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Exhibit 10.3    
    

 
 

CORPORATE GOVERNANCE AGREEMENT    
    

        THIS CORPORATE GOVERNANCE AGREEMENT is made as of February 6, 2004, among JSG Packaging Limited, a private limited company incorporated under the laws of
Ireland (the "Company"), each of the MDCP Co-Investors, Dr. Michael W.J. Smurfit
("MWJS"), Gary McGann ("GMcG"), Anthony Smurfit
("APJS"), Ian Curley ("IJC"), and each of the Persons listed on the Schedule of
Other Investors attached hereto (each, an "Other Investor" and collectively, the "Other
Investors"). MWJS, GMcG, APJS and IJC are collectively referred to herein as the "Management Investors" and individually as a
"Management Investor". The Other Investors and the Management Investors are collectively referred to herein as "Minority
Investors" and in the singular as a "Minority Investor." The MDCP Co-Investors and the Minority Investors are
collectively referred to herein as the "Investors" and in the singular as an "Investor". Except as
otherwise indicated herein, capitalized terms used herein are defined in Section 3 hereof. 

        WHEREAS,
Jefferson Smurfit Group Limited (formerly MDCP Acquisitions Limited) (the "Prior Parent") and the Investors are parties to that
certain Amended and Restated Corporate Governance Agreement, dated as of September 5, 2002 (the "Existing Agreement"); 

        WHEREAS,
on or about the date hereof, holders of Ordinary Shares of Prior Parent, nominal value €0.001 per share (the "Prior Parent Ordinary
Share") are exchanging each such Prior Parent Ordinary Share for one Ordinary Share of the Company (the "Exchange"); and 

        WHEREAS,
the Investors propose to enter into this Agreement in order to establish certain governance provisions relating to the Company and its Subsidiaries. 

        NOW,
THEREFORE, the parties hereto agree as follows: 

        Section 1.    Voting.    From and after the date hereof and until the provisions of this Section 1 cease
to be effective, each Investor shall vote all of his Ordinary Shares and any other voting securities of the Company over which such Investor has voting control and shall take all other reasonably
necessary or
desirable actions within his control in his capacity as a stockholder of the Company only (including, without limitation, attendance at meetings in person or by proxy for purposes of obtaining a
quorum and execution of written consents in lieu of meetings), and the Company shall take all reasonably necessary or desirable actions within its control (including, without limitation, calling
special board and stockholder meetings), so that: 

        1A.    Authorized Number.    The authorized number of directors on the Company's Board of Directors (the
"Board") shall initially be established at nine (9) directors; 

        1B.    Board Composition.    The following individuals shall be elected to the Board: 

        (i)    four
representatives designated by MDCP IV Global Investments LP (the "MDCP IV Global Directors"); 

        (ii)   MWJS; 

        (iii)  GMcG; 

        (iv)  APJS;

        (v)   IJC;
and 

        (vi)  one
representative designated by MDCP III Global Investments LP (the "MDCP III Global Director"). 

        1C.    Subsidiary Boards.    At the election of the MDCP Co-Investor Majority exercised at any time, the
composition of the board of directors of all or any of the Company's Subsidiaries (a "Subsidiary Board") shall be the same as, or as close to
proportionately equivalent as possible to, that of the Board; provided that, without limiting the generality of the foregoing, but subject to any 

limitations
under applicable law, at the request of any Management Investor, such Management Investor shall be appointed to the board of directors of JSG or any principal operating company of the
Company. 

        1D.    Committees.    Any committees of the Board or a Subsidiary Board shall be created only upon the approval of a
majority of the members of the Board; provided that any committee that is responsible for administration of the Management Equity Plan shall not make any determinations with respect thereto prior to
consulting with GMcG, and if GMcG no longer serves on the Board, the Company's chief executive officer. 

        1E.    Removal.    

        (i)    Until
the rights of MDCP IV Global Investments LP to elect a director pursuant to this Section 1 are terminated or unless a representative becomes ineligible to
serve as a director as a matter of law, the removal from the Board or a Subsidiary Board (with or without cause) of any MDCP IV Global Director shall be at the written request of MDCP IV Global
Investments LP, but only upon such written request and under no other circumstances. Until the rights of MDCP IV Global Investments LP to elect a director pursuant to this Section 1 are
terminated or unless a representative becomes ineligible to serve as a director as a matter of law, in the event that any MDCP IV Global Director ceases to serve as a member of the Board, a Subsidiary
Board or any committee during his term of office, the resulting vacancy on the Board, the Subsidiary Board or such committee shall be filled by a representative designated by MDCP IV Global
Investments LP as provided hereunder. 

        (ii)   MWJS
shall resign, or be removed as a member of the Board, any Subsidiary Board and any committees by a vote of a majority of Ordinary Shares then held by the
Investors, as of any date after the date hereof that he no longer is employed as the chairman of the Company and its subsidiaries or JSG and its subsidiaries (with it being understood that in the
event that MWJS does not resign, each Investor shall take any and all actions necessary to effectuate such removal); 

        (iii)  GMcG
shall resign, or be removed as a member of the Board, any Subsidiary Board and any committees by a vote of a majority of Ordinary Shares then held by the
Investors, as of any date after the date hereof that he no longer is employed as the chief executive officer of the Company and its subsidiaries or JSG and its subsidiaries (with it being understood
that in the event that GMcG does not resign, each Investor shall take any and all actions necessary to effectuate such removal); 

        (iv)  APJS
shall resign, or be removed as a member of the Board, any Subsidiary Board and any committees by a vote of a majority of Ordinary Shares then held by the
Investors, as of any date after the date hereof that he no longer is employed as the chief operations officer of the Company and its subsidiaries or chief operations officer of JSG and its
subsidiaries (with it being understood that in the event that APJS does not resign, each Investor shall take any and all actions necessary to effectuate such removal); and 

        (v)   IJC
shall resign, or be removed as a member of the Board, any Subsidiary Board and any committees by a vote of a majority of Ordinary Shares then held by the Investors,
as of any date after the date hereof that he no longer is employed as the chief financial officer of the Company and its subsidiaries or chief financial officer of JSG and its subsidiaries (with it
being understood that in the event that IJC does not resign, each Investor shall take any and all actions necessary to effectuate such removal). 

