exv10w82






EXHIBIT 10.82




 





Indemnification Agreement




Dated 14 January 2011




Reynolds Group Holdings Limited




for the benefit and in favour of




the Indemnitees defined in Indemnification Agreement



(Netherlands)



 




 









 





Contents




	 	 	 	 	 
	Clause	 	Page	 
	1. Definitions
	 	 	3	 
	 
	 	 	 	 
	2. Indemnification
	 	 	4	 
	 
	 	 	 	 
	3. Limitations on Indemnification
	 	 	4	 
	 
	 	 	 	 
	4. Indemnification Procedure
	 	 	4	 
	 
	 	 	 	 
	5. Severability
	 	 	5	 
	 
	 	 	 	 
	6. Governing law
	 	 	5	 
	 
	 	 	 	 
	7. Amendments
	 	 	5	 
	 
	 	 	 	 
	8. Termination
	 	 	5	 
	 
	 	 	 	 
	Schedule
	 	 	 	 
	 
	 	 	 	 
	1. Part A: Netherlands Guarantor
	 	 	8	 
	 
	 	 	 	 
	2. Part B: List of Indemnitees
	 	 	9	 






 









 











THIS INDEMNIFICATION AGREEMENT is made on 14 January 2011










BY:



Reynolds Group Holdings Limited, a company registered in New Zealand whose registered office is at
c/o Bell Gully (GJM), Level 22, Vero Centre, 48 Shortland Street, Auckland, New Zealand
(“RGHL”);




IN FAVOUR AND FOR THE BENEFIT OF:



Each Indemnitee (as defined below).




BACKGROUND





	A.	 	As part of the Reynolds group of companies (the “Reynolds Group”), each Netherlands
Guarantor (as defined below) is a borrower, guarantor and/or a security provider (as relevant)
in respect of the Reynolds Group’s existing financing arrangements (the “Existing
Financing Arrangements”), including, without limitation, by:






	 	(a)	 	borrowing under and/or providing a guarantee and/or security (as applicable)
with respect to the senior secured credit agreement dated as of November 5, 2009,
between, among others, RGHL, the borrowers listed therein and Credit Suisse AG, as
amended by (i) Amendment No. 1, dated as of January 21, 2010, (ii) an amendment and
assumption agreement dated as of May 4, 2010, (iii) an amendment and assumption
agreement dated as of September 30, 2010 and (iv) each guarantor joinder entered into
from time to time (the “Senior Secured Credit Facilities”);
	 
	 	(b)	 	providing a guarantee and/or security (as applicable) with respect to the
7.75% senior secured notes due 2016 issued by members of the Reynolds Group in
aggregate principal amounts of US$1,125,000,000 and €450,000,000 pursuant to an
indenture dated November 5, 2009 (the “2009 Notes”); and
	 
	 	(c)	 	providing a guarantee and security with respect to the 7.125% senior secured
notes due 2019 issued by members of the Reynolds Group in aggregate principal amounts
of US$1,500,000,000 pursuant to an indenture dated October 15, 2010 (the “2010
Secured Notes”),






	 	 	(the Senior Secured Credit Facilities, the 2009 Notes and the 2010 Secured Notes being
together, the “Existing Secured Indebtedness”);






	 	(d)	 	providing a guarantee with respect to certain notes issued by members of the
Reynolds Group, including (i) 8% senior notes due 2016 issued in an aggregate
principal amount of €480,000,000 pursuant to an indenture dated June 29, 2007, (ii)
9.5% senior subordinated notes due 2017 issued in an aggregate principal amount of
€420,000,000 pursuant to an indenture dated June 29, 2007, (iii) 8.5% senior notes
due 2018 issued in an aggregate principal amount of




 









 












	 	 	 	US$1,000,000,000 pursuant to an indenture dated May 4, 2010 and (iv) 9.0% senior
notes due 2019 issued in an aggregate principal amount of US$1,500,000,000
pursuant to an indenture dated October 15, 2010 ((i), (ii), (iii) and (iv) are
together, the “Existing Notes”); and
	 
	 	(e)	 	being party to the intercreditor arrangements in respect of the guarantees,
indebtedness and security described above (the “Intercreditor Arrangements”).






	B.	 	It is currently intended that additional debt will be incurred in order to, without
limitation, (i) repay some or all of the debt incurred pursuant to the Senior Secured Credit
Facilities and/or (ii) increase the amount of cash available to certain members of the
Reynolds Group, including, without limitation, for general corporate purposes, to pay fees
and/or expenses in connection with the Transactions (as defined below) and/or to fund future
acquisitions.
	 
