Document:

exv4w427

EXHIBIT 4.427

EQUITY INTERESTS PLEDGE AGREEMENT

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.

This Equity Interests Pledge Agreement (Contrato de Prenda sobre Acciones y Partes Sociales)
is entered into on this 19th day of April, 2011 (the “Agreement”), by and among Grupo CSI
de México, S. de R.L. de C.V. (“Grupo CSI”), Central de Bolsas, S. de R.L. de C.V.
(“Central”), Servicios Industriales Jaguar, S.A. de C.V. (“Servicios
Industriales”), Servicio Terrestre Jaguar, S.A. de C.V. (“Servicio Terrestre”), Grupo
Corporativo Jaguar, S.A. de C.V. (“Corporativo”), Pactiv Corporation (“Pactiv
Corporation”), CSI en Saltillo, S. de R.L. de C.V. (“CSI Saltillo”), and Pactiv
International Holdings Inc. (“Pactiv Holdings”, and collectively with Grupo CSI, Central,
Servicios Industriales, Servicio Terrestre, Corporativo, Pactiv Corporation and CSI Saltillo, the
“Pledgors”), as pledgors, and The Bank of New York Mellon, acting solely in its capacity as
Collateral Agent (as defined below) on behalf and for the benefit of the Secured Parties (as
defined below) (in such capacity, together with its successors and assigns in such capacity, the
“Pledgee”), as pledgee, with the acknowledgment of Pactiv México, S. de R.L. de C.V.
(“Pactiv Mexico”), in accordance with the following Recitals, Representations and
Warranties and Clauses. Capitalized terms used in the Recitals and Representations and Warranties
which are not otherwise defined herein, shall have the meaning ascribed to such terms in Clause
First hereof.

Recitals

     I. Credit Agreement. On November 5, 2009, Reynolds Group Holdings Inc., Reynolds
Consumer Products Holdings Inc., Closure Systems International Holdings Inc., SIG Euro Holding AG
& Co KGaA, SIG Austria Holding Gmbh, Closure Systems International B.V. and Pactiv Corporation, 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 (in such capacity, together
with its successors and assigns in such capacity, the

 

 

“Administrative Agent”), entered into a credit agreement (as most recently amended and
restated by the Amendment No. 4 and Incremental Term Loan Assumption Agreement dated as of
February 9, 2011, and the Amendment No. 5 dated as of March 11, 2011, and as further amended,
extended, restructured, renewed, novated, supplemented, restated, refunded, replaced or modified
from time to time, the “Credit Agreement”).

     II. 2009 Senior Secured Notes Indenture. On November 5, 2009, Reynolds Group Escrow
LLC, Reynolds Group DL Escrow Inc. (the “2009 Escrow Issuers”) and The Bank of New York
Mellon, acting in its capacity as trustee, principal paying agent, transfer agent and collateral
agent, entered into an indenture (as amended, extended, restructured, renewed, refunded, novated,
supplemented, restated, replaced or modified from time to time, the “2009 Senior Secured Notes
Indenture”) pursuant to which certain secured notes (the “2009 Senior Secured Notes”)
were issued by the 2009 Escrow Issuers. On November 5, 2009, the 2009 Senior Secured Notes were
released from escrow and the obligations of the 2009 Escrow Issuers were assumed by Reynolds Group
Issuer LLC, Reynolds Group Issuer Inc. and Reynolds Group Issuer (Luxembourg) S.A., as applicable
(the “Notes Issuers”).

     III. 2010 Secured Notes Indenture. On October 15, 2010, RGHL US Escrow I LLC, RGHL US
Escrow I Inc. and RGHL Escrow Issuer (Luxembourg) I S.A. (the “2010 Escrow Issuers”) and
The Bank of New York Mellon, as trustee, principal paying agent, transfer agent, registrar and
collateral agent and Wilmington Trust (London) Limited, as additional collateral agent, entered
into an indenture (as amended, extended, restructured, renewed, refunded, novated, supplemented,
restated, replaced or modified from time to time, the “2010 Senior Secured Notes
Indenture”) pursuant to which certain secured notes (the “2010 Senior Secured Notes”)
were issued by the 2010 Escrow Issuers. On November 16, 2010, (a) the 2010 Senior Secured Notes
were released from escrow and the obligations of the 2010 Escrow Issuers were assumed by the Notes
Issuers, and (b) the obligations in respect of the 2010 Senior Secured Notes were designated as
“Additional Obligations” under the First Lien Intercreditor Agreement.

     IV. 2011 Senior Secured Notes Indenture. On February 1, 2011, the Notes Issuers and
The Bank of New York Mellon, acting in its capacity as trustee, principal paying agent, transfer
agent and collateral agent and Wilmington Trust (London) Limited, as additional collateral agent,
entered into an indenture (as amended, extended, restructured, renewed, refunded, novated,
supplemented, restated, replaced or modified from time to time, the “2011 Senior Secured Notes
Indenture”) pursuant to which certain secured notes (the “2011 Senior Secured Notes”)
were issued by the Notes Issuers. On the date thereof, the 2011 Senior Secured Notes were
designated as “Additional Obligations” under the First Lien Intercreditor Agreement.

