Document:

Exhibit 4.9

 

SECOND AMENDED AND
RESTATED

MANAGEMENT EQUITY AGREEMENT

THIS SECOND AMENDED AND
RESTATED MANAGEMENT EQUITY AGREEMENT (this “Agreement”) is made as of
March 9, 2007 and effective as of the date that the Company (as hereinafter
defined) is admitted for Listing with the Irish Stock Exchange (the date of
admission, the “Effective Date”), among Smurfit Kappa Public Limited
Company, a public limited company organized under the laws of Ireland (the “Company”),
and each of the executives that become party hereto from time to time pursuant
to the Management Equity Plan (as hereinafter defined) by executing a signature
page to be attached hereto or is otherwise party to this Agreement by way of
signature to a Prior Agreement (each, an “Executive”).

Each of the Executives
party hereto has previously acquired Class A Convertible Shares, Class B
Convertible Shares, Class C Convertible Shares and Ordinary Shares, which had
the rights and privileges set forth in the Company’s Articles of Association
and that certain Management Equity Agreement, dated as of February 6, 2004 (as
amended from time, the “First Prior Agreement”).

SKG is party to that
certain Share Purchase Agreement, dated as of November 23, 2005, by and among
Smurfit Kappa Group Limited (formerly JSG Packaging Limited), JSG Acquisitions,
Smurfit Kappa Feeder G.P. Limited (in its capacity as general partner of
Smurfit Kappa Feeder Limited) (the “Kappa Investor”) and certain other
Persons party thereto, pursuant to which a Subsidiary of the Company acquired,
on December 1, 2005 (the “Kappa Completion Date”), all of the issued
share capital of Kappa Holding B.V. (as amended from time to time, the “Kappa
Purchase Agreement”).  At or after
the Kappa Completion Date, (i) each Ordinary Share issued to Executives was
reclassified to a Class A Ordinary Share, (ii) certain Executives (including
certain Electing Executives) exchanged Class A Convertible Shares, Class B
Convertible Shares and Class C Convertible Shares for, respectively, Class E
Convertible Shares, Class F Convertible Shares and Class G Convertible Shares,
each of which, upon vesting, converted into one Class D Convertible Share, and
upon payment of the Class D Conversion Price applicable thereto, into one Class
A Ordinary Share, (iii) certain Electing Executives acquired Class H
Convertible Shares, each of which, upon vesting, converted into one Class I
Convertible Share, and upon payment of the Class I Conversion Price applicable
thereto, into one Class B Ordinary Share, and (iv) the First Prior Agreement
was amended and restated in the form that certain Amended and Restated
Management Equity Agreement, dated as of December 1, 2005, by and among Smurfit
Kappa Group Limited (“SKG”), certain Executives, the Kappa Investor and
the MDCP Co-Investors (the “Second Prior Agreement”, and together with
the First Prior Agreement, the “Prior Agreements”).

As of the date of this
Agreement, no Class I Convertible Shares have been issued by the Company.

In connection with an
exchange offer for the share capital, and rights to acquire share capital, of
SKG completed by the Company, the Company assumed all rights and obligations of

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SKG under the Second
Prior Agreement (and such Second Prior Agreement, after such assignment, is
still referred to as the Second Prior Agreement for all purposes hereof).

In connection with the
Company’s initial Listing, it is expected that (i) certain Class A Convertible
Shares, Class B Convertible Shares, Class C Convertible Shares, Class E
Convertible Shares, Class F Convertible Shares, and Class G Convertible Shares
will vest and automatically convert into Class D Convertible Shares, (ii)
certain Class H Convertible Shares will vest and automatically convert into
Class I Convertible Shares, (iii) Class A Convertible Shares, Class B Convertible
Shares, Class C Convertible Shares, Class E Convertible Shares, Class F
Convertible Shares, Class G Convertible Shares and Class H Convertible Shares
that did not vest on or prior to the Listing will convert into Class A1
Convertible Shares, Class A2 Convertible Shares and Class A3 Convertible
Shares, (iv) all Class A Ordinary Shares and Class B Ordinary Shares will be
reclassified as Ordinary Shares, (v) each Class I Convertible Share will be
reclassified as a Class D Convertible Share, and (vi) each Class D Convertible
Share issued and outstanding as of the time of the Listing or that becomes
issued and outstanding after the Listing as a result of vesting of any Class A1
Convertible Share, Class A2 Convertible Share and/or Class A3 Convertible Share
shall, upon payment of the Class D Conversion Price convert into one Ordinary
Share.

The Convertible Shares
and Ordinary Shares owned by an Executive, together with the Convertible Shares
to be acquired by an Executive hereunder, are subject to the Company’s 2007
Management Equity Plan, a copy of which is attached as Annex A hereto
(as amended from time to time in accordance with its terms, the “Management
Equity Plan”).  Capitalized terms not
otherwise defined herein have the meanings set forth in paragraph 7 of
this Agreement.

The parties hereto agree
as follows:

1.             Family Member. 
In event that any Ordinary Shares or Convertible Shares of the Company
are held by any Family Member (including as a result of transfer after the date
hereof), the rights, obligations, restrictions and conditions applicable to
Executive Stock pursuant to this Agreement will be applicable to shares of such
Executive Stock issued to or held by any Family Member as if held by such
Executive and the issue or transfer to such Family Member shall be conditional
upon such Family Member having agreed in writing to be bound by the provisions
of this Agreement.

2.             Conversion Rules Regarding Convertible Shares.

(a)           Convertibility of
Class A1 Convertible Shares, Class A2 Convertible Shares, and Class A3
Convertible Shares.  Each Class A1
Convertible Share, each Class A2 Convertible Share, and each Class A3
Convertible Share will automatically convert into one Class D Convertible Share
in accordance with this Agreement once it has fully vested.

(b)           Vesting.

(i)       Subject to paragraph 2(c), each
Executive’s Class A1 Convertible Shares, Class A2 Convertible Shares and Class
A3 Convertible Shares shall become

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vested in accordance with the following
schedule, if, but only if, as of each such date such Executive is and has
continued since the Effective Date to be employed by or to serve as an officer
or director for the Company and its Subsidiaries:

	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
  Class of Convertible Shares

  	
   

  	
  Date of Vesting

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Class A1 Convertible Shares

  	
   

  	
  First
  Anniversary of Effective Time

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Class A2 Convertible Shares

  	
   

  	
  Second
  Anniversary of Effective Time

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Class A3 Convertible Shares

  	
   

  	
  Third
  Anniversary of Effective Time

  	
   

  

 

None of an Executive’s
Class A1 Convertible Shares, Class A2 Convertible Shares or Class A3
Convertible Shares shall become vested if such Executive ceases to be employed
by, or to serve as an officer or director for, the Company or its Subsidiaries
prior to the first anniversary of the Effective Time.  None of an Executive’s Class A2 Convertible
Shares or Class A3 Convertible Shares shall become vested if such Executive
ceases to be employed by, or to serve as an officer or director for, the
Company or its Subsidiaries prior to the second anniversary of the Effective
Time.  None of an Executive’s Class A3
Convertible Shares shall become vested if such Executive ceases to be employed
by, or to serve as an officer or director for, the Company or its Subsidiaries
prior to the third anniversary of the Effective Time.    Notwithstanding the foregoing, (i) upon the
retirement at (with the consent of the Company) or after the Effective Time,
from the Company and its Subsidiaries of an Executive who has achieved age 65
at or after the Effective Time, all of an Executive’s Class A1 Convertible
Shares, Class A2 Convertible Shares and Class A3 Convertible Shares which have
not previously vested shall vest upon such retirement and convert into an equal
number of Class D Convertible Shares and (ii) upon the occurrence of a Sale of
the Company after the Effective Time, all of an Executive’s Class A1
Convertible Shares, Class A2 Convertible Shares and Class A3 Convertible Shares
which have not previously vested shall become vested and shall convert to an
equal number of Class D Convertible Shares upon the occurrence of such event; provided
that no Class A1 Convertible Shares, Class A2 Convertible Shares and/or Class
A3 Convertible Shares shall vest for any Executive (or Executive’s transferees)
upon the occurrence of a Sale of the Company after the Effective Time if the
Executive holding such Class A Convertible Shares or from whom the Class A
Convertible Shares were transferred is no longer employed by, or no longer
serves as an officer or director for, the Company and its Subsidiaries as of
the date of the occurrence of the Sale of the Company.

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(ii)    Notwithstanding
the provisions of paragraph (i) foregoing, as a condition to accelerated vesting
of such Executive’s Class A1 Convertible Shares, Class A2 Convertible Shares
and/or Class A3 Convertible Shares in connection with a Sale of the Company,
such Executive shall, if requested by the purchaser of the Company and for no
additional consideration therefor, agree to continued employment for up to 12
months following such Sale of the Company so long as such Executive’s
compensation package and job description immediately following such Sale of the
Company is substantially similar with respect to remuneration (other than with
respect to equity participation), scope of duties, responsibility and job
location to such Executive’s compensation package and job description
immediately prior to such event.

(iii)   In
addition to the vesting otherwise herein described, all or any portion of the
Class A1 Convertible Shares, Class A2 Convertible Shares, and Class A3
Convertible Shares may be vested in the discretion of the Board exercised at
any time.

(c)           Effect of Termination on Vesting.  If at any time for any reason an Executive is
no longer an employee of the Company or any of its Subsidiaries and also is no
longer a director of the Company or any of its Subsidiaries, such Executive’s
Class A1 Convertible Shares, Class A2 Convertible Shares and Class A3 Convertible
Shares shall be vested and fully convertible with respect to that portion of
such Executive’s Class A1 Convertible Shares, Class A2 Convertible Shares and
Class A3 Convertible Shares that were vested and convertible on the date of
such termination (such Executive’s “Termination Date”), and, unless
otherwise determined by the Board, any portion of such Executive’s Class A1
Convertible Shares, Class A2 Convertible Shares and Class A3 Convertible Shares
that were not vested and convertible as of such Executive’s Termination Date
shall not vest from and after the Termination Date and shall not be convertible
into Class D Convertible Shares from and after the Termination Date.

(d)           Conversion
Procedures for Class D Convertible Shares. 
An Executive may, upon payment in full in cash of the Class D Conversion
Price per share, convert all or any portion of his or her outstanding Class D
Convertible Shares (whether such Class D Convertible Shares are outstanding as
of the Effective Time or otherwise are outstanding as a result of Class A1
Convertible Shares, Class A2 Convertible Shares and/or Class A3 Convertible
Shares) into Ordinary Shares at any time and from time to time.  As a condition to any conversion of any Class
D Convertible Shares, such Executive shall provide the Company with such
evidence, representations, agreements or assurances as required by the
Management Equity Plan.  An Executive
shall effect conversion of his Class D Convertible Shares into Ordinary Shares
by delivering (i) written notice of such conversion to the Company (to the
attention of the Company’s Chief Executive Officer or Secretary), together with
such Executive’s written acknowledgment that he or she has read and has been
afforded an opportunity to ask questions to the management of the Company
regarding all financial and other information provided to or requested by such
Executive regarding the Company and (ii) payment of an amount equal to the
product of (A) the Class D Conversion Price per share multiplied by (B) the
number of Ordinary Shares to be acquired upon such conversion.  Payment of the conversion price for Class D
Convertible Shares shall be made in cash (including check, bank draft or money
order) or, in the sole discretion of the Board, by delivery of a promissory note
(if in accordance with policies approved by the Board).  No Class D Convertible Share shall be
convertible into an Ordinary

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Share 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 D Convertible Share issued upon conversion of a Class A
Convertible Share, Class B Convertible Share or Class C Convertible Share, the
date of issuance for such Class A Convertible Share, Class B Convertible Share
or Class C Convertible Share, as applicable (or in the event that such Class A
Convertible Share, Class  B Convertible
Share or Class C Convertible Share was issued in exchange for a Convertible
Share of Jefferson Smurfit Group Limited, the date of issuance of such
Convertible Share of Jefferson Smurfit Group Limited), (ii) with respect to any
Class D Convertible Share issued upon conversion of a Class E Convertible
Share, Class F Convertible Share, or Class G Convertible Share that was
received in exchange for Class A Convertible Share, Class B Convertible Share
and/or Class C Convertible Share, the Kappa Completion Date, (iii) with respect
to any Class D Convertible Share issued upon conversion of a Class E
Convertible Share, Class F Convertible Share or Class G Convertible Share
otherwise issued by the Company, the date of issuance of such Class E
Convertible Share, Class F Convertible Share or Class G Convertible Share, (iv)
with respect to any Class D Convertible Share arising on the reclassification
of a Class I Convertible Share which, in turn, was issued upon conversion of a
Class H Convertible Share issued on or prior to the Kappa Completion Date, the
Kappa Completion Date, (v) with respect to any Class I Convertible Share issued
upon conversion of a Class H Convertible Share issued after the Kappa
Completion Date, the date of issuance of such Class H Convertible Share, and
(vi) with respect to any Class D Convertible Share issued upon conversion of
Class A1 Convertible Share, Class A2 Convertible Share or Class A3 Convertible
Share, the date of issuance for the Class A1 Convertible Share, the Class A2
Convertible Share, or the Class A3 Convertible Share from which such Class D
Convertible Share has been converted.