        (vi)  Until
the rights of MDCP III Global Investments LP to elect a director pursuant to this Section 1 are terminated or unless a representative becomes ineligible to
serve as a director as a matter of law, the removal from the Board or a Subsidiary Board (with or without cause) of the MDCP III Global Director shall be at the written request of MDCP III Global
Investments LP, but only upon such written request and under no other circumstances. Until the rights of MDCP III Global Investments LP to elect a director pursuant to this 

Section 1
are terminated or unless a representative becomes ineligible to serve as a director as a matter of law, in the event that the MDCP III Global Director ceases to serve as a member of
the Board, a Subsidiary Board or any committee during his term of office, the resulting vacancy on the Board, the Subsidiary Board or such committee shall be filled by a representative designated by
MDCP III Global Investments LP as provided hereunder. 

        1F.    Board Meetings; Expenses.    The Company shall hold not less than four meetings per year of the Board and any
Subsidiary Board in which the Management Investors have exercised rights pursuant to paragraph 1C hereof. Unless otherwise determined by the Board, three such board meetings per annum shall
take place in Dublin, Ireland and one such board meeting per annum shall take place in Chicago, Illinois. The Company shall pay the reasonable out-of-pocket expenses incurred
by each director in connection with attending the meetings of the Board, any Subsidiary Board and any committee thereof. To the extent practicable, the Company shall distribute any agendas, reports or
other materials to be reviewed or covered at any meeting of the Board prior to the meeting of the Board. 

        1G.    Replacement of MWJS, GMcG, APJS and IJC.    Subject to the rights of any such Person to appoint a Purchased
Equity Director pursuant to paragraph 1I, in the event that any of MWJS, GMcG, APJS or IJC is removed or resigns from the Board, any Subsidiary Board or any committee thereof, MDCP IV Global
Investments LP shall be entitled to appoint any replacement director. Unless otherwise agreed
to in writing by MDCP IV Global Investments LP, any such director appointed by MDCP IV Global Investments LP pursuant to this paragraph 1G shall be deemed an additional MDCP IV Global Director
for purposes of this Agreement. 

        1H.    Increase in Size of the Board.    At the election of MDCP IV Global Investments LP, the authorized number of
directors on the Board may be increased to no more than thirteen directors. In the event that the size of the Board is increased in accordance with this paragraph 1H, MDCP IV Global Investments
LP shall be entitled to appoint any individuals to serve as directors as a result of the increase in the size of the Board.    Unless otherwise agreed to in writing by MDCP IV Global
Investments LP, any such director appointed by MDCP IV Global Investments LP pursuant to this paragraph 1H shall be deemed an additional MDCP IV Global Director for purposes of this Agreement. 

        1I.    Purchased Equity Director.    Each Purchased Equity Holder who, together with his Affiliates and/or Family
Group, owns (i) prior to a Listing, Ordinary Shares, as of any date of determination, with an aggregate investment cost (i.e., subscription price or purchase price paid for Ordinary Shares plus
any other amounts contributed to or invested in the Company not specifically for the acquisition of Ordinary Shares or loans made to the Company, and which, for the avoidance of doubt shall be deemed
to include the aggregate investment cost of Ordinary Shares) of not less than €50,000,000 or (ii) on and after a Listing, (x) a number of Ordinary Shares, which when
multiplied by the per share listing price on the securities market on which the Ordinary Shares are listed, has an aggregate value equal to not less than €50,000,000 or
(y) Ordinary Shares with an aggregate investment cost (i.e., subscription price or purchase price paid for Ordinary Shares plus any other amounts contributed to or invested in the Company not
specifically for the acquisition of Ordinary Shares or loans made to the Company) of not less than 50% of the aggregate investment cost (i.e., subscription price or purchase price paid for Ordinary
Shares plus any other amounts contributed to or invested in the Company not specifically for the acquisition of Ordinary Shares or loans made to the Company) of the Ordinary Shares held by such
Purchased Equity Holder and his or its Affiliates and Family Group as of the Settlement Date, then such Purchased Equity Holder or (if such holder is an individual), upon such holder's death, a
descendant of such Purchased Equity Holder (any such Person, an "Eligible Purchased Equity Holder") shall have the right to appoint one member of the
Board (a "Purchased Equity Director"). The condition specified in clauses (i) and (ii) of this paragraph 1I are referred to herein
as the "Minimum Investment Condition." Until such date as the applicable Minimum Investment Condition has no longer been satisfied or unless a Purchased
Equity Director becomes ineligible to serve as a director as a matter of law, the removal from the Board, a Subsidiary Board or any 

committee
(with or without cause) of any Purchased Equity Director shall be at the written request of the appointing Eligible Purchased Equity Holder, but only upon such written request and under no
other circumstances; provided that in the event that a Purchased Equity Director (without the consent of the Board) becomes an employee of, serves as a
director of, or otherwise provides services for, any Person (other than Smurfit-Stone Container Corp. and its Subsidiaries) that competes with a material business of the Group Companies, such
Purchased Equity Director shall be removed upon the written request of MDCP IV Global Investments LP. Until the rights of any Eligible Purchased Equity Holder to elect a director pursuant to this
paragraph 1I are terminated or unless a Purchased Equity Director becomes ineligible to serve as a director as a matter of law, in the event that any Purchased Equity Director ceases to serve
as a member of the Board, a Subsidiary Board or any committee during his term of office, the resulting vacancy on the Board, the Subsidiary Board or such committee shall be filled by a representative
designated by the Eligible Purchased Equity Holder originally appointing such Purchased Equity Director as provided hereunder. As of and after the date that any Eligible Purchased Equity Holder ceases
to satisfy the applicable Minimum Investment Condition or the Purchased Equity Director has become ineligible to serve as a director as a matter of law, at the election of MDCP IV Global Investments
LP, the Purchased Equity Director shall resign or be removed from the Board, and the Investors shall take all actions to remove such Purchased Equity Director. In the event that the Purchased Equity
Director resigns or is removed as a result of an Eligible Purchased Equity Holder's failure to satisfy the Minimum Investment Condition, MDCP IV Global Investments LP shall be entitled to appoint any
individuals to serve as directors as a result of the resignation or removal of the Purchased Equity Director. Unless otherwise agreed to in writing by MDCP IV Global Investments LP, any such director
appointed by MDCP IV Global Investments LP pursuant to this paragraph 1I shall be deemed an additional MDCP IV Global Director for purposes of this Agreement. Notwithstanding anything else to
the contrary in this paragraph 1I, (A) in no event shall any Purchased Equity Holder have any rights pursuant to clause (ii) of this paragraph 1I unless such Purchased
Equity Holder at some point prior to a Listing satisfied the condition specified in clause (i) hereof, (B) Purchased Equity
Holders, in the aggregate and subject to the conditions set forth in this paragraph 1I, shall not be able to appoint more than one Purchased Equity Director to serve on the Board at any one
time, and (C) in no event shall any Purchased Equity Holder have any right to appoint a Purchased Equity Director at a time when such Person is a member of the Board, has nominated a member of
the Board, and has the right by contract (other than this paragraph 1I), operation of law or sufficient voting power through ownership of Ordinary Shares to elect, appoint or nominate a member
of the Board. 