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Representations and Warranties

	I.	 	Each of the Pledgors hereby represents and warrants, with respect to itself, through its
legal representative, that on the date hereof:

	 	(a)	 	(i) Grupo CSI is a sociedad de responsabilidad limitada de capital variable
duly organized and validly existing under the laws of Mexico, as evidenced in public
deed number 1,261, dated April 1, 2008, granted before Mr. Gerardo F. Saavedra Silva,
Commercial Notary Public number 50 of the Federal District, recorded in the Public
Registry of Commerce of Saltillo, Coahuila, under commercial folio number 13612*2;
(ii) Central is a sociedad de responsabilidad limitada de capital variable duly
organized and validly existing under the laws of Mexico, as evidenced in public deed
number 15,890, dated October 21, 2010, granted before Mr. Pablo González Vázquez,
Notary Public number 35 for Zapopan, Jalisco, which was recorded in the Public
Registry of Commerce of Guadalajara, Jalisco, under commercial folio 2332; (iii)
Servicios Industriales is a sociedad anónima de capital variable duly organized and
validly existing under the laws of Mexico, as evidenced in public deed number 3,085,
dated January 1, 1995, granted before Mr. Antonio Garcia Medina, Notary Public number
34 for Guadalajara, Jalisco, which was recorded in the Public Registry of Commerce of
Guadalajara, Jalisco, under inscription number 55-56, volume 560, book first; (iv)
Servicio Terrestre is a sociedad anónima de capital variable duly organized and
validly existing under the laws of Mexico, as evidenced in public deed number 21,531,
dated January 25, 1995, granted before Mr. Miguel Rabago Preciado, Alternate Notary
Public number 42 for Guadalajara, Jalisco, which was recorded in the Public Registry
of Commerce of Guadalajara, Jalisco, under inscription number 61-62, volume 565, book
first; (v) Corporativo is a sociedad anónima de capital variable duly organized and
validly existing under the laws of Mexico, as evidenced in public deed number 3,084,
dated January 1, 1995, granted before Mr. Antonio Garcia Medina, Notary Public number
34 for Guadalajara, Jalisco, which was recorded in the Public Registry of Commerce of
Guadalajara, Jalisco, under inscription number 52-53, volume 560, book first; (vi)
Pactiv Corporation is a corporation, duly organized, validly existing and in good
standing under the laws of Delaware, United States of America; (vii) CSI Saltillo is a
sociedad de responsabilidad limitada de capital variable duly organized and validly
existing under the laws of Mexico, as evidenced in public deed number

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	 	 	 	1259, dated April 1, 2008, granted before Mr. Gerardo F. Saavedra
Silva, Commercial Notary Public number 50 of the Federal District, which was
recorded in the Public Registry of Commerce of Saltillo, Coahuila, under
commercial folio number 9051*2; and (viii) Pactiv Holdings is a corporation,
duly organized, validly existing and in good standing under the laws of
Delaware, United States of America;
	 
	 	(b)	 	CSI Saltillo is the sole, legal and beneficial owner of 1 (one) partnership
interest, representing the outstanding capital of Central, which in the aggregate
represents 99.99% of the total issued and outstanding capital of Central, on a fully
diluted basis (the “CSI Saltillo Pledged Partnership Interest”);
	 
	 	(c)	 	Grupo CSI is the sole, legal and beneficial owner of 1 (one) partnership
interest, representing the outstanding capital of Central, which in the aggregate
represents 00.01% of the total issued and outstanding capital of Central, on a fully
diluted basis (the “Grupo CSI Pledged Partnership Interest”);
	 
	 	(d)	 	Central is the sole, legal and beneficial owner (and registered owner in the
stock registry book of Corporativo, Servicios Industriales, and Servicio Terrestre,
respectively) of and has legal title to (i) 2,430,050 (two million four hundred thirty
thousand and fifty) shares representing $2,430,050.00 M.N. (two million four hundred
thirty thousand fifty Pesos 00/100) of the total issued and outstanding capital stock
of Corporativo (the “Central Corporativo Pledged Shares”); (ii) 49,999 (forty
nine thousand nine hundred and ninety nine) shares representing $49,999.00 M.N. (forty
nine thousand nine hundred ninety nine Pesos 00/100) of the total issued and
outstanding capital stock of Servicios Industriales (the “Central Servicios
Industriales Pledged Shares”); and (iii) 729,549 (sevend hundred twenty nine
thousand five hundred forty nine) shares representing $7,295,490.00 (seven million two
hundred ninety five thousand four hundred ninety Pesos 00/100) of the total issued and
outstanding capital stock of Servicio Terrestre (the “Central Servicio Terrestre
Pledged Shares” and, collectively with the Central Corporativo Pledged Shares and
the Central Servicios Industriales Pledged Shares, the “Central Pledged
Shares”);
	 
	 	(e)	 	Servicios Industriales is the sole, legal and beneficial owner (and
registered owner in the stock registry book of Corporativo) of and has legal title to
28,943 (twenty eight thousand nine hundred forty three) shares representing $28,943.00 M.N. (twenty eight thousand nine

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	 	 	 	hundred forty three Pesos 00/100) of the total issued and outstanding capital stock
of Corporativo (the “Servicios Industriales Pledged Shares”);
	 
	 	(f)	 	Servicio Terrestre is the sole, legal and beneficial owner (and registered
owner in the stock registry book of Servicios Industriales) of and has legal title to
1 (one) share representing $1.00 M.N. (one Peso 00/100) of the total issued and
outstanding capital stock of Servicios Industriales (the “Servicio Terrestre
Pledged Share”);
	 
	 	(g)	 	Corporativo is the sole, legal and beneficial owner (and registered owner in
the stock registry book of Servicio Terrestre) of and has legal title to 1 (one) share
representing $10.00 M.N. (ten Pesos 00/100) of the total issued and outstanding
capital stock of Servicio Terrestre (the “Corporativo Pledged Share”);
	 
	 	(h)	 	Pactiv Corporation is the sole, legal and beneficial owner of 1 (one)
partnership interest, representing the outstanding capital of Pactiv Mexico, which in
the aggregate represents 00.01% of the total issued and outstanding capital of Pactiv
Mexico, on a fully diluted basis (the “Pactiv Corporation Pledged Partnership
Interest”);
	 
