Document:

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                    RESOURCE BANCSHARES MORTGAGE GROUP, INC.
                      OUTSIDE DIRECTORS' STOCK OPTION PLAN

                                    ARTICLE I
                      PURPOSE; EFFECTIVE DATE; DEFINITIONS

         1.1 Purpose. This Resource Bancshares Mortgage Group, Inc. Outside
Directors' Stock Option Plan is intended to secure for Resource Bancshares
Mortgage Group, Inc. and its stockholders the benefits of the incentive inherent
in common stock ownership by the Outside Directors of the Company, who are
responsible in part for the Company's growth and financial success, and to
afford such persons the opportunity to obtain and thereafter increase a
proprietary interest in the Company on a favorable basis and thereby share in
its success.

         1.2 Effective Date. Subject to the approval of the Board and to
ratification by the Company's stockholders as provided in Section 5.8, this Plan
shall become effective as of July 27, 2000.

         1.3 Definitions. Capitalized terms used in this Plan but not defined
herein are used herein as defined in the Option Agreement. In addition,
throughout this Plan, the following terms shall have the meanings indicated:

                  (a) "Board" shall mean the Board of Directors of the Company.

                  (b) "Code" shall mean the Internal Revenue Code of 1986, as
amended, and the rules and regulations promulgated thereunder.

                  (c) "Committee" shall mean the a committee of the Board that
is composed solely of two or more "nonemployee directors" within the meaning of
Rule 16b-3 promulgated under the Exchange Act.

                  (d) "Common Stock" shall mean the Common Stock, par value $.01
per share, of the Company.

                  (e) "Company" shall mean Resource Bancshares Mortgage Group,
Inc., a Delaware corporation.

                  (f) "Director" shall mean any member of the Board.

                  (g) "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended.

                  (h) "Fair Market Value" shall mean, with respect to the Common
Stock on any

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day, the closing sales price of a share of Common Stock for the immediately
preceding or, if the principal market for trading the Common Stock is not open
or if no closing sales price of a share of Common Stock is available that day,
the closing sales price of a share of Common Stock for the day most immediately
preceding that day for which a closing sales price is available. The market
value of an Option granted under the Plan on any day shall be the market value
of the underlying Common Stock, determined as aforesaid, less the exercise price
of the Option.

                  (i) "Option" shall mean an option to purchase shares of Common
Stock awarded to an Outside Director pursuant to this Plan.

                  (j) "Option Agreement" shall mean an agreement between the
Company and an Outside Director, in substantially the form of Annex A to this
Plan, evidencing the award of an Option.

                  (k) "Option Shares" shall mean the shares of Common Stock
purchased upon exercise of an Option.

                  (l) "Outside Director" shall mean any Director other than a
Director who, at the time of an Option award to such Director hereunder, is a
full-time employee or executive officer of the Company or any subsidiary of the
Company.

                  (m) "Plan" shall mean this Resource Bancshares Mortgage Group,
Inc. Outside Directors' Stock Option Plan, as the same may be amended from time
to time.

                  (j) "Change of Control" shall mean:

                           (1) The acquisition by any individual, entity or
         group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
         Exchange Act) (a "Person") of beneficial ownership (within the meaning
         of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of
         either (i) the then outstanding shares of Common Stock (the
         "Outstanding Company Common Stock") or (ii) the combined voting power
         of the then outstanding voting securities of the Company entitled to
         vote generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         paragraph (1), the following acquisitions shall not constitute a Change
         of Control: (i) any acquisition directly from the Company, (ii) any
         acquisition by the Company, (iii) any acquisition by any employee
         benefit plan (or related trust) sponsored or maintained by the Company
         or any corporation controlled by the Company or (iv) any acquisition by
         any corporation pursuant to a transaction which complies with
         subparagraphs (i), (ii) and (iii) of paragraph (3) of this subsection
         1.3(n); or

                           (2) Individuals who, as of the date hereof,
         constitute the Board (the "Incumbent Board") cease for any reason to
         constitute at least a majority of the Board; provided, however, that
         any individual becoming a Director subsequent to the date hereof

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         whose election, or nomination for election by the Company's
         stockholders, was approved by a vote of at least a majority of the
         Directors then comprising the Incumbent Board shall be considered as
         though such individual were a member of the Incumbent Board, but
         excluding, for this purpose, any such individual whose initial
         assumption of office occurs as a result of an actual or threatened
         election contest with respect to the election or removal of Directors
         or other actual or threatened solicitation of proxies or consents by or
         on behalf of a Person other than the Board; or

                           (3) Consummation of a reorganization, merger or
         consolidation or sale or other disposition of all or substantially all
         of the assets of the Company or the acquisition of assets of another
         corporation (a "Business Combination"), in each case, unless, following
         such Business Combination, (i) all or substantially all of the
         individuals and entities who were the beneficial owners, respectively,
         of the Outstanding Company Common Stock and Outstanding Company Voting
         Securities immediately prior to such Business Combination beneficially
         own, directly or indirectly, more than 50% of, respectively, the then
         outstanding shares of common stock and the combined voting power of the
         then outstanding voting securities entitled to vote generally in the
         election of directors, as the case may be, of the corporation resulting
         from such Business Combination (including, without limitation, a
         corporation which as a result of such transaction owns the Company or
         all or substantially all of the Company's assets either directly or
         through one or more subsidiaries) in substantially the same proportions
         as their ownership, immediately prior to such Business Combination of
         the Outstanding Company Common Stock and Outstanding Company Voting
         Securities, as the case may be, (ii) no Person (excluding any
         corporation resulting from such Business Combination or any employee
         benefit plan (or related trust) of the Company or such corporation
         resulting from such Business Combination) beneficially owns, directly
         or indirectly, 20% or more of, respectively, the then outstanding
         shares of common stock of the corporation resulting from such Business
         Combination or the combined voting power of the then outstanding voting
         securities entitled to vote generally in the election of directors of
         such corporation except to the extent that such ownership existed prior
         to the Business Combination and (iii) at least a majority of the
         members of the board of directors of the corporation resulting from
         such Business Combination were members of the Incumbent Board at the
         time of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                           (4) Approval by the stockholders of the Company of a
         complete liquidation or dissolution of the Company.

                                   ARTICLE II
                                    COMMITTEE

         2.1 Committee Work. The Company's Senior Vice President for Human
Resources (or other person with the responsibilities of such an officer) shall
advise the Committee, upon

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request, as to the proper interpretation, construction and administration of
this Plan and the Options. Nevertheless, this Plan and the Options shall be
interpreted, construed and administered by the Committee alone. An Outside
Director may appeal to the Committee, in writing, any decision or action of the
Committee with respect to the Plan that adversely affects the Outside Director.
Upon review of such appeal, and in any other case where the Committee has acted
with respect to the Plan or Options, the decision on appeal or the
interpretation or construction by the Committee of any provision of this Plan or
of any Option shall be conclusive and binding on all parties. A majority of the
entire Committee shall constitute a quorum, and the action of a majority of the
members present at any meeting at which a quorum is present shall be deemed the
action of the Committee. In addition, any decision or determination reduced to
writing and signed by all members of the Committee shall be fully as effective
as if it had been made by a majority vote at a meeting duly called and held.
Subject to the provisions of the Plan and the Company's bylaws, the Committee
may make such additional rules and regulations for the conduct of its business
as it shall deem advisable and shall hold meetings at such times and places as
it may determine.

         2.2 Good Faith Determinations.No member of the Committee or other
member of the Board shall be liable for any action or determination made in good
faith with respect to this Plan or any Option granted hereunder.

                                   ARTICLE III
                     ELIGIBILITY; SHARES SUBJECT TO THE PLAN

         3.1 Eligibility. Only Outside Directors shall be eligible to receive
Option awards under this Plan.

         3.2 Shares Subject to the Plan. Subject to the provisions of Section
4.3(d) (relating to adjustment for changes in the Common Stock), the maximum
number of shares that may be issued under this Plan shall not exceed in the
aggregate 300,000 shares of Common Stock, as such number of shares may be
adjusted after July 27, 2000 pursuant to Section 4.3(d). Such shares may be
authorized and unissued shares or, in the alternative, authorized and issued
shares that have been reacquired by the Company as treasury stock. If any Option
awarded under this Plan shall for any reason terminate or expire or be
surrendered without having been exercised in full, then the underlying shares
not acquired by Option exercise shall be available again for grant hereunder.

                                   ARTICLE IV
                                  OPTION AWARDS

         4.1 Grant of Options. As of July 27, 2000, each person who is then an
Outside Director shall be awarded an Option to purchase 10,000 shares of Common
Stock, in each case at an exercise price per share equal to the Fair Market
Value per share of Common Stock on the July 27, 2000. On September 1 of each
year during the term of the Plan (including September 1, 2000),

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the Committee, upon recommendation of the Company's Chief Executive Officer,
shall award Options to Outside Directors to purchase shares of Common Stock, in
each case at an exercise price equal to the Fair Market Value per share of
Common Stock on the September 1 that is the award date. The number of shares of
Common Stock that are subject to an Option to an Outside Director may not exceed
the number of shares recommended to the Committee for such Outside Director by
the Company's Chief Executive Officer. In making any such recommendation to the
Committee and the Committee's award of an Option, the Company's Chief Executive
Officer and the Committee may take into account the nature of the services
rendered by the Outside Director, other compensation payable to the Outside
Director by the Company, the capacity of the Outside Director to contribute to
the success of the Company and such other factors that the Company's Chief
Executive Officer and the Committee may consider relevant. Notwithstanding
Section 4.2 of the Plan, grants of options made prior to shareholder approval,
as provided in Section 5.8 of the Plan, shall be subject to such shareholder
approval and shall not be exercisable prior to such approval.

         4.2 Vesting. Each Option shall be exercisable, in whole or in part, at
any time and from time to time during the Option Period, but not thereafter, to
the extent set forth in the schedule below:

if the period from                     then the maximum percentage of the Option
the date of the award                  Shares that may be purchased through such
until the Exercise Date is:            Exercise Date is:
---------------------------------      -----------------------------------------
less than 1 year,                      20%
at least 1 year,                       40%
but less than 2 years,
at least 2 years,                      60%
but less than 3 years,
at least 3 years,                      80%
but less than 4 years,
at least 4 years,                      100%

Provided, however, that (i) in the event of a Change of Control of the type set
forth in paragraph (1), (2) or (4) of the definition of Change of Control and
(ii) immediately prior to the occurrence of a Change of Control of the type set
forth in paragraph (3) of the definition of Change of Control, each Option
outstanding under the Plan shall become exercisable in whole or in part without
regard to the foregoing schedule. In addition, each Option Agreement shall
provide for acceleration of exercisability in the event of death or permanent
and total disability (within the meaning of Section 22(e)(3) of the Code). Each
Option shall terminate on the expiration of its Option Period, if not earlier
terminated.

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         4.3 Other Terms and Conditions. Each Option award under this Plan shall
be evidenced by an Option Agreement. The Option Agreements need not be identical
with one another, but each one shall include the substance of all of the
following terms and conditions:

                  (a) Numbers of Shares, Option Exercise Price and Vesting
         Schedule. Each Option Agreement shall state the number of shares of
         Common Stock to which it pertains, the Option exercise price and the
         schedule by which the Options subject thereto shall become exercisable,
         all in accordance with this Plan.

                  (b) Medium and Time of Payment. Upon exercise of an Option,
         the Option exercise price shall be payable in United States dollars, in
         cash (including check) or (unless the Board otherwise prescribes) in
         shares of Common Stock owned by the optionee for a period of six
         months, or in a combination of cash and such Common Stock. If all or
         any portion of the Option exercise price is paid in Common Stock owned
         by the optionee, then that stock shall be valued at its Fair Market
         Value as of the date the Option is exercised. An Option shall be deemed
         to be exercised on the date that the Company receives full payment of
         the exercise price for the number of shares for which the Option is
         being exercised. For the purpose of assisting an optionee to exercise
         an Option, the Company may, in the discretion of the Board, make
         recourse loans to the optionee or guarantee recourse loans made by
         third parties to the optionee, in either case on such terms and
         conditions as the Board may authorize.

                  (c) Minimum Exercise; No Transfers. Not less than 100 shares
         of Common Stock may be purchased by Option exercise at any one time
         unless the number purchased is the total number of shares in respect of
         which the Option is then exercisable. No Option shall be assignable or
         transferable by an optionee, and no other person shall acquire any
         rights therein, except that the Option may be transferred by will or
         the laws of descent or distribution or pursuant to a formal court order
         in connection with the divorce of the optionee.

                  (d) Recapitalization; Reorganization. Subject to any action
         required by the stockholders of the Company, the maximum number of
         shares of Common Stock that may be issued under this Plan pursuant to
         Section 3.2, the number of shares of Common Stock covered by each
         outstanding Option and the per-share exercise price applicable to each
         outstanding Option shall, in each case, be proportionately adjusted for
         any increase or decrease in the number of issued shares of Common Stock
         resulting from a subdivision or consolidation of shares or the payment
         of a stock dividend (but only on the Common Stock) or any other
         increase or decrease in the number of such shares effected without
         receipt of consideration by the Company.

