3) and together with all rights which are on
the Closing Date, or may thereafter become, attached to them (including the
right to receive all undistributed profits, dividends and distributions), and
the Joint Venture shall accept the Ahlstrom Contributed Shares (the "AHLSTROM
CONTRIBUTION"); and (ii) the Joint Venture shall issue to Ahlstrom Holding Class
B shares of the Joint Venture in a nominal amount of EUR 25 representing 35.5%
of the issued and outstanding shares, of all classes, of the Joint Venture as of
the Closing Date (the "AHLSTROM SHARES") and a share reserve account in the
maximum amount possible to be agreed further by the Parties prior to the Closing
Date that would not reasonably be expected to cause any additional capital Tax
Liability to any Party or any of their Affiliates.

3.       CLOSING

         3.1      DATE AND PLACE OF CLOSING

                  The Closing of the Transaction (the "CLOSING") shall take
place at the offices of Hogan & Hartson Raue L.L.P., Potsdamer Platz 1, 10785
Berlin, Germany, on the last Business Day of the calendar month in which the
conditions precedent to the Closing set forth in Sections 8 and 9 have been
satisfied or waived by the Party for whose benefit the condition exists (to the
extent such conditions may be waived), with effect as of the last day of such
calendar month or such other date as is mutually agreed upon by the Parties (the
"CLOSING DATE").

         3.2      CLOSING ACTIONS

                  At the Closing, the Parties shall take, or cause their
relevant Affiliates to take, the following actions in the sequence of (a)
through (h) below:

                  (a) Joint Venture Shareholder's Meeting. The holding by Sonoco
Luxco of a shareholder's meeting of the Joint Venture before a Luxembourg notary
resolving as substantially set forth in the draft minutes attached as Exhibit F,
including that: (i) the stated capital of the Joint Venture shall be increased
by the Sonoco Contribution and the Ahlstrom Contribution; (ii) new shares shall
be created and issued to Sonoco Luxco and Ahlstrom Holding, respectively; (iii)
the initial articles of association of the Joint Venture, attached as Exhibit D,
shall be amended

                                       3
<PAGE>

by adopting new articles of association substantially in the form of Exhibit G;
(iv) the new directors listed in Exhibit H shall be appointed; and (v) the
accounting rules and procedures with respect to the application of International
Accounting Standards to be used by the Joint Venture shall be adopted.

                  (b) Share Transfer Agreements and Deeds.

                           (i)      The authorization and execution by the Joint
                                    Venture and Sonoco Luxco of share transfer
                                    agreements, notarial deeds or comparable
                                    documents, as applicable, with respect to
                                    the transfer to the Joint Venture of the
                                    Sonoco Contributed Shares in the form
                                    customary for the jurisdiction of
                                    organization of the Sonoco Group company
                                    represented by such Sonoco Contributed
                                    Shares and reasonably acceptable to Ahlstrom
                                    Corp; and

                           (ii)     The authorization and execution by the Joint
                                    Venture, Ahlstrom Corp and Ahlstrom Holding,
                                    of a notarial deed with respect to the
                                    transfer to the Joint Venture of the
                                    Ahlstrom Contributed Shares in the form
                                    customary in Germany and reasonably
                                    acceptable to Sonoco Products.

                  (c) Registration of Sonoco Shares and Ahlstrom Shares. The
registration by the Joint Venture of the newly created and issued Sonoco Shares
and Ahlstrom Shares in the name of Sonoco Luxco and Ahlstrom Holding,
respectively in the stock book of the Joint Venture;

                  (d) Resignation of Initial Joint Venture Directors. The
delivery by Sonoco Products or its Affiliate of the resignation letters of all
directors of the Joint Venture;

                  (e) Related Documents.

                           (i)      The authorization and execution by Sonoco
                                    Luxco and Sonoco Products, on the one hand,
                                    and Ahlstrom Holding and Ahlstrom Corp, on
                                    the other hand, of the Shareholders'
                                    Agreement substantially in the form of
                                    Exhibit I (the "SHAREHOLDERS' AGREEMENT");

                           (ii)     The authorization and execution by Sonoco
                                    Products, as licensee, and the Joint
                                    Venture, as licensor, of an IP License
                                    Agreement substantially in the form of
                                    Exhibit J (the "JOINT VENTURE/SONOCO IP
                                    LICENSE AGREEMENT");

                                       4

<PAGE>

                           (iii)    The delivery of an authorized and executed
                                    IP License Agreement by and between Sonoco
                                    Development Inc., as licensor, and Sonoco
                                    Newco Gibraltar, as licensee, substantially
                                    in the form of Exhibit K (the "SDI IP
                                    LICENSE AGREEMENT"), together with documents
                                    in customary form evidencing that the SDI IP
                                    License Agreement has been (1) assigned by
                                    Sonoco Newco Gibraltar to Sonoco Luxco and
                                    (2) contributed by Sonoco Luxco to Sonoco
                                    Newco Swiss;

                           (iv)     The authorization and execution by each of
                                    Sonoco Products or its affiliate and
                                    Ahlstrom Corp and its affiliate, as the case
                                    may be, and the Joint Venture, respectively,
                                    of Services Agreements substantially in the
                                    form of, and for the services described on
                                    the exhibits to such Services Agreements set
                                    forth on, Exhibit L (the "SERVICES
                                    AGREEMENTS");

                           (v)      The authorization and execution by the Joint
                                    Venture or its Affiliate and Ahlstrom Corp
                                    or its Affiliate of a Supply Agreement
                                    substantially in the form of Exhibit M (the
                                    "JOINT VENTURE SUPPLY AGREEMENT");

                           (vi)     The authorization and execution by the Joint
                                    Venture or its Affiliate and Ahlstrom Corp
                                    of a Representation Agreement, pursuant to
                                    which Ahlstrom Corp shall exercise its
                                    rights as a shareholder in Paperinkerays Oy
                                    in the interest and at the direction of the
                                    Joint Venture, substantially in the form of
                                    Exhibit N (the "REPRESENTATION AGREEMENT");
                                    and

                           (vii)    The authorization and execution by each of
                                    the Joint Venture and Ahlstrom Corp of a
                                    Supply Agreement substantially in the form
                                    of Exhibit O (the "VP SUPPLY AGREEMENT").

                  (f) Charter Documents.

                           (i)      The delivery by Ahlstrom Corp of copies of
                                    the following supporting documents (in form
                                    and substance reasonably satisfactory to
                                    Sonoco Products):

                                    (A)      trade register extract or
                                             comparable document in effect on
                                             the Closing Date from an
                                             appropriate Governmental Authority,
                                             dated as of a date

                                       5

<PAGE>

                                             reasonably close in time to the
                                             Closing Date, of each of the
                                             Ahlstrom Holding Companies and the
                                             Ahlstrom Operating Companies as in
                                             effect on the Closing Date, if the
                                             trade register extract or
                                             comparable document for any such
                                             entity set forth on Schedule 7.1 is
                                             no longer true, correct and
                                             complete as of the Closing Date;
                                             and

                                    (B)      (i) a true, correct and complete
                                             copy of each of the articles of
                                             association and by-laws (or
                                             comparable documents) of each of
                                             the Ahlstrom Holding Companies and
                                             the Ahlstrom Operating Companies as
                                             in effect on the Closing Date, if
                                             the articles of association or
                                             by-laws (or comparable documents)
                                             for any such entity set forth on
                                             Schedule 7.1 are no longer true,
                                             correct and complete as of the
                                             Closing Date; and (ii) (1) an
                                             opinion of the general counsel of
                                             Ahlstrom Corp as to the
                                             authorization, execution and
                                             performance of the Contribution
                                             Agreement and the Related Documents
                                             by Ahlstrom Corp in the form of
                                             Exhibit P, and (2) a true, correct
                                             and complete copy of all
                                             resolutions adopted by the board of
                                             managers or board of directors (and
                                             any committees thereof), and the
                                             unitholders or stockholders, of
                                             each of the Ahlstrom Holding
                                             Companies and the Ahlstrom
                                             Operating Companies (as applicable)
                                             authorizing the execution and
                                             performance of this Contribution
                                             Agreement and the Related
                                             Documents.

                           (ii)     The delivery by Sonoco Products of copies of
                                    the following supporting documents (in form
                                    and substance reasonably satisfactory to
                                    Ahlstrom Corp):

                                    (A)      trade register extract or
                                             comparable document in effect on
                                             the Closing Date from an
                                             appropriate Governmental Authority,
                                             dated as of a date reasonably close
                                             in time to the Closing Date, of
                                             each of the Sonoco Holding
                                             Companies and the Sonoco Operating
                                             Companies as in effect on the
                                             Closing Date, if the trade register
                                             extract or comparable document for
                                             any such entity set forth on
                                             Schedule 6.1 is no longer true,
                                             correct and complete as of the
                                             Closing Date; and

                                       6

<PAGE>

                                    (B)      (i) a true, correct and complete
                                             copy of each of the articles of
                                             association and by-laws (or
                                             comparable documents) of each of
                                             the Sonoco Holding Companies and
                                             the Sonoco Operating Companies as
                                             in effect on the Closing Date, if
                                             the articles of association or
                                             by-laws (or comparable documents)
                                             for any such entity set forth on
                                             Schedule 6.1 are no longer
                                             accurate; and (ii) a true, correct
                                             and complete copy of all
                                             resolutions adopted by the board of
                                             managers or board of directors (and
                                             any committees thereof), and the
                                             unitholders or stockholders, of
                                             each such entity (as applicable)
                                             authorizing the execution and
                                             performance of this Contribution
                                             Agreement and the Related
                                             Documents.

                  (g) Board of Directors' Meeting. The holding of a board of
directors' meeting of the Joint Venture resolving substantially as set forth in
the draft minutes attached as Exhibit Q including that: (i) the appointment of
James A. Harrell, III, as chief executive officer shall be approved; (ii) the
Business Plan shall be adopted; and (iii) the annual budget of the Joint Venture
shall be adopted.

4.       POST CLOSING REVIEW

         4.1      UNDERSTANDING OF THE PARTIES

                  The Parties agree that:

                  (a) each of the Sonoco Reorganization and the Sonoco
Contribution as well as the Ahlstrom Reorganization and the Ahlstrom
Contribution shall be carried out with economic effect as of December 31, 2003;

                  (b) the equalization statement attached as Exhibit R (the
"EQUALIZATION STATEMENT") sets forth:

                          (i)      the pro forma Sonoco Financial Statements
                                   described in Section 6.7(a)(ii) and attached
                                   as Schedule 6.7 and the pro forma Ahlstrom
                                   Financial Statement described in Section
                                   7.7(a)(ii) and attached as Schedule 7.7;

                          (ii)     the aggregate value of the Net Cash/Interest
                                   Bearing Debt of the Sonoco Holding Companies
                                   and Sonoco Operating Companies as of December
                                   31, 2003, calculated on a consolidated basis,
                                   which value is intended to reflect the

                                       7

<PAGE>

                                   results of the Sonoco Reorganization as if
                                   such reorganization was completed as of
                                   December 31, 2003.

                          (iii)    the aggregate value of the Net Cash/Interest
                                   Bearing Debt of the Ahlstrom Holding
                                   Companies and Ahlstrom Operating Companies as
                                   of December 31, 2003, calculated on a
                                   consolidated basis, which value is intended
                                   to reflect the results of the Ahlstrom
                                   Reorganization as if such reorganization was
                                   completed as of December 31, 2003; and

                          (iv)     the agreed Sonoco Equalization Amount and the
                                   Ahlstrom Equalization Amount calculated in a
                                   manner more fully described in the
                                   Equalization Statement and to be settled in
                                   accordance with Sections 5.1(c) and 5.1.(d),
                                   respectively;

                  (c) there shall be no transactions of the Sonoco Holding
Companies, Sonoco Operating Companies and the Sonoco Predecessor Companies with
other Sonoco entities occurring during the period from December 31, 2003 until
the Closing Date (the "REFERENCE PERIOD") other than transactions contemplated
by and occurring in connection with the Sonoco Reorganization or necessary for
the settlement of the Equalization Amount, contemplated by the Equalization
Statement or Section 6.5, or transactions occurring in the Ordinary Course of
Business of the Sonoco Business (the "SONOCO PROHIBITED TRANSACTIONS");

                  (d) there shall be no transactions of the Ahlstrom
Holding Companies and Ahlstrom Operating Companies with other Ahlstrom entities
occurring during the Reference Period, other than transactions contemplated by
and occurring in connection with the Ahlstrom Reorganization or necessary for
the settlement of the Equalization Amount, contemplated by the Equalization
Statement, or transactions occurring in the Ordinary Course of Business of the
Ahlstrom Business (the "AHLSTROM PROHIBITED TRANSACTIONS"); and

                  (e) all transactions contemplated under this Section 4.1
will be carried out with economic effect as if they had been carried out on
December 31, 2003, applying an interest rate of 3 % per annum as applicable.

         4.2      DELIVERY AND REVIEW OF CLOSING STATEMENTS

                  (a) As soon as practicable after the Closing Date (but in
no case later than 45 days after the Closing Date):

                           (i)      Sonoco Products shall cause to be prepared
                                    and delivered to Ahlstrom Corp:

                                       8

<PAGE>

                                    (A)      a statement identifying all
                                             deviations from the Sonoco
                                             Reorganization as contemplated by
                                             this Agreement and the Equalization
                                             Statement (the "SONOCO
                                             REORGANIZATION DEVIATIONS");

                                    (B)      a statement describing the
                                             difference, if any, between the
                                             actual aggregate value of the
                                             consolidated Net Cash/Interest
                                             Bearing Debt of the Sonoco Holding
                                             Companies and Sonoco Operating
                                             Companies as of December 31, 2003,
                                             which value shall reflect the
                                             results of the Sonoco
                                             Reorganization as if such
                                             reorganization was completed as of
                                             December 31, 2003, and the
                                             aggregate value of the consolidated
                                             Net Cash/Interest Bearing Debt of
                                             each of the Sonoco Holding
                                             Companies and Sonoco Operating
                                             Companies as set forth in the
                                             Equalization Statement; and

                                    (C)      a statement identifying all Sonoco
                                             Prohibited Transactions occurring
                                             during the Reference Period, if
                                             any;

                                    each of (A), (B) and (C) prepared in
                                    accordance with U.S. GAAP and the principles
                                    upon which the Sonoco Financial Statements
                                    were prepared (collectively, the "SONOCO
                                    CLOSING STATEMENTS"); and identifying
                                    separately the adjustments that have been
                                    carried out to calculate the economic
                                    benefit as of December 31, 2003; and

                           (ii)     Ahlstrom Corp shall cause to be prepared and
                                    delivered to Sonoco Products:

                                    (A)      a statement identifying all
                                             deviations from the Ahlstrom
                                             Reorganization as contemplated by
                                             this Agreement and the Equalization
                                             Statement (the "AHLSTROM
                                             REORGANIZATION DEVIATIONS");

                                    (B)      a statement describing the
                                             difference, if any, between the
                                             actual aggregate value of the
                                             consolidated Net Cash/Interest
                                             Bearing Debt of the Ahlstrom
                                             Holding Companies and Ahlstrom
                                             Operating Companies as of December
                                             31, 2003,

                                       9

<PAGE>

                                             which value shall reflect the
                                             results of the Ahlstrom
                                             Reorganization as if such
                                             reorganization was completed as of
                                             December 31, 2003, and the
                                             aggregate value of the consolidated
                                             Net Cash/Interest Bearing Debt of
                                             each of the Ahlstrom Holding
                                             Companies and the Ahlstrom
                                             Operating Companies as set forth on
                                             the Equalization Statement; and

                                    (C)      a statement identifying all
                                             Ahlstrom Prohibited Transactions
                                             occurring during the Reference
                                             Period, if any;

                                    each of (A), (B) and (C) prepared in
                                    accordance with Ahlstrom Accounting
                                    Principles and the principles upon which the
                                    Ahlstrom Financial Statements were prepared
                                    (the "AHLSTROM CLOSING STATEMENTS" and
                                    together with the Sonoco Closing Statement,
                                    the "CLOSING STATEMENTS"), and identifying
                                    separately the adjustments that have been
                                    carried out to calculate the economic
                                    benefit as of December 31, 2003.

                  (b) Each of Sonoco Products and its auditors and Ahlstrom
Corp and its auditors shall conduct a review of the Ahlstrom Closing Statements
and the Sonoco Closing Statements, respectively, and shall use good faith
efforts to agree in writing upon: (i) the occurrence, and the net financial
statement impact, of each of the Sonoco Reorganization Deviations and the
Ahlstrom Reorganization Deviations, if any, (ii) the difference, if any, in the
aggregate amount of the consolidated Net Cash/Interest Bearing Debt as described
in the Sonoco Closing Statements and the Ahlstrom Closing Statements,
respectively, as against the amount of such item set forth on the Equalization
Statement, (iii) the occurrence, and the net financial statement impact, of each
of the Sonoco Prohibited Transactions and the Ahlstrom Prohibited Transactions,
if any, and (iv) the payments, if any, required to be made by Sonoco Products or
Ahlstrom Corp, as the case may be, to, or Distributions to Sonoco Products or
Ahlstrom Corp, as the case may be, from, the Joint Venture in order to (A)
eliminate such net financial statement impact of each of the Sonoco
Reorganization Deviations and the Ahlstrom Reorganization Deviations, (B)
correct for any such differences in Net Cash/Interest Bearing Debt and (C)
eliminate such net financial statement impact of each of the Sonoco Prohibited
Transactions and the Ahlstrom Prohibited Transactions (such written agreement,
the "SETTLEMENT AGREEMENT"). For the avoidance of doubt, and unless otherwise
agreed by the Parties, (x) if the aggregate amount of the consolidated Net
Cash/Interest Bearing Debt described on the Sonoco Closing Statement or the
Ahlstrom Closing

                                       10

<PAGE>

Statement, as the case may be, is greater than the aggregate amount of the
consolidated Net Cash/Interest Bearing Debt described on the Equalization
Statement, then the Joint Venture shall be obligated to make a Distribution to
Sonoco Products or Ahlstrom Corp, as the case may be, in an amount equal to the
amount of such difference and (y) if the aggregate amount of the consolidated
Net Cash/Interest Bearing Debt described on the Sonoco Closing Statement or the
Ahlstrom Closing Statement, as the case may be, is less than the aggregate
amount of the consolidated Net Cash/Interest Bearing Debt described on the
Equalization Statement, then Sonoco Products or Ahlstrom Corp, as the case may
be, shall be obligated to make a payment to the Joint Venture in an amount equal
to the amount of such difference. Any such payments required to be made by
Sonoco Products or Ahlstrom Corp, as the case may be, to the Joint Venture,
shall be made (i) as a contribution to the free reserves of the Joint Venture,
and not against issuance of shares of the Joint Venture, and include an amount
equal to the capital contribution duty or any other taxes to be paid by the
Joint Venture under Luxembourg law on such contribution to the free reserves or
(ii) as a cancellation of Intercompany Debt. For the avoidance of doubt, any
such payment shall not affect the other Partner's respective ownership
percentage in the Joint Venture.

                  (c) Each of Sonoco Products and Ahlstrom Corp shall
provide the other Party with access, during normal business hours, to its
working papers, documents, financial information and other information as such
other Party may reasonably request in connection with such review and
examination of the Closing Statements.

         4.3      DISPUTES

                  Either Party may object to the other Party's Closing Statement
within ten Business Days of its receipt of such Closing Statement (the
"EXAMINATION PERIOD") by providing to the other Party a written notice (an
"OBJECTION NOTICE") describing in reasonable detail such Party's objections to
any item or valuation of such Closing Statement. Either Party's failure to
deliver an Objection Notice to the other Party by the end of the Examination
Period shall constitute such Party's binding acceptance of such Closing
Statement and all matters identified therein. If the parties are unable to
resolve the objection described in an Objection Notice within 20 Business Days
after an Objection Notice is delivered to a Party, then the matter shall be
resolved pursuant to the accounting issue dispute resolution procedures set
forth in Section 4.6.

         4.4      SCHEDULE OF PAYMENTS

                  Any payments required to be made pursuant to this Section 4
shall be made as follows: (i) if no Party shall have delivered an Objection
Notice to the other Party in accordance with the provisions of Section 4.3, then
the payments, if any,

                                       11

<PAGE>

required to be made pursuant to the Settlement Agreement shall be made no later
than five Business Days after the execution of the Settlement Agreement; and
(ii) if a Party shall have delivered an Objection Notice to the other Party in
accordance with the provisions of Section 4.3, then payments of any amounts set
forth in the Accountant's Determination shall be made within five Business Days
of the delivery of the Accountant's Determination as provided in Section 4.6.

         4.5      JOINT VENTURE STARTING BALANCE SHEET

                  Within 90 days after the Closing Date, the Joint Venture
auditors shall prepare and deliver to each Party and the Joint Venture a
statement representing the unaudited consolidated balance sheet (the "JOINT
VENTURE STARTING BALANCE SHEET") of the Joint Venture and the Sonoco Holding
Companies and the Sonoco Operating Companies and the Ahlstrom Holding Companies
and the Ahlstrom Operating Companies as of the Closing Date, which statement
shall be prepared in accordance with International Accounting Standards, which
will exclude footnotes and disclosures otherwise required, but including
supplementary information as needed by the Parties, as applied according to the
accounting rules and principles approved at the Second Joint Venture
Shareholders' Meeting described in Section 3.2(a). The Joint Venture Starting
Balance Sheet shall be the initial financial statement of the Joint Venture. The
Joint Venture auditors shall also prepare and deliver to each Party and the
Joint Venture financial statements prepared in accordance with U.S. GAAP which
will exclude footnotes and disclosures otherwise required, but including
supplementary information as needed by the Parties, together with a
reconciliation between the International Accounting Standards and U.S. GAAP
financial statements.

         4.6      ACCOUNTING ISSUE DISPUTE RESOLUTION PROCEDURES

                  At such time as a matter becomes subject to resolution
pursuant to the accounting issue dispute resolution procedures set forth in this
Section 4.6, the Parties shall select an independent accounting firm of
recognized international standing which shall resolve the issue as to which
there is a dispute as promptly as possible. The accounting firm selected shall
not at the time of selection be performing services for either Party or their
Affiliates. A decision by the independent accounting firm as to the resolution
of such issue, and the determination of the amount of any payments to be made as
a result thereof, shall be (absent an agreement of the Parties regarding an
error that is manifest) conclusive and binding upon the Parties for purposes of
this Agreement (the "ACCOUNTANT'S DETERMINATION"). The Accountant's
Determination shall: (i) be in writing; (ii) be made in accordance with
principles upon which the relevant financial statement of the Parties or the
Joint Venture were made; (iii) be made after having given each Party the
opportunity to state its case in writing; (iv) set forth the basis upon which it
is made; and (v) be incontestable by either Party and each of their

                                       12

<PAGE>

respective Affiliates and successors and not subject to collateral attack for
any such reason. All fees and costs payable to the independent accounting firm
referred to in this Section shall be borne by the Parties equally.

5.       UNDERTAKINGS AND COVENANTS

         5.1      COMPLETION OF REORGANIZATION; INTERIM PERIOD ADJUSTMENTS

                  (a) Prior to the Closing, Sonoco Products shall duly and
validly complete, or cause to be duly and validly completed, all transactions,
filings, registrations and other steps or actions contemplated by the
reorganization of the Sonoco Business as described in Exhibit S (the "SONOCO
REORGANIZATION"). Notwithstanding anything to the contrary in Exhibit S, and
without prejudice to Section 10.2(d), Sonoco Products shall cause the Sonoco
Reorganization to be carried out in a manner that neither any Sonoco Holding
Company nor any Sonoco Operating Company owns or has any Liability for any
Sonoco Excluded Asset or Liability.

                  (b) Prior to the Closing, Ahlstrom Corp shall duly and validly
complete, or cause to be duly and validly completed, all transactions, filings,
registrations and other steps or actions contemplated by the reorganization of
the Ahlstrom Business as described in Exhibit T (the "AHLSTROM REORGANIZATION").
Notwithstanding anything to the contrary in Exhibit T, and without prejudice to
Section 10.3(d), Ahlstrom Corp shall cause the Ahlstrom Reorganization to be
carried out in a manner that neither any Ahlstrom Holding Company nor any
Ahlstrom Operating Company owns or has any Liability for any Ahlstrom Excluded
Asset or Liability.

                  (c) Prior to Closing, Sonoco Products shall cause to be
Distributed, from the Sonoco Business cash in the amount of EUR 4,400,000, plus
interest thereon at the rate of 3% per annum from December 31, 2003 to and
including the date of distribution (such amount, including interest, the "SONOCO
EQUALIZATION AMOUNT"). Alternatively, in connection with the Distribution of the
Sonoco Equalization Amount, Sonoco may, at its election, cause the Sonoco
Business to issue Indebtedness to a third Person in an amount equal to the
Sonoco Equalization Amount, the proceeds of which shall be Distributed from the
Sonoco Business.

                  (d) Prior to Closing, Ahlstrom Corp shall (i) contribute, or
cause to be contributed, to the Ahlstrom Business cash in the amount of EUR
4,400,000, plus interest thereon at the rate of 3% per annum from December 31,
2003 to and including the date of contribution (such amount, including interest,
the "AHLSTROM EQUALIZATION Amount"). Alternatively, in lieu of the contribution
of the Ahlstrom Equalization Amount, Ahlstrom may, at its election, cancel, or
caused to be

                                       13

<PAGE>

cancelled, Outstanding Borrowings of the Ahlstrom Business in an amount equal to
the Ahlstrom Equalization Amount.

         5.2      ACCESS TO RECORDS AND PROPERTIES

                  (a) Subject to the applicable confidentiality requirements and
Laws, from and after the date hereof until the earlier of the Closing or the
termination of this Agreement in accordance with its terms (the "INTERIM
Period"), Sonoco Products shall provide, or cause to be provided, to Ahlstrom
Corp and its Affiliates, and each of their respective authorized
representatives, including, without limitation, accountants, consultants and
attorneys (collectively, "REPRESENTATIVES"), the information they might
reasonably request concerning the Interim Period business and financial results
or reasonably related to its integration planning of the Sonoco Business and the
Ahlstrom Business, together with monthly financial results of the Sonoco
Business.

                  (b) Subject to applicable confidentiality requirements and
Laws, during the Interim Period, Ahlstrom Corp shall provide, or cause to be
provided, to Sonoco Products and its Affiliates, and each of their respective
Representatives, the information they might reasonably request related to the
monthly Interim Period business and financial results or reasonably continue its
integration planning of the Sonoco Business and the Ahlstrom Business, together
with monthly financial results of the Ahlstrom Business.

                  (c) Each Party agrees: that the information provided pursuant
to this Section 5.2 shall not affect or otherwise diminish or obviate in any
respect any of the representations and warranties or the indemnification rights
of the other Party contained in this Contribution Agreement.