	 	(i)	 	Pactiv Holdings is the sole, legal and beneficial owner of 1 (one)
partnership interest, representing the outstanding capital of Pactiv Mexico, which in
the aggregate represents 99.99% of the total issued and outstanding capital of Pactiv
Mexico, on a fully diluted basis (the “Pactiv Holdings Pledged Partnership
Interest”);
	 
	 	(j)	 	the individual executing this Agreement in the name and on behalf of such
Pledgor has sufficient power and authority, as well as the necessary authority
(corporate, organizational or otherwise) to validly execute and deliver this Agreement
on its behalf and to validly bind such Pledgor under the terms herein, and in the case
of Grupo CSI, Central, Servicios Industriales, Servicio Terrestre and Corporativo as
evidenced in public deeds numbers 33,708, 33,710, 33,713, 33,712, and 33,711,
respectively, dated April 4, 2011, granted before Mr. Jose Luis Villavicencio
Castañeda, Notary Public number 218 for Mexico City, and that such powers, authority
and authorizations have not been revoked, modified or limited in any manner; and
	 
	 	(k)	 	with reference to the facts and circumstances then existing and subject to
the provisions of the Loan Documents and the Intercreditor

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	 	 	 	Arrangements, the representations and warranties made by such Pledgor as Loan Party
in Section 3.01 (Organization; Powers), 3.02 (Authorization), 3.03
(Enforceability), 3.06 (No Material Adverse Change), 3.07 (Title to
Properties; Possession under Leases), 3.08 (Subsidiaries), 3.09 (Litigation,
Compliance with Laws), 3.10 (Agreements), 3.19 (Security Documents) and 3.22
(Solvency) of the Credit Agreement, are true and accurate as regards to such
Pledgor and this Agreement.

	II.	 	Pactiv Mexico hereby represents and warrants, through its legal representative, that on the
date hereof:

	 	(a)	 	it is a sociedad de responsabilidad limitada de capital variable duly
organized and validly existing under the laws of Mexico, as evidenced in public deed
number 19, dated February 24, 2004, granted before Ms. Mónica Esnayra Pereyra, Notary
Public number 21 for the Judicial District of Morelos Chihuahua, which was recorded in
the Public Registry of Commerce of Chihuahua under, number 4, page 6, volume 221, book
first;
	 
	 	(b)	 	the individual executing this Agreement in its name and on its behalf has
sufficient power and authority, as well as the necessary authority (corporate,
organizational or otherwise) to validly execute and deliver this Agreement on its
behalf and to validly bind it under the terms herein, as evidenced in public deed
number 33,714, dated April 4, 2011, granted before Mr. Jose Luis Villavicencio
Castañeda, Notary Public number 218 for Mexico City; and that such powers, authority
and authorizations have not been revoked, modified or limited in any manner; and
	 
	 	(c)	 	with reference to the facts and circumstances then existing and subject to
the provisions of the Loan Documents and the Intercreditor Arrangements, the
representations and warranties made by Pactiv Mexico as Loan Party in Section 3.01
(Organization; Powers), 3.02 (Authorization), 3.03 (Enforceability), 3.06 (No Material
Adverse Change), 3.07 (Title to Properties; Possession under Leases), 3.08
(Subsidiaries), 3.09 (Litigation, Compliance with Laws), 3.10 (Agreements), 3.19
(Security Documents) and 3.22 (Solvency) of the Credit Agreement, are true and
accurate as regards to Pactiv Mexico and this Agreement.

     NOW, THEREFORE, based on the Recital and Representations and Warranties contained herein, the
parties hereto agree as follows:

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First. Certain Defined Terms.

(a) 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 and in any notice given under
this Agreement. As used in this Agreement, the following terms shall have the following meanings:

	 	 	“Additional Agreement” shall have the meaning assigned to the term “Additional
Agreement” under, and as defined in, the First Lien Intercreditor Agreement.
	 
	 	 	“Administrative Agent” has the meaning specified in Recital I hereof.
	 
	 	 	“Agreed Security Principles” has the meaning it is given in the Credit Agreement,
the 2009 Senior Secured Notes Indenture, the 2010 Senior Secured Notes Indenture and the
2011 Senior Secured Notes Indenture, and to the extent of any inconsistency the meaning it
is given in the Credit Agreement shall prevail.
	 
	 	 	“Agreement” means this Equity Interests Pledge Agreement, as the same may be
amended, extended, restructured, renewed, novated, supplemented, restated, refunded,
replaced or modified from time to time.
	 
	 	 	“Applicable Representative” shall have the meaning assigned to the term “Applicable
Representative” under, and as defined in, the First Lien Intercreditor Agreement.
	 
	 	 	“Business Day” shall mean a day (other than a Saturday or Sunday) on which banks are
open for business in New York City, New York, United States of America and Mexico.
	 
	 	 	“Central” has the meaning specified in the preamble to this Agreement.
	 
	 	 	“Central Corporativo Pledged Shares” has the meaning set forth in Representation I
(d) of this Agreement.
	 
	 	 	“Central Pledged Shares” has the meaning set forth in Representation I (d) of this
Agreement.
	 
	 	 	“Central Servicio Terrestre Pledged Shares” has the meaning set forth in
Representation I (d) of this Agreement.

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	 	 	“Central Servicios Industriales Pledged Shares” has the meaning set forth in
Representation I (d) of this Agreement.

	 	 	“Collateral Agent” shall mean the Pledgee, in its capacity as collateral agent as
appointed under the First Lien Intercreditor Agreement, and its successors and permitted
assigns in such capacity.

	 	 	“Corporativo” has the meaning specified in the preamble to this Agreement.

	 	 	“Corporativo Pledged Share” has the meaning set forth in Representation I (g) of
this Agreement.

