Document:

exv4w118

EXHIBIT 4.118

SIG TECHNOLOGY AG

as Transferor

and

THE BANK OF NEW YORK MELLON

as Collateral Agent

 

SECURITY TRANSFER AND ASSIGNMENT AGREEMENT

REGARDING INTELLECTUAL PROPERTY RIGHTS

(SICHERUNGSÜBEREIGNUNG UND — ABTRETUNG

VON GEWERBLICHEN SCHUTZRECHTEN)

 

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 Credit
Document (as defined in Clause 1 of this 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 Credit 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 Credit 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 Credit Document to an Austrian addressee.

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	1. Definitions and Interpretation
	 	 	4	 
	2. Purpose of Transfer and Assignment
	 	 	8	 
	3. Assignment-Transfer
	 	 	8	 
	4. Documentation of the Collateral
	 	 	8	 
	5. Information
	 	 	9	 
	6. Right of Inspection
	 	 	9	 
	7. Registration of the Collateral
	 	 	9	 
	8. Right of Enforcement
	 	 	10	 
	9. Swiss Limitations
	 	 	12	 
	10. Representations and Warranties
	 	 	13	 
	11. Undertakings
	 	 	13	 
	12. Bookkeeping and Data-Processing
	 	 	14	 
	13. Further Assurance
	 	 	15	 
	14. Delegation
	 	 	15	 
	15. Indemnity
	 	 	15	 
	16. No liability
	 	 	15	 
	17. Duration and Independence
	 	 	15	 
	18. Release (Sicherheitenfreigabe)
	 	 	16	 
	19. Partial Invalidity, Waiver
	 	 	16	 
	20. Amendments
	 	 	17	 
	21. Notices and their Language
	 	 	17	 
	22. Applicable Law, Jurisdiction
	 	 	18	 
	23. Conclusion of this Agreement (Vertragsschluss)
	 	 	18	 

 

 

	 	 	 	 	 
	Clause	 	Page	 
	Schedule 1 List of Current Borrowers, Current Guarantors and Current Senior Secured Note
Guarantors
	 	 	20	 
	Part — 1 the Current Borrowers
	 	 	20	 
	Part — 2 the Current Guarantors
	 	 	20	 
	Part — 3 List of Current Senior Secured Note Guarantors
	 	 	22	 
	Schedule 2 List of Patents
	 	 	25	 
	Schedule 3 Übertragungserklärung (Declaration of Assignment)
	 	 	28	 
	Signature Page
	 	 	29	 

 

 

This SECURITY TRANSFER AND ASSIGNMENT AGREEMENT (the “Agreement”) is made on 2 December 2009

BETWEEN:

	(1)	 	SIG Technology AG, a company limited by shares incorporated under the laws of Switzerland,
having its registered office at Laufengasse 18, CH-8212 Neuhausen am Rheinfall, Switzerland
and registered in the Commercial Register of the Canton of Schaffhausen with the federal
register number CH-160.3.002.649-1 (the “Transferor”); and

	(2)	 	The Bank of New York Mellon, having its business address at 1 Wall Street, New York, N.Y.
10286, The United States of America in its capacity as collateral agent for the Secured
Parties (as defined below) under the First Lien Intercreditor Agreement (as defined below)
(the “Collateral Agent”).

WHEREAS:

	(A)	 	Pursuant to a USD 1,155,000,000 and EUR 330,000,000 multi-currency term and revolving credit
agreement dated 5 November 2009 between, inter alia, the parties listed in Part 1 of
Schedule 1 hereto as current borrowers (the “Current Borrowers”), the parties listed in Part
2 of Schedule 1 hereto as current guarantors (the “Current Guarantors”), Credit Suisse AG,
Cayman Island branch (formerly Credit Suisse, Cayman Island branch) as administrative agent
and The Bank of New York Mellon as collateral agent and others (as amended, varied, novated,
supplemented, superseded or extended from time to time, the “Credit Agreement”), certain
lenders (together the “Original Lenders”) have granted certain facilities to the Current
Borrowers and certain other entities which may accede to the Credit Agreement as additional
borrowers.

	(B)	 	Pursuant to a senior secured note indenture dated 5 November 2009 between, inter alia,
Reynolds Group Issuer LLC, Reynolds Group Issuer Inc., and Reynolds Group Issuer (Luxembourg)
S.A as issuers (the “Issuers”), certain affiliates of the Issuers listed in Part 3 of
Schedule 1 as current senior secured note guarantors (the “Current Senior Secured Note
Guarantors”) and The Bank of New York Mellon, as indenture trustee, principal paying agent,
transfer agent and registrar, (as amended, varied, novated, supplemented, superseded or
extended from time to time, the “Senior Secured Note Indenture”), the Issuers have issued
senior secured notes due 2016 in the aggregate principal amount of USD 1,125,000,000 (the “US
Secured Notes”) and senior secured notes due 2016 in the aggregate principal amount of EUR
450,000,000 (the “Euro Secured Notes” and together with the US Secured Notes the “Senior
Secured Notes”) to certain noteholders.

	(C)	 	The Transferor has agreed to transfer the Collateral (as defined below) to the Collateral
Agent as security for the Secured Parties’ (as defined below) respective claims against the
Grantors (as defined below) (or any of them) in respect of the Obligations (as defined below).

	(D)	 	The security created by or pursuant to this Agreement is to be held and administered by the
Collateral Agent for the Secured Parties (as defined below) pursuant to a first lien
intercreditor agreement dated 5 November 2009 between, inter alia, the Collateral Agent, the
Indenture Trustee, the Administrative Agent and the Grantors (each as

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	 	 	defined below) and others (as amended, varied, novated, supplemented, superseded or extended
from time to time, the “First Lien Intercreditor Agreement”).

	(E)	 	The Transferor has granted licences for use of the Collateral (as defined below) to SIG
Combibloc GmbH and SIG Combibloc Systems GmbH.

NOW IT IS HEREBY AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION

	1.1	 	Definitions:

	 	 	“Administrative Agent” means Credit Suisse AG, Cayman Island branch, having its
business address at One Madison Avenue, New York, NY 10010, United States of America in its
capacity as administrative agent under the Credit Agreement and any successor appointed as
administrative agent under the Credit Agreement.

	 	 	“Borrowers” means the Current Borrowers and any entity which may accede to the Credit
Agreement as an additional borrower and “Borrower” means any of them.

	 	 	“Cash Management Bank” shall mean Citibank NA, Banco Nacional De Mexico S.A., Citibank
International PLC, UK, Citibank (China) Co., Limited, Citibank Global Markets Deutschland AG
& Co KGaA, Citibank ZRT, Hungary, a Lender, the Administrative Agent or any of the Lender’s
or the Administrative Agent’s affiliates (at the time the cash management services
arrangement is entered into) provided in each case it has become a party to, or by execution
of an additional bank secured party acknowledgment has agreed to be bound by the terms of,
the First Lien Intercreditor Agreement in its capacity as cash management bank.

	 	 	“Cash Management Services” shall mean any agreement or arrangement by a Cash Management Bank
to provide any composite accounting or other cash pooling arrangements and netting,
overdraft protection and other arrangements with any bank arising under standard business
terms of such Cash Management Bank to a Grantor.

	 	 	“Collateral” means the Patents.

	 	 	“Credit Documents” shall mean the Loan Documents and the Senior Secured Note Documents.

	 	 	“Enforcement Event” shall mean an Event of Default.

	 	 	“Event of Default” means any event of default (Kündigungsgrund) under the Credit
Agreement and/or the Senior Secured Note Indenture.

	 	 	“Existing Intercreditor Agreement” means the existing intercreditor agreement dated 11
May 2007 (as amended by a letter dated 21 June 2007 and a further letter dated 29 June 2007
and as amended and restated on or about the date hereof) between, inter alia, Beverage
Packaging Holdings (Luxembourg) I S.A., Rank Group Holdings Limited (now Reynolds Group
Holdings Limited), Beverage Packaging Holdings (Luxembourg) II S.A., Beverage Packaging
Holdings (Luxembourg) III S.à r.l., Credit Suisse AG as security trustee and others.

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	 	 	“Grantors” means the Loan Parties, the Issuers and the Senior Secured Note Guarantors and
any person that has granted a security interest to the Collateral Agent and/or the Secured
Parties in respect of the obligations of the Loan Parties, the Issuers and the Senior
Secured Note Guarantors under the Credit Documents and “Grantor” means any of them.

	 	 	“Grantors’ Agent” shall mean Reynolds Group Holdings Limited or any other person
appointed as agent of the Grantors in accordance with the Principal Finance Documents.

	 	 	“Group” means Reynolds Group Holdings Limited and its direct or indirect subsidiaries
(Tochtergesellschaften).

	 	 	“Hedge Counterparty” means a Lender, the Administrative Agent or any of the Lender’s or the
Administrative Agent’s affiliates (at the time a hedging agreement is entered into) who has
entered into a hedging agreement for the purpose of hedging interest rate liabilities and/or
any exchange rate and/or commodity price risks provided it has become a party, or by
execution of an additional bank secured party acknowledgment has agreed to be bound by the
terms of, to the First Lien Intercreditor Agreement in its capacity as hedge counterparty.

	 	 	“Incremental Assumption Agreement” shall mean an incremental assumption agreement relating
to incremental facilities of up to USD 400,000,000 among, and in form and substance
reasonably satisfactory to, one or more Borrowers, the Administrative Agent, one or more
Incremental Term Lenders and/or one or more Incremental Revolving Credit Lenders pursuant to
which one or more Incremental Term Lenders make available Incremental Term Loan Commitments
and/or one or more Incremental Revolving Credit Lenders make available Incremental Revolving
Credit Commitments respectively.

	 	 	“Incremental Revolving Credit Lender” shall mean a Lender with an Incremental Revolving
Credit Commitment or an outstanding revolving loan under the Credit Agreement of any class
as a result of an Incremental Revolving Credit Commitment.

	 	 	“Incremental Revolving Credit Commitment” shall mean the commitment of any Lender,
established pursuant to the Credit Agreement, to make available certain revolving credit
loans to one or more Borrowers.

	 	 	“Incremental Term Lender” shall mean a Lender with an Incremental Term Loan Commitment.

	 	 	“Incremental Term Loan Commitment” shall mean the commitment of any Lender, established
pursuant to the Credit Agreement, to make available certain term loans to one or more
Borrowers.

	 	 	“Indenture Trustee” shall mean The Bank of New York Mellon, in its capacity as indenture
trustee under the Senior Secured Note Indenture and any successor appointed as indenture
trustee under the Senior Secured Notes Indenture.

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	 	 	“Intercreditor Arrangements” means the First Lien Intercreditor Agreement and the Existing
Intercreditor Agreement, in each case as amended, novated, supplemented, restated, or
modified from time to time.

	 	 	“Issuing Bank” means Credit Suisse AG or any other Lender or any affiliate of Credit Suisse
AG or any other Lender that issues letters of credit or bank guarantees under the Credit
Agreement.

	 	 	“Lenders” shall mean the Original Lenders and any entity which may become a lender under the
Credit Agreement in the future and “Lender” means any of them.