         5.3      CONSENTS AND APPROVALS; UNDERTAKINGS TO COMPETITION
AUTHORITIES

                  (a) Each Party shall take all commercially reasonable measures
during the Interim Period to secure, or cause to be secured, such consents,
authorizations and approvals of any Governmental Authority, and of any other
Person, as may be necessary or advisable in order for such Party to carry out
the transactions contemplated by this Contribution Agreement and to perform all
of its other obligations hereunder, including, without limitation, in connection
with the Sonoco Reorganization and the Ahlstrom Reorganization, and obtaining
the Required Consents; and

                  (b) Each of Sonoco Products and Ahlstrom Corp shall, and shall
cause the other Controlled members of the Sonoco Group and the Ahlstrom Group,
respectively, during the Interim Period to cooperate in the filing of all forms,
notifications, reports and information, and conduct of Proceedings, if any,
required

                                       14

<PAGE>

or reasonably deemed advisable pursuant to Laws or Orders of any Governmental
Authority in connection with the transactions contemplated by this Contribution
Agreement, including, without limitation, the competition filings listed on
Schedule 5.3 (the "REQUIRED COMPETITION FILINGS").

                  (c) In the event that a competent Governmental Authority in
charge of a Required Competition Filing raises objections to the Transaction,
the Parties undertake to use good faith best efforts to agree on appropriate
measures to overcome these objections, it being understood: (i) that any such
measure to be agreed shall not affect this Contribution Agreement (including the
valuation of the Sonoco Business and the Ahlstrom Business); (ii) that the
economic burden or benefit associated with such measures shall be assumed by or
credited to the Joint Venture; and (iii) that the Parties shall not be obligated
to agree on any measure that would (A) have a material adverse effect on Sonoco
Products or Ahlstrom Corp as the case may be, or any of their respective
Affiliates or Assets not contributed to the Joint Venture or its subsidiaries as
part of the Transaction or (B) amount to a Sonoco Material Adverse Effect or an
Ahlstrom Material Adverse Effect.

         5.4      OPERATION OF BUSINESS DURING THE INTERIM PERIOD

                  Except as expressly contemplated by this Contribution
Agreement (including, without limitation, as contemplated by the Sonoco
Reorganization or the Ahlstrom Reorganization, respectively), during the Interim
Period, each of Sonoco Products and Ahlstrom Corp shall cause each Sonoco
Holding Company and Controlled Sonoco Operating Company and each Ahlstrom
Holding Company and Controlled Ahlstrom Operating Company, respectively, to:

                  (a) (i) preserve the Sonoco Business and the Ahlstrom Business
as reflected on the Sonoco Financial Statements and the Ahlstrom Financial
Statements, respectively, and the organizations and relationships with
consultants, employees and third parties, consistent with the Ordinary Course of
Business; and (ii) maintain the Assets of the Sonoco Business and the Ahlstrom
Business, respectively, in customary repair and condition;

                  (b) conduct the Sonoco Business and the Ahlstrom Business,
respectively, only in the Ordinary Course of Business, and, in addition, not to:

                           (i)      enter into any material transaction or
                                    Agreement, or cause any event or condition,
                                    which, individually or in the aggregate,
                                    could reasonably be expected to have a
                                    Sonoco Material Adverse Effect or an
                                    Ahlstrom Material Adverse Effect, as the
                                    case may be;

                           (ii)     commit any act or omit to do any act, or
                                    engage in any activity or transaction or
                                    incur any Liability (by conduct

                                       15

<PAGE>

                                    or otherwise) or cause any damage,
                                    destruction or Loss, whether or not covered
                                    by insurance, which, individually or in the
                                    aggregate, could reasonably be expected to
                                    have a Sonoco Material Adverse Effect or an
                                    Ahlstrom Material Adverse Effect, as the
                                    case may be;

                           (iii)    issue any shares or ownership interests, or
                                    any options, warrants or other rights to
                                    subscribe for or purchase any of its shares
                                    or ownership interests, or any securities
                                    convertible into or exchangeable for its
                                    shares or ownership interests;

                           (iv)     declare, pay or set aside any Distribution
                                    (whether outstanding or issuable upon the
                                    conversion, exchange or exercise of
                                    outstanding shares or ownership interests),
                                    or directly or indirectly redeem, purchase
                                    or otherwise acquire any of its shares or
                                    ownership interests;

                           (v)      effect a split, reclassification or other
                                    change in or of any of its shares or
                                    ownership interests;

                           (vi)     amend its Charter Documents;

                           (vii)    grant any increase in, or prepayment of, the
                                    compensation payable, or to become payable,
                                    to its directors, officers, managing
                                    directors, managers, employees or agents, or
                                    enter into any bonus, insurance, pension or
                                    other benefit plan, payment or arrangement
                                    for or with any of such directors, officers,
                                    managing directors, managers, employees or
                                    agents, other than normal salary increases
                                    in the Ordinary Course of Business;

                           (viii)   make any lay-offs with respect to a
                                    significant part of the workforce;

                           (ix)     incur any Indebtedness, including
                                    Intercompany Debt (other than Indebtedness
                                    incurred in the Ordinary Course of Business
                                    on reasonable arms length terms), or
                                    directly or indirectly provide a Guarantee,
                                    or agree to provide a Guarantee, of
                                    Indebtedness of any other Person;

                           (x)      cancel, or make any material change to, any
                                    Indebtedness owing to it from any Person or
                                    any Claims which it may possess, or waive or
                                    release any material rights (other than in
                                    the Ordinary Course of Business);

                                       16

<PAGE>

                           (xi)     place, or allow to be placed, an Encumbrance
                                    (other than a Permitted Encumbrance) on any
                                    of its Assets;

                           (xii)    make any change in any method of accounting
                                    or accounting practice or policy except as
                                    required by U.S. GAAP, in the case of the
                                    Sonoco Group, and Ahlstrom Accounting
                                    Principles, in the case of the Ahlstrom
                                    Group, including, without limitation, any
                                    change in its policies with respect to the
                                    payment of accounts payable or other current
                                    Liabilities or the collection of accounts
                                    receivable, including, without limitation,
                                    any acceleration or deferral of the payment
                                    or collection thereof, as applicable;

                           (xiii)   Transfer any Intellectual Property (other
                                    than in the Ordinary Course of Business);

                           (xiv)    Transfer any material portion of its Assets,
                                    or scrap any material portion of its Assets
                                    as obsolete, in each case except in the
                                    Ordinary Course of Business and for fair
                                    value;

                           (xv)     materially change the general manner in
                                    which it markets and sells its products or
                                    services;

                           (xvi)    make any commitments for capital
                                    expenditures in excess of EUR1,000,000 per
                                    occurrence or EUR5,000,000 in the aggregate;

                           (xvii)   violate any material Law or material Order;

                           (xviii)  make any loan or advance to any of its
                                    members, stockholders or other equity
                                    holders, or, officers, directors, managing
                                    directors, managers or to any other Person;
                                    or

                           (xix)    commit any act or omit to do any act which
                                    could reasonably be expected to result in
                                    the untruth, inaccuracy or breach of any
                                    representation or warranty contained in
                                    Sections 6 or 7;

                  (c) keep proper books of record and account in which true and
complete entries will be made of all transactions in accordance with applicable
accounting methods Applied on a Consistent Basis; and

                  (d) subject to the requirements of applicable Law, provide the
other Party on a regular and ongoing basis an update with respect to the Sonoco
Business

                                       17

<PAGE>

and the Ahlstrom Business, as the case may be, including, without limitation,
any significant or extraordinary developments relating to the Sonoco Business or
the Ahlstrom Business, as the case may be.

         5.5      EXCLUSIVITY

                  (a) During the Interim Period, except as may be required by
applicable securities Laws, or the rules or requirements of any relevant stock
exchange or other Governmental Authority, without the prior written consent of
the other Party, no Party shall, nor shall it through any officer, director,
managing director, manager, employee, Representative, agent or direct or
indirect stockholder or subsidiary, directly or indirectly, take, or permit the
taking of, any action to: (i) encourage, initiate or solicit the submission of
any proposal that constitutes an Alternative Transaction; (ii) enter into any
Agreement with respect to or accept any Alternative Transaction; (iii)
encourage, initiate or solicit (including by way of furnishing information) the
making of any proposal that constitutes, or may reasonably be expected to lead
to, an Alternative Transaction; (iv) furnish to any Person other than the other
Party any information relating to the Sonoco Business or the Ahlstrom Business,
as the case may be; (v) Transfer any stock or other equity interests in any
member of the Sonoco Group or the Ahlstrom Group, as the case may be (except as
contemplated by this Contribution Agreement); or (vi) enter into negotiations
with respect to any of the foregoing.

                  (b) In addition to the obligations of the Parties set forth in
paragraph (a) of this Section 5.5, each Party shall immediately advise the other
Party orally and in writing of any request for information or of any proposal or
any inquiry regarding any Alternative Transaction, the material terms and
conditions of such request, proposal or inquiry and the identity of the Person
making such request, proposal or inquiry. Each Party will keep the other Party
fully informed of the status and details (including amendments or proposed
amendments) of any such request, proposal or inquiry.

         5.6      PUBLIC ANNOUNCEMENTS

                  Upon execution of this Contribution Agreement, the Parties
shall issue an agreed press release announcing the transactions contemplated by
this Contribution Agreement and the Related Documents. Neither Party shall issue
or approve, or cause or permit to be issued or approved, any additional news
release or other public announcement concerning the transactions contemplated by
this Contribution Agreement or any Related Document without the prior written
approval of the other Party; provided, however, that no prior approval shall be
needed for releases or announcements required to comply with applicable
securities Laws, or the rules or requirements of any relevant stock exchange or
other Governmental Authority, it being understood that in such situations the
Parties

                                       18

<PAGE>

will consult in good faith in advance with one another regarding such releases
or announcements.

         5.7      SUBSEQUENT EVENTS

                  During the Interim Period, each Party shall notify the other
Party promptly in writing of the occurrence of any event, or the failure of any
event to occur, prior to the Closing that results in a breach of any of the
covenants or representations and warranties made by or on behalf of such Party
in this Contribution Agreement or any Related Document, or any other document
furnished in connection herewith or therewith, but such notification shall not
excuse breaches of representations, warranties, covenants, guarantees or
agreements disclosed in such notification. In addition, each Party shall
immediately notify the other Party in writing in the event it reasonably
believes that any condition set forth in Sections 8 or 9 cannot be satisfied on
or prior to the Closing. Without limiting the generality of the foregoing, each
Party shall notify the other Party promptly in writing of any change occurring,
or known to likely occur, prior to the Closing which has had, or could
reasonably be expected to have, a Sonoco Material Adverse Effect or an Ahlstrom
Material Adverse Effect, as the case may be, including, without limitation,
information (including without limitation copies of all Agreements relating
thereto) concerning all Claims instituted, threatened or asserted against or
affecting the Sonoco Business or the Ahlstrom Business, as the case may be,
before or by any Governmental Authority or before any other relevant Person.

         5.8      FURTHER ASSURANCES

                  During the Interim Period:

                  (a) Subject to the terms and conditions of this Contribution
Agreement, each Party shall take or do, and shall use commercially reasonable
efforts to cause to be taken or done in respect of any acts or obligations
involving third Persons, all actions and things required under all applicable
Laws in order to consummate the transactions contemplated hereby and by the
Related Documents.

                  (b) Each Party shall satisfy, and shall use commercially
reasonable efforts to cause to be satisfied in respect of any conditions
involving third Persons, each of the closing conditions set forth in Sections 8
and 9 to the extent such satisfaction is within its power, provided, however,
that Section 5.3 comprehensively regulates the Parties' obligations in
connection with the Required Competition Filings.

                                       19

<PAGE>

         5.9      RELEASE OF GUARANTEES

                  As soon as practicable following the Closing Date (and in any
event within 90 days after the Closing Date): (i) Sonoco Products and Ahlstrom
Corp shall procure the release of each Sonoco Holding Company and Controlled
Sonoco Operating Company or Ahlstrom Holding Company and Controlled Ahlstrom
Operating Company, respectively, from any Guarantees or indemnities undertaken
by them in respect of obligations of Sonoco Group companies or Ahlstrom Group
companies (other than Affiliates of the Joint Venture), and, pending such
release, shall indemnify the Ahlstrom Indemnified Persons or the Sonoco
Indemnified Persons, as the case may be, against any Loss whatsoever arising out
of such Guarantees; and (ii) the Joint Venture shall procure the release of each
of Sonoco Products and Ahlstrom Corp from any Guarantees or indemnities
undertaken by them in respect of Affiliates of the Joint Venture, and, pending
such release, shall indemnify Sonoco Products and Ahlstrom Corp, as the case may
be, against any Loss whatsoever arising out of such Guarantees.

         5.10     REPAYMENT OF INTERCOMPANY DEBT

                  As soon as practicable following the Closing Date (and in any
event within 90 days after the Closing Date), each of Sonoco Products and
Ahlstrom Corp shall cause the Joint Venture or its Subsidiaries to repay and
release in full all Intercompany Debt of each Sonoco Holding Company and
Controlled Sonoco Operating Company or Ahlstrom Holding Company and Ahlstrom
Operating Company, respectively, plus interest at the rate of interest set forth
for each such Intercompany Debt in Schedule 5.10 from December 31, 2003 to and
including the date of repayment, or indemnities undertaken by them in respect of
such Intercompany Debt, by refinancing such Intercompany Debt with Indebtedness
issued by the Joint Venture or any of its subsidiaries to Third Persons;
provided, however, that if the amount of such Indebtedness that the Joint
Venture is able to issue to such Third Persons is less than the amount of such
Intercompany Debt outstanding as of the date of refinancing, plus such amount of
interest, then such Intercompany Debt, plus such amount of interest, of each
Sonoco Holding Company and Sonoco Operating Company or Ahlstrom Holding Company
or Ahlstrom Operating Company, respectively, shall be repaid pro rata in
accordance with Sonoco Luxco's and Ahlstrom Holding's respective ownership
interest in the Joint Venture as of such date of refinancing.

         5.11     KARHULA SERVICES

                  (a) On or prior to the Closing, Ahlstrom Corp: (i) shall use
its best efforts to cause the Karhula Commitment Agreement to be terminated and
Ahlstrom Cores Oy to have no further Liability under such Agreement; and (ii)
shall, and shall cause all of its Affiliates that are also shareholders in
Karhula

                                       20

<PAGE>

Services (other than Ahlstrom Cores Oy) to, enter into an Agreement,
satisfactory to Sonoco Products, whereby (A) Ahlstrom Cores Oy commits to pay to
Karhula Services the portion of any land restoration or landscaping actually
incurred by Karhula Services upon closure of the landfill operated by Karhula
Services equal to 25% of such costs, up to a maximum payment of EUR344,000 (the
"JOINT VENTURE COMMITMENT AMOUNT") and (B) Ahlstrom Corp and such Affiliates
agree to assume any Liability or obligation of Ahlstrom Cores Oy for (1) land
restoration or landscaping required upon the closure of the landfill operated by
Karhula Services in excess of the Joint Venture Commitment Amount, (2) any
remediation obligation resulting from Ahlstrom Cores Oy's ownership in Karhula
Services, delivery of waste to such landfill or otherwise, or (3) any obligation
of Karhula Services to construct an environmental lining, install a sewage
system or upgrade the wastewater management system at the landfill.

                  (b) The Parties recognize that the continued use by the Joint
Venture or its Affiliates of the landfill after the Closing Date will be subject
to such terms as shall be agreed between the Joint Venture or its Affiliates and
Karhula Services.

         5.12     USE OF AHLSTROM NAME, LABELS, CORPORATE NAMES, ETC.

                  From and after the Closing Date, in connection with the sale
or other disposition of products of, or otherwise in the conduct of, the
Business of the Joint Venture, Ahlstrom agrees that the Joint Venture shall have
the right (without any fee or other charge) to: (i) sell or otherwise dispose of
any products bearing as of the Closing Date Ahlstrom's name, marks or other
Intellectual Property; (ii) use any carton, labels, forms, brochures, invoices
or other printed material bearing as of the Closing Date Ahlstrom's name, marks
or other Intellectual Property; and (iii) continue to use the corporate names of
the Ahlstrom Holding Companies and the Ahlstrom Operating Companies, in each of
(i), (ii) and (iii), for so long as such products or other materials described
in (i) and (ii) remain in the inventory of the Joint Venture but in any event
not later than six months after the Closing Date; provided that the Joint
Venture shall use its commercially reasonable efforts to cause the corporate
name of the Ahlstrom Holding Companies and the Ahlstrom Operating Companies to
be changed to exclude the name "Ahlstrom" as soon as practicable after the
Closing Date. Ahlstrom shall have and retain sole ownership of the name
"Ahlstrom" and the Ahlstrom corporate logo.

         5.13     PAPERINKERAYS OY

                  After the Closing, Ahlstrom Corp shall: (i) use best efforts
to promptly (but in no case later than one year after the Closing) obtain all
consents, approvals and waivers of the shareholders of Paperinkerays Oy required
under the Articles of Association of Paperinkerays Oy for the sale of the shares
of Paperinkerays Oy

                                       21

<PAGE>

owned by Ahlstrom Corp to the Joint Venture or its designee; and (ii) upon
receipt of all required consents, approvals and waivers described in (i) above,
(A) sell such shares in Paperinkerays Oy to the Joint Venture or its designee
for EUR2,100,000, plus interest on such EUR2,100,000 at the rate of 3% per annum
from the Closing Date until the date of such sale, and (B) in connection with
such sale, provide to the Joint Venture or its designee representations,
warranties and indemnities with respect to Paperinkerays Oy substantially
similar to those that Ahlstrom Corp has provided in respect of each Ahlstrom
Holding Company and Ahlstrom Operating Company in this Contribution Agreement.

         5.14     UK PENSION

                  (a) As part of the Sonoco Reorganization, Sonoco Products
shall cause the Sonoco UK Predecessor to: (i) Transfer to Sonoco Newco UK
certain employees of the Sonoco UK Predecessor who are active exclusively in the
Sonoco Business as of the date of the Transfer and do not elect to contest such
Transfer under applicable Law (the "UK Transfer Employees"); (ii) procure that
Sonoco Newco UK becomes a participating employer in the current pension plan of
the Sonoco UK Predecessor of which the UK Transfer Employees are members (the
"UK PENSION PLAN") in relation to UK Transfer Employees so far as possible
within applicable Law and as permitted by the UK Pension Plan; and (iii) procure
that the terms on which Sonoco Newco UK participates in the UK Pension Plan are
such that, so far as possible within applicable Law, Sonoco Newco UK's maximum
Pension Contributions for a period will be equal to the Pension Service Cost for
that period.

                  (b) Sonoco Products unconditionally and irrevocably agrees, as
a continuing obligation, that if at any time Sonoco Newco UK, the Joint Venture
or any of its Affiliates becomes liable to pay Pension Contributions in excess
of the Pension Service Cost, Sonoco Products will meet that Liability and Sonoco
Products will immediately indemnify Sonoco UK and the Joint Venture against any
such Liability.

                  (c) For the purposes of (a) and (b) above, (i) "PENSION
CONTRIBUTIONS" includes all contributions or payments made or due to the UK
Pension Plan under the provisions governing the UK Pension Plan or by applicable
Law, including any payments becoming due as a result of Sonoco Newco UK ceasing
to participate in the UK Pension Plan or the UK Pension Plan being terminated or
wound up, and any other liabilities arising in relation to the UK Pension Plan
including any liability to indemnify the trustees or administrators of the UK
Pension Plan and any Losses, Taxes, levies, penalties, demands and expenses; and
(ii) "PENSION SERVICE COST" for any period means the value of benefits accrued
under the UK Pension Plan during that period by UK employees active exclusively
in the Sonoco Business calculated in accordance with the principles set forth in
Schedule 5.14 which were used in the calculation of the 2003 Pension Service
Cost.

                                       22

<PAGE>

6.       REPRESENTATIONS AND WARRANTIES OF SONOCO PRODUCTS

         No representation and warranty contained in this Section 6 shall be
construed as a seller's guarantee (Garantie fur die Beschaffenheit der Sache)
within the meaning of Sections 443 and 444 of the German Civil Code.
Notwithstanding anything to the contrary contained in this Contribution
Agreement, or the Schedules hereto, the information and disclosures contained in
each Schedule to a particular representation, warranty, guaranty or covenant
shall not be deemed to be disclosed and incorporated by reference in any other
section of any other Schedule and shall not be deemed to qualify or limit any
other representation, warranty, guarantee or covenant of Sonoco Products
contained in this Contribution Agreement unless such information or disclosure
is clearly incorporated by reference into such other section of such other
Schedule or the applicability of such information to such other Schedule is
reasonably obvious. Each schedule referenced in this Section 6 may be amended by
Sonoco Products within two weeks from the date hereof by notice to Ahlstrom
Corp, subject to approval of such amendment by Ahlstrom Corp, such approval not
to be unreasonably withheld or delayed. For the avoidance of doubt, all
representations and warranties (i) in respect of Sonoco Newco UK, Sonoco Newco
Swiss, Sonoco Newco Germany and Sonoco Greece (in respect of the Sonoco Business
Transferred from the Sonoco Greece Predecessor as part of the Sonoco
Reorganization only) shall be deemed delivered by Sonoco Products as of the
Closing Date only and, to the extent any such representation or warranty is made
as of a particular date other than the Closing Date, such representation and
warranty shall be deemed not made by Sonoco Products in respect of Sonoco Newco
UK and Sonoco Newco Swiss and (ii) in respect of the Sonoco Predecessor
Companies shall be deemed delivered by Sonoco Products as of the date hereof
only. Subject to the foregoing, Sonoco Products hereby represents and warrants
to Ahlstrom Corp by way of an independent guarantee (within the meaning of
section 311, paragraph 1, of the German Civil Code) and, for the avoidance of
doubt, subject to the limitations contained herein, including, in particular in
Section 10, that the statements made in this Section 6 are true and correct.

         6.1      ORGANIZATION; POWER AND AUTHORITY; GOOD STANDING

                  Each of the Sonoco Holding Companies and the Sonoco Operating
Companies is duly organized, validly existing and in good standing under the
Laws of the jurisdiction of its formation, incorporation or organization, as
applicable, and has all requisite power and authority to own, lease and operate
its Assets and to carry on its applicable portion of the Sonoco Business as
presently conducted. Schedule 6.1 contains true, correct and complete copies of
the Charter Documents of each of the Sonoco Holding Companies and the Sonoco
Operating Companies (other than Schweighouse and Sodarec), as amended and in
effect on the date hereof and on the Closing Date.

                                       23

<PAGE>

         6.2      AUTHORIZATION, EXECUTION, ENFORCEABILITY AND NO CONFLICTS

                  (a) Each of Sonoco Products, Sonoco Luxco and any other Sonoco
Group Person has all requisite power and authority (corporate or otherwise) to
execute this Contribution Agreement and each Related Document (collectively, the
"TRANSACTION DOCUMENTS") to which it is a party and any and all instruments
necessary or appropriate in order to effectuate fully the terms and conditions
of each such document and to perform and consummate the transactions
contemplated hereby and thereby. Each Transaction Document to which Sonoco
Products, Sonoco Luxco or any other Sonoco Group Person is a party, and the
performance of its respective obligations hereunder and thereunder, has been
duly and validly authorized by all requisite action on the part of Sonoco
Products, Sonoco Luxco or such other Sonoco Group Person, as applicable, and
each such Transaction Document to which Sonoco Products, Sonoco Luxco or such
other Sonoco Group Person is a party has been, or upon its execution on the
Closing Date will be, duly and validly executed by Sonoco Products, Sonoco Luxco
or such other Sonoco Group Person, and constitutes, or upon its execution on the
Closing Date will constitute, a valid and legally binding obligation of Sonoco
Products, Sonoco Luxco or such other Sonoco Group Person, as applicable,
enforceable against Sonoco Products or Sonoco Luxco or such other Sonoco Group
Person, as applicable, in accordance with its terms and conditions, except as
enforceability thereof may be limited by any applicable bankruptcy,
reorganization, insolvency or other Laws affecting creditors' rights generally
or by general principles of equity.

                  (b) The execution and performance by each of Sonoco Products,
Sonoco Luxco and any other Sonoco Group Person of each Transaction Document to
which it is a party, and the consummation of the transactions contemplated
hereby and thereby, will not: (i) violate any Law applicable to Sonoco Products,
Sonoco Luxco or such other Sonoco Group Person, or any of the Assets of the
Sonoco Group; or (ii) conflict with, or result in any breach of, any of the
terms, conditions or provisions of, or constitute (with due notice or lapse of
time, or both) a default or give rise to any right of termination, cancellation
or acceleration, or result in the creation of any Encumbrance (other than a
Permitted Encumbrance) upon: (x) any of the Assets of the Sonoco Group; or (y)
under any provision of: (1) the Transaction Documents, (2) the Charter Documents
of Sonoco Products, Sonoco Luxco or such other Sonoco Group Person, as
applicable, (3) any Permit required or issued in connection with the operation
of the Sonoco Business or (4) any other Agreement to which it is a party or by
which the Assets of the Sonoco Group is or may be bound, except for such
violations, conflicts or breaches of or with respect to (x), (y) (1), (3) and
(4) above that, individually or in the aggregate, have not had, and are not
reasonably expected to have, a Sonoco Material Adverse Effect. Except for the
Required Competition Filings and as set forth on Schedule 6.2, neither Sonoco
Products nor any relevant Person of the Sonoco Group has been or is required to
give any notice to, obtain the consent of or make any filing with, any
Governmental

                                       24

<PAGE>

Authority or any other Person, or obtain any material Permit, in each case for
the valid execution and performance by Sonoco Products, Sonoco Luxco or such
other Sonoco Group Person of the Transaction Documents to which it is a party.

         6.3      OWNERSHIP OF SONOCO HOLDING COMPANIES AND SONOCO OPERATING
COMPANIES

                  (a) Schedule 6.3 lists: (i) the authorized, issued and
outstanding shares of capital stock or equity interests of each of the Sonoco
Holding Companies and the Sonoco Operating Companies; (ii) the record and
beneficial holders of the authorized, issued and outstanding shares of capital
stock or equity interests of each of the Sonoco Holding Companies and the Sonoco
Operating Companies; and (iii) the number of shares or units, and percentage of
shares or units, of capital stock or equity interests of each such holder. Other
than as set forth on Schedule 6.3, Sonoco Products has no Affiliates, and no
equity investment or other interest in any Person, engaged in any aspect of the
core/tube and core board business in the Territory.

                  (b) Except as set forth on Schedule 6.3, Sonoco Products is,
or will be immediately prior to the Closing, the lawful direct or indirect
record and beneficial owner of all the shares of capital stock of, or other
ownership interests in, each of the Sonoco Holding Companies and the Sonoco
Operating Companies, and has good and marketable title to such shares of capital
stock or ownership interests, free and clear of all Encumbrances (other than
Permitted Encumbrances). Except as set forth on Schedule 6.3, there are no: (i)
outstanding subscriptions, preemptive rights, warrants, calls or options to
acquire, or instruments convertible into or exchangeable for, or Agreements or
understandings with respect to the sale or issuance of, shares of capital stock
or ownership interest of any of the Sonoco Holding Companies or the Sonoco
Operating Companies; (ii) Encumbrances (other than Permitted Encumbrances),
rights of first refusal, rights of first offer, proxies, voting trusts, or
voting Agreements with respect to the sale, issuance or voting of any shares of
capital stock or ownership interest of any of the Sonoco Holding Companies or
the Sonoco Operating Companies (whether outstanding or issuable upon the
conversion, exchange or exercise of outstanding securities); or (iii)
obligations to redeem, repurchase or otherwise acquire shares of capital stock
or ownership interest of any of the Sonoco Holding Companies or the Sonoco
Operating Companies, in each of (i), (ii) or (iii) above, pursuant to any Law
(other than any limitations or restrictions on Transferability under any
applicable securities Laws), any Charter Document of any of the Sonoco Holding
Companies or the Sonoco Operating Companies or any Agreement to which Sonoco
Luxco, any of the Sonoco Holding Companies or the Sonoco Operating Companies is
a party or may be bound.