	 	 	“Credit Agreement” shall have the meaning assigned to such term in Recital I hereof.

	 	 	“CSI Saltillo” has the meaning specified in the preamble to this Agreement.

	 	 	“CSI Saltillo Pledged Partnership Interest” has the meaning set forth in
Representation I (b) of this Agreement.

	 	 	“Distributions” has the meaning specified in paragraph (c) of Clause Fourth of this
Agreement.

	 	 	“Event of Default” shall have the meaning assigned to the term “Event of Default”
under, and as defined in, the First Lien Intercreditor Agreement.

	 	 	“First Lien Intercreditor Agreement” shall mean the First Lien Intercreditor
Agreement dated as of November 5, 2009, among the Collateral Agent, The Bank of New York
Mellon, as trustee under the Senior Secured Notes Indenture, Credit Suisse AG (formerly
known as Credit Suisse), as administrative agent under the Credit Agreement and the Loan
Parties, as amended on January 21, 2010 and as further amended, novated, supplemented,
restated or modified from time to time. A copy of the First Lien Intercreditor Agreement and
of its amendment is attached hereto as Exhibit “A”.

	 	 	“Governmental Authority” means any national or federal government, any state,
regional, local or other political subdivision thereof with jurisdiction and any individual
or entity with jurisdiction exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government or quasi-governmental issues
(including any court).

	 	 	“Grupo CSI” has the meaning specified in the preamble to this Agreement.

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	 	 	“Grupo CSI Pledged Partnership Interest” has the meaning set forth in Representation
I (c) of this Agreement.

	 	 	“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 collective reference to Central, Corporativo, Servicios
Industriales, Servicio Terrestre and Pactiv Mexico.

	 	 	“Law” means the General Law of Negotiable Instruments and Credit Transactions
(Ley General de Títulos y Operaciones de Crédito) of Mexico.

	 	 	“Lien” shall have the meaning assigned to the term “Lien” under, and as defined
in, the First Lien Intercreditor Agreement.

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

	 	 	“Loan Parties” shall have the meaning assigned to the term “Grantors” under, and as
defined in, the First Lien Intercreditor Agreement.

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

	 	 	“Mexico” means the United Mexican States.

	 	 	“Notes Issuers” has the meaning assigned to such term in Recital II hereof.

	 	 	“Pactiv Corporation” has the meaning specified in the preamble to this Agreement.

	 	 	“Pactiv Corporation Pledged Partnership Interest” has the meaning set forth in
Representation I (h) of this Agreement.

	 	 	“Pactiv Holdings” has the meaning specified in the preamble to this Agreement.

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	 	 	“Pactiv Holdings Pledged Partnership Interest” has the meaning set forth in
Representation I (i) of this Agreement.

	 	 	“Pactiv Mexico” has the meaning specified in the preamble to this Agreement.

	 	 	“Person” means any individual or entity, trust, joint venture, partnership,
corporation, Governmental Authority or any other entity of any nature whatsoever.

	 	 	“Pledged Equity Interests” means the collective reference to the Pledged Partnership
Interests and the Pledged Shares.

	 	 	“Pledged Partnership Interests” means the collective reference to the Grupo CSI
Pledged Partnership Interest, the CSI Saltillo Pledged Partnership Interest, the Pactiv
Corporation Pledged Partnership Interest, and the Pactiv Holdings Pledged Partnership
Interest.

	 	 	“Pledged Shares” means the collective reference to the Central Pledged Shares,
Servicios Industriales Pledged Shares, the Servicio Terrestre Pledged Share, and the
Corporativo Pledged Share.

	 	 	“Pledgee” has the meaning specified in the preamble to this Agreement.

	 	 	“Pledgors” has the meaning specified in the preamble to this Agreement.

	 	 	“Principal Finance Documents” means the Credit Agreement, the 2009 Senior Secured
Notes Indenture, the 2010 Senior Secured Notes Indenture, the 2011 Senior Secured Notes
Indenture, the Intercreditor Arrangements and any Additional Agreement.

	 	 	“Secured 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 Loan Party and each grantor of a security interest to the Secured
Parties (or any of them) under each or any of the Loan Documents, together with all costs,
charges and expenses incurred by any Secured Party in connection with the protection,
preservation or enforcement of its respective rights under the Loan Documents or any other
document evidencing or securing any such liabilities.

	 	 	“Secured Parties” shall have the meaning assigned to the term “Secured Parties”
under, and as defined in, the First Lien Intercreditor Agreement.

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	 	 	“Security Interest” has the meaning specified in paragraph (a) of Clause Second of
this Agreement.

	 	 	“Servicio Terrestre” has the meaning specified in the preamble to this Agreement.

	 	 	“Servicio Terrestre Pledged Share” has the meaning set forth in Representation I (f)
of this Agreement.

	 	 	“Servicios Industriales” has the meaning specified in the preamble to this
Agreement.

	 	 	“Servicios Industriales Pledged Shares” has the meaning set forth in Representation
I (e) of this Agreement.

	 	 	“Termination Notice” has the meaning specified in Clause Eleventh of this
Agreement.

	 	 	“2009 Escrow Issuers” has the meaning assigned to such term in Recital II hereof.

	 	 	“2009 Senior Secured Notes Indenture” has the meaning assigned to such term in
Recital II hereof.

	 	 	“2009 Senior Secured Notes” has the meaning assigned to such term in Recital II
hereof.

	 	 	“2010 Escrow Issuers” has the meaning assigned to such term in Recital III hereof.

	 	 	“2010 Secured Notes Indenture” has the meaning assigned to such term in Recital III
hereof.

	 	 	“2010 Secured Notes” has the meaning assigned to such term in Recital III hereof.

