Document:

exv4w130

EXHIBIT 4.130

BACO CONSUMER PRODUCTS LIMITED

as Chargor

in favour of

THE BANK OF NEW YORK MELLON

as Collateral Agent

 

DEBENTURE

 

The taking of this document or any certified copy of it or any document which constitutes
substitute documentation for it, or any document which includes written confirmations or references
to it, into Austria as well as printing out any e-mail communication which refers to any Loan
Document in Austria or sending any e-mail communication to which a pdf scan of this document is
attached to an Austrian addressee or sending any e-mail communication carrying an electronic or
digital signature which refers to any Loan Document to an Austrian addressee may cause the
imposition of Austrian stamp duty. Accordingly, keep the original document as well as all certified
copies thereof and written and signed references to it outside of Austria and avoid printing out
any e-mail communication which refers to any Loan Document in Austria or sending any e-mail
communication to which a pdf scan of this document is attached to an Austrian addressee or sending
any e-mail communication carrying an electronic or digital signature which refers to any Loan
Document to an Austrian addressee.

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CONTENTS

	 	 	 	 	 
	Clause	 	Page
	1. Definitions and Interpretation

	 	 	1	 
	2. Payment of Secured Liabilities

	 	 	5	 
	3. Fixed Charges, Assignments and Floating Charge

	 	 	5	 
	4. Crystallisation of Floating Charge

	 	 	7	 
	5. Perfection of Lien

	 	 	8	 
	6. Further Assurance

	 	 	10	 
	7. Negative Pledge and Disposals

	 	 	11	 
	8. Shares and Investments

	 	 	11	 
	9. Accounts

	 	 	13	 
	10. Monetary Claims

	 	 	14	 
	11. Insurances

	 	 	15	 
	12. Undertakings

	 	 	16	 
	13. Enforcement of Lien

	 	 	16	 
	14. Extension and Variation of the Law of Property Act 1925

	 	 	17	 
	15. Appointment of Receiver or Administrator

	 	 	18	 
	16. Powers of Receiver

	 	 	19	 
	17. Application of Monies

	 	 	19	 
	18. Protection of purchasers

	 	 	20	 
	19. Power of Attorney

	 	 	20	 
	20. Effectiveness of Lien

	 	 	21	 
	21. Release of Lien

	 	 	23	 
	22. Subsequent and Prior Lien

	 	 	24	 
	23. Assignment

	 	 	24	 
	24. Indemnity

	 	 	24	 
	25. Payments Free of Deduction

	 	 	25	 
	26. Currency Indemnity

	 	 	25	 
	27. Discretion and Delegation

	 	 	25	 
	28. Perpetuity Period

	 	 	26	 
	29. Governing Law

	 	 	26	 
	30. Jurisdiction

	 	 	26	 
	Schedule 1 Details of Accounts

	 	 	27	 
	Schedule 2 Form of Notice of Assignment of Insurance

	 	 	28	 
	Schedule 3 Form of Notice of Assignment of Account

	 	 	30	 

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THIS DEBENTURE is made by way of deed on 17 December 2009

BY

	(1)	 	BACO CONSUMER PRODUCTS LIMITED registered in England and Wales with company number 03322218
(the “Chargor”) in favour of
	 
	(2)	 	THE BANK OF NEW YORK MELLON in its capacity as collateral agent as appointed under the First
Lien Intercreditor Agreement for the Secured Parties (the “Collateral Agent”).

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions

	 	 	In this Debenture:

	 	 	“Account” means any account opened or maintained by the Chargor with the Collateral Agent or
any other person (and any replacement account or subdivision or subaccount of that account),
the debt or debts represented thereby and all Related Rights.

	 	 	“Additional Agreement” has the meaning given to such term in the First Lien Intercreditor
Agreement.

	 	 	“Agreed Security Principles” has the meaning given to such term in the Credit Agreement and
the Senior Secured Note Indenture and, to the extent of any inconsistency, the meaning in
the Credit Agreement prevails.

	 	 	“Applicable Representative” has the meaning given to that term in the First Lien
Intercreditor Agreement.

	 	 	“Assigned Account” means the Account with account number [            ] (account name BACO Consumer
Products Limited) (and any renewal or redesignation of such account) maintained with
Citibank by the Chargor, the Account with account number [            ] (account name BACO Consumer
Products Limited) (and any renewal or redesignation of such account) maintained with
Citibank by the Chargor and the Account with account number [            ] (account name BACO
Consumer Products Limited) (and any renewal or redesignation of such account) maintained
with Citibank by the Chargor and any other Account that may from time to time be identified
in writing as an Assigned Account by the Collateral Agent.

	 	 	“Charged Property” means all the assets and undertaking of the Chargor which from time to
time are the subject of the security created or expressed to be created in favour of the
Collateral Agent by or pursuant to this Debenture.

	 	 	“Claims Account” means the Account with
account number
[            ] (account name BACO Consumer
Products Limited) (and any renewal or redesignation of such account) maintained with
Citibank by the Chargor, the Account with account number [            ] (account name BACO Consumer
Products Limited) (and any renewal or

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	 	 	redesignation of such account) maintained with Citibank by the Chargor and the Account with
account number [____________] (account name BACO Consumer Products Limited) (and any renewal or
redesignation of such account) maintained with Citibank by the Chargor and any other Account
that may from time to time be identified in writing by the Collateral Agent as an Account
into which the proceeds of the getting in or realisation of the Monetary Claims are to be
paid and in respect of which the relevant bank or financial institution has agreed to
operate such Account in accordance with any procedures stipulated by the Collateral Agent.

	 	 	“Collateral Rights” means all rights, powers and remedies of the Collateral Agent provided
by or pursuant to this Debenture or by law.

“Credit Agreement” means the Credit Agreement dated 5 November, 2009, among Reynolds Group
Holdings Inc., Reynolds Consumer Products Holdings Inc., SIG Euro Holding AG & Co. KGaA, SIG
Austria Holding GmbH, Closure Systems International Holdings Inc., and Closure Systems
International B.V. as Borrowers, Reynolds Group Holdings Limited, the lenders from time to
time party thereto and Credit Suisse AG (formerly known as Credit Suisse), as administrative
agent, as amended, extended, restructured, renewed, novated, supplemented, restated,
refunded, replaced or modified from time to time.

“Delegate” means a delegate or sub-delegate appointed pursuant to Clause 28.2 (Delegation)
of this Debenture.

“Enforcement Event” means an “Event of Default” under, and as defined in, the First Lien
Intercreditor Agreement.

“First Lien Intercreditor Agreement” means the First Lien Intercreditor Agreement dated 5
November, 2009, among the Collateral Agent, The Bank of New York Mellon, as trustee under
the Senior Secured Note Indenture, Credit Suisse AG (formerly known as Credit Suisse), as
administrative agent under the Credit Agreement, and the Loan Parties, as amended, novated,
supplemented, restated or modified from time to time.

“Group” means Reynolds Group Holdings Limited and each of its subsidiaries from time to
time.

“Insurance Policy” means, subject to the Agreed Security Principles, any policy of insurance
in which the Chargor may from time to time have an interest.

“Intercreditor Arrangements” means the First Lien Intercreditor Agreement and any other
document that is designated by the Loan Parties’ Agent and the Collateral Agent as an
intercreditor agreement, in each case as amended, novated, supplemented, restated, replaced
or modified from time to time.

“Intellectual Property” means any patents, trade marks, service marks, designs, business
names, copyrights, database rights, design rights, moral rights, inventions, confidential
information, knowhow and other intellectual property rights and interests, whether
registered or unregistered, the benefit of all applications and rights to use such assets
and all Related Rights, in each case whether currently existing, or arising or acquired at
any time in the future.

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“Investments” means:

	 	(a)	 	any stocks, shares, debentures, securities and certificates of deposit (but not
including the Shares);

	 	(b)	 	all interests in collective investment schemes; and

	 	(c)	 	all warrants, options and other rights to subscribe or acquire any of the
investments described in (a) and (b),

in each case whether held directly by or to the order of the Chargor or by any trustee,
nominee, fiduciary or clearance system on its behalf and all Related Rights (including all
rights against any such trustee, nominee, fiduciary or clearance system).

“Issuers” means the “Issuers” under, and as defined in, the Senior Secured Note Indenture,
including their successors in interest.

“Lien” has the meaning given to such term in the First Lien Intercreditor Agreement.

“Loan Documents” means the “Credit Documents” under, and as defined in, the First Lien
Intercreditor Agreement and any other document designated by the Loan Parties’ Agent and the
Collateral Agent as a Loan Document.

“Loan Parties” means the “Grantors” under, and as defined in, the First Lien Intercreditor
Agreement.

“Loan Parties’ Agent” means Reynolds Group Holdings Limited (formerly known as Rank Group
Holdings Limited).

“Monetary Claims” means any book and other debts and monetary claims owing to the Chargor
and any proceeds of such debts and claims (including any claims or sums of money deriving
from or in relation to any Intellectual Property, any Investment, the proceeds of any
Insurance Policy, any court order or judgment, any contract or agreement to which the
Chargor is a party and any other assets, property, rights or undertaking of the Chargor).

“Notice of Assignment” means a notice of assignment in substantially the form set out
Schedule 2 (Form of notice of assignment of insurance) or Schedule 3 (Form of notice of
assignment of Account), or in such form as may be specified by the Collateral Agent.

“Principal Finance Documents” means the Credit Agreement, the Senior Secured Note Indenture,
the Intercreditor Arrangements and any Additional Agreement.

“Receiver” means a receiver or receiver and manager or, where permitted by law, an
administrative receiver of the whole or any part of the Charged Property and that term will
include any appointee made under a joint and/or several appointment.

“Related Rights” means, in relation to any asset:

	 	(a)	 	the proceeds of sale of any part of that asset;

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	 	(b)	 	all rights under any licence, agreement for sale or agreement for lease in
respect of that asset;

	 	(c)	 	all rights, powers, benefits, claims, contracts, goodwill, warranties,
remedies, security, guarantees, indemnities or covenants for title in respect of that
asset; and

	 	(d)	 	any monies and proceeds paid or payable in respect of that asset.

“Secured Liabilities” means all present and future obligations and liabilities (whether
actual or contingent and whether owed jointly or severally or in any other capacity
whatsoever) of each Loan Party and each grantor of a security interest to the Secured
Parties (or any of them) under each or any of the Loan Documents, together with all costs,
charges and expenses incurred by any Secured Party in connection with the protection,
preservation or enforcement of its respective rights under the Loan Documents or any other
document evidencing or securing any such liabilities.

“Secured Parties” means the “Secured Parties” under, and as defined in, the First Lien
Intercreditor Agreement.

“Security Documents” means the “Security Documents” under, and as defined in, the First Lien
Intercreditor Agreement.

“Senior Secured Note Indenture” means the Indenture dated 5 November, 2009, among the
Issuers, the Note Guarantors (as defined therein) and The Bank of New York Mellon, as
trustee, principal paying agent, transfer agent and registrar, as amended, extended,
restructured, renewed, refunded, novated, supplemented, restated, replaced or modified from
time to time.

“Shares” means all of the shares in the capital of one or more members of the Group
incorporated in England and Wales and held by, to the order or on behalf of the Chargor at
any time.

“Tangible Moveable Property” means any plant, machinery, office equipment, computers,
vehicles and other chattels (excluding any for the time being forming part of the Chargor’s
stock in trade or work in progress) and all Related Rights.

	1.2	 	Construction

	 	1.2.1	 	In this Debenture:

	 	(a)	 	the rules of interpretation contained in the First Lien
Intercreditor Agreement shall apply to the construction of this Debenture;
	 
	 	(b)	 	any reference to the “Collateral Agent”, the “Chargor” or the
“Secured Parties” shall be construed so as to include its or their (and any
subsequent) successors and any permitted transferees in accordance with their
respective interests; and
	 
	 	(c)	 	references in this Debenture to any Clause or Schedule shall be
to a clause or schedule contained in this Debenture unless a contrary intention
appears;

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	 	1.2.2	 	This Debenture is subject to the terms of the Intercreditor Arrangements.
In the event of a conflict between the terms of this Debenture and the Intercreditor
Arrangements, the terms of the Intercreditor Arrangements will prevail.

	1.3	 	Third Party Rights

A person who is not a party to this Debenture has no right under the Contracts (Rights of
Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Debenture.

	1.4	 	Terms defined in the First Lien Intercreditor Agreement

	 	 	Unless defined in this Debenture or the context otherwise requires, a term defined in the
First Lien Intercreditor Agreement has the same meaning in this Debenture or any notice
given under or in connection with this Debenture.

	2.	 	PAYMENT OF SECURED LIABILITIES

	2.1	 	Covenant to Pay

	 	 	The Chargor covenants with the Collateral Agent as security trustee for the Secured Parties
that it shall on demand of the Collateral Agent pay its Secured Liabilities (whether for its
own account or as security trustee for the Secured Parties) including any liability to pay
Secured Liabilities in respect of any further advances made under the Loan Documents,
whether present or future, actual or contingent (and whether incurred solely or jointly and
whether as principal or as surety or in some other capacity) and the Chargor shall pay to
the Collateral Agent when due and payable every sum of its Secured Liabilities at any time
owing, due or incurred by the Chargor to the Collateral Agent (whether for its own account
or as security trustee for the Secured Parties) or any of the other Secured Parties in
respect of any such liabilities, provided that neither such covenant nor the security
constituted by this Debenture shall extend to or include any liability or sum which would,
but for this proviso, cause such covenant or security to be unlawful or prohibited by any
applicable law.

	2.2	 	Interest on Demands

	 	 	Section 2.07 (Default Interest) of the Credit Agreement applies to amounts which the Chargor
fails to pay under this Debenture.