                  (c) All shares of capital stock of, or other ownership
interests in, the Sonoco Holding Companies and the Sonoco Operating Companies
that are indirectly

                                       25

<PAGE>

held by Sonoco Products have been, or upon their issuance on or prior to the
Closing Date will be, duly authorized, validly issued, outstanding and fully
paid in (and such capital payments have not been paid back).

                  (d) None of the Sonoco Holding Companies or the Sonoco
Operating Companies is a party to a company agreement (Unternehmensvertrag
within the meaning of the German Stock Corporation Act), except for those
agreements disclosed in Schedule 6.3 which will be validly terminated with
effect prior to or as of the Closing Date.

         6.4      BANKRUPTCY

                  No Sonoco Holding Company or Sonoco Operating Company is
involved in any Proceeding by or against it as a debtor before any Governmental
Authority under any insolvency, restructuring or debtors' relief act, or for the
appointment of a trustee, receiver, liquidator, assignee, sequestrator or other
similar official, or under any similar Law, for any part of its Assets.

         6.5      DISTRIBUTIONS

                  Except as contemplated by the Sonoco Reorganization and the
EUR2,440,628 Distribution made on March 3, 2004 from Sonoco Holding Italia
S.r.l. to Sonoco Luxco, no Distribution has been made since December 31, 2003 by
or to any of the Sonoco Holding Companies or the Sonoco Operating Companies.

         6.6      EMPLOYEE REMUNERATION

                  Schedule 6.6 lists the aggregate annual remuneration,
including, without limitation, bonuses and fringe benefits, paid or payable, as
applicable, by each of the Sonoco Holding Companies, the Sonoco Operating
Companies (other than Schweighouse and Sodarec) and the Sonoco Predecessor
Companies, to its respective employees, managers or directors, for the most
recently completed fiscal year and, based on Sonoco Products' good faith
estimate, for the current fiscal year.

         6.7      FINANCIAL STATEMENTS

                  (a) Schedule 6.7 contains true, correct and complete copies of
the following (the "SONOCO FINANCIAL STATEMENTS"):

                           (i)      The unaudited consolidated balance sheet and
                                    profit and loss account of the Sonoco
                                    Holding Companies and the Sonoco Operating
                                    Companies as of December 31, 2003 and for
                                    the 12-month period then ended; and

                                       26

<PAGE>

                           (ii)     The pro forma unaudited consolidated balance
                                    sheet and profit and loss account of the
                                    Sonoco Holding Companies and the Sonoco
                                    Operating Companies as of December 31, 2003
                                    and for the 12-month period then ended,
                                    which balance sheet and profit and loss
                                    account shall reflect the results of the
                                    Sonoco Reorganization as if the Sonoco
                                    Reorganization was completed as of December
                                    31, 2003.

                  (b) The Sonoco Financial Statements, together with the notes
thereto: (i) have been prepared in accordance with U.S. GAAP, Applied on a
Consistent Basis; (ii) have been prepared in accordance with the books and
records of each of the Sonoco Holding Companies and the Sonoco Operating
Companies, which books and records have been properly maintained; (iii) present
fairly the financial condition and results of operations of the Sonoco Holding
Companies and Sonoco Operating Companies on a consolidated basis, as of the date
thereof and for the period covered thereby; provided, however, that the Sonoco
Financial Statements do not contain all footnotes required under U.S. GAAP.
Since December 31, 2003, there has been no change in any accounting principle,
procedure or practice followed by the Sonoco Holding Companies and the Sonoco
Operating Companies or in the method of applying such principle, procedure or
practice.

         6.8      ABSENCE OF UNDISCLOSED LIABILITIES

                  No Sonoco Holding Company or Sonoco Operating Company has any
Liabilities, except: (i) Liabilities as set forth in the Sonoco Financial
Statements; (ii) Liabilities that need not be shown on the balance sheet under
U.S. GAAP and that arose in the Ordinary Course of Business; (iii) Liabilities
arising in the Ordinary Course of Business since December 31, 2003; (iv)
Liabilities set forth on Schedule 6.8; or (v) Liabilities which are not, and are
not reasonably expected to become, material to the Sonoco Business.

         6.9      ABSENCE OF CHANGES

                  Except as set forth on Schedule 6.9 or as provided or
contemplated by the Transaction Documents (including, without limitation, as
contemplated by the Sonoco Reorganization), since December 31, 2003, each of the
Sonoco Holding Companies, the Sonoco Operating Companies, the Sonoco Predecessor
Companies and the Sonoco Business has been operated in the Ordinary Course of
Business and there has not been:

                  (a) any event or condition, or any material transaction or
Agreement which, individually or in the aggregate, has had, or is reasonably
expected to have, a Sonoco Material Adverse Effect;

                                       27

<PAGE>

                  (b) any act, omission of any act, activity or transaction, or
incurrence of Liability (by conduct or otherwise), or any damage, destruction or
Loss, whether or not covered by insurance, which, individually or in the
aggregate, has had, or is reasonably expected to have, a Sonoco Material Adverse
Effect;

                  (c) any issuance of any shares or ownership interests, or any
options, warrants or other rights to subscribe for or purchase any of its shares
or ownership interests, or any securities convertible into or exchangeable for
its shares or ownership interests by any Sonoco Holding Company, Sonoco
Operating Company or Sonoco Predecessor Company;

                  (d) split, reclassification or other change in or of any of
the shares or ownership interests of any Sonoco Holding Company, Sonoco
Operating Company or Sonoco Predecessor Company;

                  (e) amendment of the Charter Documents of any Sonoco Holding
Company, Sonoco Operating Company or Sonoco Predecessor Company;

                  (f) any increase in, or prepayment of, the compensation
payable, or to become payable, by any Sonoco Holding Company, Sonoco Operating
Company or Sonoco Predecessor Company to any of its directors, officers,
managing directors, managers, employees or agents, or enter into any bonus,
insurance, pension or other benefit plan, payment or arrangement for or with any
of such directors, officers, managing directors, managers, employees or agents,
other than normal salary increases in the Ordinary Course of Business;

                  (g) any lay-offs with respect to a significant part of the
workforce of any Sonoco Holding Company, Sonoco Operating Company or Sonoco
Predecessor Company;

                  (h) any incurrence of any Indebtedness, including Intercompany
Debt (other than Indebtedness incurred in the Ordinary Course of Business on
reasonable arms length terms), or direct or indirect provision of a Guarantee,
or any agreement to provide a Guarantee, or Indebtedness of any other Person;

                  (i) any cancellation of, or material change to, Indebtedness
owing to any Sonoco Holding Company, Sonoco Operating Company or Sonoco
Predecessor Company from any Person or any Claims which any Sonoco Holding
Company, Sonoco Operating Company or Sonoco Predecessor Company may possess, or
any waiver or release of any material rights (other than in the Ordinary Course
of Business);

                  (j) any placement, or allowance to place, an Encumbrance
(other than a Permitted Encumbrance) on any Assets of any Sonoco Holding
Company, Sonoco Operating Company or Sonoco Predecessor Company;

                                       28

<PAGE>

                  (k) any change in any method of accounting or accounting
practice or policy of any Sonoco Holding Company, Sonoco Operating Company or
Sonoco Predecessor Company, except as required by U.S. GAAP, including, without
limitation, any change in its policies with respect to the payment of accounts
payable or other current Liabilities or the collection of accounts receivable,
including, without limitation, any acceleration or deferral of the payment or
collection thereof, as applicable;

                  (l) any Transfer of Intellectual Property (other than in the
Ordinary Course of Business) from or to any Sonoco Holding Company, Sonoco
Operating Company or Sonoco Predecessor Company;

                  (m) any Transfer of a material portion of the Assets of any
Sonoco Holding Company, Sonoco Operating Company or the Sonoco UK Predecessor,
or scrapping of a material portion of the Assets of any Sonoco Holding Company,
Sonoco Operating Company or Sonoco Predecessor Company as obsolete;

                  (n) any material change in the general manner in which any
Sonoco Holding Company, Sonoco Operating Company or Sonoco Predecessor Company
markets its products or services;

                  (o) any commitments for capital expenditures of any Sonoco
Holding Company, Sonoco Operating Company or Sonoco Predecessor Company in
excess of EUR1,000,000 per occurrence or EUR5,000,000 in the aggregate;

                  (p) any violation of any material Law or material Order; or

                  (q) any loan or advance to any members, stockholders or equity
holders, or officers, directors, managing directors, managers or to any other
Person of any Sonoco Holding Company, Sonoco Operating Company or Sonoco
Predecessor Company.

         6.10     OUTSTANDING BORROWINGS; INTERCOMPANY DEBT

                  Schedule 6.10 lists: (i) the amount of principal, interest and
other obligations of all Outstanding Borrowings and Intercompany Debt of each
Sonoco Holding Company, Sonoco Operating Company and Sonoco Predecessor Company
as of December 31, 2003; (ii) the Encumbrances that relate to such Outstanding
Borrowings and Intercompany Debt; (iii) the name of each lender or party
thereof; and (iv) the amount of any unfunded commitments available in connection
with such Outstanding Borrowings and Intercompany Debt.

                                       29

<PAGE>

         6.11     RELATED PARTY TRANSACTIONS

                  Except as set forth on Schedule 6.11, and except for: (i)
compensation and payment of reimbursable expenses incurred in the Ordinary
Course of Business to regular employees of any Sonoco Holding Company, Sonoco
Operating Company or Sonoco Predecessor Company; (ii) any individual amount not
exceeding EUR100,000 per year; or (iii) sales of products in the Ordinary Course
of Business on arms-length terms, no current or former Affiliate of any Sonoco
Holding Company, Sonoco Operating Company or Sonoco Predecessor Company, is now,
or has been since December 31, 2003: (x) a party to any transaction or Agreement
with any Sonoco Holding Company, Sonoco Operating Company or Sonoco Predecessor
Company; (y) Indebted to any Sonoco Holding Company, Sonoco Operating Company or
Sonoco Predecessor Company; or (z) the direct or indirect owner of an interest
in any Person which is a competitor, supplier or customer of any Sonoco Holding
Company, Sonoco Operating Company or Sonoco Predecessor Company (other than
non-affiliated holdings in publicly held companies), nor, to the Actual
Knowledge of Sonoco Products, does any such Person receive income from any
source other than any Sonoco Holding Company, Sonoco Operating Company or Sonoco
Predecessor Company which should properly accrue to any Sonoco Holding Company,
Sonoco Operating Company or Sonoco Predecessor Company. Except as set forth on
Schedule 6.11, no current or former Affiliate of any Sonoco Holding Company,
Sonoco Operating Company or Sonoco Predecessor Company provides a Guarantee or
is otherwise responsible for any Liability (including Indebtedness) of any
Sonoco Holding Company, Sonoco Operating Company or Sonoco Predecessor Company.

         6.12     COMPLIANCE WITH LAWS

                  (a) Except as disclosed on Schedule 6.12, each of the Sonoco
Holding Companies, Sonoco Operating Companies and the Sonoco Predecessor
Companies have: (i) complied in all material respects with, is in compliance in
all material respects with and has operated the Sonoco Business and maintained
its Assets in compliance in all material respects with, all Laws applicable to
it and its applicable portion of the Sonoco Business as currently conducted; and
(ii) all Permits used or necessary in the conduct of its applicable portion of
the Sonoco Business, except for such Permits the absence of which, individually
or in the aggregate, has not had, and is not reasonably expected to have, a
Sonoco Material Adverse Effect. Such Permits described in clause (ii) are valid
and in good standing and are in full force and effect, no violations with
respect to any thereof have occurred or are or have been recorded and no
Proceeding is pending or, to the Best Knowledge of Sonoco Products, threatened
to revoke or limit any thereof.

                  (b) Schedule 6.12 contains a true, correct and complete list
of: (i) all such Permits described in paragraph (a) of this Section 6.12 (other
than Permits for

                                       30

<PAGE>

Schweighouse and Sodarec); and (ii) all material Orders under which each of the
Sonoco Holding Companies, the Sonoco Operating Companies (other than Orders for
Schweighouse and Sodarec) and the Sonoco Predecessor Companies are operating or
bound. To the Actual Knowledge of Sonoco Products, there is no proposed change
in any applicable Law which would require any Sonoco Holding Company, Sonoco
Operating Company or Sonoco Predecessor Company to obtain any Permits not set
forth on Schedule 6.12 in order to conduct its applicable portion of the Sonoco
Business as presently conducted. Except as disclosed in Schedule 6.12, none of
such Permits or Orders shall be adversely affected as a result of Sonoco
Products', any Sonoco Holding Company's or Sonoco Operating Company's execution
of, or the performance of its obligations under, any Transaction Document to
which it is a party, or the consummation of the transactions contemplated hereby
and thereby. No Sonoco Holding Company, Sonoco Operating Company or Sonoco
Predecessor Company has received any opinion or memorandum or legal advice from
legal counsel to the effect that it is exposed, from a legal standpoint, to any
Liability or disadvantage, individually or in the aggregate, which has had, or
is reasonably expected to have, a Sonoco Material Adverse Effect. To the Actual
Knowledge of Sonoco Products, no Sonoco Holding Company, Sonoco Operating
Company or Sonoco Predecessor Company is aware of any proposed Law which would
prohibit or restrict it from, or otherwise materially adversely affect it in,
conducting its applicable portion of the Sonoco Business in any jurisdiction in
which it is now conducting the Sonoco Business.

         6.13     TAXES

                  (a) Each of the Sonoco Holding Companies and the Sonoco
Operating Companies has (or, in the case of Tax Returns becoming due after the
date hereof and on or before the Closing Date, will have prior to the Closing
Date) duly filed all Tax Returns, notices and other reports or filings required
to be filed by any of the Sonoco Holding Companies or the Sonoco Operating
Companies (collectively, "SONOCO TAX RETURNS") on or before the Closing Date
(including, without limitation, in connection with or as a result of the Sonoco
Reorganization) with respect to all applicable Taxes. All such Tax Returns are
(or, in the case of returns becoming due after the date hereof, including,
without limitation, in connection with or as a result of the Sonoco
Reorganization, will be) true and complete in all material respects.

                  (b) All Taxes which are required to be paid by each of the
Sonoco Holding Companies and the Sonoco Operating Companies before the Closing
Date have been or will be paid in full prior to the Closing Date and an
appropriate provision has been provided in respect of all Taxes that are not due
prior to the Closing Date and that relate to the time period through December
31, 2003 in the Sonoco Financial Statements.

                                       31

<PAGE>

                  (c) There is no investigation or Claim pending or, to the Best
Knowledge of Sonoco Products, threatened in respect of any material Taxes for
which any of the Sonoco Holding Companies and the Sonoco Operating Companies is,
or is reasonably expected to become, liable. No Sonoco Holding Company or Sonoco
Operating Company has consented to any waivers or extensions of any statute of
limitations with respect to any taxable year of the Sonoco Group.

                  (d) No Sonoco Holding Company or Sonoco Operating Company is a
party to an Agreement or arrangement relating to the sharing, allocation or
payment of, indemnity or security for, Taxes, except for the Tax consolidation
Agreements (e.g., Organschaft) set forth on Schedule 6.13, which will be
terminated prior to the Closing Date.

                  (e) The execution and performance of this Contribution
Agreement and the Related Documents will not result in: (i) the imposition of
any Tax on or with respect to any Sonoco Holding Company or Sonoco Operating
Company, or their respective Assets; or (ii) the Loss by any Sonoco Holding
Company or Sonoco Operating Company of any Tax relief or Tax benefit other than
the loss of trade Tax loss carryforwards and Tax loss carryforwards or other Tax
attributes for which adequate provision has been made on the Sonoco Financial
Statements.

                  (f) No Sonoco Holding Company and no Sonoco Operating Company
has carried out any dealings with Affiliates on a non-arms length basis that
could be assessed by the relevant Governmental Authorities to constitute hidden
distributions of profits (verdeckte Gewinnausschuettung).

         6.14     REAL PROPERTY

                  (a) Schedule 6.14 lists all the Real Property used in the
Sonoco Business (the "SONOCO REAL PROPERTY") and specifies the owner of each
parcel thereof and sets forth a legal description for all such Real Property.
The Sonoco Real Property is suitable and adequate in all material respects for
the uses for which it is currently devoted. None of the Sonoco Holding
Companies, the Sonoco Operating Companies or the Sonoco Predecessor Companies
own, lease, sublease, license or use any Real Property in the operation of the
Sonoco Business, other than the Sonoco Real Property.

                  (b) Each of the Sonoco Holding Companies, the Sonoco Operating
Companies and the Sonoco Predecessor Companies, as applicable, is the sole owner
of good, valid and marketable fee simple or comparable title to the Sonoco Real
Property listed in Schedule 6.14 as owned Sonoco Real Property and has valid and
binding rights under leases to the Sonoco Real Property listed in Schedule 6.14
as leased Sonoco Real Property, in each case free and clear of all Encumbrances
(other

                                       32

<PAGE>

than Permitted Encumbrances). Schedule 6.14 contains an accurate and complete
list of all mortgages and similar Encumbrances on the Sonoco Real Property.

                  (c) All buildings, structures, fixtures and other improvements
on the Sonoco Real Property are: (i) in good repair, normal wear and tear
excepted, and free of material defects (latent or patent); and (ii) are suitable
and adequate in all material respects for the uses to which they are currently
devoted. All such buildings, structures, fixtures and improvements on the Sonoco
Real Property conform in all material respects to all material Laws. The
buildings, structures, fixtures and improvements on each parcel of Sonoco Real
Property lie entirely within the boundaries of such parcel of the Sonoco Real
Property as specified in the legal description set forth in Schedule 6.14, and
do not encroach in any material respects on any adjoining premises and no
structures of any kind encroach in any material respects on such Sonoco Real
Property.

                  (d) Except as set forth on Schedule 6.14: (i) none of the
Sonoco Real Property is subject to any material Agreement or other material
restriction of any nature whatsoever (recorded or unrecorded) preventing or
limiting in any material respects any Sonoco Holding Company's, Sonoco Operating
Company's or Sonoco Predecessor Company's right to convey or otherwise dispose
of its interest in same; and (ii) none of the Sonoco Real Property is subject to
any material Agreement or other material restriction of any nature whatsoever
(recorded or unrecorded) preventing or limiting in any material respects any
Sonoco Holding Company's, Sonoco Operating Companies' or the Sonoco Predecessor
Company's right to use it.

                  (e) No material portion of the Sonoco Real Property or any
building, structure, fixture or improvement thereon is the subject of, or
affected by, any condemnation or eminent domain Proceeding currently instituted
or pending, and to Sonoco Products' Actual Knowledge, none of the foregoing will
be the subject of, or affected by, any such future Proceeding.

                  (f) The Sonoco Real Property has reasonably direct and
unobstructed access to material public roads and to reasonably adequate material
electric, gas, water, sewer and telephone lines, all of which are reasonably
adequate for the uses to which such Sonoco Real Property is currently devoted.

                  (g) Except as disclosed on Schedule 6.14, there are no Persons
in possession, or who have a right of possession of any portion of the Sonoco
Real Property other than the Sonoco Holding Companies, the Sonoco Operating
Companies or the Sonoco Predecessor Companies, whether as lessees, tenants at
will or otherwise.

                  (h) Schedule 6.14 contains a complete and accurate copy of all
Real Property Leases relating to the Sonoco Real Property. Each Real Property
Lease

                                       33

<PAGE>

entered into (whether as lessor or lessee) by each of the Sonoco Holding
Companies, the Sonoco Operating Companies or the Sonoco Predecessor Companies
is: (i) valid, binding and enforceable in all material respects against the
Sonoco Holding Companies, the Sonoco Operating Companies and the Sonoco
Predecessor Companies, as applicable; and (ii) to Sonoco Products' Actual
Knowledge, is valid, binding and enforceable in all material respects against
the other parties thereto in accordance with its terms, and is in full force and
effect in all material respects.

                  (i) None of the Sonoco Holding Companies, the Sonoco Operating
Companies or the Sonoco Predecessor Companies are in material default under, or
in material breach of, or are otherwise materially delinquent in performance
under any Real Property Lease entered into (whether as lessor or lessee) by the
Sonoco Holding Companies, the Sonoco Operating Companies or the Sonoco
Predecessor Companies, and, to Sonoco Products' Actual Knowledge, no event has
occurred which, with due notice or lapse of time, or both, would constitute such
a default.

         6.15     ENVIRONMENTAL AND SAFETY

                  (a) Each of the Sonoco Holding Companies, the Sonoco Operating
Companies and the Sonoco Predecessor Companies has complied in all material
respects with, and each such company and all of the Sonoco Real Property is in
compliance in all material respects with, all material Environmental and Safety
Requirements; and there are no Proceedings pending or, to the Best Knowledge of
Sonoco Products, threatened against any Sonoco Holding Company, Sonoco Operating
Company or Sonoco Predecessor Company alleging any failure to so comply or
involving any Environmental and Safety Requirement issue with respect to its
past operations or any Real Property of any Sonoco Holding Company, Sonoco
Operating Company or Sonoco Predecessor Company.

                  (b) No Sonoco Holding Company, Sonoco Operating Company or
Sonoco Predecessor Company has any material Liability arising under any
Environmental and Safety Requirements.

                  (c) Except as set forth on Schedule 6.15, no Sonoco Holding
Company, Sonoco Operating Company or Sonoco Predecessor Company has received any
written notice or report with respect to it or its Real Property regarding any:
(i) actual or alleged violation of Environmental and Safety Requirements; or
(ii) actual or potential Liability arising under Environmental and Safety
Requirements, including any investigatory, remedial or corrective obligation, in
each of (i) and (ii), during the last three calendar years.

                  (d) No Sonoco Holding Company, Sonoco Operating Company or
Sonoco Predecessor Company has assumed or undertaken any material Liability of
any other Person under any Environmental and Safety Requirements.

                                       34

<PAGE>

                  (e) No Sonoco Holding Company, Sonoco Operating Company or
Sonoco Predecessor Company has treated, stored, disposed of, arranged for or
permitted the disposal of, transported, handled or released any substance, or
owned or operated any Real Property, in a manner that has given rise to material
Liabilities of any Sonoco Holding Company, Sonoco Operating Company or Sonoco
Predecessor Company pursuant to any Environmental and Safety Requirement,
including any material Liability for response costs, corrective action costs,
personal injury, property damage, natural resources damage or attorney fees, or
any investigative, corrective or remedial obligations.

                  (f) Schedule 6.15 sets forth all environmental matters for
which a financial reserve has been made on the Sonoco Financial Statements and
the amount of such reserve.

         6.16     TITLE TO ASSETS

                  Except for the leased Assets listed in Schedule 6.19 and
subject to Section 6.14, each of the Sonoco Holding Companies and the Sonoco
Operating Companies has, or upon consummation of the Sonoco Reorganization will
have at the Closing Date, good, valid and marketable title to all Assets used in
its applicable portion of the Sonoco Business, free and clear of all
Encumbrances (other than Permitted Encumbrances). All personal property of the
Sonoco Holding Companies and Sonoco Operating Companies is in normal operating
condition and repair, normal wear and tear excepted, and is suitable and
adequate for the uses for which it is used. All inventory of the Sonoco Holding
Companies and Sonoco Operating Companies consists of items which are good and
merchantable and of a quality and quantity presently usable and saleable in the
Ordinary Course of Business, subject to any reserves properly reflected on the
Sonoco Financial Statements under U.S. GAAP.

         6.17     INSURANCE

                  All policies of Assets, fire, hazard, casualty, liability,
life, and other forms of insurance of any kind owned or held by, or for the
benefit of, the Sonoco Holding Companies and the Sonoco Operating Companies: (i)
are in full force and effect and, to the Best Knowledge of Sonoco Products, no
grounds for termination of such policies exist; (ii) are sufficient for
compliance by each of the Sonoco Holding Companies and the Sonoco Operating
Companies with all requirements of applicable Law and of all Agreements which
require any of the Sonoco Holding Companies or the Sonoco Operating Companies to
acquire and/or maintain insurance; (iii) are valid and enforceable against the
insurer in all material respects; and (iv) insure against risks of the kind
customarily insured against and in amounts customarily carried by companies
similarly situated and by companies engaged in similar businesses and owning
similar properties, and provide adequate

                                       35

<PAGE>

insurance coverage for the Sonoco Business and Assets of the Sonoco Holding
Companies and the Sonoco Operating Companies. All premium and other payments
required to be paid by, or on behalf of, each of the Sonoco Holding Companies
and the Sonoco Operating Companies pursuant to such policies have been fully and
timely made.

         6.18     INTELLECTUAL PROPERTY

                  (a) Schedule 6.18 contains a list: (i) of all Intellectual
Property owned by each of the Sonoco Holding Companies, the Sonoco Operating
Companies and the Sonoco Predecessor Companies in respect of which a
registration has been granted, and in respect of which a registration has been
applied for, in each case specifying, as applicable (A) the nature of such
Intellectual Property, (B) the owner of such Intellectual Property, (C) the
jurisdictions in which such Intellectual Property has been registered, or in
which an application for registration has been filed, and the registration or
application numbers and (D) any licenses that have been granted with respect to
such Intellectual Property; and (ii) of all licenses pursuant to which each of
the Sonoco Holding Companies and the Sonoco Operating Companies has been granted
the right to use Intellectual Property owned by another Person, in each case
specifying (A) the licensor, (B) the duration of the license and (C) the
royalties payable. The Intellectual Property listed on Schedule 6.18 is all
Intellectual Property necessary to conduct the Sonoco Business as currently
conducted.

                  (b) Each of the Sonoco Holding Companies, the Sonoco Operating
Companies and the Sonoco Predecessor Companies: (i) owns, or has a valid license
to use, all Intellectual Property used by it in the Ordinary Course of Business
in the Sonoco Business, except where the failure to own, or have a valid license
to use, such Intellectual Property, individually or in the aggregate, has not
had, and is not reasonably expected to have, a Sonoco Material Adverse Effect;
and (ii) each of the Sonoco Holding Companies, the Sonoco Operating Companies
and the Sonoco Predecessor Companies has made, or has had made on its behalf,
all payments as and when required to validly maintain all registrations of, its
ownership of, or its license to use, such Intellectual Property in full force
and effect, with any Governmental Authority or other Person, as the case may be.
To the Best Knowledge of Sonoco Products, there exist no grounds for termination
of the Sonoco Holding Companies', the Sonoco Operating Companies' or the Sonoco
Predecessor Companies ownership rights in, or licenses to use, the Intellectual
Property referred to in the preceding sentence, in particular, there are no
pending challenges of any Intellectual Property owned by any Sonoco Holding
Company, Sonoco Operating Company or Sonoco Predecessor Company, and to Sonoco
Products' Best Knowledge, no such challenges are threatened.

                                       36

<PAGE>

                  (c) No Sonoco Holding Company, Sonoco Operating Company or the
Sonoco Predecessor Company has granted an exclusive license with respect to any
Intellectual Property used in the Sonoco Business to any third Person (other
than another Sonoco Holding Company, Sonoco Operating Company or Sonoco
Predecessor Company).