	 	 	“Loan Documents” shall mean the Credit Agreement, any borrowing subsidiary agreement and/or
guarantor joinder agreement relating to the Credit Agreement, any letter of credit or bank
guarantee relating to the Credit Agreement, any security documents relating to the Credit
Agreement, any hedging agreement entered into by a Hedge Counterparty and a Grantor, each
Incremental Assumption Agreement, the Intercreditor Arrangements, each Promissory Note, any
agreement between a Grantor and a Cash Management Bank relating to Cash Management Services,
each Local Facility Agreement and any other document that may be entered into pursuant to
any of the foregoing in relation to the Credit Agreement.

	 	 	“Loan Parties” shall mean the Borrowers, the Current Guarantors and any entity which may
accede to the Credit Agreement as additional guarantor and a “Loan Party” means any of them.

	 	 	“Local Facilities” means working capital facilities provided to a Grantor (other than
Beverage Packaging Holdings (Luxembourg) I S.A., Beverage Packaging Holdings (Luxembourg) II
S.A. Beverage Packaging Holdings (Luxembourg) III S.à.r.l. and the Borrowers) by a Local
Facility Provider and “Local Facility” means any of them.

	 	 	“Local Facility Agreements” shall mean any agreement under which a Local Facility is
made available.

	 	 	“Local Facility Provider” means each of Deutsche Bank AG, Commerzbank
Aktiengesellschaft, Bank of America, N.A., HSBC Trinkaus & Burkhardt AG and Hong Kong and
Shanghai Banking Corporation Ltd., Thailand, provided in each case it has become a party to,
or by execution of an additional bank secured party acknowledgment has agreed to be bound by
the terms of, the First Lien Intercreditor Agreement in its capacity as local facility
provider.

	 	 	“Obligations” shall mean 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 Grantor to the Secured Parties (or any of them) under each or any of the
Credit 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 Credit Documents or any other document evidencing or securing any such
liabilities. The Obligations shall further include any obligation based on unjust enrichment
(ungerechtfertigte Bereicherung) or tort (Delikt).

	 	 	“Patents” (Patente) means all German patents and German patent applications currently held
by the Transferor together with the inventions described and claimed

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	 	 	therein which are listed in Schedule 2 hereto. For the avoidance of doubt, the Patents
encompass any extension of the term of the patents and patent applications as listed in
Schedule 2.

	 	 	“Principal Finance Documents” means the Credit Agreement, the Senior Secured Note Indenture
and the First Lien Intercreditor Agreement.

	 	 	“Promissory Note” shall mean any promissory note executed and delivered by a Borrower upon
the request of a Lender evidencing the amount of principal owed by such Borrower to such
Lender under the Credit Agreement.

	 	 	“Secured Parties” shall mean the Lenders (including in their capacity as issuing bank(s),
and/or Hedge Counterparties under the Credit Agreement), the Hedge Counterparties, the
Administrative Agent, any Issuing Bank, the beneficiaries of each indemnification obligation
undertaken by any Grantor under any Credit Document, the Senior Secured Note Holders, the
Indenture Trustee, the Collateral Agent, the Local Facility Providers and the Cash
Management Banks.

	 	 	“Senior Secured Note Documents” shall mean the Senior Secured Note Indenture, the
Senior Secured Note Guarantees, the Senior Secured Notes, the Intercreditor Arrangements,
any security document relating to the Senior Secured Notes and/or the Senior Secured Note
Indenture and any other document that may be entered into pursuant to any of the foregoing.

	 	 	“Senior Secured Note Guarantees” shall mean the guarantees of the obligations of the Issuers
under the Senior Secured Notes and the Senior Secured Note Indenture by the Senior Secured
Note Guarantors.

	 	 	“Senior Secured Note Guarantors” means the Current Senior Secured Note Guarantors and
any entity which may accede to the Senior Secured Note Indenture as additional guarantor.

	 	 	“Senior Secured Note Holders” shall mean the holders from time to time of the Senior Secured
Notes.

	1.2	 	Construction

	 	 	In this Agreement:

	 	(a)	 	Capitalised terms used in this Agreement (or in any notice given under this
Agreement) but not defined therein shall have the meanings ascribed thereto in the
First Lien Intercreditor Agreement; and
	 
	 	(b)	 	any reference in this Agreement to a “Clause”, a “sub-Clause” or a “Schedule”
shall, subject to any contrary indication, be construed as a reference to a Clause, a
sub-Clause or a Schedule in this Agreement.

	1.3	 	This Agreement is made in the English language. For the avoidance of doubt, the English
language version of this Agreement shall prevail over any translation of this Agreement.
However, where a German translation of a word or phrase appears in the text of this Agreement,
the German translation of such word or phrase shall prevail.

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2. PURPOSE OF TRANSFER AND ASSIGNMENT

	 	 	The transfer of title and assignment hereunder is constituted in order to secure the prompt
and complete satisfaction of any and all Obligations. The transfer of title and the
assignment hereunder shall also cover any future extension of the Obligations and the
Transferor herewith expressly agrees that the transfer of title and the assignment shall
secure the Obligations as extended or increased from time to time.
	 
	3.	 	ASSIGNMENT-TRANSFER

	3.1	 	The Transferor hereby assigns and transfers to the Collateral Agent in its capacity as
Collateral Agent for the benefit of the Secured Parties the Collateral all present and future
rights in relation to the Collateral. For the avoidance of doubt, no royalties under licence
agreements and sub-licence agreements shall be assigned and transferred.

	3.2	 	The Collateral Agent hereby accepts the assignment and transfer of the Collateral pursuant to
Clause  3.1.

	3.3	 	Title to the Collateral shall pass over to the Collateral Agent on execution of this
Agreement.

	3.4	 	The Collateral Agent shall be entitled to be registered in the relevant public register as
owner of the Collateral only pursuant to Clauses   7 and   8 at the expense of the Transferor.

	3.5	 	Until realisation of the Collateral pursuant to Clause   8.1, the Transferor shall be
entitled to use and to exercise all rights and powers in respect of the Collateral in
accordance with the terms of the Credit Documents. To this effect the Collateral Agent grants
an exclusive revocable licence to the Transferor for using the Collateral without any
royalties being due therefore, provided that such licence may only be revoked if the
Collateral is in the process of being realised in accordance with Clause  8 hereof. The
Transferor shall be entitled to grant sub-licences without prior written consent of the
Collateral Agent and shall inform the Collateral Agent without undue delay of such
sublicensing (other than in relation to any sub-licensing to the Grantors’ Agent or any of its
affiliates). The Transferor shall further be entitled to apply for the registration of any
Collateral in its own name. If the Collateral is in the process of being realised in
accordance with Clause  8 hereof the Collateral Agent may terminate the exclusive licence
granted pursuant to this Clause   3.5 with immediate effect and will substitute the Transferor
as grantor of any sub-licences. Moreover, all licences the Transferor granted to a member of
the Group can be terminated by the Collateral Agent upon the occurrence of an Enforcement
Event and whilst it is continuing.
	 
	4.	 	DOCUMENTATION OF THE COLLATERAL

	 	 	Upon reasonable request, the Transferor shall deliver to the Collateral Agent up-to-date
excerpts of the relevant registers or application confirmations concerning present and
future registrations of the Collateral with the competent authorities provided, however,
that while no Enforcement Event is continuing such request shall not be made more than once
a year and be limited to those excerpts and applications the Collateral Agent has not
already received, as well as copies of any and all documents re

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	 	 	lating to court proceedings or any other challenge of the validity or use of the Collateral
and correspondence with other owners of intellectual property regarding the validity and
scope of the Collateral.
	 
	5.	 	INFORMATION
	 
	5.1	 	The Transferor shall deliver to the Collateral Agent (i) within three months after the end of
each calendar year ending after January 2010 in case of any changes to the status of
Collateral and (ii) after the occurrence of an Enforcement Event whilst it is continuing at
any time upon the request of the Collateral Agent an updated list of the Collateral. The list
or lists shall give the details set forth in Schedule 2.
	 
	5.2	 	The Transferor shall deliver to the Collateral Agent without undue delay, but not later than
90 days upon execution of this Agreement, a list of licences to the Collateral currently
granted to third parties.
	 
	5.3	 	The list or lists may be delivered to the Collateral Agent in the form of a computer compact
disk or in such other form as from time to time agreed between the Collateral Agent and the
Transferor provided that the Collateral Agent may in its reasonable discretion request a
computer print-out in addition to any other form.
	 
	6.	 	RIGHT OF INSPECTION
	 
	 	 	Except as otherwise set forth in the Principal Finance Documents, the Transferor undertakes
to provide the Collateral Agent without undue delay at its reasonable request with all
information and documents, which are necessary for perfecting and, after an Enforcement
Event and whilst it is continuing, for enforcing the security created hereby.
	 
	7.	 	REGISTRATION OF THE COLLATERAL
	 
	7.1	 	The Transferor shall deliver to the Collateral Agent, not later than 20 Business Days after
the date of this Agreement, a declaration of assignment (Übertragungserklärung) for the
registration of the assignment of the Collateral to the Collateral Agent by the Transferor in
the form of Schedule 3. Such declarations of consent shall only be used after the occurrence
of an Enforcement Event and whilst it is continuing.
	 
	7.2	 	Notwithstanding its rights under Clause 8 hereof, the Collateral Agent shall, in the event
of its registration as the owner of the Collateral and to the extent reasonable, maintain the
Collateral at the expense of the Transferor and exercise the rights following from the
Collateral at the expense of the Transferor.
	 
	7.3	 	After the occurrence of an Enforcement Event and whilst it is continuing or if the
registration is necessary to perfect the assignment and transfer any of the Collateral, the
Collateral Agent is entitled (unless otherwise set forth in the Principal Finance Documents)
to be registered in the respective public register as owner of the Collateral and is entitled
to arrange for its registration or changes of registration in the respective public registers
as the owner of the respective Collateral, for and on behalf of the Secured Parties. The
Transferor shall make all statements and take all actions that are required for the purpose of
registration of the Collateral Agent in accordance

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	 	 	with this Clause 7.3. Insofar as additional declarations or actions are necessary for the
transfer of title and/or assignment of any part of the Collateral, the Transferor shall, at
the Collateral Agent’s request, make such declarations or undertake such actions.
	 
	8.	 	RIGHT OF ENFORCEMENT
	 
	8.1	 	

	 	(a)	 	Subject to paragraph (b) of this Clause 8.1 below, if (i) an Enforcement
Event has occurred and is continuing and (ii) any of the Obligations has become due and
payable, then the Collateral Agent is entitled to enforce this Agreement and realise
the Collateral.
	 
