Document:

Change in Control Severance Agreement

 Exhibit 10.4 
  
 

 
  
 CHANGE IN CONTROL SEVERANCE
AGREEMENT 
  
 THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (this
“Agreement”) is entered into as of the 7th day of November, 2005 by and between Caraustar Industries, Inc., a North Carolina corporation (the “Company”), and
             (Employee Name)                     
(“Executive”). 
  
 Background
Statement 
  
 The Company considers the establishment and
maintenance of a sound and vital management team to be essential to protecting and enhancing the best interests of the Company and its shareholders. In addition, the Company recognizes that, as is the case with many publicly held corporations, the
possibility of a change in control may arise, and that such possibility may result in the departure or distraction of management personnel to the detriment of the Company and its shareholders. The Board (as defined in Section 1(a)) has
therefore determined that it is in the best interests of the Company and its shareholders to secure Executive’s continued services and to ensure Executive’s continued dedication to his duties in the event of any threat or occurrence of a
Change in Control (as defined in Section 1(c)) of the Company, and has authorized the Company to enter into this Agreement. 
  
 Statement of Agreement 
  
 NOW, THEREFORE, the Company and Executive hereby agree as follows: 
  
 1. Definitions. As used in this Agreement, the following terms shall have the respective meanings set forth below:

  
 (a) “Board” means the Board of Directors of
the Company. 
  
 (b) “Cause” means (i) the
willful and continued failure of Executive substantially to perform his duties with the Company (other than any such failure resulting from Executive’s incapacity due to physical or mental illness or any such failure subsequent to Executive
being delivered a notice of termination without Cause by the Company or delivering a notice of termination for Good Reason to the Company) after the Board delivers to Executive a written demand for substantial performance that specifically
identifies the manner in which the Board believes that Executive has not substantially performed Executive’s duties, (ii) the commission of an act by Executive constituting dishonesty or fraud against the Company,
(iii) Executive’s conviction of or entering of a guilty or no contest plea with respect to a felony, (iv) habitual absenteeism, chronic alcoholism or any other form of substance abuse by Executive, or (v) the commission of an act
by Executive involving gross negligence or moral turpitude that brings the Company or any of its affiliates into public disrepute or disgrace or causes material harm to the customer relations, operations or business prospects of the Company or any
of its affiliates. For purposes of this Section 1(b), no act or failure to act by Executive shall be considered “willful” 

 (c) unless done or omitted to be done by Executive in bad faith and without reasonable belief that such
act or failure to act was in the best interests of the Company or its affiliates. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board, the advice of counsel for the Company [or the
instructions of the Company’s chief executive officer or another senior officer of the Company] shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company. Cause
shall not exist unless and until (x) there has been a meeting of the Board, held after reasonable notice to Executive, at which Executive, together with counsel, is afforded a reasonable opportunity to be heard and (y) the Company has
delivered to Executive a copy of a resolution, duly adopted by three quarters (3/4) of the entire Board (excluding Executive if Executive is a Board member) at or after such meeting, finding that an event described in one of clauses
(i) through (v) has occurred and specifying the particulars thereof. 
  
 (d) “Change in Control” means the occurrence of any one of the following events: 
  
 (i) individuals who, on the date hereof, constitute the Board (the “Incumbent Directors”) cease for any reason to
constitute at least a majority of the Board, provided that any person becoming a director subsequent to the date hereof whose election or nomination for election was approved by a vote of at least two thirds (2/3) of the Incumbent
Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director;

  
 (ii) any “person” (as such term is
defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”) and in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the
“Company Voting Securities”); provided, however, that such event shall not be deemed to be a Change in Control by virtue of any acquisition of Company Voting Securities (A) by the Company or any Subsidiary,
(B) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (C) by any underwriter temporarily holding securities pursuant to an offering of such securities, (D) pursuant to a
Non-Qualifying Transaction (as defined in Section 1(c)(iii)), (E) pursuant to any acquisition by Executive or any group of persons including Executive (or any entity controlled by Executive or by any group of persons including
Executive); or (F) pursuant to or in connection with a transaction (other than a Business Combination) in which Company Voting Securities are acquired from the Company, if a majority of the Incumbent Directors approve a resolution providing
expressly that such transaction does not constitute a Change in Control under this Section 1(c)(ii); 
  
 (iii) the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company
or any of its Subsidiaries that requires the approval of the Company’s shareholders, whether for such transaction or for an issuance of securities in or in connection with the transaction (a “Business  

  

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Combination”), unless immediately following such Business Combination (A) more than 50% of the total voting power of the ultimate
parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”) or, if there is no Parent Corporation, the
corporation resulting from such Business Combination (the “Surviving Corporation”), is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented
by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities
among the holders thereof immediately prior to the Business Combination, (B) no person (other than any employee benefit plan or related trust sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the
beneficial owner, directly or indirectly, of 25% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and
(C) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors at the
time of the Board’s approval of the execution of the initial agreement providing for such Business Combination (any Business Combination that satisfies all of the criteria specified in clauses (A), (B) and (C) above shall be deemed to
be a “Non-Qualifying Transaction”); or 
  
 (iv) the Company acts upon a plan of complete liquidation or dissolution of the Company approved by the shareholders of the Company or effects a sale of all or substantially all of the Company’s assets approved
by the shareholders of the Company. 
  
 Notwithstanding the foregoing, a Change in
Control of the Company shall not be deemed to occur solely because any person acquires beneficial ownership of more than 25% of the Company Voting Securities as a result of an acquisition or a series of acquisitions of Company Voting Securities by
the Company that reduces the number of Company Voting Securities outstanding; however, if such person thereafter becomes the beneficial owner of additional Company Voting Securities that increase the percentage of outstanding Company Voting
Securities beneficially owned by such person, a Change in Control of the Company shall then be deemed to occur. 
  
