Document:

Subsidiary Guaranty

 Exhibit 10.4 
  
 EXECUTION COPY 
  
 SUBSIDIARY GUARANTY 
  
 GUARANTY, dated as of May 20, 2004, made by each of the undersigned (each a “Guarantor” and collectively, the
“Guarantors”). Except as otherwise defined herein, terms used herein and defined in the Credit Agreement (as hereinafter defined) shall be used herein as so defined. 
  
 W I T N E S S E T H: 
  
 WHEREAS, Consolidated Container Holdings LLC (“Holdings”),
Consolidated Container Company LLC (the “Borrower”), various financial institutions from time to time party thereto (the “Banks”), and Deutsche Bank Trust Company Americas, as administrative agent (together with any
successor administrative agent, the “Administrative Agent”, and, together with the Banks, each Issuing Bank and the Collateral Agent, the “Bank Creditors”), have entered into a Credit Agreement, dated as of May 20,
2004, providing for the making of Loans to the Borrower and the issuance of, and participation in, Letters of Credit for the account of the Borrower, all as contemplated therein (as used herein, the term “Credit Agreement” means the
Credit Agreement described above in this paragraph, as the same may from time to time be amended, modified, extended, renewed, replaced, restated, supplemented and/or refinanced from time to time, and including any agreement extending the maturity
of, or refinancing or restructuring (including, but not limited to, the inclusion of additional borrowers or guarantors thereunder or any increase in the amount borrowed thereunder) of all or any portion of the indebtedness under such agreement or
any successor agreement, whether or not with the same agent, trustee, representative, banks or holders); 
  
 WHEREAS, the Borrower and/or one or more of its Subsidiaries may from time to time enter into, or guaranty the obligations of one another under, one or
more (i) interest rate protection agreements (including, without limitation, interest rate swaps, caps, floors, collars and similar agreements), (ii) foreign exchange contracts, currency swap agreements, commodity agreements or other similar
agreements or arrangements designed to protect against the fluctuations in currency values and/or (iii) other types of hedging agreements from time to time (each such agreement or arrangement entered into with an Other Creditor (as hereinafter
defined), an “Interest Rate Protection Agreement or Other Hedging Agreement”) with one or more Banks or any affiliate thereof (each such Bank or affiliate (even if the respective Bank subsequently ceases to be a Bank under the
Credit Agreement for any reason), together with such Bank’s or affiliate’s successors and assigns, collectively, the “Other Creditors” and together with the Bank Creditors, the “Creditors”); 
  
 WHEREAS, each Guarantor is a direct or indirect Subsidiary of the Borrower;

  
 WHEREAS, it is a condition precedent to the making of Loans to
the Borrower and the issuance of, and participation in, Letters of Credit for the account of the Borrower under the Credit Agreement and to the Other Creditors entering into the Interest Rate Protection Agreements or Other Hedging Agreements that
each Guarantor shall have executed and delivered this Guaranty; and 
  

 WHEREAS, each Guarantor will obtain benefits from the incurrence of Loans by the Borrower and the
issuance of, and participation in, Letters of Credit for the account of the Borrower under the Credit Agreement and the entering into by the Borrower and/or one or more of its Subsidiaries of Interest Rate Protection Agreements or Other Hedging
Agreements and, accordingly, desires to execute this Guaranty in order to satisfy the conditions described in the preceding paragraph and to induce the Banks to make Loans to the Borrower and issue, and/or participate in, Letters of Credit for the
account of the Borrower and the Other Creditors to enter into Interest Rate Protection Agreements or Other Hedging Agreements with the Borrower and/or one or more of its Subsidiaries; 
  
 NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to each Guarantor, the receipt and sufficiency
of which are hereby acknowledged, each Guarantor hereby makes the following representations and warranties to the Creditors and hereby covenants and agrees with each Creditor as follows: 
  
 1. Each Guarantor irrevocably and unconditionally, and jointly and severally, guarantees (i) to the Bank Creditors the full
and prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of (x) the principal of, premium, if any, and interest on the Notes issued by, and Loans made to, the Borrower under the Credit Agreement and all
reimbursement obligations and Unpaid Drawings with respect to Letters of Credit issued under the Credit Agreement, and (y) all other obligations and indebtedness (including obligations which, but for any automatic stay under Section 362(a) of the
Bankruptcy Code, would become due) and liabilities owing by the Borrower to the Bank Creditors (including, without limitation, indemnities, Fees and interest thereon (including any interest accruing after the commencement of any bankruptcy,
insolvency, receivership or similar proceeding at the rate provided for in the Credit Agreement, whether or not such interest is allowed claim in any such proceeding)) of the Borrower and other Credit Parties owing to the Bank Creditors now existing
or hereafter incurred under, arising out of or in connection with the Credit Agreement and the other Credit Documents and the due performance and compliance by the Borrower and other Credit Parties with the terms, conditions, covenants and
agreements contained in the Credit Documents (all such principal, interest, obligations, indebtedness and liabilities being herein collectively referred to as the “Credit Document Obligations”) and (ii) to each Other Creditor the
full and prompt payment when due (whether at the stated maturity, by acceleration or otherwise) of all obligations and indebtedness (including obligations which, but for any automatic stay under Section 362(a) of the Bankruptcy Code, would become
due) and liabilities (including, without limitation, indemnities, fees and interest thereon (including any interest accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided for in the
respective Interest Rate Protection Agreements or Other Hedging Agreements, whether or not such interest is allowed claim in any such proceeding)) owing by the Borrower and/or one or more of its Subsidiaries to the Other Creditors under any Interest
Rate Protection Agreement or Other Hedging Agreements, whether such Interest Rate Protection Agreement or Other Hedging Agreement is now in existence or hereafter arising, and the due performance and compliance by the Borrower and such Subsidiaries
with the terms, conditions and agreements contained therein (all such obligations and indebtedness being herein collectively called the “Interest Rate Protection Agreements or Other Hedging Obligations”; and together with the Credit
Document Obligations are herein collectively called the “Guaranteed Obligations”). Each Guarantor understands, agrees and confirms that the Creditors may enforce this Guaranty up to the full amount of 

  

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the Guaranteed Obligations against such Guarantor without proceeding against the Borrower, against any security for the Guaranteed Obligations, against any
other Guarantor, or against any other guarantor under any other guaranty covering the Guaranteed Obligations. This Guaranty shall constitute a guaranty of payment and not of collection. All payments by each Guarantor under this Guaranty shall be
made on the same basis as payments by the Borrower under Sections 4.03 and 4.04 of the Credit Agreement. 
  
 2. Additionally, each Guarantor, jointly and severally, unconditionally and irrevocably, guarantees the payment of any and all Guaranteed Obligations to
the Creditors whether or not due or payable by the Borrower upon the occurrence in respect of the Borrower of any of the events specified in Section 10.05 of the Credit Agreement, and unconditionally and irrevocably, jointly and severally, promises
to pay such Guaranteed Obligations to the Creditors, or order, on demand, in lawful money of the United States. 
  