3.             Representations and Warranties: Acknowledgments.

(a)           In connection with
the purchase and sale of Executive Stock, each Executive represents and
warrants as follows:

(i)         Executive Stock shall not be disposed
of in contravention of applicable securities laws.

(ii)        Such Executive is sophisticated in financial
matters and is able to evaluate the risks and benefits of the investment in the
Executive Stock.

(iii)       Such Executive is able to bear the
economic risk of such Executive’s investment in Executive Stock acquired
hereunder for an indefinite period of time and acknowledges that the Executive
Stock may not be sold in contravention of applicable securities laws.

(iv)      This Agreement constitutes the legal,
valid and binding obligation of such Executive, enforceable in accordance with
its terms, and the execution, delivery and performance of this Agreement by
such Executive do not and will not conflict with, violate or cause a breach of
any agreement, contract or instrument to which such Executive is a party or any
judgment, order or decree to which such Executive is subject.

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(v)       Any such Executive (or a Family Member of
such Electing Executive) is the beneficial owner of all of the Class A
Convertible Shares, Class B Convertible Shares, Class C Convertible Shares,
Class E Convertible Shares, Class F Convertible Shares and Class G Convertible
Shares of the Company being converted hereunder free and clear of all liens,
encumbrances, charges, security interests, or restrictions on transfer and, as
applicable, such Electing Executive has received for the benefit of the Company
an agreement of such Family Member to the conversion of such Class A
Convertible Shares, Class B Convertible Shares, Class C Convertible Shares,
Class E Convertible Shares, Class F Convertible Shares and Class G Convertible
Shares as herein provided and the agreement of such Family Member to be bound
by this Agreement.

(b)           As an inducement to
the Company to enter into this Agreement, and as a condition thereto, each such
Executive acknowledges and agrees that:

(i)         neither the issuance of the Executive
Stock to such Executive nor any provision contained herein shall entitle such
Executive to remain in the employment of, or to serve as an officer or director
to, the Group Companies or affect the right of the Company to terminate such
Executive’s employment or service as an officer, or director at any time;

(ii)        this Agreement and the Management Equity
Plan shall not form part of any contract of employment or contract for services
between the Company or any Subsidiary and each Executive;

(iii)       the benefit to each Executive 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;

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

(v)       the Company shall have no duty or
obligation to disclose to such Executive, and such Executive shall have no
right to be advised of, any material information regarding the Company and its
Subsidiaries at any time prior to, upon or in connection with the repurchase of
Executive Stock upon the termination of such Executive’s employment with the
Company and its Subsidiaries, the transfer of Executive Stock, the conversion
of a Convertible Share granted hereunder or as otherwise provided hereunder.

4.             Redemption Option.

(a)           In the event (i) any
Executive ceases to be employed by, or to serve as an officer, or director for,
the Company or its Subsidiaries for any reason or, (ii) a Corporate Family

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Member of an
Executive ceases for any reason to be a Corporate Family Member of such
Executive and thereafter fails to comply with the requirements of paragraph
4(f) hereof, or (iii) any Corporate Family Member of an Executive shall
fail to comply with any requirement made pursuant to paragraph 4(g)
hereof (any such event being in respect of such Executive or Corporate Family
Member, his or its “Termination”), all of the Redeemable Stock held by
such Executive or, as the case may be, such Corporate Family Member (whether
held by such Executive or Corporate Family Member or one or more of such
Executive’s transferees) may be redeemed or purchased by the Company pursuant
to the terms and conditions set forth in this paragraph 4 (the “Redemption
Option”).  For the avoidance of
doubt, Class D Convertible Shares, Class I Convertible Shares and Ordinary
Shares are not subject to redemption or purchase pursuant to this paragraph 4
or otherwise.

(b)           In the case of any
Termination, the purchase price for each Class A1 Convertible Share, Class A2
Convertible Share, and Class A3 Convertible Share shall be such Executive’s
Original Cost for such share.

(c)           The Company may
elect to redeem or purchase all or any portion of an Executive’s Redeemable
Stock by delivering written notice (the “Redemption Notice”) to the
holder or holders of such Executive’s Redeemable Stock within 90 days after
such Executive’s Termination (180 days in the case of such Executive’s
Termination upon death or disability). 
The Redemption Notice shall set forth the number of shares of Redeemable
Stock to be acquired from each holder of such Executive’s Redeemable Stock, the
aggregate consideration to be paid for such shares and the time and place for
the closing of the transaction.  The
number of shares to be redeemed or purchased by the Company shall first be
satisfied to the extent possible from the shares of Redeemable Stock held by
such Executive at the time of delivery of the Redemption Notice.  If the number of shares of Redeemable Stock
then held by such Executive is less than the total number of shares of
Redeemable Stock the Company has elected to redeem or purchase, the Company
shall purchase the remaining shares elected to be redeemed or purchased from
the other holder(s) of such Executive’s Redeemable Stock under this Agreement,
pro rata according to the number of shares of such Executive’s Redeemable Stock
held by such other holder(s) at the time of delivery of such Redemption Notice
(determined as close as practicable to the nearest whole shares).  The number of shares of Redeemable Stock to
be purchased hereunder shall be allocated among such Executive and the other
holders of such Executive’s Redeemable Stock (if any) pro rata according to the
number of shares of such Executive’s Redeemable Stock to be purchased from such
persons.

(d)           The closing of the
purchase and sale of the Redeemable Stock pursuant to the Repurchase Option
shall take place on the date designated by the Company in the Redemption
Notice, which date shall not be more than 60 days nor less than five days after
the delivery of the later of either such notice to be delivered.  The Company shall pay for the Redeemable
Stock to be purchased pursuant to the Redemption Option by delivery of a check
or wire transfer of funds in the aggregate amount of the purchase price for
such shares.  The purchasers of
Redeemable Stock hereunder shall be entitled to receive customary
representations and warranties from the sellers regarding the sellers’ good
title to such shares free and clear of any liens or encumbrances).

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(e)           In
the event that the Company elects to exercise rights to redeem or purchase
Redeemable Stock pursuant to this paragraph 4, the Company shall make
all Redeemable Stock acquired pursuant to this paragraph 4 available for
sale to any member of the Company’s management approved in accordance with the
Management Equity Plan as promptly as practicable after a transferee has been
identified in accordance with the Management Equity Plan; provided that
the obligations of the Company pursuant to this paragraph 4(e) shall be
subject to the management member so identified purchasing the Class A1
Convertible Shares, Class A2 Convertible Shares, and Class A3 Convertible
Shares at the same price, in the same manner and on the same terms on which the
Company acquired the Redeemable Stock.

(f)            If
any Corporate Family Member shall cease to be a Corporate Family Member of an
Executive, it shall be required forthwith to notify the Company of the fact and
the manner of such cessation and within 30 days thereafter to transfer all
Executive Stock held by it to such Executive and/or his Family Members.

(g)           The
Company shall be entitled at any time to require any Corporate Family Member to
procure the certification to the Company of the persons owning the voting
shares of such Corporate Family Member and of the manner in which appointments
of its directors are controlled, and of the beneficial ownership of all shares
of such Corporate Family Member entitled to all of the capital, dividend and
other economic interests therein, and to require that such certification shall
be supported by appropriate opinions and/or declarations of counsel and
directors of such Corporate Family Member.

(h)           If
any Corporate Family Member shall fail to comply with a requirement of the
Company made hereunder to the reasonable satisfaction of the Company and within
a period reasonably specified by the Company for compliance, the Company shall
be entitled by 30 days notice in writing to such Corporate Family Member to
declare that unless it shall have complied with such requirement to the Company’s
reasonable satisfaction within the period of such notice, it shall thereupon
cease to be a Corporate Family Member and sub-paragraph (h) of this paragraph
4 shall thereupon have effect.

5.             Restrictions on Transfer.

(a)           Transfer
of Executive Stock.  No Executive
shall sell, transfer, assign, pledge or otherwise dispose of (whether with or
without consideration and whether voluntarily or involun­tarily or by operation
of law) (a “Transfer”) any interest in any Class A1 Convertible Shares,
Class A2 Convertible Shares, Class A3 Convertible Shares, Class D Convertible
Shares, Class I Convertible Shares and/or Ordinary Shares, except pursuant to
the provisions of paragraph 4 hereof, this paragraph 5 or in
connection with a Sale of the Company, unless otherwise agreed to by the
Company.

(b)           Certain
Permitted Transfers.  The
restrictions contained in this paragraph 5 shall not apply with respect
to transfers of shares of Executive Stock (i) pursuant to applicable laws of descent
and distribution, (ii) to an Executive’s Family Member, or (iii) to Corporate
Family Members of such Executive; provided that such restrictions shall
continue to be 

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applicable to shares of such Executive Stock after any such transfer
and the transferees of such Executive Stock shall have agreed in writing to be
bound by the provisions of this Agreement.

(c)           Termination
of Restrictions.

(i)            The restrictions on
Transfer and holding of shares of Executive Stock set forth in this paragraph
5 shall continue with respect to each share of Executive Stock following
any Transfer thereof.

(ii)           Notwithstanding any
provision in this Agreement to the contrary, following the Effective Date, the
restrictions on Transfer of Ordinary Shares set forth in this paragraph 5
shall terminate (A) with respect to Ordinary Shares purchased directly by an
Executive (as opposed to issued upon conversion of Class D Convertible Shares
and/or Class I Convertible Shares), as of the Effective Date, (B) with respect
to Ordinary Shares issued upon conversion of Class D Convertible Shares that
were issued upon conversion of Class A Convertible Shares, Class B Convertible
Shares and Class C Convertible Shares in equal tranches on each of December 31,
2005, December 31, 2006 and December 31, 2007, (C) with respect to Ordinary
Shares issued upon conversion of Class D Convertible Shares and/or Class I
Convertible Shares that were issued upon conversion of Class E Convertible
Shares, Class F Convertible Shares, Class G Convertible Shares and/or Class H
Convertible Shares, in equal tranches on December 31, 2008, December 31, 2009
and December 31, 2010, and (D) with respect to Ordinary Shares issued upon
conversion of Class D Convertible Shares that were issued upon conversion of
Class A1 Convertible Shares, Class A2 Convertible Shares and/or Class A3
Convertible Shares, upon issuance of such Ordinary Shares.

(iii)          The restrictions on
Transfer and holding set forth in this paragraph 5 shall not terminate
with respect to any Class A1 Convertible Shares, Class A2 Convertible Shares,
Class A3 Convertible Shares, Class D Convertible Shares and Class I Convertible
Shares (i.e., such shares shall not be transferable).

(iv)          The restrictions on
Transfer and holding set forth in this paragraph 5 are in addition to
any other restrictions to which an Executive has agreed or does agree,
including the restrictions provided for in paragraph 6 hereof.