	 	(b)	 	The Collateral Agent may only realise the Collateral in accordance with
paragraph (a) of this Clause 8.1 above in relation to obligations of any Grantor
(other than obligations under the Credit Documents of (i) the Transferor (v) incurred
as Borrower under the Credit Agreement, (w) incurred as borrower under a Local Facility
Agreement, (x) incurred as a party to and beneficiary under any hedging agreement
entered into with an Hedge Counterparty, (y) owed as cash management obligations to a
Cash Management Bank for Cash Management Services, provided the Transferor is a
beneficiary of the Cash Management Services causing such cash management obligations or
(z) to the extent certain proceeds of the Senior Secured Notes Indenture have been made
available to the Transferor, up to such proceeds and (ii) a direct or indirect
subsidiary of the Transferor (the “Transferor’s Subsidiary”) (v) incurred as Borrower
under the Credit Agreement, (w) incurred as borrower under a Local Facility Agreement,
(x) incurred as a party to and beneficiary under any hedging agreement entered into
with an Hedge Counterparty (y) owed as cash management obligations to a Cash Management
Bank for Cash Management Services, provided the Transferor’s Subsidiary is a
beneficiary of the Cash Management Services causing such cash management obligations or
(z) to the extent certain proceeds of the Senior Secured Notes Indenture have been made
available to the Transferor’s Subsidiary, up to such proceeds) after (i) the
Transferor’s auditors have (y) delivered an audited interim balance sheet of the
Transferor (valuating the Collateral at its realisation value) to the Collateral Agent
and (z) determined the existence and extent of the profits available for the payment of
a dividend by the Transferor in accordance with the relevant provisions of the Swiss
Code of Obligations (the “Auditor’s Determination”) and (ii) the Transferor’s
shareholders have passed for such dividend payment resolutions for the distribution of
dividends (“Dividend Resolution”) in accordance with the relevant provisions of the
Swiss Federal Code of Obligations being in force at that time. The Transferor shall
deliver the Auditor’s Determination and the Dividend Resolution within 30 business days
after the Collateral Agent has given notice to the Transferor of its intention to
realise the Collateral. The Collateral Agent shall only realise the Collateral in
relation to obligations of any Grantor (other than obligations under the Credit
Documents of (i) the Transferor (v) incurred as Borrower under the Credit Agreement,
(w) incurred as borrower under a Local Facility Agreement, (x) incurred as a party to
and beneficiary under any hedging agreement entered into with an Hedge Counterparty,
(y) owed as cash management obligations to a Cash Management Bank for Cash Management
Services, provided the Transferor is

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	 	 	 	a beneficiary of the Cash Management Services causing such cash management
obligations or (z) to the extent certain proceeds of the Senior Secured Notes
Indenture have been made available to the Transferor, up to such proceeds and (ii) a
Transferor’s Subsidiary (v) incurred as Borrower under the Credit Agreement, (w)
incurred as borrower under a Local Facility Agreement, (x) incurred as a party to
and beneficiary under any hedging agreement entered into with an Hedge Counterparty
(y) owed as cash management obligations to a Cash Management Bank for Cash
Management Services, provided the Transferor’s Subsidiary is a beneficiary of the
Cash Management Services causing such cash management obligations or (z) to the
extent certain proceeds of the Senior Secured Notes Indenture have been made
available to the Transferor’s Subsidiary, up to such proceeds) if according to the
Auditor’s Determination and the Dividend Resolution the Transferor has validly
resolved to distribute the profits available for payment of a dividend, subject to
Clause   9 (Swiss Limitations) below, provided that if the Collateral is not
realised and/or the security granted hereunder not enforceable, the Collateral Agent
may subsequently again seek to realise the Collateral in accordance with this
 paragraph (b) of Clause  8.1 and Clause  9 (Swiss Limitations) at any time
thereafter.

	8.2	 	The Collateral Agent will notify the Transferor in writing at least 5 (five) business days
prior to the enforcement of the security granted hereunder. No such notice shall be required
if (i) the Transferor has generally ceased to make payments, (ii) an application for the
institution of insolvency proceedings is filed by or against the Transferor or (iii) the
Collateral Agent has reasonable grounds to believe that observance of the notice period would
adversely affect the legitimate interests (berechtigte Interessen) of the Collateral Agent.

	8.3	 	In the case of a sale, the Transferor shall promptly provide the Collateral Agent with all
documents of title and other documents relating to the Collateral.

	8.4	 	At any time while an enforcement event as described in sub-clause   8.1 is continuing, the
Collateral Agent has the right to sell all or part of the Collateral by way of private sale to
the extent necessary to satisfy any outstanding Obligations, it being understood that the
Collateral Agent shall apply the proceeds of such realisation towards the Obligations in
accordance with the First Lien Intercreditor Agreement.

	8.5	 	While being entitled to enforce the security interest created hereunder in accordance with
Clause   8.1 above the Collateral Agent may request the Transferor to sell the Collateral for
and on its behalf and the Transferor shall promptly comply with such request.

	8.6	 	If the Collateral Agent sells the Collateral pursuant to this Clause   8 it may take all
measures and enter into all agreements which it commercially reasonably considers to be
expedient in connection therewith.

	8.7	 	Notwithstanding sub-Clause   8.4, the Collateral Agent may, following the occurrence of an
Enforcement Event and whilst it is continuing, in its sole discretion, determine which of
several security interests (created under this or other security agreements) shall be used to
satisfy the Obligations.

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	8.8	 	Given the non-accessory nature of this security, the Transferor has no defences of revocation
and set-off and no defences based on defences any Grantor might have against the Obligations.
The Collateral Agent is not required to proceed against or enforce any other rights or
security before enforcing the security created hereunder.

	8.9	 	The Transferor shall not at any time before, on or after an enforcement of the security
created hereunder and as a result of the Transferor entering into this Agreement, be entitled
to demand indemnification or compensation from any other Grantor or to assign any of these
claims.
	 
	9.	 	SWISS LIMITATIONS

	9.1	 	Proceeds of a realisation of the Collateral shall only be applied towards satisfaction of the
Obligations in relation to obligations of any Grantor (other than obligations under the Credit
Documents of (i) the Transferor (v) incurred as Borrower under the Credit Agreement, (w)
incurred as borrower under a Local Facility Agreement, (x) incurred as a party to and
beneficiary under any hedging agreement entered into with an Hedge Counterparty, (y) owed as
cash management obligations to a Cash Management Bank for Cash Management Services, provided
the Transferor is a beneficiary of the Cash Management Services causing such cash management
obligations or (z) to the extent certain proceeds of the Senior Secured Notes Indenture have
been made available to the Transferor, up to such proceeds and (ii) a Transferor’s Subsidiary
(v) incurred as Borrower under the Credit Agreement, (w) incurred as borrower under a Local
Facility Agreement, (x) incurred as a party to and beneficiary under any hedging agreement
entered into with an Hedge Counterparty (y) owed as cash management obligations to a Cash
Management Bank for Cash Management Services, provided the Transferor’s Subsidiary is a
beneficiary of the Cash Management Services causing such cash management obligations or (z) to
the extent certain proceeds of the Senior Secured Notes Indenture have been made available to
the Transferor’s Subsidiary, up to such proceeds) to the extent application of the proceeds of
a realisation of the Collateral towards such obligations does not constitute a repayment of
capital (Einlagerueckgewaehr), a violation of the legally protected reserves (gesetzlich
geschuetzte Reserven) or a payment of a (constructive) dividend prohibited by the Swiss
Federal Code of Obligations by the Transferor and in the maximum amount of the Transferor’s
profits available for the distribution of dividends at the point in time the Collateral is
realised (being the balance sheet profits and any free reserves made for this purpose, in each
case in accordance with the relevant Swiss law) (the “Available Enforcement Proceeds”). Any
proceeds of an enforcement in excess of the Available Enforcement Proceeds as well as the Tax
Payment Amount (as defined below) which shall be deducted from the Available Enforcement
Proceeds shall be returned to the Transferor;

	9.2	 	for such application of the Available Enforcement Proceeds towards satisfaction of the
Obligations the Transferor shall procure to pass a shareholders’ resolutions for the
distribution of dividends in accordance with the relevant provisions of the Swiss Federal Code
of Obligations being in force at that time (currently the profits available for the
distribution of dividends as described above must be determined based on an audited balance
sheet and such shareholders’ resolution must be based on the report from the Transferor’s
auditors approving the proposed distribution of dividends); and

- 12 -

 

	9.3	 	deduct from the Available Enforcement Proceeds Swiss Anticipatory Tax (withholding tax) at
the rate of 35% (or such other rate as in force from time to time) and subject to any
applicable double taxation treaty and/or agreements entered into with the Swiss Federal Tax
administration (the “Tax Payment Amount”):

	 	(a)	 	pay the Tax Payment Amount to the Swiss Federal Tax Administration; and

	 	(b)	 	give evidence to the respective beneficiary or beneficiaries (as the same may
be) of such deduction of the Tax Payment Amount in accordance with Clause 2.20 (Taxes)
of the Credit Agreement and Clause 4.15 (Witholding Taxes) of the Senior Secured Note
Indenture.

	 	 	But if such a deduction is made, the Transferor shall not be obliged to gross-up pursuant to
Clause 2.20 (Taxes) of the Credit Agreement or Clause 4.15 (Witholding taxes) of the Senior
Secured Notes Indenture to the extent that such gross-up would result in the aggregate of
the amounts of the proceeds of a realisation of the Collateral applied by the beneficiary or
beneficiaries (as the same may be) towards satisfaction of the Obligations and the Tax
Payment Amount paid to the Swiss Federal Tax administration exceeding the maximum amount of
its profits available for the distribution of dividends.
	 
	10.	 	REPRESENTATIONS AND WARRANTIES

	 	 	The Transferor hereby represents and warrants to the Collateral Agent by way of an
independent guarantee (selbständiges Garantieversprechen) that Schedule 2 hereof contains
all Collateral of the Transferor registered or applied for registration in Germany as
determined by the Transferor to be key to the aseptic filling or packaging business. The
details set out in Schedule 2 hereof are correct and complete in all material respects in
relation to such Collateral as of the date hereof.
	 
	11.	 	UNDERTAKINGS

	 	 	Unless otherwise permitted by the Principal Finance Documents, during the term of this
Agreement, the Transferor undertakes to the Collateral Agent:

	11.1	 	to inform the Collateral Agent in writing promptly of any attachments (Pfändung) of which it
becomes aware in respect of any and all of the Collateral. In the event of an attachment, the
Transferor undertakes to forward to the Collateral Agent without undue delay a copy of the
attachment order (Pfändungsbeschluss), the garnishee order (Überweisungsbeschluss) and all
other documents necessary for a defence against the attachment. The Transferor shall inform
the attaching creditor without undue delay about the Collateral Agent’s security interests;

	11.2	 	not to dispute the validity of the Collateral or of new applications for registration with
regard to the Collateral;

	11.3	 	if failure to do the following would have a material adverse effect, to make all statements
and take all actions at its own expense which are reasonably required in order to maintain the
registration of the Collateral in the ordinary course of business, including the payment of
renewal fees, and have the Collateral registered if not registered so far and necessary to
maintain the legal title therein and to deliver to the

- 13 -

 

	 	 	Collateral Agent at its reasonable request copies of the respective documents evidencing
such actions;

	11.4	 	to inform the Collateral Agent without undue delay if third parties materially dispute or
challenge the validity of any of the Collateral or materially allege that any of the
Collateral violates the rights of third parties, and assert all claims and to litigate if this
is required for the defence against such claims. Following the occurrence of an Enforcement
Event and whilst it is continuing, the Transferor agrees that the Collateral Agent may take
over any judicial or extra judicial proceedings upon reasonable request and at the
Transferor’s expense; and

	11.5	 	to inform the Collateral Agent without undue delay, if third parties infringe any of the
Collateral in a way which would have a material adverse effect on the Collateral Agent’s
and/or the Secured Parties’ rights relating to the Collateral. The Transferor shall, acting
commercially reasonably and considering the legitimate interest of the Collateral Agent and
the Secured Parties, prosecute such infringement in its own name and at its own expense. All
compensation claims becoming due after the date hereof become part of the Collateral.
Following the occurrence of an Enforcement Event and whilst it is continuing the Collateral
Agent and/or the Secured Parties may take over any judicial or extra judicial proceedings upon
request and at the Transferor’s expense.
	 