 3. The liability of each Guarantor hereunder is exclusive and independent of any security for or other guaranty of the Guaranteed Obligations whether
executed by such Guarantor, any other Guarantor, any other guarantor or by any other party, and the liability of such Guarantor hereunder shall not be affected or impaired by: (i) any direction as to application of payment by the Borrower; (ii) any
other continuing or other guaranty, undertaking or maximum liability of a guarantor or of any other party as to the Guaranteed Obligations; (iii) any payment on or in reduction of any such other guaranty or undertaking; (iv) any dissolution,
termination or increase, decrease or change in personnel by the Borrower; (v) any payment made to any Creditor on the Guaranteed Obligations which any Creditor repays the Borrower pursuant to court order in any bankruptcy, reorganization,
arrangement, moratorium or other debtor relief proceeding, and each Guarantor waives any right to the deferral or modification of its obligations hereunder by reason of any such proceeding; (vi) any action or inaction by the Creditors as
contemplated in Section 6 hereof or (vii) any invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations or of all or any part of the Guaranteed Obligations or of any security therefor. 
  
 4. The obligations of each Guarantor hereunder are independent of the
obligations of any other Guarantor, any other guarantor or the Borrower, and a separate action or actions may be brought and prosecuted against each Guarantor whether or not action is brought against any other Guarantor, any other guarantor or the
Borrower, and whether or not any other Guarantor, any other guarantor or the Borrower be joined in any such action or actions. Each Guarantor waives, to the fullest extent permitted by law, the benefit of any statute of limitations affecting its
liability hereunder or the enforcement thereof. Any payment by the Borrower or other circumstance which operates to toll any statute of limitations as to the Borrower shall operate to toll the statute of limitations as to each Guarantor. 

 
 5. Each Guarantor hereby waives notice of acceptance of this Guaranty and
notice of any liability to which it may apply, and waives promptness, diligence, presentment, demand of payment, protest, notice of dishonor or nonpayment of any such liabilities, suit or taking of other action taken by the Administrative Agent or
any other Creditor against, and any other notice to, any party liable thereon (including such Guarantor or any other Guarantor or guarantor or the Borrower). 
  

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 6. Except as provided in any Credit Document, Interest Rate Protection Agreement, Other Hedging Agreement
or any of the instruments or agreements referred to therein, any Creditor may at any time and from time to time without the consent of, or notice to, any Guarantor, without incurring liability to any Guarantor as a result thereof, without impairing
or releasing the obligations of any Guarantor hereunder, upon or without any terms or conditions and in whole or in part (and each Guarantor hereby irrevocably waives any defenses it may now or hereafter have in any way relating to any and all of
the following): 
  
 (i) change the manner, place
or terms of payment of, and/or change or extend the time of payment of, renew or alter, any of the Guaranteed Obligations, any security therefor, or any liability incurred directly or indirectly in respect thereof, and the guaranty herein made shall
apply to the Guaranteed Obligations as so changed, extended, renewed or altered; 
  
 (ii) take and hold security for the payment of the Guaranteed Obligations and/or sell, exchange, release, surrender, realize upon or
otherwise deal with in any manner and in any order any property by whomsoever at any time pledged or mortgaged to secure, or howsoever securing, the Guaranteed Obligations or any liabilities (including any of those hereunder) incurred directly or
indirectly in respect thereof or hereof, and/or any offset thereagainst; 
  
 (iii) exercise or refrain from exercising any rights against the Borrower, any Guarantor or others or otherwise act or refrain from acting; 
  
 (iv) settle or compromise any of the Guaranteed Obligations, any security therefor or any liability
(including any of those hereunder) incurred directly or indirectly in respect thereof or hereof, and may subordinate the payment of all or any part thereof to the payment of any liability (whether due or not) of the Borrower to creditors of the
Borrower; 
  
 (v) subject to the terms of the
Credit Agreement, apply any sums by whomsoever paid or howsoever realized to any liability or liabilities of the Borrower to the Creditors regardless of what liabilities of the Borrower remain unpaid; 
  
 (vi) consent to or waive any breach of, or any act, omission
or default under, any of the Interest Rate Protection Agreements, Other Hedging Agreements or any of the Credit Documents or any of the instruments or agreements referred to therein, or otherwise amend, modify or supplement any of the Interest Rate
Protection Agreements, Other Hedging Agreements or any of the Credit Documents or any of such other instruments or agreements; 
  
 (vii) act or fail to act in any manner referred to in this Guaranty which may deprive any Guarantor of its right to subrogation against
the Borrower to recover full indemnity for any payments made pursuant to this Guaranty; 
  
 (viii) release or substitute any one or more endorsers, Guarantors, other guarantors, the Borrower, or other obligors; and/or 

 

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 (ix) take any other action which would, under otherwise applicable principles of common
law, give rise to a legal or equitable discharge of such Guarantor from its liabilities under this Guaranty. 
  
 7. No invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations or of any security therefor shall affect, impair or be
a defense to this Guaranty, and this Guaranty shall be primary, absolute and unconditional notwithstanding the occurrence of any event or the existence of any other circumstances which might constitute a legal or equitable discharge of a surety or
guarantor except payment in full of the Guaranteed Obligations. 
  
 8. This Guaranty is a continuing one and all liabilities to which it applies or may apply under the terms hereof shall be conclusively presumed to have been created in reliance hereon. No failure or delay on the part of any Creditor in
exercising any right, power or privilege hereunder and no course of dealing between any Guarantor and any Creditor shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein expressly specified are cumulative and not exclusive of any rights or remedies which any Creditor would otherwise have. No
notice to or demand on any Guarantor in any case shall entitle such Guarantor to any other further notice or demand in similar or other circumstances or constitute a waiver of the rights of any Creditor to any other or further action in any
circumstances without notice or demand. 
  
 9. Any indebtedness of
the Borrower now or hereafter held by any Guarantor is hereby subordinated to the indebtedness of the Borrower to the Creditors; and such indebtedness of the Borrower to any Guarantor, if the Administrative Agent, after the occurrence and during the
continuance of an Event of Default, so requests, shall be collected, enforced and received by such Guarantor as trustee for the Creditors and be paid over to the Creditors on account of the indebtedness of the Borrower to the Creditors, but without
affecting or impairing in any manner the liability of such Guarantor under the other provisions of this Guaranty. Prior to the transfer by such Guarantor of any note or negotiable instrument evidencing any indebtedness of the Borrower to such
Guarantor, such Guarantor shall mark such note or negotiable instrument with a legend that the same is subject to this subordination. Without limiting the generality of the foregoing, each Guarantor hereby agrees with the Creditors that it will not
exercise any right of subrogation which it may at any time otherwise have as a result of this Guaranty (whether contractual, under Section 509 of the Bankruptcy Code, or otherwise) until all Guaranteed Obligations have been paid in full in cash.