                  (d) No Sonoco Holding Company, Sonoco Operating Company or
Sonoco Predecessor Company has any Actual Knowledge of, nor has it received any
notice to the effect, that any product that any Sonoco Holding Company, Sonoco
Operating Company or Sonoco Predecessor Company sells or that any service any
Sonoco Holding Company, Sonoco Operating Company or Sonoco Predecessor Company
renders, or that the manufacture, distribution, marketing, sale or use of any
such product or service, may or is Claimed to infringe any Intellectual Property
right of another.

         6.19     LEASED PERSONAL PROPERTY

                  Schedule 6.19 lists every lease, sublease and Agreement
involving aggregate annual lease payments exceeding EUR30,000 per lease, per
year (net of ancillary costs) under which any of the Sonoco Holding Companies,
the Sonoco Operating Companies or the Sonoco Predecessor Companies is lessee or
lessor of any material Asset, or holds, manages or operates any material Asset
owned by any third party, or under which any material Asset owned by any of the
Sonoco Holding Companies, the Sonoco Operating Companies or the Sonoco
Predecessor Companies is held, operated or managed by a third party. Each of the
Sonoco Holding Companies and the Sonoco Operating Companies or the Sonoco UK
Predecessor is the owner and holder of all rights under leases used by it in the
Sonoco Business. Each such lease, sublease and other Agreement is in full force
and effect and constitutes a legal, valid and binding obligation of, and is
legally enforceable against, the respective Parties and grants the leasehold
interest it purports to grant free and clear of all Encumbrances (other than
Permitted Encumbrances). Each of the Sonoco Holding Companies, the Sonoco
Operating Companies and the Sonoco Predecessor Companies has in all material
respects performed all obligations thereunder required to be performed by any of
them to date. No Party is in default in any material respect under any of the
foregoing, and there has not occurred any event which (whether with or without
notice, lapse of time or the happening or occurrence of any other event) would
constitute such a material default.

         6.20     CERTAIN MATERIAL AGREEMENTS

                  (a) Subject to Section 6.14, except for the Agreements set
forth on Schedule 6.20 ("SONOCO MATERIAL AGREEMENTS"), no Sonoco Holding
Company, Sonoco Operating Company or Sonoco Predecessor Company is a party to
any written or oral:

                                       37

<PAGE>

                           (i)      Agreement for the employment or retention
                                    of, whether on a full-time, part-time,
                                    consulting or other basis, or understanding
                                    with, any of the directors, top five
                                    officers, managing directors, general
                                    managers or country managers of the Sonoco
                                    Business, any Sonoco Holding Company, Sonoco
                                    Operating Company or Sonoco Predecessor
                                    Company;

                           (ii)     Agreement relating to Indebtedness or to the
                                    mortgaging, pledging or otherwise placing an
                                    Encumbrance (other than a Permitted
                                    Encumbrance) on any Asset of the Sonoco
                                    Business, or any Sonoco Holding Company,
                                    Sonoco Operating Company or Sonoco
                                    Predecessor Company, with a fair market
                                    value in excess of EUR50,000;

                           (iii)    Agreement preventing or otherwise
                                    restricting the right of any Sonoco Holding
                                    Company, Sonoco Operating Company or Sonoco
                                    Predecessor Company to make or receive
                                    Distributions;

                           (iv)     Agreement involving the sale of the accounts
                                    receivable of any Sonoco Holding Company,
                                    Sonoco Operating Company or Sonoco
                                    Predecessor Company to any other Person;

                           (v)      Agreement with respect to the investing of
                                    funds, including, without limitation, any
                                    hedging Agreement;

                           (vi)     Agreement under which any Sonoco Holding
                                    Company, Sonoco Operating Company or Sonoco
                                    Predecessor Company is the lessor of, or
                                    permits any third Person to hold or operate,
                                    any real or personal property owned or
                                    controlled by any Sonoco Holding Company,
                                    Sonoco Operating Company or Sonoco
                                    Predecessor Company in excess of EUR30,000;

                           (vii)    assignment, license, indemnification or
                                    other Agreement with respect to any form of
                                    intangible property with Third Parties,
                                    including, without limitation, any
                                    Intellectual Property;

                           (viii)   Agreement or group of related Agreements
                                    with the same Person for the sale of Assets
                                    or services which generated in excess of
                                    EUR100,000 in revenues in the most recent
                                    12-month period or is reasonably expected to
                                    generate in

                                       38
<PAGE>

                                    excess of EUR100,000 in revenues in any
                                    12-month period ending after the date
                                    hereof;

                           (ix)     non-competition agreement which limits any
                                    Sonoco Holding Company, Sonoco Operating
                                    Company or Sonoco Predecessor Company from
                                    freely engaging in any business anywhere in
                                    the world;

                           (x)      Agreement relating to the purchase,
                                    distribution, marketing, advertising or sale
                                    of any Sonoco Holding Company's, Sonoco
                                    Operating Company's or Sonoco Predecessor
                                    Company's or any other Person's products or
                                    services (other than Agreements entered into
                                    in the Ordinary Course of Business); or

                           (xi)     other than Agreements described and
                                    disclosed in subsections (i) through (x)
                                    above, Agreement pursuant to which any
                                    Sonoco Holding Company, Sonoco Operating
                                    Company or Sonoco Predecessor Company has
                                    Liabilities or is required to make or give,
                                    or entitled to receive, aggregate payments
                                    or other value in excess of EUR100,000.

                  (b) All Sonoco Material Agreements are, or following the
Sonoco Reorganization will be, an Asset of a Sonoco Holding Company, a Sonoco
Operating Company or a Sonoco Predecessor Company, and no other Sonoco Group
company is, or will be following the Sonoco Reorganization, a party to any such
Sonoco Material Agreement.

                  (c) Except as specifically disclosed in Schedule 6.20, each of
the Sonoco Holding Companies, the Sonoco Operating Companies and the Sonoco
Predecessor Companies has performed in all material respects all obligations
required to be performed by it, and is not in default under or in breach of, nor
in receipt of any Claim of default or breach under, any Sonoco Material
Agreement to which it is a party or by which any of its Assets may be bound,
and, to the Actual Knowledge of Sonoco Products, no event has occurred which
with the passage of time or the giving of notice or both would result in such a
material default or breach under any such Sonoco Material Agreement. To the
Actual Knowledge of Sonoco Products, no other party to any Sonoco Material
Agreement to which any of the Sonoco Holding Companies, the Sonoco Operating
Companies or the Sonoco Predecessor Companies is a party, or by which any of
their Assets may be bound, is in material default under or in breach of any
Sonoco Material Agreements, and no event has occurred which with the passage of
time or giving of notice or both would result in a material default or breach by
such other party under any Sonoco

                                       39
<PAGE>

Material Agreement. There has been made available to Ahlstrom Corp in the Sonoco
Data Room: (i) a true and complete copy of each written Sonoco Material
Agreement, together with all amendments, waivers or other changes thereto; and
(ii) a true and complete description of the material terms of all oral Sonoco
Material Agreements.

         6.21     LITIGATION; DISPUTES

                  Except as (x) set forth on Schedule 6.21 and (y) for matters
which have not resulted, and could not reasonably be expected to result, in a
fine or other award of damages in excess of EUR100,000, there are no: (i)
Proceedings pending (for which proper service has been made) against or
involving any of the Sonoco Holding Companies, the Sonoco Operating Companies or
the Sonoco Predecessor Companies, whether at law or in equity, whether civil or
criminal in nature or by or before any Governmental Authority; (ii) customer
Claims of any nature against any of the Sonoco Holding Companies, the Sonoco
Operating Companies or the Sonoco Predecessor Companies; or (iii) Orders of any
Governmental Authority with respect to or involving any of the Sonoco Holding
Companies, the Sonoco Operating Companies or the Sonoco Predecessor Companies,
nor, in the case of (i), (ii) or (iii), to the Best Knowledge of Sonoco
Products, does there exist any basis for any such Proceeding, Claim or Order, or
has any such Proceeding, Claim or Order been threatened.

         6.22     LABOR RELATIONS

                  (a) Except as set forth on Schedule 6.22, there are no
strikes, work stoppages, or other disputes pending or, to the Best Knowledge of
Sonoco Products, threatened, or reasonably anticipated between any of the Sonoco
Holding Companies, the Sonoco Operating Companies or the Sonoco Predecessor
Companies and: (i) any current or former employees of any of the Sonoco Holding
Companies, the Sonoco Operating Companies or the Sonoco Predecessor Companies
involving amounts, individually or in the aggregate, exceeding EUR100,000; (ii)
any union, employee representatives or other collective bargaining unit
representing employees of the Sonoco Holding Companies, the Sonoco Operating
Companies or the Sonoco Predecessor Companies; or (iii) any social security
Governmental Authority.

                  (b) No Sonoco Holding Company or Sonoco Operating Company has,
or is obligated with respect to, any stock option, stock bonus, phantom stock
plan, scheme or similar arrangement. Except for the UK Pension Obligation, any
unfunded pension Liability arrangements for present or former employees,
directors, officers, managing directors, managers or workers of each of the
Sonoco Holding Companies, the Sonoco Operating Companies or the Sonoco
Predecessor Companies is covered by adequate reserves in the Sonoco Financial
Statements, and

                                       40
<PAGE>

any other pension Liability is fully funded and complies with all statutory and
regulatory funding obligations in respect of all categories of member.

                  (c) No Sonoco Holding Company, Sonoco Operating Company or the
Sonoco Predecessor Company has any consulting arrangements with their respective
directors.

                  (d) Each of the Sonoco Holding Companies, the Sonoco Operating
Companies and the Sonoco Predecessor Companies has complied, and is in
compliance with, in all material respects, all Laws relating to employment,
workers, the workplace, the termination of employment or income tax, wage
withholding tax or social security matters, including, without limitation,
provisions relating to wages, hours, collective bargaining, employee
representation, consultation, safety and health, work authorization, equal
employment opportunity, discrimination, immigration, withholding, unemployment
compensation, worker's compensation, employee privacy and right to know and
social security contributions.

                  (e) Except as set forth on Schedule 6.22 and without limiting
the generality of the foregoing, no Sonoco Holding Company, Sonoco Operating
Company or Sonoco Predecessor Company is a party to any existing Agreement with
an employee, officer, director, managing director, manager or agent which in
case of termination could result in compensation payments in an amount exceeding
EUR50,000.

                  (f) The consummation of the transactions contemplated in this
Contribution Agreement (including the Sonoco Reorganization) will not cause any
Sonoco Holding Company or Sonoco Operating Company to incur or suffer any
Liability relating to, or obligation to pay, severance, termination, social
security or other payments (including interest, penalties and charges relating
thereto) to any Person.

                  (g) Except as set forth in Schedule 6.22, or as imposed by
applicable Law, no Sonoco Holding Company, Sonoco Operating Company or Sonoco
Predecessor Company is a party to an Agreement or arrangement with any union,
works counsel, other employee representation body or employee representatives,
limiting its right to consummate the restructurings contemplated by the Business
Plan, including the closure of any plants or other facilities, relocation or
termination of employees.

         6.23     INVESTMENT REPRESENTATIONS

                  Sonoco Luxco is acquiring the Sonoco Shares hereunder, for its
own account, for investment and not with a view to the distribution thereof in
violation of applicable securities Laws.

                                       41
<PAGE>

         6.24     SUBSIDIES

                  Schedule 6.24 contains a complete and correct list of all
subsidies in an amount of EUR100,000 or more granted or awarded to any of the
Sonoco Holding Companies, the Sonoco Operating Companies or the Sonoco
Predecessor Companies or any of their predecessors during the last five calendar
years in respect of the relevant portion of the Sonoco Business. Neither the
Transaction (including the Sonoco Reorganization) nor the measures contemplated
under the Business Plan will result in an obligation to repay (or lose the
award) of any such subsidies.

         6.25     UK PENSION

                  The Pension Service Cost for the UK Pension Plan reflected in
the Sonoco Financial Statements was calculated based on the assumptions
described on Schedule 5.14.

         6.26     COMPLETENESS OF CONTRIBUTION

                  Following the Sonoco Reorganization, all Assets, Agreements
and employees used in the conduct of the Sonoco Business as it is presently
conducted will have been Transferred to the Sonoco Holding Companies and the
Sonoco Operating Companies.

7.       REPRESENTATIONS AND WARRANTIES OF AHLSTROM CORP

         No representation and warranty contained in this Section 7 shall be
construed as a seller's guarantee (Garantie fur die Beschaffenheit der Sache)
within the meaning of Sections 443 and 444 of the German Civil Code.
Notwithstanding anything to the contrary contained in this Contribution
Agreement, or the Schedules hereto, the information and disclosures contained in
each Schedule to a particular representation, warranty, guaranty or covenant
shall not be deemed to be disclosed and incorporated by reference in any other
section of any other Schedule and shall not be deemed to qualify or limit any
other representation, warranty, guarantee or covenant of Ahlstrom Corp contained
in this Contribution Agreement unless such information or disclosure is clearly
incorporated by reference into such other section of such other Schedule or the
applicability of such information to such other Schedule is reasonably obvious.
Each schedule referenced in this Section 7 may be amended by Ahlstrom Corp
within two weeks from the date hereof by notice to Sonoco Products, subject to
approval of such amendment by Sonoco Products, such approval not to be
unreasonably withheld or delayed. Subject to the foregoing, Ahlstrom Corp hereby
represents and warrants to Sonoco Products by way of an independent guarantee
(within the meaning of section 311, paragraph 1, of the German Civil Code) and,
for the avoidance of doubt, subject to the limitations contained herein,
including, in particular in Section 10, that the statements made in this Section
7 are true and correct.

                                       42
<PAGE>

         7.1      ORGANIZATION; POWER AND AUTHORITY; GOOD STANDING

                  Each of the Ahlstrom Holding Companies and the Ahlstrom
Operating Companies is duly organized, validly existing and in good standing
under the Laws of the jurisdiction of its formation, incorporation or
organization, as applicable, and has all requisite power and authority to own,
lease and operate its Assets and to carry on its applicable portion of the
Ahlstrom Business as presently conducted. Schedule 7.1 contains true, correct
and complete copies of the Charter Documents of each of the Ahlstrom Holding
Companies and the Ahlstrom Operating Companies (other than Karhula Services and
AT-Spiral), as amended and in effect on the date hereof and on the Closing Date.

         7.2      AUTHORIZATION, EXECUTION, ENFORCEABILITY AND NO CONFLICTS

                  (a) Each of Ahlstrom Corp, Ahlstrom Holding and any other
Ahlstrom Group Person has all requisite power and authority (corporate or
otherwise) to execute the Transaction Documents to which it is a party and any
and all instruments necessary or appropriate in order to effectuate fully the
terms and conditions of each such document and to perform and consummate the
transactions contemplated hereby and thereby. Each Transaction Document to which
Ahlstrom Corp, Ahlstrom Holding or any other Ahlstrom Group Person is a party,
and the performance of its respective obligations hereunder and thereunder, has
been duly and validly authorized by all requisite action on the part of Ahlstrom
Corp, Ahlstrom Holding or such other Ahlstrom Group Person, as applicable, and
each such Transaction Document to which Ahlstrom Corp, Ahlstrom Holding or such
other Ahlstrom Group Person is a party has been, or upon its execution on the
Closing Date will be, duly and validly executed by Ahlstrom Corp, Ahlstrom
Holding or such other Ahlstrom Group Person, and constitutes, or upon its
execution on the Closing Date will constitute, a valid and legally binding
obligation of Ahlstrom Corp, Ahlstrom Holding or such other Ahlstrom Group
Person, as applicable, enforceable against Ahlstrom Corp, Ahlstrom Holding or
such other Ahlstrom Group Person, as applicable, in accordance with its terms
and conditions, except as enforceability thereof may be limited by any
applicable bankruptcy, reorganization, insolvency or other Laws affecting
creditors' rights generally or by general principles of equity.

                  (b) The execution and performance by each of Ahlstrom Corp,
Ahlstrom Holding and any other Ahlstrom Group Person of each Transaction
Document to which it is a party, and the consummation of the transactions
contemplated hereby and thereby, will not: (i) violate any Law applicable to
Ahlstrom Corp, Ahlstrom Holding or such other Ahlstrom Group Person, or any of
the Assets of the Ahlstrom Group; or (ii) conflict with, or result in any breach
of, any of the terms, conditions or provisions of, or constitute (with due
notice or lapse of time, or both) a default or give rise to any right of
termination, cancellation or

                                       43
<PAGE>

acceleration, or result in the creation of any Encumbrance (other than a
Permitted Encumbrance) upon: (x) any of the Assets of the Ahlstrom Group; or (y)
under any provision of: (1) the Transaction Documents, (2) the Charter Documents
of Ahlstrom Corp, Ahlstrom Holdings or such other Ahlstrom Group Person, as
applicable, (3) any Permit required or issued in connection with the operation
of the Ahlstrom Business or (4) any other Agreement to which it is a party or by
which the Assets of the Ahlstrom Group is or may be bound, except for such
violations, conflicts or breaches of or with respect to (x), (y) (1), (3) and
(4) above that, individually or in the aggregate, have not had, and are not
reasonably expected to have, an Ahlstrom Material Adverse Effect. Except for the
Required Competition Filings and as set forth on Schedule 7.2, neither Ahlstrom
Corp nor any relevant Person of the Ahlstrom Group has been or is required to
give any notice to, obtain the consent of or make any filing with, any
Governmental Authority or any other Person, or obtain any material Permit, in
each case for the valid execution and performance by Ahlstrom Corp, Ahlstrom
Holdings or any other Ahlstrom Group Person of the Transaction Documents to
which it is a party.

         7.3      OWNERSHIP OF AHLSTROM HOLDING COMPANIES AND AHLSTROM OPERATING
COMPANIES

                  (a) Schedule 7.3 lists: (i) the authorized, issued and
outstanding shares of capital stock or equity interests of each of the Ahlstrom
Holding Companies and the Ahlstrom Operating Companies; (ii) the record and
beneficial holders of the authorized, issued and outstanding shares of capital
stock or equity interests of each of the Ahlstrom Holding Companies and the
Ahlstrom Operating Companies; and (iii) the number of shares or units, and
percentage of shares or units, of capital stock or equity interests of each such
holder. Other than as set forth on Schedule 7.3, Ahlstrom Corp has no
Affiliates, and no equity investment or other interest in any Person, engaged in
any aspect of the core/tube and core board business in the Territory.

                  (b) Except as set forth on Schedule 7.3, Ahlstrom Corp is, or
will be immediately prior to the Closing, the lawful direct or indirect record
and beneficial owner of all the shares of capital stock of, or other ownership
interests in, each of the Ahlstrom Holding Companies and the Ahlstrom Operating
Companies, and has good and marketable title to such shares of capital stock or
ownership interests, free and clear of all Encumbrances (other than Permitted
Encumbrances). Except as set forth on Schedule 7.3, there are no: (i)
outstanding subscriptions, preemptive rights, warrants, calls or options to
acquire, or instruments convertible into or exchangeable for, or Agreements or
understandings with respect to the sale or issuance of, shares of capital stock
or ownership interest of any of the Ahlstrom Holding Companies or the Ahlstrom
Operating Companies; (ii) Encumbrances (other than Permitted Encumbrances),
rights of first refusal, rights of first offer, proxies, voting trusts, or
voting Agreements with respect to the sale, issuance or

                                       44
<PAGE>

voting of any shares of capital stock or ownership interest of any of the
Ahlstrom Holding Companies or the Ahlstrom Operating Companies (whether
outstanding or issuable upon the conversion, exchange or exercise of outstanding
securities); or (iii) obligations to redeem, repurchase or otherwise acquire
shares of capital stock or ownership interest of any of the Ahlstrom Holding
Companies or the Ahlstrom Operating Companies, in each of (i), (ii) or (iii)
above, pursuant to any Law (other than any limitations or restrictions on
Transferability under any applicable securities Laws), any Charter Document of
any of the Ahlstrom Holding Companies or the Ahlstrom Operating Companies or any
Agreement to which any of the Ahlstrom Holding Companies or the Ahlstrom
Operating Companies is a party or may be bound.

                  (c) All shares of capital stock of, or other ownership
interests in, the Ahlstrom Holding Companies and the Ahlstrom Operating
Companies that are indirectly held by Ahlstrom Corp have been, or upon their
issuance on or prior to the Closing Date will be, duly authorized, validly
issued, outstanding and fully paid in (and such capital payments have not been
paid back).

                  (d) None of the Ahlstrom Holding Companies or the Ahlstrom
Operating Companies is a party to a company agreement (Unternehmensvertrag
within the meaning of the German Stock Corporation Act), except for those
agreements disclosed in Schedule 7.3 which will be validly terminated with
effect prior to or as of the Closing Date.

         7.4      BANKRUPTCY

                  No Ahlstrom Holding Company or Ahlstrom Operating Company is
involved in any Proceeding by or against it as a debtor before any Governmental
Authority under any insolvency, restructuring or debtors' relief act, or for the
appointment of a trustee, receiver, liquidator, assignee, sequestrator or other
similar official, or under any similar Law, for any part of its Assets.

         7.5      DISTRIBUTIONS

                  Except as contemplated by the Ahlstrom Reorganization, no
Distribution has been made since December 31, 2003 by or to any of the Ahlstrom
Holding Companies or the Ahlstrom Operating Companies.

         7.6      EMPLOYEE REMUNERATION

                  Schedule 7.6 lists the aggregate annual remuneration,
including, without limitation, bonuses and fringe benefits of each employee,
manager and director of each of the Ahlstrom Holding Companies and the Ahlstrom
Operating Companies (other than Karhula Services and AT-Spiral) due and accrued
for the

                                       45
<PAGE>

first quarter of the current fiscal year and paid in the most recently completed
fiscal year.

         7.7      FINANCIAL STATEMENTS

                  (a) Schedule 7.7 contains true, correct and complete copies of
the following (the "AHLSTROM FINANCIAL STATEMENTS"):

                           (i)      The unaudited consolidated balance sheet and
                                    profit and loss account of the Ahlstrom
                                    Holding Companies and the Ahlstrom Operating
                                    Companies as of December 31, 2003 and for
                                    the 12-month period then ended; and

                           (ii)     The pro forma unaudited consolidated balance
                                    sheet and profit and loss account of the
                                    Ahlstrom Holding Companies and the Ahlstrom
                                    Operating Companies as of December 31, 2003
                                    and for the 12-month period then ended,
                                    which balance sheet and profit and loss
                                    account shall reflect the results of the
                                    consummation of the transactions
                                    contemplated by the China Purchase Agreement
                                    as if such transactions were completed as of
                                    December 31, 2003.

                  (b) The Ahlstrom Financial Statements, together with the notes
thereto: (i) have been prepared in accordance with Ahlstrom Accounting
Principles, Applied on a Consistent Basis; (ii) have been prepared in accordance
with the books and records of each of the Ahlstrom Holding Companies and the
Ahlstrom Operating Companies, which books and records have been properly
maintained; and (iii) present fairly the financial condition and results of
operations of the Ahlstrom Holding Companies and Ahlstrom Operating Companies on
a consolidated basis, as of the date thereof and for the period covered thereby;
provided, however, that the Ahlstrom Financial Statements do not contain all
footnotes required under Ahlstrom Accounting Principles. Since December 31,
2003, there has been no change in any accounting principle, procedure or
practice followed by the Ahlstrom Holding Companies and the Ahlstrom Operating
Companies or in the method of applying such principle, procedure or practice.

         7.8      ABSENCE OF UNDISCLOSED LIABILITIES

                  No Ahlstrom Holding Company or Ahlstrom Operating Company has
any Liabilities, except: (i) Liabilities as set forth in the Ahlstrom Financial
Statements; (ii) Liabilities that need not be shown on the balance sheet under
Ahlstrom Accounting Principles and that arose in the Ordinary Course of
Business; (iii) Liabilities arising in the Ordinary Course of Business since
December 31, 2003;

                                       46
<PAGE>

(iv) Liabilities set forth on Schedule 7.8; or (v) Liabilities which are not,
and are not reasonably expected to become, material to the Ahlstrom Business.

         7.9      ABSENCE OF CHANGES

                  Except as set forth on Schedule 7.9 or as provided or
contemplated by the Transaction Documents (including, without limitation, as
contemplated by the Ahlstrom Reorganization), since December 31, 2003, each of
the Ahlstrom Holding Companies, the Ahlstrom Operating Companies and the
Ahlstrom Business has been operated in the Ordinary Course of Business and there
has not been:

                  (a) any event or condition, or any material transaction or
Agreement, which, individually or in the aggregate, has had, or is reasonably
expected to have, an Ahlstrom Material Adverse Effect;

                  (b) any act, omission of any act, activity or transaction, or
incurrence of Liability (by conduct or otherwise), or any damage, destruction or
Loss, whether or not covered by insurance, which, individually or in the
aggregate, has had, or is reasonably expected to have, an Ahlstrom Material
Adverse Effect;

                  (c) any issuance of any shares or ownership interests or any
options, warrants or other rights to subscribe for or purchase any of its shares
or ownership interests or any securities convertible into or exchangeable for
its shares or ownership interests by any Ahlstrom Holding Company or Ahlstrom
Operating Company;

                  (d) split, reclassification or other change in or of any of
the shares or ownership interests of any Ahlstrom Holding Company or Ahlstrom
Operating Company;

                  (e) amendment of the Charter Documents of any Ahlstrom Holding
Company or Ahlstrom Operating Company;

                  (f) any increase in, or prepayment of, the compensation
payable, or to become payable, by any Ahlstrom Holding Company or Ahlstrom
Operating Company to any of its directors, officers, managing directors,
managers, employees or agents, or enter into any bonus, insurance, pension or
other benefit plan, payment or arrangement for or with any of such directors,
officers, managing directors, managers, employees or agents, other than normal
salary increases in the Ordinary Course of Business;

                  (g) any lay-offs with respect to a significant part of the
workforce of any Ahlstrom Holding Company or Ahlstrom Operating Company;

                                       47
<PAGE>

                  (h) any incurrence of any Indebtedness, including Intercompany
Debt (other than Indebtedness incurred in the Ordinary Course of Business on
reasonable arms length terms), or direct or indirect provision of a Guarantee,
or any agreement to provide a Guarantee, or Indebtedness of any other Person;

                  (i) any cancellation of, or material change to, Indebtedness
owing to any Ahlstrom Holding Company or Ahlstrom Operating Company from any
Person or any Claims which any Ahlstrom Holding Company or Ahlstrom Operating
Company may possess, or any waiver or release of any material rights (other than
in the Ordinary Course of Business);

                  (j) any placement, or allowance to place, an Encumbrance
(other than a Permitted Encumbrance) on any Assets of any Ahlstrom Holding
Company or Ahlstrom Operating Company;

                  (k) any change in any method of accounting or accounting
practice or policy of any Ahlstrom Holding Company or Ahlstrom Operating
Company, except as required by Ahlstrom Accounting Principles, including,
without limitation, any change in its policies with respect to the payment of
accounts payable or other current Liabilities or the collection of accounts
receivable, including, without limitation, any acceleration or deferral of the
payment or collection thereof, as applicable;

                  (l) any Transfer of Intellectual Property (other than in the
Ordinary Course of Business) from or to any Ahlstrom Holding Company or Ahlstrom
Operating Company;

                  (m) any Transfer of a material portion of the Assets of any
Ahlstrom Holding Company or Ahlstrom Operating Company, or scrapping of a
material portion of the Assets of any Ahlstrom Holding Company or Ahlstrom
Operating Company as obsolete;

                  (n) any material change in the general manner in which any
Ahlstrom Holding Company or Ahlstrom Operating Company markets its products or
services;

                  (o) any commitments for capital expenditures of any Ahlstrom
Holding Company or Ahlstrom Operating Company in excess of EUR1,000,000 per
occurrence or EUR5,000,000 in the aggregate;

                  (p) any violation of any material Law or material Order; or

                  (q) any loan or advance to any members, stockholders or equity
holders, or officers, directors, managing directors, managers or to any other
Person of any Ahlstrom Holding Company or Ahlstrom Operating Company.