	12.	 	BOOKKEEPING AND DATA-PROCESSING

	12.1	 	If proof, documents or data which are necessary to identify the Collateral have been handed
over by the Transferor to a third party (in particular a bookkeeping firm or a tax consultant)
or are managed by a third party the Transferor hereby assigns to the Collateral Agent, who
hereby accepts such assignment, its right to demand from such third party the return of the
proof and documents and the right to obtain information as to the registration details of the
Collateral. The Collateral Agent will only make use of such right if an Enforcement Event has
occurred and is continuing. Upon the occurrence of an Enforcement Event and whilst it is
continuing, the Transferor hereby undertakes to instruct the third party to provide the
Collateral Agent upon its demand with such information and documents which are necessary to
perfect and/or enforce the security created hereby.

	12.2	 	If details concerning the Collateral or any part thereof have been stored in an electronic
data-processing system, then, if an Enforcement Event has occurred and is continuing, the
Transferor shall allow the Collateral Agent access to the computer, including the peripheral
equipment and all data concerning the Collateral or such part thereof. Moreover, software
operators shall be made available insofar as so required, and any assistance required shall be
provided to the Collateral Agent. If a third party handles the electronic processing of data,
the Transferor hereby assigns to the extent legally possible to the Collateral Agent, who
hereby accepts such assignment, all rights against such third party relating to these
services, and instructs such third party to handle the processing of data for the Collateral
Agent upon its demand as it did for the Transferor. The Collateral Agent shall only make use
of such rights if an Enforcement Event has occurred and is continuing

- 14 -

 

	12.3	 	At all times other than during the continuation of an Enforcement Event, the Collateral Agent
authorises the Transferor to exercise the rights assigned to the Collateral Agent pursuant to
Clause   12.1 and Clause   12.2 above.
	 
	13.	 	FURTHER ASSURANCE

	 	 	Insofar as additional declarations or actions are necessary for the transfer of title of any
part of the Collateral the Transferor shall subject to the terms of the Principal Finance
Documents, at the Collateral Agent’s request, acting reasonably, make such declarations or
undertake such actions; it being understood that the Collateral Agent may only demand
registration of the transfer of title if an Enforcement Event has occurred and is
continuing, unless the registration is necessary to perfect the assignment and transfer of
the Collateral, in which case the Collateral Agent is entitled to be registered before the
occurrence of an Enforcement Event which is continuing.
	 
	14.	 	DELEGATION

	 	 	The Collateral Agent shall have full power to delegate (either generally or specifically)
the powers, authorities and discretions conferred on it by this Agreement on such terms and
conditions as it shall see fit. The Collateral Agent shall only remain liable for diligently
selecting and providing initial instructions to such delegate.
	 
	15.	 	INDEMNITY

	 	 	To the extent set out in the First Lien Intercreditor Credit Agreement, the Transferor
shall, notwithstanding any release or discharge of all or any part of the security,
indemnify the Collateral Agent, its agents, its attorneys and any delegate against any
action, proceeding, claims, losses, liabilities, damages, expenses, demands, taxes, losses
and costs which it may sustain as a consequence of any breach by the Transferor 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 Collateral.
	 
	16.	 	NO LIABILITY

	 	 	Except to the extent provided in the Principal Finance Documents, none of the Collateral
Agent, its nominee(s) or agent(s) or delegate(s) shall be liable by reason of (a) taking any
action permitted by this Agreement or (b) any neglect or default in connection with the
assets and rights subject to the security interest created hereunder, save in respect of any
loss or damage which is suffered as a result of wilful misconduct (Vorsatz) or gross
negligence (grobe Fahrlässigkeit) by the Collateral Agent, its nominee(s) or agent(s) or
delegate(s), or (c) the enforcement or realisation of all or any part of the security
interest created hereunder.
	 
	17.	 	DURATION AND INDEPENDENCE

	17.1	 	This Agreement shall create a continuing security and no change, amendment, or supplement
whatsoever in the Credit Documents or in any document or agreement relating to any of the
Credit Documents shall affect the validity or the scope of this Agreement nor the obligations,
which are imposed on the Transferor pursuant to it.

- 15 -

 

	17.2	 	This Agreement is independent from any other security or guarantee which may have been or
will be given to the Secured Parties or the Collateral Agent. None of such other security
shall prejudice, or shall be prejudiced by, or shall be merged in any way with, this
Agreement.

	17.3	 	Waiving Section 418 of the German Civil Code (applied by analogy), the Transferor hereby
agrees that the security created hereunder shall not be affected by any transfer or assumption
of the Obligations to, or by, any third party.

	18.	 	RELEASE (SICHERHEITENFREIGABE)

	18.1	 	Upon complete and irrevocable satisfaction of the Obligations, the Collateral Agent (as
instructed in accordance with the First Lien Intercreditor Agreement) will as soon as
reasonably practicable at the cost and expense of the Transferor retransfer and re-assign the
Collateral and all other rights and claims assigned or transferred to it pursuant to this
Agreement to the Transferor and surrender the excess proceeds, if any, resulting from any sale
of the Collateral. The Collateral Agent will, however, transfer any of the Collateral to a
third person if so required by law.

	18.2	 	At any time when the total value of the aggregate security granted by the Transferor and the
other Grantors to secure the Obligations (the “Security”) which can be expected to be realised
in the event of an enforcement of the Security (realisierbarer Wert) exceeds 110% of the
Obligations (the “Limit”), the Collateral Agent shall on demand of the Transferor release such
part of the Security (Sicherheitenfreigabe) as the Collateral Agent may in its reasonable
discretion (as instructed in accordance with the First Lien Intercreditor Agreement) determine
so as to reduce the realisable value of the Security to the Limit.

	18.3	 	The Collateral Agent (as instructed in accordance with the First Lien Intercreditor
Agreement) will as soon as reasonably practicable declare in writing the release of the
security created hereunder and retransfer and reassign the Collateral to the Transferor in
accordance with, and to the extent required by, the Intercreditor Arrangements.
	 
	19.	 	PARTIAL INVALIDITY, WAIVER

	19.1	 	If at any time, any one or more of the provisions hereof is or becomes invalid, illegal or
unenforceable in any respect under the law of any jurisdiction, such provision shall as to
such jurisdiction, be ineffective to the extent necessary without affecting or impairing the
validity, legality and enforceability of the remaining provisions hereof or of such provisions
in any other jurisdiction. The invalid, illegal or unenforceable provision shall be deemed
replaced with a valid, legal or enforceable provision which comes as close as possible to the
original intent of the parties and the invalid, illegal or unenforceable provision. Should a
gap (Regelungslücke) become evident in this Agreement, such gap shall, without affecting or
impairing the validity, legality and enforceability of the remaining provisions hereof, be
deemed to be filled in with such provision as comes as close as possible to the original
intent of the parties.

	19.2	 	No failure to exercise, nor any delay in exercising, on the part of the Collateral Agent, any
right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right or remedy prevent any further or other exercise thereof or the exercise
of any other right or remedy. The rights and remedies provided

- 16 -

 

	 	 	hereunder are cumulative and not exclusive of any rights or remedies provided by law.

20. AMENDMENTS

	 	 	Changes and amendments to this Agreement including this Clause 20 shall be made in
writing.

21.  NOTICES AND THEIR LANGUAGE

	21.1	 	All notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent
by fax, as follows:

	 	 	 	 	 
	For the Transferor:	 	SIG Technology AG	 	 
	 

	 	Address:
	 	Laufengasse 18, CH-8212 
Neuhausen am
Rheinfall,

Switzerland
	 
	 	 	 	 
	 

	 	Fax:
	 	+41 52 674 65 74
	 
	 	 	 	 
	 

	 	Attention:
	 	Head of legal corporate
	 
	 	 	 	 
	with a copy to:
	 	 	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	c/o Rank Group Limited

Level 9

148 Quay Street

PO Box 3515

Auckland 1140

New Zealand
	 
	 	 	 	 
	 

	 	Telephone:
	 	+649 3666 259
	 
	 	 	 	 
	 

	 	Fax:
	 	+649 3666 263
	 
	 	 	 	 
	 

	 	Attention:
	 	Helen Golding

	 	 	 	 	 
	For the Collateral Agent:	 	The Bank of New	 	 
	 	 	York Mellon	 	 
	 

	 	Address:
	 	101 Barclay Street, 4E

New York, N.Y. 10286

The United States of America
	 
	 	 	 	 
	 

	 	Telephone:
	 	+212 298 1528
	 
	 	 	 	 
	 

	 	Fax:
	 	+218 815 5366
	 
	 	 	 	 
	 

	 	Attention:
	 	International Corporate Trust

- 17 -

 

	21.2	 	Any party hereto may change its address or fax number for notices and other communications
hereunder by notice to the other parties hereto. As agreed to in writing in accordance with
the First Lien Intercreditor Agreement, notices and other communications hereunder may also be
delivered by e-mail to the e-mail address of a representative of the applicable party to this
Agreement provided from time to time by such party.
	 
	21.3	 	All notices and other communications given to any party in connection with this Agreement in
accordance with the provisions of this Agreement shall be deemed (widerlegbare Vermutung)
received on the date sent (if a business day) and on the next business day thereafter (in all
other cases) if delivered by hand or overnight courier service or sent by fax or on the date
five business days after dispatch by certified or registered mail if mailed, in each case
delivered, sent or mailed (properly addressed) to such party as provided in this Clause  21 or
in accordance with the latest unrevoked direction from such party given in accordance with
this Clause   21.
	 
	21.4	 	Any notice or other communication under or in connection with this Agreement shall be in the
English language or, if in any other language, accompanied by a translation into English. In
the event of any conflict between the English text and the text in any other language, the
English text shall prevail.
	 
	22.	 	APPLICABLE LAW, JURISDICTION
	 
	22.1	 	This Agreement is governed by the laws of the Federal Republic of Germany.
	 
	22.2	 	The place of jurisdiction for any and all disputes arising under or in connection with this
Agreement shall be the district court (Landgericht) in Frankfurt am Main. The Collateral Agent
however, shall also be entitled to take action against the Transferor in any other court of
competent jurisdiction. Further, the taking of proceedings against the Transferor in any one
or more jurisdictions shall not preclude the taking of proceedings in any other jurisdiction
(whether concurrently or not) if and to the extent permitted by applicable law.
	 
	23.	 	CONCLUSION OF THIS AGREEMENT (VERTRAGSSCHLUSS)
	 
	23.1	 	The parties to this Agreement may choose to conclude this Agreement by an exchange of signed
signature page(s), transmitted by means of telecommunication (telekommunikative Übermittlung)
by fax or attached as an electronic photocopy (pdf., tif., etc.) to an e-mail.
	 