6.             Additional Restrictions on
Transfer.  Notwithstanding paragraph
5 hereof, each holder of Executive Stock agrees not to effect any public sale
or distribution of any Executive Stock or other equity securities of the
Company, or any securities convertible into or exchangeable or exercisable for
any of the Company’s equity securities, during the seven days prior to and the
180 days after the Effective Date.  Each
Executive shall execute any lock-up or similar agreement required by the
underwriters managing the Company’s initial Listing as long as such Listing is
consistent with obligations of the Kappa Investor and the MDCP Co-Investors.

7.             Definitions.

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(a)           “Affiliate”
of any Person, means a Person controlling, controlled by or under common
control with such Person.

(b)           “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.

(c)           “Class
A Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.

(d)           “Class
A Ordinary Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.

(e)           “Class
A1 Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately after the Effective Date.

(f)            “Class
A2 Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately after the Effective Date.

(g)           “Class
A3 Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately after to the Effective Date.

(h)           “Class
B Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.

(i)            “Class
B Ordinary Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.

(j)            “Class
C Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.

(k)           “Class
D Conversion Price” means, with respect to any Class D Convertible Share,
the fair market value of an Ordinary Share as of the date of issue of any
Convertible Share which had converted into such Class D Convertible Share less
the amount paid for the Convertible Share which had converted into such Class D
Convertible Share; provided that, with respect to each Convertible Share
issued on or prior to February 6, 2005 (which shall include Class E Convertible
Shares, Class F Convertible Shares and Class G Convertible Shares issued after
February 6, 2005 to the extent such shares were issued upon conversion of Class
A Convertible Shares, Class B Convertible Shares and Class C Convertible Shares
issued prior to February 6, 2005), the “Class D Conversion Price” for the Class
D Convertible Share issued upon conversion of such Convertible Share (a “Relevant
Class D Convertible Share”) shall be €9.999 less an amount per Relevant
Class D Convertible Share calculated according to the following formula:

	
  €R     =     

  	
  RA + I + C

  	
   

  
	
   

  	
      N + W

  

 

Where:

 10
 

 

	
  R

  	
  =

  	
  the amount of the reduction in Class D Conversion
  Price per Relevant Class D Convertible Share.

  
	
   

  	
   

  	
   

  	
   

  
	
  RA

  	
  =

  	
  being the “Reduction Amount”, or the amount paid to
  shareholders in the Reduction (the US Dollar portion of which shall be
  converted to Euro at theexchange rate prevailing on the date of conversion).

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  I 

  	
  =

  	
  the aggregate amount of interest accrued or paid
  (including interest paid by capitalisation pursuant to the agreement relative
  thereto) to the date upon which R is to be determined by the Company’s
  subsidiary, JSG Holdings plc, with respect to the indebtedness incurred by it
  on or prior to the date of the Reduction, for the purposes of on-lending to
  SKG to fund the Reduction Amount and of meeting related costs (the “HYD
  Offering”).

  
	
   

  	
   

  	
   

  	
   

  
	
  C

  	
  =

  	
  the aggregate costs and fees incurred by SKG and JSG
  Holdings plc to underwriters, financial advisers and legal counsel in
  connection with the HYD Offering.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  N

  	
  =

  	
  the number of Ordinary Shares in issue at the date
  of the Reduction.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  W

  	
  =

  	
  the number of Ordinary Shares issuable upon exercise
  of all Warrants of SKG outstanding at the date of the Reduction.

  
	
   

  	
   

  

 

In no event shall the
Class D Conversion Price be reduced to less than €0.

 

(l)            “Class
D Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.                                

(m)          “Class
E Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.                                

(n)           “Class
F Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.                                

(o)           “Class
G Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.                                

(p)           “Class
H Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.                                

(q)           “Class
I Convertible Shares” has the meaning given to such term in the Company’s
Articles of Association, as in effect immediately prior to the Effective Date.                                

(r)            “Convertible
Shares” means each of the Class A Convertible Shares, Class A1 Convertible
Shares, Class A2 Convertible Shares, Class A3 Convertible Shares, Class B
Convertible Shares, Class C Convertible Shares, Class D Convertible Shares,
Class E                              

 

 11
 

Convertible Shares, Class F Convertible Shares, Class G Convertible
Shares, Class H Convertible Shares, and Class I Convertible Shares.

(s)           “Corporate
Family Member” in respect of each Executive, any corporate entity in
respect of which (i) all of its issued voting shares; (ii) the right or power
of appointment of all of its directors; and (iii) at least 85% of the entire
economic interest therein (comprising shares entitling their owners to capital
and dividends in and from such corporate entity) are respectively owned and
held (either directly or through other Corporate Family Members) by such
Executive and/or those Family Members of such Executive as are described in
clause (i) of the definition of Family Member.

(t)            “Electing
Executive” means each Executive that elected to, and did, exchange his or
her Class A Convertible Shares, Class B Convertible Shares and Class C
Convertible Shares for, respectively, Class E Convertible Shares, Class F
Convertible Shares and Class G Convertible Shares.

(u)           “Equity
Share Capital” shall have the meaning assigned in Section 155 of the
Companies Act, 1963.

(v)           “Executive
Stock” shall mean all Ordinary Shares issued or issuable hereunder or
acquired hereinafter by any Executive (including any Ordinary Shares issued or
issuable (either directly or indirectly) upon conversion of any Executive’s
Convertible Shares) and Convertible Shares. 
Executive Stock shall continue to be Executive Stock in the hands of any
holder other than an Executive (except for the Company and except for
transferees in a Public Sale), and except as otherwise provided herein, each
such other holder of Executive Stock shall succeed to all rights and be subject
to all and obligations attributable to an Executive as a holder of Executive
Stock hereunder.  Executive Stock shall
also include shares of the Company’s capital stock and other securities issued
with respect to Executive Stock by way of a stock split, stock dividend or
other recapitalization.     

(w)          “Family
Member” in respect of each Executive, (i) such Executive’s spouse,
descendants (whether natural or adopted), siblings, siblings’ descendants and
siblings’ spouses and any trust solely for the benefit of such Executive and/or
such Executive’s spouse, descendants, siblings, siblings’ descendants and/or
siblings’ spouses and (ii) Corporate Family Members of such Executive; provided
that in respect of Dr. MW J. Smurfit, Mrs. Anne Smurfit (the widow of his
deceased brother Jefferson Smurfit Junior) shall be deemed to be a sibling for
all purposes of this Agreement; provided further that in respect of Mr.
Frank Doyle, Ms. Catriona Moore shall be deemed to be his spouse for all
purposes of this Agreement.

(x)            “5%
Owner” means any Person that owns 5% or more of the Company’s Ordinary
Shares on a fully-diluted basis.

(y)           “Group
Companies” means the Company and its Subsidiaries and Associated Companies
and “Group Company” means any of the Group Companies.

 12
 

(z)            “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.

(aa)         “Kappa
Acquisition” means the acquisition of Kappa effected by the Kappa Purchase
Agreement.

(bb)         “Kappa
Investor” means Smurfit Kappa Feeder G.P. Limited, acting in its capacity
as general partner of, and on behalf of, Smurfit Kappa Feeder L.P., a limited
partnership organized under the laws of Jersey.

(cc)         “Listing”
means the admission of all or any part of any Ordinary Shares to the Official
List of The Irish Stock Exchange Limited or the Official List of the FSA, 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 any Common Equity Securities (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 any Ordinary Shares on the public stock exchange
or securities market in any other jurisdiction.

(dd)         “Majority
Holders” means holders of a majority of Convertible Shares (and Ordinary
Shares issued upon conversion of Convertible Shares) then outstanding.

(ee)         “MDCP
Co-Investors” means, collectively, MDCP IV Global Investments LP, MDCP III
Global Investments LP, and MDSE III Global Investments LP.

(ff)           “Ordinary
Shares” means Ordinary Shares of the Company and any other class of
Ordinary Shares of the Company created after the date of this Agreement in
accordance with the Articles of Association.

(gg)         “Original
Cost” of each Class A1 Convertible Share, Class A2 Convertible Share and
Class A3 Convertible Share issued to an Executive on or prior to the date of
this Agreement (including pursuant to paragraph 1 hereof) shall be equal
to €0.001, and for any Class A1 Convertible Share, Class A2 Convertible Share
and/or Class A3 Convertible Share issued by the Company after the date hereof
shall be the purchase price per share paid therefor as set forth on the
signature page or joinder agreement executed by Executive and accepted by the
Company, in each case as proportionately adjusted for all subsequent stock
splits, stock dividends and other recapitalizations.

(hh)         “Permitted
Transferee” means any holder of Executive Stock who acquired such stock
pursuant to a transfer permitted by paragraph 5(b).

 13
 

(ii)           “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.

(jj)           “Public
Sale” means (x) any sale after a Listing in any European Union member state
or (y) in the case of a Listing in the United States, any sale pursuant to a
registered public offering under the Securities Act or any sale to the public
pursuant to Rule 144 promulgated under the Securities Act effected through
a broker, dealer or market maker.

(kk)         “Redeemable
Stock” means Class A1 Convertible Shares, Class A2 Convertible Shares and
Class A3 Convertible Shares.

(ll)           “Reduction”
means the share capital reduction completed by the Company on February 21, 2005
pursuant to S.72, Companies Act 1963.

(mm)       “Sale
of the Company” means the sale of the Company after the Effective Date to
an Independent Third Party or affiliated group of Independent Third Parties
pursuant to which such party or parties acquire (i) more than 50% of the voting
power of the share capital of the Company or (ii) all or substantially all of
the Company’s assets determined on a consolidated basis; provided that
in no event shall a Sale of the Company be deemed to arise, in whole or in
part, from completion of the Kappa Acquisition and completion of the
transactions contemplated by the Kappa Purchase Agreement.

(nn)         “Securities
Act” means the Securities Act of 1933, as amended.

(oo)         “Subsidiary”(pp)   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.

8.             Notices.  Any notice provided for in this Agreement
must be in writing and must be either personally delivered, mailed by first
class mail (postage prepaid and return receipt requested), sent by reputable
overnight courier service (charges prepaid) or sent by facsimile (hard copy to
follow) to the recipient at the address or facsimile number indicated below:

 14

To the Company:

c/o Smurfit Kappa
Public Limited Company

Headquarters

Beech Hill

Clonskeagh

Dublin 4

Facsimile:        353-1-283-7113

With copies to:

Kirkland &
Ellis LLP

200 East Randolph
Drive

Chicago, IL 60601

Telephone:            (312)
861-2000

Fax:         (312)
861-2200

Attn:       Richard J. Campbell

To Executive:

At the address listed below Executive’s signature on the signature page
attached hereto.

or such other address or facsimile number or to the
attention of such other person as the recipient party shall have specified by prior
written notice to the sending part.  Any
notice under this Agreement shall be deemed to have been given when so
delivered or sent or, if mailed, five days after deposit in the mail, two days
after being sent by reputable overnight courier service (charges prepaid) or on
the same day if received by facsimile during business hours on a business day
(hard copy to follow).

9.      General Provisions.

(a)    Transfers in Violation of Agreement.  Any Transfer or attempted Transfer of any
Executive Stock in violation of any provision of this Agreement shall be void,
and the Company shall not record such Transfer on its books or treat any
purported transferee of such Executive Stock as the owner of such stock for any
purpose.

(b)    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 invalid, illegal or unenforceable in
any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
or any other jurisdiction, but this Agreement shall be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

(c)    Complete Agreement. 
This Agreement, those documents expressly referred to herein, the
Company’s Articles of Association and, with respect to any employee party to
such an 

 15
 

employment letter, any employment letter
between the Company or one of its Subsidiaries and an Executive embody the
complete agreement and understanding among the parties and supersede and
preempt any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof
in any way (including, without limitation, the Prior Agreement).  Notwithstanding the foregoing, (i) nothing
herein shall be deemed to amend, supersede or preempt any agreement of an
Executive made in any Acceptance Form included with that certain Exchange Offer
information memorandum issued by SKG dated on or about January 19, 2004,
including, without limitation, the power of attorney executed in connection
therewith, (ii) nothing herein shall be deemed to amend, supersede or preempt
any agreement of an Executive made in any Acceptance Form included with that
certain Exchange Offer issued by the Company and dated January 26, 2007,
including, without limitation, the power of attorney executed in connection
therewith, and (iii) with respect to any individual party to any Prior
Agreement that does not execute a counterpart to this Agreement to become party
hereto as an Executive, if the amendments affected by this Agreement are not
binding on such individual, such individual shall remain party to, and subject
to the rights, benefits and obligations of, the Prior Agreements to which such
Executive is party.