 (e) “Date of Termination” means, subject to Section 1(j), (i) the effective date on which Executive’s employment by
the Company terminates as specified in a prior written notice by the Company or Executive, as the case may be, to the other, delivered pursuant to Section 9 or (ii) if Executive’s employment by the Company terminates by reason
of death or Disability, the date of death or Disability of Executive. 
  
 (f) “Disability” means termination of Executive’s employment by the Company due to Executive’s absence from Executive’s duties with the Company on a full-time basis for at least 180 consecutive days as a
result of Executive’s incapacity due to physical or mental illness. 
  

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 (g) “Good Reason” means the occurrence of any of the following events, without
Executive’s express written consent, after a Change in Control: 
  
 (i) any change in the duties or responsibilities (including reporting responsibilities) of Executive that is materially and adversely inconsistent with Executive’s position(s), duties, responsibilities or status
with the Company immediately prior to such Change in Control (including any material and adverse diminution of such duties or responsibilities), or a material and adverse change in Executive’s titles or offices with the Company as in effect
immediately prior to such Change in Control; 
  
 (ii) a reduction by the Company in Executive’s rate of annual base salary as in effect immediately prior to such Change in Control or as it may be increased from time to time thereafter, except for any reduction as part of
across-the-board salary reductions similarly affecting all management personnel of the Company; 
  
 (iii) any requirement of the Company that Executive be based anywhere more than 50 miles from the office where Executive is located at the
time of the Change in Control; 
  
 (iv) any
purported termination of Executive’s employment that is not effectuated pursuant to Section 9(b) (and that therefore will not constitute a termination hereunder); or 
  
 (v) the failure of the Company to obtain any assumption (and, if applicable, guarantee) agreement from the
Surviving Corporation (and the Parent Corporation) required by Section 8(b). 
  
 An action taken in good faith and remedied by the Company within thirty days after receipt of notice thereof given by Executive shall not constitute Good Reason. Executive’s right to payment pursuant to
Section 4(a) upon termination of employment for Good Reason shall not be affected by Executive’s incapacities due to mental or physical illness, nor shall Executive’s continued employment constitute consent to, or a waiver of
rights with respect to, any event or condition constituting Good Reason except that no event shall constitute Good Reason unless Executive provides notice of termination of employment within 90 days following Executive’s knowledge of the
occurrence thereof. 
  
 (h) “Qualifying
Termination” means a termination of Executive’s employment (i) by the Company other than for Cause or on account of death, Disability or Retirement or (ii) by Executive for Good Reason. 
  
 (i) “Retirement” means Executive’s mandatory retirement
(not including any mandatory early retirement) in accordance with the Company’s retirement policy generally applicable to its salaried employees as in effect immediately prior to the Change in Control, or in accordance with any retirement
arrangement established with respect to Executive with Executive’s written consent. 
  
 (j) “Subsidiary” means any corporation or other entity of which the Company has a direct or indirect ownership interest in 50% or more of the total combined voting power of the 

  

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then outstanding securities or interests entitled to vote generally in the election of directors or of which the Company has the right to receive 50% or more
of the distribution of profits or 50% of the assets upon liquidation or dissolution. 
  
 (k) “Termination Period” means the period of time beginning with a Change in Control and ending on the second anniversary of such Change in Control. Notwithstanding anything in this Agreement to the
contrary, if (i) Executive’s employment is terminated prior to a Change in Control under circumstances that would have constituted a Qualifying Termination if they had occurred following a Change in Control, (ii) Executive reasonably
demonstrates that such termination (or the Good Reason event for which Executive gives notice of termination) was at the request of a third party who had indicated an intention or taken steps reasonably calculated to effect a Change in Control, and
(iii) a Change in Control involving such third party (or a party competing with such third party to effectuate a Change in Control) does occur, then a Change of Control shall be deemed to have occurred on the date immediately prior to the date
of such termination of employment or event constituting Good Reason for all purposes of this Agreement. For purposes of determining the timing of payments and benefits to Executive under Section 4 and the required notice period under
Section 9(b), the date of the actual Change in Control shall be treated as Executive’s Date of Termination under any of the circumstances described in clauses (i) through (iii) above. 
  
 2. Covenants of the Executive. 
  
 (a) In the event of a tender or exchange offer, proxy contest, or the
execution of any agreement that, if consummated, would constitute a Change in Control, Executive agrees not to voluntarily leave the employ of the Company, other than as a result of Disability, Retirement or an event that would constitute Good
Reason if a Change in Control had occurred, until the Change Control occurs, or if earlier, such tender or exchange offer, proxy contest, or agreement is terminated or abandoned. 
  
 (b) as a condition precedent to and in consideration of your receipt of the payments and benefits set forth in this
Agreement, you agree that you shall adhere to the terms and conditions set forth in the Executive’s confidentiality and non-competition agreement with the Company. 
  
 3. Term of Agreement. This Agreement shall be effective on the date hereof and shall continue in effect until the
Company shall have given one year’s written notice of cancellation; provided that, notwithstanding the delivery of any such notice, this Agreement shall continue in effect for a period of two years after a Change in Control if such
Change in Control occurs prior to the effective date of such cancellation. Notwithstanding anything in this Section 3 to the contrary, this Agreement shall terminate, except as provided in Section 1(j), if Executive or the
Company terminates Executive’s employment prior to a Change in Control. 
  

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 4. Payments Upon Termination of Employment. 
  
