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EXHIBIT 10.16  

 
 

FORM OF 2003 RIVERWOOD HOLDING, INC.
  DIRECTORS STOCK INCENTIVE PLAN    
  

 
 

ARTICLE I
  PURPOSE    
  

        The purposes of the 2003 Riverwood Holding, Inc. Directors Stock Incentive Plan (the "Plan") are to enable
the Company to attract, retain and motivate the best qualified non-employee directors and to enhance a long-term mutuality of interest between the non-employee
directors and stockholders of the Company by granting eligible directors an equity interest in the Company. 

 
 

ARTICLE II
  DEFINITIONS    
  

        2.1    Definitions.    Capitalized terms used herein without definition shall have the respective meanings set forth
below: 

        "Act" means the Securities Exchange Act of 1934, as amended. 

        "Adjustment Event" means any stock dividend, stock split, share combination, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, split-up, spin-off, combination, exchange of shares or other similar event affecting the Common Stock of the Company. 

        "Affiliate" means, with respect to any person, any other person controlled by, controlling or under common control with such person. 

        "Annual Retainer Fee" means the annual fee payable to an Eligible Director for his service as a member of the Board. 

        "Award" means any Phantom Stock, Elective Share Award or Fee Share Award awarded under the Plan. 

        "Board" means the Board of Directors of the Company. 

        "Cash Fees" means the amount of any Annual Retainer Fee, Committee Chairman Retainer Fee, Meeting Fee or other fee that would, absent an
election to receive an Elective Share Award pursuant to the terms of the Plan, be payable by the Company in cash to a Participant for services to be performed by the Participant. 

        "Change in Control" has the same meaning as that given in the 2003 Riverwood Holding, Inc. Long-Term Incentive Plan 

        "Change in Control Price" means the highest price per Share offered in conjunction with any transaction resulting in a Change in Control
on a fully-diluted basis (as determined in good faith by the Board as constituted before the Change in Control, if any part of the offered price is payable other than in cash) or, in the case of a
Change in Control occurring solely by reason of a change in the composition of the Board, the highest Fair Market Value of the Stock on any of the 30 trading days immediately preceding the date on
which a Change in Control occurs. 

        "Code" means the Internal Revenue Code of 1986, as amended, and the regulations thereunder. 

        "Company" means Riverwood Holding, Inc., a Delaware corporation, and any successor thereto. 

 

        "Committee Chairman Retainer Fee" means the annual fee payable to an Eligible Director for his service as chairman of a standing committee
of the Board. 

        "Common Stock" means the common stock of the Company, par value $0.01 per share. 

        "Date of Issuance" has the meaning given in Section 5.1. 

        "Deferral Election" has the meaning given in Section 6.1. 

        "Distribution Election" has the meaning given in Section 6.3. 

        "Elective Share Award" means any award of Shares made by reason of the election of a Participant to receive Shares in lieu of Cash Fees. 

        "Eligible Director" means a director of the Company who is not, at the relevant time, an officer or employee of the Company or any of its
Subsidiaries. 

        "Fair Market Value" means, as of any date of determination, the closing price of a Share on the New York Stock Exchange (or on such other
recognized market or quotation system on which the trading prices of Common Stock are traded or quoted at the relevant time). In the event that there are no Common Stock transactions reported on such
exchange or system on such date, Fair Market Value shall mean the closing price of a Share on the immediately preceding day on which Common Stock transactions were so reported. 

        "Fee Share Award" means any award of Shares made at the discretion of the Committee in lieu of Cash Fees. 

        "Meeting Fee" means the fees payable to an Eligible Director for each Board meeting attended by such Eligible Director. 

        "Permitted Transferee" has the meaning given in Section 10.1. 

        "Phantom Stock" has the meaning given in Section 6.2. 

        "Plan" means this 2003 Riverwood Holding, Inc. Directors Stock Incentive Plan, as set forth herein and as the same may be further
amended from time to time. 

        "Plan Effective Date" means the first day of the calendar quarter commencing on or immediately after the date of consummation of the
transactions contemplated by the Merger Agreement, dated as of March 25, 2003 to which the Company is a party. 

        "Share" means a share of Common Stock. 

        "Share Award" means any Elective Share Award or Fee Share Award. 

        "Stock Account" means a memorandum account established to record the deferral of fees, pursuant to a Deferral Election and in accordance
with Section 6.2, otherwise payable to an Eligible Director, as described in Section 6.1. 

        "Subsidiary" means any corporation or other entity of which the Company owns, directly or indirectly, 50% or more of the total combined
voting power of all classes of stock or other voting or controlling equity interest in the case of an entity that is not a corporation. 

        2.2    Gender and Number.    Except when otherwise indicated by the context, words in the masculine gender used in the
Plan shall include the feminine gender, the singular shall include the plural, and the plural shall include the singular. 

2

 
 
 

ARTICLE III
  ADMINISTRATION    
  

        3.1    Powers of the Board.    This Plan shall be administered by the Board. The Board shall have the responsibility
of construing and interpreting the Plan, determining the additional terms and conditions of the Awards and of establishing and amending such rules and regulations as it may deem necessary or desirable
for the proper administration of the Plan. Any decision or action taken or to be taken by the Board arising out of or in connection with the construction, administration, interpretation and effect of
the Plan and of its rules and regulations, shall, to the greatest extent permitted by applicable law, be within its absolute discretion (except as otherwise specifically provided herein) and shall be
conclusive and binding upon the Company and its Subsidiaries, all Participants and any person claiming under or through any Participant. The Board may delegate its powers (other than the power to
amend this Plan) and functions hereunder to a duly appointed committee of the Board. All expenses incurred in the administration of the Plan, including, but not limited to, for the engagement of any
counsel, consultant or agent, shall be paid by the Company. 

        3.2    Delegation.    The Board may designate the Secretary of the Company, other officers or employees of the Company
or competent professional advisors to assist the Board in the administration of this Plan, and may grant authority to such persons to execute agreements or other documents on its behalf. 

 
 

ARTICLE IV
  STOCK SUBJECT TO PLAN    
  

        4.1    Number.    Subject to the provisions of this Article IV, the number of Shares subject to Awards under
the Plan may not exceed 250,000 Shares, plus any Shares that, after the effective date of the Plan, become available for Awards under this Plan in accordance with Section 4.2 below. Without
limiting the generality of the foregoing, whenever Shares are received by the Company in connection with the exercise of or payment for any Award granted under the Plan, only the net number of Shares
actually issued shall be counted against the foregoing limit. The Shares to be delivered under the Plan may consist, in whole or in part, of treasury stock or authorized but unissued Common Stock not
reserved for any other purpose. 

        4.2    Canceled, Terminated, or Forfeited Awards.    Any Shares subject to any Award granted hereunder which for any
reason is canceled, terminated or otherwise settled without the issuance of any Common Stock after the effective date of this Plan shall be available for further Awards under the Plan. 