                  Subject to any action required by the stockholders, in the
         event of a Business Combination that does not result in a Change of
         Control, each Option outstanding under the Plan shall pertain to and
         apply to the securities or other consideration that a holder of the

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         number of shares of Common Stock underlying the Option would have been
         entitled to receive in the Business Combination. In the event of a
         Business Combination that results in a Change of Control of the type
         set forth in paragraph (c) of the definition of Change of Control or in
         the event of the complete liquidation or dissolution of the Company,
         then each outstanding Option shall terminate; provided however, that
         each optionee shall, in such event, have the right immediately prior to
         such Change of Control or complete liquidation or dissolution, to
         exercise his or her Option in whole or in part without regard to any
         installment provision that might be contained in the applicable Option
         Agreement.

                  In the event of a change in the Common Stock as presently
         constituted, which change is limited to a change of all of the
         authorized shares with par value into the same number of shares with a
         different par value or without par value, the shares resulting from any
         such change shall be deemed to be Common Stock within the contemplation
         of this Plan.

                  The foregoing adjustments shall be made by the Committee,
         whose determination shall be conclusive.

                  Except as expressly provided in this subsection, the optionee
         shall have no rights by reason of (i) any subdivision or consolidation
         of shares of any class, (ii) any stock dividend, (iii) any other
         increase or decrease in the number of shares of stock of any class,
         (iv) any dissolution, liquidation, merger or consolidation or spin-off,
         split-off or split-up of assets of the Company or stock of another
         corporation or (v) any issuance by the Company of shares of stock of
         any class or securities convertible into shares of stock of any class.
         Moreover, except as expressly provided in this subsection, the
         occurrence of one or more of the above-listed events shall not affect,
         and no adjustment by reason thereof shall be made with respect to, the
         number of, or the exercise price relative to, the shares of Common
         Stock underlying the Option.

                  The grant of an Option pursuant to this Plan shall not affect
         in any way the right or power of the Company to make adjustments,
         reclassifications, reorganizations or changes to, of or in its capital
         or business structure or to merge, consolidate, dissolve or liquidate
         or sell or transfer all or any part of its business or assets.

                  (e) Rights as a Stockholder. An optionee or a transferee of an
         Option shall have no rights as a stockholder with respect to any shares
         underlying his or her Option until the date of the issuance of a stock
         certificate for those shares upon payment of the exercise price. No
         adjustments shall be made for dividends (ordinary or extraordinary,
         whether in cash, securities or other property) or distributions or
         other rights for which the record date is prior to the date such stock
         certificate is issued, except as provided in subsection 4.3(d).

                  (f) Option Termination.

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                  (1) Each Option Agreement shall provide that, if the optionee
         ceases to be a Director incidental to conduct that, in the judgment of
         the Committee, involves a breach of fiduciary duty by such optionee or
         other conduct detrimental to the Company, then his or her Option shall
         terminate immediately and thereafter be of no force or effect.

                  (2) Each Option Agreement shall also provide that, if the
         optionee ceases to be a Director for a reason other than conduct that,
         in the judgment of the Committee, involves a breach of fiduciary duty
         by such optionee or other conduct detrimental to the Company, then the
         optionee may at any time within three months after he or she ceases to
         be a Director exercise his or her Option but only to the extent the
         Option was exercisable by him or her on the date he or she ceased to be
         a Director (the unexercisable portion of the Option shall terminate and
         thereafter be of no force or effect).

                  (3) Each Option Agreement also shall provide that, if the
         optionee becomes permanently and totally disabled (within the meaning
         of Section 22(e)(3) of the Code) while serving as a Director, then such
         Option may be fully exercised not later than the expiration of twelve
         months following such permanent and total disability by the optionee or
         person, if any, appointed by a court to administer the affairs of the
         optionee.

                  (4) Each Option Agreement also shall provide that, if the
         optionee dies while serving as a Director, then such Option may be
         fully exercised not later than the expiration of twelve months
         following such death by the person or persons to whom his or her rights
         under the Option shall pass by will or by the laws of descent or
         distribution. In addition, each Option Agreement also shall provide
         that, if the optionee dies within the three month period described in
         clause (2) above or the one year period described in clause (3) above,
         then his or her Option may be exercised at any time within one year
         following his or her death by the person or persons to whom his or her
         rights under the Option shall pass by will or by the laws of descent
         and distribution, but only to the extent that such Option was
         exercisable by him or her on his or her date of death.

                  (5) Each Option Agreement also shall provide for acceleration
         of exercisability in the event of a Change of Control.

                  (6) Notwithstanding anything to the contrary in this
         subsection, an Option may not be exercised by anyone after the
         expiration of its term.

                                    ARTICLE V
                                  MISCELLANEOUS

         5.1 Designation. This Plan may be referred to in other documents and
instruments as the "Resource Bancshares Mortgage Group, Inc. Outside Directors'
Stock Option Plan."

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         5.2 Amendment, Suspension, Discontinuance and Termination of Plan. The
Committee may from time to time amend, suspend or discontinue this Plan or
revise it in any respect whatsoever for the purpose of maintaining or improving
its effectiveness as an incentive device, for the purpose of conforming it to
applicable governmental regulations or to any change in applicable law or
regulations, or for any other purpose permitted by law; provided, however, that
no such action by the Committee shall adversely affect any Option theretofore
awarded hereunder without the consent of the holder so affected; provided
further that any amendment to this Plan that would materially increase the
benefits accruing to participants hereunder, materially increase the number of
shares of Common Stock that may be issued upon exercise of Options granted
hereunder or materially modify this Plan's requirements as to eligibility for
participation herein must be approved by the stockholders of the Company. This
Plan will terminate on the date when all shares of the Common Stock received for
issuance under the Plan have been acquired upon exercise of Options granted
hereunder or on such earlier date as the Board may determine.

         5.3 Governing Law. This Plan and all rights and obligations hereunder
shall be construed in accordance with and governed by the laws of the State of
South Carolina.

         5.4 Indemnification of Committee. In addition to such other rights of
indemnification as they may have as Directors or as members of the Committee,
the members of the Committee shall be indemnified by the Company against the
reasonable expenses, including legal fees actually and necessarily incurred in
connection with the defense of any investigation, action, suit or proceeding, or
in connection with any appeal therefrom, to which they or any of them may be a
party by reason of any action taken or failure to act under or in connection
with this Plan or any Option granted hereunder, and against all amounts paid by
them in settlement thereof (provided such settlement is approved by independent
legal counsel selected by the Company) or paid by them in satisfaction of a
judgment in or dismissal or other discontinuance of any such investigation,
action, suit or proceeding, except in relation to matters as to which it shall
be adjudged in such investigation, action, suit or proceeding that such
Committee member is liable for negligence or misconduct in the performance of
his or her duties, provided that, within 60 days after institution of any such
investigation, action, suit or proceeding, a Committee member shall in writing
offer the Company the opportunity, at its own expense, to handle and defend the
same.

         5.5 Reservation of Shares. The Company shall, at all times during the
term of this Plan and so long as any Option shall be outstanding, reserve and
keep available such number of shares of Common Stock as shall be sufficient to
satisfy the requirements hereof. Notwithstanding the foregoing, the inability of
the Company to obtain, from any regulatory body of appropriate jurisdiction,
authority considered by the Company to be necessary or desirable to the lawful
issuance of any shares of its Common Stock hereunder shall relieve the Company
of any liability in respect of the non-issuance or sale of such Common Stock as
to which such requisite authority shall not have been obtained.

         5.6 Application of Funds. The proceeds received by the Company from the
sale of

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Common Stock upon the exercise of Options will be used for general corporate
purposes.

         5.7 No Obligation to Exercise.The award of an Option under this plan
shall impose no obligation upon the optionee to exercise that Option.

         5.8 Approval of Stockholders. No Options awarded pursuant to this Plan
shall be enforceable against the Company unless and until the Plan shall have
been ratified by the stockholders of the Company.

                                    * * * * *

                                       10<PAGE>   1
                                                                   EXHIBIT 10.06

         Caraustar Industries, Inc. ("Caraustar") is a party to a Paperboard
Agreement dated August 20, 1992, as amended, (the "Domtar Paperboard Agreement")
with Domtar Inc., ("DI") and Domtar Gypsum Inc. ("DGI"). Georgia-Pacific
Corporation ("G-P Corp.") has entered into agreements with DI, DGI, and Domtar
Industries, Inc. (collectively, "Domtar") to purchase Domtar's North American
gypsum products business, including gypsum wallboard plants located at Camden,
NJ, Newington, NH, Grand Rapids, MI, Caledonia, ON and Winnipeg, MB (the
"Acquisition"). In order to consummate the transaction, it is contemplated that
immediately prior to the closing the name of DGI will be changed to G-P Gypsum
Corporation ("G-P Gypsum"). It is further expected that G-P Corp. will purchase
the stock of G-P Gypsum from Domtar Industries Inc. and G-P Corp.'s wholly owned
industrial subsidiary, Georgia-Pacific Canada, Inc. ("G-P Canada") will acquire
the Canadian gypsum assets and liabilities of DI. In connection with the
obligations of Caraustar, DI and DGI under the Domtar Paperboard Agreement, and
in order to provide for continuation of supply of paperboard products to certain
gypsum wallboard plants of G-P Gypsum and G-P Canada following closing of the
Acquisition, the parties agree as follows:

         1.       Effective upon the closing of the Acquisition, the provisions
and obligations of Caraustar and G-P Corp. as stated in Exhibit A (the "G-P
Paperboard Agreement") should immediately go into effect.

         2.       Effective upon closing of the Acquisition, the Domtar
Paperboard Agreement shall terminate and Caraustar shall release Domtar, G-P
Corp., and their subsidiaries and affiliates from any liability under the Domtar
Paperboard Agreement arising out of or related to the Acquisition, including,
but not limited to the obligations contained in Article 12 of the Domtar
Paperboard Agreement regarding assignment and purchase option.

         IN WITNESS WHEREOF, the parties have signed this agreement as of April
10, 1996.

CARAUSTAR INDUSTRIES, INC.                      DOMTAR INC.

By:      /s/ Thomas V. Brown                    By: [signature illegible]
         ----------------------------               ----------------------------

GEORGIA-PACIFIC CORPORATION                     DOMTAR GYPSUM INC.

By:      /s/ David R. Fleiner                   By: [signature illegible]
         ----------------------------               ----------------------------

<PAGE>   2

                                                                       Exhibit A
                              PAPERBOARD AGREEMENT

         THIS AGREEMENT, dated this 10th day of April, 1996, is by and between
CARAUSTAR INDUSTRIES, INC., a North Carolina corporation having its principal
office at 3100 Washington Street, Austell, Georgia 30001 ("Caraustar"); AND
GEORGIA-PACIFIC CORPORATION ("G-P") a Georgia corporation having its principal
office at 133 Peachtree Street, Atlanta, Georgia.

                                   BACKGROUND

         Caraustar is engaged in the manufacture and sale of certain paperboard
products through its various subsidiaries including Camden Paperboard
Corporation ("Camden"), and Georgia-Pacific is engaged in the manufacture of
gypsum wallboard incorporating paperboard at plants owned by G-P and its various
subsidiaries.

         Caraustar and G-P desire to enter into this Agreement to provide for
the purchase and sale of paperboard by Camden and its other subsidiaries to G-P
and its subsidiaries upon the terms and conditions herein set forth.

                                      TERMS

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein set forth, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Caraustar and G-P agree as follows:

         1.       Sale and Purchase. As of the Effective Date, as defined in
Section 2 below, Caraustar agrees to manufacture at Camden and to sell and
deliver to G-P and G-P agrees to purchase and accept from Caraustar, various
grades of paperboard as hereinafter specified and as set forth on Schedule A
attached hereto ("Products"), to be used by G-P in the manufacture of gypsum
board products, at the prices and upon the terms and subject to the conditions
hereinafter set forth.

         2.       Term of Agreement. Caraustar agrees that it will sell, and G-P
agrees to purchase and accept the Products from Caraustar, for a period
beginning on the Effective Date and terminating on August 20, 2005; provided,
however, that upon reaching the termination date and on each anniversary
thereafter, the term of this Agreement shall be automatically extended for one
year, unless, at least three years prior to such termination date or its
anniversary, either party has delivered to the other party written notice of its
election not to extend the term.

         The Effective Date of this Agreement is the closing date of G-P's
purchase of the stock and assets comprising the North American gypsum operations
of Domtar Inc., and its subsidiaries (including the wallboard plants listed in
Section 4) pursuant to agreements dated November 8, 1995.