  
 10. (a) Each Guarantor waives any right (except as shall be
required by applicable statute and cannot be waived) to require the Creditors to (i) proceed against the Borrower, any other Guarantor, any other guarantor or any other party, (ii) proceed against or exhaust any security held from the Borrower, any
other Guarantor, any other guarantor or any other party or (iii) pursue any other remedy in the Creditors’ power whatsoever. Each Guarantor waives any defense based on or arising out of any defense of the Borrower, any other Guarantor, any
other guarantor or any other party other than payment in full in cash of the Guaranteed Obligations, including without limitation any defense based on or arising out of the disability of the Borrower, any other Guarantor, any other guarantor or any
other party, or the unenforceability of the 

  

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Guaranteed Obligations or any part thereof from any cause, or the cessation from any cause of the liability of the Borrower other than payment in full in
cash of the Guaranteed Obligations. The Creditors may, at their election, foreclose on any security held by the Administrative Agent, the Collateral Agent or the other Creditors by one or more judicial or nonjudicial sales, whether or not every
aspect of any such sale is commercially reasonable (to the extent such sale is permitted by applicable law), or exercise any other right or remedy the Creditors may have against the Borrower or any other party, or any security, without affecting or
impairing in any way the liability of any Guarantor hereunder except to the extent the Guaranteed Obligations have been paid in full in cash. Each Guarantor waives any defense arising out of any such election by the Creditors, even though such
election operates to impair or extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against the Borrower or any other party or any security. 
  
 (b) Each Guarantor waives all presentments, demands for performance, protests and notices, including, without limitation,
notices of nonperformance, notices of protest, notices of dishonor, notices of acceptance of this Guaranty, and notices of the existence, creation or incurring of new or additional indebtedness. Each Guarantor assumes all responsibility for being
and keeping itself informed of the Borrower’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks which such Guarantor
assumes and incurs hereunder, and agrees that the Creditors shall have no duty to advise any Guarantor of information known to them regarding such circumstances or risks. 
  
 (c) Each Guarantor hereby acknowledges and affirms that it understands that to the extent the Guaranteed Obligations are
secured by Real Property located in the State of California, such Guarantor shall be liable for the full amount of the liability hereunder notwithstanding foreclosure on such Real Property by trustee sale or any other reason impairing such
Guarantor’s or any Secured Creditors’ right to proceed against any Borrower, any other Guaranteed Party or any other guarantor of the Guaranteed Obligations. 
  
 (d) Each Guarantor hereby waives (to the fullest extent permitted by applicable law) all rights and benefits under Section
580a, 580b, 580d and 726 of the California Code of Civil Procedure. Each Guarantor hereby further waives (to the fullest extent permitted by applicable law), without limiting the generality of the foregoing or any other provision hereof, all rights
and benefits which might otherwise be available to such Guarantor under Sections 2809, 2810, 2815, 2819, 2821, 2839, 2845, 2848, 2849, 2850, 2899 and 3433 of the California Civil Code. 
  
 (e) Until the Guaranteed Obligations have been paid in full in cash, each Guarantor waives its rights of subrogation and
reimbursement and any other rights and defenses available to such Guarantor by reason of Sections 2787 to 2855, inclusive, of the California Civil Code, including, without limitation, (1) any defenses such Guarantor may have to this Guaranty by
reason of an election of remedies by the Secured Creditors and (2) any rights or defenses such Guarantor may have by reason of protection afforded to any Borrower or any other Guaranteed Party pursuant to the antideficiency or other laws of
California limiting or discharging such Borrower’s or such other Guaranteed Party’s indebtedness, including, without limitation, Section 580a, 580b, 580d or 726 of the California Code of Civil Procedure. In furtherance of such 

  

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provisions, each Guarantor hereby waives all rights and defenses arising out of an election of remedies by the Secured Creditors, even though that election
of remedies, such as a nonjudicial foreclosure, destroys such Guarantor’s rights of subrogation and reimbursement against any Borrower or any other Guaranteed Party by the operation of Section 580d of the California Code of Civil Procedure or
otherwise. 
  
 (f) Until such time as the Guaranteed Obligations
have been paid in full in cash, each Guarantor hereby waives all contractual, statutory or common law rights of reimbursement, contribution or indemnity from the Borrower or any other Guarantor which it may at any time otherwise have as a result of
this Guaranty. 
  
 Guarantor warrants and agrees that each of the
waivers set forth above is made with full knowledge of its significance and consequences and that if any of such waivers are determined to be contrary to any applicable law or public policy, such waivers shall be effective only to the maximum extent
permitted by law. 
  
 11. In order to induce the Banks to make
Loans to the Borrower, and to issue, and participate in, Letters of Credit for the account of the Borrower, pursuant to the Credit Agreement and to induce the Other Creditors to execute, deliver and perform the Interest Rate Protection Agreements
and Other Hedging Agreements, each Guarantor hereby represents, warrants and covenants that: 
  
 (i) Such Guarantor (x) is a duly organized and validly existing corporation, limited partnership or limited liability company in good
standing under the laws of the jurisdiction of its incorporation, (y) has the corporate or limited liability company power and authority to own its property and assets and to transact the business in which it is engaged and presently proposes to
engage and (z) is duly qualified and is authorized to do business and is in good standing in each jurisdiction where the ownership, leasing or operation of property or the conduct of its business requires such qualification except for failures to be
so qualified which, in the aggregate, could not be expected to have a Material Adverse Effect. 
  
 (ii) Such Guarantor has the corporate, partnership or limited liability company power to execute, deliver and perform the terms and
provisions of this Guaranty and each other Credit Document (such term, for purposes of this Guaranty, to mean each Credit Document (as defined in the Credit Agreement) and each Interest Rate Protection Agreement and Other Hedging Agreement with an
Other Creditor) to which it is a party and has taken all necessary corporate, partnership or limited liability company action to authorize the execution, delivery and performance by it of this Guaranty. Such Guarantor has duly executed and delivered
this Guaranty and each other Credit Document to which it is a party, and each such Credit Document constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the extent that the enforceability thereof may
be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or similar laws relating to or affecting creditors’ rights generally, general equitable principles (regardless of whether considered in
proceedings in equity or at law) and an implied covenant of good faith and fair dealing. 
  

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 (iii) Neither the execution, delivery or performance by such Guarantor of this Guaranty
or any other Credit Document to which it is a party, nor compliance by it with the terms and provisions hereof and thereof, (x) will contravene any provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any
court or governmental instrumentality, (y) will conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create
or impose) any Lien (except pursuant to the Security Documents) upon any of the property or assets of such Guarantor or any of its Subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or
any other material agreement, contract or instrument to which such Guarantor or any of its Subsidiaries is a party or by which it or any of its property or assets is bound or to which it may be subject or (z) will violate any provision of the
certificate of incorporation or by-laws or other organizational documents, as applicable, of such Guarantor or any of its Subsidiaries. 
  