        1J.    Process.    Any appointment or removal of a director shall be effected by delivery to the Company's registered
office of written notice signed by the Investor or Investors making such appointment or removal and shall take effect upon such delivery or, if later, any effective date stated in the notice. 

        Section 2.    Certain Governance Rights.    

        2A.    Affiliate Transactions.    The Company shall not, without the prior consent of its Board (including, as long as
any such Person serves on the Board, at least one Management Investor or if no Management Investor serves on the Board, the Purchased Equity Director as long as such individual serves on the Board),
from and after the Effective Date, enter into, or permit any Subsidiary to enter into, any transaction with any Person or group of related Persons that are not Independent Third Parties (each, an
"Affiliated Person") or with any Person in which any such Affiliated Person owns more than a 25% beneficial interest;  provided that the consent of any
Management Investor or the Purchased Equity Director shall not be required with respect to contracts in the ordinary
course of business of the Company or its Subsidiaries or contracts that are negotiated on an arm's-length basis and are on terms which are commercially reasonable. 

        2B.    Accounting Policies.    The Company shall not for purposes of calculating or determining whether any management
incentive target had been achieved or satisfied, change any accounting policy of the Company in a manner that would adversely affect the calculation of any management 

incentive
target or performance; provided that the Company may change such accounting policy if, under the supervision of the Board, management
incentive targets or bonuses are calculated or using the former accounting policy. 

        2C.    Affirmative Covenants.    From and after the Effective Date, the Company covenants to the Management Investors
that it shall: 

        (i)    permit
any representatives designated by the Management Investors, upon reasonable notice and during normal business hours and such other times as the Management
Investors may reasonably request, to (a) visit and inspect any of the properties of the Company and its Subsidiaries, (b) examine
the corporate and financial records of the Company and its Subsidiaries and (c) discuss the affairs, finances and accounts of any such Persons with the directors, officers, key employees and
independent accountants of the Company and its Subsidiaries; provided that the Company shall have the right to have a member of the Board or a
representative of the Board present in connection with the exercise of rights by the Management Investors pursuant to this paragraph 2C(i);  provided further that all of the information disclosed to
the Management Investors or their representatives pursuant to this
paragraph 2C(i) shall be treated as confidential and shall not be disclosed to any third Person (and the Management Investors and their representatives shall, at the request of the
Company, execute customary confidentiality agreements in respect thereof, prior to gaining access to any such information); 

        (ii)   have
issued the entire equity interests available for issuance under the Company's Management Equity Plan to members of the management of JSG or other persons
recommended by the Company's chief executive officer; 

        (iii)  allocate
all equity interests under the Company's Management Equity Plan not previously allocated only after receiving the recommendation of the Company's chief
executive officer as to how such equity interests should be allocated (with it being understood that the Company shall not unreasonably withhold its approval or unnecessarily delay its decision with
respect to such recommendations); and 

        (iv)  reallocate
equity interests purchased from departing members of management in the manner determined by the Company's chief executive officer in consultation with the
Company's Compensation Committee as to how such equity interests should be reallocated (which consultation may occur after the reallocation has occurred);  provided that notwithstanding this
clause (iv), no equity interests may be reallocated to any Management Investor or its successors or assigns
without the consent of the Company's Compensation Committee. 

        Section 3.    Definitions.    

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

        "Family Group" means, with respect to any Person, such Person's spouse, siblings, descendants and siblings' descendants (and any trust
solely for the benefit of such Person, his spouse, siblings, descendants and siblings' descendants). 

        "5% Owner" means any Person that owns 5% or more of the Company's Ordinary Shares on a fully-diluted basis. 

        "Independent Third Party" means any Person who, immediately prior to the contemplated transaction, is not a 5% Owner, is not controlling,
controlled by or under common control with any 5% Owner and is not the spouse or descendent (by birth or adoption) of any 5% Owner. 

        "JSG" means Jefferson Smurfit Group Limited, an Irish private limited company. 

        "Listing" means the admission of all or any part of the Ordinary Shares to the Official List of The Irish Stock Exchange Limited or the
Official List of the UK Listing Authority, and to trading on the 

market
for listed securities of the London Stock Exchange or to trading on the Alternative Investment Market or the taking effect of any granting of permission to deal in the same on any recognized
investment exchange (as that term is used in the Financial Services Act 1986) or the registration of all or any of the Ordinary Shares (or equivalent securities of any Subsidiary or American
Depository Receipts with respect to any of the forgoing) on Form F-1, F-2 or F-3 (or any similar long-form or short-form
registrations) pursuant to the United States Securities Act of 1933 (as amended) or any similar US federal law, or any similar listing or registration by the Company of the Ordinary Shares on the
public stock exchange or securities market in any other jurisdiction. 

        "MDCP Co-Investor Majority" means the holders of a majority of the Ordinary Shares held by all MDCP Co-Investors. 

        "MDCP Co-Investors" means, collectively, MDCP IV Global Investments LP, MDCP III Global Investments LP, MDSE III Global
Investments LP and any Affiliate of the foregoing that owns or holds Ordinary Shares as of the date of determination and "MDCP Co-Investor" means any of the MDCP Co-Investors. 

        "Ordinary Shares" means the Company's Ordinary Shares, having the rights set forth in the Company's Articles of Association. 

        "Person" means an individual, a partnership, a limited liability company an unlimited liability company, a company limited by guarantee, a
corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 

        "Purchased Equity Holder" means any Person party to the Corporate Governance Agreement, dated as of July 4, 2002 that had acquired
Ordinary Shares of Jefferson Smurfit Group Limited on or before the Settlement Date. 

