Document:

Exhibit
4.17

 

PERSONAL AND CONFIDENTIAL       
9th February 2007

 

Ian Curley

St. Ann’s

Killiney  Hill Road

Co Dublin

 

 

Dear Ian:

 

On behalf of Smurfit Kappa plc, a public limited company formed under
the laws of Ireland (“SKP”), we are pleased to offer to you, with effect from
the date hereof (the “Effective Date”) the following terms and conditions of
employment by SKP.

 

1.                                                You will be employed as Group
chief financial officer of SKP on the same terms and conditions upon which you
are currently employed by Smurfit Kappa Group Limited. In your capacity as
chief financial officer, you shall report to the Company’s chief executive
officer and oversee the financial affairs of SKP and its subsidiaries. As long
as you remain employed by SKP or one of its subsidiaries, you shall devote
substantially all of your business time and attention to SKP and its
subsidiaries and use your best efforts in furtherance of your responsibilities
for SKP and its subsidiaries; provided that, with the prior consent of the SKP
Board of Directors (the “Board”), you shall be entitled to serve on the board
of directors of up to two companies or organizations as long as such service
does not materially interfere with your obligations to SKP and its
subsidiaries. 

2.                                                Effective as of the Effective
Date, your base salary will be €710,940 per annum, paid in equal instalments in
accordance with SKP’s payroll practices. Your base salary is subject to
increase from time to time at the sole discretion of the Board.  All remuneration or payments payable to you
pursuant to this paragraph 2 or otherwise shall be subject to such tax and
other statutory deductions as are required to be deducted at source and
remitted to the appropriate revenue authorities.

3.                                                You will be entitled to (a) 30
days’ vacation annually (exclusive of public holidays), (b) use of a leased
automobile paid for by a Group Company (which automobile shall be the current
model used by you or an equivalent, renewed every four years, together with
tax, insurance, operating and maintenance costs), (c) reimbursement of
expenses, properly vouched in accordance with Group Company policies, (d)
business class travel (first class travel, where appropriate), and (e)
membership of two golf or similar clubs selected by you. In addition, for as
long as you are the Group chief financial officer, you will provide services at
the headquarters for the Group Companies in Dublin, Ireland, subject to
frequent temporary travel overseas. 

 

4.                                                You will be eligible to
participate in the existing Management Incentive Plan and any equity based
incentive plans of SKP and its subsidiaries as well as any new incentive plans
that may be created for senior executives, all in accordance with their terms.
Each of these employee benefit plans will ultimately be subject to the
supervision and periodic review of the Board or its compensation committee;
provided that your benefit package in the aggregate shall not be decreased.

5.                                                You agree that, other than
upon a dismissal for cause, SKP may terminate your employment at any time upon
12 months prior notice in writing. The Company may, at its sole option,
dispense with such notice and, in such circumstances, you will be entitled to a
payment in lieu of such notice (or part thereof) of an amount equal to the sum
of (a) your annual salary as of the date of termination, plus (b) the highest
annual bonus for the most recent three years, plus (c) the regular pension
contributions made by SKP or its subsidiaries in respect of your annual salary,
plus (d) the cash value of any perks or benefits to which you are entitled as a
result of your employment (other than participation in equity-like incentive
schemes). 

6.                                                SKP agrees that you may
terminate your employment on giving SKP 12 months prior notice in writing. On
or at any time after the giving of such notice, SKP reserves the right to pay
you, in lieu of notice, the then unexpired notice period. The amount of such
payment in lieu of notice shall be calculated by reference to the preceding
paragraph.

7.                                                You agree that if you are
dismissed for cause you will not be entitled to any notice of the termination
of your employment.