        4.3    Adjustment in Capitalization.    In the event of any Adjustment Event such that an adjustment is required to
preserve, or to prevent enlargement of, the benefits or potential benefits made available under this Plan, the Board shall, in such manner as the Board shall deem equitable, adjust any or all of the
number and kind of Shares which thereafter may be awarded or sold under the Plan (including, without termination, adjusting the limits on the number and types of certain Awards that may be made under
the Plan). In addition, the Board may make provisions for a cash payment to a Participant or a person who has an outstanding Award. The number of Shares subject to any Award shall always be a whole
number. 

 
 

ARTICLE V
  FEE SHARE AWARDS AND ELECTIVE SHARE AWARDS    
  

        5.1    Fee Share Awards.    If and to the extent so determined by the Board, all or a portion of the Annual Retainer
Fee, Committee Chairman Retainer Fee and/or other fees otherwise payable to an 

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Eligible Director shall be payable in Shares, issuable as of the first day of the calendar quarter (or, with respect to the first Fee Share Award, the first day of the first calendar month after the
Plan Effective Date) with respect to which such fee would otherwise have been payable to the Participant in cash (the "Date of Issuance") and subject to
such vesting or other restrictions on delivery or transferability as the Board shall determine. Notwithstanding the foregoing, if the Date of Issuance determined in the preceding sentence is not a
business day, the grant of Shares shall be made on the next following business day. The number of Shares to be issued as a Fee Share Award as of each Date of Issuance shall equal the greatest number
of whole Shares derived from the quotient of (i) the dollar amount of the Annual Retainer Fee the Committee has determined to pay in Shares and (ii) the Fair Market Value on the Date of
Issuance. If, after the application of the preceding formula as of any Date of Issuance, there is a cash remainder, the Company shall pay the Eligible Director the amount of such cash remainder as
soon as practicable following such Date of Issuance. 

        5.2    Elective Share Awards.    With respect to Cash Fees payable for services rendered after the Plan Effective
Date, an Eligible Director may elect to have any portion of the Cash Fees that would otherwise have been payable to the Eligible Director in cash for services as a director paid in Shares. The Date of
Issuance in respect of any Cash Fees which are part of the Eligible Director's Annual Retainer Fee shall be the first day of the calendar quarter with respect to which such Cash Fees would otherwise
have been payable to the Eligible Director, and in respect of any other Cash Fees, as of the
date with respect to which such Cash Fees would otherwise have been payable to the Eligible Director. Notwithstanding the foregoing, if the Date of Issuance determined in the preceding sentence is not
a business day, the grant of Shares shall be made on the next following business day. The number of Shares to be issued as an Elective Share Award as of each Date of Issuance shall equal the greatest
number of whole Shares derived from the quotient of (i) the dollar amount of the Cash Fees elected to be paid in Shares at such Date of Issuance in accordance with the second preceding sentence
and (ii) the Fair Market Value on the Date of Issuance. If, after the application of the preceding formula as of any Date of Issuance, there is a cash remainder, the Company shall pay the
Eligible Director the amount of such cash remainder as soon as practicable following such Date of Issuance. 

 
 

ARTICLE VI
  DEFERRED COMPENSATION PROGRAM    
  

        6.1    Deferral Election.    

        (a)  An
Eligible Director may, by written notice filed with the Secretary of the Company, elect to defer receipt of all or any part of any Cash Fees or Share Awards payable
to such Eligible Director in respect of the calendar year and to have such amounts credited, in whole or in part, to a Stock Account, in accordance with Section 6.2 (such written notice, a
"Deferral Election"). Any such election shall be made (i) as to which the Date of Issuance is in the same calendar year in which the Plan becomes
effective, within thirty days of the Plan Effective Date and (ii) with respect to any other Cash Fees or Share Awards, by December 31 of the calendar year prior to the year in which the
Date of Issuance would otherwise occur. Notwithstanding the immediately preceding sentence, any person who becomes an Eligible Director after the adoption of the Plan may elect, not later than the end
of the calendar month in which the Eligible Director becomes a member of the Board, to defer receipt of any Cash Fees or delivery of all or any part of the Shares deliverable in respect of any Share
Award payable following such election. 

        (b)  A
Deferral Election shall continue in effect (including with respect to fees payable for subsequent calendar years) unless and until the Eligible Director revokes or
modifies such Deferral Election by written notice filed with the Secretary of the Company. Any such revocation or modification of a Deferral Election shall apply only with respect to the deferral of
all or any part of any Cash Fees or Share Awards payable to such Eligible Director in respect of calendar years following 

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the year in which such revocation or modification is made, provided that such revocation or modification shall in no event become effective earlier
than six months after it is received by the Secretary of the Company. Amounts credited to the Eligible Director's Stock Account prior to the effective date of any such revocation or modification of a
Deferral Election shall not be affected by such revocation or modification and shall be distributed only in accordance with the otherwise applicable terms of the Plan. An Eligible Director who has
revoked a Deferral Election may file a new
Deferral Election, provided that such Deferral Election shall be effective no sooner than in the calendar year following the year in which such Deferral
Election is filed. 

        6.2    Stock Account.    Any Cash Fees deferred pursuant to a Deferral Election shall be deemed to be invested in a
number of notional Shares of the Company (the "Phantom Stock") equal to the quotient of (i) the amount of such fees divided by (ii) the
Fair Market Value of a Share on the date the fees would have been payable. Any Share Award as to which a Participant has elected to defer delivery of the Shares shall be credited to the Participant's
Stock Account and shall be deemed to be invested in a number of shares of Phantom Stock equal to the number of Shares that would otherwise have been delivered to the Participant. Whenever a dividend
other than a dividend payable in the form of Shares is declared with respect to the Shares, the number of Phantom Stock in the Eligible Director's Stock Account shall be increased by the number of
Phantom Stock determined by dividing (i) the product of (A) the number of Phantom Stock in the Eligible Director's Stock Account on the related dividend record date and (B) the
amount of any cash dividend declared by the Company on a Share (or, in the case of any dividend distributable in property other than Shares, the per Share value of such dividend, as determined by the
Company for purposes of income tax reporting) by (ii) the Fair Market Value of a Share on the related dividend payment date. In the case of any dividend declared on Shares which is payable in
Shares, the Eligible Director's Stock Account shall be increased by the number of Phantom Stock equal to the product of (i) the number of Phantom Stock credited to the Eligible Director's Stock
Account on the related dividend record date and (ii) the number of Shares (including any fraction thereof) distributable as a dividend on a Share. In the event of any change in the number or
kind of outstanding Shares by reason of any Adjustment Event affecting the Shares, other than a stock dividend as provided above, the Board shall make an appropriate adjustment in the number of
Phantom Stock credited to the Eligible Director's Stock Account. Fractional Phantom Stock shall be credited, but shall be rounded to the nearest hundredth of a Share. 