        "Sale of the Company" means the sale of the Company to an Independent Third Party or affiliated group of Independent Third Parties
pursuant to which such party or parties acquire (i) capital stock of the Company possessing the voting power to elect a majority of the Company's board of directors (whether by merger,
consolidation or sale or transfer of the Company's capital stock) or (ii) all or substantially all of the Company's assets determined on a consolidated basis. 

        "Settlement Date" means the date for settlement of consideration after the date that the Take-Over Offer has become or been
declared unconditional in all respects 

        "Subsidiary" means, with respect to any Person, any corporation, limited liability company, partnership, association or other business
entity of which (i) if a corporation, a majority of the total voting power of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers
or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a
limited liability company, partnership, association or other business entity, a majority of the partnership or other similar ownership interest thereof is at the time owned or controlled, directly or
indirectly, by any Person or one or more Subsidiaries of that person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a
limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other
business entity gains or losses or shall be or control the managing general partner of such limited liability company, partnership, association or other business entity. Reference to any "Subsidiary"
of the Company shall be given effect only at such times as the Company has one or more Subsidiaries. 

        "Take-Over Offer" means an offer for the entire issued and to be issued share capital of Jefferson Smurfit Group plc made by
the Company or one of its Subsidiaries. 

        Section 4.    Miscellaneous.    

        4A.    Remedies.    Each of the parties to this Agreement shall be entitled to enforce its rights under this Agreement
specifically, to recover damages and costs (including reasonable attorneys fees) caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The
parties hereto agree and acknowledge that money damages would not be an adequate remedy for any
breach of the provisions of this Agreement and that any party may in its sole discretion apply to an court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific
performance and/or other injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement. 

        4B.    Consent to Amendments.    Except as otherwise expressly provided herein, the provisions of this Agreement may
be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the holders
of a majority of the Ordinary Shares then held by Investors and their permitted transferees; provided that if any such amendment, modification or waiver would negatively affect (i) any Investor
in an adversely discriminatory manner relative to the other Investors voting in favor of such amendment, modification, or waiver, such amendment, modification or waiver shall be effective against any
Investor adversely affected only with the written consent of such Investor, (ii) the Management Investors in an adversely discriminatory manner relative to the other Investors, such amendment,
modification or waiver shall be effective against any Management Investor adversely affected only with the written consent of such Management Investor or with the written consent of a majority of the
Management Investors or (iii) the Minority Investors in an adversely discriminatory manner relative to the MDCP Co-Investors, such amendment, modification or waiver shall be
effective against any Minority Investor adversely affected only with the written consent of such Minority Investor or with the written consent of the holders of a majority of the Ordinary Shares held
by Minority Investors. In addition, any amendment, modification or waiver of the provisions of Section 2 which affects the Management Group (as defined in paragraph 4J) in an adversely
discriminatory manner relative to the Investors voting in favor of such amendment, modification, or waiver shall be effective against the Management Group only if such amendment, modification or
waiver has been approved by the holders of a majority of the Ordinary Shares held by the Management Group. No other course of dealing between the Company and the holder of any Ordinary Shares or any
delay in exercising any rights hereunder or under the Articles of Association shall operate as a waiver of any rights of any such holders. 

        4C.    Successors and Assigns.    Except as otherwise expressly provided herein, all covenants and agreements
contained in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto whether so expressed or not.
The rights and obligations of any MDCP Co-Investor under this Agreement and the agreements contemplated hereby may be assigned by such MDCP Co-Investor at any time, in whole or
in part, to any investment fund controlling, controlled by or under common control with such MDCP Co-Investor, or any successor thereto or to any co-investment vehicle for the
benefit of all or some of the employees of Madison Dearborn Partners, LLC or any successor thereto. Furthermore, without the consent of any other party hereto, but subject to the limitation on the
number of directors set forth in paragraph 1H, each of MDCP IV Global Investments LP and MDCP III Global Investments LP shall be entitled to assign all or any portion of its rights to appoint
directors pursuant to paragraph 1B, paragraph 1G or paragraph 1H to any other Person to whom it is transferring or has transferred equity securities of the Company. In the event
that the MDCP Co-Investor Majority determines that any amendment to this Agreement is necessary or desirable to effectuate the assignment and the granting of rights to a Person in
accordance with the immediately foregoing sentence, each Investor party hereto shall execute and deliver to the Company a counterpart of any amendment that is consistent with the rights that may be
assigned by MDCP IV Global Investments LP or MDCP III Global Investments LP pursuant to the immediately foregoing sentence; provided that in the event
that any Investor fails to deliver his or 

its
counterpart to such amendment, such amendment shall nonetheless be effective against such Investor notwithstanding any provision of paragraph 4B that would suggest that the separate consent
of such Investor was necessary to effectuate such amendment. In the event that at any time after the date hereof, (i) MWJS ceases to be the chairman of the Company or JSG, (ii) GMcG
ceases to be the chief executive officer of the Company or JSG, (iii) APJS ceases to be the chief operating officer of the Company or JSG, or (iv) IJC ceases to be the chief financial
officer of the Company or JSG, the rights of such person under Section 2 shall automatically, and without further action on the part of any Person hereto, be assigned to such Person's successor
with the Company, who shall succeed to all of such Person's rights under Section 2 hereof. Prior to transferring any Ordinary Shares to any co-investor, each of the MDCP
Co-Investors shall, as a condition to such transfer, require such co-investor to execute an agreement for the benefit of the Management Investors pursuant to which such
co-investor will vote its Ordinary Shares in favor of the appointment of the Management Investors (and to the extent rights have arisen pursuant to paragraph 1I, the Purchased
Equity Director) to the Board to the extent required by Section 1 of this Agreement. Notwithstanding anything else to the contrary set forth herein, in no event shall MDCP IV Global Investments
LP be entitled to assign all or any portion of its rights pursuant to paragraph 1I without the consent of the Company and each of the Management Investors. 

        4D.    Severability.    Whenever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent
of such prohibition or invalidity, without invalidating the remainder of this Agreement. 

        4E.    Counterparts.    This Agreement may be executed simultaneously in two or more counterparts, any one of which
need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Agreement. 