	C.	 	In connection with such incurrence of indebtedness, it is intended that the Existing
Financing Arrangements be supplemented and/or amended. Each Netherlands Guarantor (as defined
below) may, among other things, be required to do some or all of the following:






	 	(a)	 	provide a guarantee in respect of the issue of new senior unsecured notes by
indirect subsidiaries of RGHL (the “New Unsecured Notes”), and enter into a
purchase agreement and registration rights agreement relating to the New Unsecured
Notes;
	 
	 	(b)	 	provide a guarantee and security in respect of the issue of new senior
secured notes by indirect subsidiaries of RGHL (the “New Secured Notes”) which
will be secured on a pari passu basis with the security granted by each Netherlands
Guarantor in respect of the Existing Secured Indebtedness, and enter into a purchase
agreement and registration rights agreement relating to the New Secured Notes;
	 
	 	(c)	 	publish offering documents in respect of the New Secured Notes and the New
Unsecured Notes, together with entering into agreements relating to both the
underwriting of those notes by the initial note purchasers and the future registration
of those notes (and consequent tender offer) with the US Securities Exchange
Commission;
	 
	 	(d)	 	in addition to (whether contemporaneously or otherwise), or instead of, the
issue of the New Secured Notes and/or the New Unsecured Notes, enter into an amendment
and/or restatement agreement relating to the Senior Secured Credit Facilities to (i)
allow for the incurrence of additional indebtedness (the “Additional Bank
Debt”) that will be incurred to repay some or all of the existing tranches of debt
under the Senior Secured Credit Facilities, or into which some or all of the existing
tranches of debt under the Senior Secured Credit Facilities will be converted or
rolled over, (ii) reflect any repayment of debt made




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	 	 	 	from the proceeds of the Additional Bank Debt, the New Unsecured Notes and/or the
New Secured Notes and/or (iii) any amendments that are agreed with the Lenders (as
defined therein) to update certain of the commercial terms, including, without
limitation, relating to pricing, maturity and commercial and financial covenants
(the “Amendment Agreement”);
	 
	 	(e)	 	provide certain affirmations, re-affirmations and/or confirmations that its
guarantees currently in place in respect of the Existing Secured Indebtedness continue
in full force and effect notwithstanding the Transactions (as defined below) and
extend to the New Secured Notes;
	 
	 	(f)	 	provide any amendment, restatement, affirmation, re-affirmation, supplement,
extension, confirmation or release and retake of security, or grant of new or
additional security (which may be second or third ranking) in respect of collateral
under the applicable agreements, instruments or other documents creating security
interests in respect of the Existing Secured Indebtedness (the “Security
Documents”) in order to provide that such Security Documents (i) secure
obligations with respect to the New Secured Notes on a pari passu basis with the
Existing Secured Indebtedness to the extent possible and (ii) continue to secure
obligations in respect of the Existing Secured Indebtedness; and/or
	 
	 	(g)	 	enter into such amendments, supplements, joinders or other documents in
connection with the Intercreditor Arrangements to the extent required as may be
necessary to give effect to the proposed new structure,






	 	 	together, the “Transactions”. The documents relating to the Transactions are
collectively, the “Transaction Documents”.
	 
	D.	 	RGHL has agreed to provide an indemnity to the Indemnitees (as defined below) in respect of
the Transactions, as further described below.




It is the intention of RGHL that this document be executed as an agreement (this
“Agreement”) in favour and for the benefit of each Indemnitee.



THIS AGREEMENT WITNESSES as follows:





	1.	 	Definitions
	 
	 	 	“Indemnitee” means each person listed in Part B of the Schedule to this Agreement;
and
	 
	 	 	“Netherlands Guarantor” means the companies listed in Part A of the Schedule to
this Agreement.




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	2.	 	Indemnification
	 
	 	 	RGHL shall indemnify each Indemnitee against all legal expenses, losses, liabilities,
judgments, fines, penalties and amounts paid in settlement (including all interest,
assessments and other charges in connection therewith) (collectively, the “Indemnified
Liabilities”) incurred by an Indemnitee or on an Indemnitee’s behalf in connection with
any proceeding resulting from or relating to decisions the Indemnitee made or any actions
the Indemnitee took on behalf of a Netherlands Guarantor in his or her capacity as a
director of that company in connection with any transactions or the approval or execution
of any resolutions or documents in relation to the Transactions.
	 
