Document:

Security Agreement

 EXHIBIT 10.02 
  
 SECURITY AGREEMENT 
  
 SECURITY AGREEMENT, dated as of June 24, 2003, between CARAUSTAR INDUSTRIES, INC., a North Carolina corporation (“Caraustar”), and each
of the Subsidiaries of Caraustar listed on the signature pages hereto as a “Grantor” (Caraustar and each such Subsidiary, individually, a “Grantor”, and, collectively, “Grantors”), and BANK OF AMERICA,
N.A., in its capacity as the Agent for the Lenders. 
  
 W
I T N E S S E T H : 
  
 WHEREAS, pursuant to that certain Credit Agreement dated as of the date hereof by and among Grantors, Agent, Lenders, Banc of America Securities LLC, as arranger (including all annexes, exhibits and schedules thereto,
as from time to time amended, restated, supplemented or otherwise modified, the “Credit Agreement”), Lenders have agreed to make the Loans and issue Letters of Credit on behalf of Grantors; 
  
 WHEREAS, in order to induce Agent and Lenders to enter into the Credit
Agreement and the other Loan Documents and to induce Lenders to make the Loans and issue Letters of Credit as provided for in the Credit Agreement, each Grantor has agreed to grant a continuing Lien on the Collateral (as hereinafter defined) to
secure the Obligations; 
  
 NOW, THEREFORE, in consideration of
the premises and mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. DEFINED TERMS. The following terms shall have the following
respective meanings: 
  
 “Accounts” means all of
each Grantor’s now owned or hereafter acquired or arising accounts, as defined in the UCC, including any rights to payment for the sale or lease of goods or rendition of services, whether or not they have been earned by performance. 

 
 “Affiliate” means, as to any Person, any other Person
which, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person or which owns, directly or indirectly, five percent (5%) or more of the outstanding equity interest of such Person. A Person shall be
deemed to control another Person if the controlling Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the other Person, whether through the ownership of voting securities, by
contract, or otherwise. 
  
 “Assigned Contracts”
means, collectively, all of each Grantor’s rights and remedies under, and all moneys and claims for money due or to become due to any Grantor under, those contracts set forth on Schedule IV hereto, and any and all amendments,
supplements, extensions, and renewals thereof, including all rights and claims of each Grantor now or hereafter existing: (i) under any insurance, indemnities, warranties, and guarantees provided for or arising out of or in connection with any of
the foregoing agreements; (ii) for any 

 
damages arising out of or for breach or default under or in connection with any of the foregoing contracts; (iii) to all other amounts from time to time paid
or payable under or in connection with any of the foregoing agreements; or (iv) to exercise or enforce any and all covenants, remedies, powers and privileges thereunder. 
  
 “Chattel Paper” means all of each Grantor’s now owned or hereafter acquired chattel paper, as defined
in the UCC, including electronic chattel paper. 
  
 “Deposit Accounts” means all “deposit accounts” as such term is defined in the UCC, now or hereafter held in the name of any Grantor. 
  
 “Documents” means all documents as such term is defined in the UCC, including bills of lading, warehouse
receipts or other documents of title, now owned or hereafter acquired by any Grantor. 
  
 “Dominion Date” means the date on which Agent, in accordance with the terms of a Blocked Account Agreement, gives notice to any Clearing Bank that Agent is exercising dominion over the applicable
Payment Account and that withdrawals by Grantors are no longer permitted from such Payment Account, provided that, notwithstanding anything to the contrary in any Blocked Account Agreement, Agent may not give any such notice prior to the first day
on which (a) Availability is less than $15,000,000, (b) Suppressed Availability is less than $20,000,000, or (c) an Event of Default occurs. 
  
 “Equipment” means all of each Grantor’s now owned and hereafter acquired machinery, equipment, furniture, furnishings, fixtures, and
other tangible personal property (except Inventory), including embedded software, motor vehicles with respect to which a certificate of title has been issued, aircraft, dies, tools, jigs, molds and office equipment, as well as all of such types of
property leased by any Grantor and all of each Grantor’s rights and interests with respect thereto under such leases (including, without limitation, options to purchase); together with all present and future additions and accessions thereto,
replacements therefor, component and auxiliary parts and supplies used or to be used in connection therewith, and all substitutes for any of the foregoing, and all manuals, drawings, instructions, warranties and rights with respect thereto; wherever
any of the foregoing is located. 
  
 “General
Intangibles” means all of each Grantor’s now owned or hereafter acquired general intangibles, choses in action and causes of action and all other intangible personal property of each Grantor of every kind and nature (other than
Accounts), including, without limitation, all contract rights, payment intangibles, Proprietary Rights, corporate or other business records, inventions, designs, blueprints, plans, specifications, patents, patent applications, trademarks, service
marks, trade names, trade secrets, goodwill, copyrights, computer software, customer lists, registrations, licenses, franchises, tax refund claims, any funds which may become due to any Grantor in connection with the termination of any employee
benefit plan or any rights thereto and any other amounts payable to any Grantor from any employee benefit plan, rights and claims against carriers and shippers, rights to indemnification, business interruption insurance and proceeds thereof,
property, casualty or any similar type of insurance and any proceeds thereof, proceeds of insurance covering the lives of key employees on which any Grantor is beneficiary, rights to receive dividends, distributions, cash, Instruments 

  

 2 

 
and other property in respect of or in exchange for pledged equity interests or Investment Property and any letter of credit, guarantee, claim, security
interest or other security held by or granted to any Grantor. 
  
 “Goods” means all “goods” as defined in the UCC, now owned or hereafter acquired by any Grantor, wherever located, including embedded software to the extent included in “goods” as defined in the UCC,
manufactured homes, standing timber that is cut and removed for sale and unborn young of animals. 
  
 “Instruments” means all instruments as such term is defined in the UCC, now owned or hereafter acquired by any Grantor. 
  
 “Inventory” means all of each Grantor’s now owned and
hereafter acquired inventory, goods and merchandise, wherever located, to be furnished under any contract of service or held for sale or lease, all returned goods, raw materials, work-in-process, finished goods (including embedded software), other
materials and supplies of any kind, nature or description which are used or consumed in any Grantor’s business or used in connection with the packing, shipping, advertising, selling or finishing of such goods, merchandise, and all documents of
title or other Documents representing them. 
  
 “Investment Property” means all of each Grantor’s right title and interest in and to any and all: (a) securities whether certificated or uncertificated; (b) securities entitlements; (c) securities accounts; (d)
commodity contracts; or (e) commodity accounts. 
  
 “Letter-of-Credit Rights” means “letter-of-credit rights” as such term is defined in the UCC, now owned or hereafter acquired by any Grantor, including rights to payment or performance under a letter of credit,
whether or not any Grantor, as beneficiary, has demanded or is entitled to demand payment or performance. 
  
 “Payment Account” means each bank account established pursuant to this Security Agreement, to which the proceeds of Accounts and other
Collateral are deposited or credited. 
  
 “Proprietary
Rights” means all of each Grantor’s now owned and hereafter arising or acquired: licenses, franchises, permits, patents, patent rights, copyrights, works which are the subject matter of copyrights, trademarks, service marks, trade
names, trade styles, patent, trademark and service mark applications, and all licenses and rights related to any of the foregoing, and all other rights under any of the foregoing, all extensions, renewals, reissues, divisions, continuations, and
continuations-in-part of any of the foregoing, and all rights to sue for past, present and future infringement of any of the foregoing. 
  
 “Software” means all “software” as such term is defined in the UCC, now owned or hereafter acquired by any Grantor, other than
software embedded in any category of Goods, including all computer programs and all supporting information provided in connection with a transaction related to any program. 
  
 “Supporting Obligations” means all supporting obligations as such term is defined in the UCC. 

 

 3 

 “UCC” means the Uniform Commercial Code, as in effect from time to time, of the State of
Georgia or of any other state the laws of which are required as a result thereof to be applied in connection with the issue of perfection of security interests. 
  

All other capitalized terms used but not otherwise defined herein have the meanings given to them in the Credit Agreement or in Annex A thereto. All
other undefined terms contained in this Security Agreement, unless the context indicates otherwise, have the meanings provided for by the UCC to the extent the same are used or defined therein. 
  
 2. GRANT OF LIEN. 
  
 (a) As security for all Obligations, each Grantor hereby grants to Agent,
for the benefit of Agent and Lenders, a continuing security interest in, lien on, assignment of and right of set-off against, all of the following property and assets of such Grantor, whether now owned or existing or hereafter acquired or arising,
regardless of where located: 
  
 (i) all Accounts; 
  
 (ii) all Inventory; 
  
 (iii) all contract rights, including Assigned Contracts; 
  
 (iv) all Chattel Paper; 
  
 (v) all Documents; 
  
 (vi) all Instruments; 
  
 (vii) all Supporting Obligations and Letter-of-Credit Rights; 
  
 (viii) all General Intangibles (including payment intangibles and Software);

  
 (ix) all Goods (other than Equipment); 
  
 (x) all Investment Property; 
  
 (xi) all money, cash, cash equivalents, securities and other property of any
kind of any Grantor held directly or indirectly by Agent or any Lender; 
  
 (xii) all of each Grantor’s Deposit Accounts, credits, and balances with and other claims against Agent or any Lender or any of their Affiliates or any other financial institution with which any Grantor maintains
deposits, including any Payment Accounts; 
  
 (xiii) all books,
records and other property related to or referring to any of the foregoing, including books, records, account ledgers, data processing records, computer software and other property and General Intangibles at any time evidencing or relating to any of
the foregoing; 
  
 (xiv) the commercial tort claims described on
Schedule V; and 
  

 4 

 (xv) all accessions to, substitutions for and replacements, products and proceeds of any of the
foregoing, including, but not limited to, proceeds of any insurance policies, claims against third parties, and condemnation or requisition payments with respect to all or any of the foregoing. 
  
 All of the foregoing, together with all equity interests in Subsidiaries pledged to Agent,
and all other property of any Grantor in which Agent or any Lender may at any time be granted a Lien as collateral for the Obligations, is herein collectively referred to as the “Collateral.” 
  
 (b) All of the Obligations shall be secured by all of the Collateral.

  
 3. PERFECTION AND PROTECTION OF SECURITY
INTEREST. 
  
 (a) Grantors shall, at their expense,
perform all steps requested by Agent in good faith at any time to perfect, maintain, protect, and enforce Agent’s Liens, including: (i) executing, delivering and/or filing and recording of the Patent and Trademark Agreements and the Copyright
Security Agreement, and executing and filing financing or continuation statements, and amendments thereof, in form and substance reasonably satisfactory to Agent; (ii) delivering to Agent warehouse receipts covering any portion of the Collateral
located in warehouses and for which warehouse receipts are issued and certificates of title covering any portion of the collateral for which certificates of title have been issued; (iii) when an Event of Default has occurred and is continuing,
transferring Inventory to warehouses or other locations designated by Agent; (iv) placing notations on Grantors’ books of account to disclose Agent’s security interest; and (v) taking such other steps as are deemed necessary or desirable
by Agent in good faith to maintain and protect Agent’s Liens. Grantors agree that a carbon, photographic, photostatic, or other reproduction of this Security Agreement or of a financing statement is sufficient as a financing statement.

  
 (b) Unless Agent shall otherwise consent in writing (which
consent may be revoked), Grantors shall deliver to Agent all Collateral consisting of negotiable Documents, certificated securities (accompanied by stock papers executed in blank), Chattel Paper and Instruments promptly after any Grantor receives
the same. 
  
 (c) Grantors shall obtain or use their commercially
reasonable efforts to obtain waivers or subordinations of Liens from landlords and mortgagees, and Grantors shall in all instances obtain signed acknowledgements of Agent’s Liens from bailees having possession of any Collateral that they hold
for the benefit of Agent, in each case with respect to locations at any time having Collateral valued in excess of $1,000,000. 
  
 (d) Unless waived by Agent in writing (which waiver may be revoked), Grantor shall obtain authenticated control agreements, in form and substance
reasonably satisfactory to Agent, from each issuer of uncertificated securities, securities intermediary, or commodities intermediary issuing or holding any financial assets or commodities to or for any Grantor. 
  
 (e) If any Grantor is or becomes the beneficiary of a letter of credit,
Grantors shall promptly notify Agent thereof and enter into a tri-party agreement with Agent and the issuer and/or confirmation bank with respect to Letter-of-Credit Rights, assigning such Letter-of- 

  

 5 

 
Credit Rights to Agent and directing all payments thereunder to the Payment Account, all in form and substance reasonably satisfactory to Agent. 

 
 (f) Grantors shall take all steps necessary to grant Agent control of all
electronic chattel paper in accordance with the Code and all “transferable records” as defined in the Uniform Electronic Transactions Act. 
  
 (g) Each Grantor hereby irrevocably authorizes Agent at any time and from time to time to file in any filing office in any jurisdiction any initial
financing statements and amendments thereto that (a) indicate the Collateral (i) as any or all assets of such Grantor covered by the Agent’s Liens, or (ii) as being of an equal or lesser scope or with greater detail, and (b) contain any other
information required by part 5 of Article 9 of the UCC of the State of Georgia for the sufficiency or filing office acceptance of any financing statement or amendment, including whether such Grantor is an organization, the type of organization and
any organization identification number issued to such Grantor. Each Grantor agrees to furnish any such information to Agent promptly upon request. Each Grantor also ratifies its authorization for Agent to have filed any like initial financing
statements or amendments thereto if filed prior to the date hereof. 
  
 (h) Grantors shall promptly notify Agent of any commercial tort claim (as defined in the UCC) acquired by any Grantor and unless otherwise consented by Agent, Grantors shall enter into a supplement to this Security Agreement, granting to
Agent a Lien in such commercial tort claim. 
  
 (i) From time to
time, Grantors shall, upon Agent’s request, execute and deliver confirmatory written instruments pledging to Agent, for the ratable benefit of Agent and Lenders, the Collateral, but any Grantor’s failure to do so shall not affect or limit
any security interest or any other rights of Agent or any Lender in and to the Collateral with respect to any Grantor. So long as the Credit Agreement is in effect and until all Obligations have been fully satisfied, Agent’s Liens shall
continue in full force and effect in all Collateral (whether or not deemed eligible for the purpose of calculating the Availability or as the basis for any advance, loan, extension of credit, or other financial accommodation). 
  
 (j) Grantors’ shall reimburse Agent for the out-of-pocket costs incurred
by Agent in obtaining certificates of good standing for each Grantor from its state of incorporation or organization, provided, that, (A) if no Event of Default exists, Grantors shall not be responsible for the costs relating to more than one such
certificate obtained by Agent with respect to each Grantor during any particular quarter, and (B) Agent shall have no obligation to obtain such certificates. 
  
 (k) Without limiting the prohibitions on mergers involving Grantors contained in the Credit Agreement, no Grantor shall reincorporate or reorganize itself
under the laws of any jurisdiction other than the jurisdiction in which it is incorporated or organized as of the date hereof or change its type of entity as identified on Schedule II without the prior written consent of Agent. 
  

 6 

 (l) Each Grantor acknowledges that it is not authorized to file any financing statement or amendment or
termination statement with respect to any financing statement without the prior written consent of Agent and agrees that it will not do so without the prior written consent of Agent, subject to Grantors’ rights under Section 9-509(d)(2) of the
UCC. 
  
 (m) No Grantor shall enter into any contract or agreement
that restricts or prohibits the grant of a security interest in (i) Chattel Paper or payment intangibles or the proceeds of the foregoing to Agent, except to the extent that any such restriction or prohibition is unenforceable under the Uniform
Commercial Code, or (ii) Accounts or Instruments. 
  
 4.
LOCATION OF COLLATERAL. (a) Each Grantor represents and warrants to Agent and Lenders that: (A) Schedule I is a correct and complete list of the location of such Grantor’s chief executive office, the location of its books and
records, the locations of the Collateral, and the locations of all of its other places of business; and (b) Schedule I correctly identifies any of such facilities and locations that are not owned by such Grantor and sets forth the names of
the owners and lessors or sublessors of such facilities and locations. Each Grantor covenants and agrees that it will not (i) maintain any Collateral at any location other than those locations listed for such Grantor on Schedule I, (ii)
otherwise change or add to any of such locations, or (iii) change the location of its chief executive office from the location identified in Schedule I, unless it gives Agent at least thirty (30) days’ prior written notice thereof and
executes any and all financing statements and other documents that Agent reasonably requests in connection therewith. Without limiting the foregoing, each Grantor represents that all of its Inventory (other than Inventory in transit) is, and
covenants that all of its Inventory will be, located either (a) on premises owned by such Grantor, (b) on premises leased by such Grantor, or (c) in a warehouse pursuant to an agreement with the applicable warehouseman. 
  
 5. JURISDICTION OF ORGANIZATION. Each Grantor represents and
warrants to Agent and Lenders that Schedule II hereto identifies such Grantor’s name as of the Closing Date as it appears in official filings in the state of its incorporation or other organization, the type of entity of such Grantor
(including corporation, partnership, limited partnership or limited liability company), organizational identification number issued by such Grantor’s state of incorporation or organization or a statement that no such number has been issued, and
the jurisdiction in which such Grantor is incorporated or organized. Each Grantor has only one state of incorporation or organization. 
  