 (a) Qualifying Termination. If the employment of Executive terminates
pursuant to a Qualifying Termination during the Termination Period, then the Company shall provide to Executive: 
  

	 	(i)	within ten days following the Date of Termination, a lump-sum cash amount equal to the sum of (A) the pro rata share of any of Executive’s base salary earned, but
not yet paid, through the Date of Termination and any bonus amounts that have become payable, to the extent not theretofore paid or deferred, plus (B) any compensation previously deferred by Executive other than pursuant to a
tax-qualified plan (together with any interest and earnings thereon) and any accrued vacation pay, in each case to the extent not theretofore paid; 

  

	 	(ii)	a cash amount for projected payments to the Executive under the Company’s incentive programs, equal to the average annual incentive bonus actually paid in the prior two years;

  

	 	(iii)	a cash amount equal to the lesser of (A) product of (1) 2 multiplied by (2) Executive’s annual rate of base salary as in effect immediately prior to the
Date of Termination, and (B) the product of (1) 2.99 multiplied by (2) Executive’s “Base Amount,” as defined in Section 280G(b)(3) of the Internal Revenue Code of 1986, as amended (the
“Code”), such amount to be paid, at the Company’s option, in a lump sum within 30 days following the Date of Termination or in equal monthly installments over the 24-month period following the Date of Termination.

  

	 	(iv)	for two years following the Date of Termination, whether or not under any health or welfare benefit plan then maintained, at the Company’s sole expense health and welfare
benefits that are substantially the same as the health and welfare benefits offered to the Executive (and the Executive’s dependents) immediately before the Qualifying Termination, except that the health and welfare benefits to which the
Executive is entitled under this Subsection (iv) will be subject to the Executive’s compliance with the Executive’s confidentiality and non-competition agreement and will be reduced to the extent that comparable health and
welfare benefits are received by the Executive from an employer other than the Company the two year period following the Date of Termination. The fact that the cost of the participation by the Executive, or the Executive’s dependents or
beneficiaries, in any health or welfare benefit plan was paid indirectly by the Company, as a reimbursement or a credit to the Executive, before the Qualifying Termination does not mean that the corresponding health and welfare benefits were not
“provided to the Executive” by the Company for purposes of this Subsection (iv). As used in this subsection, health and welfare benefits shall include: all life insurance, disability insurance, accidental death and dismemberment
insurance and health care (medical, dental and prescription drug) coverage. 

  
 (b) Non-Qualifying Termination. If during the Termination Period the employment of Executive terminates other than by reason of a Qualifying Termination, then the Company 

  

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shall pay to Executive, within 30 days following the Date of Termination, the lump-sum cash amount described in Section 4(a)(i). The Company may
make such additional payments, and provide such additional benefits, to Executive as the Company and Executive may agree in writing. 
  
 5. Limitation on Payments by the Company. 
  
 (a) In the event that any payment or benefit received or to be received by the Executive pursuant to the terms of this Agreement or in connection with or
contingent upon a Qualifying Termination pursuant to any other agreement, plan or arrangement with the company or any of its subsidiaries (“Other Payments” and, together with the contract Payments, the “Payments”) would be
subject to the Excise Tax imposed by section 4999 of the Code (the “Gross–Up Payment”) such that the net amount of Payments retained by the Executive shall be equal to the amount the Executive would have retained if none of such
Payments were subject to the Excise Tax. In particular, the Company will timely pay to the Executive an amount equal to the Excise Tax on the Payment, any interest penalties, or additions to tax payable by the Executive by reason of your filing
income tax returns and making tax payments in a manner consisted with an opinion of tax counsel selected by the Company and reasonably acceptable to the Executive (“Tax Counsel”), and any federal, state and local income tax and Excise Tax
upon the payments by the Company to you provided for this Section 5. Notwithstanding the foregoing provisions of this Section 5(a), in the event the amount of Payment subject to the Excise Tax exceeds the product
(“Parachute Payment Limit”) of 2.99 and the Executive’s applicable “Base Amount” (as such term is defined for purposes of Section 4999 of the Code) by less than ten percent (10%) of the Executive’s annual base
salary, the executive shall be treated as having waived such rights with respect to Payments designated by the Executive to the extent required such that the aggregate amount of Payments subject to the Excise Tax is less than the Parachute Payment
Limit. 
  
 (b) Upon a Change in Control, the independent public
accounting firm that is retained by the Company as of the date immediately prior to the Change in Control (the “Accounting Firm”) shall determine whether the Payments would be subject to the Excise Tax absent reduction pursuant to
Section 5(a) and, if so, shall determine the Safe Harbor Cap; provided, however, that in the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change in Control,
the Company may appoint another nationally recognized public accounting firm to make such determinations (which accounting firm shall then be referred to as the Accounting Firm). If amounts payable pursuant to Section 4 are reduced to
the Safe Harbor Cap, the Accounting Firm shall provide a reasonable opinion to Executive that Executive is not required to report any Excise Tax on Executive’s federal income tax return. All fees, costs and expenses (including without
limitation the costs of retaining experts) of the Accounting Firm shall be borne by the Company. Determinations by the Accounting Firm hereunder shall be binding upon the Company and Executive except as provided in Section 5(c) below.