        6.3    Distribution from Accounts Upon Termination of Service as a Director.    At the time an Eligible Director makes
a Deferral Election pursuant to Section 6.1(a), the Eligible Director shall also file with the Secretary of the Company a written election (a "Distribution
Election") with respect to whether (i) the value of any Phantom Stock to be credited to the Stock Account shall be distributed wholly in cash, in the greatest number of
whole Shares (with any fractional interest payable in cash) or a combination of cash and whole Shares, (ii) such distribution shall commence immediately following the date the Eligible Director
ceases to be a director or on the first business day of any calendar year following the calendar year in which the Eligible Director ceases to be a director and (iii) such distribution shall be
in one lump-sum payment or in such number of annual installments (not to exceed ten) as the Eligible Director may designate. An Eligible Director may at any time, and from time to time,
change any Distribution Election applicable to his or her Stock Account, provided that no election to change the timing of any terminal distribution shall be effective unless it is made in writing and
received by the Secretary of the Company at least one full calendar year prior to the time at which the Eligible Director ceases to be a director. 

        6.4    Distribution from Stock Account Prior to Termination of Service as a Director.    Any Eligible Director may, by
filing a written election with the Secretary of the Company, elect to receive a distribution of all or any portion of the amounts credited to the Eligible Director's Stock Account as of a date which
is at least one full year after the date as of which a Deferral Election is filed with the Secretary; provided that, any Eligible Director who elects to
receive a distribution pursuant to this 

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Section 6.4 shall cease to be eligible to make any additional deferrals under this Article VI with respect to fees payable in the two calendar years immediately following the year in
which such election is filed with the Secretary. 

        6.5    Payment of Plan Distributions.    Any distribution to be made hereunder, whether in the form of a
lump-sum payment or installments, following the termination of an Eligible Director's service as a director shall commence in accordance with the Distribution Election made by the Eligible
Director in accordance with Section 6.3. If an Eligible Director fails to specify a form of payment or a commencement date for a distribution in accordance with Section 6.3, such
distribution shall be made in cash and commence on the first business day of the calendar year immediately following the year in which the Eligible Director ceases to be a director. If an Eligible
Director fails to specify in accordance with Section 6.3 that a distribution shall be made in a lump-sum payment or a number of installments, such distribution shall be made in a
lump-sum payment. In the case of any distribution being made in annual installments, each installment after the first installment shall be paid on the first business day of each subsequent
calendar year until the entire amount subject to such installment Distribution Election shall have been paid. 

 
 

ARTICLE VII
  CHANGE IN CONTROL    
  

        In the event of a Change in Control, all Awards shall become nonforfeitable and be immediately transferable or payable, as the case may be. In the event that any
Change in Control occurs as a result of any transaction described in subclause (c) or (e)of the definition of such term, any Eligible Director who ceases to be an Eligible Director due to death
or disability or for any reason other than misconduct as a director on or after the date, if any, on which the shareholders of the Company approve such transaction, but prior to the consummation
thereof, shall be treated, solely for purposes of this Plan (including, without limitation, this Article VII), as continuing to serve as an Eligible Director until the occurrence of such Change
of Control. 

 
 

ARTICLE VIII
  RIGHTS AS A STOCKHOLDER    
  

        An Eligible Director (or a Permitted Transferee) shall have no rights as a stockholder with respect to any Shares covered by an Award until he or she shall have
become the holder of record of such Share(s), and no adjustments shall be made for dividends in cash or other property or distribution or other rights in respect to any such Shares, except as
otherwise specifically provided for in this Plan. 

 
 

ARTICLE IX
  AMENDMENT, MODIFICATION, AND TERMINATION OF PLAN    
  

        The Board at any time may terminate or suspend the Plan, and from time to time may amend or modify the Plan,  provided that no amendment,
modification, or termination of the Plan shall in any manner adversely affect any Award theretofore granted under the Plan,
without the consent of the holder thereof. 

 
 

ARTICLE X
  MISCELLANEOUS PROVISIONS    
  

        10.1    Nontransferability of Awards.    No Award shall be assignable or transferable except by will or the laws of
descent and distribution or as may be permitted by the Board. 

        10.2    Beneficiary Designation.    Each Eligible Director under the Plan may from time to time name any beneficiary
or beneficiaries (who may be named contingently or successively) to whom any benefit 

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under the Plan is to be paid or by whom any right under the Plan is to be exercised in case of his death. Each designation will revoke all prior designations by the same Eligible Director, shall be
in a form prescribed by the Company, and will be effective only when filed by the Eligible Director in writing with the Company during his lifetime. In the absence of any such designation, benefits
remaining unpaid at the Eligible Director's death shall be paid to or exercised by the Eligible Director's surviving spouse, if any, or otherwise to or by his estate. 

        10.3    No Right to Serve as a Director.    This Plan shall not impose any obligations on the Company to retain any
Eligible Director as a director nor shall it impose any obligation on the part of any Eligible Director to remain as a director of the Company, provided that each Eligible Director by accepting each
Award shall represent to the Company that it is his good faith intention to continue to serve as a director of the Company until the next annual meeting of shareholders and that he agrees to do so
unless a change in circumstances arises. 

        10.4    Withholding Taxes.    The Company shall have the right to deduct from all amounts paid to an Eligible Director
in cash (whether under this Plan or otherwise) any taxes required by law to be withheld in respect of Awards under this Plan. In the case of any Award satisfied in the form of Shares, no shares shall
be issued unless and until arrangements satisfactory to the Board shall have been made to satisfy
any withholding tax obligations applicable with respect to such Award. Without limiting the generality of the foregoing, the Company shall have the right to retain, or the Board may, subject to such
terms and conditions as it may establish from time to time, permit an Eligible Director to elect to tender, Shares (including Shares issuable in respect of an Award) to satisfy, in whole or in part,
the amount required to be withheld (but no greater amount). 

        10.5    No Limit on Corporate Action.    The existence of this Plan and Shares granted hereunder shall not affect in
any way the right or power of the Board or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company's capital structure or
its business, any merger or consolidation of the Company, any issuance of bonds, debentures, preferred or prior preference stocks ahead of or affecting Common Stock, the dissolution or liquidation of
the Company or any sale or transfer of all or part of its assets or business, or any other corporate act or proceeding. 

        10.6    No Right to Particular Assets.    Nothing contained in this Plan and no action taken pursuant to this Plan
shall create or be construed to create a trust of any kind or any fiduciary relationship between the Company and any Eligible Director, the executor, administrator or other personal representative or
designated beneficiary of such Eligible Director, or any other persons. Any reserves that may be established by the Company in connection with this Plan shall continue to be part of the general funds
of the Company, and no individual or entity other than the Company shall have any interest in such funds until paid to an Eligible Director. To the extent that any Eligible Director or his executor,
administrator, or other personal representative, as the case may be, acquires a right to receive any payment from the Company pursuant to this Plan, such right shall be no greater than the right of an
unsecured general creditor of the Company. 

        10.7    Compliance with Legal and Exchange Requirements.    The Plan, the granting and exercising of Awards
thereunder, and any obligations of the Company under the Plan, shall be subject to all applicable federal and state laws, rules, and regulations, and to such approvals by any regulatory or
governmental agency as may be required, and to any rules or regulations of any Exchange on which the Shares are listed. If at any time the Board shall determine in its discretion that the listing,
registration or qualification of the Shares covered by this Plan upon any national securities exchange or under any United States or non-United States federal, state or other law, or the
consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the delivery of Shares under this Plan, no Shares will be delivered unless
and until such listing, registration, qualification, consent or approval shall have been effected or obtained, or otherwise provided for, free 

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of any conditions not acceptable to the Board. The Company, in its discretion, may require an Eligible Director to make such representations and furnish such information as it may consider
appropriate in connection with the issuance or delivery of Common Stock in compliance with applicable laws, rules, and regulations. The Company shall not be obligated by virtue of any provision of the
Plan to recognize any Award or to otherwise sell or issue Common Stock in violation of any such laws, rules, or regulations. 