	3.	 	FIXED CHARGES, ASSIGNMENTS AND FLOATING CHARGE
	 
	3.1	 	Fixed Charges

	 	3.1.1	 	The Chargor charges with full title guarantee in favour of the Collateral
Agent as security trustee for the Secured Parties as security for the payment and
discharge of the Secured Liabilities, by way of first fixed charge all the Chargor’s
right, title and interest from time to time in and to (subject to obtaining any
necessary consent to such fixed charge from any third party and subject to any Liens
permitted pursuant to Section 6.02(u) of the Credit Agreement or any similar Liens) the
Accounts.

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	 	3.1.2	 	The Chargor charges with full title guarantee in favour of the Collateral
Agent as security trustee for the Secured Parties as security for the payment and
discharge of the Secured Liabilities, by way of first fixed charge all the Chargor’s
right, title and interest from time to time in and to (subject to obtaining any
necessary consent to such fixed charge from any third party) the Tangible Moveable
Property.

	 	3.1.3	 	The Chargor charges with full title guarantee in favour of the Collateral
Agent as security trustee for the Secured Parties as security for the payment and
discharge of the Secured Liabilities, by way of first fixed charge all the Chargor’s
right, title and interest from time to time in and to (subject to obtaining any
necessary consent to such fixed charge from any third party) the Intellectual Property.

	 	3.1.4	 	The Chargor charges with full title guarantee in favour of the Collateral
Agent as security trustee for the Secured Parties as security for the payment and
discharge of the Secured Liabilities, by way of first fixed charge all the Chargor’s
right, title and interest from time to time in and to (subject to obtaining any
necessary consent to such fixed charge from any third party) any goodwill and rights in
relation to the uncalled capital of the Chargor.

	 	3.1.5	 	The Chargor charges with full title guarantee in favour of the Collateral
Agent as security trustee for the Secured Parties as security for the payment and
discharge of the Secured Liabilities, by way of first fixed charge all the Chargor’s
right, title and interest from time to time in and to (subject to obtaining any
necessary consent to such fixed charge from any third party) the Investments.

	 	3.1.6	 	The Chargor charges with full title guarantee in favour of the Collateral
Agent as security trustee for the Secured Parties as security for the payment and
discharge of the Secured Liabilities, by way of first fixed charge all the Chargor’s
right, title and interest from time to time in and to (subject to obtaining any
necessary consent to such fixed charge from any third party) the Shares, all dividends,
interest and other monies payable in respect of the Shares and all other Related Rights
(whether derived by way of redemption, bonus, preference, option, substitution,
conversion or otherwise).

	 	3.1.7	 	The Chargor charges with full title guarantee in favour of the Collateral
Agent as security trustee for the Secured Parties as security for the payment and
discharge of the Secured Liabilities, by way of first fixed charge all the Chargor’s
right, title and interest from time to time in and to (subject to obtaining any
necessary consent to such fixed charge from any third party) all Monetary Claims and
all Related Rights other than any claims which are otherwise subject to a fixed charge
or assignment (at law or in equity) pursuant to this Debenture.

	3.2	 	Assignments

	 	 	The Chargor assigns and agrees to assign absolutely with full title guarantee to the
Collateral Agent as security trustee for the Secured Parties as security for the payment and
discharge of the Secured Liabilities all the Chargor’s right, title and interest from

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	 	 	time to time in and to each of the following assets (subject to obtaining any necessary
consent to that assignment from any third party):

	 	3.2.1	 	the proceeds of any Insurance Policy and all Related Rights; and
	 
	 	3.2.2	 	all rights and claims in relation to any Assigned Account.

	3.3	 	Floating Charge

	 	3.3.1	 	The Chargor with full title guarantee charges in favour of the Collateral
Agent as security trustee for the Secured Parties as security for the payment and
discharge of the Secured Liabilities by way of first floating charge (subject to any
Liens permitted under the Principal Loan Documents) all present and future assets and
undertaking of the Chargor.
	 
	 	3.3.2	 	The floating charge created by paragraph 3.3.1 above shall be deferred in
point of priority to all fixed Lien validly and effectively created by the Chargor
under the Loan Documents in favour of the Collateral Agent as security trustee for the
Secured Parties as security for the Secured Liabilities.
	 
	 	3.3.3	 	Paragraph 14 of Schedule B1 to the Insolvency Act 1986 applies to the
floating charge created pursuant to this Clause 3.3 (Floating Charge).

	4.	 	CRYSTALLISATION OF FLOATING CHARGE
	 
	4.1	 	Crystallisation: By Notice

	 	 	Upon receipt of instructions of the Applicable Representative, the Collateral Agent may at
any time by notice in writing to the Chargor convert the floating charge created by Clause
3.3 (Floating Charge) with immediate effect into a fixed charge as regards any property or
assets specified in the notice if:

	 	4.1.1	 	an Enforcement Event has occurred and is continuing; or

	 	4.1.2	 	the Collateral Agent reasonably considers that any of the Charged Property
may be in jeopardy or in danger of being seized or sold pursuant to any form of legal
process; or

	 	4.1.3	 	the Collateral Agent reasonably considers that it is desirable in order to
protect the priority of the Lien created by this Debenture.

	4.2	 	Crystallisation: Automatic

	 	 	Notwithstanding Clause 4.1 (Crystallisation: By Notice) and without prejudice to any law
which may have a similar effect, the floating charge will automatically be converted
(without notice) with immediate effect into a fixed charge as regards all the assets subject
to the floating charge if:

	 	4.2.1	 	the Chargor creates or attempts to create any Lien (other than any Lien
permitted under the Principal Finance Documents), over any of the Charged Property; or

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	 	4.2.2	 	any person levies or attempts to levy any distress, execution or other
process against any of the Charged Property;

	 	4.2.3	 	a resolution is passed or an order is made for the winding-up, dissolution,
administration or re-organisation of the Chargor or an administrator is appointed to
the Chargor; or

	 	4.2.4	 	any person (who is entitled to do so) gives notice of its intention to
appoint an administrator to the Chargor or files such a notice with the court.

	5.	 	PERFECTION OF LIEN
	 
	5.1	 	Notices of Assignment

	 	 	The Chargor shall deliver to the Collateral Agent (or procure delivery of) Notices of
Assignment duly executed by, or on behalf of, the Chargor:

	 	5.1.1	 	in respect of each Assigned Account, on the date of this Debenture or
promptly upon the designation at any time by the Collateral Agent of any Account as an
Assigned Account; and

	 	5.1.2	 	in respect of any Insurance Policy which is the subject of an assignment
pursuant to Clause 3.2 (Assignments) promptly upon the request of the Collateral Agent
from time to time provided that an Enforcement Event has occurred and is continuing,

	 	 	and in each case, shall use all reasonable endeavours to procure that each notice is
acknowledged by the obligor, debtor or financial institution specified by the Collateral
Agent, provided always that each notice in respect of any Insurance Policy pursuant to sub
clause 5.1.2 shall not be served on the relevant obligor, debtor or financial institution
unless and until an Enforcement Event has occurred and is continuing.

	5.2	 	Notices of Charge

	 	5.2.1	 	The Chargor shall if requested by the Collateral Agent from time to time if
an Enforcement Event has occurred and is continuing promptly deliver to the Collateral
Agent (or procure delivery of) notices of charge duly executed by, or on behalf of, the
Chargor and acknowledged by each of the banks or financial institutions with which any
of the Accounts are opened or maintained.

	 	5.2.2	 	The execution of this Debenture by the Chargor and the Collateral Agent
shall constitute notice to the Collateral Agent of the charge created over any Account
opened or maintained with the Collateral Agent.

	5.3	 	Further Advances

	 	5.3.1	 	Subject to the terms of the Loan Documents, each Lender (as defined in the
Credit Agreement) is under an obligation to make further Loans (as defined in the
Credit Agreement) to the Loan Parties and that obligation will be deemed to be
incorporated into this Debenture as if set out in this Debenture.

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	 	5.3.2	 	Subject to the terms of the Loan Documents, each Issuer may issue further
Notes (as defined in the Senior Secured Notes Indenture) to the Loan Parties and that
obligation will be deemed to be incorporated into this Debenture as if set out in this
Debenture.

	5.4	 	Delivery of Share Certificates

	 	 	The Chargor shall:

	 	5.4.1	 	on the date of this Debenture, deposit with the Collateral Agent (or procure
the deposit of) all certificates or other documents of title to the Shares, and stock
transfer forms (executed in blank by or on behalf of the Chargor); and

	 	5.4.2	 	promptly upon the accrual, offer or issue of any stocks, shares, warrants or
other securities in respect of or derived from the Shares, notify the Collateral Agent
of that occurrence and procure the delivery to the Collateral Agent of (a) all
certificates or other documents of title representing such items and (b) such stock
transfer forms or other instruments of transfer (executed in blank on behalf of the
Chargor) in respect thereof as the Collateral Agent may reasonably request.

	5.5	 	Registration of Intellectual Property

	 	 	The Chargor shall, subject to and in accordance with the Agreed Security Principles, if
requested by the Collateral Agent, execute all such documents and do all acts that the
Collateral Agent may reasonably require to record the interest of the Collateral Agent in
any registers relating to any registered Intellectual Property.

	5.6	 	Investments: Delivery of Documents of Title

	 	 	Subject to the Agreed Security Principles, the Chargor shall, upon the execution of this
Debenture, and upon the acquisition by the Chargor of any interest in any Investment
promptly deliver to the Collateral Agent (or procure delivery of), all of the Investments or
the certificates and other documents of title to or representing the Investments held or
acquired by, or on behalf of, the Chargor together with, in form and substance reasonably
satisfactory to the Collateral Agent:

	 	5.6.1	 	any document or thing which the Collateral Agent may request with a view to
perfecting or improving its security over the Investments or to registering any
Investment in its name or the name of any nominee(s);

	 	5.6.2	 	a duly executed declaration of trust in respect of any Investment which is
not in the sole name of the Chargor;

	 	5.6.3	 	any instrument(s) of transfer or assignment of any Investments specified by
the Collateral Agent on the instructions of the Applicable Representative (with the
name of the transferee or assignee, the consideration and the date left blank, but
otherwise duly completed and executed); and

	 	5.6.4	 	in the case of any Investments held by or on behalf of a nominee of any
settlement system of any exchange, duly executed stock notes or other documents in the
name of the Collateral Agent (or its nominee(s) or agent(s))

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	 	 	 	representing or evidencing any benefit or entitlement to the Investments held in
such settlement system and the Collateral Agent may from time to time have any of
the Investments registered in its name or in the name of one or more nominees on its
behalf.

	6.	 	FURTHER ASSURANCE
	 
	6.1	 	Further Assurance: General

	 	6.1.1	 	The covenant set out in Section 2(1)(b) of the Law of Property
(Miscellaneous Provisions) Act 1994 shall extend to include the obligations set out in
Clause 6.1.2 below.

	 	6.1.2	 	Subject to the Agreed Security Principles, the Chargor shall promptly at its
own cost do all such acts or execute all such documents (including assignments,
transfers, mortgages, charges, notices and instructions) as the Collateral Agent may
reasonably specify (and in such form as the Collateral Agent may reasonably require in
favour of the Collateral Agent or its nominee(s) or Delegate):

	 	(a)	 	to perfect the security created or intended to be created in
respect of the Charged Property (which may include the execution by the Chargor
of a mortgage, charge or assignment over all or any of the assets constituting,
or intended to constitute, Charged Property) or for the exercise of the
Collateral Rights;

	 	(b)	 	to confer on the Collateral Agent security over any property
and assets of the Chargor located in any jurisdiction outside England and Wales
equivalent or similar to the security intended to be conferred by or pursuant
to this Debenture; and/or

	 	(c)	 	to facilitate the realisation of the Charged Property.

	6.2	 	Necessary Action

	 	 	Subject to the Agreed Security Principles, the Chargor shall take all such action as is
available to it (including making all filings and registrations) as may be necessary for the
purpose of the creation, perfection, protection or maintenance of any security conferred or
intended to be conferred on the Collateral Agent by or pursuant to this Debenture.

	6.3	 	Consents

	 	 	Subject to the Agreed Security Principles, the Chargor shall use all reasonable endeavours
to obtain (in form and content reasonably satisfactory to the Collateral Agent) as soon as
reasonably practicable any consents necessary to enable the assets of the Chargor to be the
subject of an effective fixed charge or assignment pursuant to Clause 3 (Fixed Charges,
Assignments and Floating Charge) and, immediately upon obtaining any such consent, the asset
concerned shall become subject to such security and the Chargor shall promptly deliver a
copy of each consent to the Collateral Agent.

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	6.4	 	Implied Covenants for Title

	 	 	The obligations of the Chargor under this Debenture shall be in addition to the covenants
for title deemed to be included in this Debenture by virtue of Part 1 of the Law of Property
(Miscellaneous Provisions) Act 1994.

	7.	 	NEGATIVE PLEDGE AND DISPOSALS

	7.1	 	Negative Pledge

	 	 	The Chargor undertakes that it shall not create or permit to subsist any Lien over all or
any part of the Charged Property other than any Lien permitted pursuant to the Principal
Finance Documents.

	7.2	 	No Disposal of Interests

	 	 	The Chargor undertakes that it shall not (and shall not agree to), except as permitted
pursuant to this Debenture or the Principal Finance Documents:

	 	7.2.1	 	execute any conveyance, transfer, lease or assignment of, or other right to
use or occupy, all or any part of the Charged Property;

	 	7.2.2	 	create any legal or equitable estate or other interest in, or over, or
otherwise relating to, all or any part of the Charged Property;

	 	7.2.3	 	(a) grant or vary, or accept any surrender, or cancellation or disposal of,
any lease, tenancy, licence, consent or other right to occupy in relation to any of the
Charged Property or (b) allow any person any right to use or occupy or to become
entitled to assert any proprietary interest in, or right over, the Charged Property,
which may, in each case, adversely affect the value of any of the Charged Property or
the ability of the Collateral Agent to exercise any of the Collateral Rights; or

	 	7.2.4	 	assign or otherwise dispose of any interest in any Account and no right,
title or interest in relation to any Account, or the credit balance standing to any
such Account shall be capable of assignment or other disposal.