 6. TITLE TO, LIENS ON, AND SALE AND USE OF COLLATERAL. Each Grantor represents and warrants to Agent and Lenders and agrees with Agent and
Lenders that: (a) such Grantor has rights in and the power to transfer all of the Collateral free and clear of all Liens whatsoever, except for Permitted Liens; (b) Agent’s Liens in the Collateral will not be subject to any prior Lien except
for those Liens identified in clauses (c), (d), (e) and (f) of the definition of Permitted Liens; and (c) such Grantor will use, store, and maintain the Collateral with all reasonable care and will use such Collateral for
lawful purposes only. 
  
 7. APPRAISALS. Whenever a
Default or Event of Default exists, and at such other times not more frequently than once a year as Agent requests, Grantors shall, at their expense and upon Agent’s request, provide Agent with appraisals or updates thereof of any or all of the
Collateral from an appraiser, and prepared on a basis, satisfactory to Agent, such appraisals and 

  

 7 

 
updates to include, without limitation, information required by applicable law and regulation and by the internal policies of Lenders. 
  
 8. ACCESS AND EXAMINATION. Agent, accompanied by any Lender
which so elects, may at all reasonable times during regular business hours (and at any time when an Event of Default exists and is continuing) have access to, examine, audit, make extracts from or copies of and inspect any or all of each
Grantor’s records, files, and books of account and the Collateral, and discuss each Grantor’s affairs with each Grantor’s officers and management. Grantors will deliver to Agent any instrument necessary for Agent to obtain records
from any service bureau maintaining records for any Grantor. Agent may, and at the direction of the Required Lenders shall, at any time when an Event of Default exists, and at Grantors’ expense, make copies of all of each Grantor’s books
and records, or require each Grantor to deliver such copies to Agent. Agent may, without expense to Agent, use such of Grantors’ respective personnel, supplies and Real Estate as may be reasonably necessary for maintaining or enforcing
Agent’s Liens. Agent shall have the right, at any time, in Agent’s name or in the name of a nominee of Agent, to verify the validity, amount or any other matter relating to the Accounts, Inventory, or other Collateral, by mail, telephone,
or otherwise. 
  
 9. ACCOUNTS. 
  
 (a) Each Grantor hereby represents and warrants to Agent and Lenders, with
respect to such Grantor’s Eligible Accounts, that: (i) each existing Eligible Account represents, and each future Eligible Account will represent, a bona fide sale or lease and delivery of goods by such Grantor, or rendition of
services by such Grantor, in the ordinary course of such Grantor’s business; (ii) each existing Eligible Account is, and each future Eligible Account will be, for a liquidated amount payable by the Account Debtor thereon on the terms set forth
in the invoice therefor or in the schedule thereof delivered to Agent, without any offset, deduction, defense, or counterclaim except those known to such Grantor and disclosed to Agent and Lenders pursuant to this Security Agreement; (iii) no
payment will be received with respect to any Eligible Account, and no credit, discount, or extension, or agreement therefor will be granted on any Eligible Account, except as reported to Agent and Lenders in Borrowing Base Certificates delivered in
accordance with the Credit Agreement; (iv) each copy of an invoice delivered to Agent by such Grantor will be a genuine copy of the original invoice sent to the Account Debtor named therein; and (v) all goods described in any invoice representing a
sale of goods will have been delivered to the Account Debtor and all services of such Grantor described in each invoice will have been performed. 
  
 (b) No Grantor shall re-date any invoice or sale or make sales on extended dating beyond that customary in such Grantor’s business or extend or
modify any Account. If any Grantor becomes aware of any matter adversely affecting the collectibility of any Account or the Account Debtor therefor involving an amount greater than $750,000, including information regarding the Account Debtor’s
creditworthiness, such Grantor will promptly so advise Agent and, to the extent such matter results in such Account no longer being eligible in accordance with the definition of “Eligible Accounts”, exclude such Account from Eligible
Accounts. 
  
 (c) No Grantor shall accept any note or other
instrument (except a check or other instrument for the immediate payment of money) with respect to any Account without 

  

 8 

 
Agent’s written consent. If Agent consents to the acceptance of any such instrument, it shall be considered as evidence of the Account and not payment
thereof and such Grantor will promptly deliver such instrument to Agent, endorsed by such Grantor to Agent in a manner satisfactory in form and substance to Agent. Regardless of the form of presentment, demand, notice of protest with respect
thereto, Grantors shall remain liable thereon until such instrument is paid in full. 
  
 (d) Grantors shall notify Agent promptly of all disputes and claims in excess of $750,000 with any Account Debtor, and agree to settle, contest, or adjust such dispute or claim at no expense to Agent or any Lender. No
discount, credit or allowance shall be granted to any such Account Debtor without Agent’s prior written consent, except for discounts, credits and allowances made or given in the ordinary course of Grantors’ business when no Event of
Default exists hereunder. Grantors shall send Agent a copy of each credit memorandum in excess of $500,000 promptly after issuance, and Grantors shall promptly report that credit on Borrowing Base Certificates submitted by them. Agent may at all
times when an Event of Default exists, settle or adjust disputes and claims directly with Account Debtors for amounts and upon terms which Agent or the Required Lenders, as applicable, shall consider advisable and, in all cases, Agent will credit
the Loan Account with the net amounts received by Agent in payment of any Accounts. 
  
 (e) If an Account Debtor returns any Inventory to a Grantor when no Event of Default exists, then such Grantor shall promptly determine the reason for such return and shall, to the extent appropriate, issue a credit
memorandum to the Account Debtor in the appropriate amount. Grantors shall immediately report to Agent any return involving an amount in excess of $750,000. Each such report shall indicate the reasons for the returns and the locations and condition
of the returned Inventory. In the event any Account Debtor returns Inventory to a Grantor when an Event of Default exists, such Grantor, upon the request of Agent, shall: (i) hold the returned Inventory in trust for Agent; (ii) segregate all
returned Inventory from all of its other property; (iii) dispose of the returned Inventory solely according to Agent’s written instructions; and (iv) not issue any credits or allowances with respect thereto without Agent’s prior written
consent. All returned Inventory shall be subject to Agent’s Liens thereon. Whenever any Inventory is returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned
Inventory and such returned Inventory shall not be Eligible Inventory. 
  
 10. COLLECTION OF ACCOUNTS; PAYMENTS. 
  
 (a) Until Agent notifies the Borrowers’ Agent to the contrary, Grantors shall make collection of all Accounts and other Collateral for Agent, shall receive all payments as Agent’s trustee, and shall immediately deliver all
payments in their original form duly endorsed in blank into a Payment Account established for the account of Grantors at a Clearing Bank acceptable to Agent, subject to a Blocked Account Agreement; provided, that, prior to the Dominion Date,
Grantors shall have access to and full use of all such collections deposited into a Payment Account. On or prior to the date hereof, Grantors shall establish a lock-box service for collections of Accounts at a Clearing Bank acceptable to Agent and
subject to a Blocked Account Agreement and other documentation acceptable to Agent. Grantors shall instruct all Account Debtors to make all payments directly to the address established for such service. If, notwithstanding such instructions, any
Grantor receives any proceeds of Accounts, it shall 

  

 9 

 
receive such payments as Agent’s trustee, and shall immediately deposit such payments into a Payment Account; provided, that, prior to the Dominion
Date, Grantors shall have access to and full use of all such amounts deposited into a Payment Account. On and after the Dominion Date, all collections received in any lock-box or Payment Account or directly by any Grantor or Agent, and all funds in
any Payment Account or other account to which such collections are deposited, shall be subject to Agent’s sole control and withdrawals by Grantors shall not be permitted. 
  
 (b) Agent or Agent’s designee may, at any time after the occurrence and during the continuance of an Event of Default,
notify Account Debtors that the Accounts have been assigned to Agent and of Agent’s security interest therein, and may collect them directly and charge the collection costs and expenses to the Loan Account as a Revolving Loan. So long as an
Event of Default has occurred and is continuing, Grantors, at Agent’s request, shall execute and deliver to Agent such documents as Agent shall require to grant Agent access to any post office box in which collections of Accounts are received.

  
 (c) If sales of Inventory are made or services are rendered
for cash, Grantors shall immediately deposit into a Payment Account the cash which any Grantor receives; provided, that, prior to the Dominion Date, Grantors shall have access to and full use of all such amounts deposited into a Payment Account.

  
 (d) All payments received by Agent will be Agent’s sole
property for its benefit and the benefit of Lenders and will be credited to the Loan Account (conditional upon final collection) after allowing two (2) Business Days for collection (except for wire transfers of immediately available funds, which
will be credited upon receipt); provided, however, that such payments shall be deemed to be credited to the Loan Account immediately upon receipt for purposes of (i) determining Availability, (ii) calculating the Unused Line Fee
pursuant to Section 2.5 of the Credit Agreement, and (iii) calculating the amount of interest accrued thereon solely for purposes of determining the amount of interest to be distributed by Agent to Lenders (but not the amount of interest payable by
Grantors). 
  
 (e) In the event Grantors repay all of the
Obligations upon the termination of the Credit Agreement or upon acceleration of the Obligations, other than through Agent’s receipt of payments on account of the Accounts or proceeds of the other Collateral, such payment will be credited
(conditioned upon final collection) to Grantor’s Loan Account two (2) Business Days after Agent’s receipt of immediately available funds. 
  
 11. INVENTORY. 
  
 (a) Each Grantor represents and warrants to Agent and Lenders and agrees with Agent and Lenders that all of the Inventory owned by such Grantor is and
will be held for sale or lease, or to be furnished in connection with the rendition of services, in the ordinary course of such Grantor’s business, and is and will be fit for such purposes. Each Grantor will keep its Inventory in good and
marketable condition, except for damaged or defective goods arising in the ordinary course of such Grantor’s business. Each Grantor agrees that all Inventory produced by such Grantor in the United States of America will be produced in
accordance with the Federal Fair Labor Standards Act of 1938, as amended, and all rules, regulations, and orders thereunder. Grantors will conduct a physical count of the Inventory at least once per Fiscal Year, 

  

 10 

 
and after and during the continuation of an Event of Default, at such other times as Agent requests. 
  
 (b) In connection with all Inventory financed by Letters of Credit, Grantors
will, at Agent’s request, instruct all suppliers, carriers, forwarders, customs brokers, warehouses or others receiving or holding cash, checks, Inventory, Documents or Instruments in which Agent holds a security interest to deliver them to
Agent and/or subject to Agent’s order, and if they shall come into a Grantor’s possession, to deliver them, upon request, to Agent in their original form. Grantors shall also, at Agent’s request, designate Agent as the consignee on
all bills of lading and other negotiable and non-negotiable documents. 
  
 12. EQUIPMENT. 
  
 (a) Each Grantor
represents and warrants to Agent and Lenders and agrees with Agent and Lenders that all of the Equipment owned by such Grantor material to the conduct of its business is and will be used or held for use in such Grantor’s business, and is and
will be fit for such purposes. Each Grantor shall keep and maintain its Equipment material to the conduct of its business in good operating condition and repair (ordinary wear and tear excepted) and shall make all necessary replacements thereof.

  
 (b) No Grantor shall permit any Equipment to become subject to
any Lien other than Permitted Liens. 
  
 13. ASSIGNED
CONTRACTS. Each Grantor shall fully perform all of its obligations under each of the Assigned Contracts, and shall enforce all of its rights and remedies thereunder, in each case, as it deems appropriate in its business judgment;
provided, however, that, during the existence of an Event of Default, no Grantor shall take any action or fail to take any action with respect to its Assigned Contracts which would cause the termination of a material Assigned Contract
or have a materially adverse effect upon the full enforcement of all indemnification rights under its Assigned Contracts. Grantors shall notify Agent and Lenders in writing, promptly after any Grantor becomes aware thereof, of any event or fact
which could give rise to a material claim by a Grantor for indemnification under any of its Assigned Contracts, and shall pursue such right as it deems appropriate in its business judgment and report to Agent on all further developments with respect
thereto. After the Dominion Date, Grantors shall deposit into the Payment Account or remit directly to Agent for application to the Obligations, all amounts received by any Grantor as indemnification or otherwise pursuant to its Assigned Contracts.
If any Grantor shall fail after Agent’s demand to pursue diligently any right under its Assigned Contracts, or if an Event of Default then exists and is continuing, Agent may, and at the direction of the Required Lenders shall, directly enforce
such right in its own or such Grantor’s name and may enter into such settlements or other agreements with respect thereto as Agent or the Required Lenders, as applicable, shall determine. In any suit, proceeding or action brought by Agent for
the benefit of Lenders under any Assigned Contract for any sum owing thereunder or to enforce any provision thereof, Grantors shall indemnify and hold Agent and Lenders harmless from and against all expense, loss or damage suffered by reason of any
defense, setoff, counterclaims, recoupment, or reduction of liability whatsoever of the obligor thereunder arising out of a breach by any Grantor of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any
time owing from any Grantor to or in favor of such 

  

 11 

 
obligor or its successors. All such obligations of Grantors shall be and remain enforceable only against Grantors and shall not be enforceable against Agent
or Lenders. Notwithstanding any provision hereof to the contrary, Grantors shall at all times remain liable to observe and perform all of their duties and obligations under their Assigned Contracts, and Agent’s or any Lender’s exercise of
any of their respective rights with respect to the Collateral shall not release any Grantor from any of such duties and obligations. Neither Agent nor any Lender shall be obligated to perform or fulfill any of Grantors’ duties or obligations
under their Assigned Contracts or to make any payment thereunder, or to make any inquiry as to the nature or sufficiency of any payment or property received by it thereunder or the sufficiency of performance by any party thereunder, or to present or
file any claim, or to take any action to collect or enforce any performance, any payment of any amounts, or any delivery of any property. 
  
 14. DOCUMENTS, INSTRUMENTS, AND CHATTEL PAPER. Each Grantor represents and warrants to Agent and Lenders that (a) all
Documents, Instruments, and Chattel Paper describing, evidencing, or constituting Collateral, and all signatures and endorsements thereon, are and will be complete, valid, and genuine, and (b) all goods evidenced by such Documents, Instruments,
Letter-of-Credit Rights and Chattel Paper are and will be owned by such Grantor, free and clear of all Liens other than Permitted Liens. If any Grantor retains possession of any Chattel Paper or Instruments with Agent’s consent, such Chattel
Paper and Instruments shall be marked with the following legend: “This writing and the obligations evidenced or served hereby are subject to the security interest of Bank of America, N.A., as Agent, for the benefit of Agent and certain
Lenders.” 
  
 15. RIGHT TO CURE.
Agent may, in its discretion, and shall, at the direction of the Required Lenders, pay any amount or do any act required of any Grantor hereunder or under any other Loan Document in order to preserve, protect, maintain or enforce the Obligations,
the Collateral or Agent’s Liens therein, and which any Grantor fails to pay or do after written request from Agent, including payment of any judgment against any Grantor, any insurance premium, any warehouse charge, any finishing or processing
charge, any landlord’s or bailee’s claim, and any other Lien upon or with respect to the Collateral. All payments that Agent makes under this Section 15 and all out-of-pocket costs and expenses that Agent pays or incurs in
connection with any action taken by it hereunder shall be charged to the Loan Account as a Revolving Loan. Any payment made or other action taken by Agent under this Section 15 shall be without prejudice to any right to assert an Event of
Default hereunder and to proceed thereafter as herein provided. 
  
 16. POWER OF ATTORNEY. Each Grantor hereby appoints Agent and Agent’s designee as such Grantor’s attorney, with power: (a) so long as any Event of Default has occurred and is continuing, to endorse such
Grantor’s name on any checks, notes, acceptances, money orders, or other forms of payment or security that come into Agent’s or any Lender’s possession; (b) so long as any Event of Default has occurred and is continuing, to sign such
Grantor’s name on any invoice, bill of lading, warehouse receipt or other negotiable or non-negotiable Document constituting Collateral, on drafts against customers, on assignments of Accounts, on notices of assignment, financing statements and
other public records and to file any such financing statements by electronic means with or without a signature as authorized or required by applicable law or filing procedure; (c) so long as any Event of Default has occurred 

  

 12 

 
and is continuing, to notify the post office authorities to change the address for delivery of such Grantor’s mail to an address designated by Agent and
to receive, open and dispose of all mail addressed to such Grantor; (d) to send requests for verification of Accounts to customers or Account Debtors; (e) so long as any Event of Default has occurred and is continuing, to complete in such
Grantor’s name or Agent’s name, any order, sale or transaction, obtain the necessary Documents in connection therewith, and collect the proceeds thereof; (f) so long as any Event of Default has occurred and is continuing, to clear
Inventory through customs in such Grantor’s name, Agent’s name or the name of Agent’s designee, and to sign and deliver to customs officials powers of attorney in such Grantor’s name for such purpose; (g) to the extent that such
Grantor’s authorization given in Section 3(g) of this Security Agreement is not sufficient, to file such financing statements with respect to this Security Agreement, with or without such Grantor’s signature, or to file a photocopy
of this Security Agreement in substitution for a financing statement, as Agent may deem appropriate, and to execute in such Grantor’s name such financing statements and amendments thereto and continuation statements which may require such
Grantor’s signature; and (h) so long as any Event of Default has occurred and is continuing, to do all things necessary to carry out the Credit Agreement and this Security Agreement. Each Grantor ratifies and approves all acts of such attorney.
None of Lenders or Agent nor their attorneys will be liable for any acts or omissions or for any error of judgment or mistake of fact or law except for their willful misconduct. This power, being coupled with an interest, is irrevocable until the
Credit Agreement has been terminated and the Obligations have been fully satisfied. 
  