        10.8    Issuance of Stock Certificates; Legends.    Certificates for Shares issued hereunder shall bear such legend or
legends as the Board, in its discretion, determines to be necessary or appropriate to prevent a violation of, or to perfect an exemption from, the registration requirements of the Securities Act of
1933, as amended, or to implement the provisions of any agreements between the Company and the Eligible Director with respect to such Shares. 

        10.9    Agents and Indemnification.    The Board may employ such legal counsel, consultants and agents as it may deem
desirable for the administration of this Plan, and may rely upon any opinion received from any such counsel or consultant and any computation received from any such consultant or agent. No member or
former member of the Board or any committee thereof or any person designated pursuant to Section 3.2 above shall be liable for any action or determination made in good faith with respect to
this Plan. To the maximum extent permitted by applicable law and the Company's Certificate of Incorporation and Bylaws, each member or former member of the Board or any committee thereof or any person
designated pursuant to Section 3.2 above shall be indemnified and held harmless by the Company against any cost, expense (including counsel fees) or liability (including any sum paid in
settlement of a claim with the approval of the Company) arising out of any act or omission to act in connection with this Plan, unless arising out of such person's own fraud or bad faith. Such
indemnification shall be in addition to any rights of indemnification the person may have as a director, officer or employee or under the Certificate of Incorporation of the Company or the Bylaws of
the Company. 

        10.10    Notices.    Each Eligible Director shall be responsible for furnishing the Board with the current and proper
address for the mailing of notices and delivery of agreements and Shares. Any notices required or permitted to be given shall be deemed given if directed to the person to whom addressed at such
address and mailed by regular United States mail, first-class and prepaid. If any item mailed to such address is returned as undeliverable to the addressee, mailing will be suspended until the
Eligible Director furnishes the proper address. 

        10.11    Severability of Provisions.    If any provision of this Plan shall be held invalid or unenforceable, such
invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and enforced as if such provision had not been included. 

        10.12    Governing Law.    The Plan shall be construed in accordance with and governed by the laws of the State of New
York, without reference to principles of conflict of laws which would require application of the law of another jurisdiction, except to the extent that the corporate law of the State of Delaware
specifically and mandatorily applies. 

        10.13    Headings and Captions.    The headings and captions herein are provided for reference and convenience only,
shall not be considered part of this Plan, and shall not be employed in the construction of this Plan. 

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QuickLinks

FORM OF 2003 RIVERWOOD HOLDING, INC. DIRECTORS STOCK INCENTIVE PLAN

ARTICLE I PURPOSE

ARTICLE II DEFINITIONS

ARTICLE III ADMINISTRATION

ARTICLE IV STOCK SUBJECT TO PLAN

ARTICLE V FEE SHARE AWARDS AND ELECTIVE SHARE AWARDS

ARTICLE VI DEFERRED COMPENSATION PROGRAM

ARTICLE VII CHANGE IN CONTROL

ARTICLE VIII RIGHTS AS A STOCKHOLDER

ARTICLE IX AMENDMENT, MODIFICATION, AND TERMINATION OF PLAN

ARTICLE X MISCELLANEOUS PROVISIONSQuickLinks
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EXHIBIT 10.19
  EXECUTION COPY 

 
 

SECOND AMENDED AND RESTATED
  EMPLOYMENT AGREEMENT    
  

        This AMENDED AND RESTATED EMPLOYMENT AGREEMENT is entered into as of this March 25, 2003, by and among Riverwood International Corporation, a Delaware
corporation ("Employer"), Riverwood Holding, Inc., a Delaware corporation ("Holding"), and
Stephen M. Humphrey ("Executive"). 

W
I T N E S
S E T H: 

        WHEREAS,
Employer currently employs Executive as its President and Chief Executive Officer pursuant to an Amended and Restated Employment Agreement, dated as of January 1, 2002
(the "Prior Agreement"); 

        WHEREAS,
Holding is entering into a Merger Agreement, dated as of the date hereof, with Golden Corporation (the "Merger Agreement"); 

        WHEREAS,
Holding, Employer and Executive desire to amend the Prior Agreement, to become effective on the "Effective Date" (as defined in the Merger Agreement). 

        NOW,
THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, Employer and Executive hereby agree and the Prior
Agreement is hereby amended and restated in its entirety, as follows: 

        1.    Agreement to Employ.    Effective as of the "Effective Date" (as defined in the Merger Agreement), upon the
terms and subject to the conditions of this Agreement, Employer hereby continues to employ Executive, and Executive hereby accepts continued employment by Employer. 

        2.    Term; Position and Responsibilities.    

        (a)    Term of Employment.    Unless Executive's employment shall sooner terminate pursuant to Section 7,
Employer shall employ Executive for a term commencing on the date of hereof and ending on March 31, 2007 (the "Term"). The expiration of the Term
shall not constitute a termination of employment by Employer. The period during which Executive is employed pursuant to this Agreement shall be referred to as the "Employment Period". 

        (b)    Position and Responsibilities.    

          (i)  During
the Employment Period, Executive shall continue to serve as President and Chief Executive Officer of Employer and Holding and have such duties and
responsibilities as are customarily assigned to individuals serving in such position including, but not limited to, supervising, coordinating and managing (x) Holding's Newco's and its
subsidiaries' business, operations, activities, operating expenses and capital allocation, and (y) matters relating to officers and employees, (including, but not limited to, hiring,
terminating, changing positions and allocating responsibilities of such officers and employees). Executive shall be the senior-most executive officer of Holding and all officers will
report directly or indirectly to the Executive (it being understood that the Executive Chairman of the Board of Directors shall not report to the Executive). The Executive shall consult with the
Executive Chairman of the Board of Directors of Holding prior to presenting to the Board of Directors of Holding for its approval (A) any
significant strategic decision or (B) a decision as to the hiring, termination, promotion, assignment of duties, compensation or other similar
items with respect to any similar item with respect to any executive who will report directly to the Executive. During the Employment Period, Executive shall be a member of the Board of Directors of
Holding and of Employer. 

        (ii)  During
the Employment Period, Executive will devote all of his skill, knowledge and working time (except for
(A) vacation time as set forth in Section 6(c) hereof and absence for 

 

sickness or similar disability and (B) to the extent that it does not interfere with the performance of Executive's duties hereunder,
(I) such reasonable time as may be devoted to service on boards of directors and the fulfillment of civic responsibilities and
(II) reasonable time as may be necessary from
time to time for personal financial matters) to the conscientious performance of the duties of such position or positions. 