(d)     Counterparts.  This
Agreement may be executed in separate counterparts (including by facsimile or electronic
transmission), each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

(e)      Successors and Assigns. 
Except as otherwise provided herein, this Agreement shall bind and inure
to the benefit of and be enforceable by each Executive, the Company, the
Investors and their respective successors and assigns (including subsequent
holders of Executive Stock); provided that the rights and obligations of
Executive under this Agreement shall not be assignable except in connection
with a permitted transfer of Executive Stock hereunder.

(f)       Choice of Law. 
This Agreement shall be governed by the internal law of Ireland.  Any suit or action brought against any
Executive 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 subparagraph (f) shall limit any party’s rights to bring any
suit against any party (other than any Executive) or with respect to the subject
matter hereof in any other jurisdiction); provided that in the case more than
one Executive is bringing a claim against the Company on a set of related
facts, all such claims shall be joined in a single proceeding in Ireland.

(g)      Remedies.  Each of
the parties to this Agreement (including the Investors) 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 may 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.

 16
 

 

(h)      Amendment and Waiver. 
The provisions of this Agreement may be amended and waived with respect
to any Executive only with the prior written consent of the Company and the
Majority Holders; provided that any such amendment or waiver that adversely
discriminates against an Executive in a manner that is adversely
disproportionate to such Executive relative to the Majority Holders shall be
effective against such Executive only with the prior written consent of such
Executive.

(i)       Business Days. 
If any time period for giving notice or taking action hereunder expires
on a day which is a Saturday, Sunday or legal holiday in the state in which the
Company’s chief executive office is located, the time period shall be
automatically extended to the business day immediately following such Saturday,
Sunday or holiday.

(j)       Rights of the Company. 
Nothing in this Agreement shall interfere with or limit in any way the
right of the Company to terminate an Executive’s employment, or service as an
officer or director at any time (with or without cause), nor confer upon any
Executive any right to continue in the employ of, or to serve as an officer or
director for, the Company for any period of time or to continue his or her
present (or any other) rate of compensation, and in the event of his or her
termination of employment or termination of his service as an officer, or
director (including, but not limited to, termination by the Company without
cause) any portion of such Executive’s Convertible Shares that were not
previously vested and convertible shall be forfeited.  Nothing in this Agreement shall confer upon
any Executive any right to be selected again as a Management Equity Plan
participant.

(k)      Adjustments.  In
the event of a reorganization, recapitalization, stock dividend or stock split,
or combination or other change in the Ordinary Shares, the Board may, in order
to prevent the dilution or enlargement of rights granted hereunder, make such
adjustments in the number and type of shares authorized by the Management
Equity Plan, the number and type of shares in respect of which the Convertible
Shares granted hereunder are convertible and the Conversion Price specified
herein as may be determined to be appropriate and equitable.  Any such adjustment shall be subject to
confirmation by the Company’s auditors.

(l)       Effectiveness. 
This Agreement shall become effective, with respect to each Executive,
upon the later of (i) execution and delivery of this Agreement by Persons party
to the Second Prior Agreement necessary to cause the amendments to the Second
Prior Agreement to be amended hereby and (ii) immediately prior to the Company’s
initial Listing becoming effective, at which point the Second Prior Agreement
shall be amended and restated in its entirety by this Agreement.  Notwithstanding the foregoing, in the event
that the Company’s initial Listing has not become effective on or prior to
December 31, 2007, the Second Prior Agreement shall remain in full force and
effect and binding on the Company and the Executives.

(m)     Taxes. The
Company shall be entitled, if necessary or desirable, to withhold (or secure or
require payment from an Executive 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 Agreement or the Management Equity Plan, and the Company
may defer any payment or issuance unless indemnified to its satisfaction with
regard to any tax matter for the amounts payable or shares issuable.  Each Executive hereby indemnifies the Company
for any tax, 

 17
 

liability, loss, expense or penalty that the
Company incurs as a result of an Executive not paying the aggregate taxes which
an Executive is required to pay in respect of the Convertible Shares issued
hereunder or the Ordinary Shares issued in respect thereof (including, in each
case, upon sale or disposition thereof). 
Prior to withholding any amount or requiring any indemnification from
any Executive, the Company shall consult with the Executive and his tax
advisors regarding the withholding and the indemnification requested.

(o)      Tax Advice.  Each
Executive will consult with his or her own tax advisor regarding the tax
treatment of the Ordinary Shares and the Convertible Shares (it being
understood that the Company is not giving an opinion with respect to nor
guaranteeing, and shall not be deemed to be giving an opinion with respect to
nor guaranteeing, any tax results or consequences).  Without limiting the generality of the
foregoing, nothing herein shall prohibit the Company from making any filings or
reports it reasonably believes may be required to be made with local
governmental authorities in respect of the Convertible Shares or the Ordinary
Shares issued or issuable hereunder (including upon sale or disposition
thereof).

10.      Listing.  In the
event that the Board and the holders of a majority of the Ordinary Shares
(voting as a single class) then outstanding approve a Listing, each Executive
shall take all necessary or desirable actions in connection with the
consummation of the Listing as requested by the Company.  In the event that such Listing is an
underwritten offering and the managing underwriters advise the Company in
writing that in their opinion the capital stock structure would adversely
affect the marketability of the offering, each Executive shall consent to and
vote for a recapitalization, reorganization and/or exchange of Ordinary Shares
into securities that the managing underwriters, the Board and the holders of a
majority of the Ordinary Shares then outstanding (voting as a single class)
find acceptable, and each Executive shall take all necessary or desirable
actions in connection with the consummation of the recapitalization,
reorganization and/or exchange as requested by the Company: provided that the
resulting securities reflect and are consistent with the rights and preferences
set forth in the Company’s Articles of Association as in effect immediately
prior to such Listing.

 18
 

 

11.      Certificates.  In
the event that any Executive requests or demands that the Company issue one or
more certificates representing the shares of Executive Stock purchased
hereunder, the Company may require that the certificate be registered in the
name of a nominee or custodian designated by the Company (the “Nominee”),
and that, as a condition to such issuance, the Nominee will enter into an
agreement with the Company which shall include, among other things, a provision
that the Nominee will not Transfer such Executive Stock except in strict
accordance with the terms of this Agreement (in which case the Nominee shall
give prior written notice of such Transfer to the Company) without the prior
written consent of the Company.  In the
event that the Nominee does not agree to enter into an agreement with the
Company, each holder of Executive Stock irrevocably agrees that the Company shall
be entitled to retain the certificates representing such Executive Stock in
furtherance of such holder’s obligations hereunder.

*  * 
*  *  *

 19
 

 

IN WITNESS WHEREOF, this
Management Equity Agreement has been executed as of the date first written
above.

	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
  SMURFIT KAPPA PUBLIC LIMITED COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Michael
  O’Riordan

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its: 

  	
  Secretary

  	
   

  
						

 

 20

Acknowledged and agreed as of the date first above
written (solely for purposes of consenting to the amendment and restatement of
the Second Prior Agreement):

MDCP IV GLOBAL INVESTMENTS LP

	
  By:

  	
  MDP IV Global GP, LP

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  MDP Global Investors Limited

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ [Illegible]

  	
   

  
	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MDCP III GLOBAL INVESTMENTS LP

  	
   

  
	
   

  	
   

  
	
  By:

  	
  MDP III Global GP, LP

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  MDP Global Investors Limited

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ [Illegible]

  	
   

  
	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MDSE III GLOBAL INVESTMENTS LP

  	
   

  
	
   

  	
   

  
	
  By:

  	
  MDP III Global GP, LP

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  MDP Global Investors Limited

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ [Illegible]

  	
   

  
	
  Its:

  	
   

  	
   

  
				

 

 21
 

Acknowledged and agreed as of the date first above
written:

 

	
  /s/ Dr. MICHAEL
  W.J. SMURFIT

  	
   

  
	
  Dr. Michael W.J. Smurfit

  
	
   

  
	
   

  
	
   

  
	
  /s/ GARY
  MCGANN

  	
   

  
	
  Gary McGann

  
	
   

  
	
   

  
	
   

  
	
  /s/ ANTHONY
  P.J. SMURFIT

  	
   

  
	
  Anthony P.J. Smurfit

  
	
   

  
	
   

  
	
   

  
	
  /s/ IAN J.
  CURLEY

  	
   

  
	
  Ian J. Curley

  
					

 

 22
 

Acknowledged and agreed as of the date first above
written (solely for purposes of consenting to the amendment and restatement of
the Second Prior Agreement):

Smurfit Kappa Feeder G.P. Limited acting in its
capacity as general partner of, and on behalf of, Smurfit Kappa Feeder L.P.

 

	
  By:

  	
  /s/ CARL
  HANSEN

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  Carl Hansen — Director

  	
   

  

 

 23Exhibit
4.12

 

 

 

SMURFIT KAPPA PLC

 

 

 

2007 SHARE INCENTIVE PLAN

Adopted by Ordinary
Resolution on 12 March 2007

Effective as of 20 March
2007

 

 

 

 

 

 

William Fry

Solicitors

Fitzwilton House

Wilton Place

Dublin 2

www.williamfry.ie

© William Fry 2007

001042.0894.OOC/MRO

CONTENTS

	
  1.

  	
   

  	
  DEFINITION AND INTERPRETATION

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  ISSUANCE OF PRE-CONVERTIBLE SHARES

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  THE PERFORMANCE PERIODS AND THE PERFORMANCE
  CONDITION(S)

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  SHARE LIMITS — GENERAL

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  SHARE LIMITS — INDIVIDUAL

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  CONVERSION OF PRE-CONVERTIBLE SHARES TO D
  CONVERTIBLE SHARES

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  CONVERSION OF D CONVERTIBLE SHARES TO ORDINARY
  SHARES

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  CESSATION OF EMPLOYMENT BEFORE THE PERFORMANCE
  CONVERSION DATE

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  CESSATION OF EMPLOYMENT AFTER THE PERFORMANCE
  CONVERSION DATE

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  BREACH OF CONTRACT

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  MANNER OF CONVERSION OF D CONVERTIBLE SHARES

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  NATURE OF PARTICIPATION

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  NON-TRANSFERABILITY OF CONVERTIBLE SHARES

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  TAKE-OVER, RECONSTRUCTION AND WINDING-UP

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  VARIATION OF CAPITAL

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  COMPLIANCE

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  ALTERATIONS AND TERMINATION

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  21

  

 

	
  SCHEDULE 1 - INVITATION TO SUBSCRIBE

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 2 - APPLICATION TO SUBSCRIBE

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 3 - PERFORMANCE CONVERSION NOTICE

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 4 - NOTICE OF CONVERSION TO ORDINARY
  SHARES

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 5 - EARNINGS PER SHARE PERFORMANCE
  CONDITION

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 6 - TOTAL SHAREHOLDER RETURN
  PERFORMANCE CONDITION

  	
   

  	
  29

  

 

 2

 

SMURFIT KAPPA PLC

2007 Share Incentive Plan

RULES

This document sets out
the terms of the 2007 Share Incentive Plan established by Smurfit Kappa plc (“the
Company”) for the benefit of employees of the Company and its Subsidiaries (as
defined herein).