        4F.    Descriptive Headings; Interpretation.    The descriptive headings of this Agreement are inserted for
convenience only and do not constitute a Section of this Agreement. The use of the word "including" in this Agreement shall be by way of example rather than by limitation. 

        4G.    Governing Law; Forum.    The Agreement and the exhibits and schedules hereto shall be governed by and construed
in accordance with the laws of Ireland. Any suit or action brought against any Management Investor hereunder should be brought exclusively in the courts of Ireland (it being understood that, except as
set forth in this sentence, nothing contained in this paragraph 4G shall limit any party's rights to bring any suit against any party (other than the Management Investors) or with respect to
the subject matter hereof in any other jurisdiction). 

        4H.    Notices.    All notices, demands or other communications to be given or delivered under or by reason of the
provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally to the recipient, one day after being sent to the recipient by reputable express
courier service by overnight mail (charges prepaid) or by facsimile. Such notices, demands and other communications shall be sent to the Investors and to the Company at the address indicated below: 

If to the Company: 

c/o
Jefferson Smurfit Group Limited

Headquarters

Beech Hill

Clonskeagh

Dublin 4

Facsimile: 353-1-283-7113 

with copies to: 

To
the MDCP Co-Investors (at the address set

forth below) 

and to: 

Kirkland &
Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

USA

Attention:  William S. Kirsch, P.C.

Facsimile:  (312) 861-2200 

If to the MDCP Co-Investors: 

c/o
Madison Dearborn Partners, LLC

Three First National Plaza

Suite 3800

Chicago, Illinois 60602

USA

Attention:  Samuel M. Mencoff

Facsimile:  (312) 895-1001 

With copies to: 

Kirkland &
Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

USA

Attention:  William S. Kirsch, P.C.

Facsimile:  (312) 861-2200 

If to any Management Investor: 

c/o
William Fry Solicitors

Fitzwilton House

Wilton Place

Dublin 2

Ireland

Attention:  Owen O'Connell

Facsimile:  +353-1-639-5333 

If to any Other Investor: 

To
such Other Investor at the address set forth on the
 Schedule of Other Investors attached hereto 

or
to such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. 

        4I.    Effectiveness.    This Agreement shall become effective and binding upon each party upon execution and delivery
of this Agreement by each of the Company and such party. 

        4J.    Rights of Management Group.    The Management Investors have entered into this Agreement on their own behalf
and, for the purposes of Section 2 of this Agreement, on behalf of the participants in the Company's 2004 Management Equity Plan (the "Management
Group") but the Management Investors shall be entitled in their absolute discretion to exercise (or omit to do so) all powers, authorities and rights granted in
Section 2 of this Agreement without recourse to or consultation with the Management Group. No member of the Management Group shall have any claim or right against the Management Investors on
account of the manner in which he has exercised or failed to exercise any of the said powers, rights and authorities and each member of the Management Group waives any and all rights which he may
hereafter have or acquire as a result of the exercise or manner of exercise or failure to exercise any of the said powers, rights and authorities whether or not in so doing the Management Investors
have acted recklessly or negligently. In no event shall any member of the Management Group (other than the Management Investors) have any right themselves to bring an action or suit against the
Company, any MDCP Co-Investor or any other Person for breach of this Agreement. 

        4K.    Termination.    Other than paragraph 1I (which shall terminate upon the earlier of the date that the
Minimum Investment Condition is no longer satisfied and a Sale of the Company), the provisions of this Agreement shall terminate automatically upon the earlier of (i) a Listing and
(ii) a Sale of the Company. 

*
* * * 

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above. 

	

 	
 	

JSG PACKAGING LIMITED
	

 	
 	

By:	
 	

    

	 	 	Its:	 	    

	

 	
 	

MDCP IV GLOBAL INVESTMENTS LP
	

 	
 	

By:	
 	

MDP IV Global GP, LP
	 	 	Its:	 	General Partner
	

 	
 	

By:	
 	

MDP Global Investors Limited
	 	 	Its:	 	General Partner
	

 	
 	

By:	
 	

    

	 	 	Its:	 	    

	

 	
 	

MDCP III GLOBAL INVESTMENTS LP
	

 	
 	

By:	
 	

MDP III Global GP, LP
	 	 	Its:	 	General Partner
	

 	
 	

By:	
 	

MDP Global Investors Limited
	 	 	Its:	 	General Partner
	

 	
 	

By:	
 	

    

	 	 	Its:	 	    

	

 	
 	

MDSE III GLOBAL INVESTMENTS LP
	

 	
 	

By:	
 	

MDP III Global GP, LP
	 	 	Its:	 	General Partner
	

 	
 	

By:	
 	

MDP Global Investors Limited
	 	 	Its:	 	General Partner
	

 	
 	

By:	
 	

    

	 	 	Its:	 	    

	

 	
 	

 Dr. Michael W.J. Smurfit
	

 	
 	

 Gary McGann
	

 	
 	

 Anthony P.J. Smurfit
	

 	
 	

 Ian J. Curley

[Signature Page to Corporate Governance Agreement] 

	

 	
 	

 For signature by individuals
	

 	
 	

Signature:	
 	

    

	

 	
 	

Name:	
 	

    
 (please print)
	

 	
 	
For signature by partnerships, corporations or other entities
	

 	
 	

Name:	
 	

    
 (please print)

[Signature Page to Corporate Governance Agreement] 

SCHEDULE OF OTHER INVESTORS  

Mid-Ocean
Europe GP (Jersey) Limited

Mid-Ocean Partners

3rd Floor

1 Chester Street

London SW1X 7HP

Attention: Hugh Briggs 

J.P.
Morgan Partners Global Investors, L.P.

J.P. Morgan Partners

1221 Avenue of the Americas, 39th Floor

New York, NY 10020

Attention: Robert Ruggiero 

J.P.
Morgan Partners Investors (Cayman), L.P.

J.P. Morgan Partners

1221 Avenue of the Americas, 39th Floor

New York, NY 10020

Attention: Robert Ruggiero 

J.P.
Morgan Partners Global Investors A, L.P.

J.P. Morgan Partners

1221 Avenue of the Americas, 39th Floor

New York, NY 10020

Attention: Robert Ruggiero 

J.P.
Morgan Partners Global Investors

    (Cayman) II, L.P.