         If, at any time after January 1, 1997, G-P receives a bona fide offer
from a paperboard manufacturer (unaffiliated with G-P) to provide G-P with
Products on the same terms and conditions as those in this Agreement (including
quality, volume and the duration of the

<PAGE>   3

Agreement) but at prices lower than those specified therein, G-P may so notify
Caraustar, and Caraustar, upon verification of such offer to G-P, shall then be
required to either (i) match the prices offered to G-P by the other paperboard
manufacturer, or (ii) permit G-P to terminate this Agreement as of three years
from the date of notification.

         If, at any time after January 1, 1997, Caraustar receives a bona fide
offer from a purchaser of gypsum paperboard products to purchase Products on the
same terms and conditions as those in this Agreement (including volume, quality
and duration of the Agreement) but at prices higher than those specified herein,
Caraustar may so notify G-P and G-P, upon verification of such offer to
Caraustar, shall then be required to either (i) match the prices offered to
Caraustar by the other purchaser, or (ii) permit Caraustar to terminate this
Agreement as of three years from the date of notification.

         3.       1992 Agreement.  G-P's subsidiary, G-P Gypsum Corporation.,
which was formerly known as Domtar Gypsum Inc., and Caraustar are also parties
to an agreement dated August 20, 1992 (the "1992 Agreement"). Upon the Effective
Date, the 1992 Agreement will immediately terminate.

         4.       Quantity. The quantity of the Products to be manufactured,
sold and delivered by Caraustar and to be purchased and accepted by G-P shall be
100% of the requirements for the Products (other than up to 10 tons per month
for trial runs) of G-P wallboard plants at Camden, New Jersey; Newington, New
Hampshire; 1700 Butterworth Avenue, Grand Rapids, Michigan; Caledonia, Ontario;
and Winnipeg, Manitoba.

         If at any time hereafter during the term of this Agreement G-P or any
wholly owned subsidiary operates another wallboard plant, excluding any
wallboard plant owned by G-P or any wholly owned subsidiary as of the day
immediately prior to the Effective Date that is located in that part of North
America that is east of Minneapolis, Minnesota, G-P shall offer Caraustar the
option of adding such plant to the plants listed in this Section 4. If Caraustar
exercises such option, then such wallboard plant will be added to the plants
listed in this Section 4; if Caraustar declines to exercise such option, G-P
shall be free to acquire paperboard for such plant from any supplier.

         In the event that G-P permanently ceases operations at any of the
plants listed in this Section 4, in addition to the purchase and supply
obligations for the remaining plants, G-P shall purchase and Caraustar shall
supply during the remaining term of this Agreement an additional annual quantity
of Product equal to the paperboard requirements at the affected plant during the
most recent twelve months immediately prior to ceasing production. However, in
the event that production of wallboard is resumed at the Caledonia West plant,
the quantity of Product purchased at that plant pursuant to this Agreement, may
be used to offset, on a ton-for-ton basis, any additional purchase obligation of
G-P contained in this paragraph. For purposes of this paragraph, any plant
listed in this Section 4 shall be deemed to permanently cease operations if and
when (i) G-P announces that production at that plant has permanently ceased or
temporarily ceased for a period greater than six months (excluding shut-downs
during repair or improvement projects) or (ii) the plant produces no wallboard
for a continuous period of six months for reasons unrelated to any strike or
labor dispute (excluding shut-downs during repair or improvement projects). In
the event that a plant deemed to have ceased operation resumes

                                       2
<PAGE>   4

production for a period of three months, that plant will once again be
considered as a plant listed in this Article 4 and G-P's obligation to purchase
an additional quantity of Product shall end.

         5.       Purchases Orders and Shipments.

         (a)      On or before the 20th day of each calendar month, G-P shall
deliver to Caraustar its purchase order or orders, written or verbal, specifying
the grade, quantity, shipment date or dates, the destination of the Products to
be shipped by Caraustar during the next succeeding calendar month.

         (b)      The Products will be manufactured and shipped at Caraustar's
mill at Camden, New Jersey; provided, however, Caraustar reserves the right to
ship the Products from any of its present or future paper mills. Title to
Products sold hereunder shall pass from Caraustar to G-P when placed F.O.B.
carrier at Caraustar's mill and Caraustar shall therein be released from all
responsibility and liability for any loss or damage to the Products or for any
delay in delivery, provided that the Products have been properly prepared for
shipment.

         (c)      Any provision of either party's invoices, statements, purchase
orders, acknowledgments or other forms which are inconsistent with or in
addition to the provisions of this Agreement shall be of no force or effect
unless specifically assented to in writing by the party to be charged.

         6.       Quality.

         (a)      The characteristics of each type of paper will be defined in
the specification shown in Schedule A, including methods of analysis, operating
targets and limits of acceptability. Unique specifications may be required for
individual board plants. These specifications may be changed by mutual written
agreement at any time.

         Any significant process changes in paper manufacturing which might
affect paper convertibility or finished board quality will be communicated in
writing prior to receipt of affected productions.

         Monthly summaries showing the average and capability indices of the
quality characteristics shown in Schedule A for each G-P plant will be supplied
by Caraustar. Both parties will, at their own expense, engage in regular mutual
activities for verifying test method accuracy.

         Caraustar is committed to instituting practices of statistical process
control.

         (b)      Any controversy or claim arising out of this Agreement with
respect to the quality of the Products shall be settled by arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association, and judgment upon the award rendered by the arbitrator may be
entered in any court having jurisdiction thereof. The arbitration shall be
conducted by a single arbitrator selected by mutual agreement of the parties; if
the parties fail to agree upon an arbitrator within 30 days after the initiating
party gives notice to the other party of its demand for arbitration, the
arbitrator shall be appointed in accordance with the Commercial

                                       3
<PAGE>   5

Arbitration Rules of the American Arbitration Association. In no event shall a
demand for arbitration be made after the date when institution of legal or
equitable proceedings barred on such claims would be barred by the applicable
statute of limitations.

         7.       Prices and Terms.

         (a)      Product prices for each grade are F.O.B. Caraustar's Camden
mill and shall be as listed on Camden price list attached herewith as Schedule
B. If, as provided in Section 5(b), Caraustar ships Products from a mill other
than Camden, G-P shall be required to pay only the normal freight charges for a
like shipment from Camden; provided, however, that if Caraustar ships Products
from its Lockport mill, then G-P shall pay the lesser of the actual freight
charges from Lockport or the normal freight charges from Camden.

         (b)      (i)      Adjustment Dates. The prices shown on Schedule B were
those in effect at the commencement of the 1992 Agreement and were adjusted on
January 1, 1993, January 1, 1994, and on each April 1, July 1, October l and
January 1 thereafter (such dates being hereinafter referred to as "Adjustment
Dates") and will continue to be adjusted on such Adjustment Dates in the manner
specified herein (subject to the special adjustment rules set forth in (vii)
below).

                  (ii)     Base Period. For purposes of this Agreement the "Base
         Period" is the fourth calendar quarter of 1991.

                  (iii)    Current Period.  For purposes of this Agreement the
         "Current Period" is, with respect to any Adjustment Date, the
         three-month period that immediately precedes the Adjustment Date.

                  (iv)     Adjustments. As of each Adjustment Date, the prices
         shown on Schedule B will be automatically adjusted so that the adjusted
         prices will equal the prices shown on Schedule B multiplied by the
         Price Index computed for each of the Products with respect to the
         Current Period.

                  (v)      Component Costs. The Price Index will be computed
         based on percentage changes, between the Base Period and each Current
         Period, in four Component Costs (Furnish; Labor; Electricity; and Fuel)
         of the operation of the Camden mill. The method of calculation of each
         Component Cost for each Current Period is set forth on Schedule 7(b)(v)
         attached hereto.

                  (vi)     Price Index. With respect to each Current Period, the
         Price Index for each of the Products will equal one (1) plus the sum of
         the "Index Values" of each of the Component Costs for that Current
         period. With respect to each Component Cost, the "Index Value" for a
         Current Period is equal to (a) one-half (.5) of the percentage change
         in the Component Cost for the Current Period from the Component Cost of
         the Base Period, multiplied by (b) a Weighting Factor. With respect to
         Furnish and Labor, the Weighting Factor is .3333; with respect to
         Electricity and Fuel, the Weighting Factor is .1667.

                                       4
<PAGE>   6

                  (vii)    Special Adjustment Rules. Notwithstanding the
         foregoing, in calculating the price adjustment for the January 1, 1993
         Adjustment Date, the "Index Values" for Labor, Electricity and Fuel
         were zero (0), so that the Price Index will reflect only changes in the
         Furnish Component Cost. In calculating the price adjustment for the
         first Adjustment Date after the Camden mill begins receiving steam from
         Camden Cogen pursuant to its Energy Purchase Agreement, the Index Value
         for Fuel were computed solely with respect to that part of the period
         that is after Camden has begun receiving steam from Camden Cogen. so
         that G-P thereupon gets the full benefit of Camden's fuel cost under
         that agreement.

                  (viii)   Calculation and Effectiveness. Caraustar will
         calculate the price adjustments provided for herein as soon as possible
         after each Adjustment Date. Upon final calculation of the price
         adjustment, invoices for all Products shipped since the Adjustment Date
         will be retroactively adjusted to reflect the adjusted prices. In
         connection with each adjustment Caraustar will provide G-P with a
         certificate of the plant controller of Camden as to the Component Costs
         and the calculation of the Price Index, and Caraustar will provide G-P
         with such supporting documentation as it may reasonably request.

                  (ix)     Base Period Cost Components.  The Cost Components for
         the Base Period are set forth on Schedule 7(b)(ix) attached hereto.

                  (x)      Formula. Calculations required in this Section for
         price adjustments are shown on the attached Schedule 7(b)(x).

                  (xi)     Formula Modification. With respect to the price
         adjustments provided for in Section 7(b) for the Adjustment Dates on
         July 1, 1994 and thereafter, in computing the Price Index (and the
         resulting price adjustment) for Cream Face, the amount used as the
         "Base Period" cost for "Furnish" will be the furnish costs of
         Caraustar's Buffalo Paperboard Corporation mill in Lockport, New York
         (which was the average furnish cost for Cream Face production at the
         Buffalo mill for the last four months of 1992), and the "Current
         Period" Furnish costs will be those of Caraustar's Buffalo Paperboard
         Corporation mill in Lockport, New York, for the production of Cream
         Face for the relevant "Current Period."

         (c)      Caraustar shall render its invoices covering shipments as soon
as practicable after each shipment. Terms of payment are 2%/20 days, net 30 days
after date of invoice.

         (d)      If Caraustar achieves an average basis weight on the Products
of less than 48 pounds per MSF, then the prices for the Products will be further
adjusted to give G-P the benefit of 25% of the cost savings on Furnish that
result from any reductions in basis weight below 48 pounds per MSF.

         8.       Claims. G-P shall inspect the Products upon delivery or within
a reasonable time thereafter and shall promptly notify Caraustar if any Product
results in faulty manufacturing or is rejected for failure to conform to
specifications. Products which are not rejected in such inspection and tests
will be considered as having been accepted and as conforming to

                                       5
<PAGE>   7

specifications, except as to defects which would not normally be discovered by
such inspections and tests. Caraustar may check Products which G-P so rejects.
Upon verification by Caraustar of nonconformance to specifications, the rejected
Products shall be returned at Caraustar's expense or otherwise adjusted as the
parties may then agree. Claims of latent or hidden defects will be handled
directly between Director - Gypsum Operations of G-P and Caraustar's Senior Vice
President for gypsum products. Caraustar's liability shall be limited to the
value of any nonconforming or otherwise deficient Products furnished by it
hereunder. CARAUSTAR SHALL NOT BE LIABLE FOR CONSEQUENTIAL OR SPECIAL DAMAGES,
INCLUDING WITHOUT LIMITATION LOST PROFITS.

         9.       Taxes. In addition to the prices specified in Section 7, G-P
shall pay to Caraustar an amount equal to all sales, use or value added taxes
imposed by any governmental agency or authority, whether by present or future
enactment, upon the sales, shipment, delivery, manufacture or use of the
products sold hereunder, which taxes Caraustar is or shall be required or
permitted to pay or collect.

         10.      Force Majeure. Neither Caraustar nor G-P shall be liable for
any damages, direct or consequential, arising out of any delay in delivery, or
failure to deliver or accept, any of the Products sold hereunder if such delay
or failure to deliver or accept is due to a cause beyond Caraustar's or G-P's
reasonable control, including but not limited to an act of God, explosion,
accident, fire, drought, flood, strike or other labor trouble, insurrection or
riot, the public enemy, the acts or orders of a governmental unit, or freight
embargo.

         11.      Insolvency. Should either Caraustar or G-P file a voluntary
bankruptcy petition, commit an act of bankruptcy, make a general assignment for
the benefit of creditors, have a petition for reorganization approved pursuant
to the Federal Bankruptcy Act, or in any other way substantially impair its
ability to perform hereunder, then the other party shall have the right to
immediately terminate this Agreement.