 (iv) No order, consent, approval, license, authorization or validation of, or filing, recording or registration with (except as have been
obtained or made prior to the Initial Borrowing Date and are in full force and effect), or exemption by, any governmental or public body or authority, or any subdivision thereof, is required to authorize, or is required in connection with, (x) the
execution, delivery and performance of this Guaranty or any other Credit Document to which such Guarantor is a party, or (y) the legality, validity, binding effect or enforceability of this Guaranty or any other Credit Document to which such
Guarantor is a party, except those (A) which have been obtained or made prior to the Initial Borrowing Date, (B) the absence of which, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect or (C)
for filings and recordings required to perfect the security interests created under the Security Documents. 
  
 (v) There are no actions, suits or proceedings pending or, to the best knowledge of any Guarantor, threatened (y) with respect to this
Guaranty or (z) that could reasonably be expected to have a material and adverse effect on the business, assets, liabilities, operations, properties or condition (financial or otherwise) of Holdings and its Subsidiaries taken as a whole. 

 
 12. Each Guarantor covenants and agrees that on and after the date hereof
and until the Total Commitment and all Interest Rate Protection Agreements and Other Hedging Agreements with an Other Creditor have terminated, no Letter of Credit or Note is outstanding and all Guaranteed Obligations have been paid in full, such
Guarantor will comply with the provisions of Sections 8 and 9 of the Credit Agreement, to the extent such Sections apply to such Guarantors. 
  
 13. Each Guarantor hereby jointly and severally agrees to pay all reasonable out-of-pocket costs and expenses of each Creditor in connection with the
enforcement of this Guaranty and the protection of such Creditor’s rights hereunder, and in connection with any amendment, waiver or consent relating hereto (including, without limitation, the reasonable and actual fees and disbursements of
counsel employed by the Administrative Agent or any of the Creditors). 
  

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 14. This Guaranty shall be binding upon each Guarantor and its successors and assigns and shall inure to
the benefit of the Creditors and their successors and assigns. 
  
 15. Neither this Guaranty nor any provision hereof may be changed, waived, discharged or terminated in any manner whatsoever unless in writing duly signed by the Administrative Agent (with, except as provided in Section 14.12 of the Credit
Agreement, the consent of the Required Banks) and each Guarantor directly affected thereby (it being understood that the release or addition of any Guarantor hereunder shall not constitute a change or waiver affecting any Guarantor other than the
Guarantor so released or added); provided, however, that any change, waiver, modification or variance affecting the rights and benefits of a single Class (as defined below) of Creditors (and not all Creditors in a like or similar
manner) shall require the written consent of the Requisite Creditors (as defined below) of such Class of Creditors. For the purpose of this Guaranty, the term “Class” shall mean each class of Creditors, i.e., whether (x) the Bank
Creditors as holders of the Credit Document Obligations or (y) the Other Creditors as holders of the Other Obligations. For the purpose of this Guaranty, the term “Requisite Creditors” of any Class shall mean each of (x) with respect to
the Credit Document Obligations, the Required Banks (or all of the Banks if so required under the Credit Agreement) and (y) with respect to the Other Obligations, the holders of at least a majority of all Other Obligations outstanding from time to
time under the Interest Rate Protection Agreements and/or Other Hedging Agreements. 
  
 16. Each Guarantor acknowledges that an executed (or conformed) copy of each of the Credit Documents and the Interest Rate Protection Agreements and Other Hedging Agreements with an Other Creditor has been made
available to its principal executive officers and such officers are familiar with the contents thereof. 
  
 17. (a) In addition to any rights now or hereafter granted under applicable law (including, without limitation, Section 151 of the New York Debtor and
Creditor Law) and not by way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default (such term to mean and include any “Event of Default” under, and as defined in, the Credit Agreement or
any payment default (after giving effect to any grace period applicable thereto) under any Interest Rate Protection Agreement or Other Hedging Agreement and shall in any event, include without limitation any payment default on any of the Guaranteed
Obligations after giving effect to any grace period applicable thereto), each Creditor is hereby authorized at any time or from time to time, without presentment, demand, protest or other notice of any kind to any Guarantor or to any other Person,
any such notice being hereby expressly waived, to set off and to appropriate and apply any and all deposits (general or special) and any other indebtedness at any time held or owing by such Creditor (including, without limitation, by branches and
agencies of such Creditor wherever located) to or for the credit or the account of such Guarantor, against and on account of the obligations and liabilities of such Guarantor to such Creditor under this Guaranty, irrespective of whether or not such
Creditor shall have made any demand hereunder and although said obligations, liabilities, deposits or claims, or any of them, shall be contingent or unmatured. Each Creditor agrees to notify any such Guarantor promptly of any such set-off,
provided that the failure to give such notice shall not affect the validity of such set-off and application. 
  

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 (b) Each Guarantor understands that if all or any part of the Guaranteed Obligations is secured by real
property, such Guarantor shall be liable for the full amount of its liability hereunder notwithstanding foreclosure on such real property by trustee sale or any other reason impairing such Guarantor’s or any Secured Creditors’ right to
proceed against any Guarantor or any Subsidiary of such Guarantor. 
  
 18. All notices, requests, demands or other communications pursuant hereto shall be deemed to have been duly given or made when delivered to the Person to which such notice, request, demand or other communication is required or permitted to
be given or made under this Guaranty, addressed to such party at (i) in the case of any Bank Creditor, as provided in the Credit Agreement, (ii) in the case of any Guarantor: 
  
 3101 Towercreek Parkway 
 Suite 300 
 Atlanta, GA 30339 
 Attention: Chief Financial Officer 
 Telephone No.: 678-742-4600 
 Facsimile No.: 678-742-4758 
  
 with a copy to: 
 3101 Towercreek Parkway

 Suite 300 
 Atlanta, GA 30339

 Attn: General Counsel 
 Telephone No.: 678-742-4600 
 Facsimile No.: 678-742-4758 
  
 and (iii) in the case of any Other Creditor, at such address as such other Creditor shall have specified in writing to the
Guarantor; or in any case at such other address as any of the Persons listed above may hereafter notify the others in writing. 
  
 19. If claim is ever made upon any Creditor for repayment or recovery of any amount or amounts received in payment or on account of any of the Guaranteed
Obligations and any of the aforesaid payees repays all or part of said amount by reason of (a) any judgment, decree or order of any court or administrative body having jurisdiction over such payee or any of its property or (b) any settlement or
compromise of any such claim effected by such payee with any such claimant (including the Borrower), then and in such event each Guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding upon it,
notwithstanding any revocation hereof or the cancellation of any Note or any Interest Rate Protection Agreement, Other Hedging Agreement or other instrument evidencing any liability of the Borrower, and such Guarantor shall be and remain liable to
the aforesaid payees hereunder for the amount so repaid or recovered to the same extent as if such amount had never originally been received by any such payee. 
  