  
 (c) If it is established, pursuant to a final determination of
a court or an Internal Revenue Service (“IRS”) proceeding that has been finally and conclusively resolved, that any amount has been paid to Executive by the Company pursuant to this Agreement in excess of the Safe Harbor Cap, such
excess amount shall be deemed for all purposes to be a loan to Executive 

  

 7 

 
made on the date Executive received such amount, and Executive shall repay such amount to the Company on demand, together with interest thereon at the
applicable federal rate (as defined in Section 1274(d) of the Code) from the date of Executive’s receipt thereof until the date of such repayment. As a result of the uncertainty in the application of Section 4999 of the Code at the
time of the Accounting Firm’s determinations pursuant to Section 5(b), it is possible that an amount will not have been paid by the Company hereunder that should have been paid in accordance with Sections 4 and 5(a). In
the event that the Accounting Firm, the Company (which shall include the position taken by the Company, or together with its consolidated group, on its federal income tax return), the IRS or any court determines that this has occurred, the Company
shall pay such amount to Executive within ten days of such determination, together with interest thereon at the applicable federal rate from the date such amount would have been paid to Executive until the date of payment. 
  
 6. Withholding Taxes. The Company may withhold from all payments due
to Executive (or his beneficiary or estate) hereunder all taxes that, by applicable federal, state, local or other law, the Company is required to withhold therefrom. 
  
 7. Scope of Agreement. Nothing in this Agreement shall be deemed to entitle Executive to continued employment with
the Company or its Subsidiaries, and if Executive’s employment with the Company shall terminate prior to a Change in Control, Executive shall have no further rights under this Agreement (except as otherwise provided hereunder); provided,
however, that any termination of Executive’s employment during the Termination Period shall be subject to all of the provisions of this Agreement. 
  

8. Successors; Binding Agreement. 
  
 (a) This Agreement shall not be terminated by any Business Combination. In the event of any Business Combination, the provisions of this Agreement shall
be binding upon the Surviving Corporation, and such Surviving Corporation shall be treated as the Company hereunder. 
  
 (b) The Company agrees that in connection with any Business Combination, it shall cause the Surviving Corporation unconditionally to assume (and any
Parent Corporation of the Surviving Corporation to guaranty), by written instrument delivered to Executive (or his beneficiary or estate), all obligations of the Company hereunder. Failure of the Company to obtain such assumption and guaranty, prior
to the effectiveness of any such Business Combination that constitutes a Change in Control, shall be a breach of this Agreement and shall constitute Good Reason hereunder. 
  
 (c) This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive dies while any amounts would be payable to Executive hereunder had he continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to such person or persons appointed in writing by Executive to receive such amounts or, if no person is so appointed, to Executive’s estate. 
  

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 9. Notice. 
  
 (a) For purposes of this Agreement, all notices and other communications required or permitted hereunder shall be in writing
and shall be deemed to have been duly given when delivered or five days after deposit in the United States mail, certified and return receipt requested, postage prepaid, addressed as follows: 
  

			
	If to Executive:	  	Employee Name
	 	  	and address
		
	If to the Company:	  	Caraustar Industries, Inc.
	 	  	P.O. Box 115
	 	  	3100 Joe Jerkins Boulevard
	 	  	Austell, Georgia 30106
	 	  	Attention: Chief Executive Officer

  
 or to such other address as either
party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
  
 (b) If Executive’s employment is terminated during the Termination Period for any reason other than death, the Company or Executive, as applicable,
shall provide to the other written notice of Executive’s Date of Termination. Such notice shall (i) set forth in reasonable detail the facts and circumstances on which such termination is based, (ii) indicate whether such termination
is for Cause, Good Reason or Disability or is other than for Cause, and (iii) specify the Date of Termination, which shall be not less than 15 nor more than 60 days after the giving of such notice except as specified in Section 1(e)
with respect to Disability or unless, pursuant to Section 1(j), fewer than 15 days remain before the date of the actual Change in Control. The failure by Executive or the Company to set forth in such notice any fact or circumstance that
contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company hereunder or preclude Executive or the Company from asserting such fact or circumstance in enforcing Executive’s or the Company’s rights
hereunder. 
  
 10. Full Settlement; Resolution of Disputes.
The Company’s obligation to make any payments provided for in this Agreement and otherwise to perform its obligations hereunder shall be in lieu and in full settlement of all other severance payments to Executive under any other severance or
employment agreement between Executive and the Company and any severance plan of the Company. In no event shall Executive be obligated to seek other employment or take other action by way of mitigation of the amounts payable to Executive under any
of the provisions of this Agreement, and such amounts shall not be reduced as a result of Executive’s obtaining other employment. 
  
 11. Employment with Subsidiaries. Employment with the Company for purposes of this Agreement shall include employment with any Subsidiary.

  
 12. Survival. The respective obligations and benefits
afforded to the Company and Executive as provided in Sections 4 (to the extent that payments or benefits are owed as a result 
  

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 of a termination of employment that occurs during the term of this Agreement), 5 (to the extent that Payments are
made to Executive as a result of a Change in Control that occurs during the term of this Agreement), 6, 8(c) and 10 shall survive the termination of this Agreement. 
  
 13. GOVERNING LAW; VALIDITY. THE INTERPRETATION, CONSTRUCTION AND
PERFORMANCE OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NORTH CAROLINA WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS OF LAWS. THE INVALIDITY OR UNENFORCEABILITY OF ANY
PROVISION OF THIS AGREEMENT SHALL NOT AFFECT THE VALIDITY OR ENFORCEABILITY OF ANY OTHER PROVISION OF THIS AGREEMENT, WHICH OTHER PROVISIONS SHALL REMAIN IN FULL FORCE AND EFFECT. 
  
 14. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and
all of which together shall constitute one and the same instrument. 
  
 15. Miscellaneous. No provision of this Agreement may be modified or waived unless such modification or waiver is agreed to in writing and signed by Executive and by a duly authorized officer of the Company. No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. Failure by Executive or the Company to insist upon strict compliance with any provision of this Agreement or to assert any right Executive or the Company may have hereunder, including without limitation the
right of Executive to terminate employment for Good Reason, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. Except as otherwise specifically provided herein, the rights of, and
benefits payable to, Executive, his estate or his beneficiaries pursuant to this Agreement are in addition to any rights of, or benefits payable to, Executive, his estate or his beneficiaries under any other employee benefit plan or compensation
program of the Company. 
  