 17. AGENT’S AND LENDERS’ RIGHTS, DUTIES AND LIABILITIES. 
  
 (a) Grantors assume all responsibility and liability arising from or relating to the use, sale, license or other disposition of the Collateral. The
Obligations shall not be affected by any failure of Agent or any Lender to take any steps to perfect Agent’s Liens or to collect or realize upon the Collateral, nor shall loss of or damage to the Collateral release any Grantor from any of the
Obligations. Following the occurrence and during the continuation of an Event of Default, Agent may (but shall not be required to), and at the direction of the Required Lenders shall, without notice to or consent from any Grantor, sue upon or
otherwise collect, extend the time for payment of, modify or amend the terms of, compromise or settle for cash, credit, or otherwise upon any terms, grant other indulgences, extensions, renewals, compositions, or releases, and take or omit to take
any other action with respect to the Collateral, any security therefor, any agreement relating thereto, any insurance applicable thereto, or any Person liable directly or indirectly in connection with any of the foregoing, without discharging or
otherwise affecting the liability of any Grantor for the Obligations or under the Credit Agreement or any other agreement now or hereafter existing between Agent and/or any Lender and any Grantor. 
  
 (b) It is expressly agreed by each Grantor that, anything herein to the
contrary notwithstanding, such Grantor shall remain liable under each of its contracts and each of its licenses to observe and perform all the conditions and obligations to be observed and performed by it thereunder. Neither Agent nor any Lender
shall have any obligation or liability under any contract or license by reason of or arising out of this Security Agreement or the granting herein of a Lien thereon or the receipt by Agent or any Lender of any payment relating to any contract or
license pursuant hereto. Neither Agent nor any Lender shall be required or obligated in any manner to perform or fulfill any of the obligations of any Grantor under or 

  

 13 

 
pursuant to any contract or license, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it or the
sufficiency of any performance by any party under any contract or license, or to present or file any claims, or to take any action to collect or enforce any performance or the payment of any amounts which may have been assigned to it or to which it
may be entitled at any time or times. 
  
 (c) Agent may at any
time after an Event of Default shall have occurred and be continuing (or if any rights of set-off (other than set-offs against an Account arising under the contract giving rise to the same Account) or contra accounts may be asserted with respect to
the following), without prior notice to any Grantor, notify Account Debtors, and other Persons obligated on the Collateral, that Agent has a security interest therein, and that payments shall be made directly to Agent, for itself and the benefit of
Lenders. Upon the request of Agent, Grantors shall so notify Account Debtors, and other Persons obligated on Collateral. Once any such notice has been given to any Account Debtor or other Person obligated on the Collateral, Grantors shall not give
any contrary instructions to such Account Debtor or other Person without Agent’s prior written consent. 
  
 (d) Agent may at any time in Agent’s own name or in the name of any Grantor communicate with Account Debtors, parties to contracts and agreements to
which any Grantor is a party, and obligors in respect of Instruments to verify with such Persons, to Agent’s satisfaction, the existence, amount and terms of Accounts, contracts and agreements, payment intangibles, Instruments or Chattel Paper.
If an Event of Default shall have occurred and be continuing, Grantors, at their own expense, shall cause the independent certified public accountants then engaged by Grantors to prepare and deliver to Agent and each Lender at any time and from time
to time promptly upon Agent’s request the following reports with respect to Grantors: (i) a reconciliation of all Accounts; (ii) an aging of all Accounts; (iii) trial balances; and (iv) a test verification of such Accounts as Agent may request.
Grantors, at their own expense, shall deliver to Agent the results of each physical verification, if any, which Grantors may in their discretion have made, or caused any other Person to have made on their behalf, of all or any portion of their
Inventory. 
  
 18. PATENT, TRADEMARK AND COPYRIGHT
COLLATERAL. 
  
 (a) Each Grantor represents and warrants
to Agent and Lenders that (i) such Grantor does not have any interest in, or title to, any Patent, Trademark or Copyright as of the date hereof except as set forth in Schedule III hereto, (ii) the Security Agreement is effective to create a
valid and continuing Lien on and, upon filing of the Copyright Security Agreement with the United States Copyright Office and filing of the Patent and Trademark Agreements with the United States Patent and Trademark Office and the filing of
appropriate financing statements, perfected Liens in favor of Agent on such Grantor’s patents, trademarks and copyrights and such perfected Liens are enforceable as such as against any and all creditors of and purchasers from such Grantor, and
(iii) upon filing of the Copyright Security Agreements with the United States Copyright Office and filing of the Patent and Trademark Agreements with the United States Patent and Trademark Office and the filing of appropriate financing statements,
all actions necessary to protect and perfect Agent’s Lien on such Grantor’s patents, trademarks or copyrights shall have been duly taken. 
  

 14 

 (b) Each Grantor shall promptly notify Agent if it knows or has reason to know that any application or
registration relating to any material patent, trademark or copyright (now or hereafter existing) may become abandoned or dedicated, or of any adverse determination or development (including the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court) regarding such Grantor’s ownership of any material patent, trademark or copyright, its right to register the same,
or to keep and maintain the same. 
  
 (c) In no event shall any
Grantor, either directly or through any agent, employee, licensee or designee, file an application for the registration of any patent, trademark or copyright with the United States Patent and Trademark Office, the United States Copyright Office or
any similar office or agency without giving Agent prior written notice thereof, and, upon request of Agent, Grantor shall execute and deliver any and all patent security agreements, copyright security agreements or trademark security agreements as
Agent may request to evidence Agent’s Lien on such patent, trademark or copyright, and the General Intangibles of each Grantor relating thereto or represented thereby. 
  
 (d) Subject to Grantors commercially reasonable business judgment, Grantors shall take all actions necessary or requested by
Agent to maintain and pursue each application, to obtain the relevant registration and to maintain the registration of each of the patents, trademarks and copyrights (now or hereafter existing), including the filing of applications for renewal,
affidavits of use, affidavits of noncontestability and opposition and interference and cancellation proceedings. 
  
 (e) In the event that any of the material patent, trademark or copyright Collateral is infringed upon, or misappropriated or diluted by a third party,
Grantors shall notify Agent promptly after any Grantor learns thereof. Grantors shall, unless Grantors shall reasonably determine that such patent, trademark or copyright Collateral is in no way material to the conduct of their business or
operations, promptly sue for infringement, misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, and shall take such other actions as Agent shall deem appropriate under the circumstances
to protect such patent, trademark or copyright Collateral. 
  
 19. INDEMNIFICATION. In any suit, proceeding or action brought by Agent or any Lender relating to any Collateral for any sum owing with respect thereto or to enforce any rights or claims with respect thereto, Grantors will
save, indemnify and keep Agent and Lenders harmless from and against all expense (including reasonable attorneys’ fees and expenses), loss or damage suffered by reason of any defense, setoff, counterclaim, recoupment or reduction of liability
whatsoever of the Account Debtor or other Person obligated on the Collateral, arising out of a breach by any Grantor of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to, or in favor of,
such obligor or its successors from any Grantor, except in the case of Agent or any Lender, to the extent such expense, loss, or damage is attributable solely to the gross negligence or willful misconduct of Agent or such Lender. All such
obligations of Grantors shall be and remain enforceable against and only against Grantors and shall not be enforceable against Agent or any Lender. 
  

 15 

 20. LIMITATION ON LIENS ON COLLATERAL. No Grantor will create, permit or suffer to exist,
and will defend the Collateral against, and take such other action as is necessary to remove, any Lien on the Collateral except Permitted Liens, and will defend the right, title and interest of Agent and Lenders in and to any of such Grantor’s
rights under the Collateral against the claims and demands of all Persons whomsoever. 
  
 21. NOTICE REGARDING COLLATERAL. Grantors will advise Agent promptly, in reasonable detail, (i) of any Lien (other than Permitted Liens) or claim made or asserted against any of the Collateral, and (ii)
of the occurrence of any other event which would have a Material Adverse Effect. 
  
 22. REMEDIES; RIGHTS UPON DEFAULT. 
  
 (a) In addition to all other rights and remedies granted to it under this Security Agreement, the Credit Agreement, the other Loan Documents and under any other instrument or agreement securing, evidencing or relating
to any of the Obligations, if any Event of Default shall have occurred and be continuing, Agent may exercise all rights and remedies of a secured party under the UCC. Without limiting the generality of the foregoing, each Grantor expressly agrees
that in any such event Agent, without demand of performance or other demand, advertisement or notice of any kind (except the notice specified below of time and place of public or private sale) to or upon any Grantor or any other Person (all and each
of which demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the UCC and other applicable law), may forthwith enter upon the premises of each Grantor where any Collateral is located through self-help,
without judicial process, without first obtaining a final judgment or giving any Grantor or any other Person notice and opportunity for a hearing on Agent’s claim or action and may collect, receive, assemble, process, appropriate and realize
upon the Collateral, or any part thereof, and may forthwith sell, lease, license, assign, give an option or options to purchase, or sell or otherwise dispose of and deliver said Collateral (or contract to do so), or any part thereof, in one or more
parcels at a public or private sale or sales, at any exchange at such prices as it may deem acceptable, for cash or on credit or for future delivery without assumption of any credit risk. Agent or any Lender shall have the right upon any such public
sale or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase for the benefit of Agent and Lenders, the whole or any part of said Collateral so sold, free of any right or equity of redemption, which equity of
redemption each Grantor hereby releases. Such sales may be adjourned and continued from time to time with or without notice. Agent shall have the right to conduct such sales on each Grantor’s premises or elsewhere and shall have the right to
use each Grantor’s premises without charge for such time or times as Agent deems necessary or advisable. 
  
 (b) Each Grantor further agrees, at Agent’s request, to assemble the Collateral and make it available to Agent at a place or places designated by
Agent which are reasonably convenient to Agent and such Grantor, whether at such Grantor’s premises or elsewhere. Until Agent is able to effect a sale, lease, or other disposition of Collateral, Agent shall have the right to hold or use
Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or its value or for any other purpose deemed appropriate by Agent. Agent shall have no obligation to any Grantor to maintain or
preserve the rights of such Grantor as against third parties with respect to Collateral while Collateral is in the 

  

 16 

 
possession of Agent. Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of
Agent’s remedies (for the benefit of Agent and Lenders), with respect to such appointment without prior notice or hearing as to such appointment. Agent shall apply the net proceeds of any such collection, recovery, receipt, appropriation,
realization or sale to the Obligations as provided in the Credit Agreement, and only after so paying over such net proceeds, and after the payment by Agent of any other amount required by any provision of law, need Agent account for the surplus, if
any, to any Grantor. To the maximum extent permitted by applicable law, each Grantor waives all claims, damages, and demands against Agent or any Lender arising out of the repossession, retention or sale of the Collateral except such as arise solely
out of the gross negligence or willful misconduct of Agent or such Lender as finally determined by a court of competent jurisdiction. Each Grantor agrees that ten (10) days prior notice by Agent of the time and place of any public sale or of the
time after which a private sale may take place is reasonable notification of such matters. Grantors shall remain liable for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient to pay all Obligations,
including any attorneys’ fees or other expenses incurred by Agent or any Lender to collect such deficiency. 
  
 (c) Except as otherwise specifically provided herein, each Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent
permitted by applicable law) of any kind in connection with this Security Agreement or any Collateral. 
  
 (d) To the extent that applicable law imposes duties on Agent to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and
agrees that it is not commercially unreasonable for Agent (a) to fail to incur expenses reasonably deemed significant by Agent to prepare Collateral for disposition or otherwise to complete raw material or work in process into finished goods or
other finished products for disposition, (b) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third party consents for the collection
or disposition of Collateral to be collected or disposed of, (c) to fail to exercise collection remedies against Account Debtors or other Persons obligated on Collateral or to remove Liens on or any adverse claims against Collateral, (d) to exercise
collection remedies against Account Debtors and other Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (e) to advertise dispositions of Collateral through publications or media of
general circulation, whether or not the Collateral is of a specialized nature, (f) to contact other Persons, whether or not in the same business as Grantor, for expressions of interest in acquiring all or any portion of such Collateral, (g) to hire
one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (h) to dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types
included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (i) to dispose of assets in wholesale rather than retail markets, (j) to disclaim disposition warranties, such as title,
possession or quiet enjoyment, (k) to purchase insurance or credit enhancements to insure Agent against risks of loss, collection or disposition of Collateral or to provide to Agent a guaranteed return from the collection or disposition of
Collateral, or (l) to the extent deemed appropriate by Agent, to obtain the services of other brokers, investment bankers, consultants and other professionals to assist Agent in the collection or disposition of any of the Collateral. Each Grantor
acknowledges that the purpose of this Section 22(d) is to provide non-exhaustive indications of what actions or omissions by Agent 

  

 17 

 
would not be commercially unreasonable in Agent’s exercise of remedies against the Collateral and that other actions or omissions by Agent shall not be
deemed commercially unreasonable solely on account of not being indicated in this Section 22(d). Without limitation upon the foregoing, nothing contained in this Section 22(d) shall be construed to grant any rights to any Grantor or to
impose any duties on Agent that would not have been granted or imposed by this Security Agreement or by applicable law in the absence of this Section 22(d). 
  
 (e) EACH GRANTOR HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY WAIVES ALL RIGHTS WHICH IT HAS UNDER CHAPTER 14 OF TITLE 44
OF THE OFFICIAL CODE OF GEORGIA OR UNDER ANY SIMILAR PROVISION OF APPLICABLE LAW TO NOTICE AND TO A JUDICIAL HEARING PRIOR TO THE ISSUANCE OF A WRIT OF POSSESSION ENTITLING THE AGENT OR ANY LENDER, OR THE SUCCESSORS AND ASSIGNS OF AGENT OR SUCH
LENDER, TO POSSESSION OF THE COLLATERAL UPON AN EVENT OF DEFAULT. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING AND WITHOUT LIMITING ANY OTHER RIGHT WHICH AGENT OR LENDERS MAY HAVE, EACH GRANTOR CONSENTS THAT IF AGENT OR ANY LENDER FILES A
PETITION FOR AN IMMEDIATE WRIT OF POSSESSION IN COMPLIANCE WITH SECTIONS 44-14-261 AND 44-14-262 OF THE OFFICIAL CODE OF GEORGIA OR UNDER ANY SIMILAR PROVISION OF APPLICABLE LAW, AND THIS WAIVER OR A COPY HEREOF IS ALLEGED IN SUCH PETITION AND
ATTACHED THERETO, THE COURT BEFORE WHICH SUCH PETITION IS FILED MAY DISPENSE WITH ALL RIGHTS AND PROCEDURES HEREIN WAIVED AND MAY ISSUE FORTHWITH AN IMMEDIATE WRIT OF POSSESSION IN ACCORDANCE WITH CHAPTER 14 OF TITLE 44 OF THE OFFICIAL CODE OF
GEORGIA OR IN ACCORDANCE WITH ANY SIMILAR PROVISION OF APPLICABLE LAW, WITHOUT THE NECESSITY OF AN ACCOMPANYING BOND AS OTHERWISE REQUIRED BY SECTION 44-14-263 OF THE OFFICIAL CODE OF GEORGIA OR BY ANY SIMILAR PROVISION UNDER APPLICABLE LAW.

  
 23. GRANT OF LICENSE TO USE PROPRIETARY RIGHTS.
For the purpose of enabling Agent to exercise rights and remedies under Section 22 hereof (including, without limiting the terms of Section 22 hereof, in order to take possession of, hold, preserve, process, assemble, prepare for sale,
market for sale, sell or otherwise dispose of Collateral) at such time as Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to Agent, for the benefit of Agent and Lenders, an irrevocable, nonexclusive
license (exercisable without payment of royalty or other compensation to any Grantor) to use, license or sublicense any Proprietary Rights now owned or hereafter acquired by any Grantor, and wherever the same may be located, and including in such
license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof. 
  
 24. LIMITATION ON AGENT’S AND LENDERS’ DUTY IN RESPECT OF COLLATERAL. Agent and each Lender shall
use reasonable care with respect to the Collateral in its possession or under its control. Neither Agent nor any Lender shall have any other duty as to any Collateral in its possession or control or in the possession or control of any 

  

 18 

 
agent or nominee of Agent or such Lender, or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining
thereto. 
  
 25. MISCELLANEOUS. 
  
 (a) Reinstatement. This Security Agreement shall remain in
full force and effect and continue to be effective should any petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or
should a receiver or trustee be appointed for all or any significant part of any Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Obligations, or any part
thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all
as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned. 
  
 (b)
Notices. Except as otherwise provided herein, whenever it is provided herein that any notice, demand, request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any
other party, or whenever any of the parties desires to give and serve upon any other party any communication with respect to this Security Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be
in writing and shall be given in the manner, and deemed received, as provided for in the Credit Agreement. 
  