20. Any acknowledgment or new promise, whether by payment of principal or interest or otherwise and whether by the Borrower or other Persons liable in
respect of the Guaranteed Obligations (including any Guarantor), with respect to any of the Guaranteed 

  

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Obligations shall, if the statute of limitations in favor of any Guarantor against any Creditor shall have commenced to run, toll the running of such statute
of limitations, and if the period of such statute of limitations shall have expired, prevent the operation of such statue of limitations. 
  
 21. (a) THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE
STATE OF NEW YORK. Any legal action or proceeding with respect to this Guaranty may be brought in the Courts of the State of New York or of the United States for the Southern District of New York, and, by execution and delivery of this Guaranty,
each Guarantor hereby irrevocably accepts for itself and in respect of its property, generally and unconditionally, the exclusive jurisdiction of the aforesaid courts. Each Guarantor further irrevocably consents to the service of process out of any
of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to each Guarantor at its address set forth opposite its signatures below, such service to become
effective 30 days after such mailing. Nothing herein shall affect the right of any of the Creditors under this guaranty to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against any Guarantor
in any other jurisdiction. 
  
 (b) Each Guarantor hereby
irrevocably waives any objection which it may now or hereafter have to the laying of venue of any of the aforesaid actions or proceedings arising out of or in connection with this Guaranty or any other credit document brought in the courts referred
to in clause (a) above and hereby further irrevocably waives and agrees not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum. 
  
 22. It is the desire and intent of each Guarantor and the Creditors that this
Guaranty shall be enforced against each Guarantor to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought If, however, and to the extent, that the obligations of any Guarantor
under this Guaranty shall be adjudicated to be invalid or unenforceable for any reason (including, without limitation, because of any applicable state or federal law relating to fraudulent conveyances or transfers), then the amount of the Guaranteed
Obligations of such Guarantor (but not the Guaranteed Obligations of any other Guarantor unless such other Guarantor or Guarantors are individually subject to the circumstances covered by this Section 22) shall be deemed to be reduced and the
affected Guarantor shall pay the maximum amount of the Guaranteed Obligations which would be permissible under applicable law without causing such Guarantor’s obligations hereunder to be so invalidated. 
  
 23. This Guaranty may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A set of counterparts executed by all the parties hereto
shall be lodged with the Borrower and the Administrative Agent. 
  
 24. In the event that all of the capital stock or other equity interests of one or more Guarantors is sold or otherwise disposed of or liquidated in compliance with the 

  

 -11- 

 
requirements of Section 9.02 of the Credit Agreement (or such sale, other disposition or liquidation has been approved in writing by the Required Lenders (or
all the Lenders if required by Section 14.12 of the Credit Agreement)) and the proceeds of such sale, disposition or liquidation are applied in accordance with the provisions of the Credit Agreement, to the extent applicable, such Guarantor shall,
upon consummation of such sale or other disposition (except to the extent that such sale or disposition is to Holdings or another Subsidiary thereof), be released from this Guaranty automatically and without further action and this Guaranty shall,
as to each such Guarantor or Guarantors, terminate, and have no further force or effect (it being understood and agreed that the sale of one or more Persons that own, directly or indirectly, all of the capital stock or other equity interests of any
Guarantor shall be deemed to be a sale of such Guarantor for the purposes of this Section 24). 
  
 25. EACH GUARANTOR HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS GUARANTY, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY. 
  
 26. All payments made by
any Guarantor hereunder will be made without setoff, counterclaim or other defense. 
  
 27. The Creditors agree that this Guaranty may be enforced only by the action of the Administrative Agent, in each case acting upon the instructions of the Required Banks (or, after the date on which all Credit
Document Obligations have been paid in full, the holders of at least a majority of the outstanding Other Obligations) and that no other Creditor shall have any right individually to seek to enforce or to enforce this Guaranty or to realize upon the
security to be granted by the Security Documents, it being understood and agreed that such rights and remedies may be exercised by the Administrative Agent or the Collateral Agent or the holders of at least a majority of the outstanding Other
Obligations, as the case may be, for the benefit of the Creditors upon the terms of this Guaranty and the Security Documents. The Creditors further agree that this Guaranty may not be enforced against any director, officer, employee, or stockholder
of any Guarantor (except to the extent such stockholder is also a Guarantor hereunder). 
  
 28. It is understood and agreed that any Subsidiary of the Borrower that is required to execute a counterpart of this Guaranty after the date hereof pursuant to the Credit Agreement shall automatically become a
Guarantor hereunder by executing a counterpart hereof and delivering the same to the Administrative Agent. 
  
 29. At any time a payment in respect of the Guaranteed Obligations is made under this Guaranty, the right of contribution of each Guarantor against each
other Guarantor shall be determined as provided in the immediately following sentence, with the right of contribution of each Guarantor to be revised and restated as of each date on which a payment (a “Relevant Payment”) is made on
the Guaranteed Obligations under this Guaranty. At any time that a Relevant Payment is made by a Guarantor that results in the aggregate payments made by such Guarantor in respect of the Guaranteed Obligations to and including the date of the
Relevant Payment exceeding such Guarantor’s Contribution Percentage (as defined below) of the aggregate payments made by all Guarantors in respect of the Guaranteed Obligations to and 

  

 -12- 

 
including the date of the Relevant Payment (such excess, the “Aggregate Excess Amount”), each such Guarantor shall have a right of
contribution against each other Guarantor who has made payments in respect of the Guaranteed Obligations to and including the date of the Relevant Payment in an aggregate amount less than such other Guarantor’s Contribution Percentage of the
aggregate payments made to and including the date of the Relevant Payment by all Guarantors in respect of the Guaranteed Obligations (the aggregate amount of such deficit, the “Aggregate Deficit Amount”) in an amount equal to (x) a
fraction the numerator of which is the Aggregate Excess Amount of such Guarantor and the denominator of which is the Aggregate Excess Amount of all Guarantors multiplied by (y) the Aggregate Deficit Amount of such other Guarantor. A Guarantor’s
right of contribution pursuant to the preceding sentences shall arise at the time of each computation, subject to adjustment to the time of each computation; provided that no Guarantor may take any action to enforce such right until the
Guaranteed Obligations have been irrevocably paid in full in cash and the Total Commitment and all Letters of Credit have been terminated, it being expressly recognized and agreed by all parties hereto that any Guarantor’s right of contribution
arising pursuant to this Section 29 against any other Guarantor shall be expressly junior and subordinate to such other Guarantor’s obligations and liabilities in respect of the Guaranteed Obligations and any other obligations owing under this
Guaranty. As used in this Section 29: (i) each Guarantor’s “Contribution Percentage” shall mean the percentage obtained by dividing (x) the Adjusted Net Worth (as defined below) of such Guarantor by (y) the aggregate Adjusted
Net Worth of all Guarantors; (ii) the “Adjusted Net Worth” of each Guarantor shall mean the greater of (x) the Net Worth (as defined below) of such Guarantor and (y) zero; and (iii) the “Net Worth” of each Guarantor
shall mean the amount by which the fair saleable value of such Guarantor’s assets on the date of any Relevant Payment exceeds its existing debts and other liabilities (including contingent liabilities, but without giving effect to any
Guaranteed Obligations arising under this Guaranty or any guaranteed obligations arising under any guaranty of the Senior Second Lien Notes) on such date. Notwithstanding anything to the contrary contained above, any Guarantor that is released from
this Guaranty pursuant to Section 24 hereof shall thereafter have no contribution obligations, or rights, pursuant to this Section 29, and at the time of any such release, if the released Guarantor had an Aggregate Excess Amount or an Aggregate
Deficit Amount, same shall be deemed reduced to $0, and the contribution rights and obligations of the remaining Guarantors shall be recalculated on the respective date of release (as otherwise provided above) based on the payments made hereunder by
the remaining Guarantors. All parties hereto recognize and agree that, except for any right of contribution arising pursuant to this Section 29 each Guarantor who makes any payment in respect of the Guaranteed Obligations shall have no right of
contribution or subrogation against any other Guarantor in respect of such payment until all of the Guaranteed Obligations have been irrevocably paid in full in cash. Each of the Guarantors recognizes and acknowledges that the rights to contribution
arising hereunder shall constitute an asset in favor of the party entitled to such contribution. In this connection, each Guarantor has the right to waive its contribution right against any Guarantor to the extent that after giving effect to such
waiver such Guarantor would remain solvent, in the determination of the Required Lenders. 
  