	3.	 	Limitations on Indemnification
	 
	 	 	Notwithstanding any other provision of this Agreement, an Indemnitee shall not be entitled
to indemnification under this Agreement:






	 	(a)	 	to the extent that such indemnification is not permitted by applicable laws;
or
	 
	 	(b)	 	to the extent such Indemnified Liabilities are the result of the bad faith or
wilful misconduct of the Indemnitee; or
	 
	 	(c)	 	to the extent that payment has or will be made to the relevant Indemnitee by
a Netherlands Guarantor or any affiliate of RGHL otherwise than pursuant to this
Agreement; or
	 
	 	(d)	 	in connection with any proceeding (or part thereof) initiated by an
Indemnitee, unless:






	 	(i)	 	such indemnification is expressly required to be made by
law,
	 
	 	(ii)	 	the proceeding was authorised by the shareholder(s) (or
other decision making organ) of the relevant Netherlands Guarantor; or
	 
	 	(iii)	 	such indemnification is provided by the relevant
Netherlands Guarantor, in its sole discretion, pursuant to the powers vested
in the relevant Netherlands Guarantor under applicable law.






	4.	 	Indemnification Procedure
	 
	(a)	 	Each Indemnitee shall give RGHL notice in writing as soon as practicable of any proceeding in
relation to that Indemnitee for which indemnification will or could be sought under this
Agreement. To obtain indemnification payments or advances under this Agreement, an Indemnitee
shall submit to RGHL a written request therefore, together with such invoices or other
supporting information as may be reasonably requested by RGHL and reasonably available to the
relevant Indemnitee. Subject to clause 4(b), RGHL shall make




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	 	 	such indemnification payment within 15 business days of receipt of such invoices and
supporting information.
	 
	(b)	 	There shall be no presumption in favour of indemnification. If there is a dispute between
RGHL and an Indemnitee as to whether that Indemnitee is entitled to indemnification, then
independent legal counsel shall be selected by the board of directors of RGHL to make such
determination. The selected independent legal counsel shall make such determination within 30
business days of being selected and the decision of such independent legal counsel shall be
binding upon all RGHL and the relevant Indemnitee;
	 
	(c)	 	Pending the procedures set out in paragraph 4 (a) and 4 (b) of the Agreement the relevant
Indemnitee is entitled to immediate relief and assistance in any way possible from RGHL for as
far as direct actions against the relevant Indemnitee are taken in connection with any
proceeding resulting from or relating to decisions the Indemnitee made or any actions the
Indemnitee took on behalf of a Netherlands Guarantor in his or her capacity as a director of
that company in connection with any transactions or the approval or execution of any
resolutions or documents in relation to the Transactions. In case the procedures set out in
paragraph 4 (a) and 4 (b) of the Agreement lead to the conclusion that the relevant Indemnitee
can not exercise any rights under the Agreement, the relevant Indemnitee shall reimburse any
and all costs made by RGHL in relation thereto.
	 
	5.	 	Severability
	 
	 	 	If any provision or provisions of this Agreement shall be held to be invalid, illegal or
unenforceable for any reason, the validity, legality and enforceability of the remaining
provisions of this Agreement shall not in any way be affected or impaired thereby and shall
remain enforceable to the fullest extent permitted by law.
	 
	6.	 	Governing law
	 
	 	 	This Agreement shall be governed by and its provisions construed in accordance with
Netherlands law.
	 
	7.	 	Amendments
	 
	 	 	No amendment or modification of this Agreement shall be effective unless it is approved in
writing by each Indemnitee having the benefit of this Agreement.
	 
	8.	 	Termination
	 
	 	 	This Agreement shall remain in effect in favour and for the benefit of each Indemnitee
until the expiration of 12 months after the date that is the later to occur of:






	 	(a)	 	the relevant Indemnitee ceasing to serve as a director of the relevant
Netherlands Guarantor; and




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	 	(b)	 	the date on which all obligations of the relevant Netherlands Guarantor of
which that Indemnitee is a director in respect of the Transaction Documents are
expired, terminated or released.




6









 










IN WITNESS of which this Agreement has been executed and has been delivered on the date stated at
the beginning of this Agreement for the benefit and in favour of each Indemnitee.




	 	 	 	 	 
	 	Reynolds Group Holdings Limited

 	 
	 	/s/ Gregory Cole
 	 
	 	Name:  	Gregory Cole 	 



	 	 	 	 	 
	 	                                                            /s/ [ILLEGIBLE]
 	 
	 	Signature of witness 	 
	 	 	 
	 	                                                            /s/ Analyst
 	 
	 	Occupation 	 
	 	 	 
	 	                                                            /s/ Auckland
 	 
	 	City of Residence 	 
	 	 	 



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Schedule




Part A



Netherlands Guarantor




	•	 	Closure Systems International B.V.
	 
	•	 	Reynolds Consumer Products International B.V.
	 
	•	 	Evergreen Packaging International B.V.
	 
	•	 	Reynolds Packaging International B.V.




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Part B




List of Indemnitees




	•	 	Gregory Alan Cole
	 
	•	 	Bryce McCheyne Murray
	 
	•	 	Eleonora Jongsma
	 
	•	 	Orangefield Trust (Netherlands) B.V.
	 
	•	 	Thomas James Degnan






9