1.                                               Definition and Interpretation

1.1                                          In these Rules, the following words and
expressions shall have the following meanings:

1.1.1                                “Application
to  Subscribe”, the
application by an Eligible Employee to subscribe for B or C Convertible Shares
in the form attached as Schedule 2 or such other form as the Committee may
approve from time to time;

1.1.2                                “Articles of
Association”, the articles of association of the Company in effect
from time to time;

1.1.3                                “Associated
Company” a company, not being a Subsidiary, of which any Group
Company or Group Companies is or are a member or members holding not less than
20% of the nominal value of its equity share capital or otherwise in which it
or they control at least 20% of the voting rights conferred on shareholders in
respect of their shares (or, in the case of a company not having a share
capital, on members) to vote at general meetings of the company on all, or
substantially all, matters;

1.1.4                                “B
Convertible Share”, a B Convertible Share in the Company, nominal
value €0.001;

1.1.5                                “Basis Year”,
the most recent Financial Year ended before the Issuance Date;

1.1.6                                “Board”, the Board of Directors of the Company;

1.1.7                                “C
Convertible Share”, a C Convertible Share in the Company, nominal
value €0.001;

1.1.8                                “Cesser Date”, the date on which a Participant ceases to be
an Eligible Employee;

1.1.9                                “Committee”,
the Compensation Committee of the Board or any other duly authorised committee
of the Board authorised by the Board from time to time provided that, unless
otherwise determined by the Board, the members of such committee shall all be
independent non-executive directors of the Company for the purposes of the
Combined Code on Corporate Governance;

 3
 

1.1.10                          “Control”,
in relation to the Company, the power of a person to secure:

(a)                                           by means of the holding of shares or the
possession of voting power in or in relation to the Company or any other body
corporate; or

(b)                                          by virtue of any powers conferred by the
Articles of Association of the Company or of any other body corporate;

that the affairs
of the Company are conducted in accordance with the wishes of that person;

1.1.11                          “Conversion Certificate”, a certificate evidencing the conversion of
Pre- Convertible Shares into D Convertible Shares, as described in Rule 6.4;

1.1.12                          “Conversion Price”,
in relation to a D Convertible Share, the amount equal to the excess of the
Ordinary Share Market Value on the Invitation Date of the Relevant
Pre-Convertible Share over the Subscription Price paid for such Relevant
Pre-Convertible Share, subject to subsequent adjustment pursuant to Rule 15;

1.1.13                          “CPI”, for any period, the Consumer Price Index of
Ireland compiled and published by the Central Statistics Office of the
Government of Ireland (or any successor body thereto) for such period;

1.1.14                          “D Convertible Share”, a D convertible share in the Company, nominal
value €0.001;

1.1.15                          “Dealing Day”,
a day on which the Irish Stock Exchange or, as the case may require, the
Relevant Stock Exchange is open for the transaction of business;

1.1.16                          “Effective Date”, the date on which the Plan comes into
effect, being the effective date of admission of the Ordinary Shares to the
Official List of the Irish Stock Exchange;

1.1.17                          “Eligible
Employee”, any employee (including an executive director) of the
Company and/or any Subsidiary who has not given or received notice of
termination of his employment with the Group and who, unless the Committee in
its sole discretion determines otherwise, is not within two years of his normal
retirement age;

1.1.18                          “Employee Share Scheme”, any scheme or arrangement for the time being
in force in accordance with which any Group Company encourages or facilitates
the holding of shares in the Company by or for the benefit of employees or
former employees of any Group Company, including any person who is or was a
director holding a salaried employment or office in any Group Company but
excluding, for the avoidance of doubt, every scheme or agreement or arrangement
whereby the Pre-IPO Convertible Shares were or may be converted to D Convertible
Shares on or after the Effective Date;

 4
 

1.1.19                          “Employment
Contract”, in relation to a Participant, his terms and conditions of
employment and all related obligations (whether verbal, in writing and/or
implied by law) with any Group Company as in effect at the relevant time and/or
any confidentiality agreement or obligation (whether verbal, in writing and/or
implied by law) in effect between any Group Company and the Participant;

1.1.20                          “EPS”,
in respect of any Financial Year of the Company, the consolidated undiluted
basic earnings per Ordinary Share for that Financial Year as determined by the
Committee from an examination of the published annual consolidated accounts of
the Company; provided that the Committee shall make such adjustments to any such
amounts as it may deem necessary to ensure that the EPS for each relevant
Financial Year shall be calculated on a broadly comparable basis;

1.1.21                          “EPS
Performance Condition”, the meaning ascribed thereto in Schedule 5;

1.1.22                          “Euro”
and “€”, the lawful currency of
the European Communities;

1.1.23                          “Financial
Year”, a financial year of the Company or, as the case may require,
a Peer Group Company (as defined in Part 1 of Schedule 6);

1.1.24                          “Group”,
the Company and each company which is for the time being a Subsidiary and “Group
Company” means any such company, subject always to Rule 1.3;

1.1.25                          “Group
Employer”, in relation to a Participant, the Group Company or, if
more than one, the Group Companies by which he is employed at any relevant time;

1.1.26                          “HICP”,
the Harmonized Index of Consumer Prices, calculated and published by Eurostat,
the Statistical Office of the European Union;

1.1.27                          “Invitation
Date”, in respect of B or C Convertible Shares, the date on which
the Committee resolves to invite an Eligible Employee to subscribe for such
shares pursuant to Rule 2.1;

1.1.28                          “Invitation
to Subscribe”, an invitation issued to an Eligible Employee to
subscribe for a specified number of B or C Convertible Shares, as described in
Rule 2.4;

1.1.29                          “Irish Stock
Exchange”, The Irish Stock Exchange Limited (or any body that may
succeed to its functions);

1.1.30                          “Issuance
Date”, the date of issuance of a B or C Convertible Share.

1.1.31                           “Ordinary
Share  Market Value”, in
relation to an Ordinary Share on any day, the average of the Ordinary Share
Market Prices for the three consecutive Dealing Days immediately prior to that
day or, in the event an Invitation Date occurs before three Dealing Days have
been completed, the average over the lesser number of Dealing Days completed;

 5
 

1.1.32                          “Ordinary
Share”, an ordinary share in the capital of the Company, nominal
value €0.001;

1.1.33                          “Ordinary
Share Market Price”, in respect of a Dealing Day:

(a)                                           on which there shall be a dealing on the Irish
Stock Exchange in respect of the Ordinary Shares, the closing quotation price
in respect of such shares for such Dealing Day, expressed in Euros;

(i)                                              as published in the Irish Stock Exchange Daily
Official List, or any successor publication thereto (the “Official List”); or

(ii)                                           at the option of the Committee, as published on
the official website of the Irish Stock Exchange or that of any reputable
information supplier (as determined by the Committee); and

(b)                                          on which there shall be no dealing on the Irish
Stock Exchange in respect of the Ordinary Shares, the price which is the
closing quotation price for the Dealing Day immediately prior to such date on
which Ordinary Shares were dealt in on the Irish Stock Exchange (as determined
by the Committee in accordance with such of the provisions of paragraph (a) as
it shall think fit);

provided that, if
at any time changes in the procedures of the Irish Stock Exchange shall take
place or for any other reason it is no longer possible, in the opinion of the
Committee, to establish the Ordinary Share Market Price for any Dealing Day by
the above mechanism, the Committee will be entitled to establish such
alternative mechanism as it may reasonably determine to calculate the Ordinary
Share Market Price, expressed in Euros, in respect of any such day in
accordance with the intent of the foregoing provisions of this paragraph;

1.1.34                          “Participant”,
an Eligible Employee who holds one or more Plan Shares or, where the context
permits, his legal personal representatives following his death;

1.1.35                          “Performance
Condition(s)”, the EPS Performance Condition as determined in
accordance with Rule 3 and Schedule 5, subject to Rule 3.6, and the TSR
Performance Condition as determined in accordance with Rule 3 and Schedule 6;

1.1.36                          “Performance Conversion Date”, a date on which Pre-Convertible Shares
convert to D Convertible Shares in accordance with Rule 6;

1.1.37                           “Performance
Percentage”, in respect of C Convertible Shares, the percentage
determined in relation thereto in accordance with Rule 3.5;

1.1.38                          “Performance
Period”, in relation to Pre-Convertible Shares, the period
determined in accordance with Rule 3;

 6
 

1.1.39                          “Plan”,
the Smurfit Kappa plc 2007 Share Incentive Plan as constituted by these Rules
and the Schedules hereto as from time to time amended;

1.1.40                          “Plan Share”,
a B Convertible Share, C Convertible Share or D Convertible Share issued or in
issue pursuant to the Plan;

1.1.41                          “Pre-Convertible
Share”, a B Convertible or C Convertible Share;

1.1.42                          “Pre-Convertible
Holder”, a Participant who holds Pre-Convertible Shares;

1.1.43                          “Pre-IPO
Convertible Shares”, those A Convertible Shares in the Company,
nominal value €0.001, held by certain employees of the Group which shares were
created by the conversion upon the Effective Date of B and/or C and/or F and/or
G and/or H Convertible Shares in the Company formerly held by such employees,
pursuant to a resolution of the Company adopted on 12 March 2007;

1.1.44                          “Redemption Right”, the right of the Company to redeem Plan
Shares pursuant to Article 3.4 of the Articles of Association and as referred
to in Rule 2.3;

1.1.45                          “Relevant Pre-Convertible
Share”, with respect to a D
Convertible Share, the Pre-Convertible Share which converted into such D
Convertible Share on the Performance Conversion Date;

1.1.46                          “Relevant
Stock Exchange”, the meaning ascribed thereto in Part 1 of Schedule
6;

1.1.47                          “Relevant Value”, the meaning ascribed thereto in Rule 5.3;

1.1.48                          “Rules”,
the rules of this Plan as set out in this document or as may be validly amended
from time to time in accordance with their terms;

1.1.49                          “Salary”,
in relation to an Eligible Employee on any date, the Eligible Employee’s annual
base salary in effect as of that date (excluding, for the avoidance of doubt,
bonus payments or entitlements, benefits-in-kind, and pension and other
superannuation benefits);

1.1.50                          “Securities
Dealing Code”, the code adopted by the Company and as may be amended
from time to time which contains provisions the same as or similar in purpose
and effect to the provisions of the Model Code for Securities Transactions by
Directors of Listed Companies issued by the Irish Stock Exchange from time to
time;

1.1.51                          “Stock
Exchange Regulations”, any rules or regulations applying to the
Company and/or any Group Company or any Eligible Employee or Participant and
made by or on behalf of the Irish Stock Exchange or any other stock exchange
upon which Ordinary Shares are listed;

1.1.52                          “Subscription
Price”, with respect to a Pre-Convertible Share, nominal value
€0.001, subject to adjustment pursuant to Rule 15;

 7
 

1.1.53                          “Subsidiary”,
a body corporate which is a subsidiary of the Company within the meaning of
Section 155 of the Companies Act, 1963;

1.1.54                          “TSR
Performance Condition”, the meaning ascribed thereto by Part 1 of
Schedule 6.

1.2                                          For the purposes of interpretation of these
Rules, unless the context otherwise requires:

1.2.1                                any reference to these Rules shall include a
reference to the Schedules hereto which shall be deemed to be incorporated
herein;

1.2.2                                any reference in these Rules to any enactment
is a reference to legislation of Ireland and any such reference shall include a
reference to that enactment as from time to time modified, extended or
re-enacted;

1.2.3                                any reference in these Rules to a Rule shall be
to one of the Rules herein, any reference to a Schedule shall be a reference to
a Schedule to these Rules and any reference in any such Schedule to a Clause
shall be to a Clause of that Schedule;

1.2.4                                no account shall be taken of the headings to
these Rules, which appear for ease of reference only; and

1.2.5                                words denoting the singular shall include the
plural and vice versa.

1.3                                          For all purposes of these Rules, the expression
“Group Company” (wherever used including in particular, without limitation, the
provisions of Rules 8 and 9) shall, in the case of any circumstances envisaged
by Rule 6.4, include any Associated Company by whom the Participant may be
employed at any relevant time.