                                       48
<PAGE>

         7.10     OUTSTANDING BORROWINGS; INTERCOMPANY DEBT

                  Schedule 7.10 lists: (i) the amount of principal, interest and
other obligations of all Outstanding Borrowings and Intercompany Debt of each
Ahlstrom Holding Company and each Ahlstrom Operating Company as of December 31,
2003; (ii) the Encumbrances that relate to such Outstanding Borrowings and
Intercompany Debt; (iii) the name of each lender or party thereof; and (iv) the
amount of any unfunded commitments available in connection with such Outstanding
Borrowings and Intercompany Debt.

         7.11     RELATED PARTY TRANSACTIONS

                  Except as set forth on Schedule 7.11, and except for: (i)
compensation and payment of reimbursable expenses incurred in the Ordinary
Course of Business to regular employees of any Ahlstrom Holding Company or
Ahlstrom Operating Company; (ii) any individual amount not exceeding EUR100,000
per year; or (iii) sales of products in the Ordinary Course of Business on
arms-length terms, no current or former Affiliate of any Ahlstrom Holding
Company or Ahlstrom Operating Company, is now, or has been since December 31,
2003: (x) a party to any transaction or Agreement with any Ahlstrom Holding
Company or Ahlstrom Operating Company; (y) Indebted to any Ahlstrom Holding
Company or Ahlstrom Operating Company; or (z) the direct or indirect owner of an
interest in any Person which is a competitor, supplier or customer of any
Ahlstrom Holding Company or Ahlstrom Operating Company (other than
non-affiliated holdings in publicly held companies), nor, to the Actual
Knowledge of Ahlstrom Corp, does any such Person receive income from any source
other than any Ahlstrom Holding Company or Ahlstrom Operating Company which
should properly accrue to any Ahlstrom Holding Company or Ahlstrom Operating
Company. Except as set forth on Schedule 7.11, no current or former Affiliate of
any Ahlstrom Holding Company or Ahlstrom Operating Company provides a Guarantee
or is otherwise responsible for any Liability (including Indebtedness) of any
Ahlstrom Holding Company or Ahlstrom Operating Company.

         7.12     COMPLIANCE WITH LAWS

                  (a) Except as disclosed on Schedule 7.12, each of the Ahlstrom
Holding Companies and Ahlstrom Operating Companies has: (i) complied in all
material respects with, is in compliance in all material respects with and has
operated the Ahlstrom Business and maintained its Assets in compliance in all
material respects with, all Laws applicable to it and its applicable portion of
the Ahlstrom Business as currently conducted; and (ii) all Permits used or
necessary in the conduct of its applicable portion of the Ahlstrom Business,
except for such Permits the absence of which, individually or in the aggregate,
has not had, and is not reasonably expected to have, an Ahlstrom Material
Adverse Effect. Such

                                       49
<PAGE>

Permits described in clause (ii) are valid and in good standing and are in full
force and effect, no violations with respect to any thereof have occurred or are
or have been recorded and no Proceeding is pending or, to the Best Knowledge of
Ahlstrom Corp, threatened to revoke or limit any thereof.

                  (b) Schedule 7.12 contains a true, correct and complete list
of: (i) all such Permits described in paragraph (a) of this Section 7.12 (other
than Permits for Karhula Services and AT-Spiral); and (ii) all material Orders
under which each of the Ahlstrom Holding Companies and the Ahlstrom Operating
Companies (other than Orders for Karhula Services and AT-Spiral) are operating
or bound. To the Actual Knowledge of Ahlstrom Corp, there is no proposed change
in any applicable Law which would require any Ahlstrom Holding Company or
Ahlstrom Operating Company to obtain any Permits not set forth on Schedule 7.12
in order to conduct its applicable portion of the Ahlstrom Business as presently
conducted. Except as disclosed in Schedule 7.12, none of such Permits or Orders
shall be adversely affected as a result of Ahlstrom Corp's, any Ahlstrom Holding
Company's or Ahlstrom Operating Company's execution of, or the performance of
its obligations under, any Transaction Document to which it is a party, or the
consummation of the transactions contemplated hereby and thereby. No Ahlstrom
Holding Company or Ahlstrom Operating Company has received any opinion or
memorandum or legal advice from legal counsel to the effect that it is exposed,
from a legal standpoint, to any Liability or disadvantage, individually or in
the aggregate, which has had, or is reasonably expected to have, an Ahlstrom
Material Adverse Effect. To the Actual Knowledge of Ahlstrom Corp, no Ahlstrom
Holding Company or Ahlstrom Operating Company is aware of any proposed Law which
would prohibit or restrict it from, or otherwise materially adversely affect it
in, conducting its applicable portion of the Ahlstrom Business in any
jurisdiction in which it is now conducting the Ahlstrom Business.

         7.13     TAXES

                  (a) Each of the Ahlstrom Holding Companies and the Ahlstrom
Operating Companies has (or, in the case of Tax Returns becoming due after the
date hereof and on or before the Closing Date, will have prior to the Closing
Date) duly filed all Tax Returns, notices and other reports or filings required
to be filed by any of the Ahlstrom Holding Companies or the Ahlstrom Operating
Companies (collectively, "AHLSTROM TAX RETURNS") on or before the Closing Date
(including, without limitation, in connection with or as a result of the
Ahlstrom Reorganization) with respect to all applicable Taxes. All such Tax
Returns are (or, in the case of returns becoming due after the date hereof,
including, without limitation, in connection with or as a result of the Ahlstrom
Reorganization, will be) true and complete in all material respects.

                                       50
<PAGE>

                  (b) All Taxes which are required to be paid by each of the
Ahlstrom Holding Companies and the Ahlstrom Operating Companies before the
Closing Date have been or will be paid in full prior to the Closing Date and an
appropriate provision has been provided in respect of all Taxes that are not due
prior to the Closing Date and that relate to the time period through December
31, 2003 in the Ahlstrom Financial Statements.

                  (c) There is no investigation or Claim pending or, to the Best
Knowledge of Ahlstrom Corp, threatened in respect of any material Taxes for
which any of the Ahlstrom Holding Companies and the Ahlstrom Operating Companies
is, or is reasonably expected to become, liable. No Ahlstrom Holding Company or
Ahlstrom Operating Company has consented to any waivers or extensions of any
statute of limitations with respect to any taxable year of the Ahlstrom Group.

                  (d) No Ahlstrom Holding Company or Ahlstrom Operating Company
is a party to an Agreement or arrangement relating to the sharing, allocation or
payment of, indemnity or security for, Taxes, except for the Tax consolidation
Agreements (e.g., Organschaft) set forth on Schedule 7.13, which will be
terminated prior to the Closing Date.

                  (e) The execution and performance of this Contribution
Agreement and the Related Documents will not result in: (i) the imposition of
any Tax on or with respect to any Ahlstrom Holding Company or Ahlstrom Operating
Company, or their respective Assets; or (ii) the Loss by any Ahlstrom Holding
Company or Ahlstrom Operating Company of any Tax relief or Tax benefit other
than the loss of trade Tax loss carryforwards and Tax loss carryforwards or
other Tax attributes for which adequate provision has been made on the Ahlstrom
Financial Statements.

                  (f) No Ahlstrom Holding Company and no Ahlstrom Operating
Company has carried out any dealings with Affiliates on a non-arms length basis
that could be assessed by the relevant Governmental Authorities to constitute
hidden distributions of profits (verdeckte Gewinnausschuettung).

         7.14     REAL PROPERTY

                  (a) Schedule 7.14 lists all the Real Property used in the
Ahlstrom Business (the "AHLSTROM REAL PROPERTY") and specifies the owner of each
parcel thereof and sets forth a legal description for all such Real Property.
The Ahlstrom Real Property is suitable and adequate in all material respects for
the uses for which it is currently devoted. None of the Ahlstrom Holding
Companies and the Ahlstrom Operating Companies own, lease, sublease, license or
use any Real Property in the operation of the Ahlstrom Business other than the
Ahlstrom Real Property.

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<PAGE>

                  (b) Each of the Ahlstrom Holding Companies and the Ahlstrom
Operating Companies, as applicable, is the sole owner of good, valid and
marketable fee simple or comparable title to the Ahlstrom Real Property listed
in Schedule 7.14 as owned Ahlstrom Real Property and has valid and binding
rights under leases to the Ahlstrom Real Property listed in Schedule 7.14 as
leased Ahlstrom Real Property, in each case free and clear of all Encumbrances
(other than Permitted Encumbrances). Schedule 7.14 contains an accurate and
complete list of all mortgages and similar Encumbrances on the Ahlstrom Real
Property.

                  (c) All buildings, structures, fixtures and other improvements
on the Ahlstrom Real Property are: (i) in good repair, normal wear and tear
excepted, and free of material defects (latent or patent); and (ii) are suitable
and adequate in all material respects for the uses to which they are currently
devoted. All such buildings, structures, fixtures and improvements on the
Ahlstrom Real Property conform in all material respects to all material Laws.
The buildings, structures, fixtures and improvements on each parcel of Ahlstrom
Real Property lie entirely within the boundaries of such parcel of the Ahlstrom
Real Property as specified in the legal description set forth in Schedule 7.14,
and do not encroach in any material respects on any adjoining premises and no
structures of any kind encroach in any material respects on such Ahlstrom Real
Property.

                  (d) Except as set forth on Schedule 7.14: (i) none of the
Ahlstrom Real Property is subject to any material Agreement or other material
restriction of any nature whatsoever (recorded or unrecorded) preventing or
limiting in any material respects any Ahlstrom Holding Company's or Ahlstrom
Operating Company's right to convey or otherwise dispose of its interest in
same; and (ii) none of the Ahlstrom Real Property is subject to any material
Agreement or other material restriction of any nature whatsoever (recorded or
unrecorded) preventing or limiting in any material respects any Ahlstrom Holding
Company's or Ahlstrom Operating Companies' right to use it.

                  (e) No material portion of the Ahlstrom Real Property or any
building, structure, fixture or improvement thereon is the subject of, or
affected by, any condemnation or eminent domain Proceeding currently instituted
or pending, and to Ahlstrom Corp's Actual Knowledge, none of the foregoing will
be the subject of, or affected by, any such future Proceeding.

                  (f) The Ahlstrom Real Property has reasonably direct and
unobstructed access to material public roads and to reasonably adequate material
electric, gas, water, sewer and telephone lines, all of which are reasonably
adequate for the uses to which such Ahlstrom Real Property is currently devoted.

                  (g) Except as disclosed on Schedule 7.14, there are no Persons
in possession, or who have a right of possession of any portion of the Ahlstrom
Real

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<PAGE>

Property other than the Ahlstrom Holding Companies or the Ahlstrom Operating
Companies, whether as lessees, tenants at will or otherwise.

                  (h) Schedule 7.14 contains a complete and accurate copy of all
Real Property Leases relating to the Ahlstrom Real Property. Each Real Property
Lease entered into (whether as lessor or lessee) by each of the Ahlstrom Holding
Companies or the Ahlstrom Operating Companies is: (i) valid, binding and
enforceable in all material respects against the Ahlstrom Holding Companies and
the Ahlstrom Operating Companies, as applicable; and (ii) to Ahlstrom Corp's
Actual Knowledge, is valid, binding and enforceable in all material respects
against the other parties thereto in accordance with its terms, and is in full
force and effect in all material respects.

                  (i) None of the Ahlstrom Holding Companies or the Ahlstrom
Operating Companies are in material default under, or in material breach of, or
are otherwise materially delinquent in performance under any Real Property Lease
entered into (whether as lessor or lessee) by the Ahlstrom Holding Companies or
the Ahlstrom Operating Companies, and, to Ahlstrom Corp's Actual Knowledge, no
event has occurred which, with due notice or lapse of time, or both, would
constitute such a default.

         7.15     ENVIRONMENTAL AND SAFETY

                  (a) Each of the Ahlstrom Holding Companies and the Ahlstrom
Operating Companies has complied in all material respects with, and each such
company and all of the Ahlstrom Real Property is in compliance in all material
respects with, all material Environmental and Safety Requirements; and there are
no Proceedings pending or, to the Best Knowledge of Ahlstrom Corp, threatened
against any Ahlstrom Holding Company or Ahlstrom Operating Company alleging any
failure to so comply or involving any Environmental and Safety Requirement issue
with respect to Ahlstrom its past operations or any Real Property of any
Ahlstrom Holding Company or Ahlstrom Operating Company.

                  (b) No Ahlstrom Holding Company or Ahlstrom Operating Company
has any material Liability arising under any Environmental and Safety
Requirements.

                  (c) Except as set forth on Schedule 7.15, no Ahlstrom Holding
Company or Ahlstrom Operating Company has received any written notice or report
with respect to it or its Real Property regarding any: (i) actual or alleged
violation of Environmental and Safety Requirements; or (ii) actual or potential
Liability arising under Environmental and Safety Requirements, including any
investigatory, remedial or corrective obligation, in each of (i) and (ii),
during the last three calendar years.

                                       53
<PAGE>

                  (d) No Ahlstrom Holding Company or Ahlstrom Operating Company
has assumed or undertaken any material Liability of any other Person under any
Environmental and Safety Requirements.

                  (e) No Ahlstrom Holding Company or Ahlstrom Operating Company
has treated, stored, disposed of, arranged for or permitted the disposal of,
transported, handled or released any substance, or owned or operated any Real
Property in a manner that has given rise to material Liabilities of any Ahlstrom
Holding Company or Ahlstrom Operating Company pursuant to any Environmental and
Safety Requirement, including any material Liability for response costs,
corrective action costs, personal injury, property damage, natural resources
damage or attorney fees, or any investigative, corrective or remedial
obligations.

                  (f) Schedule 7.15 sets forth all environmental matters for
which a financial reserve has been made on the Ahlstrom Financial Statements and
the amount of such reserve.

         7.16     TITLE TO ASSETS

                  Except for the leased Assets listed in Schedule 7.19 and
subject to Section 7.14, each of the Ahlstrom Holding Companies and the Ahlstrom
Operating Companies has, or upon consummation of the Ahlstrom Reorganization
will have at the Closing Date, good, valid and marketable title to all Assets
used in its applicable portion of the Ahlstrom Business, free and clear of all
Encumbrances (other than Permitted Encumbrances). All personal property of the
Ahlstrom Holding Companies and Ahlstrom Operating Companies is in normal
operating condition and repair, normal wear and tear excepted, and is suitable
and adequate for the uses for which it is used. All inventory of the Ahlstrom
Holding Companies and Ahlstrom Operating Companies consists of items which are
good and merchantable and of a quality and quantity presently usable and
saleable in the Ordinary Course of Business, subject to any reserves properly
reflected on the Ahlstrom Financial Statements under Ahlstrom Accounting
Principles.

         7.17     INSURANCE

                  All policies of Assets, fire, hazard, casualty, liability,
life, and other forms of insurance of any kind owned or held by, or for the
benefit of, the Ahlstrom Holding Companies and the Ahlstrom Operating Companies:
(i) are in full force and effect and, to the Best Knowledge of Ahlstrom Corp, no
grounds for termination of such policies exist; (ii) are sufficient for
compliance by each of the Ahlstrom Holding Companies and the Ahlstrom Operating
Companies with all requirements of applicable Law and of all Agreements which
require any of the Ahlstrom Holding Companies or the Ahlstrom Operating
Companies to acquire and/or maintain insurance; (iii) are valid and enforceable
against the insurer in all material

                                       54
<PAGE>

respects; and (iv) insure against risks of the kind customarily insured against
and in amounts customarily carried by companies similarly situated and by
companies engaged in similar businesses and owning similar properties, and
provide adequate insurance coverage for the Ahlstrom Business and Assets of the
Ahlstrom Holding Companies and the Ahlstrom Operating Companies. All premium and
other payments required to be paid by, or on behalf of, each of the Ahlstrom
Holding Companies and the Ahlstrom Operating Companies pursuant to such policies
have been fully and timely made.

         7.18     INTELLECTUAL PROPERTY

                  (a) Schedule 7.18 contains a list: (i) of all Intellectual
Property owned by each of the Ahlstrom Holding Companies and the Ahlstrom
Operating Companies in respect of which a registration has been granted, and in
respect of which a registration has been applied for, in each case specifying,
as applicable (A) the nature of such Intellectual Property, (B) the owner of
such Intellectual Property, (C) the jurisdictions in which such Intellectual
Property has been registered, or in which an application for registration has
been filed, and the registration or application numbers and (D) any licenses
that have been granted with respect to such Intellectual Property; and (ii) of
all licenses pursuant to which each of the Ahlstrom Holding Companies and the
Ahlstrom Operating Companies has been granted the right to use Intellectual
Property owned by another Person, in each case specifying (A) the licensor, (B)
the duration of the license and (C) the royalties payable. The Intellectual
Property listed on Schedule 7.18 is all Intellectual Property necessary to
conduct the Ahlstrom Business as currently conducted.

                  (b) Each of the Ahlstrom Holding Companies and the Ahlstrom
Operating Companies: (i) owns, or has a valid license to use, all Intellectual
Property used by it in the Ordinary Course of Business in the Ahlstrom Business,
except where the failure to own, or have a valid license to use, such
Intellectual Property, individually or in the aggregate, has not had, and is not
reasonably expected to have, an Ahlstrom Material Adverse Effect; and (ii) has
made, or has had made on its behalf, all payments as and when required to
validly maintain all registrations of, its ownership of, or its license to use,
such Intellectual Property in full force and effect with any Governmental
Authority or other Person, as the case may be. To the Best Knowledge of Ahlstrom
Corp, there exist no grounds for termination of the Ahlstrom Holding Companies'
or the Ahlstrom Operating Companies' ownership rights in, or licenses to use,
the Intellectual Property referred to in the preceding sentence, in particular,
there are no pending challenges of any Intellectual Property owned by an
Ahlstrom Holding Company or an Ahlstrom Operating Company, and to Ahlstrom
Corp's Best Knowledge, no such challenges are threatened.

                                       55
<PAGE>

                  (c) Other than the restrictions contained in the License
Agreement, dated February 16, 2000, between Ahlstrom Alcore Oy, on the one hand,
and Selectube and Abzac Inc., on the other hand, no Ahlstrom Holding Company or
Ahlstrom Operating Company has granted an exclusive license with respect to any
Intellectual Property used in the Ahlstrom Business to any third Person (other
than another Ahlstrom Holding Company or Ahlstrom Operating Company).

                  (d) No Ahlstrom Holding Company or Ahlstrom Operating Company
has any Actual Knowledge of, nor has it received any notice to the effect, that
any product that any Ahlstrom Holding Company or Ahlstrom Operating Company
sells or that any service any Ahlstrom Holding Company or Ahlstrom Operating
Company renders, or that the manufacture, distribution, marketing, sale or use
of any such product or service, may or is Claimed to infringe any Intellectual
Property right of another.

         7.19     LEASED PERSONAL PROPERTY

                  Schedule 7.19 lists every lease, sublease and Agreement
involving aggregate annual lease payments exceeding EUR30,000 per lease, per
year (net of ancillary costs) under which any of the Ahlstrom Holding Companies
and the Ahlstrom Operating Companies is lessee or lessor of any material Asset,
or holds, manages or operates any material Asset owned by any third party, or
under which any material Asset owned by any of the Ahlstrom Holding Companies
and Ahlstrom Operating Companies is held, operated or managed by a third party.
Each of the Ahlstrom Holding Companies and the Ahlstrom Operating Companies is
the owner and holder of all rights under leases used by it in the Ahlstrom
Business. Each such lease, sublease and other Agreement is in full force and
effect and constitutes a legal, valid and binding obligation of, and is legally
enforceable against, the respective Parties and grants the leasehold interest it
purports to grant free and clear of all Encumbrances (other than Permitted
Encumbrances). Each of the Ahlstrom Holding Companies and Ahlstrom Operating
Companies has in all material respects performed all obligations thereunder
required to be performed by any of them to date. No Party is in default in any
material respect under any of the foregoing, and there has not occurred any
event which (whether with or without notice, lapse of time or the happening or
occurrence of any other event) would constitute such a material default.

         7.20     CERTAIN MATERIAL AGREEMENTS

                  (a) Subject to Section 7.14, except for the Agreements set
forth on Schedule 7.20 ("AHLSTROM MATERIAL AGREEMENTS"), no Ahlstrom Holding
Company or Ahlstrom Operating Company is a party to any written or oral:

                                       56
<PAGE>

                           (i)      Agreement for the employment or retention
                                    of, whether on a full-time, part-time,
                                    consulting or other basis, or understanding
                                    with, any of the directors, top five
                                    officers, managing directors, general
                                    managers or country managers of the Ahlstrom
                                    Business, any Ahlstrom Holding Company or
                                    Ahlstrom Operating Company;

                           (ii)     Agreement relating to Indebtedness or to the
                                    mortgaging, pledging or otherwise placing an
                                    Encumbrance (other than a Permitted
                                    Encumbrance) on any Asset of the Ahlstrom
                                    Business, or any Ahlstrom Holding Company or
                                    Ahlstrom Operating Company, with a fair
                                    market value in excess of EUR50,000;

                           (iii)    Agreement preventing or otherwise
                                    restricting the right of any Ahlstrom
                                    Holding Company or Ahlstrom Operating
                                    Company to make or receive Distributions;

                           (iv)     Agreement involving the sale of the accounts
                                    receivable of any Ahlstrom Holding Company
                                    or Ahlstrom Operating Company to any other
                                    Person;

                           (v)      Agreement with respect to the investing of
                                    funds, including, without limitation, any
                                    hedging Agreement;

                           (vi)     Agreement under which any Ahlstrom Holding
                                    Company or Ahlstrom Operating Company is the
                                    lessor of, or permits any third Person to
                                    hold or operate, any real or personal
                                    property owned or controlled by any Ahlstrom
                                    Holding Company or Ahlstrom Operating
                                    Company in excess of EUR30,000;

                           (vii)    assignment, license, indemnification or
                                    other Agreement with respect to any form of
                                    intangible property with Third Parties,
                                    including, without limitation, any
                                    Intellectual Property;

                           (viii)   Agreement or group of related Agreements
                                    with the same Person for the sale of Assets
                                    or services which generated in excess of
                                    EUR100,000 in revenues in the most recent
                                    12-month period or is reasonably expected to
                                    generate in excess of EUR100,000 in revenues
                                    in any 12-month period ending after the date
                                    hereof;

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<PAGE>

                           (ix)     non-competition agreement which limits any
                                    Ahlstrom Holding Company or Ahlstrom
                                    Operating Company from freely engaging in
                                    any business anywhere in the world;

                           (x)      Agreement relating to the purchase,
                                    distribution, marketing, advertising or sale
                                    of any Ahlstrom Holding Company's or
                                    Ahlstrom Operating Company's or any other
                                    Person's products or services (other than
                                    Agreements entered into in the Ordinary
                                    Course of Business); or

                           (xi)     other than Agreements described and
                                    disclosed in subsections (i) through (x)
                                    above, Agreement pursuant to which any
                                    Ahlstrom Holding Company or Ahlstrom
                                    Operating Company has Liabilities or is
                                    required to make or give, or entitled to
                                    receive, aggregate payments or other value
                                    in excess of EUR100,000.

                  (b) All Ahlstrom Material Agreements are, or following the
Ahlstrom Reorganization will be, an Asset of an Ahlstrom Holding Company or an
Ahlstrom Operating Company, and no other Ahlstrom Group company is, or will be
following the Ahlstrom Reorganization, a party to any such Ahlstrom Material
Agreement.

                  (c) Except as specifically disclosed in Schedule 7.20, each of
the Ahlstrom Holding Companies and Ahlstrom Operating Companies has performed in
all material respects all obligations required to be performed by it, and is not
in default under or in breach of, nor in receipt of any Claim of default or
breach under, any Ahlstrom Material Agreement to which it is a party or by which
any of its Assets may be bound, and, to the Actual Knowledge of Ahlstrom Corp,
no event has occurred which with the passage of time or the giving of notice or
both would result in such a material default or breach under any such Ahlstrom
Material Agreement. To the Actual Knowledge of Ahlstrom Corp, no other party to
any Ahlstrom Material Agreement to which any of the Ahlstrom Holding Companies
or the Ahlstrom Operating Companies is a party, or by which any of their Assets
may be bound, is in material default under or in breach of any Ahlstrom Material
Agreements, and no event has occurred which with the passage of time or giving
of notice or both would result in a material default or breach by such other
party under any Ahlstrom Material Agreement. There has been made available to
Ahlstrom Corp in the Ahlstrom Data Room: (i) a true and complete copy of each
written Ahlstrom Material Agreement, together with all amendments, waivers or
other changes thereto; and (ii) a true and complete description of the material
terms of all oral Ahlstrom Material Agreements.

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<PAGE>

         7.21     LITIGATION; DISPUTES

                  Except as (x) set forth on Schedule 7.21 and (y) for matters
which have not resulted, and could not reasonably be expected to result, in a
fine or other award of damages in excess of EUR100,000, there are no: (i)
Proceedings pending (for which proper service has been made) against or
involving any of the Ahlstrom Holding Companies or the Ahlstrom Operating
Companies, whether at law or in equity, whether civil or criminal in nature or
by or before any Governmental Authority; (ii) customer Claims of any nature
against any of the Ahlstrom Holding Companies or the Ahlstrom Operating
Companies; or (iii) Orders of any Governmental Authority with respect to or
involving any of the Ahlstrom Holding Companies and Ahlstrom Operating
Companies, nor, in the case of (i), (ii) or (iii), to the Best Knowledge of
Ahlstrom Corp, does there exist any basis for any such Proceeding, Claim or
Order, or has any such Proceeding, Claim or Order been threatened.

         7.22     LABOR RELATIONS

                  (a) Except as set forth on Schedule 7.22, there are no
strikes, work stoppages, or other disputes pending or, to the Best Knowledge of
Ahlstrom Corp, threatened, or reasonably anticipated between any of the Ahlstrom
Holding Companies or the Ahlstrom Operating Companies and: (i) any current or
former employees of any of the Ahlstrom Holding Companies or the Ahlstrom
Operating Companies involving amounts, individually or in the aggregate,
exceeding EUR100,000; (ii) any union, employee representatives or other
collective bargaining unit representing employees of the Ahlstrom Holding
Companies or the Ahlstrom Operating Companies; or (iii) any social security
Governmental Authority.

                  (b) No Ahlstrom Holding Company or Ahlstrom Operating Company
has, or is obligated with respect to, any stock option, stock bonus, phantom
stock plan, scheme or similar arrangement. Any unfunded pension Liability
arrangements for present or former employees, directors, officers, managing
directors, managers or workers of each of the Ahlstrom Holding Companies and the
Ahlstrom Operating Companies is covered by adequate reserves in the Ahlstrom
Financial Statements, and any other pension Liability is fully funded and
complies with all statutory and regulatory funding obligations in respect of all
categories of member.