	 	 	“2011 Senior Secured Notes Indenture” has the meaning assigned to such term in
Recital IV hereof.

	 	 	“2011 Senior Secured Notes” has the meaning assigned to such term in Recital IV
hereof.

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(b) The definitions in this Clause First shall apply equally to both the singular and plural forms
of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neutral forms. The words “hereof”, “herein” and “hereunder”
and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole
and not to any particular provision of this Agreement, unless otherwise expressly indicated, and
all references in this Agreement to Clauses, sections, and paragraphs shall be deemed to be
references to Clauses, sections paragraphs of this Agreement, unless the context shall otherwise
require. As used herein and any certificate or other document made or delivered pursuant hereto,
(i) the words “include”, “includes” and “including” shall be deemed to be followed by the phrase
“without limitation”, unless such phrase, otherwise appears, (ii) the word “incur” shall be
construed to mean incur, create, issue, assume, become liable in respect of or suffer to exist (and
the words “incurred” and “incurrence” shall have correlative meanings), (iii) the words “asset” and
“property” shall be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, capital stock, securities, revenues,
accounts, leasehold interests and contract rights, (iv) references to agreements shall, unless
otherwise specified, be deemed to refer to such agreements as amended, extended, restructured,
renewed, novated, supplemented, restated, refunded, replaced or modified from time to time, and (v)
references to any statute, law or regulation shall be deemed to include any amendments thereto
from time to time or any successor statute, law or regulation thereof.

Second. Pledge; Grant of Security Interest.

	(a)	 	Each of the Pledgors hereby grants a first priority pledge and security interest (the
“Security Interest”) to the Pledgee for the benefit of the Secured Parties, in and to
its Pledged Equity Interests as collateral security for the due and timely payment,
performance and satisfaction when due (whether at stated maturity, by acceleration or
otherwise) of any and all of the Secured Obligations.
	 
	(b)	 	For purposes of perfecting the Security Interest over the Pledged Equity Interests pursuant
to paragraphs II and III of Article 334 of the Law, the Pledgors hereby deliver to the Pledgee
(i) an executed original of this Agreement, (ii) the original stock certificates evidencing
its right, title and interest in and to its Pledged Shares, duly endorsed “in pledge” (“en
prenda”) in favor of the Pledgee, for the ratable benefit of the Secured Parties, and (iii) a
copy of the entry made in the stock registry book or the partners registry book, as the case
may be, of each Issuer, duly certified by an authorized officer or attorney-in-fact of each
Issuer, evidencing that, on the date hereof, the Security Interest in and to the Pledged Equity Interests has been duly recorded in the stock registry
book or partners registry book, as the case may be, of each Issuer.

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	(c)	 	In accordance with Article 337 of the Law, the Pledgors and the Pledgee agree that this
Agreement shall serve as receipt (resguardo) by the Pledgee of the Pledged Equity Interests
and the original stock certificates representing the Pledged Shares.
	 
	(d)	 	Without prejudice to the rights of the Pledgee under the Loan Documents, the Pledgee hereby
irrevocably waives the provisions of, and any rights it might have under, Articles 340, 342
and 343 of the Law.

Third. Continuing Security Interest. The Security Interest shall be continuing and shall
(i) remain in full force and effect until all of the Secured Obligations have been paid pursuant to
the Loan Documents unless otherwise released pursuant to this Clause Third or Clause Eleventh; (ii)
be binding upon the Pledgors, and their successors and permitted assigns; and (iii) inure to the
benefit of and be enforceable by the Pledgee, acting on behalf of the Secured Parties, and their
respective successors and assigns; provided, however, that if a Pledgor disposes of
any Pledged Equity Interest and that disposal is permitted by the terms of the Loan Documents,
those Pledged Equity Interests shall, unless an Event of Default has occurred and is continuing, be
automatically released from the Security Interest created under this Agreement with effect from the
day of such disposal, and the Pledgee shall do all such acts which are reasonably requested by the
Pledgor in order to release the relevant Pledged Equity Interests from the Security Interest
created under this Agreement.

Fourth. Voting and Management of the Pledged Equity Interests.

	(a)	 	Subject to paragraph (b) of this Clause Fourth, the Pledgors will have the right to exercise
the voting rights and other rights and powers pertaining to the Pledged Equity Interests and
deal with the Pledged Equity Interests in any manner permitted by the Loan Documents;
provided, that no Pledgor shall at any time exercise, or refrain from exercising, such
rights in a manner which would affect adversely the validity and enforceability of the
security constituted hereby or cause an Event of Default. Subject to the terms of the Loan
Documents, the Pledgee and the Secured Parties shall be free and clear of any liability
arising from or in connection with the exercise or failure to exercise the voting rights
relating to the Pledged Equity Interests.
	 
	(b)	 	If an Event of Default has occurred and is continuing, all rights of the Pledgors to exercise
the voting and other rights and powers that the Pledgors are entitled to exercise pursuant to
the foregoing provisions of paragraph (a) of this Clause Fourth shall cease, and all such
rights shall thereupon be exercised by the

- 13 -

 

	 	 	Pledgee, who shall have the sole and exclusive right and authority to exercise such voting
and other rights and powers.
	 
	(c)	 	Unless an Event of Default has occurred and is continuing, each Pledgor shall be entitled,
from time to time, to collect and receive for their own use all dividends, interest and other
distributions paid in respect of the Pledged Equity Interests as permitted by the Loan
Documents (the “Distributions”); provided, however, that until
actually paid, all rights to such distributions shall remain subject to the Security Interest
created by this Agreement. If an Event of Default has occurred and is continuing, all
Distributions thereafter paid in respect of the Pledged Equity Interests shall be applied by
the Pledgee towards the payment of the Secured Obligations in accordance with the Loan
Documents.
	 