	23.2	 	If the parties to this Agreement choose to conclude this Agreement pursuant to
sub-Clause  23.1 above, they will transmit the signed signature page(s) of this Agreement to
the attention of Mr. Philipp Kropatscheck or Ms Corinna May
(Philipp.Kropatschek@cliffordchance.com or Corinna.May@cliffordchance.com, fax: +49 69 7199
4000) (each a “Recipient”). The Agreement will be considered concluded once any of the
Recipients has actually received the signed signature

- 18 -

 

	 	 	page(s) (Zugang der Unterschriftsseite(n)) from all parties to this Agreement and at the
time of the receipt of the last outstanding signature page(s).

	23.3	 	For the purposes of this Clause   23 only, the parties to this Agreement appoint each
Recipient individually as their attorney (Empfangsvertreter) and expressly allow (gestatten)
each Recipient to collect the signed signature page(s) from all and for all parties to this
Agreement. For the avoidance of doubt, each Recipient will have no further duties connected
with its position as Recipient. In particular, each Recipient may assume the conformity to the
authentic original(s) of the signature page(s) transmitted to it by means of
telecommunication, the genuineness of all signatures on the original signature page(s) and the
signing authority of the signatories.

- 19 -

 

SCHEDULE 1

LIST OF CURRENT BORROWERS, CURRENT GUARANTORS AND CURRENT SENIOR SECURED NOTE GUARANTORS

PART 1 — THE CURRENT BORROWERS

SIG Euro Holding AG & Co. KGaA

Closure Systems International Holding Inc.

Closure Systems International B.V.

SIG Austria Holding GmbH

Reynolds Consumer Products Holdings Inc.

Reynolds Group Holdings Inc.

PART 2 — THE CURRENT GUARANTORS

SIG Holdings (UK) Limited (England and Wales)

SIG Combibloc Limited (England and Wales)

SIG Euro Holding AG & Co. KGaA (Germany)

SIG Beverages Germany GmbH (Germany)

SIG Combibloc Holding GmbH (Germany)

SIG Vietnam Beteiligungs GmbH (Germany)

SIG Combibloc GmbH (Germany)

SIG Combibloc Systems GmbH (Germany)

SIG Combibloc Zerspanungstechnik GmbH (Germany)

SIG Information Technology GmbH (Germany)

SIG International Services GmbH (Germany)

Beverage Packaging Holdings (Luxembourg) I S.A. (Luxembourg)

Beverage Packaging Holdings (Luxembourg) III S.à r.l. (Luxembourg)

SIG Finance (Luxembourg) S.à.r.l. (Luxembourg)

Reynolds Group Holdings Limited (New Zealand)

SIG Combibloc Group AG (Switzerland)

- 20 -

 

SIG Finanz AG (Switzerland)

SIG Technology AG (Switzerland)

SIG allCap AG (Switzerland)

SIG Combibloc (Schweiz) AG (Switzerland)

SIG Schweizerische Industrie-Gesellschaft AG (Switzerland)

SIG Combibloc Procurement AG (Switzerland)

SIG Holding USA Inc. (USA)

SIG Combibloc Inc. (USA)

Reynolds Group Holdings Inc. (USA)

Reynolds Group Issuer Inc. (USA)

Reynolds Group Issuer LLC (USA)

CSI Latin American Holdings Corporation (BVI)

Closure Systems International (Canada) Limited (Canada)

CSI Closure Systems Manufacturing de Centro America, S.R.L. (Costa Rica)

Closure Systems International (UK) Limited (England and Wales)

Reynolds Consumer Products (UK) Limited (England and Wales)

BACO Consumer Products Limited (England and Wales)

Closure Systems International Holdings (Germany) GmbH (Germany)

Closure Systems International Deutschland GmbH (Germany)

Closure Systems International Holdings (Japan) KK (Japan)

Closure Systems International Japan, Limited (Japan)

Closure Systems International (Luxembourg) S.à r.l. (Luxembourg)

Reynolds Consumer Products (Luxembourg) S.à r.l. (Luxembourg)

Reynolds Group Issuer (Luxembourg) S.A. (Luxembourg)

Closure Systems International B.V. (The Netherlands)

Reynolds Consumer Products International B.V. (The Netherlands)

Closure Systems International Holdings Inc. (Delaware, USA)

- 21 -

 

Closure Systems International Inc. (Delaware, USA)

Reynolds Packaging Machinery Inc. (Delaware, USA)

Closure Systems Mexico Holdings LLC (Delaware, USA)

CSI Mexico LLC (Delaware, USA)

Southern Plastics, Inc. (Louisiana, USA)

CSI Sales & Technical Services Inc. (Delaware, USA)

Reynolds Consumer Products Holdings Inc. (Delaware, USA)

Bakers Choice Products, Inc. (Delaware, USA)

Reynolds Consumer Products Inc. (Delaware, USA)

Reynolds Foil Inc. (Delaware, USA)

Reynolds Services Inc. (Delaware, USA)

PART 3 — LIST OF CURRENT SENIOR SECURED NOTE GUARANTORS

SIG Holdings (UK) Limited (England and Wales)

SIG Combibloc Limited (England and Wales)

SIG Euro Holding AG & Co. KGaA (Germany)

SIG Beverages Germany GmbH (Germany)

SIG Combibloc Holding GmbH (Germany)

SIG Vietnam Beteiligungs GmbH (Germany)

SIG Combibloc GmbH (Germany)

SIG Combibloc Systems GmbH (Germany)

SIG Combibloc Zerspanungstechnik GmbH (Germany)

SIG Information Technology GmbH (Germany)

SIG International Services GmbH (Germany)

Beverage Packaging Holdings (Luxembourg) I S.A. (Luxembourg)

Beverage Packaging Holdings (Luxembourg) III S.à r.l. (Luxembourg)

SIG Finance (Luxembourg) S.à.r.l. (Luxembourg)

- 22 -

 

Reynolds Group Holdings Limited (New Zealand)

SIG Combibloc Group AG (Switzerland)

SIG Finanz AG (Switzerland)

SIG Technology AG (Switzerland)

SIG allCap AG (Switzerland)

SIG Combibloc (Schweiz) AG (Switzerland)

SIG Schweizerische Industrie-Gesellschaft AG (Switzerland)

SIG Combibloc Procurement AG (Switzerland)

SIG Holding USA Inc. (USA)

SIG Combibloc Inc. (USA)

Reynolds Group Holdings Inc. (USA)

CSI Latin American Holdings Corporation (BVI)

Closure Systems International (Canada) Limited (Canada)

CSI Closure Systems Manufacturing de Centro America, S.R.L. (Costa Rica)

Closure Systems International (UK) Limited (England and Wales)

Reynolds Consumer Products (UK) Limited (England and Wales)

BACO Consumer Products Limited (England and Wales)

Closure Systems International Holdings (Germany) GmbH (Germany)

Closure Systems International Deutschland GmbH (Germany)

Closure Systems International Holdings (Japan) KK (Japan)

Closure Systems International Japan, Limited (Japan)

Closure Systems International (Luxembourg) S.à r.l. (Luxembourg)

Reynolds Consumer Products (Luxembourg) S.à r.l. (Luxembourg)

Closure Systems International B.V. (The Netherlands)

Reynolds Consumer Products International B.V. (The Netherlands)

Closure Systems International Holdings Inc. (Delaware, USA)

Closure Systems International Inc. (Delaware, USA)

- 23 -

 

Reynolds Packaging Machinery Inc. (Delaware, USA)

Closure Systems Mexico Holdings LLC (Delaware, USA)

CSI Mexico LLC (Delaware, USA)

Southern Plastics, Inc. (Louisiana, USA)

CSI Sales & Technical Services Inc. (Delaware, USA)

Reynolds Consumer Products Holdings Inc. (Delaware, USA)

Bakers Choice Products, Inc. (Delaware, USA)

Reynolds Consumer Products Inc. (Delaware, USA)

Reynolds Foil Inc. (Delaware, USA)

Reynolds Services Inc. (Delaware, USA)

- 24 -

 

SCHEDULE 2

LIST OF PATENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Title	 	Appl.-No.	 	Publ.-No.	 	Reg.-Nr.
	DE

	 	Verfahren zum Applizieren eines
wiederverschließbaren
Ausgießelements an einen Behälter
und danach hergestellter Behälter
	 	 	03763747.7	 	 	 	1504392	 	 	DE 503 05 646 (EP 1504392)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Vorrichtung und Verfahren zum
Betreiben von kontinuierlich auf
Trägerelementen bereitgestellten
Packungen
	 	 	10328545.8-27	 	 	 	10328545	 	 	DE 103 28 545.8-27
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Vorrichtung und Verfahren zum
Bearbeiten von kontinuierlich auf
Trägerelementen bereitgestellten
Packungen
	 	 	04785810.5	 	 	 	1636097	 	 	DE 50 2004 002 026 (EP 1636097)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Vorrichtung und Verfahren zum
Befestigen von Verschlussfolien an
auf Verbundpackungen angeordneten
Ausgießelementen
	 	 	04763777.2	 	 	 	1590246	 	 	DE 50 2004 001 899 (EP 1590246)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Vorrichtung zum Verpressen von
mindestens zwei Lagen eines
gefalteten Bodens einer
Mehrschichtverbundpackung und eine
Mehrschichtverbundpackungen
	 	 	05788535.2	 	 	 	1805004	 	 	DE 50 2004 003 143 (EP 1805004)

- 25 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Title	 	Appl.-No.	 	Publ.-No.	 	Reg.-Nr.
	DE

	 	Ventil zum Abfüllen fließfähiger
Produkte mit und ohne stückigen
Anteil
	 	 	05700866.6	 	 	 	1708925	 	 	DE 50 2005 001 249 (EP 1708925)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Vorrichtung zum kontinuierlichen
Falten von Zuschnitten aus
Karton/Kunststoff-Verbundmaterial
	 	 	102004026690.5-27	 	 	 	 	 	 	DE 10 2004 026 690.5-09
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Vorrichtung zur gleichmäßigen
Verteilung eines gasförmigen
Fluids
	 	 	102005004658.4-27	 	 	 	 	 	 	DE 10 2005 004 658.4-09
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Ausgießelement für eine Packung
zur Aufnahme fließfähiger Produkte
und Verfahren zur Herstellung
einer solchen Packung
	 	 	102005010547.5-27	 	 	 	102005010547	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Ausgießelement für eine Packung
zur Aufnahme fließfähiger Produkte
und Verfahren zur Herstellung
einer solchen Packung
	 	 	06708427.7	 	 	 	1853485	 	 	DE 50 2006 001 683 (EP 1853485)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Vorrichtung zum Sterilisieren
kontinuierlich hintereinander
transportierter Behälter
	 	 	102005047427.6-41	 	 	 	 	 	 	DE 10 2005 047 427.6-09

- 26 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Title	 	Appl.-No.	 	Publ.-No.	 	Reg.-Nr.
	DE