	8.	 	SHARES AND INVESTMENTS
	 
	8.1	 	Shares: Before an Enforcement Event

	 	 	If an Enforcement Event is not continuing the Chargor shall:

	 	8.1.1	 	be entitled to all dividends, interest and other monies or distributions
arising from the Shares to the extent the same are permitted to be paid under the
Principal Finance Documents; and

	 	8.1.2	 	be entitled to exercise all voting rights in relation to the Shares provided
that the Chargor shall not exercise (and shall procure that any nominee acting on its
behalf does not exercise) such voting rights in any manner, or otherwise permit or
agree to any (a) variation of the rights attaching to or conferred by any of the Shares
or (b) increase in the issued share capital of any company

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	 	 	 	whose Shares are charged pursuant to this Debenture, which would adversely affect
the validity and enforceability of the security created by this Debenture or cause
an Enforcement Event to occur.

	8.2	 	Shares: After an Enforcement Event

	 	 	The Collateral Agent may, if an Enforcement Event has occurred and is continuing, at its
discretion and shall if so instructed by the Applicable Representative (in the name of the
Chargor or otherwise and without any further consent or authority from the Chargor):

	 	8.2.1	 	exercise (or refrain from exercising) any voting rights in respect of the
Shares;

	 	8.2.2	 	apply all dividends, interest and other monies arising from the Shares in
accordance with Clause 17 (Application of Monies);

	 	8.2.3	 	transfer the Shares into the name of such nominee(s) of the Collateral Agent
as it shall require; and

	 	8.2.4	 	exercise (or refrain from exercising) the powers and rights conferred on or
exercisable by the legal or beneficial owner of the Shares,

	 	 	in such manner and on such terms as the Collateral Agent may think fit, and the proceeds of
any such action shall form part of the Charged Property.

	8.3	 	Investments and Shares: Payment of Calls

	 	 	The Chargor shall pay when due all calls or other payments which may be or become due in
respect of any of the Investments and Shares, and in any case of default by the Chargor in
such payment (of which the Collateral Agent has actual knowledge), the Collateral Agent may
but shall not be obliged, if it thinks fit, make such payment on behalf of the Chargor in
which case any sums paid by the Collateral Agent shall be reimbursed by the Chargor to the
Collateral Agent promptly following demand and shall carry interest from the date of payment
by the Collateral Agent until reimbursed at the rate and in accordance with Clause 2.2
(Interest on Demands), provided that the Collateral Agent shall not be required to make any
such payment on behalf of the Chargor unless and until it shall have been (a) instructed to
do so by the Applicable Representative and (b) indemnified and/or secured and/or pre-funded
to its satisfaction.

	8.4	 	Investments: Delivery of Documents of Title

	 	 	If an Enforcement Event has occurred and is continuing the Chargor shall promptly on the
request of the Collateral Agent, deliver (or procure delivery) to the Collateral Agent, and
the Collateral Agent shall be entitled to retain, all of the Investments and any
certificates and other documents of title representing the Investments to which the Chargor
(or its nominee(s)) is or becomes entitled together with any other document which the
Collateral Agent may reasonably request (in such form and executed as the Collateral Agent
may reasonably require) with a view to perfecting or improving its security over the
Investments or to registering any Investment in its name or the name of any nominee(s).

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	8.5	 	Investments: Exercise of Rights

	 	 	The Chargor shall not exercise any of its rights and powers in relation to any of the
Investments in any manner which would adversely affect the validity and enforceability of
the security created by this Debenture or cause an Enforcement Event to occur.

	9.	 	ACCOUNTS

	9.1	 	Accounts: Notification and Variation

	 	 	The Chargor, during the subsistence of this Debenture:

	 	9.1.1	 	shall promptly deliver to the Collateral Agent details of any material
change made to any Account which is maintained by it with any bank or financial
institution (other than with the Collateral Agent) and which is listed in Schedule 1
(Details of Accounts); and

	 	9.1.2	 	shall not unless permitted under the Principal Finance Documents permit or
agree to any variation of the rights attaching to any Account or close any Account
(other than an Account that is no longer used by the Chargor and which has a nil
balance) without the Collateral Agent’s prior written consent.

	9.2	 	Accounts: Operation Before Enforcement Event

	 	 	Subject to the terms of the Principal Finance Documents and Clauses 9 (Accounts) and 10
(Monetary Claims), if an Enforcement Event is not continuing the Chargor shall be entitled
to pay into, receive, withdraw or otherwise transfer any credit balance from time to time on
any Account, unless such withdrawal or transfer would cause an Enforcement Event to occur.

	9.3	 	Accounts: Operation After Enforcement Event

	 	 	If an Enforcement Event has occurred and is continuing the Chargor shall not be entitled to
receive, withdraw or otherwise transfer any credit balance from time to time on any Account
except with the prior consent of the Collateral Agent.

	9.4	 	Assigned Accounts

	 	9.4.1	 	If an Enforcement Event has occurred and is continuing, the Chargor shall
not be entitled to receive, withdraw or otherwise transfer any credit balance from time
to time on any Assigned Account except with the prior consent of the Collateral Agent
or as permitted pursuant to the terms of the Principal Finance Documents and Clause 10
(Monetary Claims).

	 	9.4.2	 	The Collateral Agent shall, if an Enforcement Event has occurred and is
continuing, be entitled without notice to exercise from time to time all rights, powers
and remedies held by it as assignee of the Assigned Accounts and to:

	 	(a)	 	demand and receive all and any monies due under or arising out
of each Assigned Account; and

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	 	(b)	 	exercise all such rights as the Chargor was then entitled to
exercise in relation to such Assigned Account or might, but for the terms of
this Debenture, exercise.

	9.5	 	Accounts: Application of Monies

	 	 	The Collateral Agent shall, if an Enforcement Event has occurred and is continuing, be
entitled without notice to apply, transfer or set-off any or all of the credit balances from
time to time on any Account in or towards the payment or other satisfaction of all or part
of the Secured Liabilities in accordance with Clause 17 (Application of Monies).

	10.	 	MONETARY CLAIMS

	10.1	 	Dealing with Monetary Claims

	 	 	Save as permitted under the Principal Finance Documents and subject to sub-clauses 10.2
(Release of Monetary Claims: Before Enforcement Event) and 10.3 (Release of Monetary Claims:
After Enforcement Event), the Chargor shall not, without the prior written consent of the
Collateral Agent:

	 	10.1.1	 	deal with the Monetary Claims except by getting in and realising them in a
prudent manner (on behalf of the Collateral Agent); or

	 	10.1.2	 	factor or discount any of the Monetary Claims or enter into any agreement
for such factoring or discounting,

	 	 	provided always that the proceeds of all Monetary Claims shall continue to be subject to the
floating charge created pursuant to Clause 3.3 (Floating Charge) and the terms of this
Debenture.

	10.2	 	Release of Monetary Claims: Before Enforcement Event

	 	 	If an Enforcement Event is not continuing, the proceeds of the realisation of the Monetary
Claims shall, subject to any restriction on the application of such proceeds contained in
this Debenture or in the Principal Finance Documents, be dealt with freely by the Chargor.

	10.3	 	Release of Monetary Claims: After Enforcement Event

	 	 	If an Enforcement Event has occurred and is continuing, the Chargor:

	 	10.3.1	 	shall pay the proceeds of those Monetary Claims into the Claims Accounts or
as the Collateral Agent may require (and such proceeds shall be held upon trust by the
Chargor for the Collateral Agent on behalf of the Secured Parties prior to such payment
in); and

	 	10.3.2	 	shall not, except with the prior written consent of the Collateral Agent,
be entitled to withdraw or otherwise transfer the proceeds of the realisation of any
Monetary Claims standing to the credit of any Claims Account.

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	11.	 	INSURANCES
	 
	11.1	 	Insurance: Undertakings

	 	 	The Chargor shall:

	 	11.1.1	 	keep the Charged Property insured in accordance with the terms of the
Principal Finance Documents;

	 	11.1.2	 	if required by the Collateral Agent after the occurrence of an Enforcement
Event and while it is continuing, subject to the Agreed Security Principles, cause each
insurance policy or policies relating to the Charged Property other than any Insurance
Policy which has been the subject of a Notice of Assignment pursuant to Clause 5
(Perfection of Lien) to contain (in form and substance reasonably satisfactory to the
Collateral Agent) an endorsement naming the Collateral Agent as sole loss payee in
respect of all claims until such time as the Collateral Agent notifies the insurer(s)
to the contrary;

	 	11.1.3	 	promptly pay all premiums and other monies payable under all its Insurance
Policies to the extent required under Section 5.02 of the Credit Agreement and any
other terms of the Principal Finance Documents, if an Enforcement Event has occurred
and is continuing, promptly upon the request of the Collateral Agent produce to the
Collateral Agent a copy of each policy and evidence (reasonably acceptable to the
Collateral Agent) of the payment of such sums; and

	 	11.1.4	 	if an Enforcement Event has occurred and is continuing, if required by the
Collateral Agent (but subject to the provisions of any lease of the Charged Property),
deposit all Insurance Policies relating to the Charged Property with the Collateral
Agent.

	11.2	 	Insurance: Default

	 	 	If the Chargor defaults in complying with Clause 11.1 (Insurance: Undertakings) within 10
Business Days of being notified of such failure to comply with Clause 11.1, the Collateral
Agent may (to the extent the Collateral Agent is aware of such occurrence or default) and
shall, if so instructed by the Applicable Representative, effect or renew any such insurance
on such terms, in such name(s) and in such amount(s) as it reasonably considers appropriate,
and all monies expended by the Collateral Agent in doing so shall be reimbursed by the
Chargor to the Collateral Agent promptly following demand and shall carry interest from the
date of payment by the Collateral Agent until reimbursed at the rate specified in Clause 2.2
(Interest on Demands), provided that the Collateral Agent shall not be required to effect or
renew any such insurance unless and until it shall have been (a) instructed by the
Applicable Representative and (b) indemnified and/or secured and/or pre-funded to its
satisfaction.

	11.3	 	Application of Insurance Proceeds

	 	11.3.1	 	All monies received under any Insurance Policies relating to the Charged
Property shall (subject to the rights and claims of any person having prior

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	 	 	 	rights to such monies), if an Enforcement Event is not continuing, be applied in
accordance with the terms of the Principal Finance Documents or, if not provided for
in the Principal Finance Documents, at the Chargor’s discretion.

	 	11.3.2	 	If an Enforcement Event has occurred and is continuing, the Chargor shall
hold such monies upon trust for the Collateral Agent pending payment to the Collateral
Agent for application in accordance with Clause 17 (Application of Monies) and the
Chargor waives any right it may have to require that any such monies are applied in
reinstatement of any part of the Charged Property.

	12.	 	UNDERTAKINGS
	 
	12.1	 	Intellectual Property

	 	 	In accordance with the Agreed Security Principles, the Chargor shall, in respect of any
Intellectual Property which is material to or required in connection with its businesses:

	 	12.1.1	 	take all such steps and do all such acts as may be reasonably necessary to
preserve and maintain the subsistence and the validity of any such Intellectual
Property; and

	 	12.1.2	 	not, except as permitted under the Principal Finance Documents, use or
permit any such Intellectual Property to be used in any way which may materially and
adversely affect its value.

	12.2	 	Accounts

	 	 	The Chargor shall ensure that any Account the subject of the security constituted by this
Debenture does not become a dormant account within the meaning of the Dormant Bank and
Building Society Accounts Act 2008.

	13.	 	ENFORCEMENT OF LIEN
	 
	13.1	 	Enforcement

	 	 	If an Enforcement Event has occurred and is continuing, or if a petition or application is
presented for the making of an administration order in relation to the Chargor, or if any
person who is entitled to do so gives written notice of its intention to appoint an
administrator of the Chargor or files such a notice with the court or is requested to do so
by the Chargor, save to the extent that such petition, application, notice or filing is not
made by a member of the Group or any director of any member of the Group and is frivolous or
vexatious and is stayed, dismissed or withdrawn within 4 Business Days of such petition,
application, notice or filing being made the security created by or pursuant to this
Debenture is immediately enforceable and the Collateral Agent may, without notice to the
Chargor or prior authorisation from any court, in its absolute discretion and shall if so
instructed by the Applicable Representative:

	 	13.1.1	 	enforce all or any part of that security (at the times, in the manner and
on the terms it thinks fit) and take possession of and hold or dispose of all or any
part of the Charged Property; and

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	 	13.1.2	 	whether or not it has appointed a Receiver, exercise all or any of the
powers, authorities and discretions conferred by the Law of Property Act 1925 (as
varied or extended by this Debenture) on mortgagees and by this Debenture on any
Receiver or otherwise conferred by law on mortgagees or Receivers.

	13.2	 	No Liability as Mortgagee in Possession

	 	 	Neither the Collateral Agent nor any Receiver shall be liable to account as a mortgagee in
possession in respect of all or any part of the Charged Property or be liable for any loss
upon realisation or for any neglect, default or omission in connection with the Charged
Property to which a mortgagee or mortgagee in possession might otherwise be liable.

	13.3	 	Right of Appropriation

	 	 	To the extent that any of the Charged Property constitutes “financial collateral” and this
Debenture and the obligations of the Chargor hereunder constitute a “security financial
collateral arrangement” (in each case as defined in, and for the purposes of, the Financial
Collateral Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226) (the “Regulations”) the
Collateral Agent shall have the right if an Enforcement Event has occurred and is continuing
to appropriate all or any part of such financial collateral in or towards discharge of the
Secured Liabilities. For this purpose, the parties agree that the value of such financial
collateral so appropriated shall be (a) in the case of cash, the amount standing to the
credit of each of the Accounts, together with any accrued but unposted interest, at the time
the right of appropriation is exercised; and (b) in the case of Investments and/or Shares,
the market price of such Investments and/or Shares determined by the Collateral Agent by
reference to a public index or by such other process as the Collateral Agent may select,
including independent valuation. In each case, the parties agree that the method of
valuation provided for in this Debenture shall constitute a commercially reasonable method
of valuation for the purposes of the Regulations.