	(d)	 	All Distributions (other than the Distributions that are permitted to be paid to the Pledgors
in accordance with paragraph (c) of this Clause Fourth), whenever paid or made, shall (i) be
delivered to the Pledgee to hold as part of the Pledged Equity Interests and shall, if
received by any Pledgor, be received in deposit for the benefit of the Pledgee, be segregated
from the other property or funds of such Pledgor, and be forthwith delivered to the Pledgee as
part of the Pledged Equity Interests in the same form as so received (with any necessary
endorsement); and (ii) be considered for all legal purposes as granted in pledge in accordance
with this Agreement, and shall be subject to the Security Interest and considered as an
integral part of the Pledged Equity Interests pursuant to this Agreement.
	 
	(e)	 	The rights of the Pledgee hereunder shall not be conditioned or contingent upon the exercise
by the Pledgee of any right or remedy against the Pledgors or any other Person which may be or
become liable in respect of all or any part of the Secured Obligations or against any
collateral security therefor, guarantee therefor or right of offset with respect thereto.
	 
	(f)	 	Subject to the terms of the Loan Documents, the Pledgee, its nominee(s) or any receiver or
delegate appointed pursuant to this Agreement, shall not be liable for any failure to demand,
collect or realize upon all or any part of the rights corresponding to the Pledged Equity
Interests or for any delay in doing so, nor shall the Pledgee be under any obligation to sell
or otherwise dispose of the Pledged Equity Interests upon the request of the Pledgors or any
other Person (except for the Secured Parties and in conformity with the Loan Documents), or to
take any other action whatsoever with regard to the Pledged Equity Interests or any part
thereof.

- 14 -

 

Fifth. Covenants of the Pledgors. So long as this Agreement is in effect, the Pledgors
covenant and agree to (a) not create, incur, assume, or permit to exist any Lien in favor of, or
any claim of any Person with respect to, any of the Pledged Equity Interests, whether now held or
hereafter subscribed, except for the Security Interest or as permitted under the Loan Documents;
(b) except to the extent permitted by the Loan Documents, not sell, transfer, assign, pledge,
deliver, transfer in trust, grant, usufruct or otherwise dispose of, or grant any option with
respect to, any such Pledged Equity Interests or any interest therein without the prior written
consent of the Pledgee; and (c) subject to the Agreed Security Principles, execute and deliver to
the Pledgee, for the benefit of the Secured Parties, such documents in favor of the Pledgee and/or
the Secured Parties, and do such things relating to the Security Interest as the Pledgee may
reasonably request in order to protect and maintain the Security Interest and to protect and
preserve the Pledgors’ and or the Pledgee’s title and interest in and to the Pledged Equity
Interests, and pay all reasonable costs arising from or in connection therewith.

Sixth. Safekeeping of the Pledged Equity Interests; Indemnity. The obligations of the
Pledgee with respect to the safekeeping and preservation of the Pledged Equity Interests shall be
limited to the obligations imposed by the Law. Unless otherwise expressly provided for in the Loan
Documents, any actions carried out by the Pledgee for the safekeeping and preservation of the
Pledged Equity Interests shall be at the sole expense and risk of the Pledgors.

Seventh. Events of Default. If an Event of Default has occurred and is continuing (a) all
rights of the Pledgors to exercise or refrain from exercising any voting and other rights which
they would otherwise be entitled to exercise pursuant to Clause Fourth hereof shall cease and be
exercised thereafter by the Pledgee, (b) the Pledgee shall have the right to keep any and all
Distributions in respect of the Pledged Equity Interests received or thereafter paid in respect of
the Pledged Equity Interests and apply them to the payment of the Secured Obligations; and (c) the
Pledgee shall have the right to foreclose upon the Pledged Equity Interests pursuant to the
provisions of Clause Eighth of this Agreement, and to exercise its rights in any other manner as
set forth in the Law.

Eighth. Foreclosure. If an Event of Default has occurred and is continuing:

	(a)	 	the Pledgee may foreclose upon the Security Interest and request the sale of the Pledged
Equity Interests, if any, pursuant to Article 341 of the Law, or exercise its rights in any
other manner as set forth in the Law, in order to seek payment of the Secured Obligations; and

	(b)	 	the Pledgors shall take or shall cause each Issuer to take any and all actions and/or
initiate any and all proceedings that may be necessary or convenient, in

- 15 -

 

	 	 	the Pledgee’s sole discretion (acting reasonably), to facilitate the execution and
transfer of the Pledged Equity Interests. The Pledgors further agree to do or cause to be
done all such other acts as may be necessary or convenient to expedite such sale or sales of
all or any portion of the Pledged Equity Interests, and to execute and deliver such
documents and take such other action as the Pledgee (acting reasonably) deems necessary or
advisable so that such sale may be in compliance with applicable law. The Pledgee shall
apply all amounts received under this Agreement in accordance with the First Lien
Intercreditor Agreement. In the event of foreclosure and sale of the Pledged Equity
Interests in accordance with this Clause Eighth, the Pledgors hereby expressly and
irrevocably waive any rights of first offer, rights of first refusal, and any other
preemptive rights of any kind to which they may be entitled under the by-laws of each Issuer
and the Mexican General Law of Commercial Companies (Ley General de Sociedades Mercantiles).

Ninth.- Capacity of Collateral Agent. The Pledgors hereby (i) expressly acknowledge that
the Pledgee has all necessary appointments, legal capacity and authority to act on behalf of the
Secured Parties for all matters arising from or relating to this Agreement; and (ii) expressly
waive their rights to carry out any action challenging the legal existence, appointments, legal or
other capacity and authority of the Pledgee to act on behalf of the Secured Parties. The rights,
duties, privileges, protections and benefits of the Pledgee as Collateral Agent set forth in the
First Lien Intercreditor Agreement are hereby incorporated herein by reference and made a part
hereof. Each of the Pledgors agrees that all acts to be executed by such Pledgor under this
Agreement shall be in accordance with the terms and conditions of the Intercreditor Arrangements.