 (c) Severability. Whenever possible, each provision of this Security Agreement shall be interpreted in a manner as to be effective and valid
under applicable law, but if any provision of this Security Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of
such provision or the remaining provisions of this Security Agreement. This Security Agreement is to be read, construed and applied together with the Credit Agreement and the other Loan Documents which, taken together, set forth the complete
understanding and agreement of Agent, Lenders and Grantors with respect to the matters referred to herein and therein. 
  
 (d) No Waiver; Cumulative Remedies. Neither Agent nor any Lender shall by any act, delay, omission or otherwise be deemed to have waived any
of its rights or remedies hereunder, and no waiver shall be valid unless in writing, signed by Agent and then only to the extent therein set forth. A waiver by Agent of any right or remedy hereunder on any one occasion shall not be construed as a
bar to any right or remedy which Agent would otherwise have had on any future occasion. No failure to exercise nor any delay in exercising on the part of Agent or any Lender, any right, power or privilege hereunder, shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or future exercise thereof or the exercise of any other right, power or privilege. The rights and remedies hereunder provided are
cumulative and may be exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law. None of the terms or 

  

 19 

 
provisions of this Security Agreement may be waived, altered, modified or amended except by an instrument in writing, duly executed by Agent and Grantors (or
the Borrowers’ Agent on Grantors’ behalf). 
  
 (e)
Limitation by Law. All rights, remedies and powers provided in this Security Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this
Security Agreement are intended to be subject to all applicable mandatory provisions of law that may be controlling and to be limited to the extent necessary so that they shall not render this Security Agreement invalid, unenforceable, in whole or
in part, or not entitled to be recorded, registered or filed under the provisions of any applicable law. 
  
 (f) Termination of this Security Agreement. Subject to Section 25(a) hereof, this Security Agreement shall terminate upon the
satisfactory collateralization of all Letters of Credit, the payment in full of all other Obligations (other than indemnification Obligations as to which no claim has been asserted), and the termination of all Commitments . 
  
 (g) Successors and Assigns. This Security Agreement and all
obligations of Grantors hereunder shall be binding upon the successors and assigns of each Grantor (including any debtor-in-possession on behalf of any Grantor) and shall, together with the rights and remedies of Agent, for the benefit of Agent and
Lenders, hereunder, inure to the benefit of Agent and Lenders, all future holders of any instrument evidencing any of the Obligations and their respective successors and assigns. No sales of participations, other sales, assignments, transfers or
other dispositions of any agreement governing or instrument evidencing the Obligations or any portion thereof or interest therein shall in any manner affect the Lien granted to Agent, for the benefit of Agent and Lenders, hereunder. No Grantor may
assign, sell, hypothecate or otherwise transfer any interest in or obligation under this Security Agreement. 
  
 (h) Counterparts. This Security Agreement may be authenticated in any number of separate counterparts, each of which shall collectively and
separately constitute one and the same agreement. This Security Agreement may be authenticated by manual signature, facsimile or, if approved in writing by Agent, electronic means, all of which shall be equally valid. 
  
 (i) Governing Law. EXCEPT AS OTHERWISE EXPRESSLY
PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS SECURITY AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF GEORGIA APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE, AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. EACH GRANTOR HEREBY CONSENTS AND AGREES THAT THE COURTS OF THE STATE OF GEORGIA OR THE UNITED
STATES OF AMERICA LOCATED IN THE NORTHERN DISTRICT OF GEORGIA, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN GRANTORS, AGENT AND LENDERS PERTAINING TO THIS SECURITY AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS OR TO ANY MATTER ARISING OUT OF 

  

 20 

 
OR RELATING TO THIS SECURITY AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, PROVIDED, THAT AGENT, LENDERS AND GRANTORS ACKNOWLEDGE THAT ANY APPEALS
FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF SUCH JURISDICTIONS, AND, PROVIDED, FURTHER, NOTHING IN THIS SECURITY AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL
ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT. EACH GRANTOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN
ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH GRANTOR HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING
OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH GRANTOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS
AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE BORROWERS’ AGENT AT THE ADDRESS SET FORTH IN SECTION 14.8 OF THE CREDIT AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF
ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID. 
  
 (j) Waiver of Jury Trial. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY
RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT DISPUTES ARISING HEREUNDER OR RELATING HERETO BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG AGENT, LENDERS, AND GRANTOR ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED IN CONNECTION WITH, THIS SECURITY AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR
THE TRANSACTIONS RELATED HERETO OR THERETO. 
  
 (k) Section
Titles. The Section titles contained in this Security Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. 
  
 (l) No Strict Construction. The parties hereto have
participated jointly in the negotiation and drafting of this Security Agreement. In the event an ambiguity or question of intent or interpretation arises, this Security Agreement shall be construed as if drafted jointly 

  

 21 

 
by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of
this Security Agreement. 
  
 (m) Advice of Counsel.
Each of the parties represents to each other party hereto that it has discussed this Security Agreement and, specifically, the provisions of Sections 22(e), 25(i) and Section 25(j), with its counsel. 
  
 (n) Benefit of Lenders. All Liens granted or contemplated
hereby shall be for the benefit of Agent and Lenders, and all proceeds or payments realized from Collateral in accordance herewith shall be applied to the Obligations in accordance with the terms of the Credit Agreement. 
  
 (o) Joint and Several Obligations. Grantors shall be jointly
and severally responsible for the performance of all obligations of any or all Grantors hereunder. 
  
 [Signature Pages Begin On Next Page] 
  

 22 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be executed and
delivered by its duly authorized officer as of the date first set forth above. 
  

	 GRANTORS:
  
 CARAUSTAR INDUSTRIES, INC.
 CARAUSTAR CUSTOM PACKAGING GROUP, INC.
 CARAUSTAR RECOVERED FIBER GROUP,
INC.
 CARAUSTAR INDUSTRIAL AND CONSUMER PRODUCTS GROUP, INC.
 CARAUSTAR MILL GROUP, INC.
 SPRAGUE PAPERBOARD, INC.
 PBL INC.
 GYPSUM MGC, INC.
 MCQUEENEY GYPSUM COMPANY
 FEDERAL TRANSPORT, INC.
 CAMDEN PAPERBOARD CORPORATION
 HALIFAX PAPER BOARD COMPANY, INC.
 CARAUSTAR CUSTOM PACKAGING GROUP (MARYLAND), INC.
 CHICAGO PAPERBOARD CORPORATION

		
	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 Ronald J. Domanico
 Vice President of each of the foregoing entities

	
	 CARAUSTAR, G.P.

			
	 	 	 By:
	 	 CARAUSTAR INDUSTRIES, INC., general
 partner

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

			
	 	 	 By:
	 	 CARAUSTAR INDUSTRIAL AND
 CONSUMER PRODUCTS GROUP, INC.,
 general partner

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

	 MCQUEENY GYPSUM COMPANY, LLC

			
	 	 	 By:
	 	 MCQUEENEY GYPSUM COMPANY, sole
 member

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

	
	 PARADIGM CHEMICAL & CONSULTING, LLC
 RECCMG, LLC

			
	 	 	 By:
	 	 CARAUSTAR MILL GROUP, INC., sole
 member of each of the foregoing

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

	
	 CICPG, LLC

			
	 	 	 By:
	 	 CARAUSTAR INDUSTRIAL AND
 CONSUMER PRODUCTS GROUP, INC.,
 sole member

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

	
	 AUSTELL HOLDING COMPANY, LLC

			
	 	 	By:	 	 CARAUSTAR INDUSTRIES, INC., sole
 member

				
	 	 	 	 	By:	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

	
	 BANK OF AMERICA, N.A.,
 as the Agent

		
	By:	 	 /S/    WALTER T.
SHELLMAN

	 	 	 Walter T. Shellman, Vice President

 SCHEDULE I 
 to 
 SECURITY AGREEMENT 
  
 LOCATION OF COLLATERAL 
  

	A.	 	Location of Chief Executive Office 

  
 See Schedule II. 
  

	B.	 	Location of Books and Records 

  
 3100 Joe Jerkins Boulevard Austell, GA 30106 and each location listed on the list of Inventory locations below. 
  

	C.	 	Location of Collateral 

  
 Inventory Locations 
  

	 Caraustar Legal Entity

	  	 Address

	  	 County

	 OWNED LOCATIONS
	  	 	  	 
			
	 Caraustar Mill Group, Inc.
	  	 3300 Joe Jerkins Blvd.
 Austell, GA
30106
	  	Cobb
			
	 Caraustar Mill Group, Inc.
	  	 3400 Joe Jerkins Blvd.
 Austell, GA
30106
	  	Cobb
			
	 Caraustar Mill Group, Inc.
	  	 3500 Joe Jerkins Blvd.
 Austell, GA
30106
	  	Cobb
			
	 Caraustar Mill Group, Inc.
	  	 2100 Rossville Ave.
 Chattanooga, TN
37408
	  	Hamilton
			
	 Caraustar Mill Group, Inc.
	  	 5500 Wooster Road
 Cincinnati, OH
45226
	  	Hamilton
			
	 Caraustar Mill Group, Inc.
	  	 873 Alexander Drive
 Taylors, SC
29687
	  	Greenville
			
	 Caraustar Mill Group, Inc.
	  	 3110 Papermill Rd., Rt. #5
 Sinking Springs,
PA 19608
	  	Berks
			
	 Caraustar Mill Group, Inc.
	  	 443 S Gardner Ave.
 Charlotte, NC
28208
	  	Mecklenburg
			
	 Caraustar Mill Group, Inc.
	  	 111 Hull Street
 Richmond, VA
23224
	  	City of Richmond
			
	 Caraustar Mill Group, Inc.
	  	 100 Industrial Avenue
 Rittman, OH
44270
	  	Wayne
			
	 Caraustar Mill Group, Inc.
	  	 117 Siegel St.
 Tama, IA
52339
	  	Tama
			
	 Caraustar Mill Group, Inc.
	  	 40 Chestnut Street
 Lafayette, IN
47905
	  	Tippecanoe
			
	 Caraustar Mill Group, Inc.
	  	 101 Pine Street
 Cedartown, GA
30125
	  	Polk

	 Caraustar Legal Entity

	  	 Address

	  	 County

			
	 Caraustar Mill Group, Inc.
	  	 600 Wissahickon Ave.
 Cedartown, GA
30125
	  	Polk
			
	 Caraustar Mill Group, Inc.
	  	 817 East 27th Street
 Tacoma, WA
98421
	  	Pierce
			
	 Sprague Paperboard, Inc.
	  	 117 Siegel St.
 Tama, IA
52339
	  	Tama
			
	 Sprague Paperboard, Inc.
	  	 130 Inland Rd.
 Sprague, CT
06383
	  	New London
			
	 Caraustar Custom Packaging Group, Inc.
	  	 4139 US Highway 311
 Randleman, NC
27317
	  	Randolph
			
	 Caraustar Custom Packaging Group, Inc.
	  	 528 S. Turner Ave.
 Charlotte, NC
28208-4259
	  	Mecklenburg
			
	 Caraustar Custom Packaging Group, Inc.
	  	 322 W Fonville St.
 Burlington, NC
27217
	  	Alamance
			
	 Caraustar Custom Packaging Group, Inc.
	  	 167 Luyben Hills Rd.
 Kingston Springs, TN
37082
	  	Cheatem
			
	 Caraustar Custom Packaging Group, Inc.
	  	 600 Union Street
 Ashland, OH
44805
	  	Ashland
			
	 Caraustar Custom Packaging Group, Inc.
	  	 216 Twelfth St. N.E.
 Strasburg, OH
44680
	  	Tuscarwas
			
	 Caraustar Custom Packaging Group, Inc.
	  	 1375 Isaac Beal Rd.
 Bucyrus, OH
44820
	  	Crawford
			
	 Caraustar Custom Packaging Group, Inc.
	  	 1850 Lemon St.
 York, PA
17404
	  	York
			
	 Caraustar Custom Packaging Group, Inc.
	  	 126 Inland Road
 Versailles, CT
06383
	  	New London
			
	 Caraustar Custom Packaging Group, Inc.
	  	 4226 Church Street
 Thorndike, MA
01079
	  	Hamden
			
	 Caraustar Custom Packaging Group, Inc.
	  	 1957 Beverly Ave.
 Wyoming, MI
49509
	  	Kent
			
	 Caraustar Custom Packaging Group, Inc.
	  	 10750 Baur Blvd.
 St. Louis, MO
63132
	  	St. Louis
			
	 Caraustar Custom Packaging Group, Inc.
	  	 7777 St. Clair Ave.
 Mentor, OH
44060
	  	Lake
			
	 Caraustar Custom Packaging Group, Inc.
	  	 1377 South Jason St.
 Denver, CO
80223
	  	Denver
			
	 Caraustar Custom Packaging Group (Maryland), Inc.
	  	 11000 Gilroy Road
 Hunt Valley, MD
21031
	  	Baltimore
			
	 Caraustar Recovered Fiber Group, Inc.
	  	 4069 Winters Chapel Rd.
 Doraville, GA
30360
	  	DeKalb
			
	 Caraustar Recovered Fiber Group, Inc.
	  	 2426 Chamberlain Ave.
 Charlotte, NC
28208
	  	Mecklenburg
			
	 Caraustar Recovered Fiber Group, Inc.
	  	 756 Lindsey Drive
 Columbus, GA
31906
	  	Muscogee
			
	 Caraustar Recovered Fiber Group, Inc.
	  	 3400 Vega Avenue
 Cleveland, OH
44113
	  	Cuyahoga

	 Caraustar Legal Entity

	  	 Address

	  	 County

			
	 Caraustar Recovered Fiber Group, Inc.
	  	 Highway 17, US 321
 Hardeeville, SC
29927
	  	Jasper
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 410 Washington Street
 Cantonment, FL
32533
	  	Escambia
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 4201 Waco Street
 Texarkana, TX
77501
	  	Bowie
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 932 John Hare
 Silsbee, TX
77656
	  	Hardin
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1151 S. Shiloh St.
 Linden, AL
36748
	  	Marengo
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 Barge Port Ind. Ark, Comfort Rd.
 Palatka, FL
32177
	  	Putnam
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1800 S. Peyco Dr.
 Arlington, TX
76001
	  	Tarrant
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 Highway 370
 Cedar Springs, GA
31723
	  	Early
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 612 Grantham Ave.
 West Monroe, LA
23181
	  	Ouachita Parish
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1379 McDow Drive
 Rock Hill, SC
29732
	  	York
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 875 Alexander Dr.
 Taylors, SC
29687
	  	Greenville
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 3082 Pacific Avenue
 Austell, GA
30106
	  	Cobb
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 121 Callahan Rd. S.E.
 Dalton, GA
30721
	  	Whitfield
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1504 Fulton Dr.
 Corinth, MS
38834
	  	Alcorn
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 200 Learner Lane
 Blairs, VA
24527
	  	Pittsylvania
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1601 Carrsville Hwy.
 Franklin, VA
23851
	  	Isle of Wight
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1045 Industrial Park Dr.
 Kernersville, NC
27284
	  	Forsyth
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 460 Knox Court
 Minerva, OH
44657
	  	Carroll
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1301 Wheeler St.
 Saginaw, MI
48602-1198
	  	Kent
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1705 Highway 12
 DeQuincy Industrial
Park
 DeQuincy, LA 70633
	  	Calcasieu Parish
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 199 Industrial Park Road
 Mountain Home, NC
28758
	  	Henderson
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 100 Forrest Lane
 Beardstown, IL
62618
	  	Cass
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 403 Texas Street
 Crossett, AR
71635
	  	Ashley
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 702 E. Main St., State Rt. 36
 St. Paris, OH
43072
	  	Miami

	 Caraustar Legal Entity

	  	 Address

	  	 County

			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 425 Collins Blvd.
 Orrville, OH
44667
	  	Wayne
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 South Hwy 25, Lexington Rd.
 Georgetown, KY
40324
	  	Scott
			
	 Caraustar Industrial & Consumer Products Group, Ltd.
	  	 86 Bison Place Moss Side
 Leyland
Lancashire
 United Kingdom PR53QR
	  	 
			
	 LEASED LOCATIONS
	  	 	  	 
			
	 Caraustar Mill Group, Inc.
	  	 1091 Arnold Road
 Reading, PA
19605
	  	Berks
			
	 Caraustar Mill Group, Inc.
	  	 2200 Decatur Street
 Richmond, VA
23224
	  	City of Richmond
			
	 Caraustar Mill Group, Inc.
	  	 302 Rolling Hills Rd.
 Mooresville, NC
28115
	  	Iredell
			
	 Caraustar Mill Group, Inc.
	  	 158 Rolling Hills Rd.
 Mooresville, NC
28115
	  	Iredell
			
	 Caraustar Mill Group, Inc.
	  	 1401 West Ellerman Ave.
 Litchfield, IL
62056
	  	Montgomery
			
	 Caraustar Mill Group, Inc.
	  	 869 St. Hwy 12
 Frenchtown, NJ
08825
	  	Hunterdon
			
	 Caraustar Mill Group, Inc.
	  	 10157 Industrial Dr.
 Covington, GA
30014
	  	Newton
			
	 Caraustar Custom Packaging Group, Inc.
	  	 818 Virginia Street
 Ashland, OH
44805
	  	Ashland
			
	 Caraustar Custom Packaging Group, Inc.
	  	 217 Twelfth St. N.E.
 Strasburg, OH
44680
	  	Tuscarwas
			