 IN WITNESS WHEREOF, the Company has
caused this Agreement to be executed by a duly authorized officer of the Company and Executive has executed this Agreement as of the day and year first above written. 
  

							
	CARAUSTAR INDUSTRIES, INC.	 	 	 	 
			
	By:	 	 /s/ Michael J. Keough

	 	  

	 	 	 	 	 	 	                    (Employee Name)
	Its:	 	 President and CEO

	 	 	 	 
				
	Dated:	 	 November 7, 2005

	 	Dated:	 	  

  

 10Employee Death Benefit and Post-Retirement

 Exhibit 10.1 
  
 EMPLOYEE DEATH BENEFIT AND POST-RETIREMENT NONCOMPETITION 
 AND CONSULTATION AGREEMENT 
  
 THIS AGREEMENT, made and entered into and effective as of the 1st day of August, 2005 (“Effective Date”), by and between FIRST CITIZENS BANK AND TRUST COMPANY, INC, a South Carolina banking
corporation with its principal office in Columbia, South Carolina (hereinafter referred to as “Employer”); and WILLIAM A. LOADHOLDT, an employee of Employer, who is currently serving as Chief Information Officer (hereinafter
referred to as “Employee”); 
  
 W I T N E S S E T
H: 
  
 WHEREAS, Employee has provided guidance,
leadership and direction in the growth, management and development of Employer, during which time Employee has learned trade secrets, confidential procedures and information, and technical and sensitive plans of Employer; and, 
  
 WHEREAS, Employer values the efforts, abilities and accomplishments of
Employee as an important member of management and desires to continue to have Employee’s experience and knowledge available to it following Employee’s retirement from employment with Employer; and, 
  
 WHEREAS, Employer desires to limit Employee’s availability to
other employers or entities which are in competition with Employer following Employee’s retirement from employment with Employer; and, 
  
 WHEREAS, Employer, as part of a plan adopted for a class of employees of Employer, has offered to Employee a noncompetition arrangement together
with a limited, when-called, independent contractor consultation service arrangement and a death benefit arrangement for Employee’s designated beneficiary or Estate, as applicable, and the parties hereto have reached an agreement concerning the
independent contractor consulting relationship, the noncompetition arrangement, the death benefit arrangement and other matters contained herein and desire to set forth the terms and conditions thereof. 
  
 NOW, THEREFORE, for and in consideration of the mutual promises and
undertakings herein set forth, the parties hereto do agree as follows: 
  
 1. Retirement Date. The term “Retirement Date,” as used herein, shall be defined for purposes of this Agreement as the last day of the calendar month in which Employee attains the age of sixty-five (65), or such
other date of termination of employment prior or subsequent thereto as shall be agreed upon between Employer and Employee. 
  
 Employer and Employee hereby acknowledge that compulsory retirement is not enforceable except as provided by law. Employer and Employee further agree
that no provision herein shall be construed as requiring Employee’s retirement except as may now or hereafter be permitted by law; however, Employee acknowledges Employer’s continuing policy, in an effort to provide opportunities and
continuity, to encourage retirement at age sixty-five (65) and to require retirement at age sixty-five (65) where permissible by law. 
  
 2. Death Benefits. In the event Employee dies while employed by Employer prior to Employee’s Retirement Date, Employer will pay
the sum of SIXTY-FIVE THOUSAND and No/100 Dollars ($65,000) per year, payable in monthly installments of FIVE THOUSAND FOUR HUNDRED SIXTEEN and 67/100 Dollars ($5,416.67), for a period of ten (10) years, to such beneficiary or beneficiaries as
Employee shall have designated in writing filed with Employer as provided in 

 Paragraph 13 below or, in the absence of such designation, to Employee’s estate. The first payment shall be made not
later than two (2) months following Employee’s death. Payments hereunder shall be payable each month without deductions and the recipient shall be solely responsible for the payment of all income and other taxes and assessments applicable
on said payments. 
  
 3. Consultation
Payments. In the event Employee retires from employment on Employee’s Retirement Date, Employee shall be paid by Employer the sum of ONE THOUSAND THREE HUNDRED FIFTY-FOUR and 17/100 Dollars ($1,354.17) per month (“Consultation
Payments”), beginning not later than two (2) months after Employee’s Retirement Date (except as provided in Paragraph 6 of this Agreement), for a period of ten (10) years following Employee’s Retirement Date or until death,
whichever first occurs. Such monthly payments shall be paid for and in consideration of Employee’s “Consultation Services,” as defined below; such sum to be payable to Employee whether or not Employee’s Consultation Services have
been utilized by Employer. Payments for Consultation Services hereunder shall be payable each month without deductions and Employee agrees to be solely responsible for the payment of all income and other taxes out of said funds and all Social
Security, self-employment and any other taxes or assessments, if any, applicable on said compensation. 
  
 For and in consideration of said monthly Consultation Payments, Employee will provide support, sponsorship, and advisory services as an independent
contractor to Employer, as and when Employer may request, which services may be provided with respect to all phases of Employer’s business and particularly those phases in which Employee has particular expertise and knowledge
(“Consultation Services”). Employee’s services shall be limited to those of an independent consultant, shall not be on a day-to-day regularly scheduled operational basis and shall be provided only when Employee is reasonably available
and willing. Employer shall make available to Employee such office space and equipment as are reasonably necessary for Employee to carry out the obligations under this Agreement and shall reimburse Employee for any extraordinary expenses incurred in
carrying out the obligations hereunder. 
  