        3.    Base Salary.    

        (a)
During the Employment Period, Employer will pay Executive an annual base salary of $950,000 for the period commencing on April 1, 2003 and ending on March 31, 2004 and
$1,000,000 for the period commencing on April 1, 2004. 

        (b)
The annual amounts payable to Executive under this Section 3, as the same may be increased from time to time and without regard to any reduction therefrom in accordance with
the next sentence, shall hereinafter be referred to as the "Base Salary".) The Base Salary payable under this Section 3 shall be reduced to the
extent that Executive elects to defer such Base Salary under the terms of any deferred compensation, savings plan or other voluntary deferral that arrangement may be maintained or established by
Employer. Employer shall pay Executive the Base Salary in monthly installments, or in such other installments as may be mutually agreed upon by Employer and Executive. 

        4.    Incentive Compensation Arrangements.  

        (a)    Incentive Compensation.    During the Employment Period, Executive shall participate in
Employer's incentive compensation programs for its executive officers existing from time to time, at a level commensurate with his position and duties with Employer, which programs shall provide an
aggregate annual target bonus of 100% of Base Salary (with a maximum annual bonus opportunity equal to 200% of Base Salary), based on such performance targets as may be established from time to time
by Employer's Board or a committee thereof. 

        (b)    Certain Equity-Related Matters.    

          (i)  As
of the Effective Date, the vesting provision of the "Special Performance Options" granted under the Management Stock Option Agreement, dated as of January 1,
2002, between Executive and Holding (the "MSOA") set forth in Section 3(c) thereof, shall be amended so that one-third of such
options are vested as of the Effective Date, one-third shall vest on the second anniversary of the Effective Date and one-third shall vest on the third anniversary of the
Effective Date, in each case subject to Executive's continued employment through such date. The awards contemplated by this paragraph will otherwise have the same terms and conditions regarding
acceleration of vesting as provided in the MSOA. 

        (ii)  Of
the unvested "performance options" that have previously been granted to Executive under any Holding stock incentive plan, 75,000 will be exchanged, as of the
Effective Date, for 15,000 new stock
options and 22,500 restricted units (those options with the shortest remaining original term being so exchanged first). Such stock options will have an exercise price of $100 per share (appropriately
adjusted to reflect any stock split). Such stock options and restricted units will generally vest based on continued employment in 3 equal annual installments, commencing on the first anniversary of
the Effective Date. The remaining unvested performance options shall, effective as of the Effective Date vest in the same manner as provided in the preceding sentence. The awards contemplated by this
paragraph will otherwise have the same terms and conditions regarding acceleration of vesting as provided in the MSOA. 

        5.    Employee Benefits.    (a) During the Employment Period,
employee benefits, including life, medical, dental, accidental death and dismemberment, business travel accident, prescription drug and disability insurance, will be provided to Executive in
accordance with the programs of Employer then available to senior executive employees, as the same may be amended and in effect from time to time 

2

 

(the "Health and Welfare Benefits"). Executive shall also be entitled to participate in all of Employer's profit sharing, pension, retirement, deferred compensation and savings plans, as the same may
be amended and in effect from time to time, applicable to senior executives of Employer. The benefits referred to this Section 5 shall be provided to Executive on a basis that is commensurate
with Executive's position and duties with the Company hereunder and that is no less favorable than that of similarly situated employees of Employer. 

        (b)    Supplemental Retirement Benefit.    Upon Executive's retirement following the expiration of the Term or
following a termination of Executive's services prior to the expiration of the Term by Employer other than for Cause or by Executive for Good Reason, Employer shall provide Executive with a
supplemental retirement benefit equal to the difference, if any, between (i) the combined benefits provided for under the Riverwood International
Employees Retirement Plan and Supplemental Pension Plan, and (ii) such benefits calculated as if Executive had 10 years service with
Employer. For purposes of calculating the benefits payable pursuant to this Section 5(b), (y) the same assumptions, elections, and other
matters used in determining Executive's benefit under the Riverwood International Employees Retirement Plan shall apply, and (z) only Executive's
compensation as President and Chief Executive Officer shall be taken with account. 

        6.    Perquisites and Expenses.    

        (a)    General.    During the Employment Period, Executive shall be entitled to participate in all special benefit or
perquisite programs generally available from time to time to senior executive officers of Employer, on the terms and conditions then prevailing under each such program. 

        (b)    Business Travel, Lodging, etc.    Employer shall reimburse Executive for reasonable travel, lodging, meal and
other reasonable expenses incurred by him in connection with his performance of services hereunder upon submission of evidence, satisfactory to Employer, of the incurrence and purpose of
each such expense and otherwise in accordance with Employer's business travel reimbursement policy applicable to senior executives as in effect from time to time. 

        (c)    Vacation.    Executive shall be entitled to such vacation as is available under the prevailing policies of
Employer but not less than the greater of five weeks of paid vacation or the number of weeks of paid vacation per year calculated in accordance with Employer's vacation policy applicable to senior
executives, without carry-over accumulation. 

        7.    Termination of Employment.    

        (a)    Termination Due to Death or Disability.    In the event that Executive's employment hereunder terminates due to
death or is terminated by Employer due to Executive's Disability (as defined below), no termination benefits shall be payable to or in respect of Executive except as provided in
Section 7(f)(ii). For purposes of this Agreement, "Disability" shall mean a physical or mental disability that prevents the performance by Executive of his duties hereunder lasting for a
continuous period of six months or longer. The determination of Executive's Disability shall be made by an independent physician who is reasonably acceptable to Employer and Executive and shall be
final and binding and shall be based on such competent medical evidence as shall be presented to it by Executive or by any physician or group of physicians or other competent medical experts employed
by Executive and/or Employer to advise such independent physician. 

        (b)    Termination by Employer for Cause.    During the Employment Period, Executive may be terminated for "Cause" by
Employer; provided, however, that Executive shall be permitted to attend a meeting of Employer's Board within thirty days after delivery to him of a Notice of Termination pursuant to this
Section 7(b) to explain why he should not be terminated for Cause and, if following any such explanation by Executive, Employer's Board determines that Employer does not have Cause to terminate
Executive's employment, any such prior Notice of Termination delivered to Executive shall thereupon be withdrawn and of no further force or effect. "Cause" shall mean
(i) the willful failure of 

3

 

Executive substantially to perform his duties hereunder (other than any such failure due to physical or mental illness) or other willful and material breach by Executive of any of his obligations
hereunder or under the Option Agreement, after a demand for substantial performance is delivered, and a reasonable opportunity to cure is given, to Executive by Employer's Board, which demand
identifies the manner in which Employer's Board believes that Executive has not substantially performed his duties or breached his obligations,
(ii) Executive's engaging in willful and serious misconduct that has caused or would reasonably be expected to result in material injury to
Employer or any of its affiliates or (iii) Executive's conviction of, or entering a plea of nolo contendere  to, a crime that constitutes a felony.

        (c)    Termination Without Cause.    A termination "Without Cause" shall mean a termination of employment by Employer
other than due to Disability as described in Section 7(a) or for Cause as defined in Section 7(b) or a failure of the Executive to be elected to the Holding Board of Directors. 