	 Caraustar Custom Packaging Group, Inc.
	  	 43 Samworth Road
 Clifton, NJ
07012
	  	Passaic
			
	 Caraustar Custom Packaging Group, Inc.
	  	 350 Allwood Road
 Clifton, NJ
07012
	  	Passaic
			
	 Caraustar Custom Packaging Group, Inc.
	  	 1601 W King St.
 York, PA
17404
	  	York
			
	 Caraustar Custom Packaging Group, Inc.
	  	 76 Community Ave.
 Plainfield, CT
06374
	  	Windham
			
	 Caraustar Custom Packaging Group, Inc.
	  	 2624 Commerce Square Dr.
 Birmingham, AL
35213
	  	Jefferson
			
	 Caraustar Custom Packaging Group, Inc.
	  	 2701 Rector Rd.
 Paragould, AR
72450
	  	Greene
			
	 Caraustar Custom Packaging Group, Inc.
	  	 7800 Tyler Blvd.
 Mentor, OH
44060
	  	Lake
			
	 Caraustar Custom Packaging Group, Inc.
	  	 2585 South 2570 West
 Salt Lake City, UT
84119
	  	Salt Lake
			
	 Caraustar Custom Packaging Group, Inc.
	  	 11 Chapin Rd.
 Pine Brook, NJ
07058
	  	Morris

	 Caraustar Legal Entity

	  	 Address

	  	 County

			
	 Caraustar Custom Packaging Group, Inc.
	  	 555 N Tripp Ave.
 Chicago, IL
60624
	  	Cook
			
	 Caraustar Custom Packaging Group (Maryland), Inc.
	  	 12201 Long Green Pike
 Glen Arm, MD
21057
	  	Baltimore
			
	 Caraustar Recovered Fiber Group, Inc.
	  	 145 Phelps Rd.
 Dalton, GA
30720
	  	Whitfield
			
	 Caraustar Recovered Fiber Group, Inc.
	  	 112 S. Lelia Street
 Texarkana, TX
75501-7451
	  	Bowie
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 2031 Carolina Place
 Fort Mill, SC
29708
	  	York
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 601 E. 2nd Street
 Amarillo, TX
79101
	  	Potter-Randall
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 100 Industrial Drive
 McGehee, AR
71654
	  	Desha
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1820 Olde Homestead Lane
 Lancaster, PA
17605
	  	Lancaster
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 2585 South 2570 West
 Salt Lake City, UT
84119
	  	Salt Lake
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 22 North 47th Ave., Suite One
 Phoenix, AZ
85043
	  	Maricopa
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 310 Industrial Parkway
 West Point, VA
23181
	  	King William
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1485 Plaza South Dr.
 Kernersville, NC
27284
	  	Forsyth
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 902 E. 11th St.
 Tacoma, WA
98421
	  	Pierce
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 Ampoint Industrial Park
 715 Fifth
St.
 Perrysburg, OH 43551
	  	Wood
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 780 Keezletown Rd., Suite 108
 Wyers Cave, VA
24486
	  	Augusta
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 901 Wheeler St.
 Saginaw, MI
48602-1198
	  	Kent
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 2055 Refugee Road
 Columbus, OH
43207
	  	Franklin
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1514c West Franklin St.
 Lufkin, TX
75904
	  	Angelina
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 840A Eubanks Dr.
 Vacaville, CA
95687
	  	Solano
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 112 Lakepoint Industrial Rd.
 Eufaula, AL
36027
	  	Babour
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 4935 Starr Ave. SE
 Grand Rapids, MI
49509
	  	Kent
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 9096 Railwood, Suite B
 Houston, TX
77078
	  	Harris
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1581 16th Street Circle
 Mobile, AL
36615-1281
	  	Mobile

	 Caraustar Legal Entity

	  	 Address

	  	 County

			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 115 Quail Ridge Road
 Franklin, KY
42134
	  	Simpson
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1601 Tionia Road
 New Smyrna Beach, FL
32168
	  	Volusia
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 455 Clems Way
 Stevens Point, WI
54481
	  	Portage
			
	 THIRD PARTY WAREHOUSE
	  	 	  	 
			
	 Caraustar Mill Group, Inc.
	  	 1000 Wolfe Avenue
 Freemont, OH
43420
	  	Hall
			
	 Caraustar Mill Group, Inc.
	  	 7725 South Quincy
 Willow Brook, IL
60521
	  	Sims
			
	 Caraustar Mill Group, Inc.
	  	 1245 Montgomery Drive
 Meridian, MS
39305
	  	Page
			
	 Caraustar Mill Group, Inc.
	  	 100 Thomas Street
 Lawrenceburg, TN
38464
	  	Lawrence
			
	 Caraustar Mill Group, Inc.
	  	 805 Uniek Drive
 Waunakee, WI
53597
	  	Dane
			
	 Caraustar Mill Group, Inc.
	  	 3601 Sagmore Pkwy. N
 Lafayette, IN
47905
	  	Tippecanoe
			
	 Caraustar Mill Group, Inc.
	  	 100 Thomas St.
 Lawrenceburg, TN
38464
	  	Lawrence
			
	 Caraustar Mill Group, Inc.
	  	 2211 Lithonia Ind. Blvd.
 Lithonia, GA
30058
	  	DeKalb
			
	 Sprague Paperboard, Inc.
	  	 135 S. Lasalle
 Chicago, IL
60674
	  	Cook
			
	 Sprague Paperboard, Inc.
	  	 802 N. 23rd St.
 Wilmington, NC
28405
	  	New Hanover
			
	 Sprague Paperboard, Inc.
	  	 6 Thorndale Circle
 Darien, CT
06820
	  	Fairfield
			
	 Sprague Paperboard, Inc.
	  	 200 Orleans St.
 Richmond, VA
23231
	  	Henrico
			
	 Sprague Paperboard, Inc.
	  	 3900 Spring Gardent St.
 Greensboro, NC
27407
	  	Guilford
			
	 Sprague Paperboard, Inc.
	  	 350 Holt Rd.
 N. Andover, MA
01845
	  	Essex
			
	 Sprague Paperboard, Inc.
	  	 82 West Clark St.
 West Haven, CT
06516
	  	New Haven
			
	 Sprague Paperboard, Inc.
	  	 820 Gana Court
 Mississauga,
Ontario
 Canada L5S1N9
	  	 
			
	 Sprague Paperboard, Inc.
	  	 62 Davis Drive
 Bellwood, IL
60104
	  	Cook
			
	 Caraustar Custom Packaging Group, Inc.
	  	 1519 Tower St.
 St. Louis, MO
63106
	  	St. Louis City
			
	 Caraustar Custom Packaging Group, Inc.
	  	 4001 Salt Works Rd.
 Medina, NY
14103
	  	Orleans

	 Caraustar Legal Entity

	  	 Address

	  	 County

			
	 Caraustar Custom Packaging Group, Inc.
	  	 1501 S. Burlington
 Hasteings, NE
68902
	  	Adams
			
	 Caraustar Custom Packaging Group, Inc.
	  	 1519 Tower Grove
 St Louis, MO
63110
	  	St Louis
			
	 Caraustar Custom Packaging Group, Inc.
	  	 1519 Tower Grove
 St. Louis, MO
63110
	  	St. Louis City
			
	 Caraustar Custom Packaging Group, Inc.
	  	 429 Division Ave.
 Wayland, MI
49348
	  	Kent
			
	 Caraustar Custom Packaging Group, Inc.
	  	 G-6434 S. Dort Hwy., Suite 11
 Grand Blanc,
MI 48439
	  	Genesse
			
	 Caraustar Custom Packaging Group, Inc.
	  	 245 15th Street South
 St. James, MN
56081
	  	Watonwan
			
	 Caraustar Custom Packaging Group, Inc.
	  	 4350 West Ohio
 Chicago, IL
60624
	  	Cook
			
	 Caraustar Custom Packaging Group, Inc.
	  	 25 Access Way
 Bloomington, IL
61704
	  	McLean
			
	 Caraustar Custom Packaging Group, Inc.
	  	 2701 Rector Rd
 Paragould, AR
72450
	  	Greene
			
	 Caraustar Custom Packaging Group (Maryland), Inc.
	  	 7825 Rappahannock Ave.
 Jessup, MD
20794
	  	Howard
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 PO Box 16202
 Little Rock, AK
72231
	  	Pulaski
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 15301 W. 110 St.
 Lanexa, KS
66219
	  	Johnson
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1701 Hollywood Rd.
 Amarillo, TX
79190
	  	Potter-Randall
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 101 Slater Rd.
 Slater, SC
29683
	  	Greenville
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 PO Box 191
 Columbus, MS
39701
	  	Lowndes
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 PO Box 272
 Alexander City, AL
35010
	  	Tallapoosa
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 17854 Chesterfield Airport Rd.
 Chesterfield,
MO 63005
	  	St. Louis
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 2662 Fisher Rd.
 Columbus, OH
43204
	  	Franklin
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1001 Chamber Ave.
 Jeanette, PA
15644
	  	Westmorland
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 Thousand Oaks Blvd.
 PO Box 470
 Morgantown, PA 19453
	  	Berks
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 252 Depot Rd.
 Milford, CT
06460
	  	New Haven
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 3007 Harding Hwy.
 Marion, OH
43302
	  	Marion
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 3007 Harding Hwy.
 Marion, OH
43302
	  	Marion
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	810 IH10 South	  	Jefferson

	 Caraustar Legal Entity

	  	 Address

	  	 County

	 	  	Beaumont, TX 77707	  	 
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 215 Bridge Street
 Minerva, OH
44657
	  	Carroll
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 4012 West Turney 12D
 Phoenix, AZ
85019
	  	Maricopa
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 5150 Colorado Blvd.
 Denver, CO
80216
	  	Denver
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 2460 Frisco Ave.
 Memphis, TN
38114
	  	Shelby
			
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 300 S Mitchell Court
 Addison, IL
60101
	  	DuPage
			
	 LOCATIONS CLOSED WITHIN THE LAST FIVE YEARS
	  	 	  	 
	 OWNED LOCATIONS
	  	 	  	 
			
	 A  Caraustar Mill Group, Inc.
	  	 470 Ohio Street
 Lockport, NY
14094
	  	Niagara
			
	 B  Caraustar Custom Packaging Group, Inc.
	  	 3900 Comanche Drive
 Archdale, NC
27263
	  	Randolph
			
	 C  Caraustar Custom Packaging Group (Maryland), Inc.
	  	 1001 East Fort Avenue
 Baltimore, MD
21230
	  	Baltimore City
			
	 E  Caraustar Industrial & Consumer Products Group, Inc.
	  	 600 Wissahickon Ave
 Cedartown, GA
30125
	  	Polk
			
	 A  Caraustar Industrial & Consumer Products Group, Inc.
	  	 300 Alton Box Road West
 Jacksonville, FL
32218
	  	Duval
			
	 A  Caraustar Industrial & Consumer Products Group, Inc.
	  	 400 N. American St.
 Philadelphia, PA
19140
	  	Bucks
			
	 C  Camden Paperboard Corporation
	  	 267 Jefferson Ave.
 Camden, NJ
08014
	  	Camden
			
	 D  Chicago Paperboard Corporation
	  	 900 N. Ogden Ave.
 Chicago, IL
60622
	  	Cook
			
	 A  Halifax Paper Board Company, Inc.
	  	 440 Hwy. 48 North
 Roanoke Rapids, NC
27870
	  	Halifax
			
	 LEASED LOCATIONS
	  	 	  	 
			
	 E  Caraustar Mill Group, Inc.
	  	 107 Tom Starling Rd.
 Fayetteville, NC
28306
	  	Cumberland
			
	 D  Caraustar Custom Packaging Group, Inc.
	  	 825 West 2500 South
 Salt Lake City, UT
84119
	  	Salt Lake
			
	 E  Caraustar Industrial & Consumer Products Group, Inc.
	  	 2429 East Holland Ave
 Saginaw, MI
48601
	  	Kent

  
 NOTES: 
  

	A	 	This location was recently closed, but it currently contains inventory. 

	B	 	This is a Caraustar location which contained inventory in the past five years, but the facility and all equipment was sold in 2002. 

	C	 	This location contained inventory in the past five years, but was closed in 2000 and no longer contains inventory. 

	D	 	This location contained inventory in the past five years, but was closed in 2001 and no longer contains inventory. 

	E	 	This location was recently closed and no longer contains inventory. 

  
 D. & E. Locations of all other places of business, including locations of leased facilities and name of lessor/sublessor 
  
 Owned Real Property: 
  

	 Caraustar
 Legal
Entity

	  	 Address

		
	 Caraustar Mill Group, Inc.
	  	 3300 Joe Jerkins Blvd.
 Austell, GA
30106

		
	 Caraustar Mill Group, Inc.
	  	 3400 Joe Jerkins Blvd.
 Austell, GA
30106

		
	 Caraustar Mill Group, Inc.
	  	 3500 Joe Jerkins Blvd.
 Austell, GA
30106

		
	 Caraustar Mill Group, Inc.
	  	 2100 Rossville Ave.
 Chattanooga, TN
37408

		
	 Caraustar Mill Group, Inc.
	  	 5500 Wooster Road
 Cincinnati, OH
45226

		
	 Caraustar Mill Group, Inc.
	  	 873 Alexander Drive
 Taylors, SC
29687

		
	 Caraustar Mill Group, Inc.
	  	 3110 Papermill Rd Rt. #5
 Sinking Springs,
PA 19608

		
	 Caraustar Mill Group, Inc.
	  	 443 S Gardner Ave.
 Charlotte, NC
28208

		
	 Caraustar Mill Group, Inc.
	  	 111 Hull Street
 Richmond, VA
23224

		
	 Caraustar Mill Group, Inc.
	  	 17 East 2nd Street
 Richmond, VA
23224

		
	 Caraustar Mill Group, Inc.
	  	 200-220 Hull Street
 Richmond, VA
23224

		
	 Caraustar Mill Group, Inc.
	  	 100 Industrial Avenue
 Rittman, OH
44270

		
	 Caraustar Mill Group, Inc.
	  	 117 Siegel St.
 Tama, IA
52339

		
	 Caraustar Mill Group, Inc.
	  	 40 Chestnut Street
 Lafayette, IN
47905

		
	 Caraustar Mill Group, Inc.
	  	 101 Pine Street
 Cedartown, GA
30125

		
	 Caraustar Mill Group, Inc.
	  	 600 Wissahickon Ave.
 Cedartown, GA
30125

		
	 Caraustar Mill Group, Inc.
	  	 817 East 27th Street
 Tacoma, WA
98421

		
	 Caraustar Mill Group, Inc.
	  	 470 Ohio Street
 Lockport, NY
14094

		
	 Sprague Paperboard, Inc.
	  	 130 Inland Rd.
 Sprague, CT
06383

	 Caraustar
 Legal
Entity

	  	 Address

		
	 Caraustar Custom Packaging Group, Inc.
	  	 4139 US Highway 311
 Randleman. NC
27317

		
	 Caraustar Custom Packaging Group, Inc.
	  	 528 S. Turner Ave.
 Charlotte, NC
28208-4259

		
	 Caraustar Custom Packaging Group, Inc.
	  	 322 W Fonville St.
 Burlington, NC
27217

		
	 Caraustar Custom Packaging Group, Inc.
	  	 167 Luyben Hills Rd
 Kingston Springs, TN
37082

		
	 Caraustar Custom Packaging Group, Inc.
	  	 600 Union Street
 Ashland, OH
44805

		
	 Caraustar Custom Packaging Group, Inc.
	  	 216 Twelfth St. N.E.
 Strasburg, OH
44680

		
	 Caraustar Custom Packaging Group, Inc.
	  	 1375 Isaac Beal Rd.
 Bucyrus, OH
44820

		
	 Caraustar Custom Packaging Group, Inc.
	  	 1850 Lemon St.
 York, PA
17404

		
	 Caraustar Custom Packaging Group, Inc.
	  	 126 Inland Road
 Versailles, CT
06383

		
	 Caraustar Custom Packaging Group, Inc.
	  	 4226 Church Street
 Thorndike, MA
01079

		
	 Caraustar Custom Packaging Group, Inc.
	  	 1957 Beverly Ave.
 Wyoming, MI
49509

		
	 Caraustar Custom Packaging Group, Inc.
	  	 10750 Baur Blvd.
 St. Louis, MO
63132

		
	 Caraustar Custom Packaging Group, Inc.
	  	 7777 St. Clair Ave.
 Mentor, OH
44060

		
	 Caraustar Custom Packaging Group, Inc.
	  	 1377 South Jason St.
 Denver, CO
80223

		
	 Caraustar Custom Packaging Group (Maryland), Inc.
	  	 11000 Gilroy Road
 Hunt Valley, MD
21031

		
	 Caraustar Custom Packaging Group (Maryland), Inc.
	  	 1001 East Fort Avenue
 Baltimore, MD
21230

		
	 Caraustar Recovered Fiber Group, Inc.
	  	 4069 Winters Chapel Rd.
 Doraville, GA
30360

		
	 Caraustar Recovered Fiber Group, Inc.
	  	 2426 Chamberlain Ave.
 Charlotte, NC
28208