	13.4	 	Effect of Moratorium

	 	 	The Collateral Agent shall not be entitled to exercise its rights under Clause 14.1
(Enforcement) or Clause 4 (Crystallisation of Floating Charge) where the right arises as a
result of an Enforcement Event occurring solely due to any person obtaining or taking steps
to obtain a moratorium pursuant to Schedule A1 of the Insolvency Act 1986.

	14.  	 	EXTENSION AND VARIATION OF THE LAW OF PROPERTY ACT 1925

	14.1	 	Extension of Powers

	 	 	The power of sale or other disposal conferred on the Collateral Agent and on any Receiver by
this Debenture shall operate as a variation and extension of the statutory power of sale
under Section 101 of the Law of Property Act 1925 and such power shall arise (and the
Secured Liabilities shall be deemed due and payable for that purpose) on execution of this
Debenture.

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	14.2	 	Restrictions

	 	 	The restrictions contained in Sections 93 and 103 of the Law of Property Act 1925 shall not
apply to this Debenture or to the exercise by the Collateral Agent of its right to
consolidate all or any of the security created by or pursuant to this Debenture with any
other security in existence at any time or to its power of sale, which powers may be
exercised by the Collateral Agent without notice to the Chargor on or at any time if an
Enforcement Event has occurred and is continuing.

	14.3	 	Power of Leasing

	 	 	The statutory powers of leasing may be exercised by the Collateral Agent at any time if an
Enforcement Event has occurred and is continuing and the Collateral Agent and any Receiver
may make any lease or agreement for lease, accept surrenders of leases and grant options on
such terms as it shall think fit, without the need to comply with any restrictions imposed
by Sections 99 and 100 of the Law of Property Act 1925.

	15.  	 	APPOINTMENT OF RECEIVER OR ADMINISTRATOR

	15.1	 	Appointment and Removal

	 	 	If an Enforcement Event has occurred and is continuing or if a petition or application is
presented for the making of an administration order in relation to the Chargor, or if any
person who is entitled to do so gives written notice of its intention to appoint an
administrator of the Chargor or files such a notice with the court or is requested to do so
by the Chargor, save to the extent that such petition, application, notice or filing is not
made by a member of the Group or any director of any member of the Group and is frivolous or
vexatious and is stayed, dismissed or withdrawn within 4 Business Days of such petition,
application, notice or filing being made the Collateral Agent may by deed or otherwise
(acting through an authorised officer of the Collateral Agent), without prior notice to the
Chargor:

	 	15.1.1	 	appoint one or more persons to be a Receiver of the whole or any part of
the Charged Property;
	 
	 	15.1.2	 	remove (so far as it is lawfully able) any Receiver so appointed;
	 
	 	15.1.3	 	appoint another person(s) as an additional or replacement Receiver(s); or
	 
	 	15.1.4	 	appoint one or more persons to be an administrator of the Chargor.

	15.2	 	Capacity of Receivers

	 	 	Each person appointed to be a Receiver pursuant to Clause 15.1 (Appointment and Removal)
shall be:

	 	15.2.1	 	entitled to act individually or together with any other person appointed or
substituted as Receiver;

	 	15.2.2	 	for all purposes shall be deemed to be the agent of the Chargor which shall
be solely responsible for his acts, defaults and liabilities and for the payment of

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	 	 	 	his remuneration and no Receiver shall at any time act as agent for the Collateral
Agent; and

	 	15.2.3	 	entitled to remuneration for his services at a rate to be fixed by the
Collateral Agent from time to time (without being limited to the maximum rate specified
by the Law of Property Act 1925).

	15.3	 	Statutory Powers of Appointment

	 	 	The powers of appointment of a Receiver shall be in addition to all statutory and other
powers of appointment of the Collateral Agent under the Law of Property Act 1925 (as
extended by this Debenture) or otherwise and such powers shall remain exercisable from time
to time by the Collateral Agent in respect of any part of the Charged Property.

	16.  	 	POWERS OF RECEIVER

	 	 	Every Receiver shall (subject to any restrictions in the instrument appointing him but
notwithstanding any winding-up or dissolution of the Chargor) have and be entitled to
exercise, in relation to the Charged Property (and any assets of the Chargor which, when got
in, would be Charged Property) in respect of which he was appointed, and as varied and
extended by the provisions of this Debenture (in the name of or on behalf of the Chargor or
in his own name and, in each case, at the cost of the Chargor):

	 	16.1.1	 	all the powers conferred by the Law of Property Act 1925 on mortgagors and
on mortgagees in possession and on receivers appointed under that Act;

	 	16.1.2	 	all the powers of an administrative receiver set out in Schedule 1 to the
Insolvency Act 1986 (whether or not the Receiver is an administrative receiver);

	 	16.1.3	 	all the powers and rights of an absolute owner and power to do or omit to
do anything which the Chargor itself could do or omit to do; and

	 	16.1.4	 	the power to do all things (including bringing or defending proceedings in
the name or on behalf of the Chargor) which seem to the Receiver to be incidental or
conducive to (a) any of the functions, powers, authorities or discretions conferred on
or vested in him or (b) the exercise of the Collateral Rights (including realisation of
all or any part of the Charged Property) or (c) bringing to his hands any assets of the
Chargor forming part of, or which when got in would be, Charged Property.

	17.  	 	APPLICATION OF MONIES

	 	 	All monies received or recovered by the Collateral Agent or any Receiver pursuant to this
Debenture or the powers conferred by it shall (subject to the claims of any person having
prior rights thereto and by way of variation of the provisions of the Law of Property Act
1925) be applied in accordance with Section 2.01 of the First Lien Intercreditor Agreement.

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	18.  	 	PROTECTION OF PURCHASERS
	 
	18.1	 	Consideration

	 	 	The receipt of the Collateral Agent or any Receiver shall be conclusive discharge to a
purchaser and, in making any sale or disposal of any of the Charged Property or making any
acquisition, the Collateral Agent or any Receiver may do so for such consideration, in such
manner and on such terms as it thinks fit.

	18.2	 	Protection of Purchasers

	 	 	No purchaser or other person dealing with the Collateral Agent or any Receiver shall be
bound to inquire whether the right of the Collateral Agent or such Receiver to exercise any
of its powers has arisen or become exercisable or be concerned with any propriety or
regularity on the part of the Collateral Agent or such Receiver in such dealings.

	19.  	 	POWER OF ATTORNEY

	19.1	 	Appointment and Powers

	 	 	The Chargor by way of security irrevocably appoints the Collateral Agent and any Receiver
severally to be its attorney and in its name, on its behalf and as its act and deed to
execute, deliver and perfect all documents and do all things which the attorney may consider
to be required or desirable for:

	 	19.1.1	 	carrying out any obligation imposed on the Chargor by this Debenture or any
other agreement binding on the Chargor to which the Collateral Agent is a party
(including the execution and delivery of any deeds, charges, assignments or other
security and any transfers of the Charged Property); and

	 	19.1.2	 	enabling the Collateral Agent and any Receiver to exercise, or delegate the
exercise of, any of the rights, powers and authorities conferred on them by or pursuant
to this Debenture or by law (including, if an Enforcement Event has occurred and is
continuing, the exercise of any right of a legal or beneficial owner of the Charged
Property),

	 	 	 	provided always that the Collateral Agent may only be entitled to exercise the
powers conferred upon it by the Chargor under this Clause 19.1 if:

	 	(a)	 	an Enforcement Event has occurred and is continuing; and/or

	 	(b)	 	the Collateral Agent has received notice from the Applicable
Representative, the Loan Parties’ Agent and/or the Chargor that the Chargor has
failed to comply with a further assurance or perfection obligation within 10
Business Days of being notified of that failure (with a copy of that notice
being sent to the Loan Parties’ Agent),

	 	 	 	provided further that the Collateral Agent shall not be obliged to exercise the
powers conferred upon it by the Chargor under this Clause 19.1 unless and until it
shall have been (a) instructed to do so by the Applicable Representative and (b)
indemnified and/or secured and/or prefunded to its satisfaction.

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	19.2	 	Ratification

	 	 	The Chargor shall ratify and confirm all things done and all documents executed by any
attorney in the exercise or purported exercise of all or any of his powers.

	20.  	 	EFFECTIVENESS OF LIEN
	 
	20.1	 	Continuing Lien

	 	20.1.1	 	The Lien created by or pursuant to this Debenture shall remain in full
force and effect as a continuing security for the Secured Liabilities unless and until
discharged by the Collateral Agent.

	 	20.1.2	 	No part of the security from time to time intended to be constituted by the
Debenture will be considered satisfied or discharged by any intermediate payment,
discharge or satisfaction of the whole or any part of the Secured Liabilities.

	20.2	 	Cumulative Rights

	 	 	The security created by or pursuant to this Debenture and the Collateral Rights shall be
cumulative, in addition to and independent of every other security which the Collateral
Agent or any Secured Party may at any time hold for the Secured Liabilities or any other
obligations or any rights, powers and remedies provided by law. No prior security held by
the Collateral Agent (whether in its capacity as security trustee or otherwise) or any of
the other Secured Parties over the whole or any part of the Charged Property shall merge
into the security constituted by this Debenture.

	20.3	 	No Prejudice

	 	 	The security created by or pursuant to this Debenture and the Collateral Rights shall not be
prejudiced by any unenforceability or invalidity of any other agreement or document or by
any time or indulgence granted to the Chargor or any other person, or the Collateral Agent
(whether in its capacity as security trustee or otherwise) or any of the other Secured
Parties or by any variation of the terms of the trust upon which the Collateral Agent holds
the security or by any other thing which might otherwise prejudice that security or any
Collateral Right.

	20.4	 	Remedies and Waivers

	 	 	No failure on the part of the Collateral Agent to exercise, or any delay on its part in
exercising, any Collateral Right shall operate as a waiver of that Collateral Right, nor
shall any single or partial exercise of any Collateral Right preclude any further or other
exercise of that or any other Collateral Right.

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	20.5	 	No Liability

	 	 	None of the Collateral Agent, its nominee(s) or any Receiver or Delegate shall be liable by
reason of (a) taking any action permitted by this Debenture or (b) any neglect or default in
connection with the Charged Property or (c) taking possession of or realising all or any
part of the Charged Property, except to the extent provided in the Principal Finance
Documents.

	20.6	 	Partial Invalidity

	 	 	If, at any time, any provision of this Debenture is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions of this Debenture nor of such
provision under the laws of any other jurisdiction shall in any way be affected or impaired
thereby and, if any part of the security intended to be created by or pursuant to this
Debenture is invalid, unenforceable or ineffective for any reason, that shall not affect or
impair any other part of the security.

	20.7	 	Waiver of defences

	 	 	The obligations of the Chargor under this Debenture and the Collateral Rights will not be
affected by an act, omission, matter or thing which, but for this Clause, would reduce,
release or prejudice any of its obligations under this Debenture (without limitation and
whether or not known to it or any Secured Party) including:

	 	20.7.1	 	any time, waiver or consent granted to, or composition with, any Loan Party
or other person;

	 	20.7.2	 	the release of any Loan Party or any other person under the terms of any
composition or arrangement with any creditor of any member of the Group;

	 	20.7.3	 	the taking, variation, compromise, exchange, renewal or release of, or
refusal or neglect to perfect, take up or enforce, any rights against, or security over
assets of, any Loan Party or other person or any non-presentation or non-observance of
any formality or other requirement in respect of any instrument or any failure to
realise the full value of any security;

	 	20.7.4	 	any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of any Loan Party or any other person;

	 	20.7.5	 	any amendment, novation, supplement, extension (whether of maturity or
otherwise) or restatement (in each case however fundamental and of whatsoever nature,
and whether or not more onerous) or replacement of a Loan Document or any other
document or security or of the Secured Liabilities;

	 	20.7.6	 	any unenforceability, illegality or invalidity of any obligation of any
person under any Loan Documents or any other document or security or of the Secured
Liabilities; or

	 	20.7.7	 	any insolvency or similar proceedings.

- 22 -

 

	20.8	 	Immediate recourse

	 	 	The Chargor waives any right it may have of first requiring any Secured Party (or any
trustee or agent on its behalf) to proceed against or enforce any other rights or security
or claim payment from any person before claiming from the Chargor under this Debenture.
This waiver applies irrespective of any law or any provision of this Debenture to the
contrary.

	20.9	 	Deferral of Rights

	 	 	Until such time as the Secured Liabilities have been discharged in full, the Chargor will
not exercise any rights which it may have by reason of performance by it of its obligations
under this Debenture:

	 	20.9.1	 	to be indemnified by any Loan Party;

	 	20.9.2	 	to claim any contribution from any guarantor of any Loan Party’s
obligations under this Debenture; and/or

	 	20.9.3	 	to take the benefit (in whole or in part and whether by way of subrogation
or otherwise) of any rights of the Secured Parties under the Loan Documents or of any
other guarantee or security taken pursuant to, or in connection with, this Debenture by
any Secured Party.

	21.  	 	RELEASE OF LIEN

	21.1	 	Redemption of Lien

	 	 	The security constituted by this Debenture shall be released, reassigned and cancelled:

	 	21.1.1	 	by the Collateral Agent (acting on the instructions of the Applicable
Representative) at the request and cost of the Chargor, upon the Secured Liabilities
being irrevocably paid or discharged in full and none of the Secured Parties being
under any further actual or contingent obligation to make advances or provide other
financial accommodation to the Chargor or any other person under any of the Loan
Documents; or

	 	21.1.2	 	in accordance with, and to the extent required by, the Intercreditor
Arrangements (to the extent it is possible to give effect to such arrangements under
English law).