                  (c) No Ahlstrom Holding Company or Ahlstrom Operating Company
has any consulting arrangements with their respective directors.

                  (d) Each of the Ahlstrom Holding Companies and the Ahlstrom
Operating Companies has complied, and is in compliance with, in all material
respects, all Laws relating to employment, workers, the workplace, the
termination

                                       59
<PAGE>

of employment or income tax, wage withholding tax or social security matters,
including, without limitation, provisions relating to wages, hours, collective
bargaining, employee representation, consultation, safety and health, work
authorization, equal employment opportunity, discrimination, immigration,
withholding, unemployment compensation, worker's compensation, employee privacy
and right to know and social security contributions.

                  (e) Except as set forth in Schedule 7.22 and without limiting
the generality of the foregoing, no Ahlstrom Holding Company or Ahlstrom
Operating Company is a party to any existing Agreement with an employee,
officer, director, managing director, manager or agent which in case of
termination could result in compensation payments in an amount exceeding
EUR50,000.

                  (f) The consummation of the transactions contemplated in this
Contribution Agreement (including the Ahlstrom Reorganization) will not cause
any Ahlstrom Holding Company or Ahlstrom Operating Company to incur or suffer
any Liability relating to, or obligation to pay, severance, termination, social
security or other payments (including interest, penalties and charges relating
thereto) to any Person.

                  (g) Except as set forth in Schedule 7.22, or as imposed by
applicable Law, no Ahlstrom Holding Company or Ahlstrom Operating Company is a
party to an Agreement or arrangement with any union, works council, other
employee representation body or employee representatives, limiting its right to
consummate the restructurings contemplated by the Business Plan, including the
closure of any plants or other facilities, relocation or termination of
employees.

         7.23     INVESTMENT REPRESENTATIONS

                  Ahlstrom Holding is acquiring the Ahlstrom Shares hereunder,
for its own account, for investment and not with a view to the distribution
thereof in violation of applicable securities Laws.

         7.24     SUBSIDIES

                  Schedule 7.24 contains a complete and correct list of all
subsidies in an amount of EUR100,000 or more granted or awarded to any of the
Ahlstrom Holding Companies or Ahlstrom Operating Companies or any of their
predecessors during the last five calendar years in respect of the relevant
portion of the Ahlstrom Business. Neither the Transaction (including the
Ahlstrom Reorganization) nor the measures contemplated under the Business Plan
will result in an obligation to repay (or lose the award) of any such subsidies.

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<PAGE>

         7.25     COMPLETENESS OF CONTRIBUTION

                  Following the Ahlstrom Reorganization, all Assets, Agreements
and employees used in the conduct of the Ahlstrom Business as it is presently
conducted will have been Transferred to the Ahlstrom Holding Companies and the
Ahlstrom Operating Companies.

8.       CONDITIONS TO OBLIGATION OF SONOCO PRODUCTS

         The obligation of Sonoco Products to proceed with the Closing, and to
consummate the transactions contemplated hereby and by each Related Document, is
subject to the fulfillment or waiver by Sonoco Products (to the extent such
condition can be waived), at or prior to the Closing, of each of the following
conditions precedent:

         8.1      REPRESENTATIONS AND WARRANTIES

                  The representations and warranties given by Ahlstrom Corp and
any other Ahlstrom Group Person party to a Transaction Document, to Sonoco
Products or any other Sonoco Group Person in this Contribution Agreement and in
each Related Document, as the case may be, shall be true and correct in all
respects on the date hereof and at and as of the Closing Date (except for any
changes expressly contemplated or permitted hereby), as if made at and as of
such date (except for those representations and warranties which address matters
only as of a particular date, which representations and warranties shall be true
and correct as of such date); provided, however, that the condition precedent
provided in this Section 8.1 shall be deemed to be met unless the failure of the
representations and warranties given by Ahlstrom Corp and any other Ahlstrom
Group Person party to a Transaction Document to be so true and correct results
in, has resulted in, or could reasonably be expected to result in, individually
or in the aggregate, a diminution in value of, Indebtedness of, or a Claim or
Loss applicable to, the Ahlstrom Business in excess of EUR8,500,000.

         8.2      PERFORMANCE

                  Each of Ahlstrom Corp and its Affiliates shall have performed
and complied in all material respects with all of its obligations, agreements
and covenants required by this Contribution Agreement to be performed or
complied with by Ahlstrom Corp and its Affiliates on or prior to the Closing
Date, including, without limitation, its obligations, agreements and covenants
set forth in Section 3.2, which shall have been performed in all respects.

                                       61
<PAGE>

         8.3      LEGAL PROCEEDINGS

                  There shall not be: (i) any Order of any nature issued by a
Governmental Authority with competent jurisdiction directing that the
transactions provided for herein or any aspect of them not be consummated as
herein provided; or (ii) any Proceeding pending wherein an unfavorable Order
would prevent the performance of this Contribution Agreement or any of the
Related Documents, or the consummation of any aspect of the transactions or
events contemplated hereby or thereby, declare unlawful any aspect of the
transactions or events contemplated by this Contribution Agreement or any of the
Related Documents or cause any aspect of the transactions contemplated by this
Contribution Agreement or any of the Related Documents to be rescinded.

         8.4      CHANGE IN LAW

                  As of the Closing Date, there shall not have been any change
in any Law that would prevent the consummation of the transactions contemplated
by this Contribution Agreement or any of the Related Documents.

         8.5      ABSENCE OF AHLSTROM MATERIAL ADVERSE EFFECT

                  During the Interim Period, there shall not have occurred any
Ahlstrom Material Adverse Effect, or any other material adverse change in the
Assets, rights, Liabilities, financial condition or affairs of the Ahlstrom
Business (other than (i) changes or conditions affecting the paper core/tube and
core board industry generally, (ii) changes in macro-economic, regulatory or
political conditions generally or (iii) changes resulting from a decision of a
customer of the Ahlstrom Business not to continue to conduct business with any
Ahlstrom Holding Company or Ahlstrom Operating Company), that, individually or
in the aggregate, have resulted, or are reasonably expected to result, in a
diminution in value of, Indebtedness of, or a Claim or Loss applicable to, the
Ahlstrom Business in excess of EUR8,500,000.

         8.6      REQUIRED CONSENTS

                  All of the Required Consents shall have been obtained and be
in full force and effect on the Closing Date.

         8.7      REQUIRED COMPETITION FILINGS

                  All of the Required Competition Filings shall have been made
or given and approved, authorized, cleared or exempted by the applicable
Governmental Authorities.

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<PAGE>

         8.8      AHLSTROM REORGANIZATION

                  The Ahlstrom Reorganization shall have been completed pursuant
to Section 5.1(b).

         8.9      CHINA PURCHASE

                  The transaction contemplated by the China Purchase Agreement
shall have been simultaneously consummated with the transactions contemplated
hereby.

         8.10     WORKS COUNCIL CONSULTATION

                  The contribution of the paper plant located at Aalten, The
Netherlands to the Joint Venture (the "AALTEN CONTRIBUTION") by way of
contribution by Sonoco Luxco to the Joint Venture of the shares it owns in
Sonoco Netherlands BV, shall not be consummated until Sonoco Netherlands BV
shall have complied with its obligations under Article 24 of the Works Council
Act of The Netherlands (the "WOR ACT"), and the works council of Sonoco
Netherlands BV shall have been informed about the Joint Venture and the
consequences thereof.

9.       CONDITIONS TO OBLIGATION OF AHLSTROM CORP

         The obligation of Ahlstrom Corp to proceed with the Closing, and to
consummate the transactions contemplated hereby and by each Related Document, is
subject to the fulfillment or waiver by Ahlstrom Corp (to the extent such
condition can be waived), at or prior to the Closing, of each of the following
conditions precedent:

         9.1      REPRESENTATIONS AND WARRANTIES

                  The representations and warranties given by Sonoco Products,
and any other Sonoco Group Person party to a Transaction Document, to Ahlstrom
Corp or any other Ahlstrom Group Person in this Contribution Agreement and in
each Related Document, as the case may be, shall be true and correct in all
respects on the date hereof and at and as of the Closing Date (except for any
changes expressly contemplated or permitted hereby), as if made at and as of
such date (except for those representations and warranties which address matters
only as of a particular date, which representations and warranties shall be true
and correct as of such date); provided, however, that the condition precedent
provided in this Section 9.1 shall be deemed to be met unless the failure of the
representations and warranties given by Sonoco Products and any other Sonoco
Group Person party to a Transaction Document to be so true and correct results
in, has resulted in, or could reasonably be expected to result in, individually
or in the aggregate, a diminution in

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value of, Indebtedness of, or a Claim or Loss applicable to, the Sonoco Business
in excess of EUR8,500,000.

         9.2      PERFORMANCE

                  Each of Sonoco Products and its Affiliates shall have
performed and complied in all material respects with all of its obligations,
agreements and covenants required by this Contribution Agreement to be performed
or complied with by Sonoco Products and its Affiliates on or prior to the
Closing Date, including, without limitation, its obligations, agreements and
covenants set forth in Section 3.2, which shall have been performed in all
respects.

         9.3      LEGAL PROCEEDINGS

                  There shall not be: (i) any Order of any nature issued by a
Governmental Authority with competent jurisdiction directing that the
transactions provided for herein or any aspect of them not be consummated as
herein provided; or (ii) any Proceeding pending wherein an unfavorable Order
would prevent the performance of this Contribution Agreement or any of the
Related Documents or the consummation of any aspect of the transactions or
events contemplated hereby or thereby, declare unlawful any aspect of the
transactions or events contemplated by this Contribution Agreement or any of the
Related Documents or cause any aspect of the transactions contemplated by this
Contribution Agreement or any of the Related Documents to be rescinded.

         9.4      CHANGE IN LAW

                  As of the Closing Date, there shall not have been any change
in any Law that would prevent the consummation of the transactions contemplated
by this Contribution Agreement or any of the Related Documents.

         9.5      ABSENCE OF SONOCO MATERIAL ADVERSE EFFECT

                  During the Interim Period, there shall not have occurred any
Sonoco Material Adverse Effect, or any other material adverse change in the
Assets, rights, Liabilities, financial condition or affairs of the Sonoco
Business (other than (i) changes or conditions affecting the paper core/tube and
core board industry generally, (ii) changes in macro-economic, regulatory or
political conditions generally or (iii) changes resulting from a decision of any
customer of the Sonoco Business not to continue to conduct business with any
Sonoco Holding Company or Sonoco Operating Company), that, individually or in
the aggregate, have resulted, or are reasonably expected to result, in a
diminution in value of, Indebtedness of, or a Claim or Loss applicable to, the
Sonoco Business in excess of EUR8,500,000.

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         9.6      REQUIRED CONSENTS

                  All of the Required Consents shall have been obtained and be
in full force and effect on the Closing Date.

         9.7      REQUIRED COMPETITION FILINGS

                  All of the Required Competition Filings shall have been made
or given and approved, authorized, cleared or exempted by the applicable
Governmental Authorities.

         9.8      SONOCO REORGANIZATION

                  The Sonoco Reorganization shall have been completed pursuant
to Section 5.1(a).

         9.9      CHINA PURCHASE
                  The transaction contemplated by the China Purchase Agreement
shall have been simultaneously consummated with the transactions contemplated
hereby.

         9.10     WORKS COUNCIL CONSULTATION

                  The Aalten Contribution shall not be consummated until Sonoco
Netherlands BV shall have complied with its obligations under the WOR Act, and
the works council of Sonoco Netherlands BV shall have been informed about the
Joint Venture and the consequences thereof.

10.      SURVIVAL; INDEMNIFICATION; REMEDIES

         10.1     SURVIVAL OF REPRESENTATIONS AND WARRANTIES

                  (a) Claims for breach of the representations and warranties
contained in this Contribution Agreement and Section 5 of the SDI IP License
Agreement shall survive the Closing until (verjaehren) 24 months after the
Closing Date; provided, however, that: (i) Claims for breach of the
representations and warranties contained in Sections 6.1, 6.2, 6.3, 7.1, 7.2 and
7.3 of this Contribution Agreement shall survive the Closing until ten years
after the Closing Date; (ii) Claims for breach of the representations and
warranties contained in Sections 6.15 and 7.15 of this Contribution Agreement
shall survive the Closing until seven years after the Closing Date; and (iii)
Claims for breach of the representations and warranties contained in Sections
6.13 and 7.13 of this Contribution Agreement shall survive the Closing until the
ninetieth day after the expiration of the respective assessment period
applicable to the matters covered thereby. The covenants and

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other agreements of the Parties contained in this Contribution Agreement shall
survive the Closing Date until they are otherwise terminated by their terms. The
period from the Closing until the date upon which any representation, warranty,
covenant or agreement contained herein shall terminate is referred to as the
"SURVIVAL PERIOD."

                  (b) No Sonoco Indemnified Person or Ahlstrom Indemnified
Person shall be entitled to make any Claim with respect to such representations,
warranties, covenants or agreements after the expiration of the applicable
Survival Period, if any, except that each Claim initiated by a Sonoco
Indemnified Person or Ahlstrom Indemnified Person, as the case may be, prior to
the expiration of the applicable Survival Period shall survive until it is
settled or resolved. In addition: (i) no Sonoco Indemnified Person shall be
entitled to make any Claim with respect to representations, warranties,
covenants or agreements of Ahlstrom Corp or any other Ahlstrom Group Person at
any time after Sonoco Products ceases, directly or indirectly, to be a
shareholder of the Joint Venture; and (ii) no Ahlstrom Indemnified Person shall
be entitled to make any Claim with respect to representations, warranties,
covenants or agreements of Sonoco Products or any Sonoco Group Person at any
time after Ahlstrom Corp ceases, directly or indirectly, to be a shareholder of
the Joint Venture.

                  (c) The Representations and warranties contained in this
Contribution Agreement and Section 5 of the SDI IP License Agreement shall
survive the execution of the Transaction Documents and the consummation of the
transactions contemplated hereby and all indemnification rights hereunder shall
survive the execution of the Transaction Documents and the consummation of the
transactions contemplated hereby and thereby until the applicable Survival
Period.

         10.2     AGREEMENT OF SONOCO PRODUCTS TO INDEMNIFY

                  Sonoco Products shall indemnify, defend and hold harmless the
Ahlstrom Indemnified Persons from and against all Losses in connection with,
related to or arising out of:

                  (a) the untruth, inaccuracy or breach of any representation or
warranty given or made by Sonoco Products or any Sonoco Group Person pursuant to
this Contribution Agreement or in Section 5 of the SDI IP License Agreement;

                  (b) any nonfulfillment or breach of any covenant or agreement
on the part of Sonoco Products or any Sonoco Group Person contained in this
Contribution Agreement;

                  (c) any Claim by any third party (including Governmental
Authorities) against or affecting the Joint Venture or any Sonoco Holding
Company or Sonoco Operating Company which, if successful, would give rise to or
relate to a

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<PAGE>

breach of: (i) any of the representations or warranties on the part of Sonoco
Products or any Sonoco Group Person referred to in paragraph (a) above at the
time made; or (ii) covenants or agreements of Sonoco Products or any Sonoco
Group Person referred to in paragraph (b) above;

                  (d) any Claim by any third party (including Governmental
Authorities) or any incurrence of any Loss by any Ahlstrom Indemnified Person
for, or that arose from or in connection with, or is directly or indirectly
related to, any Sonoco Excluded Asset or Liability;

                  (e) any Losses sustained or suffered by any Ahlstrom
Indemnified Person, including Claims sustained or suffered by any Ahlstrom
Indemnified Person, (whether by, against or relating to Sonoco Products or any
other Person, including without limitation a Governmental Authority) and
arising, directly or indirectly, from the Sonoco Reorganization including,
without limitation, any Tax or employment restructuring indemnities arising in
connection with or triggered, directly or indirectly, by the Sonoco
Reorganization and to be borne by the Joint Venture or any of its Affiliates;

                  (f) without prejudice to Section 6.3(d), the obligation of a
Sonoco Holding Company or a Sonoco Operating Company to reimburse Losses of a
Sonoco Group company or to Transfer its profits to a Sonoco Group company under
a company agreement (Unternehmensvertrag within the meaning of the German Stock
Corporation Act), except if such Sonoco Group company is a Sonoco Holding
Company or a Sonoco Operating Company, or if (and to the extent that) such
obligation is reflected in the Sonoco Financial Statements;

                  (g) without prejudice to Section 6.13, all Taxes paid and to
be paid by the Sonoco Holding Companies or the Sonoco Operating Companies since
December 31, 2003 (including under Tax consolidation arrangements (e.g.,
Organschaft) with other Sonoco Group companies) that relate to the time period
through December 31, 2003, except if and to the extent that such Taxes were
provided for in the Sonoco Financial Statements;

                  (h) any Liability arising out of, or related to, Sonoco SAS's
ownership interest in, or sale of, shares of Papeteries du Rhin SA; or

                  (i) any Liability arising as a result of the Joint Venture's
or its Affiliates' failure to fulfill its obligations under the Demolli Put or
the Demolli Call (each as defined in the Shareholders' Agreement) due to the
failure to obtain required approval from, or a prohibition by, a Governmental
Authority responsible for enforcing applicable competition laws;

                           provided, however, that: (i) Sonoco Products shall
not be Liable under Sections 10.2(a) or 10.2(c)(i) until the aggregate amount of
Losses with

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<PAGE>

respect to the matters referred to in Sections 10.2(a) and 10.2(c)(i) exceeds
EUR750,000, and then to the extent of Losses incurred in excess of such amount
only, provided, that items of Loss that are individually in an amount less than
EUR37,500 shall not be applied against such EUR750,000 amount; (ii) Sonoco
Products' maximum Liability under Sections 10.2(a) and 10.2(c)(i) shall not
exceed EUR25,000,000 in the aggregate; and (iii) Sonoco Products shall not be
Liable for any matter disclosed in the Schedules to this Contribution Agreement.

         10.3     AGREEMENT OF AHLSTROM CORP TO INDEMNIFY

                  Ahlstrom Corp shall indemnify, defend and hold harmless the
Sonoco Indemnified Persons from and against all Losses in connection with,
related to or arising out of:

                  (a) the untruth, inaccuracy or breach of any representation or
warranty given or made by Ahlstrom Corp or any Ahlstrom Group Company pursuant
to this Contribution Agreement;

                  (b) any nonfulfillment or breach of any covenant or agreement
on the part of Ahlstrom Corp or any Ahlstrom Group Company contained in this
Contribution Agreement;

                  (c) any Claim by any third party (including Governmental
Authorities) against or affecting the Joint Venture or any Ahlstrom Holding
Company or Ahlstrom Operating Company which, if successful, would give rise to
or relate to a breach of: (i) any of the representations or warranties on the
part of Ahlstrom Corp or any Ahlstrom Group Company referred to in paragraph (a)
above at the time made; or (ii) covenants or agreements of Ahlstrom Corp or any
Ahlstrom Group Company referred to in paragraph (b) above;

                  (d) any Claim by any third party (including Governmental
Authorities) or any incurrence of any Loss by any Sonoco Indemnified Person for,
or that arose from or in connection with, or is directly or indirectly related
to, any Ahlstrom Excluded Asset or Liability;

                  (e) any Losses sustained or suffered by any Sonoco Indemnified
Person, including Claims sustained or suffered by any Sonoco Indemnified Person,
(whether by, against or relating to Ahlstrom Corp or any other Person, including
without limitation a Governmental Authority) and arising, directly or
indirectly, from the Ahlstrom Reorganization including, without limitation, any
Tax or employment restructuring indemnities arising in connection with or
triggered, directly or indirectly, by the Ahlstrom Reorganization and to be
borne by the Joint Venture or any of its Affiliates;

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<PAGE>

                  (f) without prejudice to Section 7.3(d), the obligation of an
Ahlstrom Holding Company or an Ahlstrom Operating Company to reimburse Losses of
an Ahlstrom Group company or to Transfer its profits to an Ahlstrom Group
company under a company agreement (Unternehmensvertrag within the meaning of the
German Stock Corporation Act), except if such Ahlstrom Group company is an
Ahlstrom Holding Company or an Ahlstrom Operating Company, or if (and to the
extent) that such obligation is reflected in the Ahlstrom Financial Statements;

                  (g) without prejudice to Section 7.13, all Taxes paid and to
be paid by the Ahlstrom Holding Companies or the Ahlstrom Operating Companies
since December 31, 2003 (including under Tax consolidation arrangements (e.g.,
Organschaft) with other Ahlstrom Group companies) that relate to the time period
through December 31, 2003, except if and to the extent that such Taxes were
provided for in the Ahlstrom Financial Statements; or

                  (h) any Liability arising under the Concluding Memorandum,
dated April 25, 2002, between Advance Agro Holding Co., Ltd. and Ahlstrom Cores
Oy; or

                  (i) any Liability arising under Environmental and Safety
Requirements with respect to the landfill operated by Karhula Services,
including, without limitation, any Liability related to (A) land restoration or
landscaping required upon the closure of such landfill in excess of the Joint
Venture Commitment, (B) the Karhula Commitment Agreement, (C) any remediation
obligation resulting from Ahlstrom Cores Oy's ownership in Karhula Services,
delivery of waste to such landfill or otherwise, or (D) any obligation of
Karhula Services to construct an environmental lining, install a sewage system
or upgrade the wastewater management system at the landfill; provided, however,
that any such Liability related to the use of the landfill by the Joint Venture
or its Affiliates after the Closing Date shall be the responsibility of the
Joint Venture.

                           provided, however, that: (i) Ahlstrom Corp shall not
be Liable under Sections 10.3(a) or 10.3(c)(i) until the aggregate amount of
Losses with respect to the matters referred to in Sections 10.3(a) and
10.3(c)(i) exceeds EUR750,000, and then to the extent of Losses incurred in
excess of such amount only, provided, that items of Loss that are individually
in an amount less than EUR37,500 shall not be applied against such EUR750,000
amount; (ii) Ahlstrom Corp's maximum Liability under Sections 10.3(a) and
10.3(c)(i) shall not exceed EUR25,000,000 in the aggregate; and (iii) Ahlstrom
Corp shall not be Liable for any matter disclosed in the Schedules to this
Contribution Agreement.

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<PAGE>

         10.4     INDEMNIFICATION PROCEDURES

                  The Liabilities of each of Sonoco Products and Ahlstrom Corp
with respect to its indemnities pursuant to this Section 10 resulting from any
Claim or Loss shall be subject to the following terms and conditions:

                  (a) Sonoco Products or Ahlstrom Corp, as the case may be,
shall give prompt written notice to the indemnifying Party as soon as it has
knowledge of any Claim or Loss which is asserted against, resulting to, imposed
upon or incurred by an Ahlstrom Indemnified Person or a Sonoco Indemnified
Person, as the case may be, and which may give rise to Liability of the
indemnifying Party pursuant to this Section 10, stating (to the extent known or
reasonably anticipated) the nature and basis of such Claim or Loss and the
amount thereof. Any delay in notification to the indemnifying Party of such
Claim or Loss shall not relieve the indemnifying Party of its obligations
hereunder, except to the extent such delay shall have adversely prejudiced the
ability of the indemnifying Party to defend the Claim.

                  (b) The indemnifying Party shall have the right, but not the
obligation, to control the defense and engage counsel or representatives of its
own choosing with respect to any such Claim or Loss, such representation
(including the compromise or settlement of any Claim or Loss) to be undertaken
on behalf of and for the account and risk of the indemnifying Party. In the
event the indemnifying Party elects not to undertake such defense by its own
representatives, the indemnifying Party shall give prompt written notice of such
election to the indemnified Person, and the indemnified Person will undertake
the defense thereof by counsel or other representatives designated by it whom
the indemnifying Party determines in writing to be satisfactory for such
purposes. The consent of the indemnifying Party to the indemnified Person's
choice of counsel or other representative shall not be unreasonably withheld and
shall be deemed granted if not objected to within ten days of notice thereof.

                  (c) In the event that any Claim or Loss shall arise out of a
transaction or cover any period or periods wherein Sonoco Products and Ahlstrom
Corp, on the one hand, and the Joint Venture, on the other hand, shall each be
liable hereunder for part of the Liability arising therefrom, then the Parties
shall, each choosing its own counsel and bearing its own expense, defend such
Claim or Loss, and no settlement or compromise of such Claim or Loss may be made
without the joint consent or approval of Sonoco Products and Ahlstrom Corp
(which consent shall not be unreasonably withheld).

                  (d) To the extent an indemnification payment pursuant to this
Section 10 shall be reduced by withholding Tax or causes a Tax to be payable by
the indemnified person with respect to such payment without such indemnified
Person having received and utilized a corresponding Tax reduction or benefit
with respect

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to the Claim or Loss for which the indemnification payment was made, the
indemnifying Party shall increase the gross amount of such payment by a
sufficient amount so that the net balance held by the indemnified Person, after
imposition of such withholding Tax or Tax payable with respect to such payment,
equals the amount of the indemnity payment to which the indemnified Person is
entitled pursuant to this Section 10.4.

                  (e) An indemnifying Party shall not be held liable for
indemnification to the extent the Loss for which indemnification is sought may
be attributed to any grossly negligent voluntary action or omission on the part
of the indemnified Party after the date hereof.

                  (f) An indemnifying Party shall not be held liable in respect
of any breach of representation or warranty which would not have occurred but
for: (i) any Tax Law promulgated after the date of this Agreement; or (ii) any
Environment and Safety Requirements promulgated after the date of this
Agreement.

                  (g) Any indemnification due by an indemnifying Party in
connection with any Loss shall be reduced by the amount of any insurance
proceeds actually received by the indemnified Person.

                  (h) An indemnifying Party shall not be held liable for
indemnification to the extent the indemnified Person (i) did not, after
acquiring Actual Knowledge of the facts or circumstances giving rise or likely
to give rise to a Loss, use reasonable efforts to mitigate the corresponding
Loss or (ii) intentionally uncovered facts or circumstances in order to make a
Claim for a breach of the representation and warranties contained in Section
6.15 or 7.15, as applicable, except if such facts and circumstances were
uncovered by any such indemnified Person in satisfaction of its obligations
under applicable Law.

                  (i) In the event that the facts or circumstances giving rise
to a Claim is curable, in whole or in part, the Sonoco Indemnified Person or
Ahlstrom Indemnified Person, as the case may be, shall give the indemnifying
Party 30 days to cure such facts or circumstances.

                  (j) Any indemnification payments required by this Section 10
shall be made by wire transfer of immediately available funds to the account
designated by the indemnified Person within 15 days of determination. For the
avoidance of doubt, any indemnification payments owing by an indemnifying Party
in respect of Losses suffered by the Joint Venture or its Affiliates shall be
payable exclusively by such indemnifying Party to the Joint Venture or its
Affiliate concerned.