		
	 Caraustar Recovered Fiber Group, Inc.
	  	 756 Lindsey Drive
 Columbus, GA
31906

		
	 Caraustar Recovered Fiber Group, Inc.
	  	 3400 Vega Avenue
 Cleveland, OH
44113

		
	 Caraustar Recovered Fiber Group, Inc.
	  	 Highway 17, US 321
 Hardeeville, SC
29927

	 Caraustar
 Legal
Entity

	  	 Address

	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 410 Washington Street
 Cantonment, FL
32533

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 4201 Waco Street
 Texarkana, TX
77501

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 932 John Hare
 Silsbee, TX
77656

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1151 S. Shiloh St.
 Linden, AL
36748

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 Barge Port Ind. Ark, Comfort Rd.
 Palatka, FL
32177

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1800 S. Peyco Dr.
 Arlington, TX
76001

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 Highway 370
 Cedar Springs, GA
31723

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 612 Grantham Ave.
 West Monroe, LA
23181

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1379 McDow Drive
 Rock Hill, SC
29732

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 875 Alexander Dr.
 Taylors, SC
29687

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 3082 Pacific Avenue
 Austell, GA
30106

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 121 Callahan Rd. S.E.
 Dalton, GA
30721

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1504 Fulton Dr.
 Corinth, MS
38834

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 200 Learner Lane
 Blairs, VA
24527

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1601 Carrsville Hwy.
 Franklin, VA
23851

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1045 Industrial Park Dr.
 Kernersville, NC
27284

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 460 Knox Court
 Minerva, OH
44657

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1301 Wheeler St.
 Saginaw, MI
48602-1198

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 1705 Highway 12
 DeQunincy Industrial
Park
 Dequincy, LA 70633

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 199 Industrial Park Road
 Mountain Home, NC
28758

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 300 Alton Box Road West
 Jacksonville, FL
32218

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 400 N. American St.
 Philadelphia, PA
19140

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 100 Forrest Lane
 Beardstown, IL
62618

	 Caraustar
 Legal
Entity

	  	 Address

	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 403 Texas Street
 Crossett, AR
71635

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 702 E. Main St.
 State Rt. 36
 St. Paris, OH 43072

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 425 Collins Blvd.
 Orrville, OH
44667

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 South Hwy 25, Lexington Rd.
 Georgetown, KY
40324

		
	 Caraustar Industrial & Consumer Products Group, Inc.
	  	 600 Wissahickon Ave
 Cedartown, GA
30125

		
	 Camden Paperboard Corporation
	  	 267 Jefferson Ave.
 Camden, NJ
08014

		
	 Chicago Paperboard Corporation
	  	 900 N. Ogden Ave.
 Chicago, IL
60622

		
	 Halifax Paper Board Company, Inc.
	  	 440 Hwy. 48 North
 Roanoke Rapids, NC
27870

  
 Leased Real Property

  

	 Caraustar
 Legal
Entity

	  	 Address

	  	 Landlord Name and Address

	 Caraustar Mill Group, Inc.
	  	 1091 Arnold Road
 Reading, PA
19605
	  	 Richard Landis
 1091 Arnold Rd.
 Reading, PA 19605

			
	 Caraustar Mill Group, Inc.
	  	 2200 Decatur Street
 Richmond, VA
23224
	  	 Keck Realty, Inc
 1100 Jeff Davis
Hwy.
 Richmond, Va 23224

			
	 Caraustar Mill Group, Inc.
	  	 302 Rolling Hills Rd.
 Mooresville, NC
28115
	  	 Richard W. Howard
 110 Ventana
Court
 Mooresville, NC 28115

			
	 Caraustar Mill Group, Inc.
	  	 158 Rolling Hills Rd.
 Mooresville, NC
28115
	  	 Richard W. Howard
 110 Ventana
Court
 Mooresville, NC 28115

			
	 Caraustar Mill Group, Inc.
	  	 107 Tom Starling Rd.
 Fayetteville, NC
28306
	  	 AF Carolina
 301 North Rock Road

Wichita, KS 67206-2254

			
	 Caraustar Mill Group, Inc.
	  	 1401 West Ellerman Ave.
 Litchfield, IL
62056
	  	 Litchfield Bank and Trust
 401 N.
Madison
 Litchfield, IL 62056

			
	 Caraustar Mill Group, Inc.
	  	 869 St. Hwy 12
 Frenchtown, NJ
08825
	  	 Anthony DeSapio
 P.O. Box 54
 Babtistown, NJ 08803

			
	 Caraustar Mill Group, Inc.
	  	 10157 Industrial Dr.
 Covington, GA
30014
	  	 Capes Property Management
 9157 Hazelbrand
Road
 Covington, GA 30209

			
	 Caraustar Custom Packaging Group, Inc.
	  	 818 Virginia Street
 Ashland, OH
44805
	  	 L. Evelyn Younkin, Individually and as Executrix of the Estate Thomas Younkin
 L. Evelyn Younkin
 1748 County Road 1095
 Ashland, Ohio 44805

			
	 Caraustar Custom Packaging Group, Inc.
	  	 217 Twelfth St. N.E.
 Strasburg, OH
44680
	  	 Oakes Management
 3775 Wales Ave.
N.W.
 Massillon, OH 44646

			
	 Caraustar Custom Packaging Group, Inc.
	  	 43 Samworth Road
 Clifton, NJ
07012
	  	 Gen Pack Limited Partnership
 928 West State
Street
 Trenton, NJ 08618

			
	 Caraustar Custom Packaging Group, Inc.
	  	 350 Allwood Road
 Clifton, NJ
07012
	  	 New Utrecht Properties L.P.
 c/o William B.
Blumenthal
 300 Mercer Street, Apt. 27E
 New York, NY
10003-6741

			
	 Caraustar Custom Packaging Group, Inc.
	  	 1601 W King St.
 York, PA
17404
	  	 Space Leasing, Inc.
 John Buchart

2331 East Market Street
 York, PA 17404

			
	 Caraustar Custom Packaging Group, Inc.
	  	 76 Community Ave.
 Plainfield, CT
06374
	  	 CT Yankee Community Ave Association
 P O Box
61
 76 Community Ave.
 Plainfield, CT 06374

			
	 Caraustar Custom Packaging Group, Inc.
	  	 2624 Commerce Square Dr.
 Birmingham, AL
35213
	  	 Eason, Graham & Sandner
 2101 Highland
Ave., Ste. 700
 Birmingham, AL 35205

			
	 Caraustar Custom Packaging Group, Inc.
	  	 2701 Rector Rd.
 Paragould, AR
72450
	  	 GKI Investment Partnership, LLP dba Cornhusker
 Distribution Services
 Diane Mills
 CFO GKI Investment
 10203 South 152nd Street
 Omaha, NE
68138

			
	 Caraustar Custom Packaging Group, Inc.
	  	 7800 Tyler Blvd.
 Mentor, OH
44060
	  	 Handl-it, Inc.
 Kimberly Peters Sales
Mngr.
 26200 Richmond Rd.
 Bedford Heights, OH
44146-1440

			
	 Caraustar Custom Packaging Group, Inc.
	  	 11 Chapin Rd.
 Pine Brook, NJ
07058
	  	 Albert Frassetto Ent
 Albert
Frassetto
 2 Parkway and Rt. 17 South
 Upper Saddle River, NJ
07458

			
	 Caraustar Custom Packaging Group, Inc.
	  	 555 N Tripp Ave.
 Chicago, IL
60624
	  	 Crane Tripp Partners
 Bruce Crane

555 North Tripp Ave.
 Chicago, IL 60624

	Caraustar Custom Packaging Group, Inc.	  	 825 West 2500 South
 Salt Lake City, UT
84119
	  	 D T Johnson
 3276 So. 3690 W.
 West Valley City, UT 84120

			
	Caraustar Custom Packaging Group (Maryland), Inc.	  	 12201 Long Green Pike
 Glen Arm, MD
21057
	  	 Schneider Properties, LLC
 Thomas
Schneider
 12201 Long Green Pike
 Glen Arm, MD
21057

			
	Caraustar Recovered Fiber Group, Inc.	  	 145 Phelps Rd.
 Dalton, GA
30720
	  	 T&T Enterprises
 P.O. Box 3335

Asheville, NC 28802

			
	Caraustar Recovered Fiber Group, Inc.	  	 112 S. Lelia Street
 Texarkana, TX
75501-7451
	  	 Commercial Moving & Storage
 3800 Picoma
Drive
 Texarkana, TX 75501-9545

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 2031 Carolina Place
 Fort Mill, SC
29708
	  	 Carolina Commerce Investors
 % The Tuttle
Company
 448 Lakeshore Parkway
 Rock Hill, SC
29730

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 601 E. 2nd Street
 Amarillo, TX
79101
	  	 Johnson Street LTD
 Attn: Jim
Austin
 PO Box 2888
 Amarillo, TX 79105

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 100 Industrial Drive
 McGehee, AR
71654
	  	 City of McGehee
 PO Box 612
 McGehee, AR 71654

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 1820 Olde Homestead Lane
 Lancaster, PA
17605
	  	 High Assoc. LTD
 PO Box 64047
 Baltimore, MD 21264

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 2585 South 2570 West
 Salt Lake City, UT
84119
	  	 Jeralynn T. Winder
 299 S. Main St., 7th
Floor
 Attn: Larry Haggerty
 Salt Lake City, UT
84111

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 22 North 47th Ave, Suite One
 Phoenix, AZ
85043
	  	 Ontario Associates
 18231 Irvine
Blvd.
 Tustin, CA 92780

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 310 Industrial Parkway
 West Point, VA
23181
	  	 Town of West Point, VA
 PO Box 152

West Point, VA 23181

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 1485 Plaza South Dr.
 Kernersville, NC
27284
	  	 Summer Investments
 Steve Summer

639 Hoy Ling Rd.
 Winston Salem, NC 27107

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 902 E. 11th St.
 Tacoma, WA
98421
	  	 Paccess, Inc
 650 NE Holladay St.

Portland, OR 97232

	Caraustar Industrial & Consumer Products Group, Inc.	  	 Ampoint Industrial Park
 715 Fifth
St.
 Perrysburg, OH 43551
	  	 Ampoint, Inc.
 PO Box 9040
 Toledo, OH 43697

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 780 Keezletown Rd.
 Suite 108
 Wyers Cave, VA 24486
	  	 Shen Valley LLC
 Attn: Manager
 PO Box 36
 Weyers Cave, VA 24486

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 901 Wheeler St.
 Saginaw, MI
48602-1198
	  	 Bierlein Properties
 2000 Bay City
Rd.
 Midland, MI 48642

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 2055 Refugee Road
 Columbus, OH
43207
	  	 Ohio Equities
 605 South Front St.

Suite 200
 Columbus, OH 43207

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 1514c West Franklin St.
 Lufkin, TX
75904
	  	 Perry Brothers, Inc.
 PO Box 28
 Lufkin, TX 75902

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 840A Eubanks Dr.
 Vacaville, CA
95687
	  	 Garavemta Properties
 PO Box 5397

Concord, CA 94524

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 112 Lakepoint Industrial Rd.
 Eufaula, AL
36027
	  	 City of Eufaula
 PO Box 219
 Eufaula, AL 36072

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 4935 Starr Ave. SE
 Grand Rapids, MI
49509
	  	 Rogue LLC
 171 Monroe Ave.
 NCB Mail Code k-c17-2b
 Grand Rapids, MI 49504

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 9096 Railwood, Suite B
 Houston, TX
77078
	  	 AN WRI Partnership, Ltd.
 PO Box
924133
 Houston, TX 77292

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 1581 16th Street Circle
 Mobile, AL
36615-1281
	  	 Mobile Airport Authority
 1 Brookley
Complex
 1891 9th St.
 Mobile, AL 36615

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 115 Quail Ridge Road
 Franklin, KY
42134
	  	 Brad M & Susan B. Kelly
 Kent
Kelley—Kelley Storage
 2718 Uhls Rd.
 Franklin, KY
42134

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 1601 Tionia Road
 New Smyrna Beach, FL
32168
	  	 General Electric
 16325 North Cross
Dr.
 Huntersville, NC 28078

			
	Caraustar Industrial & Consumer Products Group, Inc.	  	 455 Clems Way
 Stevens Point, WI
54481
	  	 William J. Bayba
 5424 Hwy 10E, Suite
A
 Stevens Point, WI 54481

 SCHEDULE II 
 to 
 SECURITY AGREEMENT 
  
 JURISDICTION OF ORGANIZATION 
  

	 EXACT LEGAL NAME;
 ADDRESS OF CHIEF EXECUTIVE OFFICE

	  	 JURISDICTION OF
 FORMATION and
 ORGANIZATIONAL ID
#

	  	 TYPE OF ENTITY

	 Caraustar Industries, Inc.
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 North Carolina
  
 ID # 0021912
	  	Corporation
			
	 Austell Holding Company, LLC
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106-3227
	  	 Georgia
  
 ID # 0054571
	  	Limited liability company
			
	 Camden Paperboard Corporation
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 New Jersey
  
 ID # 0100383033
	  	Corporation
			
	 Caraustar, G.P.
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 South Carolina
  
 No ID #
	  	General partnership
			
	 Caraustar Custom Packaging Group, Inc.
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106-3227
	  	 Delaware
  
 ID # 3042730
	  	Corporation
			
	 Caraustar Custom Packaging Group (Maryland), Inc.
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106-3227
	  	 Maryland
  
 ID # D00059279
	  	Corporation
			
	 Caraustar Industrial and Consumer Products Group, Inc.
  
 2031 Carolina Place
 Fort Mill, SC 29708
	  	 Delaware
  
 ID # 2244600
	  	Corporation
			
	 Caraustar Mill Group, Inc.
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106-3227
	  	 Ohio
  
 ID # 946550
	  	Corporation
			
	 Caraustar Recovered Fiber Group, Inc.
  
 531 Roselane Street, NW
 Suite 650
 Marietta, GA 30060
	  	 Delaware
  
 ID # 3137391
	  	Corporation
			
	 Chicago Paperboard Corporation
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106-3227
	  	 Illinois
  
 ID # 53545262
	  	Corporation

	 EXACT LEGAL NAME;
 ADDRESS OF CHIEF EXECUTIVE OFFICE

	  	 JURISDICTION OF
 FORMATION and
 ORGANIZATIONAL ID
 #

	  	 TYPE OF ENTITY

	 CICPG, LLC
  
 2031 Carolina Place
 Ft. Mill, SC 29708
	  	 North Carolina
  
 ID # 0651469
	  	Limited liability company
			
	 Federal Transport, Inc.
  
 2031 Carolina Place
 Fort Mill, SC 29708
	  	 Ohio
  
 ID # 576994
	  	Corporation
			
	 Gypsum MGC, Inc.
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 Delaware
  
 ID # 3321727
	  	Corporation
			
	 Halifax Paper Board Company, Inc.
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 North Carolina
  
 ID # 0492479
	  	Corporation
			
	 McQueeney Gypsum Company
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 Delaware
  
 ID # 2835132
	  	Corporation
			
	 McQueeny Gypsum Company, LLC
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 Delaware
  
 ID # 3326451
	  	Limited liability company
			
	 Paradigm Chemical & Consulting, LLC
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 Georgia
  
 ID # 0312321
	  	Limited liability company
			
	 PBL Inc.
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 Delaware
  
 ID # 3036297
	  	Corporation
			
	 RECCMG, LLC
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 Georgia
  
 ID # 0257747
	  	Limited liability company
			
	 Sprague Paperboard, Inc.
  
 3100 Joe Jerkins Boulevard
 Austell, GA 30106
	  	 Connecticut
  
 ID # 0615047
	  	Corporation

 SCHEDULE III 
 to 
 SECURITY AGREEMENT 
  
 PATENTS, TRADEMARKS AND COPYRIGHTS 
  
 Patents: 
  

	 Record Owner

	  	 Title

	  	Country

	  	Patent No.