	21.2	 	Avoidance of Payments

	 	 	If the Collateral Agent reasonably considers that any amount paid or credited to any Secured
Party is capable of being avoided or reduced by virtue of any bankruptcy, insolvency,
liquidation or similar laws the liability of the Chargor under this Debenture and the
security constituted by this Debenture shall continue and such amount shall not be
considered to have been irrevocably paid.

- 23 -

 

	22.	 	SUBSEQUENT AND PRIOR LIEN
	 
	22.1	 	Subsequent Lien

	 	 	If the Collateral Agent (acting in its capacity as security trustee or otherwise) or any of
the other Secured Parties at any time receives or is deemed to have received notice of any
subsequent Lien affecting all or any part of the Charged Property or any assignment or
transfer of the Charged Property which in either case is prohibited by the terms of this
Debenture or the Principal Finance Documents, all payments thereafter by or on behalf of the
Chargor to the Collateral Agent (whether in its capacity as security trustee or otherwise)
or any of the other Secured Parties shall be treated as having been credited to a new
account of the Chargor and not as having been applied in reduction of the Secured
Liabilities as at the time when the Collateral Agent received such notice.

	22.2	 	Prior Lien

	 	 	In the event of any action, proceeding or step being taken to exercise any powers or
remedies conferred by any prior ranking Lien or upon the exercise by the Collateral Agent or
any Receiver or any Delegate of any power of sale under this Debenture the Collateral Agent
may redeem that prior Lien or procure the transfer of it to itself. The Collateral Agent
may settle and agree the accounts of the prior Lien and any accounts so settled and agreed
will be conclusive and binding on the Chargor. All principal monies, interest, costs,
charges and expenses of and incidental to any redemption or transfer will be paid by the
Chargor to the Collateral Agent on demand.

	23.	 	ASSIGNMENT

	 	 	The Collateral Agent may assign and transfer all or any of its rights and obligations under
this Debenture to facilitate the performance of its role as Collateral Agent under the Loan
Documents in accordance with the Intercreditor Arrangements. Subject to Section 9.16 of the
Credit Agreement and the terms of the Principal Finance Documents, the Collateral Agent
shall be entitled to disclose such information concerning the Chargor and this Debenture as
the Collateral Agent considers appropriate to any actual or proposed direct or indirect
successor or to any person to whom information may be required to be disclosed by any
applicable law.

	24.	 	INDEMNITY

	 	 	To the extent set out in Section 4.11 of the First Lien Intercreditor Agreement, the Chargor
shall, notwithstanding any release or discharge of all or any part of the security,
indemnify the Collateral Agent, its agents, attorneys, any Delegate and any Receiver against
any action, proceeding, claims, losses, liabilities, expenses, demands, taxes, and costs
which it may sustain as a consequence of any breach by the Chargor of the provisions of this
Debenture, the exercise or purported exercise of any of the rights and powers conferred on
them by this Debenture or otherwise relating to the Charged Property.

- 24 -

 

	25.  	 	PAYMENTS FREE OF DEDUCTION

	 	 	Section 2.20 (Taxes) of the Credit Agreement applies to this Debenture, save that, for the
purposes of this Debenture only, the references in Section 2.20 (Taxes) of the Credit
Agreement to “a Loan Party”, “that Loan Party” and “each Loan Party” shall be replaced with
“the Chargor”.

	26.  	 	CURRENCY INDEMNITY

	26.1	 	The Secured Liabilities shall be paid in the currency in which it is denominated at the
relevant time, unless the Loan Documents provide otherwise.

	26.2	 	If any Secured Liabilities is received from the Chargor in a currency (“first currency”)
other than the currency (“second currency”) in which it is payable (whether as a result of
obtaining or enforcing an order or judgment, the dissolution of any person or otherwise), the
amount received shall only satisfy the Chargor’s obligation to pay its Secured Liabilities to
the extent of the amount in the second currency which the relevant Secured Party is able, in
accordance with its usual practice, to purchase with the amount received in the first currency
on the date of that receipt (or, if it is not possible to make that purchase on that date, on
the first date upon which it is possible to do so).

	26.3	 	Subject to Section 9.05 of the Credit Agreement and the terms of the Principal Finance
Documents, the Chargor indemnifies each Secured Party against:

	 	26.3.1	 	any loss sustained by it as a result of the amount purchased by it in the
second currency pursuant to Clause 26.2 above being less than the amount due; and

	 	26.3.2	 	all costs and expenses properly incurred by it in purchasing the second
currency,

	 	 	in respect of any Secured Liabilities received from the Chargor.

	26.4	 	The Chargor shall pay to the relevant Secured Party, promptly upon demand, in the currency
stipulated, all amounts payable pursuant to such indemnity.

	27.	 	DISCRETION AND DELEGATION

	27.1	 	Discretion

	 	 	Any liberty or power which may be exercised or any determination which may be made under
this Debenture by the Collateral Agent or any Receiver may, subject to the terms and
conditions of the Intercreditor Arrangements and to any requirement of reasonableness
required under this Debenture, be exercised or made in its absolute and unfettered
discretion without any obligation to give reasons.

	27.2	 	Delegation

	 	 	Subject to Section 4.05 of the First Lien Intercreditor Agreement (to the extent permitted
by English law), each of the Collateral Agent and any Receiver shall have full power to
delegate (either generally or specifically) the powers, authorities and discretions
conferred on it by this Debenture (including the power of attorney) on

- 25 -

 

	 	 	such terms and conditions as it shall see fit which delegation shall not preclude either the
subsequent exercise, any subsequent delegation or any revocation of such power, authority or
discretion by the Collateral Agent or the Receiver itself.

	28.	 	PERPETUITY PERIOD

	 	 	The perpetuity period under the rule against perpetuities, if applicable to this Debenture,
shall be the period of eighty years from the date of this Debenture.

	29.	 	GOVERNING LAW

	 	 	This Debenture and any non-contractual obligations arising out of or in connection with it
are governed by English law.

	30.	 	JURISDICTION

	30.1	 	English Courts

	 	 	The courts of England have exclusive jurisdiction to settle any dispute (a “Dispute”)
arising out of, or connected with this Debenture (including a dispute regarding the
existence, validity or termination of this Debenture or the consequences of its nullity) or
any non-contractual obligations arising out of or in connection with this Debenture.

	30.2	 	Convenient Forum

	 	 	The parties agree that the courts of England are the most appropriate and convenient courts
to settle Disputes between them and, accordingly, that they will not argue to the contrary.

	30.3	 	Exclusive Jurisdiction

	 	 	This Clause 0 (Jurisdiction) is for the benefit of the Collateral Agent only. As a result
and notwithstanding Clause 30.1 (English Courts), it does not prevent the Collateral Agent
from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the
extent allowed by law the Collateral Agent may take concurrent proceedings in any number of
jurisdictions.

	30.4	 	Counterparts

	 	 	This Debenture may be executed in any number of counterparts, and this has the same effect
as if the signatures on the counterparts were on a single copy of this Debenture.

THIS DEBENTURE has been signed on behalf of the Collateral Agent and executed as a deed by the
Chargor and is delivered by it on the date specified above.

- 26 -

 

	 	 	

SCHEDULE 1

DETAILS OF ACCOUNTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bank name	 	Address	 	 	Postcode	 	 	City	 	 	Currency	 	 	Account No.	 	 	Type of account	 	 	IBAN	 	 	SWIFT	 	 	SortCode	 
	Citibank
	 	Citigroup Centre,	 	E14 5LB	 	London	 	GBP	 	 	[_________]	 	 	Current Account	 	[________________]	 	CITI GB2L	 	 	18-50-08	 
	 
	 	Canary Wharf	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Citibank
	 	Citigroup Centre,	 	E14 5LB	 	London	 	USD	 	 	[_________]	 	 	Current Account	 	[________________]	 	CITI GB2L	 	 	18-50-08	 
	 
	 	Canary Wharf	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Citibank
	 	Citigroup Centre,	 	E14 5LB	 	London	 	EUR	 	 	[_________]	 	 	Current Account	 	[________________]	 	CITI GB2L	 	 	18-50-08	 
	 
	 	Canary Wharf	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

- 27 -

 

SCHEDULE 2

FORM OF NOTICE OF ASSIGNMENT OF INSURANCE

	 	 	 

	To: [Insurer]
	 	 
	 
	 	 
	 

	 	Date: [•]

Dear Sirs,

We hereby give you notice that we have assigned to The Bank of New York Mellon (the “Collateral
Agent”) pursuant to a debenture (the “Debenture”) entered into by us in favour of the Collateral
Agent dated [•] all our right, title and interest in and to the proceeds of [insert details of
relevant insurance policy] (the “Policy of Insurance”). All references to the Collateral Agent in
this notice include any person or entity appointed as successor to The Bank of New York Mellon as
Collateral Agent.

With effect from your receipt of this notice we instruct you to:

	1.	 	make all payments and claims under or arising from the Policy of Insurance to the Collateral
Agent [insert an account number if required] or to its order as it may specify in writing from
time to time;
	 
	2.	 	note the interest of the Collateral Agent on the Policy of Insurance; and
	 
	3.	 	disclose to the Collateral Agent, without further approval from us, such information
regarding the Policy of Insurance as the Collateral Agent may from time to time request and to
send it copies of all notices issued by you under the Policy of Insurance.

With effect from your receipt of this notice all rights, interests and benefits whatsoever accruing
to or for the benefit of ourselves arising from the Policy of Insurance (including all rights to
compel performance) belong to and are exercisable by the Collateral Agent.

Please acknowledge receipt of this notice by signing the acknowledgement on the enclosed copy
letter and returning the same to the Collateral Agent at [•] marked for the attention of [•].

Yours faithfully,

for and on behalf of

BACO Consumer Products Limited

- 28 -

 

[On copy only]

To: [•]

We acknowledge receipt of a notice in the terms set out above and confirm that we have not received
notice of any previous assignments or charges of or over any of the rights, title and interests and
benefits referred to in such notice and that we will comply with the terms of that notice.

We further confirm that no amendment or termination of the Policy of Insurance shall be effective
unless we have given the Collateral Agent thirty days written notice of such amendment or
termination.

For and on behalf of [•]

By:

Dated:

- 29 -

 

SCHEDULE 3

FORM OF NOTICE OF ASSIGNMENT OF ACCOUNT

	 	 	 

	To: [Account Bank]
	 	 
	 
	 	 
	 

	 	Date: [•]

Dear Sirs,

We hereby give you notice that, pursuant to an English law debenture (the “Debenture”) dated [•]
and made between ourselves and The Bank of New York Mellon (the “Collateral Agent”), we have
assigned and charged to the Collateral Agent all of our right, title and interest in and to account
number [•], account name [•] (including any renewal or redesignation of such account) and all
monies standing to the credit of that account from time to time (the “Account”). All references to
the Collateral Agent in this notice include any person or entity appointed as successor to The Bank
of New York Mellon as Collateral Agent.

You are hereby instructed that, following your receipt of any notice from the Collateral Agent that
an Enforcement Event (as defined in the Debenture) has occurred and is continuing:

	(a)	 	any existing payment instructions affecting the Account shall immediately be terminated and
all payments and communications in respect of the Account shall from that time onwards be made
to the Collateral Agent or to its order (with a copy to the Chargor); and
	 
	(b)	 	all rights, interests and benefits whatsoever accruing to or for the benefit of ourselves
arising from the Account shall belong to the Collateral Agent.

For the avoidance of doubt, unless and until you receive notice from the Collateral Agent that an
Enforcement Event has occurred and is continuing, the Account shall be operated as normal in
accordance with the account mandate that currently exists.

Please accept this notice by signing the enclosed acknowledgement and returning it to the
Collateral Agent at [•] marked for the attention of [•].

Yours faithfully

 

for and on behalf of

BACO Consumer Products Limited

- 30 -

 

[on copy only]

To: [•]

Date: [•]

At the request of the Collateral Agent and BACO Consumer Products Limited we acknowledge receipt of
the notice of assignment and charge, on the terms attached, in respect of the Account (as described
in those terms). We confirm that:

	(a)	 	the balance standing to the Account at today’s date is [•], no fees or periodic charges are
payable in respect of the Account and there are no restrictions on (a) the payment of the
credit balance on the Account [(except, in the case of a time deposit, the expiry of the
relevant period)] or (b) the assignment of the Account to the Collateral Agent or any third
party;
	 
	(b)	 	we have not received notice of any previous and continuing assignments of, charges over or
trusts in respect of, the Account;
	 
	(c)	 	following receipt by ourselves of notice from the Collateral Agent that an Enforcement Event
(as defined in the Debenture) has occurred and is continuing, we will not without the
Collateral Agent’s consent (a) exercise any right of combination, consolidation or set off
which we may have in respect of the Account or (b) amend or vary any rights attaching to the
Account;
	 
	(d)	 	following receipt by ourselves of notice from the Collateral Agent that an Enforcement Event
has occurred and is continuing, we will act only in accordance with the instructions given by
persons authorised by the Collateral Agent and we shall send all statements and other notices
given by us relating to the Account to the Collateral Agent; and
	 
	(e)	 	we agree that we will not, in accordance with the Dormant Bank and Building Society Accounts
Act 2008, take any steps to transfer the balance standing to the credit of the Account to the
reclaim fund without the Collateral Agent’s prior written consent.