        (d)    Termination by Executive.    Executive may terminate his employment for any reason. A termination of employment
by Executive for "Good Reason" shall mean a termination of employment by Executive within 30 days following the occurrence of any of the following events without Executive's consent:
(i) the assignment to Executive of duties that are significantly different from and that result in a substantial diminution of the duties that he
is to assume on the date hereof, (ii) the failure of Employer to obtain the assumption of this Agreement by any successor as contemplated by
Section 14, (iii) a reduction of Executive's Base Salary, or (iv) a material breach
by Employer of any of its obligations hereunder or by Holding under the Option Agreement or any other option agreement or incentive award agreement granted to Executive;  provided that, in the case of
any of clauses (i), (iii) or (iv), Executive has delivered written notice of his intention to terminate his
employment for "Good Reason", specifying the provisions hereof on which Executive will rely, and Employer or Holding, as the case may be, shall have had a reasonable opportunity to cure. 

        (e)    Notice of Termination.    Any termination by Employer pursuant to Section 7(a), 7(b) or 7(c), or by
Executive pursuant to Section 7(d), shall be communicated by a written "Notice of Termination" addressed to the other parties to this Agreement. A "Notice of Termination" shall mean a notice
stating that Executive's employment with Employer has been or will be terminated. 

        (f)    Payments Upon Certain Terminations.    

          (i)  In
the event of a termination of Executive's employment by Employer Without Cause or a termination by Executive of his employment for Good Reason during the Employment
Period, Employer shall pay to Executive (or, following his death, to Executive's beneficiary) (A) his Base Salary, payable in installments based
on Employer's regular payroll practices, for the period beginning on the Date of Termination and ending on the earlier of (x) the last day of the
Term, and (y) the third anniversary of the Date of Termination (the "Severance Period") and
(B) if, as of the Date of Termination, the Company has achieved the performance objectives established under the Company's annual incentive
compensation plan for the calendar year that includes the Date of Termination, pro rated on the basis of the fraction described in the immediately following clause (B)(2) hereof, an amount,
payable in one lump sum as soon as reasonably practicable following receipt by Employer of Employer's or Holding's financial statements for such calendar year (accompanied by an audit report of its
accountants) through the Date of Termination, equal to the product of (1) the amount of incentive compensation that would have been payable to
Executive for such calendar year under the annual incentive compensation plan had he remained employed for the entire calendar year, multiplied by
(2) a fraction, the numerator of which is equal to the number of days in such calendar year that precede the Date of Termination and the
denominator of which is equal to 365 (such product, the "Pro Rata Bonus"), less (C) any amount paid or payable to Executive under the terms of
any severance plan or program of Holding, Employer or any of their respective subsidiaries as in effect on the Date of Termination; provided that
Employer may, at any time, pay to Executive in a single lump sum and in satisfaction of 

4

 

Employer's obligations under clauses (A) and (B) of this Section 7(f)(i), an amount equal to (x) the installments of the
Base Salary then remaining to be paid to Executive pursuant to clause (A) above, and the amount, if any, then remaining to be paid to Executive pursuant to clause (B) above, less
(y) the
amount, if any, remaining to be paid to Executive pursuant to any plan or program identified under clause (C) above. If Executive's employment shall terminate and he is entitled to receive
continued payments of his Base Salary under clause (A) of this Section 7(f)(i), Employer shall (x) continue to provide to Executive
during the Severance Period the life, medical, dental, accidental death and dismemberment and prescription drug benefits referred to in Section 5 (the "Continued Benefits") and
(y) reimburse Executive for expenses incurred by him for outplacement and career counseling services provided to Executive for an aggregate
amount not in excess of the lesser of (i) $25,000 and (ii) 20% of Executive's Base Salary.
Executive shall not have a duty to mitigate the costs to Employer under this Section 7(f)(i), except that payments of Base Salary and Continued Benefits shall be reduced or canceled to the
extent of any compensation, fees or comparable benefit coverage earned by (whether or not paid currently) or offered to Executive during the Severance Period by a subsequent employer or other entity
for whom Executive performs services including consulting services. 

        (ii)  If
Executive's employment shall terminate upon his death or Disability or if Employer shall terminate Executive's employment for Cause or Executive shall terminate his
employment without Good Reason during the Employment Period, Employer shall pay Executive his full Base Salary through the Date of Termination, plus, in the case of termination upon Executive's death
or Disability, if the Company has achieved the pro rated performance target for such calendar year (determined as provided in Section 7(e)(ii)), the Pro Rata Bonus for the portion of the
calendar year preceding Executive's Date of Termination (exclusive of any time between the onset of a physical or mental disability that prevents the performance by Executive of his duties hereunder
and the resulting Date of Termination), plus in the case of termination upon Executive's death, his full Base Salary for the remainder of the pay period in which death occurs and for one month
thereafter. 

        (iii)  Any
benefits payable to Executive under any otherwise applicable plans, policies and practices of Employer shall not be limited by this Section 7(e), other than
any such severance plan. 

        (g)    Date of Termination.    As used in this Agreement, the term "Date of Termination" shall mean
(i) if Executive's employment is terminated by his death, the date of his death, (ii) if
Executive's employment is terminated by Employer for Cause, the date on which Notice of Termination is given or, if later, the date of termination specified in such Notice, as contemplated by
Section 7(e), and (iii) if Executive's employment is terminated by Employer Without Cause, due to Executive's Disability or by Executive
for any reason, 30 days after the date on which Notice of Termination is given as contemplated by Section 7(e) or, if no such Notice is given, 30 days after the date of
termination of employment. 

        (h)    Resignation from Board Memberships.    Effective as of any Date of Termination under this Section 7 or
otherwise as of the date of Executive's termination of employment with Employer, Executive shall resign, in writing, from all Board memberships then held by him on the Boards of Holding, Employer or
any of their respective subsidiaries, if so requested by the Board of Directors of Holding. 

        8.    Unauthorized Disclosure.    During the period of Executive's employment with Employer and the ten year period
following any termination of such employment, without the prior written consent of Employer's Board or its authorized representative, except to the extent required by an order of a court having
apparent jurisdiction or under subpoena from an appropriate government agency, in which event,
Executive will use his best efforts to consult with Employer's Board prior to responding to any such order or subpoena, and except as required in the performance of his duties hereunder, Executive 

5

 

shall not disclose any confidential or proprietary trade secrets, customer lists, drawings, designs, information regarding product development, marketing plans, sales plans, manufacturing plans,
management organization information (including data and other information relating to members of Employer's Board, the Board of Directors of Holding and management of Employer or Holding), operating
policies or manuals, business plans, financial records, packaging design or other financial, commercial, business or technical information relating to Holding, Employer or any of their respective
subsidiaries or affiliates that Holding, Employer or any of their respective subsidiaries or affiliates may receive belonging to suppliers, customers or others who do business with Holding, Employer
or any of their respective subsidiaries or affiliates (collectively, "Confidential Information") to any third person unless such Confidential Information has been previously disclosed to the public or
is in the public domain (other than by reason of Executive's breach of this Section 8). 