 Effective as of
Employee’s Retirement Date, Employee and Employer agree that Employee shall be, under the terms of this Agreement, an independent contractor, and Employee agrees that his rights and privileges and his obligations are as provided in this
Agreement as to matters covered herein. 
  
 Notwithstanding the
foregoing, if Employer determines that the Consultation Payments are compensation for other than Employee’s Consultation Services, and that such payments are subject to any applicable withholding, Social Security, employment, income or other
taxes or assessments, if any, under the applicable tax law, then said payments shall be subject to such required withholdings or other taxes or assessments. 
  
 If Employee should die during said ten (10) year period, payments under this Paragraph shall terminate and future payments, if any, to
Employee’s designated beneficiary or Employee’s Estate shall be made in accordance with the provisions of Paragraph 5 of this Agreement. 
  
 4. Non-Competition Payments. In the event Employee retires from employment on Employee’s Retirement Date, Employee shall be paid
by Employer the sum of FOUR THOUSAND SIXTY-TWO and 50/100 Dollars ($4,062.50) per month (“Non-competition Payments”), beginning not later than two (2) months after Employee’s Retirement Date (except as provided in Paragraph 6 of
this Agreement), for a period of ten (10) years following Employee’s Retirement Date or until death, whichever first occurs. Such monthly payments shall be paid for and in consideration of Employee’s agreements in this Paragraph 4.
Non-competition Payments hereunder shall be payable each month without deductions and Employee agrees to be solely responsible for the payment of all income or other taxes or assessments, if any, applicable on said payments. 

 For and in consideration of said monthly Non-competition Payments to Employee, Employee agrees that he
will not become an officer or employee of, provide any consultation to nor participate in any manner with any other entity of any type or description involved in any major element of business which Employer is performing at Employee’s
Retirement Date, nor will Employee perform or seek to perform any consultation or other type of work or service with any other firm, person or entity, directly or indirectly, in any such business which competes with Employer, whether done directly
or indirectly, in ownership, consultation, employment or otherwise. Employee agrees not to reveal to outside sources, without the consent of Employer, any matters, the revealing of which could, in any manner, adversely affect or disclose
Employer’s business or any part thereof, unless required by law to do so. Employee’s agreement not to compete is limited to the geographic area of South Carolina, and shall exist for and during the term of all Non-competition Payments to
be made under this Paragraph 4, whether made directly by Employer or as otherwise provided herein, but shall not prevent Employee from purchasing or acquiring, as an investor only, a financial interest of less than five percent (5%) in a
business or other entity which is in competition with Employer. 
  
 Employee acknowledges that the remedy at law for breach of Employee’s agreements under this Paragraph 4 will be inadequate and that Employer shall be entitled to injunctive relief as to any violation thereof; however, nothing herein
shall be construed as prohibiting Employer from pursuing any other remedies available to it, in addition to injunctive relief, whether at law or in equity, including the recovery of damages. In the event Employee shall breach any condition of
Employee’s agreements under this Paragraph 4, then Employee’s right to any of the payments becoming due under Paragraphs 3 and 4 of this Agreement after the date of such breach shall be forever forfeited and the right of
Employee’s designated beneficiary or Employee’s estate to any payments under this Agreement shall likewise be forever forfeited. This forfeiture is in addition to and not in lieu of any of the above-described remedies of Employer and shall
be in addition to any injunctive or other relief as described herein. Employee further acknowledges that any breach of Employee’s agreements under this Paragraph 4 shall be deemed a material breach of this Agreement. 
  
 Notwithstanding the foregoing, if Employer determines that the
Non-competition Payments are compensation for other than Employee’s agreements under this Paragraph 4, and that such payments are subject to any applicable withholding, Social Security, employment, income or other taxes or assessments, if any,
under the applicable tax law, then said payments shall be subject to all such required withholdings or other taxes or assessments. 
  
 If Employee should die during said ten (10) year period, payments under this Paragraph shall terminate. Future payments, if any, to Employee’s
designated beneficiary or Employee’s Estate shall be made in accordance with the provisions of Paragraph 5 of this Agreement. 
  
 5. Continuation of Payments. Upon Employee’s death during said ten (10) year period of payments under Paragraphs 3 and 4
above, the sum of FIVE THOUSAND FOUR HUNDRED SIXTEEN and 67/100 Dollars ($5,416.67) per month shall be paid to such beneficiary or beneficiaries as Employee shall have designated in writing filed with Employer as provided in Paragraph 13 below or,
in the absence of such designation, to Employee’s estate, as applicable, beginning the first calendar month following the date of Employee’s death and continuing thereafter until the expiration of said ten (10) year period. Payments
hereunder shall be payable each month without deductions and the recipient shall be solely responsible for all income and other taxes and assessments applicable on said payments. 
  
 6. Key Employees. The purpose of this Paragraph is to comply with Section 409A of the Internal Revenue
Code of 1986, as amended (“Section 409A”), in the event any portion of this Agreement is subject to Section 409A. If Section 409A applies to this Agreement and Employer determines that Employee is a “Key Employee” for
purposes of Section 409A, then monthly Consultation Payments and Non-competition Payments shall not be payable to Employee until seven months after Employee’s Retirement Date rather than as provided in Paragraphs 3 and 4 above. 