8.                                                When used herein, “cause”
shall mean (a) the commission of actual or attempted fraud, embezzlement,
theft, misappropriation, serious misconduct or gross default by you against or
in respect of a Group Company or your duties for a Group Company, which relates
to a material amount or which results in a criminal conviction or settlement
with criminal penalties or future restrictions or in material loss or damage to
that Group Company or other Group Companies; (b) the refusal or failure by you
to carry out your duties to a Group Company to a material degree, following a
written warning that dismissal may result; (c) conviction of a crime in
relation to the business or assets of a Group Company, which has, in the
reasonable opinion of the Board, a material adverse effect upon any Group
Company or its shareholders, other than (i) a violation of the Road Traffic
Acts and (ii) a criminal matter in respect of which you have been indemnified
by a Group Company and are entitled to indemnification, (d) knowing violation
of the Foreign Corrupt Practices Act, or (e) material breach of a material,
formal agreement in writing (other than this letter agreement) between you and
SKP or the Group Company by which you are employed; provided that for the
avoidance of doubt, the exclusion from this clause (e) of this letter agreement
shall not exclude breach thereof from being deemed the basis for “cause”
termination pursuant the provisions of any of clauses (a) through (d) of this
paragraph 8. For the avoidance of doubt, the termination of your employment by
a Group Company shall not be for “cause” if it results wholly or mainly from
(v) your death or disability, (w) your retirement on grounds of age or pursuant
to an early retirement plan of the Group Company that employs you, (x) your
voluntary resignation (unless you are subject to internal or external
proceedings likely to lead to a termination for “cause” at the time of such
resignation), (y) your redundancy, or (z) the Group Company that employs you
ceasing for any reason to

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be a Group
Company. When used herein, “Group Companies” means SKP and each of its
subsidiaries and Associated Companies and “Group Company” means any such
company and “Associated Company” means any company having an Equity Share
Capital (as defined in Section 155 of the Companies Act 1963) of which not less
than 20% in nominal value is beneficially owned by any Group Company.

9.                                                You agree that in the event
that your employment is terminated, you shall not during the Restricted Period:
(i) within the Restricted Area or any part thereof, carry on either directly or
indirectly, on his own behalf or on behalf of any other person, firm, company
or entity, any material business of the same or similar kind to that in which
any of the Group Companies were materially engaged in the year preceding such
termination, (ii) induce or attempt to induce any employee of any Group Company
to leave the employ of the Group Companies, or in any way interfere with the
relationship between any Group Company and any employee thereof and or (iii)
call on, solicit the custom or business of or service any customer, supplier,
licensee, licensor or other business relation of any Group Company in order to
induce or attempt to induce such person or entity to cease doing or reduce the
amount of business with any Group Company, or in any way interfere with the
relationship between any such customer, supplier, licensee or business relation
and any Group Company (including but not limited to making any negative
statements or communications about any Group Company, or any employee, director
or stockholder thereof). When used herein, (A) “Restricted Period” means the
one-year period from the date of termination; and (B) “Restricted Area” means
any area of the world where any Group Company conducted a material portion of
its business in the twelve-month period immediately preceding your termination
date. The restrictions contained in this paragraph 9 shall not restrict you from
passively owning not more than 1% of the outstanding equity securities of a
publicly traded company that competes with the Group Companies.

10.                                          You agree that all trade
secrets, confidential operations, processes or dealings, or any information
concerning the organization, business, finances, transactions and affairs,
other than information that becomes publicly available other than through
breach of this provision by you, shall be kept confidential both during the
term of this letter agreement and thereafter. All notes, memoranda, reports and
information compiled by you during your employment (in whatever form compiled)
regarding the business, affairs and operations of the Group Companies shall be
and at all times remain the property of the Group Companies.

11.                                          Upon execution of this letter
agreement by each party hereto, this letter agreement shall be binding and
enforceable upon each party hereto. This letter agreement shall, effective as
of the Effective Date, amend and supersede any other agreements) with SKP
and/or any of its subsidiaries regarding the subject matter hereof to which you
are a party; provided that your employment hereunder by SKP shall be deemed to
be contiguous with your previous employment with Smurfit Kappa Group Limited,
Smurfit Kappa Corporation Limited and/or their subsidiaries. In addition, you
agree that you hereby release and waive, without any claims or demands, all
rights under the “two-year” letter with MDCP Acquisitions plc (now known as
Smurfit Kappa Corporation Limited) dated 4 July 2002.

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12.                                          This letter agreement may be
executed in multiple counterparts (including by facsimile), each of which shall
constitute one and the same original. 
This letter agreement shall be construed in accordance with the laws of
the Republic of Ireland.