For and on behalf of [•]

By:

- 31 -

 

SIGNATURE PAGE FOR

BACO CONSUMER PRODUCTS LIMITED DEBENTURE

	 	 	 	 	 

	The Chargor
	 	 	 	 
	 
	 	 	 	 
	Signed as a deed by

	 	 	)	 
	 

	 	 	)	 
	as attorney for

	 	 	)	 
	BACO Consumer Products Limited

	 	 	)	 
	in the presence of:

	 	 	)	 
	 

	 	CINDI LEFARI___________________

	 	 	 
	/s/ Chiara Brophy	 	Signature of witness
	CHIARA BROPHY	 	Name of witness
	LEVEL 25	 	Address of witness
	2 PARK STREET	 	 
	SYDNEY	 	 
	LAWYER	 	Occupation of witness

- 32 -

 

The Collateral Agent

	 	 	 

	Signed by
	 	)
	THE BANK OF NEW YORK MELLON
	 	)
	 
	 	)

By: /s/ MAKSIM GENKIN

Name: MAKSIM GENKIN

Address: 101 BARCLAY STREET, 4E, NY NY, 10286

Fax: 212-815 5366

Attention: INTL. COPORATE TRUST

- 33 -exv4w131

EXHIBIT 4.131

 

PLEDGE AGREEMENT OVER INVENTORY, EQUIPMENT AND OTHER ASSETS

between

The Bank of New York Mellon 

as Collateral Agent for the benefit of the Secured Parties under the First Lien Intercreditor

Agreement

and

Closure Systems International (Brazil) Sistemas de Vedação Ltda.

as Grantor

 

Dated as of

January 29, 2010

 

 

“The taking of this document or any certified copy of it or any document which constitutes
substitute documentation for it, or any document which includes written confirmations or references
to it, into Austria as well as printing out any e-mail communication which refers to any Loan
Document in Austria or sending any e-mail communication to which a pdf scan of this document is
attached to an Austrian addressee or sending any e-mail communication carrying an electronic or
digital signature which refers to any Loan Document to an Austrian addressee may cause the
imposition of Austrian stamp duty. Accordingly, keep the original document as well as all certified
copies thereof and written and signed references to it outside of Austria and avoid printing out
any email communication which refers to any Loan Document in Austria or sending any e-mail
communication to which a pdf scan of this document is attached to an Austrian addressee or sending
any e-mail communication carrying an electronic or digital signature which refers to any Loan
Document to an Austrian addressee.”

 

 

PLEDGE AGREEMENT OVER INVENTORY, EQUIPMENT AND OTHER ASSETS

     This Pledge Agreement over Inventory, Equipment and Other Assets (the “Agreement”) is
made as of January 29, 2010, by and among:

     (a) The Bank of New York Mellon, a financial institution duly organized and existing
under the laws of the State of New York, with its registered office at, One Wall Street, New York,
New York, acting exclusively in the capacity as collateral agent of and for the benefit of the
Secured Parties under the First Lien Intercreditor Agreement (together with its successors and
permitted assignees in such capacity, the “Collateral Agent”); and

     (b) Closure Systems International (Brazil) Sistemas de Vedação Ltda., a limited
liability company duly organized and existing in accordance with the laws of Brazil, with its
registered office in the City of Barueri, State of São Paulo, at Alameda Araguaia, no 1.819-1.889,
Sítio Tamboré, enrolled with the Brazilian Taxpayers Roll of the Ministry of Finance (CNPJ/MF)
under no 09.074.885/0001-48, herein represented in accordance with its Charter Documents (together
with its successors and permitted assignees, the “Grantor”);

     WHEREAS, the Grantor is the legal owner of certain raw materials, industrialized products and
other goods which are regularly kept in its inventory and certain equipment and assets; and

     WHEREAS, it is a requirement under the Credit Agreement (as defined below) that the parties
enter into this Agreement.

     NOW, THEREFORE, in consideration of the foregoing premises and mutual covenants contained
herein, the parties hereto agree as follows:

     1. Defined Terms.

          (a) Capitalized terms used and not otherwise defined in this Agreement are used herein and in
any notice given under this Agreement with the same meanings ascribed to such terms in the First
Lien Intercreditor Agreement. All terms defined in this Agreement shall have the defined meanings
contained herein when used in any certificate or other document made or delivered pursuant hereto
unless otherwise defined therein.

          (b) All references to the Collateral Agent in this Agreement shall be construed as references
to the Collateral Agent acting as representative of the Secured Parties.

“Agreed Security Principles” has the meaning it is given in the Credit Agreement and the
Senior Secured Note Indenture and to the extent of any inconsistency the meaning it is given in the
Credit Agreement shall prevail.

“Credit Agreement” means the Credit Agreement dated as of November 5, 2009, among Reynolds
Group Holdings Inc., Reynolds Consumer Products Holdings Inc., SIG Euro Holding AG & Co KGaA,
Closure Systems International Holdings Inc., Closure Systems International

2

 

B.V. and SIG Austria
Holding GmbH as borrowers, Reynolds Group Holdings Limited, the lenders from time to time party
thereto and Credit Suisse AG (formerly Credit Suisse), as administrative agent, as amended,
extended, restructured, renewed, novated, supplemented, restated, refunded, replaced or modified
from time to time.

“Enforcement Event” means an “Event of Default” under, and as defined in, the First Lien
Intercreditor Agreement.

“First Lien Intercreditor Agreement” means the First Lien Intercreditor Agreement dated as
of November 5, 2009, among the Collateral Agent, The Bank of New York Mellon, as trustee under the
Senior Secured Note Indenture, Credit Suisse AG (formerly Credit Suisse), as administrative agent
under the Credit Agreement, and the Loan Parties, as amended, novated, supplemented, restated or
modified from time to time.

“Intercreditor Arrangements” means the First Lien Intercreditor Agreement and any other
document that is designated by the Loan Parties  ́ Agent and the Collateral Agent as an intercreditor
agreement, in each case as amended, novated, supplemented, restated, replaced or modified from time
to time.

“Issuers” shall mean the “Issuers” under, and as defined in, the Senior Secured Note
Indenture, including their successors in interest.

“Lien” shall have the meaning it is given in the First Lien Intercreditor Agreement.

“Loan Documents” shall mean the “Credit Documents” under, and as defined in, the First Lien
Intercreditor Agreement and any other document designated by the Loan Parties’ Agent and the
Collateral Agent as a Loan Document.

“Loan Parties” shall mean the “Grantors” under, and as defined in, the First Lien
Intercreditor Agreement.

“Loan Parties’ Agent” shall mean Reynolds Group Holdings Limited (formerly known as Rank
Group Holdings Limited).

“Person” means any natural person, corporation, limited liability company, partnership,
joint venture, association, trust or unincorporated organization, governmental authority or any
other legal entity, whether acting in an individual, fiduciary or other capacity.

“Principal Finance Documents” means the Credit Agreement, the Senior Secured Note
Indenture, the Intercreditor Arrangements and any Additional Agreement.

“Secured Obligations” means all present and future obligations and liabilities (whether
actual or contingent and whether owed jointly or severally or in any other capacity whatsoever) of
each Loan Party and each grantor of a security interest to the Secured Parties (or any of them)
under each or any of the Loan Documents, together with all costs, charges and expenses incurred by

3

 

any Secured Party in connection with the protection, preservation or enforcement of its respective
rights under the Loan Documents or any other document evidencing or securing any such liabilities.

“Secured Parties” shall mean the “Secured Parties” under, and as defined in, the First Lien
Intercreditor Agreement.

“Senior Secured Note Indenture” means the indenture dated as of November 5, 2009, among the
Issuers, the Note Guarantors (as defined therein) and The Bank of New York Mellon, as trustee,
principal paying agent, transfer agent and registrar, as amended, extended, restructured, renewed,
refunded, novated, supplemented, restated, replaced or modified from time to time.

“Total Assets” means, on any day in relation to the Grantor, all of the assets of the
Grantor on that day determined by reference to the Grantor’s assets register.

     2. Pledge; Grant of Security Interest.

          (a) In order to secure the full and prompt payment and performance when due (whether at the
stated maturity, by acceleration or otherwise) of all the Secured Obligations, which for the
purposes of Article 1,424 of Brazilian Federal Law number 10,406 of January 10, 2002
(“Brazilian Civil Code”), are described in Schedule A hereto (and which the Grantor
hereby acknowledges and recognizes for all legal purposes), and all of the obligations of the
Grantor hereunder, the Grantor hereby pledges to the Collateral Agent, for the benefit of the
Secured Parties, hereby represented by the Collateral Agent, pursuant to the provisions of Articles
1,431 et seq. (including Article 1,447) of the Brazilian Civil Code, the following,
whether now existing or hereafter acquired:

     (i) all of the Grantor’s inventory of raw materials, industrialized products and other goods,
comprised on the date hereof of raw materials, industrialized products and other goods described in
Schedule B hereto and all of the Grantor’s additional inventory of raw materials, industrialized
products and other goods which may, from time to time, be acquired or produced by the Grantor, or
which may become a part of, by any other manner, the inventory of the Grantor (“Pledged
Inventory”);

     (ii) all of the Grantor’s equipment and assets of any kind which individually have an
aggregate value equal to, or above, R$1,000,000.00 (one million Reais) (“Material
Equipment”) as described in Schedule C hereto (collectively, the “Pledged Equipment”
and, together with the Pledged Inventory, the “Pledged Assets”); and

     (iii) all of the Grantor’s additional Material Equipment, which may, from time to time, be
acquired by the Grantor in any manner including, but not limited to, equipment and assets acquired
as result of purchase agreements, exchanges, replacements and upgrades, succession rights,
corporate transactions or in any other manner (“Additional Pledged Equipment”).

4

 

     (b) The Grantor shall keep the Pledged Assets as a depositary (fiel depositário), representing
and accepting all the charges and liabilities in accordance with the terms hereof and with the
applicable legislation, including those of Article 627 et. seq. of the Brazilian Civil Code, for
the safeguarding and maintenance of the Pledged Assets, for as long as this Agreement is in full
force and effect.

     3. Registration of the Pledge of the Pledged Assets. The Grantor, at its expense,
shall, within 20 (twenty) days from the date hereof with respect to this Agreement, and within 20
(twenty) days from the execution date of any amendments hereof entered into in accordance with
Section 5(b) below, (i) cause the signature of the parties who have signed this Agreement or any
amendments hereof entered into in accordance with Section 5(b) below outside Brazil to be notarized
by a public notary and consularized at the nearest Brazilian consulate, (ii) cause this Agreement
to be translated into Portuguese by a sworn translator (tradutor público juramentado), and (iii)
effectively register this Agreement or such amendment, as applicable, together with its sworn
translation (tradução juramentada) with the real estate registries (x) Cartório de Registro de
Imóveis, Títulos e Documentos e Civil de Pessoas Jurídicas of Barueri, state of São Paulo; and (y)
Tabelionato de Notas e Protestos e Registro de Imóveis of Itapissuma, state of Pernambuco, whenever
there are Pledged Assets or Additional Pledged Assets in that place. The Grantor shall promptly
after such registration deliver to the Collateral Agent evidence of such registration in form and
substance satisfactory to the Collateral Agent. All expenses incurred in connection with any
registrations under this Section 3 shall be borne by the Grantor.

Notwithstanding the foregoing, the Collateral Agent, at its sole discretion, may decide to
undertake any of the registrations, translations, filings and other formalities described herein if
Grantor fails to do so, whereupon the Grantor shall reimburse the Collateral Agent promptly of any
and all costs and expenses incurred by it related to such registrations, translations, filings and
other formalities in accordance with the provisions of the Principal Finance Documents.

     4. Representations and Warranties. The Grantor represents and warrants, to each
Secured Party as of the date hereof, and as of the date of any amendment in accordance with Section
5(b)(with the same effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date) and subject to the provisions
of the Principal Finance Documents, that:

          (a) the representations and warranties made by the Grantor as a Loan Party in Section 3.01
(Organization; Powers), 3.02 (Authorization), 3.03 (Enforceability), 3.06 (No Material Adverse
Change), 3.09 (Litigation, Compliance with Laws), 3.10 (Agreements), 3.19 (Security Documents) and
3.22 (Solvency) of the Credit Agreement, are true and accurate as regards the Grantor and this
Agreement (or any amendment, as the case may be);

          (b) (i) Schedule B hereto sets forth all of the material inventory of raw materials,
industrialized products and other goods (described by their kind and quantity) held by the Grantor
on the date set out in the Schedule B and (ii) the Grantor is the legal and record owner of all the
Pledged Inventory, free of any and all Liens except for the Lien created hereunder and those
permitted under the Principal Finance Documents;

5

 

          (c) (i) Schedule C hereto sets forth all the Material Equipment currently held by the
Grantor and (ii) the Grantor is the legal and record owner of all the Pledged Equipment, free of
any and all Liens except for the Lien created hereunder and those permitted under the Finance
Documents;

          (d) the powers of attorney granted by the Grantor in connection with this Agreement have been
duly and validly executed and delivered and give the Collateral Agent the rights and authority they
purport to give.

     5. Grantor’s Obligation. The Grantor covenants and agrees that:

          (a) the Grantor shall not (unless permitted by the terms of the Principal Finance Documents),
(i) create, incur or permit to exist any Lien or option in favor of, or any claim of any Person
with respect to any of the Pledged Assets, or any interest therein, or (ii) sell, assign, transfer,
exchange, or otherwise dispose of the Pledged Assets;

          (b) promptly upon the acquisition of any Material Equipment, subject to the Agreed Security
Principles, the Grantor shall enter into amendments to this Agreement substantially in the form of
Schedule D, in order to amend Schedule C to extend the Lien created hereunder to any
Additional Pledged Equipment (which shall then be subject to all terms and conditions provided
herein) title to which is acquired by the Grantor after the date hereof or of the previous
amendment, as applicable, and to any other assets which should have been pledged in accordance with
the terms hereof but were not included herein or in any previous amendment. The Grantor shall
register such amendments as required by Section 3 hereof;

          (c) the Grantor shall, upon receipt of a notification of the Collateral Agent stating that an
Enforcement Event has occurred and is continuing, comply (notwithstanding any notice or other
communication to the contrary from any other Person) with all written instructions received from
the Collateral Agent in connection with this Agreement;

          (d) if an Enforcement Event has occurred and is continuing, the Grantor shall, promptly upon
request, provide the Collateral Agent all information and evidence it may request concerning the
Pledged Assets to enable the Collateral Agent (directly or through any of its respective permitted
successors or assignees) to enforce the provisions of this Agreement;

          (e) if an Enforcement Event has occurred and is continuing, the Grantor shall not enter into
any agreement that could reasonably be expected to restrict or inhibit the Secured Parties’ rights
or ability to sell or otherwise dispose of the Pledged Assets or any part thereof; and

          (f) subject to the Agreed Security Principles, from time to time, enter into any additional
documents and instruments that are necessary to enable the Collateral Agent to protect the rights
created hereby, in connection with the Pledged Assets or with any part of them or to the exercise
by the Collateral Agent of any right, power or authority granted herein. Furthermore, subject to
the Agreed Security Principles, the Grantor shall protect the security interest of the Secured
Parties in connection with the Pledged Assets against claims and demands of any kind.