Tenth. Power of Attorney. Each of the Pledgors, by way of security irrevocably appoints the
Pledgee and any receiver appointed by the Pledgee to be its attorney in fact, and in its name, on
its behalf and as its act and deed to execute, deliver and perfect all documents and do all things
which the attorney in fact may consider to be required or desirable for:

	 	(a)	 	carrying out any obligation imposed on a Pledgor by this Agreement or any
other agreement binding on that Pledgor to which the Pledgee is a party (including the
execution and delivery of any deeds, charges, assignments or other security and any
transfers of the Pledged Equity Interests);
	 
	 	(b)	 	enabling the Pledgee to exercise, or delegate the exercise of, all or any of
its rights over the Pledged Equity Interests; and
	 
	 	(c)	 	enabling any receiver appointed by Pledgee 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,

- 16 -

 

	 	 	 	provided always that the Pledgee may only be entitled to exercise the powers conferred upon
it by each of the Pledgors under this Clause Tenth if:

	 	(i)	 	an Event of Default has occurred and is continuing; and/or
	 
	 	(ii)	 	the Pledgee has received notice from the Applicable Representative, the
Loan Parties’ Agent and/or any of the Pledgors that any of the Pledgors has failed to
comply with a further assurance or perfection obligation within 10 (ten) Business
Days of being notified of that failure (with a copy of that notice being sent to the
Loan Parties’ Agent),

	 	 	 	provided further that the Pledgee shall not be obliged to exercise the powers conferred upon
it by each of the Pledgors under this Clause Tenth 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.

For purposes of this Clause, each of the Pledgors shall grant a notarized irrevocable special power
of attorney, substantially in form of Exhibit “B” hereto, pursuant to the terms of article
2,596 of the Federal Civil Code and its correlatives for the other States of Mexico and the Federal
District, in order to allow the Pledgee to perform any and all acts referred to in this Clause
Tenth, with the authorities referred to in the first, second and third paragraph of article 2,554
of the Federal Civil Code and its correlative Articles of the Civil Codes of the States of the
United Mexican States and the Federal District and that includes the authority to delegate such
special power of attorney.

Eleventh.- Release and Termination. The Security Interest constituted by this Agreement
shall be released and cancelled:

	 	(a)	 	by the Pledgee (acting on the instruction of the Applicable Representative)
at the request and cost of each of the Pledgors, upon the Secured Obligations being
irrevocably paid or discharged in full and none of the Secured Parties being under
further actual or contingent obligation to make advances or provide other financial
accommodation to the Pledgors 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
Mexican law).

     As soon as is reasonably practicable and (i) in respect of paragraph (a) above, following a
written request from the Pledgors, or (ii) in respect of paragraph (b) above,

- 17 -

 

following receipt of a written instruction from the Applicable Representative, the Pledgee shall
deliver to the Pledgors a termination notice (the “Termination Notice”) substantially in
the form attached hereto as Exhibit “C”, together with the stock certificates representing
the Pledged Shares and cancellation of the relevant endorsements. Only upon delivery of the
Termination Notice by the Pledgee to the Pledgors as herein contemplated, this Agreement shall
terminate and the Security Interest shall cease, terminate and be released.

Twelfth.- Delegation. The Pledgee, and any receiver appointed by Pledgee, 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 referred to in Clause Tenth
hereto) 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 Pledgee or any receiver hereto.

Thirteenth.- No Liability. None of the Pledgee, its nominee(s) or any receiver or delegate
appointed pursuant to this Agreement shall be liable by reason of (a) taking any action permitted
under this Agreement, (b) any neglect or default in connection with the Security Interest, or (c)
taking possession or realization of all or any part of the Pledged Equity Interests, except to the
extent provided in the Principal Finance Documents.

Fourteenth.- Indemnity. To the extent set out in Section 4.11 of the First Lien
Intercreditor Agreement, each of the Pledgors shall, notwithstanding any release or discharge of
all or any part of the Security Interest, indemnify the Pledgee, its agents, its attorneys, any
delegate and any receiver against any action, proceeding, claims, losses, liabilities, expenses,
demands, taxes and costs which it may sustain as a consequence of any breach by each of the
Pledgors 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 Security
Interest.

Fifteenth.- Assignments. Unless otherwise permitted under the Loan Documents, the rights
and obligations arising from this Agreement may not be assigned or transferred by any Pledgor to
any third party without the prior written consent of the Pledgee. The Pledgee may assign, in whole
or in part, its rights hereunder by written notice to the Pledgors, without requiring the consent
of the Pledgors to perform such assignment or transfer, in accordance with the Loan Documents.

Sixteenth.- Amendments. This Agreement may only be amended or modified with the prior
written consent of the Pledgors and the Pledgee.

- 18 -

 

Seventeenth.- Notices. Each notice or other communication to be given or made by a party in
connection with this Agreement shall be given or made in accordance with the provisions of the
First Lien Intercreditor Agreement, provided that with respect to any notice to be given or made
pursuant to or under a Mexican judicial procedure, each Pledgor designates the following address:

Grupo CSI de México, S. de R.L. de C.V.

Pactiv Corporation

Pactiv International Holdings Inc.

CSI en Saltillo, S. de R.L. de C.V.

Indiana 435

Fracc. Industrial Valle de Saltillo

25217, Saltillo, Coahuila, México]

Central de Bolsas, S. de R.L. de C.V.

Servicios Industriales Jaguar, S.A. de C.V.