	
  

  	
   

  	
  SMURFIT KAPPA
  PLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael
  O’Riordan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Company
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Acknowledged and
  Accepted:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Ian J. Curley

  	
   

  	
   

  	
   

  
	
  Ian J. Curley

  	
   

  	
   

  	
   

  

 

 4Exhibit 4.19

 

SMURFIT KAPPA GROUP LIMITED

Beech Hill, Clonkseagh

Dublin
4, Ireland

 

February 9, 2007

PERSONAL AND CONFIDENTIAL

Dr.
Michael W.J. Smurfit

Le Florestan

35 Blvd. du Larovotto

Monaco

Dear Dr. Smurfit:

Reference is made to (i)
that certain letter agreement, dated as of October 31, 2003, by and between
Smurfit Kappa Corporation Limited (the “Corporation”) (formerly
Jefferson Smurfit Group Limited and MDCP Acquisitions plc) and you (as the same
has been or may be expressly, impliedly or by operation of law, amended,
restated, modified, supplemented or waived from time to time, together the “Employment
Letter”), (ii) that certain Shareholders and Corporate Governance
Agreement, dated as of December 1, 2005, by and among Smurfit Kappa Group
Limited (the “Company”), you and certain other shareholders of the
Company (as the same has been or may be amended, restated, modified,
supplemented or waived from time to time, the “Shareholders Agreement”),
and (iii) that certain Amended and Restated Management Equity Agreement, dated
as of December 1, 2005, by and among the Company and certain management
stockholders of the Company (as the same has been or may be amended, restated,
modified, supplemented or waived from time to time, the “Management Equity
Agreement” and, together with the Employment Letter and the Shareholders
Agreement, the “Relevant Agreements”). Capitalized terms used, but not
otherwise defined, herein shall have the meanings given to such terms in the
Shareholders Agreement.

This letter agreement
sets forth certain agreements between the Company (acting on its own behalf and
on behalf of each Group Company for which it is authorized to act) and you in
the event that a Listing becomes effective (the time of such effectiveness, the
“Effective Time”).

	
  1.

  	
  You hereby resign, with effect immediately prior to
  the Effective Time, from the boards of directors of, as chairman of, and as
  an officer and employee of each Group Company.

  
	
   

  	
   

  
	
  2.

  	
  Not later than the 30th day after the Effective
  Time, the Company shall pay to you in a single lump sum an amount equal to
  €300,000; provided that such amount shall be reduced for tax and other
  statutory deductions as are required to be deducted at source 

  

 

 

	
  

  	
  and remitted to the appropriate revenue authorities.
  The payments under this paragraph shall be in replacement of, rather than in
  addition to, any rights, whether arising out of or in connection with your
  employment by the Corporation and/or any Group Company or otherwise howsoever
  arising, that you may have under law (including, without limitation, any
  bonus entitlement or payment in lieu of notice), other than any payments due
  to you under any contract with S.I. Holdings Limited entered into on the date
  hereof. Effective as of the date of this letter agreement, your right to
  participate in any employee benefit arrangement of any Group Company will
  cease; provided, however, that the Convertible Shares (as defined in the
  Management Equity Agreement) and Ordinary Shares held by you and Bacchantes
  Two Limited will be held, for the period up to the Effective Time, in
  accordance with the terms of the Management Equity Agreement and, effective
  as of the Effective Time, in accordance with the provisions of paragraph 5 of
  this letter agreement.

  
	
   

  	
   

  
	
  3.

  	
  As material consideration for the covenants and
  agreements of the Company and the Group Companies hereunder, effective as of
  the Effective Time, you hereby release, waive, discharge and covenant not to
  sue each of the Group Companies from any and all claims, suits, demands,
  causes of action, contracts, covenants, obligations, debts, costs, expenses,
  attorneys’ fees, liabilities of whatever kind or nature in law or equity, by
  statute, common law, contract or otherwise whether now known or unknown,
  vested or contingent, suspected or unsuspected, and whether or not concealed
  or hidden, which have existed or may have existed, or which do exist, through
  the Effective Time with respect to your employment and service as a member of
  the board of directors and/or the termination of your employment and service
  as a member of the board of directors (including, without limitation, any
  rights to post-termination payment or bonus or payment in lieu of notice,
  whether arising out of or in connection with your employment by the Company
  and/or any Group Company or otherwise); provided that the foregoing
  release, waiver and discharge shall not apply to any of your rights under
  this letter agreement.