2.                                               Issuance of Pre-Convertible Shares

2.1                                          Subject to the Rules, the Committee, upon the
terms set out in this Plan, may at any time on or after the Effective Date
resolve to invite one or more Eligible Employees to subscribe for a specified
number of Pre-Convertible Shares under the Plan upon payment of the
Subscription Price.  Such Pre-Convertible
Shares shall be designated as either B Convertible Shares or C Convertible
Shares, and the respective Performance Period and Performance Condition(s)
applicable to B Convertible Shares and C Convertible Shares shall be as
described in Rule 3.  Such
Pre-Convertible Shares shall automatically convert on a one-to-one basis into D
Convertible Shares upon satisfaction of the Performance Condition(s) applicable
to such Pre-Convertible Shares.  Such D
Convertible Shares may be converted on a one-to-one basis into Ordinary Shares,
upon payment of their Conversion Price, subject to and in accordance with these
Rules.

2.2                                          The Committee may at the time it resolves to
invite an Eligible Employee to subscribe for Pre-Convertible Shares determine
that it shall be a condition of such subscription that the Eligible Employee
shall, at the Issuance Date of such shares, be the registered holder of a
specified minimum number of Ordinary Shares and that he shall undertake with
the Company that he shall continue to hold such minimum number of Ordinary
Shares until the expiration of the Performance Period applicable 

 8
 

                                                         to such Pre-Convertible Shares or such later
date as may be determined by the Committee and specified in the Invitation to
Subscribe.

2.3                                          Pre-Convertible Shares and D Convertible Shares
which cease to be capable of conversion into D Convertible Shares and Ordinary
Shares, respectively, in accordance with the Rules, shall be subject to
redemption by the Company at the Subscription Price, in accordance with the
Redemption Right.  Any undertaking given
to the Company by a Participant pursuant to Rule 2.2 that he shall hold a
minimum number of Ordinary Shares until the Pre-Convertible Shares issued to
him pursuant to an Invitation to Subscribe shall have converted into D
Convertible Shares and such D Convertible Shares shall have been converted to
Ordinary Shares shall automatically lapse and cease to have effect on the date
on which any such Pre-Convertible Shares or D Convertible Shares become subject
to the Redemption Right in accordance with the Rules.

2.4                                          The Committee shall send to each Eligible
Employee whom it has resolved pursuant to Rule 2.1 to invite to subscribe for
Pre-Convertible Shares an Invitation to Subscribe, in the form set out in
Schedule 1 to these Rules (or in such other form as it may determine from time
to time) which shall, unless the Committee decides otherwise, specify:

2.4.1                                the Invitation Date;

2.4.2                                the number of B Convertible Shares and/or C
Convertible Shares for which the Eligible Employee may subscribe;

2.4.3                                the aggregate Subscription Price payable;

2.4.4                                the applicable Performance Period(s) and
Performance Condition(s);

2.4.5                                the Conversion Price payable to convert into
Ordinary Shares the D Convertible Shares into which the B or C Convertible
Shares will convert upon satisfaction of the applicable Performance
Condition(s);

2.4.6                                the minimum number of Ordinary Shares (if any)
required to be held by the Eligible Employee as a condition of subscription and
conversion, pursuant to Rule 2.2;

2.4.7                                any other conditions relating to the
Pre-Convertible Shares, the D Convertible Shares, or the Ordinary Shares into
which such D Convertible Shares convert, which may be imposed by the Committee
pursuant to the Rules; and

2.4.8                                the latest date by which the Eligible Employee’s
Application to Subscribe, together with payment of the Subscription Price, must
be received.

2.5                                          The Subscription Price may be paid in cash or
(subject to law and to the Articles of Association) by such other method as the
Committee may approve from time to time.

2.6                                          Following receipt of the Eligible Employee’s
Application to Subscribe, and payment of the Subscription Price, the Committee
shall consider such application and, if approved, direct the issuance or
transfer to the Eligible Employee of the 

 9
 

                                                         Pre-Convertible Shares in respect of which the
application was made, within 30 days after the latest date specified for
receipt of the application, subject to Rule 16.

2.7                                          The Committee may in its sole discretion
determine at any time during the period from the Invitation Date in respect of
Pre-Convertible Shares to the date on which the D Convertible Shares into which
such Pre-Convertible Shares convert are converted into Ordinary Shares, by
notice to the Participant require that as a condition of the conversion of such
D Convertible Shares to Ordinary Shares, the Participant shall undertake in
writing to the Company that he shall not, without the prior consent of the
Committee, dispose of, sell or transfer any or a specified portion of such
Ordinary Shares for a specified period after such conversion (not to exceed two
years), provided, however, that such undertaking shall automatically lapse and
cease to have effect upon the occurrence of any of the events described in
Rules 14.2, 14.3 and 14.4.

3.                                               The Performance Periods and the Performance
Condition(s)

3.1                                          The Performance Period for B Convertible Shares
shall be the period of three consecutive Financial Years commencing no earlier
than the first day of the Financial Year in which the Issuance Date of such
shares occurs.

3.2                                          The Performance Condition for B Convertible
Shares shall be the EPS Performance Condition as determined by the Committee in
accordance with Part 1 of Schedule 5.  B
Convertible Shares shall automatically convert into D Convertible Shares if the
EPS Performance Condition applicable to such shares is satisfied.

3.3                                          The Performance Period for C Convertible Shares
shall be the period of three  consecutive
Financial Years commencing no earlier than the first day of the Financial Year
in which the Issuance Date of such shares occurs.

3.4                                          The Performance Conditions for C Convertible
Shares shall be the fulfilment of :

3.4.1                                the EPS Performance Condition, as determined by
the Committee in accordance with the provisions of Part 2 of Schedule 5; and

3.4.2                                the TSR Performance Condition, as determined by
the Committee in accordance with the provisions of Schedule 6.

3.5                                          With respect to C Convertible Shares, unless
the EPS Performance Condition is satisfied, no such shares shall convert to D
Convertible Shares.  If the EPS
Performance Condition is satisfied, the Committee shall consider the TSR
Performance Condition and determine the Performance Percentage in accordance
with the provisions of Schedule 6.  The
number of C Convertible Shares held by a Pre-Convertible Holder which shall
convert to D Convertible Shares shall be the total number of C Convertible
Shares issued to such holder in respect of the relevant Performance Period
multiplied by the Performance Percentage.

3.6                                          If the Company shall, in pursuance of a
business strategy that has been made known to its members, either directly or
through one or more Subsidiaries acquire another company or business, in
consideration for the payment of money and/or the issue of shares and/or of
debt instruments, which acquisition results in a significant adverse effect on
the Company’s EPS during a Performance Period, as determined by the 

 10
 

                                                         Committee, the Committee may in its sole
discretion make such adjustments to the EPS Performance Condition, or it
considers reasonable and appropriate to take account of such adverse effect
with respect either to all Pre-Convertible Shares issued in respect of such
Performance Period or with respect to all of the B Convertible Shares or all of
the C Convertible Shares issued with respect to such Performance Period, and
may make such adjustment subject to the fulfilment of certain terms and
conditions.  Any such amendment shall be
notified by the Committee to each Participant who holds Pre-Convertible Shares
issued in respect of such Performance Period.

3.7                                          Notwithstanding the foregoing provisions, the
Committee may impose conditions other than the Performance Condition(s)
specified in Rules 3.2 and 3.4 in relation to Pre-Convertible Shares, after
consultation with the Irish Association of Investment Managers.

4.                                               Share Limits — General

4.1                                          The number of B Convertible Shares issued under
the Plan in any period of ten successive years, when aggregated with the number
of shares issued or reserved for issuance pursuant to options or rights granted
after the Effective Date under any other Employee Share Scheme, (but excluding
shares issued or reserved for issuance pursuant to options or rights granted
under employee-wide schemes, up to five percent of the Company’s issued
ordinary share capital from time to time) shall not exceed such number of
shares as represents five percent of the issued ordinary share capital of the
Company from time to time.

4.2                                          The number of C Convertible Shares issued under
the Plan in any period of ten successive years, when aggregated with the number
of B Convertible Shares issued in such period and the number of shares issued
or reserved for issuance pursuant to options or rights granted after the
Effective Date under any other Employee Share Scheme (but excluding shares
issued or reserved for issuance pursuant to options or rights granted under
employee-wide schemes, up to five percent of the Company’s issued ordinary
share capital from time to time) shall not exceed such number of shares as
represents ten percent of the issued ordinary share capital of the Company from
time to time.

4.3                                          The aggregate number of Pre-Convertible Shares
issued under the Plan over any period of three consecutive years and the number
of shares issued or reserved for issuance pursuant to options or rights granted
after the Effective Date and during such period under any other Employee Share
Scheme (but excluding shares issued or reserved for issuance pursuant to
options or rights granted under employee-wide schemes, up to five percent of
the Company’s issued ordinary share capital from time to time) shall not exceed
such number of shares as represents three percent of the issued ordinary share
capital of the Company from time to time.

4.4                                          The aggregate number of Pre-Convertible Shares
issued under the Plan over the period of one year commencing on the Effective
Date and the number of shares issued or reserved for issuance pursuant to
options or rights granted after the Effective Date and during such period under
any other Employee Share Scheme (but excluding shares issued or reserved for
issuance pursuant to options or rights granted under employee-wide schemes, up
to five percent of the Company’s issued ordinary 

 11
 

                                                         share capital from time to time) shall not
exceed such number of shares as represents one and one-half percent of the
issued ordinary share capital of the Company from time to time during such
period.

4.5                                          Plan Shares may be newly issued shares, shares
held in treasury or shares transferred by a trust established by the Company.

5.                                               Share Limits — Individual

5.1                                          The aggregate Relevant Value of the B and C
Convertible Shares that may be issued to an Eligible Employee in any Financial
Year, when aggregated with the Relevant Value of shares subject to outstanding
options or rights granted to such Eligible Employee after the Effective Date
under any other Employee Share Scheme (but excluding shares issued or reserved
for issuance pursuant to options or rights granted under an employee-wide
scheme), shall not exceed 150% of the Eligible Employee’s Salary on the
Invitation Date, provided, however, that if the Invitation Date occurs during
the first Financial Year in which an Eligible Employee is employed by a Group
Company, such limit shall be 200% of the Eligible Employee’s Salary on the
Invitation Date.

5.2                                          The aggregate Relevant Value of the B
Convertible Shares that may be issued to an Eligible Employee in any Financial
Year, when aggregated with the Relevant Value of shares subject to outstanding
options or rights granted to such Eligible Employee after the Effective Date
under any other Employee Share Scheme (but excluding shares issued or reserved
for issuance pursuant to options or rights granted under an employee-wide
scheme), shall not exceed 75% of the Eligible Employee’s Salary on the
Invitation Date, provided, however, that if the Invitation Date occurs during the
first Financial Year in which an Eligible Employee is employed by a Group
company, such limit shall be 100% of the Eligible Employee’s Salary on the
Invitation Date.

5.3                                          For purposes of the limits described in Rule 4
and Rules 5.1 and 5.2;

5.3.1                                the Relevant Value of the B Convertible Shares
and the C Convertible Shares shall be the sum of the Subscription Price paid
and the Conversion Price payable or paid for the conversion to Ordinary Shares
of the D Convertible Shares into which such B Convertible Shares and C
Convertible Shares may convert;

5.3.2                                the Relevant Value of shares subject to options
or rights granted under any other Employee Share Scheme shall, in the case of
an option be the exercise price payable in respect of such option and in
respect of any other right, the market value of the shares subject to such
right on the date of its award, as determined by the Committee;

5.3.3                                Pre-Convertible Shares which have ceased to be
capable of conversion to D Convertible Shares in accordance with the Rules,
whether by reason of the Pre-Convertible Holder ceasing to be an Eligible
Employee prior to the Performance Conversion Date, or the applicable
Performance Condition(s) not having been met, or otherwise, and D Convertible
Shares which cease to be capable of being converted into Ordinary Shares by
reason of the 

 12
 

                                                        Participant ceasing to be an Eligible Employee
and not converting such shares to Ordinary Shares prior to the period specified
for such conversion in Rule 9, or otherwise, and which have thereby become
subject to the Redemption Right, whether or not such right has been exercised,
shall be excluded from the calculation of all limits contained in Rule 4 and
this Rule 5 and such shares shall be available for future issuance or transfer
pursuant to the Plan following such redemption, subject to applicable law and
the Articles of Association; and

5.3.4                                Pre-IPO Convertible Shares shall be excluded
from all such calculations.

6.                                               Conversion of Pre-Convertible Shares to D
Convertible Shares

6.1                                          Following the end of the Performance Period
applicable to Pre-Convertible Shares, the Committee shall as soon as is
reasonably practicable determine the extent to which performance against the
Performance Condition(s) applicable to such shares has been achieved and with
respect to C Convertible Shares, the Performance Percentage.