 7. Forfeiture of Benefits. This Agreement is subject to termination by Employer at any
time and without stated cause. In the event Employer shall terminate this Agreement, Employee shall forfeit all rights to receive any payment provided for herein. Likewise, in the event Employee does not retire from employment on Employee’s
Retirement Date or Employee’s employment is terminated, either voluntarily or involuntarily, for reasons other than death or retirement, Employee shall forfeit all rights to receive any payment provided for herein. Employee acknowledges and
agrees that any benefit provided for herein is merely a contractual benefit and that nothing contained herein shall be construed as conferring upon Employee any vested benefits or any vested rights to receive any payment provided for herein and that
any and all payments provided for herein shall be subject to a substantial risk of forfeiture until such time as said payments are actually made by Employer. Employee also acknowledges that the contractual benefit provided for herein is specifically
conditioned upon Employee’s retirement from employment on Employee’s Retirement Date. 
  
 8. Claims Procedure. Any claim for benefits under this Agreement shall be made in writing to Employer. If any claim for benefits under
this Agreement is wholly or partially denied, notice of the decision shall be furnished to the claimant within a reasonable period of time, not to exceed 90 days after receipt of the claim by Employer, unless special circumstances require an
extension of time for processing the claim. If such an extension of time is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day period. In no event shall such extension exceed
the period of 90 days from the end of such initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date on which the administrator expects to render a decision. 
  
 Employer shall provide every claimant who is denied a claim for benefits
written notice setting forth, in a manner calculated to be understood by the claimant, the following: (i) specific reasons for the denial; (ii) specific reference to pertinent provisions upon which the denial is based; (iii) a
description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) an explanation of the Agreement’s claims review procedure
as set forth below. 
  
 The claimant may appeal the denial of his
claim to Employer for a full and fair review. The claimant or his duly authorized representative may request a review upon written application to Employer, review pertinent documents, and submit issues and comments in writing. A claimant (or his
duly authorized representative) shall request a review by filing a written application for review with Employer or its designee (the “Reviewer”) at any time within 60 days after receipt by the claimant of written notice of the denial of
his claim. 
  
 The decision on review shall be made by the
Reviewer, who may, in its or his discretion, hold a hearing on the denied claim; the Reviewer shall make this decision promptly, and not later than 60 days after Employer receives the request for review, unless special circumstances require
extension of time for processing, in which case a decision shall be rendered as soon as possible, but not later than 120 days after receipt of the request for review. If such an extension of time for review is required, written notice of the
extension (including the special circumstances requiring the extension of time) shall be furnished to the claimant prior to the commencement of the extension. In the event that the decision on review is not furnished within the time period set forth
in this paragraph, the claim shall be deemed denied on review. 
  
 The decision on review shall be in writing and shall include reasons for the decision, written in a manner calculated to be understood by the claimant, and specific references to the pertinent provisions in the relevant documents on which
the decision is based. 
  
 9. Assignment of Rights;
Spendthrift Clause. Neither Employee nor Employee’s estate, or any designated beneficiary shall have any right to sell, assign, transfer or otherwise convey the right to receive any payment hereunder. To the extent permitted by
law, no benefits payable under this Agreement shall be subject to the claim of any creditor of the Employee or Employee’s estate or any designated beneficiary, or to any legal process by any creditor of any such person. 

 10. Unfunded Plan. Employee and Employer do not intend that the amounts payable hereunder
be held by Employer in trust or as a segregated fund for Employee or any other person entitled to payments hereunder. The benefits provided under this Agreement shall be payable solely from the general assets of Employer, and neither Employee nor
any other person entitled to payments hereunder shall have any interest in any assets of Employer by virtue of this Agreement. Employer’s obligation under this Agreement shall be merely that of an unfunded and unsecured promise of Employer to
pay money in the future. To the extent that this Agreement may be deemed to be a “pension plan,” Employee and Employer intend that it be unfunded for federal income tax purposes, as well as for Title I of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”). 
  
 11.
Payments and Funding. Any payments under this Agreement shall be independent of, and in addition to, those under any other Plan, program or agreement which may be in effect between the parties hereto, or any other compensation payable to
Employee or Employee’s designee by Employer. This Agreement shall not be construed as a contract of employment nor does it restrict the right of Employer to discharge Employee at will or the right of Employee to terminate employment at will.

  
 Employer may, in its sole discretion, purchase an insurance
policy on the life of Employee to fund or assist in the funding of this Agreement. Employee agrees to promptly supply to Employer and its selected or prospective insurance carrier, upon request, any and all information requested, in order to enable
the insurance carrier to evaluate the risks involved in providing the insurance requested by Employer. Any and all rights to any and all benefits under such insurance policy on the life of Employee shall be solely the property of Employer and all
proceeds of such policy shall be payable by the insurer solely to Employer, as owner of such policy. Employee specifically waives any rights in any insurance policy on Employee’s life owned by Employer pursuant to this Agreement. Such policy
shall not serve in any way as security to Employee for Employer’s performance under this Agreement. The rights accruing to Employee or any designee hereunder shall be solely those of an unsecured creditor of Employer and shall be subordinate to
the rights of the depositors of Employer. 
  
 Employer may, in
its sole discretion, discharge its liabilities under this Agreement to Employee, Employee’s designated beneficiary or Employee’s estate at any time by the purchase of an annuity from a reputable insurance or similar company authorized to
do, and doing, business in South Carolina and the assignment of the rights under said annuity to the benefit of Employee, Employee’s designated beneficiary or Employee’s estate. If this option is exercised by Employer, all rights accruing
to Employee, Employee’s designated beneficiary or Employee’s estate hereunder shall be governed solely by the annuity contract and any election made under said annuity contract; and Employer shall be fully discharged from any further
liabilities to Employee, Employee’s designated beneficiary or Employee’s estate under this Agreement. 
  