         12.      Assignment: Purchase Option. This Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their successors.
This Agreement shall not be assignable in whole or in part by either party
without the written consent of the other, which shall not be unreasonably
withheld. However, such consent shall not be required for any assignment in
whole or in part to a parent, subsidiary or affiliate of the assigning company,
provided that the assigning company remains fully liable for the obligations
arising hereunder. Caraustar may not sell Camden, or its assets, and G-P may not
sell any of its wallboard plants that are specified in Section 4 (or any other
wallboard plant subsequently covered by this Agreement pursuant to Section 4)
unless the purchaser thereof will offer to enter into an agreement for the
purchase or sale of Products on substantially the same terms as set forth
herein, for a term equal to the remaining term of this Agreement, except that in
the case of a purchaser of fewer than all of G-P's wallboard plants specified in
Section 4 the quantity will be 100% of the requirements of that wallboard plant
or plants and the price for the Products will be the prices established by
Caraustar from time to time (but not any time to exceed the prices established
on Caraustar's Sweetwater price list as it may change from time to time).

         During the term of this Agreement, Caraustar will not sell or agree to
sell Camden to any third party (unaffiliated with Caraustar) unless it first
offers to G-P the opportunity to buy

                                       6
<PAGE>   8

Camden on the same terms and conditions offered by such third party. This right
of first refusal will apply only to transactions in which a third party proposes
to buy Camden (and no other facilities) from Caraustar, and will not apply to
transactions in which a third party proposes to buy Camden together with other
facilities.

         During the term of this Agreement, G-P will not sell or agree to sell
any of its wallboard plants listed in Section 4 to any third party (unaffiliated
with G-P) unless it first offers to Caraustar the opportunity to buy such plant
or plants on the same terms and conditions offered by such third party. This
right of first refusal will apply only to transactions in which a third party
proposes to buy one or more of the wallboard plants listed in Section 4 (and no
other facilities) from G-P, and will not apply to transactions in which a third
party proposes to buy one or more of such wallboard plants together with other
G-P facilities.

         To the extent that the consideration offered by a third party in such a
transaction includes consideration other than cash, G-P or Caraustar can match
the third party's offer by offering cash in the amount of the fair market value
of such non-cash consideration.

         13.      Notices.  All orders, notices, requests or other
communications hereunder shall be in writing, addressed to Caraustar or G-P at
the following addresses:

                  Caraustar Industries, Inc.
                  P. O. Box 115
                  Austell, Georgia  30001
                  Attention:  Senior Vice President

                  Georgia-Pacific Corporation
                  133 Peachtree Street, N.E.
                  Atlanta, Georgia  30303
                  Attention:  Vice President-Gypsum Division

         The address of either party may be changed by giving notice in writing
at any time to the other party.

         14.      Insurance.

         (a)      Caraustar agrees to maintain at all relevant times during the
term of this Agreement, comprehensive general liability insurance with a minimum
combined property damage and bodily injury limit of no less than $2,000,000 per
occurrence. Caraustar shall deliver, upon request by G-P, evidence of such
insurance.

         (b)      Caraustar hereby agrees to maintain product liability
insurance with such coverage and in such amounts as are customary in the
industry.

         15.      Entire Agreement. This Agreement constitutes the entire
agreement between the parties with respect to purchase and sale of the above
specified Products for the plants listed in Section 4.

                                       7
<PAGE>   9

         16.      Governing Law.  This contract is made in and is performable in
and shall be construed and interpreted in accordance with the laws of the State
of North Carolina. The parties expressly exclude the application of the United
Nations Convention on Contracts for the International Sale of Goods.

                                       CARAUSTAR INDUSTRIES, INC.

                                       By: /s/ Bob Prillaman
                                           -------------------------------------
                                           Its:  Senior Vice President

                                       GEORGIA-PACIFIC CORPORATION

                                       By: /s/ David R. Fleiner
                                           -------------------------------------
                                           Its:  Vice President

                                       8
<PAGE>   10

                                   SCHEDULE A

                                    PRODUCTS

Cream Face
Greyback
Brown Sta-Dri
Green Sta-Dri
Green Sta-Dri 24 tensile
Grey Veneer

All paper products used in wallboard manufacturing by Domtar. Products other
than above to be defined by mutual consent.

                          Specifications are attached.

<PAGE>   11

                                                                     Page 1 of 2
                               GYPSUM BOARD PAPER
                             IVORY FACE, HARD SIZED
                                CARAUSTAR, CAMDEN

                 PLANTS:  Newington, Winnipeg

DESCRIPTION AND USE

Multi-ply waste paper boxboard, used as the face paper on gypsum board.

REQUIRED CHARACTERISTICS

This paper must have adequate physical strength properties in order that the
gypsum board meets the requirements of the applicable CSA and ASTM Standards.
The uniformity of water absorption, high water permeability, resistance to fibre
raising, blemish free uniform colour, and ability to accept all types of normal
decorative finishes are critical. This product must be statistically uniform and
evidence thereof must be provided to the customer. 85% of individual results
must fall within +/- 50% of the range between specification target and any
reject limit for each characteristic.

<TABLE>
<CAPTION>
                                                    TEST                REJECT                              REJECT
PHYSICAL PROPERTIES                                METHOD               MINIMUM            TARGET           MAXIMUM
-------------------                                ------               -------            ------           --------
<S>                                         <C>                         <C>         <C>                     <C>
1.   TENSILE STRENGTH (lb/in.)              T-404 / ASTM D 828
     @ 50% R. H. AND 23(degrees)C.

         - machine direction                                               75       to be determined (+ 3 sigma of minimum)

         - cross direction                                                 20       to be determined (+ 3 sigma of minimum)

2.   MOISTURE CONTENT (Weight %; off machine)                               5                 7                    8

3.   BASIS WEIGHT (lbs/msf)                     T-410                                        50
                                            ANY PROGRAMMED EFFORTS TO LOWER THE
                                            WEIGHT SHOULD BE COMMUNICATED TO BOARD
                                            PLANTS IN ADVANCE OF PRODUCTION.
4.   AVERAGE CALIPER (in.)                      T-411 / 7103            0.013             0.015                0.017

5.   CALIPER DEVIATION FROM AVERAGE (in.),
     any point within 4 lineal feet             T-411 / 7103           -0.002                                 +0.002

6.   COBB (3 min. @ 49(degrees)C; g/100 Cm2)    T-441 / 7116

         - face                                                          1.00              1.25                 1.50

         - core                                                          0.50              0.75                 1.00

7.   SATURATION (seconds)                               7101              150              1200

8.   POROSITY (Gurley; s/100 ml)                T-460 / 7106                                 75                  150

9.   SCUFF TEST                                     MUST CHOOSE METHOD AND FREQUENCY OF TEST

10.  PLYBOND (lb/sq. in.)                                                   ?                90                    ?

11.  BRIGHTNESS  (Photovolt,  viewed
     in machine direction)                                                 50                53                    ?

12.  SMOOTHNESS (Sheffield)                                                                 300                  380
</TABLE>

<PAGE>   12

                                                                     Page 2 of 2

                               GYPSUM BOARD PAPER
                             IVORY FACE, HARD SIZED
                                CARAUSTAR, CAMDEN

                 PLANTS:  Newington, Winnipeg

13. COLOR                  Caraustar and Domtar will agree on acceptable
                           color range. Thereafter, Caraustar will provide to
                           Domtar color matched samples that indicate the
                           extreme ranges of colour that will be sent to each
                           board plant. These will be replaced on a quarterly
                           basis to compensate for fading and handling
                           degradation.

14. FACIAL BLEMISHES       No off-colour spots larger than  1/8" diameter.
                           Maximum of six spots larger than 1/16" diameter per
                           32 square feet. Hot melt spots or other impurities
                           which surface from interior plys after conversion are
                           also included.

15. SPLICES                Splices shall be butt-joined with tape across the
                           full width of the roll, on both sides of the sheet.
                           The butted ends must align within 1/16" measured
                           across the roll. Splices and patches shall be as
                           strong as the sheet itself, unwind without sticking,
                           and shall be clearly flagged on the same side of the
                           roll as the identification stencil. No more than
                           three splices and patches shall be made in one roll.
                           No splice shall occur within two inches of the
                           outside of the roll as measured along the diameter of
                           the roll. At no time shall the average concentration
                           of splices exceed one per roll on a load by load
                           basis.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual summary report indicating average, capability index, and
total number of samples for each tested paper variable and the roll numbers of
all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>          <C>                                          <C>
Approvals:   __________________________________           (5)   ________________________________________
                  Domtar Marketing Resource                            Caraustar Marketing

             __________________________________           (4)   ________________________________________
                  Domtar Quality Resource                              Caraustar Quality Resource

             __________________________________           (3)   ________________________________________
                  Domtar Business Unit Leader

             __________________________________           (2)   _________________________________________
                  Domtar MRT Resource

             __________________________________           (1)   _________________________________________
                  Domtar Production Coordinator                        Caraustar Production Manager
</TABLE>

Numbers indicate desired order of approval from line (1) to line (5). Please
date your signatures.

<PAGE>   13

                                                                Page 1 of 2

                               GYPSUM BOARD PAPER
                      IVORY FACE, LOW POROSITY, HARD SIZED
                                CARAUSTAR, CAMDEN

                 PLANTS:  Caledonia East

DESCRIPTION AND USE

Multi-ply waste paper boxboard, used as the face paper on gypsum board.

REQUIRED CHARACTERISTICS

This paper must have adequate physical strength properties in order that the
gypsum board meets the requirements of the applicable CSA and ASTM Standards.
The uniformity of water absorption, high water permeability, resistance to fibre
raising, blemish free uniform colour, and ability to accept all types of normal
decorative finishes are critical. This product must be statistically uniform and
evidence thereof must be provided to the customer. 85% of individual results
must fall within +/- 50% of the range between specification target and any
reject limit for each characteristic.

<TABLE>
<CAPTION>
                                                  TEST                REJECT                              REJECT
PHYSICAL PROPERTIES                              METHOD               MINIMUM            TARGET           MAXIMUM
-------------------                              ------               -------            ------           --------
<S>                                       <C>                         <C>         <C>                     <C>
1.   TENSILE STRENGTH (lb/in.)            T-404 / ASTM D 828
     @ 50% R. H. AND 23(degrees)C.

         - machine direction                                             75       to be determined (+ 3 sigma of minimum)

         - cross direction                                               20       to be determined (+ 3 sigma of minimum)

2.   MOISTURE CONTENT (Weight %; off machine)                             5                 7                    8

3.   BASIS WEIGHT (lbs/msf)                   T-410                                        50
                                          ANY PROGRAMMED EFFORTS TO LOWER THE
                                          WEIGHT SHOULD BE COMMUNICATED TO BOARD
                                          PLANTS IN ADVANCE OF PRODUCTION.
4.   AVERAGE CALIPER (in.)                    T-411 / 7103            0.013             0.015                0.017

5.   CALIPER DEVIATION FROM AVERAGE (in.),
     any point within 4 lineal feet           T-411 / 7103           -0.002                                 +0.002

6.   COBB (3 min. @ 49(degrees)C; g/100 Cm2)  T-441 / 7116

         - face                                                        1.00              1.25                 1.50

         - core                                                        0.50              0.75                 1.00

7.   SATURATION (seconds)                             7101              150              1200

8.   POROSITY (Gurley; s/100 ml)              T-460 / 7106                                 75                  110

9.   SCUFF TEST                                   MUST CHOOSE METHOD AND FREQUENCY OF TEST

10.  PLYBOND (lb/sq. in.)                                                 ?                90                    ?

11.  BRIGHTNESS  (Photovolt,  viewed
     in machine direction)                                               50                53                    ?

12.  SMOOTHNESS (Sheffield)                                                               300                  380
</TABLE>

<PAGE>   14
                                                                     Page 2 of 2

                               GYPSUM BOARD PAPER
                      IVORY FACE, LOW POROSITY, HARD SIZED
                                CARAUSTAR, CAMDEN

                 PLANTS:  Caledonia East

13. COLOR                  Caraustar and Domtar will agree on acceptable color
                           range. Thereafter, Caraustar will provide to Domtar
                           color matched samples that indicate the extreme
                           ranges of colour that will be sent to each board
                           plant. These will be replaced on a quarterly basis to
                           compensate for fading and handling degradation.

14. FACIAL BLEMISHES       No off-colour spots larger than 1/8" diameter.
                           Maximum of six spots larger than 1/16" diameter per
                           32 square feet. Hot melt spots or other impurities
                           which surface from interior plys after conversion are
                           also included.