  
	
   

  	
   

  
	
  4.

  	
  When used herein, “Group Companies” means the
  Company and its subsidiaries and Associated Companies and “Group Company”
  means any such company and “Associated Company” means any company having an
  Equity Share Capital (as defined in Section 155 of the Companies Act 1963) of
  which not less than 20% in nominal value is beneficially owned by any Group
  Company.

  
	
   

  	
   

  
	
  5.

  	
  Effective as of the Effective Time, all of your
  rights and obligations, and those of Bacchantes Two Limited, against and to
  the Company and all Group Companies under the Employment Letter shall
  terminate without further liability or obligation of or to any Group Company;
  provided that, notwithstanding the foregoing, the provisions of
  paragraphs 7, 8 and 12 of the letter agreement dated October 31, 2003 by and
  between the Corporation and you shall continue in full force and effect. For
  the avoidance of doubt, until the Effective Time, all rights and obligations
  of the parties under each of the Relevant Agreements shall continue in full
  force and effect.

  
	
   

  	
   

  
	
  6.

  	
  Upon execution of this letter agreement by each
  party hereto, this letter agreement shall be binding and enforceable upon
  each party hereto; provided that in the event that the Effective Time
  does not occur on or prior to December 31, 2007, this letter agreement,

  

 

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  and the rights and obligations of the parties
  hereto, shall terminate as of December 31, 2007 without obligation or
  liability to any party hereto. Notwithstanding the foregoing, the obligations
  of the Group Companies under this letter agreement are subject to affirmative
  consent of the requisite shareholders of each Group Company for which such
  consent is required in accordance with applicable law (including, without
  limitation, the Companies Act 1963) and, if such consent is not obtained
  prior to the Effective Time, this letter agreement, and the rights and
  obligations of the respective parties hereto, shall terminate as of
  immediately prior to the Effective Time without further obligation or
  liability to any party hereto.

  
	
   

  	
   

  
	
  7.

  	
  You understand and agree that a new holding company,
  Smurfit Kappa Public Limited Company (“Holdco”) has made an exchange offer
  pursuant to which the entire issued share capital and other equity interests
  and rights of the Company may be exchanged for identical or substantially
  identical share capital and other equity interests and rights of Holdco. In
  the event that such exchange offer is completed by the Company and Holdco,
  you agree that, from and after such completion, Holdco shall be the “Company”
  for all purposes hereof.

  

 

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  8.

  	
  This letter agreement (a) shall be construed in
  accordance with the internal laws (but not the laws of conflicts) of the
  Republic of Ireland, (b) may be executed in multiple counterparts (including
  by facsimile or electronic transmission), all of which taken together shall
  constitute one and the same original, (c) may not be assigned by any party
  except with the prior written consent of the other parties hereto, (d) is for
  the benefit of the parties hereto and such parties’ Affiliates (including, in
  the case of the Company, each of the Group Companies) and representatives and
  may not be enforced by any person or entity (other than the parties hereto
  and their Affiliates and representatives), (e) represents the complete understanding
  and agreement between the parties hereto with respect to the subject matter
  hereof, and (f) may be amended, modified or supplemented only by a written
  instrument executed by each of the parties hereto. No waiver of any rights
  under this letter agreement shall be effective against any party to this
  letter agreement unless set forth in a written instrument executed by such
  party. The parties agree that this letter agreement was drafted by the
  parties hereto and the result of negotiation between sophisticated parties
  (each having received separate legal advice) and no rule of construction
  shall be applied against any party or such party’s Affiliates.

  

 

	
  

  	
  SMURFIT KAPPA GROUP LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary McGann

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  

 

Acknowledged and
Accepted as of the date first written above:

Dr. Michael W.J.
Smurfit

 

	
  /s/ Dr. Michael
  W.J. Smurfit

  	
   

  	
   

  

 

In consideration
for the waivers and other benefits conferred upon it by the above letter
agreement, Bacchantes Two Limited hereby adheres thereto and accepts, as of the
date first written above, all provisions thereof applicable to it.

	
  BACCHANTES TWO LIMITED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ J. Killip

  	
   

  	
   

  
	
  Its:

  	
  Authorised
  Signatory

  	
   

  	
   

  

 

 4

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