J.P. Morgan Partners

1221 Avenue of the Americas, 39th Floor

New York, NY 10020

Attention: Robert Ruggiero 

J.P.
Morgan Partners (BHCA), L.P.

J.P. Morgan Partners

1221 Avenue of the Americas, 39th Floor

New York, NY 10020

Attention: Robert Ruggiero 

Arthur
Street Portfolio, L.P.

Merrill Lynch Private Equity Partners

800 Scudders Mill Road

Plainsboro, NJ 08536

Attention: Mike Cerminaro 

Arthur
Street Fund, L.P.

Merrill Lynch Private Equity Partners

800 Scudders Mill Road

Plainsboro, NJ 08536

Attention: Mike Cerminaro 

Vesey
Street Portfolio, L.P.

Merrill Lynch Private Equity Partners

800 Scudders Mill Road

Plainsboro, NJ 08536

Attention: Mike Cerminaro 

Vesey
Street Fund, L.P.

Merrill Lynch Private Equity Partners

800 Scudders Mill Road

Plainsboro, NJ 08536

Attention: Mike Cerminaro 

Passage
Portfolio, L.P.

Merrill Lynch Private Equity Partners

800 Scudders Mill Road

Plainsboro, NJ 08536

Attention: Mike Cerminaro 

Northwestern
University

Investment Office

633 Clark Street, Crown 1-209

Evanston, IL 60208

Attention: Du H. Chai 

Techline
Investment Ltd.

GIC Special Investments Pte Ltd

156 West 56th Street

Suite 190

New York, NY 10019

Attention: David L. Chiang 

Teachers
Insurance and Annuity Association of America

TIAA-CREF

730 Third Avenue

New York, NY 10017

Attention: Holly D. Holtz 

BVCF
IV, L.P.

Adams Street Partners

One North Wacker

Suite 2200

Chicago, IL 60606-2807

Attention: David S. Timson 

TCW/Crescent
Mezzanine Trust

TCW/Crescent Mezzanine, LLC

200 Crescent Court

Suite 1600

Dallas, TX 75201

Attention: Tim Costello 

TCW/Crescent
Mezzanine Partners III, L.P.

TCW/Crescent Mezzanine, LLC

200 Crescent Court

Suite 1600

Dallas, TX 75201

Attention: Tim Costello 

TCW
Crescent Mezzanine Partners III Netherlands, L.P

TCW/Crescent Mezzanine, LLC

200 Crescent Court

Suite 1600

Dallas, TX 75201

Attention: Tim Costello 

Randolph
Street Partners V

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

Attention: William Kirsch 

Stanley
Shuman

Allen & Company

711 5th Avenue

New York, NY 10022 

Macxe
LLC

Allen & Company

711 5th Avenue

New York, NY 10022 

Eran
Ashany

Allen & Company

711 5th Avenue

New York, NY 10022 

Walter
O'Hara, Jr.

Allen & Company

711 5th Avenue

New York, NY 10022 

Robert
Dean

Allen & Company

711 5th Avenue

New York, NY 10022 

Schwerin
Company, L.L.C.

Michael Schwerin

President

One Bayview Avenue

Oyster Bay, New York 11771 

Paul
Magnell

CEO

Bay State Paper Company

892 River Street

Hyde Park, MA 02136 

Special
Co-Invest I

Madison Dearborn Partners, LLC

Three First National Plaza

Suite 3800

Chicago, Illinois 60602

Attention: David Mosher 

QuickLinks

Exhibit 10.3

CORPORATE GOVERNANCE AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.4    
    

	  
	

	  
	  
	  
	  

JSG
PACKAGING LIMITED 

	

  
	

2004 MANAGEMENT EQUITY PLAN
	  
	  
	

	  
	  

 
 
 

JSG PACKAGING LIMITED
  2004 MANAGEMENT EQUITY PLAN    
    

        1.    Title and Purpose.    This plan shall be known as the JSG Packaging Limited 2004 Management Equity Plan (as
amended, supplemented or restated from time to time, this "Plan"). This Plan is intended to promote the long-term growth and profitability of JSG Packaging Limited, an Irish private
limited company (the "Company"). Under this Plan, the Company will issue Ordinary Shares, Class A Convertible Shares, Class B Convertible Shares, Class C Convertible Shares and/or
Class D Convertible Shares to Participants. This Plan was adopted by the Board on February 6, 2004. Capitalized terms used and not otherwise defined herein have the meanings indicated
for such terms in Section 10 of this Plan. 

        2.    Administration.    This Plan shall be administered by the Board. The Board shall have full power to
(a) establish and amend rules for the administration of this Plan, but subject to the amendment provisions of this Plan and the Management Equity Agreement, (b) correct any defect or
omission and to reconcile any inconsistency in this Plan or in the Management Equity Agreement to the extent the Board deems desirable to carry into effect this Plan or the terms of the Management
Equity Agreement, and (c) delegate certain duties of the Board hereunder to one or more agents to assist in the administration of this Plan. The Company's chief executive officer shall
(x) select Participants and shall determine the number of Ordinary Shares and Convertible Shares to be sold to each Participant, subject in each case to the approval of the Board (which
approval will not be unreasonably withheld, nor will a decision on its grant or withholding be unreasonably delayed) and (y) determine to whom Convertible Shares or Ordinary Shares repurchased
from Participants shall be reissued (which determination shall be made in consultation with the Board (which consultation may occur after reissue in the case of individual recruits));  provided that all
such issuances or reissues to the Company's chairman, chief executive officer, chief operations officer or chief financial officer
shall require the consent of the Board (which may be given or withheld in the Board's absolute discretion) prior to such issuance or reissue. The Board may act by a majority of a quorum present at a
meeting. 

        3.    Shares Reserved for This Plan.    An aggregate of 16,014,334 Ordinary Shares shall be reserved for issuance
pursuant to this Plan (as may be adjusted (including with respect to the conversion of Convertible Shares) pursuant to the following sentence, "Shares"), of which 8,606,334 Ordinary Shares shall be
reserved for issuance upon conversion (either direct or indirect) of Class D Convertible Shares. In order to prevent the dilution or enlargement of rights of Ordinary Shares or Convertible
Shares issued or sold under this Plan generally, in the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation or other change in the
Ordinary Shares or Convertible Shares, the Board shall make appropriate changes (which changes shall be subject to
confirmation by the Company's auditors) in the number and type of Ordinary Shares and Convertible Shares authorized by this Plan, the number and type of Ordinary Shares covered by conversion of the
Class D Convertible Shares, the number and type of Class D Convertible Shares covered by conversion of the Class A Convertible Shares, Class B Convertible Shares and
Class C Convertible Shares, respectively, and the prices specified therein. 