	 Caraustar Industries, Inc.
	  	Winding Core Having Integral Entangling Mechanism	  	US	  	5,857,641
				
	 Caraustar Industries, Inc.
	  	Protective Containerboard	  	US	  	4,711,702
				
	 Caraustar Industries, Inc.
	  	Conductive Paper and Method	  	US	  	4,606,790
				
	 Caraustar Industries, Inc.
	  	Form for Producing Concrete Columns with Recessed Rings	  	US	  	6,270,052
				
	 Caraustar Industries, Inc.
	  	Commodity Partition	  	US	  	5,222,659
				
	 Caraustar Industries, Inc.
	  	Flip-top reclosable carton with positive closure arrangement	  	US	  	5,154,343
				
	 Caraustar Industries, Inc.
	  	Carton and liner tear-tape assembly	  	US	  	5,236,123
				
	 Caraustar Industries, Inc.
	  	Flip-top reclosable carton and liner assembly	  	US	  	5,265,799
				
	 Caraustar Industries, Inc.
	  	Flip-top reclosable carton with positive closure arrangement	  	US	  	5,314,114
				
	 Caraustar Industries, Inc.
	  	Paperboard Carton-liner assembly with balancing means	  	US	  	5,439,133
				
	 Caraustar Industries, Inc.
	  	Flip-top reclosable carton with positive closure arrangement	  	US	  	5,515,996
				
	 Caraustar Industries, Inc.
	  	Reclosable container with press-bonded collar	  	US	  	5,551,938
				
	 Caraustar Industries, Inc.
	  	Paperboard dispenser having separately formed drawer	  	US	  	5,458,272
				
	 Caraustar Industries, Inc.
	  	Flip-top reclosable carton and method of making the same	  	US	  	5,505,374
				
	 Caraustar Industries, Inc.
	  	Tray-lid assembly	  	US	  	5,516,035
				
	 Caraustar Industries, Inc.
	  	Paperboard container with integral paperboard spout	  	US	  	5,531,376
				
	 Caraustar Industries, Inc.
	  	Nestable blank for forming a side-filled, flip-top reclosable carton	  	US	  	5,743,462
				
	 Caraustar Industries, Inc.
	  	Flip-top reclosable carton and blank for making the same	  	US	  	5,673,849
				
	 Caraustar Industries, Inc.
	  	Two-piece, crash-botom basket carrier	  	US	  	5,680,930
				
	 Caraustar Industries, Inc.
	  	Flip-top reclosable carton with reduced weight liner	  	US	  	5,775,576
				
	 Caraustar Industries, Inc.
	  	Shaker pour spout dispenser	  	US	  	5,746,370
				
	 Caraustar Industries, Inc.
	  	Non-directional paperboard spout pour spout	  	US	  	5,810,250
				
	 Caraustar Industries, Inc.
	  	Flip-top reclosable container with integrally formed collar	  	US	  	5,875,963

	 Record Owner

	  	 Title

	  	Country

	  	Patent No.

	 Caraustar Industries, Inc.
	  	Non-directional paperboard pour spout	  	US	  	5,875,961
				
	 Caraustar Industries, Inc.
	  	Collapsible paperboard carton	  	US	  	5,725,144
				
	 Caraustar Industries, Inc.
	  	Child resistant Paperboard carton	  	US	  	5,660,325
				
	 Caraustar Industries, Inc.
	  	Controlled release insect repellent devise	  	US	  	5,688,509
				
	 Caraustar Industries, Inc.
	  	Food package for use in a microwave oven	  	US	  	34,829
				
	 Caraustar Industries, Inc.
	  	Two-Piece Paperboard Container with Pour Spout	  	US	  	5,893,513
				
	 Caraustar Industries, Inc.
	  	Forward-tilting Display Container with Fold-out Doors	  	US	  	5,899,324
				
	 Caraustar Industries, Inc.
	  	Flip-top Carton with Integral Partial Collar	  	US	  	5,911,359
				
	 Caraustar Industries, Inc.
	  	Paperboard container with integral paperboard spout	  	Canada	  	2169488
				
	 Caraustar Industries, Inc.
	  	Winding Core Having Integral Entangling Mechanism	  	European
Patent
Designated
States:
Germany,
France,
United
Kindgom	  	988247
				
	 Caraustar Industries, Inc.
	  	Conductive Paper and Method	  	Mexico	  	159,587
				
	 Caraustar Industries, Inc.
	  	Commodity Partition	  	Colombia	  	24878
				
	 Caraustar Industrial and
 Consumer Products Group, Inc.
	  	Method of Forming Damped Drive Shafts	  	US	  	6,370,756
				
	 Caraustar Industrial and
 Consumer Products Group, Inc.
	  	 Expandable Drive Shaft Damper and Method of
 Forming
	  	US	  	5,868,627
				
	 Caraustar Industrial and
 Consumer Products Group, Inc.
	  	Drive Shaft Damper	  	US	  	5,976,021
				
	 Caraustar Industrial and
 Consumer Products Group, Inc.
	  	Drive Shaft Damper	  	US	  	4,909,361
				
	 Caraustar Industrial and
 Consumer Products Group, Inc.
	  	Vibration Damping Shaft Liner	  	US	  	5,924,531
				
	 Caraustar Industrial and
 Consumer Products Group, Inc.
	  	Method of Forming Damped Drive Shafts	  	US	  	6,370,756
				
	 Caraustar Industrial and
 Consumer Products Group, Inc.
	  	 Combination Container End Closure and
 Plunger for a Dispensing Container
	  	 Great
Britain
 Design
Patent
	  	1056359
				
	 Caraustar Industrial and
 Consumer Products Group, Inc.
	  	 Combination Container End Closure and
 Plunger for a Dispensing Container
	  	 Hong Kong
 Design
Patent
	  	9800058.9
				
	 Caraustar Industrial and
 Consumer Products Group, Inc.
	  	 Combination Container End Closure and
 Plunger for a Dispensing Container
	  	 Australia
 Design
Patent
	  	105465
				
	 Caraustar Industrial and
 Consumer Products Group, Inc.
	  	 Diffusing End Closure for a Dispensing
 Container
	  	 Great
Britain
 Design
Patent
	  	1056360

	 Record Owner

	  	 Title

	  	Country

	  	Patent No.

	Caraustar Industrial and Consumer Products Group, Inc.	  	 Diffusing End Closure for a Dispensing
 Container
	  	 Hong Kong
 Design
Patent
	  	9800059.1
				
	Caraustar Industrial and Consumer Products Group, Inc.	  	 Diffusing End Closure for a Dispensing
 Container
	  	 Australia
 Design
Patent
	  	105466
				
	Caraustar Custom Packaging, Inc.	  	Partial Web in Tray Corners	  	US	  	6,505,769
				
	Arrow Paper Products Company *	  	 Deformable Plug for Use with Reduced
 Diameter End Shafts
	  	US	  	6,428,017
				
	Chesapeake Fiber Packaging Corporation **	  	Garment Hanger Shoulder Guard	  	US	  	5,139,184
				
	Chesapeake Fiber Packaging Corporation **	  	 Garment Hanger Shoulder Guard and Blank
 Therefor
	  	US	  	4,988,022
				
	Star Paper Tube, Inc. ***	  	Tube Forming Apparatus and Method	  	US	  	4,854,991

	*	 	This patent was acquired as part of the acquisition of Arrow Paper Products Company. Arrow Paper Products Company merged into Caraustar Industrial and Consumer Products Group, Inc.
Evidence of this merger has not been filed with the U. S. Patent and Trademark Office (the “PTO”). 

	**	 	Chesapeake Fiber Packaging Corporation changed its name to Caraustar Custom Packaging Group (Maryland), Inc., which then merged into Chesapeake Paperboard Company, which then change
its name to Caraustar Custom Packaging Group (Maryland), Inc. Evidence of these transactions has not been filed with the PTO. 

	***	 	Star Paper Tube, Inc. merged into Caraustar Industrial and Consumer Products Group, Inc. Evidence of this merger has not been filed with the PTO. 

  
 Patent Applications: 
  

	 Record Owner

	  	 Title

	  	 Country

	  	Applicatin
Serial No.

	  	 Filing
 Date

	 Caraustar Industries, Inc.
	  	Commodity Partition	  	Canada	  	2,092,162	  	03-22-1993

  
 Note: 
  
 Caraustar Industries, Inc. believes that it has acquired the rights to U.S.
Patent Application Serial No. 09/776,983 titled Pharmaceutical Container Having Signaling Means and Associated Method of Use filed February 5, 2001 as part of the dissolution of Data-Rich, LLC. Caraustar is assessing the value of this patent
application to determine whether to pursue the requisite assignment from the inventors. 
  
 Trademarks 

	 Record Owner

	 	 Mark

	 	 Country

	 	 Status /Reg. No.

	 Caraustar Industries, Inc.
	 	KRAFTONE®	 	US	 	 Reg. No.
 2,482,325

				
	 Caraustar Industries, Inc.
	 	ECONOPOUR®	 	US	 	 Reg. No.
 2,082,467

				
	 Caraustar Industries, Inc.
	 	REPELKOTE®	 	US	 	 Reg. No.
 2,402,429

				
	 Caraustar Industries, Inc.
	 	WHITONE®	 	US	 	 Reg. No.
 2,569,625

				
	 Caraustar Industries, Inc.
	 	INVERTOP®	 	US	 	 Reg. No.
 2,674,866

				
	 Caraustar Industries, Inc.
	 	INVERFREEZ®	 	US	 	 Reg. No.
 2,674,865

				
	 Caraustar Industries, Inc.
	 	BLISTONE®	 	US	 	 Reg. No.
 2,677,688

				
	 Caraustar Industries, Inc.
	 	CARA MTM	 	US	 	 Reg. No.
 2,713,125

				
	 Caraustar Industries, Inc.
	 	STATONE®	 	US	 	 Reg. No.
 2,677,633

				
	 Caraustar Industries, Inc.
	 	Q-SMOOTH®	 	US	 	 Reg. No.
 2,119,723

				
	 Caraustar Industries, Inc.
	 	A-PAK®	 	US	 	 Reg. No.
 2,173,974

				
	 Caraustar Industries, Inc.
	 	PROTECH®	 	US	 	 Reg. No.
 1,440,580

				
	 Caraustar Industries, Inc.
	 	Q STACK®	 	US	 	 Reg. No.
 1,804,449

				
	 Caraustar Industries, Inc.
	 	QPM®	 	US	 	 Reg. No.
 1,454,240

				
	 Caraustar Industries, Inc.
	 	[Sleek/ LOGO]®	 	US	 	Reg. No. 777,217
				
	 Caraustar Industries, Inc.
	 	CONDUCTCOR®	 	US	 	 Reg. No.
 1,449,648

				
	 Caraustar Industries, Inc.
	 	TURF TUBES®	 	US	 	 Reg. No.
 2,363,457

	 Record Owner

	 	 Mark

	 	 Country

	 	 Status / Reg. No.

	 	 	 	 	 	 	(Sup Reg)
	 Caraustar Industries, Inc.
	 	QUICK GRAB®	 	US	 	 Reg. No.
 2,269,147

				
	 Caraustar Industries, Inc.
	 	BRITONE®	 	US	 	 Reg. No.
 1,031,428

				
	 Caraustar Industries, Inc.
	 	PROTECH	 	Benelux	 	Reg. No. 457,901
				
	 Caraustar Industries, Inc.
	 	PROTECH	 	France	 	 Reg. No.
 1,621,469

				
	 Caraustar Industries, Inc.
	 	PROTECH	 	Ireland	 	Reg. No. 131,098
				
	 Caraustar Industries, Inc.
	 	PROTECH	 	Italy	 	Reg. No. 569,046
				
	 Caraustar, G.P.
	 	CARAUSTAR®	 	US	 	 Reg. No.
 2,484,548

				
	 Caraustar, G.P.
	 	[LOGO]®`	 	US	 	 Reg. No.
 2,484,511

				
	 Caraustar, G.P.
	 	[Caraustar LOGO]®	 	US	 	 Reg. No.
 2,484,512

				
	 Caraustar, G.P.
	 	[LOGO]TM	 	Canada	 	 Reg. No.
 1,059,768

				
	 Caraustar, G.P.
	 	CARAUSTAR®	 	 United
 Kingdom
	 	 Reg. No.
 2,232,931

				
	 Caraustar, G.P.
	 	[LOGO]®	 	 United
 Kingdom
	 	 Reg. No.
 2,232,930

				
	 Caraustar, G.P.
	 	[Caraustar LOGO]®	 	 United
 Kingdom
	 	 Reg. No.
 2,232,932

				
	 Caraustar, G.P.
	 	CARAUSTAR®	 	Mexico	 	 Reg. No. 682,903
 Paper goods (16)

	 Record Owner

	 	 Mark

	 	 Country

	 	 Status / Reg. No.

				
	 Caraustar, G.P.
	 	CARAUSTAR®	 	Mexico	 	 Reg. No. 682,904
 Plastics and
 wallboard (17)

				
	 Caraustar, G.P.
	 	CARAUSTAR®	 	Mexico	 	 Reg. No. 682,905
 Recycling services
 (40)

				
	 Caraustar, G.P.
	 	[Caraustar LOGO]®	 	Mexico	 	 Reg. No. 682,121
 Paper goods (16)

				
	 Caraustar, G.P.
	 	[Caraustar LOGO]®	 	Mexico	 	 Reg. No. 699,557
 Plastics and
 wallboard (17)

				
	 Caraustar, G.P.
	 	[Caraustar LOGO]®	 	Mexico	 	 Reg. No. 682,122
 Recycling services
 (40)

				
	 Caraustar, G.P.
	 	[LOGO]®	 	Mexico	 	 Reg. No. 682,118
 Paper goods (16)

				
	 Caraustar, G.P.
	 	[ LOGO]®	 	Mexico	 	 Reg. No. 682,119
 Plastics and wallboard
 (17)

				
	 Caraustar, G.P.
	 	[LOGO]®	 	Mexico	 	 Reg. No. 682,120
 Recycling services
 (40)

				
	 Caraustar Industrial and Consumer Products Group, Inc.
	 	K-SAFE®	 	US	 	 Reg. No.
 1,693,969

				
	 Caraustar Industrial and Consumer Products Group, Inc.
	 	PLASTICS ON DEMAND (POD)®	 	US	 	 Reg. No.
 2,488,014

				
	 Caraustar Industrial and Consumer Products Group, Inc.
	 	K-SEAL®	 	US	 	 Reg. No.
 1,595,416

	 Record Owner

	  	 Mark

	  	Country

	  	 Status / Reg. No.

				
	 Caraustar Industrial and Consumer
 Products Group, Inc.
	  	K-WRAP®	  	US	  	 Reg. No.
 1,656,832

				
	 Sprague Paperboard, Inc.
	  	INVERKOTE®	  	US	  	 Reg. No.
 2,543,641

				
	 Oak Tree Packaging *
	  	Oak Tree Packaging	  	US	  	Reg. No. 2101719
				
	 Oak Tree Packaging *
	  	 OAKTREE PACKAGING
 (and
Design)
	  	US	  	Reg. No. 2120110
				
	 Oak Tree Packaging *
	  	 OAKTREE PACKAGING
 (and
Design)
	  	US	  	Reg. No. 1950972
				
	 Chesapeake Fiber Packaging
 Corporation **
	  	Shape-Up	  	US	  	Reg. No. 2240217
				
	 Chesapeake Fiber Packaging
 Corporation **
	  	Fit-Rite Deluxe	  	US	  	Reg. No. 2138562
				
	 Chesapeake Fiber Packaging
 Corporation **
	  	Contour	  	US	  	Reg. No. 2123570
				
	 Chesapeake Fiber Packaging
 Corporation **
	  	CPC Staiz	  	US	  	Reg. No. 2121524
				
	 Chesapeake Fiber Packaging
 Corporation **
	  	Pops-On	  	US	  	Reg. No. 2121523
				
	 Chesapeake Fiber Packaging
 Corporation **
	  	EZ LOK	  	US	  	Reg. No. 2147348
				
	 Chesapeake Fiber Packaging
 Corporation **
	  	Form-It	  	US	  	Reg. No. 2123569
				
	 Chesapeake Fiber Packaging
 Corporation **
	  	Snap-Pak	  	US	  	Reg. No. 2148958

	*	 	These trademarks were acquired as part of the acquisition of Oak Tree Packaging Corporation. Oak Tree Packaging Corporation merged into Caraustar Custom Packaging Group, Inc.
Evidence of this merger has not been filed with the PTO. Caraustar deems each of these trademarks immaterial and has decided to abandon each mark. 

  

	**	 	Chesapeake Fiber Packaging Corporation changed its name to Caraustar Custom Packaging Group (Maryland), Inc., which then merged into Chesapeake Paperboard Company, which then change
its name to Caraustar Custom Packaging Group (Maryland), Inc. Evidence of these transactions has not been filed with the PTO. 

 Trademark Applications 
  

	 Record Owner

	 	 Mark

	 	 Country

	 	 Status /Serial
 No.

				
	 Caraustar Industries, Inc.
	 	Q-LOCKTM	 	US	 	 Serial No.
 76/500,254
 Filed: 03-24-2003

				
	 Caraustar Industries, Inc.
	 	KONVA-KORETM	 	US	 	 Serial No.
 76/510,206
 Filed: 04-28-2003

				
	 Caraustar, G.P.
	 	CARAUSTARTM	 	Canada	 	 Serial No.
 1,059,767
 Filed: 05-19-2000
 Issue Fee Paid:
 04-30-2003

				
	 Caraustar, G.P.
	 	[Caraustar LOGO]TM	 	Canada	 	 Serial No.
 1,059,769
 Filed: 05-19-2000
 Issue Fee Paid:
 04-30-2003

  
 Copyrights 
  

	 Record Owner

	 	 Copyright Title

	 	 Country

	 	 Status

	 Chesapeake Fiber Packaging
 Corporation. *
	 	 Decorator Bag with
 Flexographic
Print
	 	US	 	 Reg. No.
 VA208054

	*	 	Chesapeake Fiber Packaging Corporation changed its name to Caraustar Custom Packaging Group (Maryland), Inc., which then merged into Chesapeake Paperboard Company, which then change
its name to Caraustar Custom Packaging Group (Maryland), Inc. Caraustar deems this copyright to be immaterial and has decided not to file evidence of these transactions with the U.S. Copyright Office. 