	 	Vorrichtung zum Sterilisieren
kontinuierlich hintereinander
transportierter Behälter
	 	 	06793759.9	 	 	 	1928749	 	 	DE 50 2006 004 759 (EP 1928749.9)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Wiederverschließbares
Ausgießelement für ein
Karton/Kunststoff-Verbundpackungen
abgefüllte flüssige Lebensmittel
und Verfahren zu seiner Montage
	 	 	102006015525.4-27	 	 	 	 	 	 	DE 10 2006 015 525.4-09
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Wiederverschließbares
Ausgießelement für ein
Karton/Kunststoff-Verbundpackungen
abgefüllte flüssige Lebensmittel
	 	 	07727519.6	 	 	 	1866211	 	 	DE 50 2007 000 059 (EP 1866211)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Wiederverschließbares
Ausgießelement für ein
Karton/Kunststoff-Verbundpackungen
	 	 	07727724.2	 	 	 	1863717	 	 	DE 50 2007 000 808 (EP 1863717)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Verfahren und Vorrichtung zum

gleichzeitigen Reinigen mehrere

Rohrleitungen oder

Rohrleitungssysteme
	 	 	102007022798.3-15	 	 	 	DE 10 2007 022 798	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DE

	 	Selbstöffnendes und
wiederverschließbares
Ausgießelement aus Kunststoff zur
Applikation auf einer Packung für
Flüssigkeiten
	 	 	102007057863.8	 	 	 	DE 10 2007 057 863	 	 	 

- 27 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Title	 	Appl.-No.	 	Publ.-No.	 	Reg.-Nr.
	DE

	 	Selbstöffner-Verschluss für
Verbundpackungen oder für mit
Folienmaterial zu verschliessende
Behälter- oder Flaschenstutzen
	 	 	50302529	 	 	 	1513732	 	 	DE 503 02 529 (EP 1513732)

- 28 -

 

SCHEDULE 3

ÜBERTRAGUNGSERKLÄRUNG

(DECLARATION OF ASSIGNMENT)

Die unterzeichnende Firma

The undersigning company

SIG Technology AG

überträgt hiermit mit allen Rechten und Pflichten die in den Anlagen hierzu aufgelisteten Patente
(sowie der Anmeldungen) (die “Schutzrechte”)

herewith assigns and transfers with all rights and duties relating to the patents (including any
applications) listed in the schedules hereto (the “IP Rights”)

auf/to

The Bank of New York Mellon

101 Barclay Street, 4E

New York, N.Y. 10286

The United States of America

und erklärt sich gleichzeitig mit der Umschreibung der Schutzrechte auf die Erwerberin
einverstanden.

and agrees that the assignment of the IP Rights is recorded in the Patent Office.

Ort/Datum:

Place/Date:

Unterschrift/Signature:

Anhang (Liste der Patente nebst Anmeldungen)

- 29 -

 

SIGNATURE PAGE

This SECURITY TRANSFER AND ASSIGNMENT AGREEMENT has been entered into on the date stated at the
beginning by:

SIG TECHNOLOGY AG

as Transferor

	 	 	 	 	 	 	 	 
	By:

	 	/s/ Mark Dunkley
	 	By:
	 	/s/ Philip West
	 

	 	 
	 	 	 	 
	 

	 	Name: MARK DUNKLEY

Title: ATTORNEY
	 	 	 	Name: PHILIP WEST

Title: ATTORNEY

THE BANK OF NEW YORK MELLON

as Collateral Agent

	 	 	 	 	 	 	 	 

	By:

	 	/s/ Maksim Genkin
	 	By:
	 	/s/ Lesley Daley
	 

	 	 
	 	 	 	 
	 

	 	Name: MAKSIM GENKIN

Title: ASSISTANT TREASURER
	 	 	 	Name: LESLEY DALEY

Title: ASSISTANT VICE PRESIDENT

Acknowledged and agreed (including but not limited to the provisions of Clause 3.5)

SIG COMBIBLOC GMBH

	 	 	 	 	 	 	 	 

	By:

	 	/s/ Mark Dunkley
	 	By:
	 	/s/ Philip West
	 

	 	 
	 	 	 	 
	 

	 	Name: MARK DUNKLEY

Title: AUTHORISED SIGNATORY
	 	 	 	Name: PHILIP WEST

Title: AUTHORISED SIGNATORY

SIG COMBIBLOC SYSTEMS GMBH

	 	 	 	 	 	 	 	 

	By:

	 	/s/ Mark Dunkley
	 	By:
	 	/s/ Philip West
	 

	 	 
	 	 	 	 
	 

	 	Name: MARK DUNKLEY

Title: AUTHORISED SIGNATORY
	 	 	 	Name: PHILIP WEST

Title: AUTHORISED SIGNATORY

- 30 -exv4w119

EXHIBIT 4.119

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.

DATED 2 DECEMBER 2009

CLOSURE SYSTEMS INTERNATIONAL B.V.

AS THE CHARGOR

IN FAVOUR OF

THE BANK OF NEW YORK MELLON

AS THE COLLATERAL AGENT

 

SECURITY OVER SHARES AGREEMENT

 

- 1 -

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	1. Definitions And Interpretation
	 	 	2	 
	2. Covenant To Pay And Charge
	 	 	5	 
	3. Deposit Of Certificates, Related Rights And Release
	 	 	5	 
	4. Voting Rights And Dividends
	 	 	6	 
	5. Chargor’s Representation And Undertakings
	 	 	7	 
	6. Further Assurance
	 	 	8	 
	7. Power Of Attorney
	 	 	8	 
	8. Security Enforcement
	 	 	9	 
	9. Receivers And Administrators
	 	 	11	 
	10. Effectiveness Of Collateral
	 	 	13	 
	11. Delegation
	 	 	15	 
	12. Indemnity And Interest
	 	 	15	 
	13. Application Of Proceeds
	 	 	15	 
	14. Other Lien
	 	 	15	 
	15. Suspense Accounts And Currency Indemnity
	 	 	16	 
	16. Assignment
	 	 	17	 
	17. Waivers And Counterparts
	 	 	18	 
	18. Law
	 	 	18	 
	19. Enforcement
	 	 	18	 

- 1 -

 

THIS AGREEMENT is made by way of deed on 2 December 2009

BETWEEN

	(1)	 	CLOSURE SYSTEMS INTERNATIONAL B.V., a private company with limited liability
(besloten vennootschap met beperkte aansprakelijkheid), incorporated under the laws of The
Netherlands, having its corporate seat (statutaire zetel) in Amsterdam, The Netherlands and
its registered address at Teleportboulevard 140, 1043 EJ Amsterdam, The Netherlands, Chamber
of Commerce registration number 34291082 (the “Chargor”); and
	 
	(2)	 	THE BANK OF NEW YORK MELLON in its capacity as collateral agent for the Secured
Parties as appointed under the First Lien Intercreditor Agreement (the “Collateral Agent”).

RECITALS:

	(A)	 	Further to the Credit Agreement (as defined below) certain lenders and financial
institutions agree to make available to the borrowers therein certain facilities (the
“Facilities”) on the terms set out in the Credit Agreement.
	 
	(B)	 	Further to the Senior Secured Note Indenture (as defined below), the Issuers (as
defined below) intend to issue certain notes (the “Notes”).
	 
	(C)	 	The Chargor intends to provide security in respect of the Facilities and the Notes.
	 
	(D)	 	It is intended by the parties to this Agreement that this document will take effect
as a deed despite the fact that a party may only execute this Agreement under hand.
	 
	(E)	 	The Collateral Agent is acting under and holds the benefit of the rights conferred
upon it in this Agreement on trust for the Secured Parties.

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:
	 
	 	 	 “Additional Agreement” has the meaning given to that term in the First Lien Intercreditor
Agreement.
	 
	 	 	 “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.
	 
	 	 	 “Applicable Representative” has the meaning given to that term in the First Lien
Intercreditor Agreement.
	 
	 	 	 “Charged Portfolio” means the Shares and the Related Assets.

- 2 -

 

	 	 	“Collateral Rights” means all rights, powers and remedies of the Collateral Agent provided
by or pursuant to this Agreement or by law.
	 
	 	 	 “Credit Agreement” means the Credit Agreement dated as of 5 November 2009 among Reynolds
Group Holdings Inc., Reynolds Consumer Products Holdings Inc., SIG Euro Holding AG & Co. KG
aA, Closure Systems International Holdings Inc., Closure Systems International 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 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 11 (Delegation) of
this Agreement.
	 
	 	 	 “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 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.
	 
	 	 	 “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” 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).
	 
	 	 	 “Principal Finance Documents” means the Credit Agreement, the Senior Secured Note Indenture,
the Intercreditor Arrangements and any Additional Agreement.

- 3 -

 

	 	 	 “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 Portfolio and that term will
include any appointee made under a joint and/or several appointment.
	 
	 	 	 “Related Assets” means all dividends, interest and other monies at any time payable at any
time in respect of the Shares and all other rights, benefits and proceeds in respect of
or derived from the Shares (whether by way of redemption, bonus, preference, option,
substitution, conversion or otherwise) held by, to the order or on behalf of the Chargor at
any time.
	 
	 	 	 “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. No obligations shall be included in
the definition of “Secured Liabilities” to the extent that, if included, the security
interest granted pursuant to this Agreement or any part thereof would be void as a result of
a violation of the prohibition on financial assistance as contained in Articles 2:98c and
2:207c of the Dutch Civil Code or any other applicable financial assistance rules under any
relevant jurisdiction (the “Prohibition”) and all provisions hereof will be construed
accordingly. For the avoidance of doubt, this Agreement will continue to secure those
obligations which, if included in the definition of “Secured Liabilities”, would not
constitute a violation of the Prohibition.
	 
	 	 	 “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 as of 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 Closure Systems International (UK)
Limited a company incorporated under the laws of England and Wales with company number
06474959 held by, to the order or on behalf of the Chargor at any time.
	 
	1.2	 	Terms defined in the First Lien Intercreditor Agreement
	 
	 	 	Unless defined in this Agreement or the context otherwise requires, a term defined in
the First Lien Intercreditor Agreement has the same meaning in this Agreement or any notice
given under or in connection with this Agreement.

- 4 -

 

	1.3	 	Construction

	 	(a)	 	The rules of interpretation contained in the First Lien Intercreditor Agreement
will apply as if incorporated in this Agreement or in any notice given under or in
connection with this Agreement; and
	 
	 	(b)	 	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.

	2.	 	COVENANT TO PAY AND CHARGE
	 
	2.1	 	Covenant to Pay
	 
	 	 	The Chargor covenants with the Collateral Agent that it shall discharge each of the
Secured Liabilities on their due date in accordance with their respective terms.
	 
	2.2	 	Further advances

	 	(a)	 	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 Agreement as if set out in this Agreement.
	 
	 	(b)	 	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 Agreement as if set out in this
Agreement.

	2.3	 	Charge
	 
	 	 	The Chargor charges the Charged Portfolio with full title guarantee and by way of first
fixed charge, in favour of the Collateral Agent, as continuing security for the payment and
discharge of the Secured Liabilities.
	 
	3.	 	DEPOSIT OF CERTIFICATES, RELATED RIGHTS AND RELEASE
	 
	3.1	 	Deliverables
	 
	 	 	The Chargor will on the date of this Agreement (or promptly upon coming into possession
of the Chargor at any time) deposit (or procure there to be deposited) with the Collateral
Agent all certificates and other documents of title to the Shares, and stock transfer forms
(executed in blank by or on behalf of the Chargor) in respect of the Shares.
	 
	3.2	 	Related Assets
	 
	 	 	The Chargor shall, promptly upon the accrual, offer or issue of any stocks, shares,
warrants or other securities in respect of or derived from the Shares, procure the delivery
to the Collateral Agent of (a) all certificates and other documents of title representing
such items and (b) such duly executed blank stock transfer forms or other instruments of
transfer in respect thereof as the Collateral Agent may reasonably request.