6.2                                          To the extent the Performance Condition(s)
applicable to a Participant’s Pre- Convertible Shares have been satisfied, as
determined by the Committee based on audited accounts prepared for the last
Financial Year in the Performance Period which have been adopted by the Board,
and provided all of the conditions imposed in relation to such shares pursuant
to the Rules have been satisfied, such shares shall automatically convert into
D Convertible Shares in accordance with the Articles of Association on a date
specified by the Committee (the “Performance Conversion Date”), such date to be
no later than 45 days after adoption of such accounts by the Board, provided
the Participant has remained an Eligible Employee from the period beginning on
the Issuance Date of the Pre-Convertible Shares and ending on the Performance
Conversion Date.

6.3                                          With respect to each individual who is a
Pre-Convertible Holder in respect of a completed Performance Period, the
Committee shall send a Conversion Certificate which shall specify:

6.3.1                                whether or not the applicable Performance
Condition(s) have been satisfied with respect to his Pre-Convertible Shares
and, with respect to C Convertible Shares, the Performance Percentage;

6.3.2                                the number of D Convertible Shares into which
his Pre-Convertible Shares have consequently converted;

6.3.3                                the Performance Conversion Date;

6.3.4                                the latest date on which the D Convertible
Shares may be converted into Ordinary Shares, which date shall be no later than
the tenth anniversary of the Issuance Date of the Relevant Pre-Convertible
Shares;

6.3.5                                the number of Relevant Pre-Convertible Shares
subject to the Redemption Right (if any) by reason of the Performance
Condition(s) not having being satisfied in full; and

 13

6.3.6                                such other conditions applying to the
conversion of the D Convertible Shares as the Committee may determine;

and which otherwise may
be in the form set out in Schedule 3 to these Rules or in such other form as
the Committee may from time to time determine.

6.4                                          Notwithstanding the provisions of Rule 6.2 if a
Participant ceased to be an Eligible Employee prior to the Performance
Conversion Date as a result of the transfer of his employment to an Associated
Company at the request of a Group Company on terms that require him to devote
substantially the whole of his working time to the service of such Associated
Company, if and to the extent that the Committee shall determine that it would
be appropriate to do so, it shall be entitled to deem service with such
Associated Company as service with a Group Company for all purposes of these
Rules.

7.                                               Conversion of D Convertible Shares to Ordinary
Shares

7.1                                          As and from the Performance Conversion Date,
and subject to the Participant having complied with any undertaking given by
him pursuant to Rule 2.2, D Convertible Shares may be converted into Ordinary
Shares at the election of the Participant, subject to payment of the Conversion
Price, in accordance with the Rules.

7.2                                          Subject to Rule 14 and Rule 16, no conversion
of D Convertible Shares into Ordinary Shares may be effected earlier than the
third anniversary of the Issuance Date of the Relevant Pre-Convertible Shares
or later than the tenth anniversary of the Issuance Date of the Relevant
Pre-Convertible Shares.

7.3                                          D Convertible Shares may be converted into
Ordinary Shares in the amount of at least 1,000 D Convertible Shares on each
occasion of conversion (or such greater or lesser number as the Committee may
specify from time to time) and provided that such limitation shall not prevent
one final conversion of D Convertible Shares when the remaining number of D
Convertible Shares held by a Participant is less than 1,000.

8.                                               Cessation of Employment before the Performance
Conversion Date

8.1                                          If a Pre-Convertible Holder ceases to be an
Eligible Employee before the Performance Conversion Date applicable to his
Pre-Convertible Shares then, subject to Rule 8.2, such Pre-Convertible Shares
shall, as of the date on which he ceases to be an Eligible Employee, cease to
be capable of conversion into D Convertible Shares and shall become subject to
the Redemption Right as of the Cesser Date.

8.2                                          If a Pre-Convertible Holder ceases to be an
Eligible Employee before the Performance Conversion Date applicable to his
Pre-Convertible Shares and the reason, or if more than one, the principal
reason for such cessation is:

8.2.1                                the death of the Pre-Convertible Holder; or

8.2.2                                the ill-health, injury or disability (in each
case evidenced to the satisfaction of the Committee) of the Pre-Convertible
Holder; or

 14
 

8.2.3                                the Pre-Convertible Holder being made redundant
by his Group Employer; or

8.2.4                                the retirement of the Pre-Convertible Holder
with the agreement of his Group Employer or his retirement on or after the age
at which the Pre-Convertible Holder is bound to retire in accordance with the
terms of his contract of employment; or

8.2.5                                the Group Employer by which he is employed
ceasing to be a Group Company or his being deemed no longer to be employed by a
Group Company by virtue of the transfer of the undertaking in which he was
employed (and his not being, in either such case, thereupon re-employed by a
Group Company);

or, if the Committee
determines that exceptional circumstances exist which warrant it, the
Committee, may in its sole discretion determine that all or some of the Pre-
Convertible shares held by the Pre-Convertible Holder shall convert into D
Convertible Shares on a date specified by the Committee, subject to the
succeeding provisions of this Rule 8.

Except in the case of the
death of a Pre Convertible Holder or his retirement pursuant to Rule 8.2.4, no
such determination shall be made until after the end of the applicable
Performance Period.

8.3                                          The number of Pre-Convertible Shares which may
be converted into D Convertible Shares pursuant to Rule 8.2 shall not exceed in
aggregate the Relevant Proportion (as defined in Rule 8.6, 8.7 or 8.8 as
appropriate) of the total number of Pre-Convertible Shares to which the
Performance Period applies.

8.4                                          The Committee shall not exercise its discretion
to permit Pre-Convertible Shares to be converted into D Convertible Shares
pursuant to Rule 8.2 unless the Cesser Date shall occur on or after the second
anniversary of the Issuance Date of the Pre-Convertible Shares (or, only in the
case of the death or retirement of the Pre-Convertible Holder as provided in
Rule 8.2.4, such earlier date, if any, as the Committee may determine).

8.5                                          For the purposes of Rule 8.4 the Relevant
Proportion in relation to the Pre-Convertible Holder’s B Convertible Shares
shall, subject to Rule 8.8, mean such proportion of the total number of such
shares as the number of completed calendar quarters from the start of the
applicable Performance Period to the end of the calendar quarter last completed
prior to the Cesser Date, or to the end of the Performance Period, if earlier,
shall bear to the number of calendar quarters in the Performance Period as a
whole.

8.6                                          For the purposes of Rule 8.4 the Relevant
Proportion in relation to the Pre-Convertible Holder’s C Convertible Shares
shall, subject to Rule 8.8 mean such proportion of the total number of such
shares arrived at by multiplying the total number of B Convertible Shares to
which the Performance Period applies by the Performance Percentage, as the
number of completed calendar quarters from the start of the Performance Period
to the end of the calendar quarter last completed prior to 

 15
 

                                                         the Cesser Date, or to the end of the
Performance Period, if earlier, shall bear to the number of calendar quarters
in the Performance Period as a whole.

8.7                                          For the purposes of Rule 8.4, in the case of
the death of the Pre-Convertible Holder, the Relevant Proportion shall be such
proportion of the total number of Pre- Convertible Shares to which the
Performance Period applies as the number of completed calendar quarters from
the start of the Performance Period to the end of the calendar quarter last
completed prior to the Cesser Date, or to the end of the Performance Period, if
earlier, shall bear to the number of calendar quarters in the Performance
Period as a whole.

8.8                                          If Pre-Convertible Shares are converted to D
Convertible Shares pursuant to Rule 8.2, such D Convertible Shares may be
converted into Ordinary Shares within the period of 6 months after the Cesser
Date or, if later, 6 months after the Performance Conversion Date (provided
that such period shall be 12 months or such longer period as the Committee may
specify, if the cessation is caused by the death of the Pre-Convertible Holder)
after which period such shares shall cease to be convertible and shall become
subject to the Redemption Right, subject always to the provisions of Rule 14
and Rule 6.4, but in no event may such Pre-Convertible Shares be converted to D
Convertible Shares on a date later than the tenth anniversary of the Issuance
Date of the Relevant Pre-Convertible Shares.

9.                                               Cessation of Employment after the Performance
Conversion Date

9.1                                          Subject to Rule 9.2 if a Participant ceases to
be an Eligible Employee after the Performance Conversion Date applicable to his
Convertible Shares, then all D Convertible Shares held by him shall cease to be
capable of conversion to Ordinary Shares as of the date six months after the
Cesser Date, but in no event later than the tenth anniversary of the Issuance
Date of the Relevant Pre-Convertible Shares, and shall thereupon become subject
to the Redemption Right as of such date.

9.2                                          If a Participant ceases to be an Eligible
Employee after the Performance Conversion Date and the reason, or if more than
one, the principal reason, for such cessation is a reason set out in Rule 8.2
(including, for the avoidance of doubt, where the Committee determines that
exceptional circumstances exist which warrant it), then the D Convertible
Shares held by him shall continue to be capable of conversion to Ordinary
Shares until the expiration of six months after the Cesser Date (or twelve
months after the Cesser Date in the case of the Participant’s death), or such
longer period as may be determined by the Committee in its sole discretion but
in no event later than the tenth anniversary of the Issuance Date of the
Relevant Pre-Convertible Shares.  Upon
the expiration of the applicable period, the D Convertible Shares held by the
Participant shall cease to be capable of conversion to Ordinary Shares and
shall thereupon become subject to the Redemption Right.

10.                                        Breach of Contract

10.1                                    Notwithstanding any other provision of these
Rules, if, before all of the Plan Shares held by a Participant have been
converted into Ordinary Shares:

 16
 

10.1.1                          the Participant is, or is found to have been,
in fundamental breach of any express or implied terms of any Employment
Contract between him and any Group Company; or

10.1.2                          any other circumstances exist which entitle
such Group Company to summarily terminate his employment;

and in either case the Participant’s employment is terminated by the
Group Company employing him by reason of such breach or other circumstances,
then no Pre-Convertible Shares shall be capable of being converted into D
Convertible Shares and no D Convertible Shares shall be capable of being
converted into Ordinary Shares after the Participant’s Cesser Date and all such
shares shall become subject to the Redemption Right (unless the Committee
determines otherwise in exceptional circumstances).

11.                                        Manner of Conversion of D Convertible Shares

11.1                                    D Convertible Shares shall be converted into
Ordinary Shares only by the Participant serving a written notice (in the form
attached in Schedule 4 or such other form as may be approved from time to time
by the Committee) upon the Company which is accompanied by payment to the
Company of the Conversion Price, in cash or, subject to law and to the Articles
of Association, such other method as may be approved by the Committee from time
to time.

11.2                                    A Conversion Notice shall not be served or
effected during a period in which a Participant is suspended from his
employment pending an investigation into alleged misconduct or while
disciplinary proceedings against him are in process.

11.3                                    As soon as is practicable and in any event
within 30 days after receiving a notice under Rule 11.1, the Company shall,
subject to the provisions of these Rules, issue, transfer or procure the
transfer or issuance to the Participant of the Ordinary Shares.  If the Company is restricted by the
provisions referred to in Rule 16 from effecting such an issuance or transfer,
it shall do so as soon as practicable after it is no longer so restricted.