        4.    Issuance of Ordinary Shares and Convertible Shares.    All issuances of Ordinary Shares and Convertible Shares
pursuant to this Plan shall be pursuant to and in accordance with a written agreement between the Company and the Participants expressly issuing such Ordinary Shares or Convertible Shares (the
"Management Equity Agreement") and no Participant shall have any rights in respect of any Ordinary Shares or Convertible Shares issued under this Plan unless and until such Participant has executed
and delivered the Management Equity Agreement and has paid the purchase price and/or conversion price therefor. The Management Equity Agreement shall provide, among other things, the Company (and such
other persons as the Company shall designate) the right to repurchase from such Participant some or all of his or her Convertible Shares (and Ordinary Shares issuable upon conversion of Convertible
Shares) upon the termination of such Participant's employment or service as 

2

 

an
officer or director with the Group Companies for any reason. If any Shares are repurchased by the Company, such Shares shall again be available for reissuance under this Plan. 

        5.    Certain Terms of Ordinary Shares and Convertible Shares.    

        (a)    Purchase Price.    Class A Convertible Shares, Class B Convertible Shares and Class C
Convertible Shares issued under this Plan shall be issued for a purchase price equal to €.001 per share. Ordinary Shares issued under this Plan shall be issued for a purchase price
equal to 100% of the fair market value thereof as of the date of issuance. 

        (b)    Power to Issue Convertible Shares.    All Ordinary Shares and Convertible Shares issued under this Plan shall
be subject to such terms and conditions set forth in this Plan, the Management Equity Agreement and the Articles of Association. 

        (c)    Conversion Price.    Each Class A Convertible Share, Class B Convertible Share and each
Class C Convertible Share shall, upon vesting, convert into one Class D Convertible Share without payment of any conversion price. The conversion price for each Class D
Convertible Share into an Ordinary Share shall be fixed by the Board, but shall be 100% of the fair market value of an Ordinary Share on the date of issuance or sale to a Participant of any
Class A Convertible Share, Class B Convertible Share or Class C Convertible Share, as applicable, less the purchase price for each Class A Convertible Share, Class B
Convertible Share or Class C Convertible Share, as applicable; provided that the conversion price of Convertible Shares issued on or before
January 17, 2003 shall, subject to the immediately following further proviso, be €9.999; provided further that in the event that
any share capital
reduction of the Company is consummated on or prior to July 31, 2004, the conversion price of any share issued prior to consummation of such share capital reduction shall be further reduced as
set forth in the Management Equity Agreement. 

        (d)    Vesting of Convertible Shares.    Except as otherwise provided in the Management Equity Agreement,
(i) 40% of the Convertible Shares issued pursuant to this Plan shall be Class A Convertible Shares which shall become time vested in accordance with the schedule set forth in the
Management Equity Agreement, (ii) 40% of the Convertible Shares issued pursuant to this Plan shall be Class B Convertible Shares which shall become vested upon achievement of certain
performance targets as set forth in the Management Equity Agreement, and (iii) 20% of the Convertible Shares issued pursuant to this Plan shall be Class C Convertible Shares which shall
become vested upon achievement of certain performance targets as set forth in the Management Equity Agreement. 

        (e)    Conversion Procedures.    Each Class A Convertible Share, Class B Convertible Share and
Class C Convertible Share shall automatically convert into one Class D Convertible Share only upon the vesting of such Class A Convertible Share, Class B Convertible Share
or Class C Convertible Share, respectively, and each Class D Convertible Share shall convert into one Ordinary Share only upon payment of the conversion price for such Ordinary Share,
delivery of the certificate representing the Class D Convertible Shares being converted and satisfaction of other conditions to conversion specified herein, in the Management Equity Agreement
and the Company's Articles of Association. Each Class D Convertible Share shall be converted into an Ordinary Share by written notice of the holder thereof to the Company (to the attention of
the Chief Executive Officer or Secretary) in the manner provided by the Management Equity Agreement. Any holder of any Class D Convertible Shares shall be required, as a condition precedent to
such holder's conversion of such Class D Convertible Shares at such person's expense, to supply the Board with such evidence, representations, agreements or assurances as necessary in order to
confirm the propriety of the sale of securities by reason of such conversion under applicable securities laws or requirements of any applicable governmental authority, and the Company shall not be
obligated to issue any Ordinary Shares issuable upon conversion of any Class D Convertible Shares until all such evidence, representations, agreements and assurances 

3

 

shall
have been supplied to and reviewed by the Board. No holder of Convertible Shares shall have any rights as a holder of Ordinary Shares under this Plan until and unless such Ordinary Shares are
issued and delivered to such holder of Convertible Shares. The conversion price paid upon the conversion of any Convertible Share granted under this Plan shall be added to the general funds of the
Company and may be used for any proper corporate purpose. 

        (f)    Conversion.    No Convertible Share issued hereunder or under the Management Equity Agreement, or upon
conversion of any other class of Convertible Shares, shall be convertible after the seventh anniversary of the Underlying Date of Issuance. When used herein, the "Underlying Date of Issuance" means
(i) with respect to any Class A Convertible Share, Class B Convertible Share or Class C Convertible Share, the date of issuance for such Convertible Share and
(ii) with respect to any Class D Convertible Share, the date of issuance for the Class A Convertible Share, the Class B Convertible Share or the Class C Convertible
Share from which such Class D Convertible Share has been converted. 