        9.    Non-Competition.    During the period of Executive's employment and, following any termination
thereof, the period ending on the later of (i) the first anniversary of the Date of Termination and
(ii) the last day of the Severance Period, Executive shall not, directly or indirectly, engage in business with, serve as an agent or consultant
to, become a partner, member, principal or stockholder (other than a holder of less than 1% of the outstanding voting shares of any publicly held company) of or become employed in an executive
capacity by, any person, firm or other entity that competes or has a reasonable potential for competing anywhere in the United States or Europe with any part of the business of Holding, Employer or
any of their respective subsidiaries that relates to producing, marketing, manufacturing, designing or installing packaging or paper products, machines or related materials. Whether any such person,
firm or entity so competes or so has a reasonable potential for competing shall be determined in good faith by Employer's Board. For purposes of this Section 9, the phrase employment "in an
executive capacity" shall mean employment in any position in connection with which Executive has or reasonably would be viewed as having powers and authorities with respect to any other person, firm
or other entity or any part of the business thereof that are substantially similar, with respect thereto, to the powers and authorities assigned to the President and Chief Executive Officer of
Employer in the By-Laws of Employer as in effect on the date hereof, a copy of the relevant portions of which has been delivered to and reviewed by Executive in connection with the Prior
Agreement.. 

        10.    Non-Solicitation of Employees.    During the period of Executive's employment and, following any
termination thereof, the period ending on the third anniversary of the Date of Termination (such periods collectively, the "Restriction Period"), Executive shall not, directly or indirectly, for his
own account or for the account of any other person or entity with which he is or shall become associated in any capacity, (a) solicit for
employment, employ or otherwise interfere with the relationship of Holding, Employer or any of their respective subsidiaries with, any person who at any time during the six months preceding such
solicitation, employment or interference is or was employed by or otherwise engaged to perform services for Holding, Employer or any of their respective subsidiaries, other than any such solicitation
or employment during Executive's employment with Holding and Employer on behalf of Holding, Employer or any of their respective subsidiaries, or
(b) induce any employee of Holding, Employer or any of their respective subsidiaries who is a member of management to engage in any activity
which Executive is prohibited from engaging in under any of Sections 8, 9, 10 or 11 hereof or to terminate his employment with Employer. 

        11.    Non-Solicitation of Customers.    During the Restriction Period, Executive shall not, directly or
indirectly, solicit or otherwise attempt to establish for himself or any other person, firm or entity anywhere in the United States or Europe any business relationship of a nature that is competitive
with the business or relationship of Holding, Employer or any of their respective subsidiaries with any person, firm or corporation which was a customer, client or distributor of Holding, Employer or
any of their respective subsidiaries at any time during the Employment Period (in the case of any such activity during the Employment Period) or during the twelve-month period preceding the date of
Executive's 

6

 

termination of employment with Holding, Employer and their respective subsidiaries, other than any such solicitation during Executive's employment with Holding or Employer on behalf of Holding,
Employer or any of their respective subsidiaries. 

        12.    Return of Documents.    In the event of the termination of Executive's employment for any reason, Executive
will deliver to Employer all of Holding's, Employer's or any of their respective subsidiaries' property and Holding's, Employer's or any of their respective, subsidiaries' non-personal
documents and data of any nature and in whatever medium pertaining to Executive's employment with Holding, Employer or any of their respective subsidiaries, and he will not take with him any such
property, documents or data of any description or any reproduction thereof, or any documents containing or pertaining to any Confidential Information. Whether documents or data are "personal" or
"non-personal" shall be determined as follows: Executive shall present any documents or data that he wishes to take with him to the chief legal officer of Employer for his review. The
chief legal officer shall make an initial determination whether any such documents or data are personal or non-personal, and with respect to such documents or data that he determines to be
non-personal, shall notify Executive either that such documents or data must be retained by Employer or that Employer must make and retain a copy thereof before Executive takes such
documents or data with him. Any disputes as to the personal or non-personal nature of any such documents or data shall first be presented to the Chairman of Employer's Board or to another
representative designated by Employer's Board (such Chairman or representative, the "Chairman"), and if such disputes are not promptly resolved by Executive and the Chairman, such disputes shall be
resolved through arbitration pursuant to Section 17(b). 

        13.    Certain Understandings, Injunctive Relief with Respect to Covenants.    (a) Executive acknowledges and agrees
that the covenants, obligations and agreements of Executive with respect to noncompetition, nonsolicitation, confidentiality and Employer property relate to special, unique and extraordinary matters
and that a violation of any of the terms of such covenants, obligations or agreements will cause Employer irreparable injury for which adequate remedies are not available at law. Therefore, Executive
agrees that Employer shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond) as a court of competent jurisdiction may deem necessary
or appropriate to restrain Executive from committing any violation of the covenants, obligations or agreements referred to in this Section 13. These injunctive remedies are cumulative and in
addition to any other rights and remedies Employer may have. If Employer does not substantially prevail in obtaining the injunctive relief it seeks, Employer shall reimburse the Executive for any
legal expenses incurred by him in defending against the imposition of such injunctive relief. Employer, Holding and Executive hereby irrevocably submit to the exclusive jurisdiction of the courts of
the State of New York and the Federal courts of the United States of America, in each case located in New York City, in respect of the injunctive remedies set forth in this Section 13 and the
interpretation and enforcement of Sections 8, 9, 10, 11, 12 and 13 insofar as such interpretation and enforcement relate to any request or
application for injunctive relief in accordance with the provisions of this Section 13, and the parties hereto hereby irrevocably agree that
(i) the sole and exclusive appropriate venue for any suit or proceeding relating solely to such injunctive relief shall be in such a court,
(ii) all claims with respect to any request or application for such injunctive relief shall be heard and determined exclusively in such a court,
(iii) any such court shall have exclusive jurisdiction over the person of such parties and over the subject matter of any dispute relating to any
request or application for such injunctive relief and (iv) each hereby waives any and all objections and defenses based on forum, venue or
personal or subject matter jurisdiction as they may relate to an application for such injunctive relief in a suit or proceeding brought before such a court in accordance with the provisions of this
Section 13. All disputes not relating to any request or application for injunctive relief in accordance with this Section 13 shall be resolved by arbitration as contemplated by
Section 17(b). 

7

 

        (b)  Employer,
Holding and Executive each agree that Executive has had and will have a prominent role in the management of the business, and the development of the goodwill,
of Holding and its subsidiaries and has had and will establish and develop relations and contacts with the principal customers and suppliers of Holding and its subsidiaries in the United States and
the rest of the world, all of which constitute valuable goodwill of, and could be used by Executive to compete unfairly with, the Holding and its subsidiaries; 

        (c)  (i) in the course of his employment with Employer, Executive has obtained and will obtain confidential information
and trade secrets concerning the worldwide business and operations of Holding and the Subsidiaries that could be used to compete unfairly with Holding and the Subsidiaries;
(ii) the covenants and restrictions contained in Sections 8 through 13, inclusive, are intended to protect the legitimate interests of Employer
and Holding to protect their respective goodwill, trade secrets and other confidential information and (iii) Executive desires to agree to be
bound by such covenants and restrictions and to enter into the Agreement; 

        14.    Assumption of Agreement.    Employer will require any successor (by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of Employer, by agreement in form and substance reasonably satisfactory to Executive, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that Employer would be required to perform it if no such succession had taken place. Failure of Employer to obtain such agreement prior to the
effectiveness of any such succession shall be a breach of this Agreement and shall entitle Executive to compensation from Employer in the same amount and on the same terms as Executive would be
entitled hereunder if Employer terminated his employment Without Cause as contemplated by Section 7, except that for purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Date of Termination. 