15. SPLICES                Splices shall be butt-joined with tape across the
                           full width of the roll, on both sides of the sheet.
                           The butted ends must align within 1/16" measured
                           across the roll. Splices and patches shall be as
                           strong as the sheet itself, unwind without sticking,
                           and shall be clearly flagged on the same side of the
                           roll as the identification stencil. No more than
                           three splices and patches shall be made in one roll.
                           No splice shall occur within two inches of the
                           outside of the roll as measured along the diameter of
                           the roll. At no time shall the average concentration
                           of splices exceed one per roll on a load by load
                           basis.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual summary report indicating average, capability index, and
total number of samples for each tested paper variable and the roll numbers of
all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>          <C>                                          <C>
Approvals:   __________________________________           (5)   ________________________________________
                  Domtar Marketing Resource                            Caraustar Marketing

             __________________________________           (4)   ________________________________________
                  Domtar Quality Resource                              Caraustar Quality Resource

             __________________________________           (3)   ________________________________________
                  Domtar Business Unit Leader

             __________________________________           (2)   _________________________________________
                  Domtar MRT Resource

             __________________________________           (1)   _________________________________________
                  Domtar Production Coordinator                        Caraustar Production Manager
</TABLE>

Numbers indicate desired order of approval from line (1) to line (5). Please
date your signatures.

<PAGE>   15

                                                                     Page 1 of 2
                               GYPSUM BOARD PAPER
                        IVORY FACE, HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

                 PLANTS:  Camden

DESCRIPTION AND USE

Multi-ply waste paper boxboard, used as the face paper on gypsum board.

REQUIRED CHARACTERISTICS

This paper must have adequate physical strength properties in order that the
gypsum board meets the requirements of the applicable CSA and ASTM Standards.
The uniformity of water absorption, high water permeability, resistance to fibre
raising, blemish free uniform colour, and ability to accept all types of normal
decorative finishes are critical. This product must be statistically uniform and
evidence thereof must be provided to the customer. 85% of individual results
must fall within +/- 50% of the range between specification target and any
reject limit for each characteristic.

<TABLE>
<CAPTION>
                                                  TEST                REJECT                              REJECT
PHYSICAL PROPERTIES                              METHOD               MINIMUM            TARGET           MAXIMUM
-------------------                              ------               -------            ------           --------
<S>                                       <C>                         <C>         <C>                     <C>
1.   TENSILE STRENGTH (lb/in.)            T-404 / ASTM D 828
     @ 50% R. H. AND 23(degrees)C.

         - machine direction                                             75       to be determined (+ 3 sigma of minimum)

         - cross direction                                               20       to be determined (+ 3 sigma of minimum)

2.   MOISTURE CONTENT (Weight %; off machine)                             5                 7                    8

3.   BASIS WEIGHT (lbs/msf)                   T-410                                        50
                                          ANY PROGRAMMED EFFORTS TO LOWER THE
                                          WEIGHT SHOULD BE COMMUNICATED TO BOARD
                                          PLANTS IN ADVANCE OF PRODUCTION.

4.   AVERAGE CALIPER (in.)                    T-411 / 7103            0.013             0.015                0.017

5.   CALIPER DEVIATION FROM AVERAGE (in.),
     any point within 4 lineal feet           T-411 / 7103           -0.002                                 +0.002

6.   COBB (3 min. @ 49(degrees)C;             T-441 / 7116
     g/100 Cm2)

         - face                                                        1.00              1.25                 1.50

         - core                                                        1.00              1.25                 1.50

7.   SATURATION (seconds)                             7101              150              1200

8.   POROSITY (Gurley; s/100 ml)              T-460 / 7106                                 75                  150

9.   SCUFF TEST                                   MUST CHOOSE METHOD AND FREQUENCY OF TEST

10.  PLYBOND (lb/sq. in.)                                                 ?                90                    ?

11.  BRIGHTNESS  (Photovolt,  viewed
     in machine direction)                                               50                53                    ?

12.  SMOOTHNESS (Sheffield)                                                               300                  380
</TABLE>

<PAGE>   16
                                                                     Page 2 of 2

                               GYPSUM BOARD PAPER
                        IVORY FACE, HIGH BOND LINER COBB
                               CARAUSTAR, CAMDEN

                 PLANTS: Camden

13. COLOR                  Caraustar and Domtar will agree on acceptable color
                           range. Thereafter, Caraustar will provide to Domtar
                           color matched samples that indicate the extreme
                           ranges of colour that will be sent to each board
                           plant. These will be replaced on a quarterly basis to
                           compensate for fading and handling degradation.

14. FACIAL BLEMISHES       No off-colour spots larger than 1/8" diameter.
                           Maximum of six spots larger than 1/16" diameter per
                           32 square feet. Hot melt spots or other impurities
                           which surface from interior plys after conversion are
                           also included.

15. SPLICES                Splices shall be butt-joined with tape across the
                           full width of the roll, on both sides of the sheet.
                           The butted ends must align within 1/16" measured
                           across the roll. Splices and patches shall be as
                           strong as the sheet itself, unwind without sticking,
                           and shall be clearly flagged on the same side of the
                           roll as the identification stencil. No more than
                           three splices and patches shall be made in one roll.
                           No splice shall occur within two inches of the
                           outside of the roll as measured along the diameter of
                           the roll. At no time shall the average concentration
                           of splices exceed one per roll on a load by load
                           basis.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual summary report indicating average, capability index, and
total number of samples for each tested paper variable and the roll numbers of
all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>          <C>                                          <C>
Approvals:   __________________________________           (5)   ________________________________________
                  Domtar Marketing Resource                            Caraustar Marketing

             __________________________________           (4)   ________________________________________
                  Domtar Quality Resource                              Caraustar Quality Resource

             __________________________________           (3)   ________________________________________
                  Domtar Business Unit Leader

             __________________________________           (2)   _________________________________________
                  Domtar MRT Resource

             __________________________________           (1)   _________________________________________
                  Domtar Production Coordinator                        Caraustar Production Manager
</TABLE>

Numbers indicate desired order of approval from line (1) to line (5). Please
date your signatures.

<PAGE>   17

                                                                     Page 1 of 2

                               GYPSUM BOARD PAPER
                      IVORY FACE, VERY HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

                 PLANTS:  Grand Rapids

DESCRIPTION AND USE

Multi-ply waste paper boxboard, used as the face paper on gypsum board.

REQUIRED CHARACTERISTICS

This paper must have adequate physical strength properties in order that the
gypsum board meets the requirements of the applicable CSA and ASTM Standards.
The uniformity of water absorption, high water permeability, resistance to fibre
raising, blemish free uniform colour, and ability to accept all types of normal
decorative finishes are critical. Plants using this paper have cold stucco
slurry which is less effective at wetting the paper. This product must be
statistically uniform and evidence thereof must be provided to the customer. 85%
of individual results must fall within +/- 50% of the range between
specification target and any reject limit for each characteristic.

<TABLE>
<CAPTION>
                                                      TEST                REJECT                              REJECT
PHYSICAL PROPERTIES                                  METHOD               MINIMUM            TARGET           MAXIMUM
-------------------                                  ------               -------            ------           --------
<S>                                           <C>                         <C>         <C>                     <C>
1.   TENSILE STRENGTH (lb/in.)                T-404 / ASTM D 828
     @ 50% R. H. AND 23(degrees)C.

         - machine direction                                                 75       to be determined (+ 3 sigma of minimum)

         - cross direction                                                   20       to be determined (+ 3 sigma of minimum)

2.   MOISTURE CONTENT (Weight %; off machine)                                 5                 7                    8

3.   BASIS WEIGHT (lbs/msf)                       T-410                                        50
                                              ANY PROGRAMMED EFFORTS TO LOWER THE
                                              WEIGHT SHOULD BE COMMUNICATED TO BOARD
                                              PLANTS IN ADVANCE OF PRODUCTION.

4.   AVERAGE CALIPER (in.)                        T-411 / 7103            0.013             0.015                0.017

5.   CALIPER DEVIATION FROM AVERAGE (in.),
     any point within 4 lineal feet               T-411 / 7103           -0.002                                 +0.002

6.   COBB (3 min. @ 49(degrees)C; g/100 Cm2)      T-441 / 7116

         - face                                                            1.00              1.25                 1.50

         - core                                                            1.00              1.25                 1.50

7.   SATURATION (seconds)                                 7101              150              1200

8.   POROSITY (Gurley; s/100 ml)                  T-460 / 7106                                 75                  150

9.   SCUFF TEST                                       MUST CHOOSE METHOD AND FREQUENCY OF TEST

10.  PLYBOND (lb/sq. in.)                                                     ?                90                    ?

11.  BRIGHTNESS  (Photovolt,  viewed
     in machine direction)                                                   50                53                    ?

12.  SMOOTHNESS (Sheffield)                                                                   300                  380
</TABLE>

<PAGE>   18

                                                                     Page 2 of 2
                               GYPSUM BOARD PAPER
                      IVORY FACE, VERY HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

                 PLANTS:  Grand Rapids

13. COLOR                  Caraustar and Domtar will agree on acceptable
                           color range. Thereafter, Caraustar will provide to
                           Domtar color matched samples that indicate the
                           extreme ranges of colour that will be sent to each
                           board plant. These will be replaced on a quarterly
                           basis to compensate for fading and handling
                           degradation.

14. FACIAL BLEMISHES       No off-colour spots larger than 1/8" diameter.
                           Maximum of six spots larger than 1/16" diameter per
                           32 square feet. Hot melt spots or other impurities
                           which surface from interior plys after conversion are
                           also included.

15. SPLICES                Splices shall be butt-joined with tape across the
                           full width of the roll, on both sides of the sheet.
                           The butted ends must align within 1/16" measured
                           across the roll. Splices and patches shall be as
                           strong as the sheet itself, unwind without sticking,
                           and shall be clearly flagged on the same side of the
                           roll as the identification stencil. No more than
                           three splices and patches shall be made in one roll.
                           No splice shall occur within two inches of the
                           outside of the roll as measured along the diameter of
                           the roll. At no time shall the average concentration
                           of splices exceed one per roll on a load by load
                           basis.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual summary report indicating average, capability index, and
total number of samples for each tested paper variable and the roll numbers of
all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>          <C>                                          <C>
Approvals:   __________________________________           (5)   ________________________________________
                  Domtar Marketing Resource                            Caraustar Marketing

             __________________________________           (4)   ________________________________________
                  Domtar Quality Resource                              Caraustar Quality Resource

             __________________________________           (3)   ________________________________________
                  Domtar Business Unit Leader

             __________________________________           (2)   _________________________________________
                  Domtar MRT Resource

             __________________________________           (1)   _________________________________________
                  Domtar Production Coordinator                        Caraustar Production Manager
</TABLE>

Numbers indicate desired order of approval from line (1) to line (5). Please
date your signatures.

<PAGE>   19

                                                                     Page 1 of 2

                               GYPSUM BOARD PAPER
                         GREY BACK, HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

                 PLANTS:  Newington, Camden, Caledonia East, Savannah

DESCRIPTION AND USE

Multi-ply waste paper boxboard, used as the back paper on gypsum board.

REQUIRED CHARACTERISTICS

This paper must have a controlled coefficient of friction and adequate physical
strength properties in order that the gypsum board meets the requirements of the
applicable CSA and ASTM Standards. The uniformity of water absorption, higher
bond liner water absorption than normal, and high water permeability are
critical to conversion. This product must be statistically uniform and evidence
thereof must be provided to the customer. Where a given Domtar gypsum board
plant is to receive greyback from more than one Caraustar paper mill, the
multiple sources should have average values of the variables listed below that
are within one standard deviation of the normal supply. 85% of individual
results must fall within +/- 50% of the range between the specification target
and any reject limit for each characteristic.

<TABLE>
<CAPTION>
                                                           TEST                REJECT                              REJECT
PHYSICAL PROPERTIES                                       METHOD               MINIMUM            TARGET           MAXIMUM
-------------------                                       ------               -------            ------           --------
<S>                                                <C>                         <C>         <C>                     <C>
1.   TENSILE STRENGTH (lb/in.)                     T-404 / ASTM D 828
     @ 50% R. H. AND 23 degrees C.

         - machine direction                                                      75       to be determined (+ 3 sigma of minimum)

         - cross direction                                                        20       to be determined (+ 3 sigma of minimum)

2.   MOISTURE CONTENT (Weight %; off machine)                                      5                 7                    8

3.   BASIS WEIGHT (lbs/msf)                        T-410                                            50
                                           ANY PROGRAMMED EFFORTS TO LOWER THE BASIS
                                           WEIGHT SHOULD BE COMMUNICATED TO BOARD
                                           PLANTS IN ADVANCE OF PRODUCTION.