        6.    Additional Provisions.    

        (a)    Listing, Registration and Compliance with Laws and Regulations.    All Ordinary Shares and/or Convertible
Shares issued pursuant to this Plan shall be subject to the requirement that if the listing, registration or qualification upon any securities exchange or under any state or federal securities or
other law or regulation of such Ordinary Shares or any Convertible Shares or the consent or approval of any governmental regulatory body, is necessary as a condition to or in connection with the
issuance or conversion hereunder of such Ordinary Shares or Convertible Shares, no such Ordinary Shares or Convertible Shares may be issued or converted (as the case may be) unless such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Board acting in good faith;  provided that to the extent such issuance
or conversion is prohibited or delayed as a result thereof, any time limit on issuance or conversion expiring
during such prohibited period shall automatically be extended until the 30th day after the expiration of such period. The recipient of such Ordinary Shares or Convertible Shares will
supply the Company with such certificates, representations and information as the Company shall request and shall otherwise cooperate with the Company in obtaining such listing, registration,
qualification, consent or approval. In the case of officers and other persons subject to insider trading or short swing profits laws, rules or regulations, the Board may at any time impose any
limitations upon the conversion of Convertible Shares that are necessary in order to comply with such insider trading and short swing profits laws, rules and regulations. If the Company, as part of an
offering of securities or otherwise, finds it desirable because of federal or state regulatory requirements to reduce the period during which any Convertible Shares may be converted, the Board may, in
its discretion and without the holders' consent, so reduce such period on not less than 10 days' written notice to the holders thereof. Without limiting rights that any Participant has pursuant
to any other agreement to which such Participant is a party, nothing contained herein shall obligate the Company to register any Ordinary Shares, Convertible Shares or other securities under
applicable securities laws. 

        (b)    Non-transferability.    The Ordinary Shares and Convertible Shares issued under this Plan are
subject to restrictions on transfer set forth in the Management Equity Agreement. 

        (c)    Taxes.    The Company shall be entitled, if necessary or desirable, to withhold (or secure or require payment
from a Participant in lieu of withholding) the amount of any withholding or other tax due with respect to any amount payable and/or shares issuable under this Plan, and the Company may defer such
payment or issuance unless indemnified to its satisfaction. 

4

 

        (d)    No Right to Employment Conferred.    

	(i)
	Nothing
in this Plan or (in the absence of an express provision to the contrary) in the Management Equity Agreement shall confer on any person any right to continue in the employment
of, or to serve as an officer or director for, any Group Company or interfere in any way with the right of any Group Company to terminate such person's employment at any time.

	(ii)
	Neither
this Plan nor the Management Equity Agreement shall form part of any contract of employment or contract for services between any Group Company and any Participant;

	(iii)
	The
benefit to each Participant of participation in this Agreement and the Management Equity Plan shall not form any part of his remuneration or count as his remuneration for any
purpose and shall not be pensionable; and

	(iv)
	If
a Participant ceases to be employed by any Group Company, he shall not be entitled to compensation for the loss of any right or benefit or prospective right or benefit under this
Plan and the Management Equity Agreement whether by way of damages for unfair dismissal, wrongful dismissal, breach of contract or otherwise. 

        7.    Amendment.    At any time the Board may make such administrative additions or amendments as it deems advisable
under this Plan. If any addition or amendment is not administrative, such amendment shall be effective if it has received the prior written consent of (a) the Board and (b) (i) as long
as Gary McGann serves as the chief executive officer of the Company, Gary McGann, (ii) after Gary McGann no longer serves as the chief executive officer of the Company, any of
Dr. Michael W.J. Smurfit, Anthony P.J. Smurfit or Ian J. Curley, as long as any such Person remains a senior executive officer of the Company, or (iii) the holders of a majority of the
Convertible Shares (and Ordinary Shares issued upon conversion of the Convertible Shares) issued hereunder that are then outstanding. 

        8.    Termination.    This Plan shall terminate on December 31, 2008. No securities shall be issued under this
Plan after this Plan's termination, but the termination of this Plan shall not have any other effect. 

        9.    Financial Statements.    Upon the reasonable request to the Chief Executive Officer or the Board of any
Participant then holding Ordinary Shares or Convertible Shares issued hereunder, the Company will provide or make available for inspection by such Participant copies of the annual audited financial
statements of the Company. 

        10.    Definitions.    

        (a)   "Associated Company" means any company having an Equity Share Capital of which not less than 20% in nominal value is
beneficially owned by any Group Company. 

        (b)   "Board" means the Company's Compensation Committee or if a Compensation Committee no longer exists, the Company's Board
of Directors. 

        (c)   "Class A Convertible Shares" has the meaning given to such term in the Company's Articles of Association. 

        (d)   "Class B Convertible Shares" has the meaning given to such term in the Company's Articles of Association. 

        (e)   "Class C Convertible Shares" has the meaning given to such term in the Company's Articles of Association. 

        (f)    "Class D Convertible Shares" has the meaning given to such term in the Company's Articles of Association. 

5

 

        (g)   "Company" as applied as of any given time shall mean JSG Packaging Limited, except that if prior to the given time any
corporation or other entity shall have acquired all or a substantial part of the assets of the Company (as herein defined), and shall have agreed to assume the obligations of the Company under this
Plan, then such corporation or other entity shall be deemed to be the Company at the given time. 

        (h)   "Convertible Shares" means, collectively, Class A Convertible Shares, Class B Convertible Shares,
Class C Convertible Shares and Class D Convertible Shares. 

        (i)    "Equity Share Capital" shall have the meaning assigned in Section 155 of the Companies Act, 1963. 

        (j)    "Group Companies" means the Company, Jefferson Smurfit Group Limited and their respective Subsidiaries and Associated
Companies and "Group Company" means any of the Group Companies. 

        (k)   "Participant" means any eligible employee, director or officer of the Company, Jefferson Smurfit Group Limited or any of
their respective Subsidiaries. 

        (l)    "Person" means an individual, a partnership, a limited liability company an unlimited liability company, a company
limited by guarantee, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political
subdivision thereof. 

        (m)  "Subsidiary" means, with respect to any Person, any corporation, limited liability company, partnership, association or
other business entity of which (i) if a corporation, not less than 50% of the total voting power of stock entitled (without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof,
or (ii) if a limited liability company, partnership, association or other business entity, a majority of the partnership or other similar ownership interest thereof is at the time owned or
controlled, directly or indirectly, by any Person or one or more Subsidiaries of that person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority
ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership,
association or other business entity gains or losses or shall be or control the managing general partner of such limited liability company, partnership, association or other business entity. 

        11.    Effectiveness.    This Plan shall become effective upon consummation of the Exchange (as defined in the
Management Equity Agreement, dated as of the date hereof). 

*
* * * 

6

QuickLinks

Exhibit 10.4

JSG PACKAGING LIMITED 2004 MANAGEMENT EQUITY PLAN

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