- 5 -

 

	3.3	 	Release
	 
	 	 	The security constituted by this Agreement shall be released and cancelled:

	 	(a)	 	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
	 
	 	(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
English law).

	4.	 	VOTING RIGHTS AND DIVIDENDS
	 
	4.1	 	Voting rights and dividends before an Enforcement Event
	 
	 	 	If an Enforcement Event is not continuing, the Chargor shall:

	 	(a)	 	be entitled to all dividends, interest and other monies or distributions
arising from the Charged Portfolio to the extent the same are permitted to be paid
under the Principal Finance Documents; and
	 
	 	(b)	 	be entitled to exercise all voting rights in relation to the Charged Portfolio
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 Closure Systems International
(UK) Limited, which would adversely affect the validity or enforceability of the
security created by this Agreement or which would cause the occurrence of an
Enforcement Event.

	4.2	 	Voting rights and dividends after an Enforcement Event
	 
	 	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent may, at its
discretion, (in the name of the Chargor or otherwise and without any further consent or
authority from the Chargor):

	 	(a)	 	exercise (or refrain from exercising) any voting rights in respect of the
Charged Portfolio;
	 
	 	(b)	 	apply all dividends, interest and other monies arising from the Charged
Portfolio in accordance with Clause 13 (Application of Proceeds);
	 
	 	(c)	 	transfer the Charged Portfolio into the name of the Collateral Agent or such
nominee(s) of the Collateral Agent as it shall require; and
	 
	 	(d)	 	exercise (or refrain from exercising) the powers and rights conferred on or
exercisable by the legal or beneficial owner of the Charged Portfolio,

- 6 -

 

	 	 	 	including the right, in relation to Closure Systems International (UK) Limited, to concur or
participate in:

	 	(i)	 	the reconstruction, amalgamation, sale or other disposal of such
company or any of its assets or undertaking (including the exchange,
conversion or reissue of any shares or securities as a consequence thereof),
	 
	 	(ii)	 	the release, modification or variation of any rights or liabilities
attaching to such shares or securities, and
	 
	 	(iii)	 	the exercise, renunciation or assignment of any right to subscribe
for any shares or securities,

	 	 	in each case in the manner and on the terms the Collateral Agent thinks fit, and the
proceeds of any such action shall form part of the Charged Portfolio.

	5.	 	CHARGOR’S REPRESENTATION AND UNDERTAKINGS 
	 
	5.1	 	Undertakings

	 	(a)	 	Disposals and Negative pledge
	 
	 	 	 	Unless permitted by this Agreement or the Principal Finance Documents, the Chargor
shall not enter into a single transaction or a series of transactions (whether
related or not) and whether voluntarily or involuntarily, to sell, lease, transfer
or otherwise dispose of the whole or any part of the Charged Portfolio and will not
create or permit to subsist any security interest on any part of the Charged
Portfolio or otherwise deal with any part of the Charged Portfolio, in each case
without the consent of the Collateral Agent (acting on the instructions of the
Applicable Representative).
	 
	 	(b)	 	Calls on Shares
	 
	 	 	 	The Chargor undertakes to pay all calls or other payments when due in respect of
any part of the Charged Portfolio. If the Chargor fails to make any such payment
(of which the Collateral Agent has actual knowledge) the Collateral Agent may (but
shall not be obliged to) make that payment on behalf of the Chargor and any sums so
paid by the Collateral Agent shall be reimbursed by the Chargor promptly following
demand together with interest on those sums. Such interest shall be calculated
from the date of payment by the Collateral Agent until reimbursed (after, as well
as before, judgment) in accordance with Clause 12.2 (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.

	5.2	 	Representation

	 	(a)	 	Establishments

- 7 -

 

	 	 	 	The Chargor represents it has not registered any “establishments” (as that term is
defined in Part 1 of The Overseas Companies Regulations 2009) with the Registrar of
Companies or, if it has so registered, it has provided to the Collateral Agent
sufficient details to enable an accurate search against it to be undertaken by the
Secured Parties at the Companies Registry.

	6.	 	FURTHER ASSURANCE
	 
	6.1	 	Covenant for Further Assurance
	 
	 	 	Subject to the Agreed Security Principles, the Chargor will 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) for the purposes of (a) exercising the Collateral Rights or
perfecting the Lien created or intended to be created in respect of the Charged Portfolio
(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, the Charged Portfolio) or for
the exercise of the rights, powers and remedies of the Collateral
Agent provided by or pursuant to this Agreement or by law; and/or (b) to facilitate the
realisation of the Charged Portfolio in each case in accordance with the rights vested in it
under this Agreement.
	 
	6.2	 	Prescribed Wording
	 
	 	 	The following covenants shall be implied in respect of any action taken by the Chargor
to comply with its obligations under Clause 6.1 (Covenant for Further Assurance):

	 	(a)	 	the Chargor has the right to take such action in respect of the Charged
Portfolio; and
	 
	 	(b)	 	the Chargor will at its own cost do all that it reasonably can to give the
Collateral Agent or its nominee or Delegate the title and/or rights that it purports to
give.

	7.	 	POWER OF ATTORNEY
	 
	7.1	 	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:

	 	(a)	 	carrying out any obligation imposed on the Chargor by this Agreement 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 Portfolio);
	 
	 	(b)	 	enabling the Collateral Agent to exercise, or delegate the exercise of, all or
any of the Collateral Rights; and

- 8 -

 

	 	(c)	 	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 Chargor under this Clause 7.1 if:

	 	(i)	 	an Enforcement Event has occurred and is continuing; and/or
	 
	 	(ii)	 	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 Party’s Agent),

	 	 	provided further that the Collateral Agent shall not be obliged to exercise the powers
conferred upon it by the Chargor under this Clause 7.1 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.
	 
	7.2	 	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.
	 
	8.	 	SECURITY ENFORCEMENT
	 
	8.1	 	Time for 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
Agreement is immediately enforceable and the Collateral Agent may, without notice to the
Chargor or prior authorisation from any court, in its absolute discretion or shall, if so
instructed by the Applicable Representative:

	 	(a)	 	secure and perfect its title to all or any part of the Charged Portfolio
(including transferring the Charged Portfolio into the name of the Collateral Agent or
its nominees);
	 
	 	(b)	 	enforce all or any part of the Lien created by this Agreement (at the times, in
the manner and on the terms it thinks fit) and take possession of and hold, sell, or
otherwise dispose of all or any part of the Charged Portfolio (at the time, in the
manner and on the terms it thinks fit); and
	 
	 	(c)	 	whether or not it has appointed a Receiver, exercise all or any of the powers,
authorisations and discretions conferred by the Law of Property Act 1925 (as

- 9 -

 

	 	 	 	varied or extended by this Agreement) on chargees and by this Agreement on any Receiver or
otherwise conferred by law on chargees or Receivers.

	8.2	 	Power of sale

	 	(a)	 	The power of sale or other disposal conferred on the Collateral Agent and on
the Receiver by this Agreement 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 Agreement.
	 
	 	(b)	 	The restrictions contained in Sections 93 and 103 of the Law of Property Act
1925 shall not apply to this Agreement or to the exercise by the Collateral Agent of
its right to consolidate all or any of the Lien created by or pursuant to this
Agreement 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 if
an Enforcement Event has occurred and is continuing.

	8.3	 	Chargee’s liability
	 
	 	 	Neither the Collateral Agent nor any Receiver will be liable to account as mortgagee or
mortgagee in possession in respect of the Charged Portfolio or be liable for any loss upon
realisation or for any neglect, default or omission of any nature whatsoever in connection
with the Charged Portfolio for which a mortgagee or mortgagee in possession might as such be
liable.
	 
	8.4	 	Right of Appropriation
	 
	 	 	To the extent that any of the Charged Portfolio constitutes “financial collateral” and
this Agreement 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 the market price of the 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. The parties agree that the method of
valuation provided for in this Agreement shall constitute a commercially reasonable method
of valuation for the purposes of the Regulations.
	 
	8.5	 	Statutory powers
	 
	 	 	The powers conferred by this Agreement on the Collateral Agent are in addition to and
not in substitution for the powers conferred on mortgagees and mortgagees in possession
under the Law of Property Act 1925, the Insolvency Act 1986 or otherwise by law and in the
case of any conflict between the powers contained in any such Act and those conferred by
this Agreement the terms of this Agreement will prevail.

- 10 -

 

	9.	 	RECEIVERS AND ADMINISTRATORS
	 
	9.1	 	Appointment and removal
	 
	 	 	At any time after having been requested to do so by the Chargor or if the security
created by this Agreement is enforceable in accordance with Clause 8 (Security Enforcement),
the Collateral Agent may by deed or otherwise (acting through an authorised officer of the
Collateral Agent), without prior notice to the Chargor:

	 	(a)	 	appoint one or more persons to be a Receiver of the whole or any part of the
Charged Portfolio;
	 
	 	(b)	 	remove (so far as it is lawfully able) any Receiver so appointed;
	 
	 	(c)	 	appoint another person(s) as an additional or replacement Receiver(s); and
	 
	 	(d)	 	appoint one or more persons to be an administrator of the Chargor.

	9.2	 	Capacity of Receivers
	 
	 	 	Each person appointed to be a Receiver pursuant to Clause 9.1 (Appointment and removal)
will be:

	 	(a)	 	entitled to act individually or together with any other person appointed or
substituted as Receiver;
	 
	 	(b)	 	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 his
remuneration and no Receiver shall at any time act as agent for the Collateral
Agent; and
	 
	 	(c)	 	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).

	9.3	 	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 Agreement) or otherwise and such powers shall remain exercisable from time
to time by the Collateral Agent in respect of any part of the Charged Portfolio.
	 
	9.4	 	Powers of Receivers
	 
	 	 	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 Portfolio in respect of which he was appointed, and as
varied and extended by the provisions of this Agreement (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):

	 	(a)	 	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;

- 11 -

 

	 	(b)	 	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);
	 
	 	(c)	 	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;
	 
	 	(d)	 	the power to delegate (either generally or specifically) the powers,
authorities and discretions conferred on it by this Agreement or any of the Principal
Finance Documents (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
Receiver itself; and
	 
	 	(e)	 	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:

	 	(i)	 	any of the functions, powers, authorities or discretions conferred on
or vested in him;
	 
	 	(ii)	 	the exercise of any rights, powers and remedies of the Collateral
Agent provided by or pursuant to this Agreement or by law (including
realisation of all or any part of the Charged Portfolio); or
	 
	 	(iii)	 	bringing to his hands any assets of the Chargor forming part of, or
which when got in would be, Charged Portfolio.

	9.5	 	Consideration
	 
	 	 	The receipt of the Collateral Agent or any Receiver shall be a conclusive discharge to
a purchaser and, in making any sale or disposal of any of the Charged Portfolio 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.
	 
	9.6	 	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.
	 
	9.7	 	Discretions
	 
	 	 	Any liberty or power which may be exercised or any determination which may be made
under this Agreement 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 Agreement, be exercised or made in its absolute and unfettered
discretion without any obligation to give reasons.