4.   AVERAGE CALIPER (in.)                         T-411 / 7103                 0.012             0.015                0.017

5.   CALIPER DEVIATION FROM AVERAGE (in.),
     any point within 4 lineal feet                T-411 / 7103                -0.002                                 +0.002

6.   COBB (3 min. @ 49 degrees C; g/100 Cm2)       T-441 / 7116

         - face                                                                  0.50              0.75                 1.00

         - core                                                                  1.00              1.25                 1.50

7.   SATURATION (seconds)                                  7101                   150              1200

8.   POROSITY (Gurley; s/100 ml)                   T-460 / 7106                                      55                  100

9.   SLIDING FRICTION TEST                             MUST CHOOSE METHOD AND FREQUENCY

10.  PLY BOND (lb/sq. in.)                                                          ?                90                    ?
</TABLE>

<PAGE>   20

                                                                     Page 2 of 2

                               GYPSUM BOARD PAPER
                         GREY BACK, HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

                 PLANTS:  Newington, Camden, Caledonia East, Savannah

11. SPLICES                Splices shall be butt-joined with tape across the
                           full width of the roll, on both sides of the sheet.
                           The butted ends must align within 1/16" measured
                           across the roll. Splices and patches shall be as
                           strong as the sheet itself, unwind without sticking,
                           and shall be clearly flagged on the same side of the
                           roll as the identification stencil. No more than
                           three splices and patches shall be made in one roll.
                           No splice shall occur within two inches of the
                           outside of the roll as measured along the diameter of
                           the roll. At no time shall the average concentration
                           of splices exceed one per roll on a load by load
                           basis.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual quality summary report indicating average, capability index,
and total number of samples for each tested paper variable and the roll numbers
of all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>          <C>                                          <C>
Approvals:   __________________________________           (5)   ________________________________________
                  Domtar Marketing Resource                            Caraustar Marketing

             __________________________________           (4)   ________________________________________
                  Domtar Quality Resource                              Caraustar Quality Resource

             __________________________________           (3)   ________________________________________
                  Domtar Business Unit Leader

             __________________________________           (2)   _________________________________________
                  Domtar MRT Resource

             __________________________________           (1)   _________________________________________
                  Domtar Production Coordinator                        Caraustar Production Manager
</TABLE>

Numbers indicate desired order of approval from line (1) to line (5). Please
date your signatures.

<PAGE>   21
                                                                     Page 1 of 2

                               GYPSUM BOARD PAPER
                       GREYBACK, VERY HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

           PLANTS:  Grand Rapids, Winnipeg

DESCRIPTION AND USE

Multi-ply waste paper boxboard, used as the back paper on gypsum board.

REQUIRED CHARACTERISTICS

This paper must have a controlled coefficient of friction and adequate physical
strength properties in order that the gypsum board meets the requirements of the
applicable CSA and ASTM Standards. The uniformity of water absorption, higher
bond liner water absorption than normal, and high water permeability are
critical to conversion. Plants using this paper have cold stucco slurry which is
less effective at wetting the paper. This product must be statistically uniform
and evidence thereof must be provided to the customer. Where a given Domtar
gypsum board plant is to receive greyback from more than one Caraustar paper
mill, the multiple sources should have average values of the variables listed
below that are within one standard deviation of the normal supply. 85% of
individual results must fall within +/- 50% of the range between the
specification target and any reject limit for each characteristic.

<TABLE>
<CAPTION>
                                                      TEST             REJECT                              REJECT
 PHYSICAL PROPERTIES                                 METHOD            MINIMUM            TARGET           MAXIMUM
-------------------                                  ------            -------            ------           -------
<S>                                           <C>                      <C>                <C>              <C>
1.   TENSILE STRENGTH (lb/in.)
     @ 50% R.H. AND 23(degrees)C.             T-404 / ASTM D 828

     - machine direction                                                      75           to be determined (+ 3 sigma of minimum)

     - cross direction                                                        20           to be determined (+ 3 sigma of minimum)
2.   MOISTURE CONTENT (Weight %; off machine)                                  5                 7               8
3.   BASIS WEIGHT (lb/msf)                    T-410                                             50
                                                     ANY PROGRAMMED EFFORTS TO LOWER BASIS WEIGHT SHOULD BE
                                                     COMMUNICATED TO BOARD PLANTS IN ADVANCE OF PRODUCTION.
4.   AVERAGE CALIPER (in.)                    T-411 / 7103                 0.012             0.015           0.018
5.   CALIPER DEVIATION FROM AVERAGE (in.),
     any point within 4 lineal feet           T-411 / 7103                -0.002                            +0.002
6.   COBB (3 min. @ 49(degrees)C; g/100 Cm(2) T-441 / 7116

     - face                                                                 0.50              0.75            1.00

     - core                                                                 1.40              1.60            2.00
7.   SATURATION (seconds)                             7101                   150              1200
8.   POROSITY (Gurley; s/100 ml)              T-460 / 7106                                      55             120
9.   SLIDING FRICTION TEST
                                                                   MUST CHOOSE METHOD AND FREQUENCY
10.  PLY BOND (lb/sq. in.)                                                     ?                90               ?
</TABLE>

<PAGE>   22

                                                                     Page 2 of 2

                               GYPSUM BOARD PAPER
                       GREYBACK, VERY HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

           PLANTS:  Grand Rapids, Winnipeg

11. SPLICES   Splices shall be butt-joined with tape across the full width of
              the roll, on both sides of the sheet. The butted ends must align
              within 1/16" measured across the roll. Splices and patches shall
              be as strong as the sheet itself, unwind without sticking, and
              shall be clearly flagged on the same side of the roll as the
              identification stencil. No more than three splices and patches
              shall be made in one roll. No splice shall occur within two inches
              of the outside of the roll as measured along the diameter of the
              roll. At no time shall the average concentration of splices exceed
              one per roll on a load by load basis.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual quality summary report indicating average, capability index,
and total number of samples for each tested paper variable and the roll numbers
of all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>                                                       <C>
Approvals:                                                (5)
             --------------------------------------             ----------------------------------------
                    Domtar Marketing Resource                             Caraustar Marketing

                                                          (4)
             --------------------------------------             ----------------------------------------
                    Domtar Quality Resource                               Caraustar Quality Resource

                                                          (3)
             --------------------------------------             ----------------------------------------
                    Domtar Business Unit Leader

                                                          (2)
             --------------------------------------             ----------------------------------------
                    Domtar MRT Resource

                                                          (1)
             --------------------------------------             ----------------------------------------
                    Domtar Production Coordinator                         Caraustar Production Manager
</TABLE>

Numbers indicate desired order of approval from line (1) to line (5). Please
date your signatures.

<PAGE>   23

                                                                     Page 1 of 2

                               GYPSUM BOARD PAPER
                                GREEN SHAFTLINER
                                CARAUSTAR, CAMDEN

               PLANTS:  Newington

DESCRIPTION AND USE

Green multi-ply waste paper boxboard, used as the face and back paper on
shaftliner gypsum board.

REQUIRED CHARACTERISTICS

This paper must have adequate physical strength properties in order that the
gypsum board meets the requirements of the applicable CSA, ASTM, and fire code
rating standards. The uniformity of water absorption from the core side, and
high water permeability are critical to conversion. This product must be
statistically uniform and evidence thereof must be provided to the customer. 85%
of individual results must fall within +/- 50% of the range between the
specification target and any reject limit for each characteristic.

<TABLE>
<CAPTION>
                                                  TEST                REJECT                               REJECT
PHYSICAL PROPERTIES                              METHOD               MINIMUM              TARGET          MAXIMUM
-------------------                              ------               -------              ------          -------
<S>                                             <C>                   <C>            <C>                   <C>
1.  TENSILE STRENGTH (lb/in.)                   T-404 / ASTM D 828
    @ 50% R. H. AND 23 degrees C.

    - machine direction                                                    77        to be determined (+ 3 sigma of minimum)

    - cross direction                                                      23        to be determined (+ 3 sigma of minimum)
2.  MOISTURE CONTENT (Weight %; off machine)                                5                7                 8
3.  BASIS WEIGHT (lbs/msf)                      T-410                                       54
                                                ANY PROGRAMMED EFFORTS TO LOWER BASIS WEIGHT SHOULD BE
                                                COMMUNICATED TO BOARD PLANTS IN ADVANCE OF PRODUCTION.
4.  AVERAGE CALIPER (in.)                       T-411 / 7103            0.015            0.017             0.019
5.  CALIPER DEVIATION FROM AVERAGE (in.),
    any point within 4 lineal feet              T-411 / 7103           -0.002                             +0.002

6.  COBB (3 min. @ 49 degrees C; g/100 Cm(2)    T-441 / 7116

    - face                                                                                0.60              0.90

    - core                                                               0.50             0.75              1.00
7.  SATURATION (seconds)                                7101              150             1200
8.  POROSITY (Gurley; s/100 ml)                 T-460 / 7106                                70               110
9.  PLYBOND (lb/sq. in.)                                                    ?               90                 ?
</TABLE>

<PAGE>   24

                                                                     Page 2 of 2

                               GYPSUM BOARD PAPER
                                GREEN SHAFTLINER
                                CARAUSTAR, CAMDEN

               PLANTS:  Newington

10. COLOUR    Caraustar to specify dye manufacturer product code and
              concentration in lbs/msf. Thereafter, Caraustar will provide to
              Domtar color matched samples that indicate the extreme ranges of
              color that will be sent to each board plant. These will be
              replaced on a quarterly basis to compensate for fading and
              handling degradation.

11. SPLICES   Splices shall be butt-joined with tape across the full width of
              the roll, on both sides of the sheet. The butted ends must align
              within 1/16" measured across the roll. Splices and patches shall
              be as strong as the sheet itself, unwind without sticking, and
              shall be clearly flagged on the same side of the roll as the
              identification stencil. No more than three splices and patches
              shall be made in one roll. At no time shall the average
              concentration of splices exceed one per roll on a load by load
              basis.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual quality summary report indicating average, capability index,
total number of samples for each tested paper variable and the roll numbers of
all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>                                                       <C>
Approvals:                                                (5)
             --------------------------------------             ----------------------------------------
                    Domtar Marketing Resource                             Caraustar Marketing

                                                          (4)
             --------------------------------------             ----------------------------------------
                    Domtar Quality Resource                               Caraustar Quality Resource

                                                          (3)
             --------------------------------------             ----------------------------------------
                    Domtar Business Unit Leader

                                                          (2)
             --------------------------------------             ----------------------------------------
                    Domtar MRT Resource

                                                          (1)
             --------------------------------------             ----------------------------------------
                    Domtar Production Coordinator                         Caraustar Production Manager
</TABLE>

Numbers indicate desired order of approval from line (1) to line (5). Please
date your signatures.

<PAGE>   25

                                                                     Page 1 of 2

                               GYPSUM BOARD PAPER
                                   BLUE VENEER
                                CARAUSTAR, CAMDEN

         PLANTS:  Grand Rapids, Newington

DESCRIPTION AND USE

Blue multi-ply waste paper boxboard, used as the face paper on gypsum base for
veneer plaster.

REQUIRED CHARACTERISTICS

This paper must have uniform high water absorption (suction) through the face
and adequate physical strength properties in order that the gypsum board meets
the requirements of the applicable CSA and ASTM Standards. The uniformity of
water absorption from the core side, and high water permeability are critical to
conversion. This product must be statistically uniform and evidence thereof must
be provided to the customer. 85% of individual results must fall within +/- 50%
of the range between the specification target and any reject limit for each
characteristic.

<TABLE>
<CAPTION>
                                                 TEST                  REJECT                              REJECT
PHYSICAL PROPERTIES                             METHOD                 MINIMUM            TARGET           MAXIMUM
-------------------                             ------                 -------            ------           -------
<S>                                            <C>                     <C>        <C>                      <C>
1.  TENSILE STRENGTH (lb/in.)                  T-404 / ASTM D 828
    @ 50% R.H. AND 23 degrees C.

    - machine direction                                                  75       Target to be determined (+ 3 sigma of min.)

    - cross direction                                                    20       Target to be determined (+ 3 sigma of min.)

2.  MOISTURE CONTENT (Weight %; off machine)
                                                                          5                 7                    8
3.  BASIS WEIGHT (lbs/msf)
                                               T-410                                       60
                                               ANY PROGRAMMED EFFORTS TO LOWER BASIS WEIGHT SHOULD BE
                                               COMMUNICATED TO BOARD PLANTS IN ADVANCE OF PRODUCTION.
4.  AVERAGE CALIPER (in.)                      T-411 / 7103           0.015             0.018                0.021
5.  CALIPER DEVIATION FROM AVERAGE (in.),
    any point within 4 lineal feet             T-411 / 7103          -0.002                                 +0.002
6.  COBB (3 min. @ 49 degrees C; g/100 Cm(2)   T-441 / 7116

    - face                                                             4.00              4.50                 5.50

    - core                                                             0.50              0.75                 1.00
7.  SATURATION (seconds)                               7101             100              1200
8.  POROSITY (Gurley; s/100 ml)                T-460 / 7106                                65                  125
9.  PLYBOND (lb/sq. in.)                                                                   90                    ?
</TABLE>

<PAGE>   26

                                                                     Page 2 of 2

                               GYPSUM BOARD PAPER
                                   BLUE VENEER
                                CARAUSTAR, CAMDEN

         PLANTS:  Grand Rapids, Newington

10. COLOUR    Caraustar to specify dye manufacturer product code and
              concentration in lbs/msf. Caraustar will make a new color standard
              each run. Caraustar will normally run this product once/month (in
              every second cycle after ivory).