6

 

     6. Use and Disposal of Pledged Assets.

     Nothing in this Agreement shall restrict the Grantor’s right to freely use and dispose of the
Pledged Assets as long as such utilization or disposal is permitted by the Principal
Finance Documents and no Enforcement Event has occurred and is continuing.

     7. Remedies.

          (a) Without prejudice to the foregoing provisions, if an Enforcement Event has occurred or is
continuing (notwithstanding any notice or other communication to the contrary from any other
Person), the Collateral Agent, or any of its respective agents, successors or assignees is hereby
authorized and entitled to dispose of, collect, receive, appropriate and/or realize upon the
Pledged Assets (or any part thereof) and may forthwith sell, assign, give an option or options to
purchase or otherwise dispose of and deliver the Pledged Assets or any part thereof at such price,
in such order and upon such terms and conditions as it may deem appropriate, subject to applicable
law, irrespective of any prior or subsequent notice to the Grantor, in accordance with the
provisions set forth in Articles 1,433 Item IV and 1,435 Item V of the Brazilian Civil Code. Any
notice by the Collateral Agent that an Enforcement Event has occurred and is continuing or has
ceased or has been waived shall be conclusive as against the Grantor and all other third parties
(notwithstanding any notice or other communication to the contrary from the Grantor or any other
Person).

          (b) In accordance with Articles 684 and 1,433 Item IV of the Brazilian Civil Code the Grantor
by way of security irrevocably appoints the Collateral Agent and any receiver severally to be its
attorney-in-fact and in its name, on its behalf and as its act and deed to execute, deliver and
perfect all documents and do all things which the attorney may consider to be required or desirable
for: (i) carrying out any obligation imposed on the Grantor by this Agreement or any other
agreement binding on the Grantor to which the Collateral Agent is a party (including the execution
and delivery of any deeds, charges, assignments or other security and any transfers of the Pledged
Assets); (ii) enabling the Collateral Agent to exercise, or delegate the exercise of, all or any of
its rights over the Pledged Assets; and (iii) enabling any receiver to exercise, or delegate the
exercise of, any of the rights, powers and authorities conferred on them by or pursuant to this
Agreement or by law, provided always that the Collateral Agent may only be entitled to exercise the
powers conferred upon it by the Grantor under this Section 7(b) and pursuant to any powers of
attorney granted to give effect to this Section 7(b) if: (i) an Enforcement Event has occurred and
is continuing; and/or (ii) the Collateral Agent has received notice from the Applicable
Representative, the Secured Parties and/or the Grantor that the Grantor has failed to comply with a
further assurance or perfection obligation within 10 Business Days of being notified of that
failure (with a copy of that notice being sent to the Loan Parties  ́ Agent), provided further that
the Collateral Agent shall not be obliged to exercise the powers conferred upon it by the Grantor
under this Section 7(b) and pursuant to any powers of attorney granted to give effect to this
Section 7(b) unless and until it

7

 

shall have been (x) instructed to do so by the Applicable
Representative and (y) indemnified and/or secured and/or prefunded to its satisfaction.

     8. Application of Proceeds. Any funds received by the Collateral Agent or any of the
Secured Parties through the exercise of remedies pursuant to Section 7(a) hereof shall be
applied in accordance with the terms of the Intercreditor Arrangements.

     9. Amendments, etc. with Respect to the Secured Obligations. Subject to Section
12 the Grantor shall remain obligated hereunder, and the Pledged Assets shall remain subject to
the security interests granted hereby, at all times until termination of this Agreement without
limitation and without any reservation of rights against the Grantor, and without notice to or
further assent by the Grantor, notwithstanding:

          (a) the termination of any demand for payment of any of the Secured Obligations by any of the
Secured Parties in accordance with the terms of any other Loan Documents;

          (b) any renewal, extension, amendment, modification, refinancing, acceleration, compromise,
waiver, surrender, or release, in whole or in part, or partial invalidity or unenforceability, of
any Loan Documents;

          (c) any change in the time, manner, place, amount or currency of payment of the Secured
Obligations;

          (d) any action (or failure to take any action) by Secured Parties under or in respect of any
Loan Documents in the exercise of any remedy, power or privilege contained therein or at law,
equity or otherwise, or waiver of any remedy, power, privilege or extension of the time for
performance of any obligation under any Loan Documents; and

          (e) the sale, exchange, waiver, surrender or release of any guaranty, right to setoff or other
collateral security at any time held by the Collateral Agent in its name or for the benefit of the
Secured Parties for the payment of the Secured Obligations.

     9.1 Upon request of the Collateral Agent (acting on the instructions of the Applicable
Representative) or if any Additional Agreement is executed, the Grantor shall, at its expenses, (i)
amend Schedule A, in form and substance satisfactory to the Collateral Agent, so that the
description of the Secured Obligations can be adjusted to reflect any changes on the terms and
conditions thereof or the terms and conditions of any Additional Agreement; (ii) effectively
register such amendment, within 20 (twenty) days of the execution date thereof, as required by
Section 3 hereof and (iii) promptly after such registration, deliver to the Collateral Agent
evidence of such registration in form and substance satisfactory to the Collateral Agent acting on
the instructions of the Applicable Representative.

     10. Certain Waivers by the Grantor. No Secured Party shall have any obligation to
protect, secure, perfect or insure any Lien at any time held as security for the Secured
Obligations

8

 

or any property subject thereto, except as required by applicable law with respect to
any Pledged Assets.

     11. Pursuit of Rights and Remedies against the Grantor. When pursuing its rights and
remedies hereunder against the Grantor, the Collateral Agent (directly or through any of its
respective agents, successors or assignees) may, but shall be under no obligation (except as
required by applicable law) to pursue such rights and remedies as it may have against any third
party or against any collateral security for or guaranty of the Secured Obligations or any right of
offset with respect thereto, and any failure by the Collateral Agent (directly or through any of
its respective agents, successors or assignees) to pursue such other rights or remedies or to
collect any payments from such third party or to realize upon any such collateral security or
guaranty or to exercise any such right to setoff, or any release of such third party or of any such
collateral security or guaranty or right of offset, shall not relieve Grantor of any liability
hereunder, and shall not impair or affect the rights and remedies, whether express, implied or
resulting from applicable law, of the Secured Parties.

     12. Termination and Release. The security interests constituted by this Agreement
shall be released and cancelled, and this Agreement terminated: (a) by the Collateral Agent (acting
on the instructions of the Applicable Representative) at the request and cost of the Grantor, upon
the Secured Obligations being irrevocably paid or discharged in full and none of the Secured
Parties (directly or through any of their respective agents, successors or assignees) being under
any further actual or contingent obligation to make advances or provide other financial
accommodation to the Grantor or any other person under any of the Loan Documents; or (b) in
accordance with, and to the extent required by, the Intercreditor Arrangements (to the extent it is
possible to give effect to such arrangements under Brazilian law). Upon the Grantor’s request and
at the Grantor’s expense, the Collateral Agent (on written instruction from the Applicable
Representative) shall promptly execute and deliver to the Grantor all documents necessary to
evidence such termination and release in accordance with this Section 12.

     13. Cumulative Remedies. The rights, powers and remedies of the Collateral Agent and
the Secured Parties under this Agreement are cumulative and shall be in addition to all rights,
powers and remedies available to the Collateral Agent and the Secured Parties pursuant to any other
Loan Documents and at law, in equity or by statute and may be exercised successively or
concurrently without impairing the rights of the Collateral Agent and the Secured Parties
hereunder.

     14. Waivers and Amendments. This Agreement and its provisions shall only be modified,
amended, supplemented or waived with the written consent of the Grantor and the Collateral Agent.

     15. Severability. If any provision of this Agreement shall be held to be invalid,
illegal or unenforceable under applicable law, such provision shall be ineffective only to the
extent of such invalidity, illegality or unenforceability, and shall not affect any other
provisions hereof or the validity, legality or enforceability of such provision in any other
jurisdiction. The security interest created hereby shall, to the extent permitted under applicable
law and subject to any Liens permitted by the Loan Documents, constitute a continuing first
priority Lien on and

9

 

perfected first priority security interest in the Pledged Assets, in each case
enforceable against the Grantor in accordance with its terms.

     16. Delegation. The Collateral Agent and any receiver shall have full power to
delegate (either generally or specifically) the powers, authorities and discretions conferred on it
by this Agreement (including the power of attorney) on such terms and conditions as it shall see
fit which delegation shall not preclude either the subsequent exercise, any subsequent delegation
or any revocation of such power, authority or discretion by the Collateral Agent or the receiver
itself. Under the terms of Clause 18 below, in case of delegation, the delegates will be directly
liable for their acts and omissions and the Collateral Agent will be held harmless by such
delegate for any losses, claims, expenses and liabilities in connection thereto.

     17. Indemnity. To the extent set out in Section 4.11 of the First Lien Intercreditor
Agreement, the Grantor shall, notwithstanding any release or discharge of all or any part of the
security, indemnify the Collateral Agent, its agents, its attorneys, any delegate and any receiver
against any action, proceeding, claims, losses, liabilities, expenses, demands, taxes and costs
which it may sustain as a consequence of any breach by the Grantor of the provisions of this
Agreement, the exercise or purported exercise of any of the rights and powers conferred on them by
this Agreement or otherwise relating to the Pledged Assets.

     18. No Liability. None of the Collateral Agent, its nominee(s) or any receiver or
delegate appointed pursuant to this Agreement shall be liable by reason of (a) taking any action
permitted by this Agreement or (b) any neglect or default in connection with the Pledged Assets or
(c) the taking possession or realisation of all or any part of the Pledged Assets, except to the
extent provided in the Principal Finance Documents. In case of a delegation of powers, authorities
and discretions under the terms of Clause 16 above, the Collateral Agent is hereby expressly
exempted of any liability arising out of the delegates’ acts or omissions, with respect to which
the delegates shall be held directly liable.

     19. No Impairment of Other Security Interests. The security provided for in this
Agreement shall be in addition to and shall be independent from every other security that the
Secured Parties (collectively or individually) may at any time hold for any of the Secured
Obligations.

     20. Complete Agreement; Successors and Assignees. This Agreement is intended by the
parties as the final expression of their agreement regarding the subject matter hereof and as a
complete and exclusive statement of the terms and conditions of such agreement. This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assignees.

     21. Governing Law; Jurisdiction. This Agreement shall be governed by and construed and
interpreted in accordance with the laws of Brazil. The Grantor irrevocably submits to the
jurisdiction of the courts sitting in the City of São Paulo, State of São Paulo, Brazil, any action
or proceeding to resolve any dispute or controversy related to or arising from this Agreement and
the Grantor irrevocably agrees that all claims in respect of such action or proceeding may be

10

 

heard and determined in such courts, with the waiver of the jurisdiction of any other court, however
privileged it may be.

     22. No Duty on Collateral Agent’s Part. The powers conferred on the Collateral Agent
hereunder are solely to protect the interests of the Secured Parties’ in the Pledged Assets and
shall not impose any duty upon the Collateral Agent to exercise or on the Secured Parties to cause
the Collateral Agent to exercise any such powers.

     23. Notices. All notices and other communications provided under this Agreement shall
be served in accordance with the provisions of the First Lien Intercreditor Agreement.

     24. Specific Performance. For the purposes hereof, the Collateral Agent, acting as
representative of the Secured Parties, may seek the specific performance of the Secured
Obligations, as provided in the Brazilian Civil Procedure Code.

     25. Intercreditor Arrangement’s Provision. This Agreement is subject to the terms of
the Intercreditor Arrangements. In the event of a conflict between the terms of this Agreement and
the Intercreditor Arrangements, the terms of the Intercreditor Arrangements will prevail.

11

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in three (3)
counterparts of equal form and content for one sole purpose in the presence of the undersigned
witnesses.

The Bank of New York Mellon as Collateral Agent acting as agent of and for the
benefit of the Secured Parties

	 	 	 

	By: Marcos Canecchio Ribeiro 

Title: attorney-in-fact

	 	/s/ Marcos Canecchio Ribeiro

Closure Systems International (Brazil) Sistemas de Vedação Ltda.