        15.    Entire Agreement.    This Agreement (including the Exhibit hereto) constitutes the entire agreement among the
parties hereto with respect to the subject matter hereof, and all promises, representations, understandings, arrangements. All prior correspondence and proposals (including summaries of proposed
terms) and all prior promises, representations, understandings, arrangements and agreements
relating to such subject matter (including but not limited to those made to or with Executive by any other person or entity) are merged herein and superseded hereby. 

        16.    Indemnification.    Employer agrees that it shall indemnify and hold harmless Executive to the fullest extent
permitted by Delaware law from and against any and all liabilities, costs, claims and expenses including without limitation all costs and expenses incurred in defense of litigation, including
attorneys' fees, arising out of the employment of Executive hereunder, except to the extent arising out of or based upon the gross negligence or willful misconduct of Executive. Costs and expenses
incurred by Executive in defense of litigation, including attorneys' fees, shall be paid by Employer in advance of the final disposition of such litigation upon receipt of an undertaking adequate
under Delaware law made by or on behalf of Executive to repay such amount if it shall ultimately be determined that Executive is not entitled to be indemnified by Employer under this Agreement. 

        17.    Miscellaneous.    

        (a)    Binding Effect; Assignment.    This Agreement shall be binding on and inure to the benefit of Employer and its
successors and permitted assigns. This Agreement shall also be binding on and inure to the benefit of Executive and his heirs, executors, administrators and legal representatives. This Agreement shall
not be assignable by any party hereto without the prior written consent of the other parties hereto, except pursuant to this Section 17(a) as hereinafter provided. Each of Holding and Employer
may effect such an assignment without prior written approval of Executive upon the transfer of all or substantially all of its business and/or assets (whether by purchase, merger, consolidation or
otherwise), provided that the successor to such business and/or assets shall expressly assume and agree to perform this Agreement in accordance with the
provisions of Section 14. 

8

 

        (b)    Arbitration.    Any dispute or controversy arising under or in connection with this Agreement (except in
connection with any request or application for injunctive relief in accordance with Section 13) shall be resolved by binding arbitration. The arbitration shall be held in the city of Atlanta,
Georgia and except to the extent inconsistent with this Agreement, shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect at the
time of the arbitration, and otherwise in accordance with principles which would be applied by a court of law or equity. The arbitrator shall be acceptable to both Employer and Executive. If the
parties cannot agree on an acceptable arbitrator, the dispute shall be heard by a panel of three arbitrators, one appointed by Employer, one appointed by Executive, and the third appointed by the
other two arbitrators. All expenses of arbitration shall be borne by the party who incurs the expense, or, in the case of joint expenses, by both parties in equal portions, except that, in the event
Executive prevails on the principal issues of such dispute or controversy, all such expenses shall be borne by the Employer. 

        (c)    Governing Law.    This Agreement shall be governed by and constructed in accordance with the laws of the State
of New York without reference to principles of conflict of laws. 

        (d)    Taxes.    Employer may withhold from any payments made under this Agreement all federal, state, city or other
applicable taxes as shall be required by law. 

        (e)    Amendments.    No provision of this Agreement may be modified, waived or discharged unless such modification,
waiver or discharge is approved by Employer's Board or a person authorized thereby and is agreed to in writing by Executive and, in the case of any such modification, waiver or discharge effecting the
rights or obligations of Holding, is approved by the Board of Directors of Holding or such officer of Holding as may be specifically designated for such purpose by such Board of Directors. No waiver
by any party hereto at any time of any breach by any 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. No waiver of any provision of this Agreement shall be implied from any course of dealing
between or among the parties hereto or from any failure by any party hereto to assert its rights hereunder on any occasion or series of occasions. 

        (f)    Severability.    In the event that any one or more of the provisions of this Agreement shall be or become
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby. 

        (g)    Notices.    Any notice or other communication required or permitted to be delivered under this Agreement shall
be (i) in writing, (ii) delivered personally, by courier service or by certified or
registered mail, first-class postage prepaid and return receipt requested, (iii) deemed to have been received on the date of delivery or on the
third business day after the mailing thereof, provided that the party giving such notice or communication shall have attempted to telephone the party or
parties to which notice is being given during regular business hours on or before the day such notice or communication is being sent, to advise such party or parties that such notice is being sent,
and (iv) addressed as follows (or to such other address as the party entitled to notice shall hereafter designate in accordance with the terms
hereof): 

	(A)
	if
to Employer or Holding, to it at: 

Riverwood
International Corporation

3350 Riverwood Parkway S.E.

Suite 1400

Atlanta, Georgia 30339
 Attention: General Counsel 

	(B)
	if
to Executive, to him at his last known address on the books and records of the Company. 

9

 

Copies
of any notices or other communications given under this Agreement shall also be given to: 

Clayton,
Dubilier & Rice, Inc.

375 Park Avenue

New York, New York 10152
 Attention: Mr. Kevin J. Conway 

                        and

Debevoise &
Plimpton

875 Third Avenue

New York, New York 10022
 Attention: Franci J. Blassberg, Esq. 

        (h)    Survival.    Sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, and, if Executive's employment terminates in a
manner giving rise to a payment under Section 7(f), Section 7(f), shall survive the termination of the employment of Executive hereunder. 

        (i)    No Conflicts.    Executive, Employer and Holding each represent that they are entering into this Agreement
voluntarily and that Executive's employment hereunder and each party's compliance with the terms and conditions of this Agreement will not conflict with or result in the breach by such party of any
agreement to which it is a party or by which it may be bound. 

        (j)    Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed an original and
all of which together shall constitute one and the same instrument. 

        (k)    Headings.    The section and other headings contained in this Agreement are for the convenience of the parties
only and are not intended to be a part hereof or to affect the meaning or interpretation hereof. 

10

 

        IN
WITNESS WHEREOF, Employer and Holding have duly executed this Agreement by their authorized representatives and Executive has hereunto set his hand, in each case effective as of the
date first above written. 

	 	 	RIVERWOOD INTERNATIONAL CORPORATION
	

 	
 	

By:	
 	

/s/ Edward W. Stroetz, Jr.
 Name: Edward W. Stroetz, Jr.

Title: Secretary
	

 	
 	

RIVERWOOD HOLDING, INC.
	

 	
 	

By:	
 	

/s/ Edward W. Stroetz, Jr.
 Name: Edward W. Stroetz, Jr.

Title: Secretary
	

 	
 	

Executive:
	

 	
 	

/s/ Stephen M. Humphrey
 Stephen M. Humphrey

11

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SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

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