 30. Each Guarantor and each Creditor (by its acceptance of the benefits of this Guaranty) hereby confirms that it is its intention that this Guaranty not constitute a fraudulent transfer or conveyance for purposes of
the Bankruptcy Code, the Uniform Fraudulent Conveyance Act of any similar Federal or state law. To effectuate the foregoing intention, each Guarantor and each Creditor (by its acceptance of the benefits of this Guaranty) hereby irrevocably agrees
that the Guaranteed Obligations guaranteed by such Guarantor shall be limited to such amount as will, after giving effect to such maximum amount and all other (contingent or otherwise) liabilities of such Guarantor that are relevant under such laws
(it being understood that it is the intention of the parties to this Guaranty and the parties to any guaranty of the Senior Second Lien Notes that, to the maximum extent permitted under applicable laws, the liabilities in respect of the guarantees
of the Senior Second Lien Notes shall not be included for the foregoing purposes and that, if any reduction is required to the amount guaranteed by any Guarantor hereunder and with respect to the Senior Second Lien Notes that its guarantee of
amounts owing in respect of the Senior Second Lien Notes shall first be reduced) and after giving effect to any rights to contribution pursuant to any agreement providing for an equitable contribution among such Guarantor and the other Guarantors,
result in the Guaranteed Obligations of such Guarantor in respect of such maximum amount not constituting a fraudulent transfer or conveyance. 
  
 * * * 
  

 -13- 

 IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed and delivered as of the date
first above written. 
  

			
	 REID PLASTICS GROUP LLC,
      as a Guarantor

		
	By:	 	 /s/ Louis Lettes

	 	 	

	 	 	 Name: Louis Lettes

	 	 	 Title: Senior Vice President, General Counsel
 and Secretary

  

			
	 CONSOLIDATED CONTAINER COMPANY
      LP,
      as a Guarantor

		
	By:	 	 /s/ Louis Lettes

	 	 	

	 	 	 Name: Louis Lettes

	 	 	 Title: Senior Vice President, General Counsel
 and Secretary

  

			
	 PLASTIC CONTAINERS LLC,
      as a Guarantor

		
	By:	 	 /s/ Louis Lettes

	 	 	

	 	 	 Name: Louis Lettes

	 	 	 Title: Senior Vice President, General Counsel
 and Secretary

  
 SIGNATURE PAGE TO
SUBSIDIARY GUARANTY 
  

			
	 CONSOLIDATED CONTAINER CAPITAL,
      INC.,
      as a Guarantor

		
	By:	 	 /s/ Louis Lettes

	 	 	

	 	 	 Name: Louis Lettes

	 	 	 Title: Senior Vice President, General Counsel
 and Secretary

  

			
	 CONTINENTAL CARIBBEAN CONTAINERS,
      INC.,
      as a Guarantor

		
	By:	 	 /s/ Louis Lettes

	 	 	

	 	 	 Name: Louis Lettes

	 	 	 Title: Senior Vice President, General Counsel
 and Secretary

  
 SIGNATURE PAGE TO
SUBSIDIARY GUARANTY 
  

			
	 Accepted and Agreed to:

	
	 DEUTSCHE BANK TRUST COMPANY AMERICAS,
      as Administrative Agent for the Banks

		
	 By:
	 	 /s/ Susan LeFevre

	 	 	

	 	 	 Name: Susan LeFevre

	 	 	 Title: Director

  
 SIGNATURE PAGE TO
SUBSIDIARY GUARANTYProfessional and Leadership Incentive Plan-Fiscal Year 2004

 Exhibit 10.3 
  
 CISCO SYSTEMS, INC. 
  
 PROFESSIONAL AND LEADERSHIP INCENTIVE PLAN 
 FY 2004 
  

	I.	INTRODUCTION 

  

	 	A.	The Objective of the Professional and Leadership (P&L) Incentive Plan (the “Plan”) is to provide a fully discretionary payment to eligible employees of Cisco
Systems, Inc. and its subsidiaries (as defined in Paragraph III.D. below) as provided in this document (Cisco and its subsidiaries are referred to herein as the “Company”). Employees may receive a payment for their contributions to the
success and profitability of the Company. 

  

	 	B.	Participants: This Plan, as determined by the Company’s Board of Directors on a fully discretionary basis, applies solely to regular employees of Cisco Systems, Inc. and
its subsidiaries (as defined in Paragraph III.D. below) in salary grades 1 through 14, 083, 084, 090, 150, 200, and 888. For purposes of this Plan and unless otherwise prohibited by applicable law, the term “regular employees” means an
individual who is in the employ of the Company (or a subsidiary) for an unspecified period of time, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance.

  

	 	C.	Effective Date: This Plan is only effective for the Company’s fiscal year 2004 beginning July 27, 2003, through July 31, 2004 (the “Fiscal Year”). This Plan is
limited in time and will expire automatically on July 31, 2004 (“Expiration Date”). This Plan also supersedes all prior bonus or commission incentive plans, whether with Cisco Systems, Inc. or a subsidiary or affiliate thereof or any
written or verbal representations regarding the subject matter of this Plan. 

  

	 	D.	Changes in Plan: Cisco Systems, Inc. reserves the right to modify or cancel the Plan in total or in part, at any time. Any such change must be in writing and signed by the
President/CEO of Cisco Systems, Inc. (“President/CEO”) and must specifically state that it is amending this Plan. The President/CEO or Plan designers reserve the right to interpret the Plan document as needed. Nothing in this Plan is
intended to create an entitlement to any employee for any incentive payment hereunder. 