	 	 	 

	By: Guilherme Rodrigues Miranda 

Title: officer

	 	/s/ Guilherme Rodrigues Miranda

	 	 	 

	WITNESSES:
	 	 
	 
	 	 
	/s/ Maria Celna Missias de Cruz

	 	/s/ ILLEGIBLE
	 

	 	 
	Name: Maria Celna Missias de Cruz

	 	Name: /s/ ILLEGIBLE
	ID:

	 	ID:

12

 

SCHEDULE A

Description of the Secured Obligations under the Loan Documents

A) All obligations owed to the Secured Parties now existing or hereafter arising, direct or
indirect, absolute or contingent, due or to become due, under the Loan Documents, including (and
without limitation):

	 	(i)	 	a senior secured U.S. term loan facility in an aggregate principal amount not
in excess of US$1,035,000,000 with an interest rate equivalent to the Applicable Margin
plus (a) (i) the greater of 2.00% per annum and (ii) (x) the LIBO Rate in effect for
such Interest Period and (y) Statutory Reserves or (b) the Alternate Base Rate; which
shall be repaid in full on November 5, 2015 (subject to prepayment and acceleration
provisions);
	 
	 	(ii)	 	an European term loan facility in an aggregate principal amount of
approximately €250,000,000 with an interest rate equivalent to the Applicable Margin
plus (a) (i) the greater of 2.00% per annum and (ii) (x) the EURIBO Rate in effect for
such Interest Period plus (y) Mandatory Cost or (b) in the case of loans denominated in
Euro, the Foreign Base Rate; which shall be repaid in full on November 5, 2015 (subject
to prepayment and acceleration provisions);
	 
	 	(iii)	 	a senior secured U.S. revolving loan facility in an aggregate principal amount
of approximately US$120,000,000, which principal amounts include sub-limits for letter
of credit facilities with an interest rate equivalent to the Applicable Margin plus (a)
(i) the greater of 2.00% per annum and (ii) (x) the LIBO Rate in effect for such
Interest Period and (y) Statutory Reserves or (b) the Alternate Base Rate; which shall
be repaid in full on November 5, 2014 (subject to prepayment and acceleration
provisions);
	 
	 	(iv)	 	and European revolving loan facility in an aggregate principal amount of
approximately €80,000,000, which principal amounts include sub-limits for letter of
credit facilities with an interest rate equivalent to the Applicable Margin plus (a)
(i) the greater of 2.00% per annum and (ii) (x) the EURIBO Rate in effect for such
Interest Period plus (y) Mandatory Cost or (b) in the case of loans denominated in
Euro, the Foreign Base Rate; which shall be repaid in full on November 5, 2014 (subject
to prepayment and acceleration provisions); and
	 
	 	(v)	 	incremental loan facilities in a principal amount up to US$400,000,000 with an
interest rate equivalent to the rates set forth in clauses (i) through (iv) above, as
applicable to the incremental loan facility; which shall be repaid in full as set forth
in clauses (i) through (iv) above, as applicable to the incremental loan facility or
such other as set out in the relevant Incremental Assumption Agreement, which date shall

1

 

	 	 	 	be earlier than the dates set forth above as applicable to the incremental loan
facility(subject to prepayment and acceleration provisions);

B) all other obligations, advances, debts and liabilities owed to the Credit Agreement’s Secured
Parties, including indemnities, fees and interest incurred under, arising out of or in connection
with the Credit Agreement.

Definitions

For the purpose of this item “I” of this Schedule A all capitalized terms used and not
otherwise defined in this Agreement shall have the meaning ascribed to such terms in the Credit
Agreement.

2

 

II — Description of the Obligations Under the Note Documents

All obligations owed to the Indenture Secured Parties now existing or hereafter arising, direct or
indirect, absolute or contingent, due or to become due, under the Note Documents (as such term is
defined in the Senior Secured Note Indenture), including (and without limitation):

	 	(i)	 	the due and punctual payment of:

	 	(a)	 	(A) US$1,125,000,000 aggregate principal amount on the notes due
2016 and interest at the rate of 7.75% per annum (including interest accruing
during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding) on
the, when and as due, whether at maturity, by acceleration, upon one or more
dates set for prepayment or otherwise; and (B) €450,000,000 aggregate principal
amount of notes due 2016 and interest at the rate of 7.75% per annum (including
interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise; and
	 
	 	(b)	 	all other monetary obligations of any Issuer to any of the
Secured Parties under the Senior Secured Note Documents, including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of
any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding.

	 	(ii)	 	the due and punctual performance of all other obligations of the Issuers under or
pursuant to the Senior Secured Note Documents; and
	 
	 	(iii)	 	the due and punctual payment and performance of all the obligations of each other
obligor under or pursuant to the Senior Secured Note Documents.

3

 

SCHEDULE B

List of Pledged Inventory

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Dec-09	 
	Inventories	 	 	 	 	in USD	 	 	in R$	 
	Raw Material	 	PP
	 	 	460,008.67	 	 	 	801,381.11	 
	 	 	 	 	PE
	 	 	162,601.83	 	 	 	283,268.65	 
	 	 	 	 	Liner
	 	 	255,940.40	 	 	 	445,873.77	 
	 	 	 	 	Masterbatch
	 	 	247,127.97	 	 	 	430,521.63	 
	 	 	 	 	 
	 	 	1,125,678.87	 	 	 	1,961,045.16	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	WIP	 	28mm
	 	 	39,438.97	 	 	 	68,706.63	 
	 	 	 	 	Edible oil
	 	 	41,690.38	 	 	 	72,628.81	 
	 	 	 	 	Sport lok
	 	 	6,449.12	 	 	 	11,235.01	 
	 	 	 	 	Pharma
	 	 	—	 	 	 	—	 
	 	 	 	 	 
	 	 	87,578.47	 	 	 	152,570.45	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Finished Goods	 	28mm
	 	 	1,215,835.77	 	 	 	2,118,107.49	 
	 	 	 	 	Edible oil
	 	 	710,445.92	 	 	 	1,237,667.84	 
	 	 	 	 	Sport lok
	 	 	437,676.70	 	 	 	762,476.58	 
	 	 	 	 	26mm
	 	 	11,841.01	 	 	 	 	 
	 	 	 	 	Pharma
	 	 	194,764.29	 	 	 	339,298.87	 
	 	 	 	 	Scrap
	 	 	72,065.69	 	 	 	125,545.64	 
	 	 	 	 	Import in transit
	 	 	1,830,696.81	 	 	 	3,189,256.91	 
	 	 	 	 	 
	 	 	4,473,326.19	 	 	 	7,772,353.33	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Spare parts and Operational Items	 	 
	 	 	2,507,081.28	 	 	 	4,367,586.30	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Total	 	 
	 	$	8,193,664.81	 	 	R$	14,253,555.24	 

4

 

SCHEDULE C

List of Material Equipment (value equal to net book value)

	 	 	 	 	 	 	 
	Equipment Code	 	Description	 	value	 	Location
	BP 08 0002

	 	Two sets of Xtra
Lok mini 1881
molder tools, one
set of Xtra Lok
mini tools for
scoring-liner and
one for printer for
the launching of
Xtra Lok mini 28mm
1881 closure for
packages up to 2.5
liters in the
Brazilian market
	 	R$1,580,261.92
	 	Alphaville plant
	 
	 	 	 	 	 	 
	BP 09 0001

	 	Two sets of Xtra
Lok mini 1881
molder tools, one
set of Xtra Lok
mini tools for
Scoring-Liner and
cap feeder system
	 	R$1,377,430.57
	 	Alphaville plant

5

 

SCHEDULE D

FORM OF AMENDMENT TO PLEDGE AGREEMENT OVER INVENTORY, EQUIPMENT AND OTHER ASSETS

     This [__] Amendment to Pledge Agreement Over Inventory, Equipment and Other Assets (the
“Amendment”) is made as of [___] by and among:

     (a) Closure Systems International (Brazil) Sistemas de Vedação Ltda., a limited
liability company duly organized and existing in accordance with the laws of Brazil, with its
registered office in the City of Barueri, State of São Paulo, at Alameda Araguaia, no 1.819-1.889,
enrolled with the Brazilian Taxpayers Roll of the Ministry of Finance (CNPJ/MF) under no
09.074.885/0001-48, herein represented in accordance with its Charter Documents (together with its
successors and permitted assignees, “Grantor”); and

     (b) The Bank of New York Mellon, a financial institution duly organized and existing
under the laws of the State of New York, with its registered office at, One Wall Street, New York,
New York, acting exclusively in the capacity as collateral agent of and for the benefit of the
Secured Parties under the First Lien Intercreditor Agreement (together with its successors and
permitted assignees in such capacity, the “Collateral Agent”);.

     WHEREAS, on [-] the Grantor and the Collateral Agent entered into a Pledge Agreement Over
Inventory, Equipment and Other Assets (as amended or supplemented from time to time, the
“Agreement”), which has been registered with the [-Real Estate Registry (Cartório de
Registro de Imóveis) of the cities of of Barueri, Brazil and [-], under Nrs.. [-] and [-]
respectively; and

     WHEREAS, it is a requirement under the Agreement that the parties enter into Amendments in
order to extend the Lien created under the Agreement to any Additional Pledged Equipment.

     NOW, THEREFORE, in consideration of the foregoing premises and mutual covenants contained
herein, the parties hereto agree as follows:

     1. Defined Terms. Capitalized terms used and not otherwise defined in this Amendment
shall have the meanings ascribed to them in the Agreement or, if not defined therein, in the First
Lien Intercreditor Agreement (as defined in the Agreement).

     2. Pledge; Grant of Security Interest.

6

 

          (a) In order to secure the full and prompt payment and performance when due (whether at the
stated maturity, by acceleration or otherwise) of all the Secured Obligations, which, for purposes
of Article 1,424 of Brazilian Federal Law number 10,406 of January 10, 2002 (“Brazilian Civil
Code”), are described in Schedule A to the Agreement (and which the Grantor hereby
acknowledges and recognizes for all legal purposes), and all of the obligations of the Grantor
under the Agreement and hereunder (collectively, the “Secured Obligations”), the Grantor
hereby pledges to the Collateral Agent, for the benefit of Secured Parties, hereby represented by
the Collateral Agent, pursuant to the provisions of Articles 1,431 et seq. (including Article
1,447) of the Brazilian Civil Code, the following assets: all of the Grantor’s equipment and assets
described in Schedule B hereto and any proceeds and products relating to or arising from the
equipment and assets referred above, including any proceeds or product hereafter received upon the
sale, exchange, lease or any disposition of any such equipment and assets (collectively, the
“Pledged Assets”).

          (b) The Grantor shall keep the Pledged Assets as a depositary (depositário) representing and
accepting all the charges and liabilities in accordance with the terms hereof and with the
applicable legislation, including those of Article 627 et. seq. of the Brazilian Civil Code, for
the safeguarding and maintenance of the Pledged Assets, for as long as this Agreement is in full
force and effect.

          (c) As a consequence of the pledge of the Additional Pledged Equipment pursuant to this
Amendment, Schedule C of the Agreement is hereby amended and shall read as stated in the Annex
hereto, which, upon registration of this Amendment as set forth in Section 3 below, shall replace
any Schedule C of the Agreement.

     3. Registration of this Amendment. The Grantor, at its expenses, shall within 20
(twenty) days from the execution date hereof, (i) cause the signature of the parties who have
signed this Amendment outside Brazil to be notarized by a public notary and consularized at the
nearest Brazilian consulate, (ii) cause this Amendment to be translated into Portuguese by a sworn
translator (tradutor público juramentado), and (iii) effectively register this Amendment together
with its sworn translation (tradução juramentada) with the real estate registries (x) Cartório de
Registro de Imóveis, Títulos e Documentos e Civil de Pessoas Jurídicas of Barueri, state of São
Paulo; and (y) Tabelionato de Notas e Protestos e Registro de Imóveis of Itapissuma, state of
Pernambuco, whenever there are Pledged Assets or Additional Pledged Assets in that place. The
Grantor shall promptly after such registrations deliver to the Collateral Agent evidence of such
registrations in form and substance satisfactory to the Collateral Agent.

Notwithstanding the foregoing, the Collateral Agent, at its sole discretion, may decide to
undertake any of the registrations, translations, filings and other formalities described herein if
Grantor fails to do so, whereupon the Grantor shall reimburse the Collateral Agent promptly of any
and all costs and expenses incurred by it related to such registrations, translations, filings and
other formalities in accordance with the provisions of the Principal Finance Documents.

7

 

     4. Representations and Warranties. As set forth under Section 4 of the Agreement, the
Grantor represents and warrants to the Secured Parties as of the date hereof (with the same effect
as though made on and as of such date, except to the extent such representations and warranties
expressly relate to an earlier date), and subject to the provisions of the Principal Finance
Documents that the representations and warranties made by the Grantor as Loan Party in Section 3.01
(Organization; Powers), 3.02 (Authorization), 3.03 (Enforceability), 3.06 (No Material Adverse
Change), 3.09 (Litigation, Compliance with Laws), 3.10 (Agreements), 3.19 (Security Documents) and
3.22 (Solvency) of the Credit Agreement, are true and accurate as regards the Grantor and this
Agreement (or any amendment, as the case may be), and that:

          (a) (i) the Annex hereto completely and accurately sets forth all the Material Equipment
currently held by the Grantor and (ii) the Grantor is the legal and record owner of all the Pledged
Equipment, free of any and all Liens, except for the Lien created hereunder and those permitted
under the Principal Finance Documents; and

          (b) the power of attorney executed by the Grantor in connection with the Agreement has been
duly and validly executed and delivered and gives the Collateral Agent the rights and authority it
purports to give.

     5. Effectiveness of the Agreement. All the provisions of the Agreement not expressly
altered as a result of this Amendment shall remain in full force and effect.

     6. Governing Law; Jurisdiction. This Amendment shall be governed by and construed and
interpreted in accordance with the laws of Brazil. The parties irrevocably submit to the
jurisdiction of the courts sitting in the City of São Paulo, State of São Paulo, Brazil, any action
or proceeding to resolve any dispute or controversy related to or arising from this Amendment and
the parties irrevocably agree that all claims in respect of such action or proceeding may be heard
and determined in such courts, with the express waiver of the jurisdiction of any other court,
however privileged it may be.

IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed in the presence of
the undersigned witnesses.

Closure Systems International (Brazil) Sistemas de Vedação Ltda.

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

8

 

	 	 	 	 	 

The Bank of New York Mellon, as Collateral Agent acting as agent of and for the
benefit of the Secured Parties

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 

	WITNESSES:
 
	 	 
	 

	 	 
	Name:

	 	Name:
	ID:

	 	ID:

9

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