 Employer may, in its sole discretion, discharge its liabilities under this Agreement to Employee, Employee’s designated beneficiary or
Employee’s estate at any time by determining the present value of the payments due hereunder, said amount to be determined by the use of the U.S. Government bond rate for the nearest year applicable to the time of the payments due
hereunder for the present value computation and once determined, by payment of said amount in a lump sum to Employee, Employee’s designated beneficiary or Employee’s estate, as applicable. 
  
 12. Survivor Annuities and QDROs. Nothing contained in this
Agreement is intended to give or shall give any spouse or former spouse of Employee or any other person any right to benefits under this Agreement by virtue of sections 401(a)(11) and 417 of the Internal Revenue Code (relating to qualified
preretirement survivor annuities and qualified joint and survivor annuities) or Internal Revenue Code sections 401(a)(13)(B) and 414(p) (relating to qualified domestic relations orders). 

 13. Designation of Beneficiary(ies). In order to designate one or more beneficiaries as
described in Paragraph 2 or 5 above, Employee shall file a written designation with Employer in the form attached as Exhibit A this Agreement. Each such designation shall specify, by name(s), the person(s) to whom any amounts payable under this
Agreement shall be paid following Employee’s death. From time to time, Employee may change or revoke a beneficiary designation without the consent of the beneficiary(ies) by filing a new beneficiary designation form with Employer, and the
filing of a new designation form automatically shall revoke any and all designation forms previously filed with Employer. A beneficiary designation form not properly filed with Employer prior to Employee’s death shall be of no force or effect
under this Agreement. 
  
 Subject to reasonable restrictions
imposed by Employer and to Employer’s right to refuse to accept such a designation for reasons satisfactory to it, Employee may designate more than one beneficiary and/or alternative or contingent beneficiaries, in which case Employee’s
designation form shall specify the relative shares and terms and conditions upon which amounts shall be paid to such multiple or alternative or contingent beneficiaries. 
  
 If, at the time of Employee’s death, (i) no beneficiary designation is on file with Employer, (ii) no
beneficiary designated by Employee has survived Employee, or (iii) there are other circumstances not covered by the beneficiary designation form on file with Employer, then Employee’s estate conclusively shall be deemed to be the
beneficiary designated to receive any amounts then remaining payable to Employee under this Agreement. 
  
 In making all determinations regarding Employee’s beneficiary, the latest designation form filed by Employee with Employer shall control, and all
changes in circumstances that occur after the filing of that designation shall be ignored. For example, if Employee’s spouse is designated as beneficiary in the latest designation filed by Employee but, thereafter, is divorced from Employee,
such designation shall remain valid until and unless Employee files a later beneficiary designation form with Employer naming a different beneficiary. 
  
 Any check for a payment under this Agreement that is issued on or before the date of Employee’s death shall remain payable to Employee and shall be
handled accordingly, whether or not the check actually is received by Employee prior to death. Any check issued after the date of Employee’s death shall be the property of Employee’s beneficiary(ies) determined in accordance with this
Paragraph 13. 
  
 14. Named Fiduciary and
Administrator. The named fiduciary shall be Employer. The named fiduciary shall have the authority to control and manage the operation and administration of this Agreement. The administration of this Agreement shall be under the supervision
of a director, officer or employee of Employer (hereinafter referred to as the “Administrator”) designated by the Board of Directors of Employer. It shall be a principal duty of the Administrator to see that this Agreement is carried out
in accordance with its terms. 
  
 15.
Suicide. In the event Employee commits suicide within two (2) years of the Effective Date of this Agreement, all payments provided for herein to be paid to Employee’s designated beneficiary or Employee’s estate shall
be forfeited. 
  
 16. Binding Effect. This
Agreement shall be binding upon Employee, his heirs, personal representatives and assigns and upon Employer, its successors and assigns. 
  
 17. Amendment of Agreement. This Agreement may be amended by a written agreement signed by Employer and Employee; provided, however,
that if Employer determines to its reasonable satisfaction that Section 409A is applicable to this Agreement and that an alteration or amendment of the Agreement is necessary or advisable in order for it the Agreement to comply with
Section 409A, then, upon written notice to Employee, Employer may unilaterally amend the Agreement in such manner and to such an extent as it reasonably considers necessary or advisable in order to comply with Section 409A. Nothing in this
Paragraph 14 shall be deemed to limit Employer’s right to terminate this Agreement at any time and without stated cause as provided in Paragraph 7. 

 18. Interpretation. Where appropriate in this Agreement, words used in the singular
shall include the plural and words used in the masculine shall include the feminine. 
  
 19. Invalid Provision. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects
as if such invalid or unenforceable provision were not contained herein. 
  
 17. Governing Law. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of South Carolina. 
  
 IN TESTIMONY WHEREOF, Employer has caused this Agreement to be
executed in its corporate name by its President, attested by its Secretary/Assistant Secretary and its corporate seal to be hereto affixed, all by the authority of its Board of Directors duly given, and Employee has hereunto set his hand and adopted
as his seal the typewritten word “SEAL” appearing beside his name, as of the day and year first above written. 
  

							
	 	 	FIRST CITIZENS BANK AND TRUST COMPANY, INC.
			
	 	 	By:	 	 /s/ Jim B. Apple

	 	 	 	 	Jim B. Apple, Chairman / CEO
				
	ATTEST:	 	 	 	 	 	 
				
	 /s/ Kimberly R. Jordan

	 	 	 	 	 	 
	Secretary/Assistant Secretary	 	 	 	 	 	 
				
	 [CORPORATE SEAL]
	 	 	 	 	 	 
				
	 	 	 	 	 /s/ William A. Loadholdt

	 	(SEAL)
	 	 	 	 	William A. Loadholdt

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