  

	 	E.	Entire Agreement: This Plan, and any changes signed by the President/CEO specifically stating it is an amendment to this Plan and any Compensation Committee resolutions
amending the Plan, is the entire understanding between Cisco Systems, Inc. and its subsidiaries (as defined in paragraph III D below) and the employee regarding the subject matter of this Plan and supersedes all prior bonus or commission incentive
plans, or employment contracts whether with any holding company, subsidiary, or affiliate thereof (including Cisco Systems, Inc.) or any written or verbal representations regarding the subject matter of this Plan unless superseded by local law. All
payments under this Plan are fully discretionary payments. Participation in this Plan during the Fiscal Year will not convey any entitlement to participate in this or future plans or to the same or similar bonus benefits. Payments under this Plan
are an extraordinary item of compensation that is outside the normal or expected compensation for the purpose of calculating any extra benefits, termination, severance, redundancy, end-of-service premiums, bonuses, long-service awards, overtime
premiums, pension or retirement benefits or other similar payment. 

  

	II.	ELIGIBILITY AND INCENTIVE PLAN ELEMENTS 

  

	 	A I.	Eligibility: To be eligible to receive an incentive under this Plan, an individual who may be deemed to be a participant must be employed by the Company as a regular
employee in an incentive-eligible position on or before the first working day of the last fiscal quarter of the Fiscal Year and must be employed on the last working day of the Fiscal Year. Employees deemed to be participants in the Plan with less
than one year of service will be eligible to receive an incentive subject to proration from the effective date of participation in the Plan up to and including the Expiration Date. Unless otherwise required by law, in no event will an employee be
eligible to receive an incentive under this Plan unless that individual is employed on the last working day of the Fiscal Year. 

			
	Professional and Leadership Incentive Plan FY2004	  	Page 2 of 5

  

 Any exceptions to the above must be in writing and approved in writing by the President/CEO. 

 
 The amount of any incentive payment payable to any employee pursuant to
this Plan shall be reduced by the actual amount of any outstanding debt to the Company incurred on a sales commission plan. 
  
 AND 
  
 The employees deemed to be participants may be eligible for the incentive payout if they meet the following requirements at both the time of calculation
of such payments and at payout: 
  

	 	•	are not concurrently on a sales incentive or commission plan 

  

	 	•	have not entered into an employment termination agreement (including, but not limited to, any agreement, other than an employment agreement or offer letter, in respect of an
employee’s termination of employment) 

  

	 	•	are not on a Performance Improvement Plan, letter of concern, work plan, etc. 

  

	 	•	are not rated as N in their most recent performance evaluation 

  
 Any payout for employees ranked in the bottom 5% of their organization and/or for employees who have been offered (but not accepted) an Employment
Termination Agreement is at manager’s discretion and subject to Human Resource agreement. 
  

	 	B.	Elements of Calculation: 

  

																													
	Base Salary	 	X	 	Incentive Target Percentage	 	X 	 	Individual Performance Factor	 	 X	 	Teamwork and Collaboration Factor	 	X 	 	Company Performance Factor	 	 X	 	 Customer
 Satisfaction
 Factor
	 	X	 	Proration Factor	 	=	 	 Total Annual
 Incentive

  

	 	C.	The Annual Base Salary in effect at the end of Q2 for midyear and the end of Q4 for year-end represents the basis for the bonus payout including cases where the
employee’s salary currency has changed during the Fiscal Year. If the employee’s salary currency changed during the Fiscal Year, the employee’s current base pay in effect the last day before the currency change will be the basis for
the incentive calculation for the period of time that currency was in effect during the Fiscal Year. This prorated incentive calculation will be added to the post-currency change incentive calculation of the employee’s annual base salary in the
new currency. Bonus payments will be made in the employee’s salary currency in effect at the end of Q2 for midyear and at the end of Q4 for year-end. 

  

	 	D.	Incentive Target Percentage is a percentage of base salary determined by the grade level and may be changed at the discretion of the President/CEO at any time during the
Fiscal Year. If the target is modified impacted employees will be notified. 

  

			
	 Grades

	  	 Incentive Target %

	 1 – 4
	  	  7%
	 5 – 7
	  	10%
	 8 and 9
	  	14%
	 10 and 11
	  	17%
	 12
	  	30%
	 013, 014, 083, 084, and 090
	  	40%
	 200 and 888
	  	50%
	 150
	  	60%

			
	Professional and Leadership Incentive Plan FY2004	  	Page 3 of 5

  

	 	E.	Individual Performance Factor (IPF) is based upon the manager’s evaluation of a participant’s performance and contribution for the Fiscal Year. As a factor to the
incentive target percentage for the grade, this factor can range from 0.0 to 1.5 (i.e., 0.0 X 14% = 0%, 0.5 X 14% = 7%, 1.0 X 14% = 14%, or, 1.5 X 14% = 21%).  

  

	 	F.	Teamwork and Collaboration Factor (TCF) is based upon the manager’s evaluation of a participant’s ability to work as a team player and collaborate with others
across the company, suppliers and/or customers. The factor can range from 0.8 to 1.2.  

  

	 	G.	Company Performance Factor is based upon achievement of an established worldwide Revenue target and a worldwide Profit Before Interest and Tax (PBIT) target per the current
Plan by Cisco Systems, Inc. and all of its subsidiaries. The PBIT achievement to target is more heavily weighted relative to the worldwide Revenue target. Eighty percent of each objective must be achieved for any incentive to be paid. Maximum payout
under the Plan is 175% of the Incentive Target Percentage, or a factor of 1.75. When the Revenue and PBIT percentages of goal fall between the stated percentages on the matrix, the Performance Factor will be determined using a straight-line
interpolation approach. The applicable targets for the Fiscal Year may be amended at any time. 

  

	 	H.	Customer Satisfaction Factor is based upon the average achievement of two overall worldwide customer satisfaction survey scores drawn from all Cisco Systems Inc. and all of
its subsidiaries together worldwide. This factor will be based on a 50/50 blend of the Primary and Secondary Customer Satisfaction multipliers, and may range from 0.95 to 1.20 based on the following criteria: 

  

			
	 Primary Satisfaction Score

	  	Customer Satisfaction Multiplier

	 < 4.25
	  	0.95
	 4.25 – 4.34
	  	1.00
	 4.35 – 4.44
	  	1.05
	 4.45 – 4.59
	  	1.10
	 >4.59
	  	1.20
		
	 Secondary Satisfaction Score

	  	Customer Satisfaction Multiplier

	 < 4.10
	  	0.95
	 4.10 – 4.14
	  	1.00
	 4.15 – 4.18
	  	1.05
	 4.19 – 4.24
	  	1.10
	 >4.24
	  	1.20

  

	 	I.	Transfers and Terminations: Employees who are participants in the Plan and who transfer to a new position not governed by this Plan will be eligible on a pro-rata
basis for the applicable period and paid (or not paid) as defined by the Plan. Employees who transfer into the Plan from another plan will be subject to proration as well, and consequently will be eligible to participate in the Plan based on their
participation in this Plan during the Fiscal Year, applying the Proration factors referred to below. Any payments from the Plan are subject to reduction by advances, unearned commission advances, draws or prorations and appropriate withholdings.