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         10.5     REMEDIES EXCLUSIVE AND CUMULATIVE

                  The rights and remedies provided in this Contribution
Agreement shall, to the extent permitted by Law, be the exclusive remedies of
the Parties with respect to the subject matter of this Contribution Agreement.
Except as expressly stated in this Contribution Agreement, including in
particular in this Section 10, all other and further liability of the Parties
with respect to the Contribution of the Sonoco Business or the Ahlstrom
Business, as the case may be, regardless of the kind of liability and the legal
basis on which claims may be raised (including warranty claims for factual or
legal deficiencies (Gewaehrleistung), fault at the conclusion of an agreement
(culpa in contrahendo), violation of implied obligations (positive
Vertragsverletzung), rescission for error (Anfechtung wegen Irrtum), or
frustration (Wegfall der Geschaeftsgrundlage, etc.) are explicitly excluded,
unless a Party or their respective representatives violated intentionally their
statutory or contractual obligations to the other Party. Also excluded is the
right of the Parties to any remedies not specially provided for herein,
including the right to withdraw from this Contribution Agreement (Ruecktritt).
The rights and remedies provided herein shall be cumulative with one another and
the assertion by any Party of certain of such rights or remedies shall not
preclude the assertion by that Party of any of the other rights or remedies
hereunder against a Party or its successors or permitted assigns, as provided
herein.

11.      TERMINATION

         11.1     TERMINATION

                  This Contribution Agreement may be terminated at any time
before the Closing Date only under any one or more of the following
circumstances:

                  (a) by the mutual written consent of Sonoco Products and
Ahlstrom Corp;

                  (b) by Sonoco Products, by written notice of termination
delivered to Ahlstrom Corp, if any of the conditions set forth in Section 8 have
not been satisfied or waived by Sonoco Products (to the extent they may be
waived) by September 30, 2004, and such failure to satisfy such conditions is
not the result solely of the necessity of obtaining approvals or satisfying
requirements of any Governmental Authority;

                  (c) by Ahlstrom Corp, by written notice of termination
delivered to Sonoco Products, if any of the conditions set forth in Section 9
have not been satisfied or waived by Ahlstrom Corp (to the extent they may be
waived) by September 30, 2004, and such failure to satisfy such conditions is
not the result solely of the necessity of obtaining approvals or satisfying
requirements of any Governmental Authority; or

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                  (d) by either Party, by written notice of termination
delivered to the other Party, if any of the conditions set forth in Section 8
(if Sonoco Products is the Party seeking to terminate this Contribution
Agreement) or Section 9 (if Ahlstrom Corp is the Party seeking to terminate this
Contribution Agreement) are not satisfied or waived by the Party for whose
benefit such conditions exist by December 31, 2004.

         11.2     EFFECT OF TERMINATION

                  In the event this Contribution Agreement is terminated as
provided in this Section 11, this Contribution Agreement shall forthwith become
wholly void and of no effect, and the Parties shall be released from all future
obligations hereunder; provided, however, that nothing in this Section 11 shall
relieve any Party of Liability for any breach occurring prior to termination,
and provided further that the provisions of Section 10 (with respect to any
Claim for indemnification relating to the period before such termination only),
this Section 11, Sections 12.2, 12.3, 12.7 and 12.8 shall not be extinguished
but shall survive such termination. The Parties shall have any and all remedies
to enforce such obligations provided at Law.

12.      GENERAL PROVISIONS

         12.1     ADDITIONAL ACTIONS AND DOCUMENTS

                  Each Party hereby agrees to take, or cause to be taken, all
such further commercially reasonable actions to issue and receive such legal
declarations, or cause to be issued or received such legal declarations, to
execute and file, or cause to be executed and filed, such further documents and
to obtain such consents, as may be necessary or as may be reasonably requested,
in order to fully effect the purposes, terms and conditions of this Contribution
Agreement.

         12.2     NO BROKERS

                  Each Party represents and warrants to the other Party that
such Party has not engaged any broker, finder or agent in connection with the
transactions contemplated by this Contribution Agreement or any Related Document
which will give rise to any obligation of any other Party or its Affiliates
under applicable Law to pay any brokerage fees, finders' fees or commissions,
and has not incurred (and will not incur) any unpaid liability to any broker,
finder or agent for any brokerage fees, finders' fees or commissions, with
respect to the transactions contemplated by this Contribution Agreement. Each
Party agrees to indemnify, defend and hold harmless the other Party from and
against any and all Claims or Losses asserted against such Party or its
Affiliates for any such fees or commissions by any persons purporting to act or
to have acted for or on behalf of the indemnifying Party. For the avoidance of
doubt, all fees, expenses or other amounts payable to Per Karlsson

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& Co AB for services rendered in connection with the transactions contemplated
hereby shall be paid by Ahlstrom Corp.

         12.3     EXPENSES

                  Each Party shall pay its own expenses incident to this
Contribution Agreement and each Related Document, and the transactions
contemplated hereunder and thereunder (including, without limitation, in
connection with the Sonoco Reorganization or the Ahlstrom Reorganization),
including all legal and accounting fees and disbursements. Notwithstanding the
foregoing: (i) the filing fees required in connection with the Required
Competition Filings as contemplated by this Contribution Agreement, and legal
fees and expenses incurred in connection with the assessment, preparation and
filing of such Required Competition Filings, shall be borne one-half by Sonoco
Products and one-half by Ahlstrom Corp; and (ii) all fees incurred in connection
with the notarization of the Transaction Documents as required under German Law
shall be borne one-half by Sonoco Products and one-half by Ahlstrom Corp;
provided, however, that Sonoco Products shall pay no more than EUR20,000 (net)
in connection with such notarization, and Ahlstrom Corp shall pay any remaining
amount.

         12.4     ASSIGNMENT

                  (a) Neither Sonoco Products nor Ahlstrom Corp may assign its
rights and obligations under this Contribution Agreement, in whole or in part,
whether by operation of Law or otherwise, without the prior written consent of
the other Party, and any such assignment contrary to the terms hereof shall be
null and void and of no force and effect.

                  (b) No Party may unreasonably withhold its consent to an
assignment by a Party of rights and obligations under this Contribution
Agreement, provided that: (i) the proposed assignee is a wholly-owned downstream
Affiliate of the assignor; (ii) the assignee agrees in writing to assume the
obligations of assignor under this Contribution Agreement and the Related
Documents; (iii) the assignor unconditionally guarantees (by way of an
independent guarantee (selbststaendiges Schuldversprechen)) that the assignee
will duly perform the assumed obligations under this Contribution Agreement or
the Related Documents; and (iv) the assignee agrees to Transfer back to the
assignor such rights and obligations in the event that such assignee ceases to
be a wholly-owned downstream Affiliate of the assignor.

         12.5     ENTIRE AGREEMENT; AMENDMENTS

                  (a) This Contribution Agreement, including the Exhibits and
Schedules, and the Related Documents constitute the entire agreement of the
Parties with respect to the transactions contemplated hereby, and it supersedes
all prior oral or written agreements, commitments or understandings with respect
to

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the matters provided for herein. Notwithstanding the foregoing, the
Confidentiality Agreement, dated June 6, 2003, between Sonoco Products and
Ahlstrom Corp shall remain in full force and effect pursuant to its terms.

                  (b) The terms and provisions of this Contribution Agreement
(including this Section 12.5(b)) may not be amended, modified, or waived,
temporarily or permanently, except pursuant to a written instrument executed by
both Parties.

         12.6     WAIVER

                  No delay or failure on the part of any Party in exercising any
right, power or privilege under this Contribution Agreement or any Related
Document shall impair any such right, power or privilege or be construed as a
waiver of any default or any acquiescence therein. No single or partial exercise
of any such right, power or privilege shall preclude the further exercise of
such right, power or privilege, or the exercise of any other right, power or
privilege. No waiver shall be valid against any Party unless made in writing and
signed by the Party against whom enforcement of such waiver is sought and then
only to the extent expressly specified therein.

         12.7     GOVERNING LAW; SERVICE OF PROCESS

                  (a) This Contribution Agreement shall be governed by and
construed in accordance with the domestic laws of the Federal Republic of
Germany without giving effect to any choice of law or conflict of law provision
or rule (whether of the laws of the Federal Republic of Germany or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the jurisdiction of the Federal Republic of Germany.

                  (b) Sonoco Products appoints Sonoco CPD GmbH,
Nikolaus-Otto-Stra(beta)e, 56727 Mayen, Germany and Ahlstrom Corp appoints
Ahlstrom Holding, Romereschstrasse 33, 49070, Osnabruck, Germany, as its agent
for service of process (Zustellungsbevollmaechtigter) for all legal proceedings
arising out of or in connection with this Contribution Agreement. This
appointment shall only terminate upon the appointment of another agent for
service of process domiciled in Germany and the appointment has been notified to
and approved in writing by Sonoco or Ahlstrom, as the case may be (which
approval shall not be unreasonably withheld). Sonoco Products and Ahlstrom Corp
shall promptly after the date hereof and upon appointment of any new agent for
service of process, as the case may be, issue to the agent a written power of
attorney (Vollmachtsurkunde) and shall irrevocably instruct the agent to submit
such deed in connection with any service of process under this Contribution
Agreement.

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         12.8     ARBITRATION

                  All controversies, Claims, disputes and matters in question
arising out of, or relating to, this Contribution Agreement or any Related
Document, including any questions regarding the existence, validity or
termination of this Contribution Agreement ("DISPUTES") shall be finally
resolved through submission to final and binding arbitration as follows:

                  (a) Any Party may exercise the right to arbitrate any Disputes
against the other by sending written notice to arbitrate to the other Party of
any action that gives rise to such Disputes, which notice shall include the
amount in controversy. The written notice shall identify and describe the nature
of any and all Disputes asserted and the facts upon which such Disputes are
based;

                  (b) The place of the arbitration shall be Frankfurt am Main,
Germany, and the proceedings shall be conducted in the English language;

                  (c) The arbitration will be conducted pursuant to the
International Chamber of Commerce ("ICC") arbitration rules and procedures and
by three arbitrators chosen in accordance with the procedure used by the ICC.
All of the arbitrators shall be qualified to be a judge in Germany under the
German Law of the Judiciary ("Deutsches Richtergesetz") and shall not be an
Affiliate of any party to the Dispute and shall not have any potential for bias
or conflict of interest with respect to any party to the Dispute, directly or
indirectly, by virtue of any direct or indirect financial interest, family
relationship, close friendship or otherwise (the "ARBITRATORS");

                  (d) Each Party shall bear equally the costs of arbitration,
filing fees and the fees of the Arbitrators. Each Party shall bear its own
attorneys' fees, witness fees and other costs. The Parties shall mutually agree
with the Arbitrators on the date, time and place of the arbitration. In the
event that the Parties are unable to mutually agree to the date, time, and place
within the Frankfurt am Main, Germany, for the arbitration to be conducted, the
Arbitrators shall determine the date, time, and place of the arbitration in
Frankfurt am Main, Germany;

                  (e) Notwithstanding the above, the Arbitrators shall have the
power, but not the obligation, to order that the Party it deems to be the losing
Party pay to the prevailing Party all or a portion of the prevailing Party's
fees and expenses in the arbitration, including the Arbitrators' fees,
attorneys' fees, fees for expert testimony and for other expenses of presenting
its case;

                  (f) The Arbitrators shall have exclusive authority to resolve
any Disputes between the Parties. The Arbitrators shall have the power to award
damages against any Party and to make an award granting such further relief as
they deem just, proper, and equitable. The Arbitrators shall follow the laws of
the

                                       76
<PAGE>

Federal Republic of Germany. The Arbitrators shall render a written arbitration
decision that reveals the essential findings and conclusions upon which the
award is based; and

                  (g) Any award issued by the Arbitrators pursuant to this
Section 12.8 shall be made in the English language, denominated in Euros and
delivered within 120 days of the date on which such arbitration proceeding
commenced and shall be final and binding and enforceable in any court of
competent jurisdiction. Judgment on the award rendered by the Arbitrators may be
entered in any court having jurisdiction thereof.

         12.9     SEVERABILITY

                  If any part of any provision of this Contribution Agreement or
any Related Document, or other document delivered pursuant herewith or
therewith, shall be invalid or unenforceable in any respect, such part shall be
ineffective to the extent of such invalidity or unenforceability only, without
in any way affecting the validity and enforceability of the remaining parts of
such provision or the remaining provisions of this Contribution Agreement. The
Parties shall negotiate with a view to agreeing a replacement provision that is
valid, and the nature and economic considerations of which come as close as
possible to the voided provision. Failing agreement of the Parties on such
replacement provision after good faith negotiations, any Party may, by notice to
the other Party, refer the determination of such replacement provision to
arbitration pursuant to Section 12.8. For the avoidance of doubt, this Section
12.9 shall not be construed to amend automatically this Contribution Agreement,
or to require any Party to agree to changes in this Contribution Agreement,
which are, in either case, imposed by Governmental Authorities as a condition to
any review, approval or other action by such Governmental Authorities.

         12.10    NOTICES

                  All notices, requests, demands, claims, consents and other
communications which are required or otherwise delivered hereunder shall be in
writing in the English language and shall be deemed to have been duly given if:
(i) personally delivered; (ii) sent by internationally recognized overnight
courier; (iii) mailed by registered or certified mail with postage prepaid,
return receipt requested; or (iv) transmitted by facsimile or telecopy (with a
copy of such transmission concurrently transmitted by registered or certified
mail with postage prepaid, return receipt requested), to the Parties at the
following addresses (or at such other address for a Party as shall be specified
by like notice):

                                       77
<PAGE>

         (i)      If to Sonoco Products, to:

                  Harris E. DeLoach, Jr.
                  President and Chief Executive Officer
                  Sonoco Products Company
                  1 North Second Street
                  Hartsville, SC 29550 USA
                  Facsimile: +1-843-383-7008

         with a copy (which shall not constitute notice) to:

                  Claud v.S. Eley
                  Hogan & Hartson L.L.P.
                  875 Third Avenue
                  New York, NY  10022 USA
                  Facsimile: +1-212-918-3100

         (ii)     If to Ahlstrom Corp, to:

                  General Counsel
                  Ahlstrom Corporation, PB 329
                  Etelaesplanadi 14
                  00101 Helsinki, Finland
                  Facsimile: + 358-10-888-4789

         with a copy (which shall not constitute notice) to:

                  Stephan Barthelmess
                  Cleary, Gottlieb, Steen & Hamilton
                  Main Tower
                  Neue Mainzer Strasse 52
                  60311 Frankfurt an Main, Germany
                  Facsimile: + 49-69-97103-199

or to such other address as the Party to whom such notice or other communication
is to be given may have furnished to each other Party in writing in accordance
herewith. Any such notice or communication shall be deemed to have been
received: (i) when delivered, if personally delivered; (ii) when sent, if sent
by facsimile or telecopy; (iii) on the next Business Day after dispatch, if sent
by nationally recognized, overnight courier guaranteeing next Business Day
delivery; and (iv) on the tenth Business Day following the date on which the
piece of mail containing such communication is posted, if sent by mail;
provided, that where, in the case of personal delivery, facsimile or telecopy
transmission, delivery or transmission occurs after 6:00 p.m. (local time at the
place of receipt) on a Business

                                       78
<PAGE>

Day or on a day which is not a Business Day, receipt shall be deemed to occur at
9:00 a.m. (local time at the place of receipt) on the next following Business
Day.

         12.11    INTERPRETATION; HEADINGS

                  (a) To the extent that the interpretation of any English
language provision of this Contribution Agreement conflicts or is otherwise
inconsistent with the German language equivalent of such provision contained in
this Contribution Agreement, if any, the German language equivalent of such
provision contained in this Contribution Agreement shall govern such
interpretation and the Arbitrators shall be bound thereby.

                  (b) Section headings contained in this Contribution Agreement
are inserted for convenience of reference only, shall not be deemed to be a part
of this Contribution Agreement for any purpose, and shall not in any way define
or affect the meaning, construction or scope of any of the provisions hereof.

         12.12    LIMITATION ON BENEFITS

                  The covenants, undertakings and agreements set forth in this
Contribution Agreement shall be solely for the benefit of, and shall be
enforceable only by, the Parties and their respective successors and permitted
assigns, except that the agreements set forth in Section 10 also shall be for
the benefit of, and enforceable by, the Ahlstrom Indemnified Persons, the Sonoco
Indemnified Persons and their respective successors or permitted assigns as
third party beneficiaries (unechter Vertrag zugunsten Dritter).

         12.13    SUCCESSORS AND ASSIGNS

                  Subject to any provisions hereof restricting assignment, this
Contribution Agreement shall be binding upon and shall inure to the benefit of
the Parties and their respective successors and assigns
(Gesamtrechtsnachfolger).

                                       79
<PAGE>

                                    EXHIBIT A
                            TO CONTRIBUTION AGREEMENT

                                   DEFINITIONS

         "AALTEN CONTRIBUTION" has the meaning set forth in Section 8.10.

         "ACCOUNTANT'S DETERMINATION" has the meaning set forth in Section 4.6.

         "ACTUAL KNOWLEDGE" means, with respect to any Person, actual knowledge
of such Person, including, without limitation, in the case of incorporated
Persons, the actual knowledge of the officers, directors, managing directors and
general managers, as the case may be, of such Person; provided, that: (i) the
"Actual Knowledge" of Sonoco Products shall include the Actual Knowledge of any
Sonoco Holding Company and Sonoco Operating Company; and (ii) the "Actual
Knowledge" of Ahlstrom Corp shall include the Actual Knowledge of any Ahlstrom
Holding Company and Ahlstrom Operating Company.

         "AFFILIATE" means, with respect to any specified Person, any other
Person who, directly or indirectly, through one or more intermediaries,
Controls, is Controlled by, or is under common Control with such specified
Person; provided, however, that, from and after the Closing, the Joint Venture
and its subsidiaries shall not be deemed an Affiliate of either Sonoco Products
and its Affiliates (other than the Joint Venture and its subsidiaries) or
Ahlstrom Corp and its Affiliates (other than the Joint Venture and its
subsidiaries), and vice versa.

         "AGREEMENT" means any concurrence of understanding and intention
between two or more persons (or entities) with respect to their relative rights
and/or obligations or with respect to a thing done or to be done (whether oral
or in recorded form and whether or not conditional, executory, express, implied,
in writing or meeting the requirements of contract), including without
limitation contracts, leases, promissory notes, easements, rights of way,
covenants and commitments, including those related to the settlement of disputes
or Claims.

         "AHLSTROM ACCOUNTING PRINCIPLES" means accounting standards Applied on
a Consistent Basis by Ahlstrom Corp and attached as Exhibit U.

         "AHLSTROM BUSINESS" has the meaning set forth in the Recitals.

         "AHLSTROM CLOSING STATEMENTS" has the meaning set forth in Section
4.2(ii)(C).

         "AHLSTROM CONSENTS" means the consents listed in Schedule 7.2.

                               Exhibit A - Page 1
<PAGE>

         "AHLSTROM CONTRIBUTED SHARES" means all of the shares or ownership
interests, as applicable, in Ahlstrom Cores Oy and Ahlstrom Cores GmbH.

         "AHLSTROM CONTRIBUTION" has the meaning set forth in Section 2.2(b).

         "AHLSTROM CORP" has the meaning set forth in the Introduction.

         "AHLSTROM DATA ROOM" means, collectively, the due diligence rooms
containing the information regarding the Ahlstrom Business assembled for
purposes of the due diligence carried out by Sonoco Products and its
Representatives at KPMG LLP's offices and Ahlstrom Corp's offices in Helsinki,
Finland.

         "AHLSTROM EQUALIZATION AMOUNT" has the meaning set forth in Section
5.1(d).

         "AHLSTROM EXCLUDED ASSET OR LIABILITY" means any Asset or Liability of
Ahlstrom Corp or the Ahlstrom Group, whether presently existing or arising
hereafter, which is not part of the Ahlstrom Business, including, without
limitation, any Liability (environmental or otherwise) of any Ahlstrom Group
company related to the Pont Audemer facility in France and any Liability of any
Ahlstrom Holding Company or Ahlstrom Operating Company in respect of any
employees who are not primarily working for the Ahlstrom Business.

         "AHLSTROM FINANCIAL STATEMENTS" has the meaning set forth in Section
7.7(a).

         "AHLSTROM GROUP" means, collectively, Ahlstrom Corp with respect to the
Ahlstrom Business, including, prior to the Closing, the Ahlstrom Holding
Companies and the Ahlstrom Operating Companies.

         "AHLSTROM HOLDING" means Ahlstrom Holding GmbH, a company organized
under the laws of Germany and a wholly-owned subsidiary of Ahlstrom Corp.

         "AHLSTROM HOLDING COMPANIES" means, collectively: (i) Ahlstrom Cores
Oy, a company organized under the laws of Finland; and (ii) Ahlstrom Cores
Holding AB, a company organized under the laws of Sweden.

         "AHLSTROM INDEMNIFIED PERSON" means the Joint Venture, Ahlstrom Corp,
the Ahlstrom Holding Companies, the Ahlstrom Operating Companies, and their
respective Affiliates, partners, officers, directors, managing directors,
managers, employees, agents and representatives, in each case other than any
member of the Sonoco Group.

                               Exhibit A - Page 2
<PAGE>

         "AHLSTROM MATERIAL ADVERSE EFFECT" means any circumstance, event,
change in, or effect on any of the Ahlstrom Holding Companies or the Ahlstrom
Operating Companies that has a material adverse effect or change on or to the
Ahlstrom Business, Assets, Liabilities, relationship with material customers or
suppliers, condition (financial or otherwise), prospects, operations, earnings,
cash flows or results of operations of the Ahlstrom Holding Companies or the
Ahlstrom Operating Companies, taken as a whole, whether such material adverse
effect or change occurs before or after the Ahlstrom Contribution.

         "AHLSTROM MATERIAL AGREEMENTS" has the meaning set forth in Section
7.20(a).

          "AHLSTROM OPERATING COMPANIES" means, collectively: (i) Ahlstrom Cores
SAS, a company organized under the laws of France; (ii) Ahlstrom Cores Ou, a
company organized under the laws of Estonia; (iii) Ahlstrom Cores B.V., a
company organized under the laws of The Netherlands; (iv) Ahlstrom Cores
Sp. z o.o., a company organized under the laws of Poland; (v) Ahlstrom Cores AS,
a company organized under the laws of Norway; (vi) Ahlstrom Cores AB, a company
organized under the laws of Sweden; (vii) ZAO Ahlstrom Cores, a company
organized under the laws of Russia; (viii) AT-Spiral; (ix) Ahlstrom Cores GmbH,
a company organized under the laws of Germany; and (x) Karhula Services.

         "AHLSTROM PROHIBITED TRANSACTIONS" has the meaning set forth in Section
4.1(d).

         "AHLSTROM REAL PROPERTY" has the meaning set forth in Section 7.14(a).

         "AHLSTROM REORGANIZATION" has the meaning set forth in Section 5.1(b).

         "AHLSTROM REORGANIZATION DEVIATIONS" has the meaning set forth in
Section 4.2(a)(ii)(A).

         "AHLSTROM SHARES" has the meaning set forth in Section 2.2(b).

         "AHLSTROM SUPPLY AGREEMENT" has the meaning set forth in Section
3.2(f)(vii).

         "AHLSTROM TAX RETURNS" has the meaning set forth in Section 7.13(a).

         "ALTERNATIVE TRANSACTION" means: (i) any direct or indirect acquisition
or purchase of any shares of equity interests or debt securities of any of the
Sonoco Holding Companies or the Sonoco Operating Companies or any of the
Ahlstrom Holding Companies or the Ahlstrom Operating Companies, as the case may
be, or any interests therein; (ii) any direct or indirect acquisition or
purchase of all or a material portion of the Assets of any of the Sonoco Holding
Companies or the

                               Exhibit A - Page 3
<PAGE>

Sonoco Operating Companies, or any of the Ahlstrom Holding Companies or the
Ahlstrom Operating Companies, as the case may be; (iii) the merger,
consolidation or business combination of any of the Sonoco Holding Companies or
the Sonoco Operating Companies, or any of the Ahlstrom Holding Companies or the
Ahlstrom Operating Companies, as the case may be; (iv) the refinancing of any of
the Sonoco Holding Companies or the Sonoco Operating Companies, or any of the
Ahlstrom Holding Companies or the Ahlstrom Operating Companies, as the case may
be; or (v) the liquidation, dissolution, reorganization or similar transaction
involving any of the Sonoco Holding Companies or the Sonoco Operating Companies,
or any of the Ahlstrom Holding Companies or the Ahlstrom Operating Companies, as
the case may be, in each of clauses (i) through (v) above, other than the
transactions contemplated by this Contribution Agreement.

         "APPLIED ON A CONSISTENT BASIS" means, with respect to any Person,
prepared using the same accounting principles, policies, standards, practices
and estimates used by such Person in prior periods and as used in the
preparation of such Person's most recent audited financial statements.

         "ARBITRATORS" has the meaning set forth in Section 12.8(c).

         "ASSETS" means, with respect to any Person, all businesses, properties,
fixed assets, machinery, equipment, furniture, fixtures, licenses, permits,
franchises, goodwill and rights of such Person, individually and as a going
concern, of every nature, kind and description, tangible and intangible, owned
or leased, wheresoever located and whether or not carried or reflected on the
books or records of such Person, used or held for use, in connection with the
operation of such Person's business, as the case may be; provided, that: (i) the
"Assets" of the Sonoco Group means the "Assets" of the Sonoco Group upon
consummation of the Sonoco Reorganization; and (ii) the "Assets" of the Ahlstrom
Group means the "Assets" of the Ahlstrom Group upon consummation of the Ahlstrom
Reorganization.

         "AT-SPIRAL" means AT-Spiral Oy, a company organized under the laws of
Finland.

         "BEST KNOWLEDGE" means, with respect to any Person: (i) actual
knowledge of such Person and its Affiliates (including, without limitation, in
the case of incorporated Persons, the actual knowledge of the officers,
directors, managing directors and managers, as the case may be, of such Person
and its Affiliates); and (ii) that knowledge which could have been acquired by
such Person after making such due inquiry and exercising such due diligence as a
prudent business person would have made or exercised in the management of his or
her business affairs in light of all the circumstances applicable thereto,
including due inquiry of those key employees and professionals of such Person
and its Affiliates who could reasonably be expected to have actual knowledge of
the matters in question.

                               Exhibit A - Page 4
<PAGE>

         "BUSINESS DAY" means any day that is not a Saturday, Sunday or legal
holiday or other day on which banks are required to be closed in Brussels,
Belgium, Helsinki, Finland or New York, New York.

         "BUSINESS PLAN" has the meaning set forth in Section 2.1(e).

         "CASH AND CASH EQUIVALENTS" means, with respect to any Person, cash or
cash equivalents, of such Person, whether credited to an account at a financial
institution, or in hand, of such Person, including marketable short-term
securities, other short-term investments, notes receivable, non-trade
intercompany receivables and accrued interest income.

         "CHARTER DOCUMENT" means, with respect to any Person, the articles of
association, by-laws, partnership agreement and/or other applicable constitutive
or organizational documents of such Person.

         "CHINA PURCHASE AGREEMENT" means the Stock Purchase Agreement, dated
the date hereof, between Sonoco Products and Ahlstrom Corp.

         "CLAIM" means any claim, demand, Order or Proceeding.

         "CLOSING" has the meaning set forth in Section 3.1.

         "CLOSING DATE" has the meaning set forth in Section 3.1.

         "CLOSING STATEMENTS" has the meaning set forth in Section 4.2(a)(i)(C).

         "CONTRIBUTION AGREEMENT" has the meaning set forth in the Introduction,
including all Schedules and Exhibits hereto.