  
 Licensing Agreements 
  
 1. License Agreement dated as of July 13, 2002 between Caraustar Mill Group, Inc. and Fantasy Factory. 
  
 2. Oral License Agreement between Caraustar Mill Group, Inc. and Funskills,
Inc. 
  
 3. License Agreement dated as of June 17, 2002 between
Caraustar Mill Group, Inc. and Neil Elliot. 
  
 4. License
Agreement dated as of May 14, 2002 between Caraustar Mill Group, Inc. and Bradley J. Bennett. 
  
 5. RepelKote®
Contract Manufacturing Agreement by and between Caraustar Industries, Inc. and Bancroft Bag, Inc., dated as of August 14, 2000 

 6. RepelKote® Distribution Agreement between Caraustar Industries, Inc. and Progressive Coatings, Inc., dated as of August 9, 2000 
  
 7. RepelKote® Contract Manufacturing Agreement between Caraustar Industries, Inc. and Jefferson
Smurfit Corporation (U.S.) and Stone Container Corporation, dated as of August 4, 2000 
  
 8. Revised Master License Agreement between Caraustar Custom Packaging Group, Inc. and Micro Chef, Inc., entered into January 10, 2003 
  
 9. Trademark Licensing Agreement, among Caraustar G.P., Caraustar Industries, Inc. and each of its Subsidiaries named
therein, dated as of December 31, 1999 concerning the use of the branding marks 

 SCHEDULE IV 
 to 
 SECURITY AGREEMENT 
  
 ASSIGNED CONTRACTS 
  
 None. 

 SCHEDULE V 
 to 
 SECURITY AGREEMENT 
  
 COMMERCIAL TORT CLAIMS 
  

	 Case Name and Number

	  	Filing Date

	  	 Court of Record

	 Caraustar Industries, Inc. and
 McQueeney Gypsum Co. v. Elcor
 Corp., Cause No. CV 42,863
	  	February 2000	  	 District Court of Midland
 County, Texas, 142nd Judicial
 District

			
	 In the Matter of the Estate of Mikeal
 C. Adams; Before the Clerk, File
 No. 01E586 (claim by Caraustar
 Mill Group, Inc.)
	  	August 13, 2001	  	 Clerk, Superior Court
 Division, Cumberland County,
 North Carolina

			
	 In the Matter of the Estate of Mikeal
 C. Adams; Before the Clerk, File
 No. 01E586 (claim by Caraustar
 Industries, Inc.)
	  	August 13, 2001	  	 Clerk, Superior Court
 Division, Cumberland
County,
 North CarolinaFirst Amendment to Credit Agreement

 EXHIBIT 10.03 
  
 FIRST AMENDMENT TO CREDIT AGREEMENT 
  
 THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made and entered into as of this 8th day of
July, 2003, among Caraustar Industries, Inc., a North Carolina corporation (“Caraustar”), and each Subsidiary of Caraustar listed on the signature pages hereto as a “Borrower” (Caraustar and each such Subsidiary,
individually, a “Borrower”, and, collectively, “Borrowers”), and each Subsidiary of Caraustar listed on the signature pages hereto as a “Guarantor” (each such Subsidiary, individually, a
“Guarantor”, and, collectively, “Guarantors”; Borrowers and Guarantors, collectively, “Obligors”), the Lenders party to this Amendment (the “Lenders”), and Bank of America,
N.A., as Agent for the Lenders (the “Agent”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, Borrowers, Guarantors, the Lenders and the Agent entered into that certain Credit Agreement, dated as of June 24, 2003, pursuant to which the
Lenders agreed to make certain loans to Borrowers (as amended, modified, supplemented and restated from time to time, the “Credit Agreement”); and 
  
 WHEREAS, Borrowers, Guarantors, the Lenders and the Agent desire to enter into this Amendment for the purpose of amending
the Credit Agreement in certain respects. 
  
 NOW, THEREFORE, in
consideration of the foregoing premises, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 1. All capitalized terms used herein and not otherwise expressly defined
herein shall have the respective meanings given to such terms in the Credit Agreement. 
  
 2. The Credit Agreement is amended to reflect that Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc. has acted as the Documentation Agent thereunder. 
  
 3. The Credit Agreement is amended by deleting the second sentence of
Section 3.7 and replacing it with the following: 
  

	 All payments shall be remitted to the Agent and all such payments not relating to principal or interest of specific Loans, or not constituting payment
of specific fees, and all proceeds of Accounts or other Collateral received by the Agent, shall be applied, ratably, subject to the provisions of this Agreement, first, to pay any fees

	 (other than any annual Agent administrative fees that are more than $60,000 in excess of the current Agent administrative fee), indemnities or expense
reimbursements, then due to the Agent or the Arranger from the Obligors; second, to pay any fees or expense reimbursements then due to the Lenders from the Obligors; third, to pay interest due in respect of all Loans, including
Non-Ratable Loans and Agent Advances; fourth, to pay or prepay principal of the Non-Ratable Loans and Agent Advances (such amounts being applied first to the most recently made Non-Ratable Loans and Agent Advances); fifth, to pay or
prepay principal of the Revolving Loans (such amounts being applied first to the most recently made Revolving Loans), other than Non-Ratable Loans and Agent Advances, and to unpaid reimbursement obligations in respect of Letters of Credit;
sixth, at the election of the Agent during the existence of a Default or Event of Default, to pay an amount to the Agent equal to all outstanding Obligations (contingent or otherwise) with respect to outstanding Letters of Credit and Credit
Support to be held as cash collateral for such Obligations; and seventh, to the payment of any other Obligation due to the Agent or any Lender by any Obligor (including any amounts relating to ACH Transactions with the Bank or any Affiliate
of the Bank or any other Bank Products with any Lender or any Affiliate of a Lender; provided, that, if any Lender (or any of its Affiliates) other than the Bank provides Bank Products, the payment of amounts relating to such Bank Products shall be
junior in priority to the payment of all amounts owing to the Bank under this clause seventh with respect to Bank Products provided by the Bank and its Affiliates unless such other Lender provides the Agent notice of the amounts owing to it
with respect to its Bank Products prior to or contemporaneously with the provision of such Bank Products or any increase in the Obligors’ obligations with respect thereto).

  
 4. The Credit
Agreement is amended by deleting the last sentence of Section 1.2(h)(A) and replacing it with the following: 
  

	 The Agent shall not request the Bank to make any Non-Ratable Loan if (1) the Agent has received written notice from a Borrower or any Lender that one
or more of the applicable conditions precedent set forth in Article 8 will not be satisfied on the requested Funding Date for the applicable Borrowing, or (2) the requested Borrowing would exceed Availability on that Funding Date or cause the
aggregate outstanding amount of Non-Ratable Loans to exceed $10,000,000.

  
 5. The Credit
Agreement is amended by deleting the last sentence of Section 12.6 and replacing it with the following: 
  

	 Except for notices, reports and other documents expressly herein (or in another Loan Document to which the Agent is a party) required to be furnished
to the Lenders by the Agent, the Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business,

  

 2 

	 prospects, operations, property, financial and other condition or creditworthiness of any Obligor or any of its Affiliates which may come into the
possession of any of the Agent-Related Persons.

  
 6. The Credit
Agreement is amended by deleting Section 12.11(c) and replacing it with the following: 
  

	 (c) The Agent shall have no obligation whatsoever to any of the Lenders to assure that the Collateral exists or is owned by the
Obligors or is cared for, protected or insured or has been encumbered, or that the Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise
at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to the Agent pursuant to any of the Loan Documents, it being understood
and agreed that, except as otherwise expressly set forth in this Agreement or another Loan Document to which the Agent is a party, in respect of the Collateral, or any act, omission or event related thereto, the Agent may act in any manner it may
deem appropriate, in its sole discretion given the Agent’s own interest in the Collateral in its capacity as one of the Lenders and that the Agent shall have no other duty or liability whatsoever to any Lender as to any of the
foregoing.

  
 7. The Credit
Agreement is amended by deleting the last two sentences of Section 12.15(c) and replacing them with the following: 
  

	 The failure of any Lender to make any Revolving Loan in respect of which such Lender is obligated to fund hereunder on any Funding Date (any such
Lender, prior to the cure of such failure, being hereinafter referred to as a “Defaulting Lender”) shall not relieve any other Lender of its obligation hereunder to make a Revolving Loan on that Funding Date. No Lender shall be
responsible for any other Lender’s failure to advance such other Lender’s Pro Rata Share of any Borrowing.

  
 8. The Credit
Agreement is amended by deleting Section 12.20 and replacing it with the following: 
  
  12.20 Arranger; Co-Agents. 
  

	 (a) Each of the parties to this Agreement acknowledges that the Arranger does not have any obligations hereunder and shall not be
responsible or accountable to any other party hereto for any action or failure to act hereunder. Without limiting the foregoing, the Arranger shall not have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges
that it has

  

 3 

	 not relied, and will not rely, on the Arranger in deciding to enter into this Agreement or in taking or not taking
action hereunder.
  
 (b) Each of the
parties to this Agreement acknowledges that Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc. does not have any obligations hereunder in its capacity as Documentation Agent and shall not be responsible or
accountable to any other party hereto for any action or failure to act hereunder in its capacity as Documentation Agent. Without limiting the foregoing, the Documentation Agent shall not have or be deemed to have any fiduciary relationship with any
Lender. Each Lender acknowledges that it has not relied, and will not rely, on the Documentation Agent in deciding to enter into this Agreement or in taking or not taking action hereunder.

  
 9. The Credit
Agreement is amended by deleting the last two sentences of Section 14.7 and replacing them with the following: 
  

	 In addition, the Obligors jointly and severally agree to pay (i) on demand to the Agent, for its benefit, all costs
and expenses incurred by the Agent (including Attorneys’ Costs), and (ii) subject to the limitations expressly set forth herein or in another Loan Document on actions which may be taken by the Lenders alone, to the Lenders (other than the
Bank), on demand, all reasonable and actual fees, expenses and disbursements paid or incurred by the Lenders during the existence of an Event of Default to obtain payment of the Obligations, enforce the Agent’s Liens, sell or otherwise realize
upon the Collateral, and otherwise enforce the provisions of the Loan Documents (provided that attorneys’ fees, expenses and disbursements associated with the foregoing shall be limited to those of one law firm retained by the Lenders), or to
defend any claims made or threatened against the Agent or any Lender arising out of the transactions contemplated hereby (including preparations for and consultations concerning any such matters). The foregoing shall not be construed to limit any
other provisions of the Loan Documents regarding costs and expenses to be paid by the Obligors. All of the foregoing costs and expenses shall be charged to the Borrowers’ Loan Account as Revolving Loans as described in Section
3.6.
  

  
 10. The Credit
Agreement is amended by deleting the definition of “Required Lenders” set forth in Annex A and replacing it with the following: 
  

	 “Required Lenders” means at any time Lenders whose Pro Rata Shares aggregate more than 50%; provided, that at any
time when there are only two Lenders, “Required Lenders” shall mean both Lenders.

  
 11. The effectiveness
of this Amendment is expressly conditioned upon the assignment by the Bank, pursuant to one or more Assignments and Acceptances, of such amounts of its Commitment such that, after such assignment, the Commitments of the Lenders shall be as set forth

  

 4 

 
on Schedule 1.1 attached hereto. Upon the effectiveness of this Amendment, Schedule 1.1 attached hereto shall supersede and replace Schedule
1.1 attached to the Credit Agreement. 
  
 12. To induce the
Agent and the Lenders to enter into this Amendment, Borrowers and Guarantors hereby represent and warrant that, as of the date hereof, there exists no Default or Event of Default under the Credit Agreement. 
  
 13. Borrowers and Guarantors hereby restate, ratify, and reaffirm each and
every representation and warranty heretofore made by each of them under or in connection with the execution and delivery of the Credit Agreement, as modified hereby, and the other Loan Documents, as fully as though such representations and
warranties had been made on the date hereof and with specific reference to this Amendment, except to the extent that any such representation or warranty relates solely to a prior date. 
  
 14. Except as expressly set forth herein, the Credit Agreement and the other Loan Documents shall be and remain in full
force and effect as originally written, and shall constitute the legal, valid, binding and enforceable obligations of Borrowers and Guarantors to the Agent and the Lenders. 
  
 15. Borrowers agree to pay on demand all reasonable costs and expenses of the Agent in connection with the preparation,
execution, delivery and enforcement of this Amendment and all other Loan Documents and any other transactions contemplated hereby, including, without limitation, the reasonable fees and out-of-pocket expenses of legal counsel to the Agent.

  
 16. Borrowers and Guarantors agree to take such further action
as the Agent shall reasonably request in connection herewith to evidence the agreements herein contained. 
  
 17. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which, when so executed
and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same instrument. 
  
 18. This Amendment shall be binding upon and inure to the benefit of the successors and permitted assigns, and legal representatives and heirs, of the
parties hereto. 
  
 19. This Amendment shall be governed by, and
construed in accordance with, the laws of the State of Georgia. 
  
 [SIGNATURES BEGIN ON NEXT PAGE] 
  

 5 

 IN WITNESS WHEREOF, the parties have entered into this Agreement on the date first above written.

  

	BORROWERS:
	
	 CARAUSTAR INDUSTRIES, INC.

		
	 By:
	 	 /s/  Ronald J. Domanico
  

	 	 	 Ronald J. Domanico, Vice President

	
	 CARAUSTAR CUSTOM PACKAGING GROUP, INC.

		
	 By:
	 	 /s/  Ronald J. Domanico
  

	 	 	 Ronald J. Domanico, Vice President

	
	 CARAUSTAR RECOVERED FIBER GROUP, INC.

		
	 By:
  
	 	 /s/  Ronald J. Domanico
  

	 	 	 Ronald J. Domanico, Vice President

	
	 CARAUSTAR INDUSTRIAL AND CONSUMER
 PRODUCTS GROUP, INC.

		
	 By:
	 	 /s/  Ronald J. Domanico
  

	 	 	 Ronald J. Domanico, Vice President

	
	 CARAUSTAR MILL GROUP, INC.

		
	 By:
	 	 /s/  Ronald J. Domanico
  

	 	 	 Ronald J. Domanico, Vice President

  

	 PARADIGM CHEMICAL & CONSULTING, LLC

			
	 	 	 By:
	 	 CARAUSTAR MILL GROUP, INC.,
 sole member

				
	 	 	 	 	 By:
	 	 /s/ Ronald J. Domanico
  

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

	 SPRAGUE PAPERBOARD, INC.

		
	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 Ronald J. Domanico, Vice President

	
	GUARANTORS:
	
	 PBL INC.

		
	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 Ronald J. Domanico, Vice President

	
	 GYPSUM MGC, INC.

		
	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 Ronald J. Domanico, Vice President

	
	 MCQUEENEY GYPSUM COMPANY

		
	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 Ronald J. Domanico, Vice President

  

	 CARAUSTAR, G.P.

			
	 	 	 By:
	 	 CARAUSTAR INDUSTRIES, INC.,
 general partner

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

			
	 	 	 By:
	 	 CARAUSTAR INDUSTRIAL AND
 CONSUMER PRODUCTS GROUP, INC.,
 general partner

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

	 MCQUEENY GYPSUM COMPANY, LLC

			
	 	 	 By:
	 	 MCQUEENEY GYPSUM COMPANY,
 sole member

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

  

	 RECCMG, LLC

			
	 	 	 By:
	 	 CARAUSTAR MILL GROUP, INC.,
 sole member

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

  

	 CICPG, LLC

			
	 	 	 By:
	 	 CARAUSTAR INDUSTRIAL AND
 CONSUMER PRODUCTS GROUP, INC.

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

  

	 FEDERAL TRANSPORT, INC.

		
	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 Ronald J. Domanico, Vice President

  

	 AUSTELL HOLDING COMPANY, LLC

			
	 	 	 By:
	 	 CARAUSTAR INDUSTRIES, INC.,
 sole member

				
	 	 	 	 	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 	 	 Ronald J. Domanico, Vice President

  

	 CAMDEN PAPERBOARD CORPORATION

		
	 By:
	 	 /S/    RONALD J.
DOMANICO

	 	 	 	 	 Ronald J. Domanico, Vice President

	 CHICAGO PAPERBOARD CORPORATION
 
		
	 By:
 	 	 /S/    RONALD J.
DOMANICO
 
 
	 	 	 Ronald J. Domanico, Vice President
 
	
	 HALIFAX PAPER BOARD COMPANY, INC.
 
		
	 By:
 	 	 /S/    RONALD J.
DOMANICO
 
 
	 	 	 Ronald J. Domanico, Vice President
 
	
	 CARAUSTAR CUSTOM PACKAGING GROUP
 (MARYLAND), INC.
 
		
	 By:
 	 	 /S/    RONALD J.
DOMANICO
 
 
	 	 	 Ronald J. Domanico, Vice President
 
	
	AGENT:
	
	 BANK OF AMERICA, N.A., as the Agent
 
		
	 By:
 	 	 /S/    WALTER T.
SHELLMAN
 
 
	 	 	 Walter T. Shellman, Vice President
 
	

 

 SCHEDULE 1.1 
  
 COMMITMENTS 
  

	 Lender

	  	Commitment

	  	Pro Rata Share

			
	 Bank of America, N.A.
	  	$	27,500,000	  	36.667%
			
	 Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services Inc.
	  	$	27,500,000	  	36.667%
			
	 The CIT Group/Business Credit, Inc.
	  	$	20,000,000	  	26.667%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]