11. SPLICES   Splices shall be butt-joined with tape across the full width of
              the roll, on both sides of the sheet. Edges of the paper are to be
              carefully lined up on each side of the splice, so that the edges
              are not off-set more than 1/16". Splices and patches shall be as
              strong as the sheet itself, unwind without sticking, and shall be
              clearly flagged on the same side of the roll as the identification
              stencil. No more than three splices or patches shall be made in
              one roll, and no splice shall occur within two inches of the
              outside of the roll, as measured along the diameter of the roll.
              At no time shall the average concentration of splices exceed one
              per roll on a load by load basis.

12. WRAPPING  All veneer rolls will be stretch wrapped along the curve of the
              roll.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry. On a
monthly basis Caraustar will forward to each Domtar gypsum board plant an
individual quality summary report indicating average, capability index, and
total number of samples for each tested paper variable and the roll numbers of
all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>                                                       <C>
Approvals:                                                (5)
             --------------------------------------             ----------------------------------------
                    Domtar Marketing Resource                             Caraustar Marketing

                                                          (4)
             --------------------------------------             ----------------------------------------
                    Domtar Quality Resource                               Caraustar Quality Resource

                                                          (3)
             --------------------------------------             ----------------------------------------
                    Domtar Business Unit Leader

                                                          (2)
             --------------------------------------             ----------------------------------------
                    Domtar MRT Resource

                                                          (1)
             --------------------------------------             ----------------------------------------
                    Domtar Production Coordinator                         Caraustar Production Manager
</TABLE>

Numbers indicate desired order of approval from line (1) to line (5). Please
date your signatures.

<PAGE>   27

                                                                     Page 1 of 2

                               GYPSUM BOARD PAPER
                   BROWN SHEATHING, VERY HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

             PLANTS:  Grand Rapids

DESCRIPTION AND USE

Brown multi-ply waste paper boxboard, used as the back paper on green interior
grade moisture resistant gypsum board and both sides of gypsum sheathing boards.

REQUIRED CHARACTERISTICS

This paper must have minimal water absorption through the face and adequate
physical strength properties in order that the gypsum board meets the
requirements of the applicable CSA and ASTM Standards. The uniformity of water
absorption from the core side, and high water permeability are critical to
conversion. Plants using this paper have cold stucco slurry which is less
effective at wetting the paper. This product must be statistically uniform and
evidence thereof must be provided to the customer. 85% of results must fall
within +/- 50% of the range between the specification target and any reject
limit for each individual characteristic.

<TABLE>
<CAPTION>
                                                 TEST             REJECT                             REJECT
PHYSICAL PROPERTIES                             METHOD           MINIMUM            TARGET           MAXIMUM
-------------------                             ------           -------            ------           -------
<S>                                       <C>                    <C>         <C>                   <C>
1.  TENSILE STRENGTH (lb/in.)             T-404 / ASTM D 828
    @ 50% R. H. AND 23 degrees C.

    - machine direction                                             75       Target to be determined (+ 3 sigma of min.)

    - cross direction                                               20       Target to be determined (+ 3 sigma of min.)
2.  MOISTURE CONTENT (Weight %; off machine)                         5                7                 8
3.  BASIS WEIGHT (lbs/msf)                T-410                                      50
                                          ANY PROGRAMMED EFFORTS TO LOWER BASIS WEIGHT SHOULD BE
                                          COMMUNICATED TO BOARD PLANTS IN ADVANCE OF PRODUCTION.
4.  AVERAGE CALIPER (in.)                 T-411 / 7103           0.012                              0.018
5.  CALIPER DEVIATION FROM AVERAGE (in.),
    any point within 4 lineal feet        T-411 / 7103          -0.002                             +0.002
6.  COBB (3 min. @ 49 degreesC;           T-441 / 7116
    g/100 Cm(2)

    - face                                                                         0.35              0.60

    - core                                                        1.40             1.60              2.00
7.  SATURATION (seconds)                          7101             150             1200
8.  POROSITY (Gurley; s/100 ml)           T-460 / 7106                               55               110
9.  PLYBOND (lb/sq. in.)                                                             90
</TABLE>

<PAGE>   28
                                                                     Page 2 of 2

                               GYPSUM BOARD PAPER
                   BROWN SHEATHING, VERY HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

             PLANTS:  Grand Rapids

10. COLOUR               Caraustar to use Michleman Domtar Brown or equivalent.
                         This is a medium tan brown. Adequate reflectance is
                         essential for proper operation of photo eyes in board
                         handling equipment.

11. SLIDING FRICTION     A METHOD AND FREQUENCY OF TESTING NEEDS TO BE
                         DETERMINED

12. SPLICES              Splices shall be butt-joined with tape across the full
                         width of the roll, on both sides of the sheet. Edges of
                         the paper are to be carefully lined up on each side of
                         the splice, so that the edges are not off-set more than
                         1/16". Splices and patches shall be as strong as the
                         sheet itself, unwind without sticking, and shall be
                         clearly flagged on the same side of the roll as the
                         identification stencil. No more than three splices or
                         patches shall be made in one roll, and no splice shall
                         occur within 2 inches of the outside of the roll, as
                         measured along the diameter of the roll. At no time
                         shall the average concentration of splices exceed one
                         per roll on a load by load basis.

         NOTE:  THIS PRODUCT IS THE VERY HIGH BOND LINER COBB GREYBACK BASE
                SHEET WITH SURFACE DYE AND SIZE COATING AT THE STACK.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual quality summary report indicating average, capability index,
and total number of samples for each tested paper variable and the roll numbers
of all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>                                                       <C>
Approvals:                                                (5)
             --------------------------------------             ----------------------------------------
                    Domtar Marketing Resource                             Caraustar Marketing

                                                          (4)
             --------------------------------------             ----------------------------------------
                    Domtar Quality Resource                               Caraustar Quality Resource

                                                          (3)
             --------------------------------------             ----------------------------------------
                    Domtar Business Unit Leader

                                                          (2)
             --------------------------------------             ----------------------------------------
                    Domtar MRT Resource

                                                          (1)
             --------------------------------------             ----------------------------------------
                    Domtar Production Coordinator                         Caraustar Production Manager
</TABLE>

Numbers indicate desired order of approval from line (1) to line (5). Please
date your signatures.

<PAGE>   29

                                                                     Page 1 of 2
                               GYPSUM BOARD PAPER
                                 BROWN SHEATHING
                                CARAUSTAR, CAMDEN

             PLANTS:      Newington, Camden, Winnipeg,
                          Caledonia East and Savannah

DESCRIPTION AND USE

Brown multi-ply waste paper boxboard, used as the back paper on green interior
grade moisture resistant gypsum board and both sides of gypsum sheathing boards.

REQUIRED CHARACTERISTICS

This paper must have minimal water absorption through the face and adequate
physical strength properties in order that the gypsum board meets the
requirements of the applicable CSA and ASTM Standards. The uniformity of water
absorption from the core side, and high water permeability are critical to
conversion. This product must be statistically uniform and evidence thereof must
be provided to the customer. 85% of results must fall within +/- 50% of the
range between the specification target and any reject limit for each
characteristic.

<TABLE>
<CAPTION>
                                              TEST              REJECT                              REJECT
PHYSICAL PROPERTIES                          METHOD             MINIMUM             TARGET          MAXIMUM
-------------------                          ------             -------             ------          -------
<S>                               <C>                           <C>             <C>                 <C>
1. TENSILE STRENGTH lb/in                T-404 / ASTM D 828
   @ 50% R. H. AND 23 degrees C.

   - machine direction                                              75          Target to be determined (+ 3 sigma of min.)
   - cross direction                                                20          Target to be determined (+ 3 sigma of min.)
2. MOISTURE CONTENT (Weight %; off machine)                          5                  7                8
3. BASIS WEIGHT (lb/asf)                 T-410                                         50
                                  ANY PROGRAMMED EFFORTS TO LOWER BASIS WEIGHT SHOULD BE
                                  COMMUNICATED TO BOARD PLANTS IN ADVANCE OF PRODUCTION.
4. AVERAGE CALIPER (in.)                 T-411 / 7103            0.012                               0.018
5. CALIPER DEVIATION FROM AVERAGE        T-411 / 7103           -0.002                              +0.002
   (in.), any point within 4
   lineal feet
6. COBB (3 min. @ 49 degrees C;          T-441 / 7116
   g/100 cm(2)
   - face                                                                            0.35             0.60
   - core                                                         1.00               1.25             1.50
7. SATURATION (s)                                7101              150               1200
8. POROSITY (Gurley; s/100 ml)           T-460 / 7106                                  55              110
9. PLYBOND (lb/sq. in)                                                                 90
</TABLE>

<PAGE>   30
                                                                     Page 2 of 2
                               GYPSUM BOARD PAPER
                                 BROWN SHEATHING
                                CARAUSTAR, CAMDEN

             PLANTS:      Newington, Camden, Winnipeg,
                          Caledonia East and Savannah

10. COLOUR               Caraustar to use Michleman Domtar Brown or equivalent
                         for Camden, Caledonia, and Winnipeg. This is a medium
                         tan brown. Adequate reflectance is essential for proper
                         operation of photo eyes in board handling equipment.
                         Newington and Savannah are to receive a much darker dye
                         which was traditionally supplied by Sweetwater Austell.
                         Camden mill should specify this colour.

11. SLIDING              FRICTION A METHOD AND FREQUENCY OF TESTING NEEDS TO BE
                         DETERMINED

12. SPLICES              Splices shall be butt-joined with tape across the full
                         width of the roll, on both sides of the sheet. Edges of
                         the paper are to be carefully lined/up on each side of
                         the splice, so that the edges are not off-set more than
                         1/16". Splices and patches shall be as strong as the
                         sheet itself, unwind without sticking, and shall be
                         clearly flagged on the same side of the roll as the
                         identification stencil. No more than three splices or
                         patches shall be made in one roll, and no splice shall
                         occur within 2 inches of the outside of the roll, as
                         measured along the diameter of the roll. At no time
                         shall the average concentration of the splices exceed
                         one per roll on a load by load basis.

          NOTE: THIS PRODUCT IS THE HIGH BOND LINER COBB GREYBACK BASE SHEET
                WITH SURFACE DYE AND SIZE COATING AT THE STACK.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual quality summary report indicating average, capability index,
and total number of samples for each tested paper variable and the roll numbers
of all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>                                                       <C>
Approvals:                                                (5)
             --------------------------------------             ----------------------------------------
                    Domtar Marketing Resource                             Caraustar Marketing

                                                          (4)
             --------------------------------------             ----------------------------------------
                    Domtar Quality Resource                               Caraustar Quality Resource

                                                          (3)
             --------------------------------------             ----------------------------------------
                    Domtar Business Unit Leader

                                                          (2)
             --------------------------------------             ----------------------------------------
                    Domtar MRT Resource

                                                          (1)
             --------------------------------------             ----------------------------------------
                    Domtar Production Coordinator                         Caraustar Production Manager
</TABLE>

Numbers indicate the desired order of approval from (1) to (5). Please date your
signatures.

<PAGE>   31

                                                                     Page 1 of 2
                               GYPSUM BOARD PAPER
                              GREEN MOISTURE-GUARD
                                CARAUSTAR, CAMDEN

               PLANTS:      Newington, Camden, Winnipeg,
                            Caledonia East

DESCRIPTION AND USE

Green multi-ply waste paper boxboard, used as the face paper on moisture
resistant gypsum board.

REQUIRED CHARACTERISTICS

This paper must have minimal water absorption through the face and adequate
physical strength properties in order that the gypsum board meets the
requirements of the applicable CSA and ASTM Standards. The uniformity of water
absorption from the core side, and high water permeability are critical to
conversion. This product must be statistically uniform and evidence thereof must
be provided to the customer. 85% of individual results must fall within +/- 50%
of the range between the specification target and any reject limit for each
characteristic.

<TABLE>
<CAPTION>
                                                       TEST             REJECT                         REJECT
PHYSICAL PROPERTIES                                   METHOD            MINIMUM         TARGET         MAXIMUM
-------------------                                   ------            -------         ------         -------
<S>                                         <C>                       <C>          <C>                 <C>
1. TENSILE STRENGTH lb/in                       T-404 / ASTM D 828
   @ 50% R. H. AND 23 degrees C.
   - machine direction                                                    75       Target to be determined ( + 3 sigma of min.)
   - cross direction                                                      20       Target to be determined ( + 3 sigma of min.)
2. MOISTURE CONTENT (Weight %; off machine)                                5                 7               8
3. BASIS WEIGHT (lbs/asf)                       T-410                                       52
                                            ANY PROGRAMMED EFFORTS TO LOWER BASIS WEIGHT SHOULD BE
                                            COMMUNICATED TO BOARD PLANTS IN ADVANCE OF PRODUCTION.
4. AVERAGE CALIPER (in.)                        T-411 / 7103           0.013             0.015           0.017
5. CALIPER DEVIATION FROM AVERAGE               T-411 / 7103          -0.002                            +0.002
   (in.), any point within 4
   lineal feet
6. COBB (3 min. @49(degree)C; g/100 cs(2)       T-441 / 7116
   - face                                                               0.40              0.60            0.90
   - core                                                               1.00              1.25            1.50
7. SATURATION (seconds)                                 7101             150              1200
8. POROSITY (Gurley; s/100 ml)                  T-460 / 7106                                55             110
9. PLYBOND (lb/sq in)                                                                       90               ?
</TABLE>

10. COLOUR               Caraustar to specify dye manufacturer product code and
                         concentration in lbs/msf. Thereafter, Caraustar will
                         provide to Domtar color matched samples that indicate
                         the extreme ranges of color that will be sent to each
                         board plant. These will be replaced on a quarterly
                         basis to compensate for fading and handling
                         degradation.