         "CONTROL" (together with the correlative meanings, "CONTROLLED BY" or
"UNDER COMMON CONTROL WITH") means the possession, direct or indirect, of the
power to direct, or cause the direction of, the management and policies of a
Person whether through the ownership of shares or ownership interests, voting
rights, by contract or otherwise.

         "DISPUTES" has the meaning set forth in Section 12.8.

         "DISTRIBUTIONS" means, with respect to any Person: (i) the payment of
any dividend on or in respect of shares or ownership interests or membership
interests of such Person; (ii) the purchase, redemption, or other retirement of
any shares or ownership interests or membership interests of such Person,
directly by such Person or indirectly through a Subsidiary of such Person or
otherwise; (iii) the direct or indirect return of capital by such Person to its
stockholders or members as

                               Exhibit A - Page 5
<PAGE>

such; or (iv) any other distribution on or in respect of any shares or ownership
interests or membership interests of such Person.

         "ENCUMBRANCE" means and includes any security interest, mortgage, Lien,
pledge, Claim, charge, escrow, encumbrance, cloud, option, security agreement or
other similar agreement, arrangement, Agreement, understanding or obligation,
whether written or oral and whether or not relating in any way to credit or the
borrowing of money.

         "ENVIRONMENTAL AND SAFETY REQUIREMENTS" means all Laws, Orders,
contractual obligations and all common law concerning public health and safety,
worker health and safety, and pollution or protection of the environment,
including all those relating to the presence, use, production, generation,
handling, transportation, treatment, storage, disposal, distribution, labeling,
testing, processing, discharge, release, threatened release, control or cleanup
of any hazardous materials, substances or wastes, chemical substances or
mixtures, pesticides, pollutants, contaminants, toxic chemicals, petroleum
products or byproducts, asbestos, polychlorinated biphenyls, noise or radiation.

         "EQUALIZATION STATEMENT" has the meaning set forth in Section 4.1(b).

         "EXAMINATION PERIOD" has the meaning set forth in Section 4.3.

         "EXHIBIT" means an Exhibit to this Contribution Agreement.

         "GAAP" means generally accepted accounting principles, Applied on a
Consistent Basis.

         "GERMAN CIVIL CODE" means Buergerliches Gesetzbuch.

         "GERMAN LAW OF THE JUDICIARY" means Deutsches Richtergesetz.

         "GERMAN STOCK CORPORATION ACT" means Aktiengesetz.

         "GOVERNMENTAL AUTHORITY" means any federal, state, local or regional
government, regulatory authority, administrative agency, instrumentality,
department, commission, board, bureau, agency, arbitrator, court or tribunal,
whether domestic, foreign or supranational and whether legislative, executive or
judicial, including, without limitation, any competition Law authority or
commission.

         "GUARANTEE" means any obligation, contingent or otherwise, of any
Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation of any other Person in any manner, whether
directly or indirectly, including any obligation of such Person, direct or
indirect: (i) to purchase or pay (or

                               Exhibit A - Page 6
<PAGE>

advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation or to purchase (or to advance or supply funds for the purchase
of) any security for the payment of such Indebtedness or other obligation; (ii)
to purchase property, securities or services for the purpose of assuring the
owner of such Indebtedness or other obligation of the payment thereof; (iii) to
purchase or otherwise pay for merchandise, materials, supplies, services or
other property under an Agreement or other arrangement which provides that
payment for such merchandise, materials, supplies, services or other property
shall be made regardless of whether delivery of such merchandise, materials,
supplies, services or other property is ever made or tendered; or (iv) to
maintain the working capital, equity capital or other financial statement
condition of any primary obligor, provided, however, that the term Guarantee
shall not include endorsement of instruments for deposit and collection in the
Ordinary Course of Business.

         "ICC" has the meaning set forth in Section 12.8(c).

         "INDEBTEDNESS" means, with respect to any Person, without duplication:
(i) all obligations of such Person for borrowed money or with respect to
deposits or advances of any kind; (ii) all obligations of such Person evidenced
by (or which customarily would be evidenced by) bonds, debentures, notes or
similar instruments; (iii) all reimbursement obligations of such Person with
respect to letters of credit and similar instruments; (iv) all obligations of
such Person under conditional sale or other title retention agreements relating
to property or assets purchased by such Person; (v) all obligations of such
Person incurred, issued or assumed as the deferred purchase price of property
other than accounts payable incurred and paid on terms customary in the business
of such Person (it being understood that the "deferred purchase price" in
connection with any purchase of property or assets shall include only that
portion of the purchase price which shall be deferred beyond the date on which
the purchase is actually consummated); (vi) all obligations secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the obligations secured thereby have been assumed; (vii)
all obligations of such Person under forward sales, futures, options and other
similar hedging arrangements (including interest rate hedging or protection
agreements); (viii) all obligations of such Person to purchase or otherwise pay
for merchandise, materials, supplies, services or other property under an
arrangement which provides that payment for such merchandise, materials,
supplies, services or other property shall be made regardless of whether
delivery of such merchandise, materials, supplies, services or other property is
ever made or tendered; (ix) all guarantees by such Person of obligations of
others; and (x) all capitalized lease obligations of such Person.

         "INTELLECTUAL PROPERTY" means all patents, trademarks, service marks,
trade names, domain names, logos, trade dress, copyrights, know-how, trade

                               Exhibit A - Page 7
<PAGE>

secrets, inventions, methods, processes, practices, computer software, web
sites, industrial and other designs and drawings, other works of authorship, and
all general intangibles of a like nature, whether or not protectable by
copyright, patent, trademark or other applicable law, and all registrations,
applications, disclosures and filings with respect to the foregoing, and all
reissuances, continuations-in-part, revisions, extensions, reexaminations and
renewals thereof, together with their foreign counterparts, as applicable.

         "INTERCOMPANY DEBT" means: (i) with respect to the Sonoco Products or
any of its Affiliates, all Indebtedness between a Sonoco Holding Company or
Sonoco Operating Company, on the one hand, and Sonoco Products and its other
Affiliates not transferred to the Joint Venture, on the other hand, which
Indebtedness is outstanding on such date of determination; and (ii) with respect
to the Ahlstrom Corp and any of its Affiliates, all Indebtedness between a
Ahlstrom Holding Company or Ahlstrom Operating Company, on the one hand, and
Ahlstrom Corp and its other Affiliates not transferred to the Joint Venture, on
the other hand, which Indebtedness is outstanding on such date of determination.

         "INTEREST BEARING DEBT" means, with respect to any Person, any interest
bearing Indebtedness owed to financial institutions, Liabilities under capital
leases and non-trade Intercompany Debt, plus, where applicable, any accrued and
unpaid interest thereon.

         "INTERIM PERIOD" has the meaning set forth in Section 5.2(a).

         "INTRODUCTION" means the Introduction to this Contribution Agreement.

         "IP LICENSE AGREEMENTS" means, collectively, the Joint Venture/Sonoco
IP License Agreement and the SDI IP License Agreement.

         "JOINT VENTURE" has the meaning set forth in the Recitals.

         "JOINT VENTURE COMMITMENT AMOUNT" has the meaning set forth in Section
5.11.

         "JOINT VENTURE/SONOCO IP LICENSE AGREEMENT" has the meaning set forth
in Section 3.2(e)(ii).

         "JOINT VENTURE STARTING BALANCE SHEET" has the meaning set forth in
Section 4.5.

         "JOINT VENTURE SUPPLY AGREEMENT" has the meaning set forth in Section
3.2(e)(v).

                               Exhibit A - Page 8
<PAGE>

         "KARHULA COMMITMENT AGREEMENT" means the Commitment, dated December 31,
1999, by and between Ahlstrom Cores Oy and Karhula Services.

         "KARHULA SERVICES" means Ahlstrom Karhulan Palvelot Oy, a company
organized under the laws of Finland.

         "LAW" means all statutes, laws, ordinances, regulations, rules,
resolutions, orders, determinations, writs, injunctions, awards (including
without limitation awards of any arbitrator), judgments and decrees applicable
to the specified persons or entities and to the businesses and assets thereof
(including without limitation Laws relating to securities registration and
regulation; the sale, leasing, ownership or management of real property;
employment practices, terms and conditions, and wages and hours; building
standards, land use and zoning; safety, health and fire prevention; and
environmental protection).

         "LIABILITY" means any liability or obligation, whether known or
unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued,
liquidated or unliquidated and whether due or to become due, regardless of when
asserted.

         "LIEN" means, with respect to any Asset, any mortgage, lien, pledge,
charge, security interest or Encumbrance of any kind, or any Agreement to give
the foregoing in respect of such Asset.

         "LOSS" means any loss, Liability, action, cause of action, cost,
damage, deficiency, Tax, penalty, fine or expense, whether or not arising out of
any Claims by or on behalf of any Party to this Contribution Agreement or any
Third Party, including interest, penalties, reasonable attorneys' fees and
expenses and all amounts paid in investigation, defense or settlement of any of
the foregoing which any such Party or the Joint Venture or its subsidiaries may
suffer, sustain or become subject to, as a result of, in connection with, or
relating to or by virtue of any indemnifiable event or condition, reduced by the
amount of any Tax benefit to such Party resulting from such Loss, in each case
on an after Tax basis; provided, however, any Claim relating to a Loss suffered
by Demolli Industria Cartaria S.p.A., or by any Party, the Joint Venture or its
subsidiaries as a result of its direct or indirect interest in Demolli Industria
Cartaria S.p.A., shall include 100% of such Loss if such Loss is suffered by any
Party, the Joint Venture or its subsidiaries after the acquisition by the Joint
Venture or its Affiliates of the remaining 75% of Demolli Industria Cartaria
S.p.A. that an Affiliate of Sonoco Products does not own on the date hereof.

         "NET CASH/INTEREST BEARING DEBT" means, with respect to any Person, all
Cash and Cash Equivalents of such Person less Interest Bearing Debt calculated
in accordance with accounting principles used in the Ordinary Course of Business
of such Person. If Cash and Cash Equivalents exceed Interest Bearing Debt, the

                               Exhibit A - Page 9
<PAGE>

amount of Net Cash/Interest Bearing Debt shall be positive; if Interest Bearing
Debt exceeds Cash and Cash Equivalents, the amount of Net Cash/Interest Bearing
Debt shall be negative.

         "OBJECTION NOTICE" has the meaning set forth in Section 4.3.

         "ORDER" or "ORDERS" means any judgments, writs, decrees, injunctions,
orders, compliance agreements or settlement agreements of or with any
Governmental Authority.

         "ORDINARY COURSE OF BUSINESS" means, with respect to any Person,
ordinary course of business consistent with past practices of such Person and
prudent customary business operations.

         "OUTSTANDING BORROWINGS" means: (i) with respect to the Sonoco Group,
all Indebtedness of each Sonoco Holding Company, Sonoco Operating Company and
Sonoco Products or any of its other Affiliates on behalf of the Sonoco Business
for money borrowed, or any Guarantee provided, by any Sonoco Holding Company,
Sonoco Operating Company and Sonoco Products or any of its other Affiliates on
behalf of the Sonoco Business, other than Intercompany Debt of the Sonoco Group,
which Indebtedness is outstanding on such date of determination; and (ii) with
respect to the Ahlstrom Group, all Indebtedness of each Ahlstrom Holding
Company, Ahlstrom Operating Company and Ahlstrom Corp or any of its other
Affiliates on behalf of the Ahlstrom Business for money borrowed, or any
Guarantee provided, by any Ahlstrom Holding Company, Ahlstrom Operating Company
and Ahlstrom Corp or any of its other Affiliates on behalf of the Ahlstrom
Business, other than Intercompany Debt of the Ahlstrom Group, which Indebtedness
is outstanding on such date of determination.

         "PARTY" and "PARTIES" has the meanings set forth in the Introduction.

         "PENSION CONTRIBUTIONS" has the meaning set forth in Section 5.14.

         "PENSION SERVICE COST" has the meaning set forth in Section 5.14.

         "PERMITTED ENCUMBRANCES" means: (i) Encumbrances for Taxes not yet due
and payable or being contested in good faith by appropriate proceedings and for
which there are adequate reserves on the books of the applicable Person; (ii)
workers or unemployment compensation Liens arising in the Ordinary Course of
Business; (iii) mechanic's, materialman's, supplier's, vendor's or similar Liens
arising in the Ordinary Course of Business securing amounts that are not
delinquent or past due; (iv) Encumbrances relating to purchase money security
interests arising in the Ordinary Course of Business; (v) Liens not created by a
Person that affect the underlying fee interest of any Real Property leased by
such Person but which do not materially interfere with the ordinary conduct of
the

                               Exhibit A - Page 10
<PAGE>

business of such Person and will not materially interfere with the quiet
enjoyment of such leased Real Property during the term of the applicable lease;
(vi) zoning ordinances and other governmental land use restrictions; (vii)
easements, reservations and restrictions of legal record affecting Real Property
which would not, individually or in the aggregate, materially affect the value
of such Real Property or materially interfere with the present use of such Real
Property; and (viii) any state of facts that an accurate survey would show,
provided such facts do not individually or in the aggregate, materially affect
the value of such Real Property or materially interfere with the present use of
such Real Property.

         "PERMITS" means all permits, licenses, authorizations, registrations,
franchises, approvals, consents, certificates, variances and similar rights
obtained, or required to be obtained, from Governmental Authorities.

         "PERSON" means, and shall be construed broadly and shall include, an
individual, a partnership, a corporation, a company, an association, a joint
stock company, a limited liability company, a limited liability partnership, a
trust, a joint venture, an unincorporated organization and a Governmental Entity
or similar entities.

         "PROCEEDING" means any action, suit, proceeding, complaint, charge,
hearing, inquiry, audit or investigation before or by any Governmental
Authority.

         "REAL PROPERTY" means, with respect to any Person, the real property
owned, leased, subleased, licensed, operated, used, held for use or otherwise
occupied by such Person in its business and all buildings, structures,
improvements and fixtures thereon, together with all rights of way, easements,
privileges and appurtenances pertaining thereto, including any right, title and
interest in and to any street adjoining any portion of such real property.

         "REAL PROPERTY LEASE" means any lease, sublease, license or other form
of occupancy agreement entered into by a Person (whether as lessor or lessee)
with respect to Real Property.

         "RECITALS" means the Recitals to this Contribution Agreement.

         "REFERENCE PERIOD" has the meaning set forth in Section 4.1(c).

         "RELATED DOCUMENTS" means, collectively, the Shareholders' Agreement,
the Services Agreements, the Joint Venture/Sonoco IP License Agreement, the SDI
IP License Agreement, the Representation Agreement, the China Purchase
Agreement, the Joint Venture Supply Agreement and the VP Supply Agreement.

         "REPRESENTATION AGREEMENT" has the meaning set forth in Section
3.2(e)(vi).

                               Exhibit A - Page 11
<PAGE>

         "REPRESENTATIVES" has the meaning set forth in Section 5.2(a).

         "REQUIRED COMPETITION FILINGS" has the meaning set forth in Section
5.3(b).

         "REQUIRED CONSENTS" means, collectively, the Sonoco Consents and the
Ahlstrom Consents; provided, however, that for purposes of the conditions
precedent in Sections 8.6 and 9.6, (i) any Ahlstrom Consent the satisfaction of
which is solely within the control of Ahlstrom Corp shall not be a condition
precedent for Ahlstrom Corp and (ii) any Sonoco Consent the satisfaction of
which is solely within the control of Sonoco Products shall not be a condition
precedent for Sonoco Products.

         "SCHEDULE" means a Schedule to this Contribution Agreement.

         "SCHWEIGHOUSE" means SEM Construction Schweighouse S.a r.l., a company
organized under the laws of France.

         "SDI IP LICENSE AGREEMENT" has the meaning set forth in Section
3.2(e)(iii).

         "SECTION" means a Section (or a subsection) of this Contribution
Agreement.

         "SERVICES AGREEMENT" has the meaning set forth in Section 3.2(e)(iv).

         "SETTLEMENT AGREEMENT" has the meaning set forth in Section 4.2(b).

         "SHAREHOLDERS' AGREEMENT" has the meaning set forth in Section
3.2(e)(i).

         "SODAREC" means Sodarec S.a r.l., a company organized under the laws of
France.

         "SONOCO BUSINESS" has the meaning set forth in the Recitals.

         "SONOCO CLOSING STATEMENTS" has the meaning set forth in Section
4.2(a)(i)(C).

         "SONOCO CONSENTS" means the consents listed on Schedule 6.2.

         "SONOCO CONTRIBUTED SHARES" means all of the shares or ownership
interests, as applicable, in the Sonoco Holding Companies, Sonoco Greece, Sonoco
Netherlands B.V. and Sonoco Poland S.p. z o.o.

         "SONOCO CONTRIBUTION" has the meaning set forth in Section 2.2(a).

                               Exhibit A - Page 12
<PAGE>

         "SONOCO DATA ROOM" means the due diligence room containing the
information regarding the Sonoco Business assembled for purposes of the due
diligence carried out by Ahlstrom Corp and its Representatives at the offices of
Sonoco Europe S.A. in Brussels, Belgium.

         "SONOCO EQUALIZATION AMOUNT" has the meaning set forth in Section
5.1(c).

         "SONOCO EXCLUDED ASSET OR LIABILITY" means any Asset or Liability of
Sonoco Products or the Sonoco Group, whether presently existing or arising
hereafter, which is not part of the Sonoco Business, including, without
limitation, the UK Pension Obligation and any Liability of any Sonoco Holding
Company or Sonoco Operating Company in respect of any employees who are not
primarily working for the Sonoco Business

         "SONOCO EXTRAORDINARY TRANSACTIONS" has the meaning set forth in
Section 4.1(a).

         "SONOCO FINANCIAL STATEMENTS" has the meaning set forth in Section
6.7(a).

         "SONOCO GREECE" means Hellenic Paper Mill of Central Macedonia-Sonoco
S.A., a company organized under the Laws of Greece.

         "SONOCO GREECE PREDECESSOR" means Sonoco IPD Greece SA, a company
organized under the laws of Greece.

         "SONOCO GROUP" means, collectively, Sonoco Products with respect to the
Sonoco Business, Sonoco International, Sonoco Luxco, including prior to the
Closing, the Sonoco Holding Companies and the Sonoco Operating Companies.

         "SONOCO HOLDING COMPANIES" means, collectively: (i) Sonoco Deutschland
Holdings GmbH, a company organized under the laws of Germany; (ii) Sonoco SAS, a
company organized under the laws of France; (iii) Sonoco Newco Swiss; (iv)
Sonoco Iberia S.L., a company organized under the laws of Spain; (v) Sonoco
Netherlands Holdings I B.V., a company organized under the laws of The
Netherlands; and (vi) Sonoco Holding Italia S.r.l., a company organized under
the laws of Italy.

         "SONOCO INDEMNIFIED PERSON" means the Joint Venture, Sonoco Products,
the Sonoco Holding Companies, the Sonoco Operating Companies, and their
respective Affiliates, partners, officers, directors, managing directors,
managers, employees, agents and representatives, in each case other than any
member of the Ahlstrom Group.

         "SONOCO INTERNATIONAL" means Sonoco International, Inc., a company
organized under the laws of the State of Delaware.

                               Exhibit A - Page 13
<PAGE>

         "SONOCO LUXCO" means Sonoco Luxembourg S.a r.l., a company organized
under the laws of Luxembourg and an indirect, wholly-owned subsidiary of Sonoco
Products.

         "SONOCO MATERIAL ADVERSE EFFECT" means any circumstance, event, change
in, or effect on any of the Sonoco Holding Companies or the Sonoco Operating
Companies that has a material adverse effect or change on or to the Sonoco
Business, Assets, Liabilities, relationship with material customers or
suppliers, condition (financial or otherwise), prospects, operations, earnings,
cash flows or results of operations of the Sonoco Holding Companies or the
Sonoco Operating Companies taken as a whole, whether such material adverse
effect or change occurs before or after the Sonoco Contribution.

         "SONOCO MATERIAL AGREEMENTS" has the meaning set forth in Section
6.20(a).

         "SONOCO NEWCO GERMANY" means a company to be organized under the laws
of Germany as part of the Sonoco Reorganization, as described in more detail in
Exhibit S.

         "SONOCO NEWCO GIBRALTAR" means a company organized under the laws of
Gibraltar which is part of the Sonoco Reorganization, as described in more
detail in Exhibit S.

         "SONOCO NEWCO UK" means a company to be organized under the laws of
England and Wales as part of the Sonoco Reorganization, as described in more
detail in Exhibit S.

         "SONOCO NEWCO SWISS" means a company to be organized under the laws of
Switzerland as part of the Sonoco Reorganization, as described in more detail in
Exhibit S.

         "SONOCO OPERATING COMPANIES" means, collectively: (i) Sonoco IPD France
S.A., a company organized under the laws of France; (ii) Sonoco Eurocore, S.A.,
a company organized under the laws of Belgium; (iii) Sonoco Paper France S.A., a
company organized under the laws of France; (iv) Tubetex, NV, a company
organized under the laws of Belgium; (v) Sonoco IPD GmbH, a company organized
under the laws of Germany; (vi) Sonoco Caprex Karton- und Papierverarbeitungs
AG, a company organized under the laws of Switzerland; (vii) Sonoco Deutschland
GmbH, a company organized under the laws of Germany; (viii) Sonoco OPV Hulsen
GmbH, a company organized under the laws of Germany; (ix) Demolli Industria
Cartaria S.p.A., a company organized under the laws of Italy; (x) Sonoco Poland
S.p. z o.o., a company organized under the laws of Poland; (xi) Sonoco Barcelona
S.A., a company organized under the laws of Spain; (xii) Sonoco Pina S.A., a
company

                               Exhibit A - Page 14
<PAGE>

organized under the laws of Spain; (xiii) Sonoco Ambalaj Sanayi ve Ticaret AS, a
company organized under the laws of Turkey; (xiv) Sonoco Norge AS, a company
organized under the laws of Norway; (xv) Sonoco Newco UK; (xvi) Sonoco Europe
S.A., a company organized under the laws of Belgium; (xvii) Sonoco Greece;
(xviii) Sonoco Netherlands B.V., a company organized under the laws of The
Netherlands; (xix) Schweighouse; (xx) Sodarec; and (xxi) Sonoco Newco Germany.

         "SONOCO PREDECESSOR COMPANIES" means the Sonoco UK Predecessor and the
Sonoco Greece Predecessor.

         "SONOCO PRODUCTS" has the meaning set forth in the Introduction.

         "SONOCO PROHIBITED TRANSACTIONS" has the meaning set forth in Section
4.1(c).

         "SONOCO REAL PROPERTY" has the meaning set forth in Section 6.14(a).

         "SONOCO REORGANIZATION" has the meaning set forth in Section 5.1(a).

         "SONOCO REORGANIZATION DEVIATIONS" has the meaning set forth in Section
4.2(a)(i)(A).

         "SONOCO SHARES" has the meaning set forth in Section 2.2(a).

         "SONOCO TAX RETURNS" has the meaning set forth in Section 6.13(a).

         "SONOCO UK PREDECESSOR" means Sonoco Ltd., the predecessor of Sonoco
Newco UK, in respect of its operation of its allocable portion of the Sonoco
Business, prior to the Transfer of such allocable portion of the Sonoco Services
to Sonoco Newco UK.

         "SURVIVAL PERIOD" has the meaning set forth in Section 10.1(a).

         "TAXES" means all national, local and foreign taxes (including without
limitation income, withholding on dividends, interest and royalties, profit,
franchise, sales, use, real property, personal property, value added (VAT), ad
valorem, excise, employment, wage taxes, and withholding taxes or advance
payments regarding taxes as well as social security contributions, stamp or
capital taxes and taxes on net wealth) and installments of estimated taxes,
assessments, deficiencies, levies, imports, duties, license fees, registration
fees, withholdings, or other similar charges of every kind, character or
description imposed by any governmental or quasi-governmental authorities, and
any interest, penalties or additions to tax imposed thereon or in connection
therewith.

                               Exhibit A - Page 15
<PAGE>

         "TAX RETURN" means any return, declaration, report, claim for refund or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

         "TERRITORY" means, collectively, the countries of continental Africa,
Europe (including Russia) and the Middle East (for purposes of this Contribution
Agreement the following countries shall be deemed to be the Middle East:
Afganistan, Bahrain, Cyprus, Iran, Iraq, Israel, Jordan, Kuwait, Kyrgyzstan,
Lebanon, Oman, Pakistan, Qatar, Saudi Arabia, Syria, Tajikistan, Turkey,
Turkmenistan, United Arab Emirates, Uzbekistan and Yemen).

         "TRANSACTION" has the meaning set forth in the Recitals.

         "TRANSACTION DOCUMENTS" has the meaning set forth in Section 6.2(a).

         "TRANSFER" means, as to any security or assets, to sell, or in any
other way transfer, assign, gift, contribute, pledge, grant a security interest
in, distribute, encumber or otherwise dispose of (including, without limitation,
the foreclosure or other acquisition by any lender with respect to any security
or asset pledged to such lender by the holder of such security or asset), such
security or asset, either voluntarily or involuntarily and with or without
consideration.

         "UK PENSION OBLIGATION" means any Pension obligation of any member of
the Sonoco Group incorporated or active in the UK with respect to employees who
are not, at the time of the Sonoco Reorganization, active exclusively in the
Sonoco Business and either are not Transferred, or object to being Transferred,
to the Joint Venture in connection with the transactions contemplated hereby.

         "UK PENSION PLAN" has the meaning set forth in Section 5.14(a).

         "UK TRANSFERRED EMPLOYEES" has the meaning set forth in Section 5.14.

         "VP SUPPLY AGREEMENT" has the meaning set forth in Section 3.2(e)(vii).

         "WOR ACT" has the meaning set forth in Section 8.10.

                                     * * * *

                               Exhibit A - Page 16

<PAGE>

                                    EXHIBIT H
                            TO CONTRIBUTION AGREEMENT

                              LIST OF NEW DIRECTORS

Sonoco Appointees
-----------------
Harris DeLoach
Charles Hupfer
Jim Bowen
Isabelle Flamme

Ahlstrom Appointees
-------------------
Juha Rantanen
Svante Adde
Alex Schmitt

                               Exhibit H - Page 1

<PAGE>

                                    EXHIBIT T
                            TO CONTRIBUTION AGREEMENT

                     DESCRIPTION OF AHLSTROM REORGANIZATION

1.       The contribution by Ahlstrom Corp of its direct and indirect interests
         in the Ahlstrom Holding Companies and the Ahlstrom Operating Companies
         to Ahlstrom Holding.

2.       With affect as of the Closing Date, Ahlstrom Corp shall, and shall
         cause its Affiliates to, terminate all management services agreements
         and division management services agreements between any of the Ahlstrom
         Holding Companies or the Ahlstrom Operating Companies, on the one hand,
         and Ahlstrom Corp or any of its other Affiliates, on the other hand,
         referred to in Schedule 7.11. Any amounts paid under such agreements
         for the period from January 1, 2004 through the Closing Date shall be
         promptly reimbursed to the payor from the respective payee after the
         Closing Date including interest thereon from the date the payment was
         made until the date the reimbursement is made at a rate of 3% per
         annum.

         As soon as practicable after the Closing Date (but in no event later
         than 45 days after the Closing Date), Ahlstrom Corp will prepare and
         deliver to Sonoco Products a reasonably detailed report on such
         payments and reimbursements.

                               Exhibit T - Page 1

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