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	10.	 	EFFECTIVENESS OF COLLATERAL
	 
	10.1	 	Collateral Cumulative
	 
	 	 	The collateral constituted by this Agreement and the Collateral Rights shall be
cumulative, in addition to and independent of every other security which the Collateral
Agent or any other Secured Party may at any time hold for the Secured Liabilities or any
rights, powers and remedies provided by law. No prior security held by the Collateral Agent
or any other Secured Party over the whole or any part of the Charged Portfolio shall merge
into the collateral constituted by this Agreement.
	 
	10.2	 	No Waiver
	 
	 	 	No failure to exercise, nor any delay in exercising, on the part of the Collateral
Agent, any right, power or remedy of the Collateral Agent provided by this Agreement or by
law shall operate as a waiver, nor shall any single or partial exercise of that right, power
or remedy prevent any further or other exercise of that or any other right, power or remedy
of the Collateral Agent provided by this Agreement or by law.
	 
	10.3	 	Illegality, Invalidity, Unenforceability
	 
	 	 	If, at any time, any provision of this Agreement 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 Agreement nor the legality,
validity or enforceability of such provision under the law of any other jurisdiction will in
any way be affected or impaired and if any part of the security intended to be created by or
pursuant to this Agreement is invalid, unenforceable or ineffective for any reason, that
shall not affect or impair any other part of the security.
	 
	10.4	 	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 Charged Portfolio or (c)
the taking possession or realisation of all or any part of the Charged Portfolio, except to
the extent provided in the Principal Finance Documents.
	 
	10.5	 	Implied Covenants for Title

	 	(a)	 	The covenants set out in Sections 3(1), 3(2) and 6(2) of the Law of Property
(Miscellaneous Provisions) Act 1994 will not extend to Clause 2.3 (Charge).
	 
	 	(b)	 	It shall be implied in respect of Clause 2.3 (Charge) that the Chargor is
charging the Charged Portfolio free from all charges and encumbrances (whether monetary
or not) and from all other rights exercisable by third parties (including liabilities
imposed and rights conferred by or under any enactment).

	10.6	 	Continuing Lien

	 	(a)	 	The Lien from time to time constituted by this Agreement is a continuing
security and will remain in full force and effect as a continuing security until
released or discharged by the Collateral Agent.

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	 	(b)	 	No part of the security from time to time constituted by this Agreement will be
considered satisfied or discharged by any intermediate payment, discharge or
satisfaction of the whole or any part of the Secured Liabilities.

	10.7	 	Immediate recourse
	 
	 	 	The Chargor waives any right it may have of first requiring the Collateral Agent or a
Secured Party to proceed against or enforce any other rights or Lien or claim payment from
any person before claiming from the Chargor under this Agreement. This waiver applies
irrespective of any law or any provision of this Agreement to the contrary.
	 
	10.8	 	Avoidance of Payments
	 
	 	 	Notwithstanding Clause 3.3 (Release) if the Collateral Agent considers that any amount
paid or credited to it is capable of being avoided or reduced by virtue of any bankruptcy,
insolvency, liquidation or similar laws the liability of the Chargor under this Agreement
and the security constituted by this Agreement shall continue and that amount shall not be
considered to have been irrevocably paid.
	 
	10.9	 	Waiver of defences
	 
	 	 	The obligations of the Chargor under this Agreement and the Collateral Rights will not
be affected by any act, omission, matter or thing which, but for this Clause 10.9 (Waiver of
defences), would reduce, release or prejudice any of its obligations under this Agreement
and this Lien and whether or not known to the Chargor or the Collateral Agent or any Secured
Party including:

	 	(a)	 	any time, waiver or consent granted to, or composition with, any Loan Party or
other person;
	 
	 	(b)	 	the release of any other Loan Party or any other person under the terms of any
composition or arrangement with any creditor of any Loan Party;
	 
	 	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or neglect to perfect, take up or enforce, any rights against, or Lien over assets of,
any Loan Party or other person or any non-presentment or non-observance of any
formality or other requirement in respect of any instruments or any failure to realise
the full value of any other Lien;
	 
	 	(d)	 	any incapacity or lack of powers, authority or legal personality of or
dissolution or change in the members or status of, any Loan Party or any other person;
	 
	 	(e)	 	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 Loan Document or any document or
security or of the Secured Liabilities;
	 
	 	(f)	 	any unenforceability, illegality or invalidity of any obligation of any person
under any Loan Document or any other document or security or of the Secured
Liabilities; or

- 14 -

 

	 	(g)	 	any insolvency or similar proceedings.

	11.	 	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 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.
	 
	12.	 	INDEMNITY AND INTEREST
	 
	12.1	 	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
Agreement, the exercise or purported exercise of any of the rights and powers conferred on
them by this Agreement or otherwise relating to the Charged Portfolio.
	 
	12.2	 	Interest on Demands
	 
	 	 	Section 2.07 (Default Interest) of the Credit Agreement applies to amounts which the
Chargor fails to pay under this Agreement.
	 
	12.3	 	Payments Free Of Deduction
	 
	 	 	Section 2.20 (Taxes) of the Credit Agreement applies to this Agreement, save that, for
the purposes of this Agreement 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”.
	 
	13.	 	APPLICATION OF PROCEEDS
	 
	 	 	All moneys received or recovered by the Collateral Agent or any Receiver pursuant to
this Agreement 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.
	 
	14.	 	OTHER LIEN
	 
	14.1	 	Redemption or transfer
	 
	 	 	In the event of any action, proceeding or step being taken to exercise any powers or
remedies conferred by any prior ranking Lien in case of exercise by the Collateral

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	 	 	Agent or any Receiver or any Delegate of any power of sale under this Agreement the Collateral Agent
may redeem such prior Lien or procure the transfer thereof to itself.
	 
	14.2	 	Accounts
	 
	 	 	The Collateral Agent may settle and pass the accounts of the prior Lien and any accounts so
settled and passed will be conclusive and binding on the Chargor.
	 
	14.3	 	Costs of redemption or transfer
	 
	 	 	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
together with accrued interest thereon as well as before judgment at the rate from time to
time applicable to unpaid sums specified in the Credit Agreement from the time or respective
times of the same having been paid or incurred until payment thereof (after as well as
before judgment).
	 
	14.4	 	Subsequent Interests
	 
	 	 	If the Collateral Agent (acting in its capacity as security trustee or otherwise) or
any of the Secured Parties at any time receives notice or is deemed to have received notice
of any subsequent Lien affecting all or any part of the Charged Portfolio or any assignment
or transfer of the Charged Portfolio which in either case is prohibited by the terms of this
Agreement or the Principal Finance Documents, all payments made by the Chargor to the
Collateral Agent or any of the Secured Parties after that time 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 notice.
	 
	15.	 	SUSPENSE ACCOUNTS AND CURRENCY INDEMNITY
	 
	15.1	 	Suspense Accounts
	 
	 	 	All monies received, recovered or realised by the Collateral Agent under this Agreement
(including the proceeds of any conversion of currency) may in the discretion of the
Collateral Agent be credited to any interest bearing suspense or impersonal account
maintained with the Collateral Agent or any bank, building society or financial institution
as it considers appropriate and may be held in such account for so long as the Collateral
Agent may think fit (acting on the instructions of the Applicable Representative) pending
their application from time to time (as the Collateral Agent is
entitled to do in its discretion) in or towards the discharge of any of the Secured
Liabilities and save as provided herein no party will be entitled to withdraw any amount at
any time standing to the credit of any suspense or impersonal account referred to above.
	 
	15.2	 	Currency Indemnity

	 	(a)	 	The Secured Liabilities shall be paid in the currency in which it is
denominated at the relevant time, unless the Loan Documents provides otherwise.
	 
	 	(b)	 	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

- 16 -

 

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

	 	(i)	 	any loss sustained by it as a result of the amount purchased by it in
the second currency pursuant to 15.2(b) above being less than the amount due;
and
	 
	 	(ii)	 	all costs and expenses properly incurred by it in purchasing the
second currency,

	 	 	 	in respect of any Secured Liabilities received from the Chargor.

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

	16.	 	ASSIGNMENT
	 
	16.1	 	Permitted Successors
	 
	 	 	The Collateral Agent may assign and transfer all or any of its rights and obligations
under this Agreement to facilitate the performance of its role as Collateral Agent under the
Loan Documents in accordance with the Intercreditor Arrangements. This Agreement shall be
binding upon and shall inure to the benefit of each party and its direct or subsequent legal
successors, permitted transferees and assigns.
	 
	16.2	 	Collateral Agent Successors
	 
	 	 	This Agreement shall remain in effect despite any amalgamation or merger (however
effected) relating to the Collateral Agent; and references to the Collateral Agent shall
include any assignee or successor in title of the Collateral Agent and any person who, under
the laws of its jurisdiction of incorporation or domicile, has assumed the rights and
obligations of the Collateral Agent under this Agreement or to which, under such laws, those
rights and obligations have been transferred.
	 
	16.3	 	Disclosure
	 
	 	 	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 or any other person and this Agreement 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 applicable law.

- 17 -

 

	17.	 	WAIVERS AND COUNTERPARTS
	 
	17.1	 	Waivers
	 
	 	 	No waiver by the Collateral Agent of any of its rights under this Agreement shall be
effective unless given in writing.
	 
	17.2	 	Counterparts
	 
	 	 	This Agreement 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 Agreement.
	 
	18.	 	LAW
	 
	 	 	This Agreement and any non-contractual obligations arising out of or in connection with
it are governed by English law.
	 
	19.	 	ENFORCEMENT
	 
	19.1	 	Jurisdiction of English Courts

	 	(a)	 	The courts of England have exclusive jurisdiction to settle any dispute (a
“Dispute”) arising out of or in connection with this Agreement (including a dispute
regarding the existence, validity or termination of this Agreement or the consequences
of its nullity) or any non-contractual obligations arising out of or in connection with
this Agreement.
	 
	 	(b)	 	The parties agree that the courts of England are the most appropriate and
convenient courts to settle Disputes and accordingly no party will argue to the
contrary.
	 
	 	(c)	 	This Clause 0 (Enforcement) is for the benefit of the Collateral Agent only.
As a result and notwithstanding Clause 19.1(a), 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.

	19.2	 	Service of process
	 
	 	 	Without prejudice to any other mode of service allowed under any relevant law, the
Chargor:

	 	(a)	 	irrevocably appoints Law Debenture Corporate Services Limited as its agent for
service of process in relation to any proceedings before the English courts in
connection with this Agreement; and
	 
	 	(b)	 	agrees that failure by an agent for service of process to notify the Chargor of
the process will not invalidate the proceedings concerned.

THIS AGREEMENT 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.

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EXECUTION PAGE FOR

CLOSURE SYSTEMS INTERNATIONAL B.V. SECURITY OVER SHARES

AGREEMENT

	 	 	 	 	 	 	 
	Chargor
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Signed as a deed by

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	as attorney for

	 	 	)	 	 	 
	Closure Systems International B.V.

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	 
	 
	 	 	PHILIP WEST_________________________

/s/ CHIARA BROPHY                         Signature of witness

 

CHIARA
BROPHY
                             Name of witness

LEVEL
25                                             Address of witness

2 PARK STREET

SYDNEY

LAWYER                                              Occupation of witness

- 19 -

 

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. CORPORATE TRUST	 	 

- 20 -

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