11.4                                    The issuance and transfer of Plan Shares shall
be subject to the Memorandum and Articles of Association of the Company and to
any necessary consents of any government or any other authorities (whether in
Ireland or any other jurisdiction) under any enactments or regulations from
time to time in force and a Participant shall do all such things as may be
necessary to obtain or obviate the necessity for any such consent.

11.5                                    In relation to anything done pursuant to the
Plan, the Company shall not be under any obligation to procure the issuance or
transfer of Plan Shares and/or do any other thing in relation to an Eligible
Employee or a Participant under or in connection with this Plan (together “Company
Action”) unless and until the Committee is satisfied that either:

11.5.1                          such person has made payment to it and/or to
any Group Company of such sum as is, in the discretion of the Committee,
sufficient to settle any liability for any tax and/or social security
contributions and/or similar imposts which 

 17
 

                                                        are or would be recoverable from such person as
a result of such Company Action and in respect of which the Company and/or any
other Group Company is liable to account (in any jurisdiction); or

11.5.2                          such person has entered into an agreement with
it and/or any such Group Company to ensure that such a payment be made by the
Eligible Employee or a Participant.

11.6                                    All shares issued or transferred under the Plan
shall rank on the same basis as applies to shares of the same class on the date
of issuance or transfer.

12.                                        Nature of Participation

12.1                                    Neither the extension of an Invitation to
Subscribe nor the subsequent issuance or transfer of Pre-Convertible Shares, D
Convertible Shares or Ordinary Shares shall form part of the entitlement of an
Eligible Employee or a Participant to remuneration or benefits pursuant to his
contract of employment nor shall the existence of a contract of employment
between such person and any present or past Group Employer give such person any
right or entitlement to have an Invitation to Subscribe extended to him or Plan
Shares issued to him either subject to any condition or at all.

12.2                                    The rights and obligations of a Participant
under the terms of his office or employment with the Company or any other
present or past Group Company shall not be affected by his participation in
this Plan.  In particular, no benefit
receivable by a Participant under this Plan shall count for determining his
pension entitlements from any Group Employer.

12.3                                    The rights of a Participant under the Plan
shall not afford him any rights or additional rights to compensation or damages
in consequence of:

12.3.1                          the loss or termination of his office or
employment with any Group Company for any reason whatsoever (including wrongful
dismissal); or

12.3.2                          any loss or potential loss which he may suffer
by reason of being unable to convert Convertible Shares into Ordinary Shares in
consequence of such loss or termination of office or employment.

13.                                        Non-Transferability of Convertible Shares

13.1                                    Pre-Convertible Shares and D Convertible Shares
issued under the Plan are subject to the restrictions on transfer contained in
the Articles of Association.

14.                                        Take-over, Reconstruction and Winding-up

14.1                                    For the purposes of this Rule 14, a person
shall be deemed to have obtained Control of the Company if he or she and others
acting in concert with him or her have together obtained Control of it.

14.2                                    If any person obtains Control of the Company,
the Committee shall within fourteen days of becoming aware thereof notify each
Participant thereof and all Pre-Convertible Shares shall automatically convert
into D Convertible Shares by reason 

 18
 

                                                         of such change in Control, on such date as
shall be determined by the Committee and notified to each Participant and,
thereafter, the holders of all D Convertible Shares shall be required to apply
to convert such shares into Ordinary Shares in accordance with the Rules,
within such period as is specified by the Committee and subject to such terms
and conditions as it shall determine, which period and terms and conditions
shall be notified to each Participant.

14.3                                    In addition to the provisions of Rule 14.2, if
any person becomes bound or entitled to acquire all of the Company’s shares
under Section 204 Companies Act, 1963, the Committee shall within fourteen days
of becoming aware thereof notify each Participant in respect thereof and all
Pre-Convertible Shares shall automatically convert into D Convertible Shares by
reason of such Change in Control, on such date as shall be determined by the
Committee and notified to each Participant and, thereafter, the holders of all
D Convertible Shares shall be required to apply to convert such shares into
Ordinary Shares in accordance with the Rules, within such period as is
specified by the Committee and subject to such terms and conditions as it shall
determine.

14.4                                    If under Section 201 Companies Act, 1963 the
Court sanctions a compromise or arrangement proposed for the purposes of or in
connection with a scheme for the reconstruction of the Company or its
amalgamation with any other company or companies, or if the Company passes a
resolution for voluntary winding up, or if an order is made for the compulsory
winding up of the Company, the Committee on its behalf shall forthwith notify
each Participant of the happening of that event.  All Pre-Convertible Shares shall
automatically convert into D Convertible Shares by reason of such event, on
such date as shall be determined by the Committee and notified to each
Participant and, thereafter, the holders of all D Convertible Shares shall be
required to apply to convert such shares into Ordinary Shares within such
period as is specified by the Committee and subject to such terms and
conditions as it shall determine, which period and terms and conditions shall
be notified to each Participant.

14.5                                    D Convertible Shares which are not converted
into Ordinary Shares within a period specified in Rules 14.2, 14.3 and 14.4
shall cease to be capable of conversion into Ordinary Shares upon the
expiration of such period and shall thereupon become subject to the Redemption
Right.

14.6                                    With respect to Pre-Convertible Shares which
automatically convert into D Convertible Shares pursuant to Rules 14.2, 14.3
and 14.4, and with respect to all D Convertible Shares subject to a notice
served by the Committee pursuant to Rules 14.2, 14.3 and 14.4, any requirement
imposed on the Participant pursuant to Rule 2.2 to hold a minimum number of
Ordinary Shares and any undertaking given by such Participant to the Company
pursuant to Rule 2.7 not to transfer or dispose of the Ordinary Shares issuable
upon conversion of such D Shares during a specified period shall automatically
lapse and cease to have effect on the date on which such D Convertible Shares
convert to Ordinary Shares or any earlier date notified by the Committee to the
Participant.

 19

15.                                        Variation of Capital

15.1                                    In the event of any variation of the share
capital of the Company, adjustments shall be made to the number and class of
Convertible Shares held by each Participant, in accordance with the Articles of
Association, the minimum number of Ordinary Shares (if any) required to be held
by the Participant pursuant to Rule 2.2 and, if the Committee determines it is
appropriate, to the Subscription Price and the Conversion Price applicable to
such shares subject to (except in the case of an adjustment on an issue of
Ordinary Share to existing shareholders of the Company pro rata by way of
capitalisation) the auditors of the Company, acting as experts, confirming that
such adjustment is fair and reasonable.

15.2                                    As soon as reasonably practicable after making
any adjustment, the Committee shall give notice thereof to each Participant
affected thereby.

16.                                        Compliance

16.1                                    The Eligible Employees, Participants, the
Committee and any and all Group Companies shall be bound at all times to abide
by all applicable provisions of the Securities Dealing Code, all relevant Stock
Exchange Regulations and any applicable statutory provisions from time to time
in force and none of such persons shall do or omit to do anything which may
result in a breach of any such provisions by any one or more of them.

16.2                                    Save in exceptional circumstances, an
Invitation to Subscribe may be extended and the issuance or transfer of
Pre-Convertible Shares pursuant thereto may only be effected:

16.2.1                          within the period of 42 days following the
Effective Date or following the announcement by the Company to the Irish Stock
Exchange of its results for any period; and

16.2.2                          within the period of 10 years beginning with
the Effective Date.

16.3                                    Notwithstanding the provisions of Rule 16.2, if
the Committee is at any time restricted by the provisions referred to in Rule
16.1 from making an Invitation to Subscribe it may do so in the first period of
7 days thereafter during which no such restriction is effective.

16.4                                    Notwithstanding any other provision hereof, if,
as a result of the provisions referred to in Rule 16.1, a Participant is
prevented from converting his D Convertible Shares into Ordinary Shares before
the expiry of the period during which such conversion may be effected, the
period during which the conversion may be effected shall be extended for a
period of 7 days commencing on the first day on which such prohibition shall
cease to be effective in relation to the Participant.

17.                                        Alterations and Termination

17.1                                    Subject to Rules 17.2 and 17.3, the Board may
at any time resolve in writing to alter or add to all or any of the provisions
of the Plan.  Any such alteration or
addition shall be deemed to take effect from the date of such resolution or
such earlier or later time as may be specified therein.

 20
 

17.2                                    Subject to Rule 17.4, no alteration or addition
to the material advantage of Eligible Employees or Participants relating to the
Subscription Price or Conversion Price payable with respect to Plan Shares, the
maximum aggregate limits described in Rule 4, the maximum individual limits per
Eligible Employee described in Rule 5, the basis of a Participant’s entitlement
or to the provisions for the adjustment of the shares on a variation of share
capital shall be made under Rule 17.1 without prior approval by the members of
the Company in general meeting.

17.3                                    No alteration or addition to the terms upon
which Convertible Shares have been issued shall be made if they are materially
detrimental in effect to the Participant unless the written consent of the
Participant has first been obtained by the Committee and subject always to the
Articles of Association.

17.4                                    Rules 17.2 and 17.3 shall not apply to any
minor amendments to benefit the administration of this Plan, to take account of
a change in legislation or to obtain or maintain favourable taxation, exchange
control or regulatory treatment for any Group Company or the Participants.

17.5                                    As soon as reasonably practicable after making
any alteration or addition under this Rule 17, the Committee on its behalf
shall give notice thereof to the Participants affected thereby.

18.                                        Miscellaneous

18.1                                    Every discretion vested in the Committee under
this Plan may be exercised or not exercised in its absolute discretion without
(unless otherwise specified) any obligation to consult with, or take into
account the views of, any other person or entity and all references in this
Plan to any decision, determination, opinion, satisfaction or similar
expression in relation to the Committee or its actions shall be construed
accordingly.  All calculations made by
the Committee for the purposes of this Plan shall be final and, save for
manifest error, shall be binding on all persons concerned.

18.2                                    The existence of any power of discretion or
similar right shall not in any way oblige the Committee to exercise such
discretion or right to any extent. 
Neither the Committee nor any Group Company shall have any obligation of
any nature to the Participant or any other person to give reasons for any
determination or decision (of any nature) made by the Committee in pursuance of
this Plan.  All deliberations of the
Committee shall be private and shall not be available to the Participant or any
other person claiming on his behalf.

18.3                                    For the purposes of the Plan, all amounts of
remuneration which are normally denominated in a currency other than Euros
shall for the purposes of this Plan be converted into Euros at a rate equal to
the closing rate supplied by the Central Bank of the European Union for the
Euro as against the relevant currency or currencies as at the close of business
on the fifth Dealing Day prior to Issuance Date.  All other currency conversions into Euros
which are provided for in these Rules shall be dealt with in the same manner
save that, in respect of any such calculation to be made on any particular
date, the rate to be used for such purposes shall be the said closing rate for
the first day prior to that date on which such a rate was so supplied.

 21
 

18.4                                    The Committee may from time to time make and vary
such rules and regulations, not inconsistent with these Rules, and establish
such procedures for the administration and implementation of this Plan as it
thinks fit which shall be binding on all persons interested.  Any determination and/or expression of
opinion made by the Committee as provided for in these Rules shall be final and
binding on all persons interested.  In
the event of any dispute or disagreement as to the interpretation of this Plan
or of any such rules, regulations or procedures or as to any question or right
arising from or related to this Plan, the decision of the Committee shall be
final and binding upon all persons interested.

18.5                                    Any notice or other communication under or in
connection with the Plan may be given by personal delivery or by sending the
same by post, in the case of a company to its registered office, and in the
case of the Participant either to his last known address or to the address of
the place of business at which he performs the whole or substantially the whole
of the duties of his office or employment and, where a notice or other
communication is given by post, it shall be deemed to have been received 72
hours after it was put into the post properly addressed and stamped.  Notices or other communications may also be
sent by email to a Participant’s email address with the Group Company employing
him (save where such Participant is absent on authorised leave from such
employment) and if so sent shall be deemed to have been received upon
transmission.

18.6                                    The Rules and the rights and obligations of any
person hereunder shall be governed by and construed in all respects in
accordance with the laws of Ireland and the Courts of Ireland shall have
exclusive jurisdiction in relation to all matters arising therefrom.

 22

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