  
 A participant must be employed on the last
working day of the Fiscal Year to be eligible for the year-end payment. A participant must be employed on the day of distribution to receive a partial midyear payment under paragraph II-M. Unless otherwise required by law, if an employee
terminates prior to the applicable date, the employee will not be eligible for such incentive or partial payment. 

			
	Professional and Leadership Incentive Plan FY2004	  	Page 4 of 5

  

	 	J.	Proration Factor accounts for the number of calendar days during the Fiscal Year that the employee was in the incentive-eligible position. For example, the Proration factor
for an employee who has been in the Plan the entire year will be 1.00. For an employee who has been in the Plan for 6 months, this factor will be 0.50. Unless otherwise provided by law, employees in the following situations will have a Proration
factor of less than 1.00: 

  

	 	•	Employees in the Plan who transferred to a new position not covered by the Plan. 

  

	 	•	Employees who transferred from one incentive-eligible position to another incentive-eligible position. Employees in this situation will have their eligibility under the Plan
prorated based on length of time in each position. 

  

	 	•	Employees who have been in the Plan less than 12 months (such as a New Hire). 

  

	 	•	Employees who have been on a leave of absence of any length during the fiscal quarter with the exception of Emergency Call-up Military Leave. 

  

	 	•	Employees working less than the full-time standard work week will be eligible to receive an incentive subject to proration of any such payment according to the following schedule:

  

			
	 Hours Worked

	  	 Incentive Eligibility

	Less than full-time as defined by standard work week	  	Prorated according to the average number of hours worked

  
 Any modification to
the above schedule must be approved by the next-level Manager and the Director of Compensation in advance of the year-end close date. 
  

	 	K.	Incentive Formula and Calculation Example: Assume an employee with a base salary of $95,000, Incentive Target of 14%, Individual Performance factor of 1.00, Teamwork and
Collaboration factor of 1.0, Cisco Systems, Inc. and all of its subsidiaries’ Company Performance factor of 1.00, a Customer Satisfaction factor of 1.05, and a Proration factor of 1.00. 

  
 Sample Calculation 
  

																													
	 Base
Salary

	  	 	  	 Incentive Target
Percentage

	  	 	  	 Individual
Performance
Factor

	  	 	  	 Teamwork and
Collaboration
Factor

	  	 	  	 Company
Performance
Factor

	  	 	  	 Customer
Satisfaction
Factor

	  	 	  	 Proration Factor

	  	 	  	 Total Annual
Incentive

	$95,000	  	X	  	0.14	  	X	  	1.0	  	X	  	1.0	  	X	  	1.0	  	X	  	1.05	  	X	  	1.0	  	=	  	$13,965.00*

  

	*	less any advance paid 

  
 In this example, the total incentive equals 14.7% of base salary. 
  

	 	L.	Midyear Advance of Year-End Incentive Payment: If the Cisco Systems, Inc. and all of its subsidiaries’ Company Performance Factor is at a minimum of 1.00, (measured on
the basis of midyear revenue and PBIT), a discretionary partial payment may be distributed to eligible employees midway through the Fiscal Year. This advance will not be more than 50% of the incentive target times current base salary, reduced by
advances, unearned commission advances, draws, prorations, and any outstanding debts owed to the company. This advance will be deducted from the year-end payout. Only Plan participants who have met job expectations, were hired on or before the first
working day of the second quarter of the Fiscal Year and are actively employed on the day of distribution will be eligible to receive a midyear advance. In no event, however, will any eligible participant receive such a partial payment unless that
individual is employed by Cisco Systems, Inc. or a participating Cisco subsidiary on the distribution date. 

			
	Professional and Leadership Incentive Plan FY2004	  	Page 5 of 5

  

 If Cisco Systems, Inc. and all of its subsidiaries’ Company Performance Factor is not at a minimum
of 1.00 (measured on the basis of midyear revenue and PBIT) but is at least .80, then a partial payment may, at the sole discretion of President/CEO, be distributed midway through the Fiscal Year to all or part of the employee population eligible
for the Plan, with the actual recipients to be determined by the President/CEO. Any such discretionary payment may be in an amount up to 25% of the incentive target by level, and will be deducted from the year-end payout, if any. However, only
employees who have met job expectations and were hired on or before the first day of the second quarter of the Fiscal Year and are actively employed on the day of distribution will be eligible for such a discretionary payment. 
  

	 	M.	Year-End Discretionary Incentive Payment: If Cisco Systems, Inc. and all of its subsidiaries’ performance fails to achieve the minimum revenue and PBIT targets for the
Fiscal Year so that no year-end payout becomes due under the Plan, then the President/CEO may, at his or her sole discretion, authorize a year-end payment in an amount up to 25% of the incentive target to all or a portion of the employee population
covered by the Plan, but in no event will an individual be eligible for such a discretionary payment unless he or she is employed on the last day of the Fiscal Year. All payments are subject to reduction by advances, unearned commission advances,
draws or prorations and any outstanding debts owed to the company. 

  

	III.	PROCEDURES AND PRACTICES 

  

	 	A.	Procedure:  

  

	 	1.	A copy of the Plan will be made available to each participant. 

  

	 	2.	All incentive payments will be made after all required or elected withholdings have been deducted. 

  

	 	B.	Business Conduct: It is the established policy of Cisco Systems, Inc. and all of its subsidiaries to conduct business with the highest standards of business ethics. Employees
may not offer, give, solicit or receive any payment that could appear to be a bribe, kickback or other irregular type of payment from anyone involved in any way with an actual or potential business transaction. 

  

	 	C.	Employment at Will (US Only): The employment of all Plan participants at Cisco Systems, Inc. and all of its subsidiaries is for an indefinite period of time and is terminable
at any time by either party, with or without cause or advance notice by either party. This Plan shall not be construed to create a contract of employment for a specified period of time between Cisco Systems, Inc. and all of its subsidiaries and any
Plan participant. Any modification of the employment relationship inconsistent with this Section must be in writing and signed by the President/CEO. 

  

	 	D.	Subsidiaries: This Plan applies to employees of all Cisco subsidiaries, except where the employees of a subsidiary are expressly eligible for participation in a bonus plan
established by the subsidiary by which they are employed, and/or where employees of a Cisco subsidiary are expressly informed in writing that they are not eligible for participation in this Plan. Employees of Cisco-Linksys LLC are not eligible for
participation in this Plan. 

  
 It is not
Cisco’s intention that employees of Cisco and its subsidiaries be eligible for more than one bonus plan, unless expressly stated to the contrary.

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