<PAGE>   32

                                                                     Page 2 of 2
                               GYPSUM BOARD PAPER
                              GREEN MOISTURE-GUARD
                                CARAUSTAR, CAMDEN

               PLANTS:      Newington, Camden, Winnipeg,
                            Caledonia East

11. FACIAL BLEMISHES     No off-colour spots larger than 1/8" diameter. Maximum
                         of six spots larger than 1/16th diameter per 32 square
                         feet. Hot melt spots or other impurities which surface
                         from interior plys after conversion are also included.

12. SPLICES              Splices shall be butt-joined with tape across the full
                         width of the roll, on both sides of the sheet. Edges of
                         the paper are to be carefully lined up on each side of
                         the splice, so that the edges are not off-set more than
                         1/16 ". Splices and patches shall be as strong as the
                         sheet itself, unwind without sticking, and shall be
                         clearly flagged on the same side of the roll as the
                         identification stencil. No more than three splices or
                         patches shall be made in one roll, and no splice shall
                         occur within two inches of the outside of the roll, as
                         measured along the diameter of the roll. At no time
                         shall the average concentration of splices exceed one
                         per roll on a load by load basis.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual quality summary report indicating average, capability index,
total number of samples for each tested paper variable and the roll numbers of
all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>                                                       <C>
Approvals:                                                (5)
             --------------------------------------             ----------------------------------------
                    Domtar Marketing Resource                             Caraustar Marketing

                                                          (4)
             --------------------------------------             ----------------------------------------
                    Domtar Quality Resource                               Caraustar Quality Resource

                                                          (3)
             --------------------------------------             ----------------------------------------
                    Domtar Business Unit Leader

                                                          (2)
             --------------------------------------             ----------------------------------------
                    Domtar MRT Resource

                                                          (1)
             --------------------------------------             ----------------------------------------
                    Domtar Production Coordinator                         Caraustar Production Manager
</TABLE>

Numbers indicate the desired order of approval from (1) to (5). Please date your
signatures.

<PAGE>   33

                                                                    Page 1 of 2

                               GYPSUM BOARD PAPER
                 GREEN MOISTURE-GUARD, VERY HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

          PLANTS:  Grand Rapids

DESCRIPTION AND USE

Green multi-ply waste paper boxboard, used as the face paper on moisture
resistant gypsum board.

REQUIRED CHARACTERISTICS

This paper must have minimal water absorption through the face and adequate
physical strength properties in order that the gypsum board meets the
requirements of the applicable CSA and ASTM Standards. The uniformity of water
absorption from the core side, and high water permeability are critical to
conversion. Plants using this paper have cold stucco slurry which is less
effective at wetting the paper. This product must be statistically uniform and
evidence thereof must be provided to the customer. 85% of individual results
must fall within +/- 50% of the range between the specification target and any
reject limit for each characteristic.

<TABLE>
<CAPTION>
                                                       TEST                REJECT                            REJECT
PHYSICAL PROPERTIES                                   METHOD               MINIMUM        TARGET             MAXIMUM
-------------------                                   ------               -------        ------             -------
<S>                                               <C>                      <C>          <C>                  <C>
1.   TENSILE STRENGTH lb/in                       T-404 / ASTM D 828
     @ 50% R. H. AND 23 degrees C.
     - machine direction                                                       75       Target to be determined (+ 3 sigma of min.)
     - cross direction                                                         20       Target to be determined (+ 3 sigma of min.)
2.   MOISTURE CONTENT (Weight %; off machine)                                   5              7                  8
3.   BASIS WEIGHT (lbs/asf)                       T-410                                       52
                           ANY PROGRAMMED EFFORTS TO LOWER BASIS WEIGHT SHOULD BE
                           COMMUNICATED TO BOARD PLANTS IN ADVANCE OF PRODUCTION.
4.   AVERAGE CALIPER (in.)                        T-411 / 7103              0.013          0.015              0.017
5.   CALIPER DEVIATION FROM AVERAGE               T-411 / 7103             -0.002                            +0.002
     (in.), any point within 4
     lineal feet
6.   COBB (3 min. @ 49(degree)C; g/100 cm(2)      T-441 / 7116
     - face                                                                  0.40           0.60               0.90
     - core                                                                  1.40           1.70               2.00
7.   SATURATION (seconds)                                 7101                150           1200
8.   POROSITY (Gurley; s/100 ml)                  T-460 / 7106                                55                110
9.   PLYBOND (lb/sq in)                                                                       90                  ?
</TABLE>

10.COLOUR                Caraustar to specify dye manufacturer product code and
                         concentration in lbs/msf. Thereafter, Caraustar will
                         provide to Domtar color matched samples that indicate
                         the extreme ranges of color that will be sent to each
                         board plant. These will be replaced on a quarterly
                         basis to compensate for fading and handling
                         degradation.
<PAGE>   34

                                                                    Page 2 of 2

                               GYPSUM BOARD PAPER
                 GREEN MOISTURE-GUARD, VERY HIGH BOND LINER COBB
                                CARAUSTAR, CAMDEN

          PLANTS:  Grand Rapids

11. FACIAL BLEMISHES     No off-colour spots larger than 1/8" diameter. Maximum
                         of six spots larger than 1/16" diameter per 32 square
                         feet. Hot melt spots or other impurities which surface
                         from interior plys after conversion are also included.

12. SPLICES              Splices shall be butt-joined with tape across the full
                         width of the roll, on both sides of the sheet. Edges of
                         the paper are to be carefully lined up on each side of
                         the splice, so that the edges are not off-set more than
                         1/16 ". Splices and patches shall be as strong as the
                         sheet itself, unwind without sticking, and shall be
                         clearly flagged on the same side of the roll as the
                         identification stencil. No more than three splices or
                         patches shall be made in one roll, and no splice shall
                         occur within two inches of the outside of the roll, as
                         measured along the diameter of the roll. At no time
                         shall the average concentration of splices exceed one
                         per roll on a load by load basis.

QUALITY DOCUMENTATION

Copies of paper mill test data for specific roll numbers will be made available
to the purchasing plant on request or through on-line computer inquiry when
available. On a monthly basis Caraustar will forward to each Domtar gypsum board
plant an individual quality summary report indicating average, capability index,
total number of samples for each tested paper variable and the roll numbers of
all rolls shipped which are represented by the monthly summary.

<TABLE>
<S>                                                       <C>
Approvals:                                                (5)
             --------------------------------------             ----------------------------------------
                    Domtar Marketing Resource                             Caraustar Marketing

                                                          (4)
             --------------------------------------             ----------------------------------------
                    Domtar Quality Resource                               Caraustar Quality Resource

                                                          (3)
             --------------------------------------             ----------------------------------------
                    Domtar Business Unit Leader

                                                          (2)
             --------------------------------------             ----------------------------------------
                    Domtar MRT Resource

                                                          (1)
             --------------------------------------             ----------------------------------------
                    Domtar Production Coordinator                         Caraustar Production Manager
</TABLE>

Numbers indicate the desired order of approval from (1) to (5). Please date your
signatures.

<PAGE>   35

                                   SCHEDULE B

<TABLE>
    <S>                                            <C>
    Cream Face                                     $ 9.50/MSF
    Greyback                                         7.85/MSF
    Brown Sta-Dri                                    9.29/MSF
    Green Sta-Dri                                   10.94/MSF
    Green Sta-Dri 24 tensile                        11.36/MSF
    Grey Veneer                                      9.56/MSF
</TABLE>

All other grades on tensile requirements to be priced on receipt of
specifications.

<PAGE>   36
                               SCHEDULE 7(B)(V)

         Furnish Cost

         With respect to the Base Period and each Current Period, the Furnish
Component Cost will be average delivered cost of wastepaper and chemical
additives used to produce the Products (per ton of Products produced) for that
Period, calculated separately for each grade of the Products.

         Labor

         With respect to the Base Period and each Current Period, the Labor
Component Cost will be the average hourly labor rate (which will include the
cost of all fringe benefits) for the hourly employees at Camden for that Period.

         Electricity

         With respect to the Base Period and each Current Period, the
Electricity Component Cost will be the Camden mill's average cost per kilowatt
hour of electricity for that Period.

         Fuel

         With respect to the Base Period and each Current Period, the Fuel Cost
Component will be the Camden mill's average cost per million btu's of fuel of
the fuel used by Camden to produce steam, and the cost to Camden per million
btu's of steam supplied by Camden Cogen, for the Camden mill for that Period.

<PAGE>   37

                               SCHEDULE 7 (B) (V)

                          INDEX COMPUTATION DESCRIPTION

<TABLE>
<CAPTION>                                                                                    One-half
       Component                                                                Percent       Percent
         Cost                     Component Formula                              Change       Change     Weighting    Index Value
      ------------   ---------------------------------------------     ------   ---------   -----------  ------------  ------------
<S>                  <C>                                               <C>      <C>         <C>          <C>           <C>
A)    Furnish:            Current Period Average Furnish Cost          - 1 =        %        (% Change       .3333
                     ---------------------------------------------                                                     ------------
                           Base Period Average Furnish Cost                       Change       x .5)

B)    Labor:           Current Period Average Hourly Labor Rate        - 1 =        %        (% Change       .3333
                     ---------------------------------------------                                                     ------------
                         Base Period Average Hourly Labor Rate                    Change       x .5)

C)    Electricity:        Current Period Average Cost Per KWH          - 1 =        %        (% Change       .1667
                     ---------------------------------------------
                             Base Period Average KWH Cost                         Change       x .5)

D)    Fuel:          Current Period Average Cost Per MMBTW of Fuel     - 1 =        %        (% Change       .1667
                     ---------------------------------------------
                             Base Period MMBTU Fuel Cost                         Change       x .5)

                                                                                                                       ------------
                          Sum of Current Period Index Value
                                                                                                                       ===========
                                                                                                                       +         1
                                                                                                                       ===========
                          Current Period Price Index =
                                                                                                                       -----------
</TABLE>

<PAGE>   38
                               SCHEDULE 7 (B) (IX)

                           BASE PERIOD COMPONENT COSTS

Furnish (includes wastepaper and chemical furnish)

<TABLE>
<CAPTION>

                                         CHEMICALS                 WASTE PAPER                   TOTAL FURNISH
                                         ---------                 -----------                   -------------
<S>                                     <C>                        <C>                           <C>
Cream Face                              $ 17.38/ ton                  $69.77/ ton                    $87.15/ ton
Greyback                                  17.38                        26.14                          43.52
Brown Sta-Dri                             22.18                        26.14                          48.32
Green Sta-Dri                             19.38                        69.77                          89.15
Green Sta-Dri 24 tensile                  19.38                        69.77                          89.15
Grey Veneer                               25.38                        69.77                          95.15

Labor                                   $ 16.72/ hr.
Electricity                             $   .06212 / KWH
Fuel                                    $  3.24 / MMBTU
</TABLE>

<PAGE>   39

                        ILLUSTRATION OF PRICE ADJUSTMENT

Assumption:

1.       There is no change in Furnish costs for the grade.

2.       Labor costs during the Current Period were $17.72, a 6% increase over
         the Base Period.

3.       Electricity costs during the Current Period were $.0646 per KWH, a 4%
         increase over the Base Period.

4.       Fuel costs during the Current Period were $0 (because of the
         cogeneration project), a 100% decrease from the Base Period.

<PAGE>   40

                               SCHEDULE 7 (B) (X)

                          INDEX COMPUTATION DESCRIPTION

<TABLE>
<CAPTION>
                                                                           One-half
      Component                                                Percent       Percent                        Index
         Cost              Component Formula                   Change        Change       Weighting         Value
     --------------    ------------------------     ------   -----------   -----------   ------------     -----------
<S>                    <C>                          <C>      <C>           <C>           <C>              <C>
A)   Furnish:                      1                - 1 =         0            0            .3333              0

B)   Labor:                      1.06               - 1 =       .06           .03           .3333             .01

C)   Electricity:                1.04               - 1 =       .04           .02           .1667             .0033

D)   Fuel:                         0                - 1 =     (1.00)         (.5)           .1667            (.0833)

                                                                                                          -------
                                          Sum of Current Period Index Value
                                                                                                             (.07)
                                                                                                          =======

                                                                                                          +     1
                                                                                                          =======
                                          Current Period Price Index =
                                                                                                              .93
                                                                                                          -------

                                          Price of Grade would therefore be
                                          adjusted to 93% of initial price.

</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]