Servicio Terrestre Jaguar, S.A. de C.V.

Grupo Corporativo Jaguar, S.A. de C.V.

Carretera a Base Aérea 555

Col. San Juan Ocotán

45019, Zapopan, Jal.

México

with a copy (which shall not constitute notice) to:

Rank Group Limited

Suite 2502

Level 25, Citgroup Centre

2 Park Street

Sydney 2000

Australia

Attention: Cindi Lefari

Eighteenth.- Exhibits and Captions. All documents attached hereto or to which reference is
made herein are hereby incorporated by reference into, and shall be deemed a part of, this
Agreement. The captions and headings contained in this Agreement are for convenience only and shall
not affect the interpretation of this Agreement.

Nineteenth.- Further Assurances. Subject to the Agreed Security Principles, the Pledgors,
at the Pledgee’s request, agree to promptly execute or cause to be executed and deliver to the
Pledgee any and all documents, instruments and agreements, in

- 19 -

 

connection with this Agreement, deemed necessary by the Pledgee (acting on the instructions of the
Applicable Representative) to give effect to or carry out the terms or intent of this Agreement.

Twentieth.- Jurisdiction, Governing Law. For all matters relating to the interpretation and
fulfillment of this Agreement, the parties hereto expressly and irrevocably submit to the
applicable laws of Mexico, and to the jurisdiction of the competent courts sitting in Mexico,
Federal District, Mexico, with respect to any action or proceeding arising out of or relating
hereto, and the parties hereby expressly and irrevocably waive all rights to any other jurisdiction
to which they may be entitled to by reason of their present or future domiciles, or by any other
reason.

Twenty First.- Language. This Agreement is entered into in both the Spanish and English
languages; provided that, in the case of any judicial procedure before a Mexican court, the Spanish
version shall govern for all purposes.

Twenty Second.- Counterparts. This Agreement may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same
Agreement.

[Signature pages continue]

- 20 -

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the date
first above written.

	 	 	 	 	 	 	 

	 
	The Pledgors:	 	 	 	 
	 
	Grupo CSI de México, S. de R.L. de C.V.	 	CSI en Saltillo, S. de R.L. de C.V.
	 
	By: 	 /s/ Chiara Brophy	 	By: 	 /s/ Chiara Brophy
	 	Name: 	 Chiara Brophy	 	 	Name: 	 Chiara Brophy
	 	Title:	 Attorney	 	 	Title:	 Attorney
	 
	Central de Bolsas, S. de R.L. de C.V.	 	Servicios Industriales Jaguar, S.A. de C.V.
	 
	By: 	 /s/ Chiara Brophy	 	By: 	 /s/ Chiara Brophy
	 	Name: 	 Chiara Brophy	 	 	Name: 	 Chiara Brophy
	 	Title:	 Attorney	 	 	Title:	 Attorney
	 
	Servicio Terrestre Jaguar, S.A. de C.V.	 	Grupo Corporativo Jaguar, S.A. de C.V.
	 
	By: 	 /s/ Chiara Brophy	 	By: 	 /s/ Chiara Brophy
	 	Name: 	 Chiara Brophy	 	 	Name: 	 Chiara Brophy
	 	Title:	 Attorney	 	 	Title:	 Attorney
	 
	Pactiv Corporation	 	Pactiv International Holdings Inc.
	 
	By: 	 /s/ Chiara Brophy	 	By: 	 /s/ Chiara Brophy
	 	Name: 	 Chiara Brophy	 	 	Name: 	 Chiara Brophy
	 	Title:	 Attorney	 	 	Title:	 Attorney

- 21 -

 

The Pledgee:

The Bank of New York Mellon, acting solely in its capacity as Collateral Agent on behalf and for
the benefit of the Secured Parties.

	 	 	 	 	 
	 	 	 
	 	                    /s/ Catherine F. Donohue
 	 
	 	Name:  	Catherine F. Donohue 	 
	 	Title:  	Vice President 	 

	 	 	 	 	 

With the acknowledgment of:

Pactiv México, S. de R.L. de C.V.

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Chiara Brophy
 	 
	 	 	Name:  	Chiara Brophy 	 
	 	 	Title:  	Attorney 	 

- 22 -

 

	 	 	 	 	 

Exhibit “A”

Equity Interests Pledge Agreement

Copy of First Lien Intercreditor Agreement

and Amendment

[Attached hereto]

- 24 -

 

Exhibit “B”

Equity Interests Pledge Agreement

Form of Power of Attorney

	 	 	 
	PODER ESPECIAL	 	SPECIAL POWER OF ATTORNEY
	En la Ciudad de ____________, el
__ de __________ de 2011, ante mi
__________, Notario Público,
compareció __________ en su
carácter de ______________ de
______________, (la “Sociedad”)
una sociedad debidamente
constituida y existente de
conformidad con las leyes de
____________, con su domicilio en
_______________________, y expuso:

	 	In the City of __________, on
_________, 2011, before me
______________ Notary Public, appeared
__________, in his capacity as
______________ of
_______________________ (the
“Corporation”) a corporation organized
and existing pursuant to the laws of
________________, and having its
principal offices in _________________
and declared:

	 	 	 

	Que en nombre y representación de
la Sociedad y de conformidad con los poderes que le confiere la Sociedad, por medio del presente otorga como garantía:

	 	That in the name and on behalf of the
Corporation and in accordance with the powers conferred by the Corporation, hereby grants by way of security:
	 
	 	 
	1. Un PODER ESPECIAL en cuanto a
su objeto pero general en cuanto
a las facultades otorgadas, con
facultades de delegación, a favor
de The Bank of New York Mellon
(el “Acreedor Prendario”),
actuando únicamente en su
carácter de Agente de Garantías
(Collateral Agent), en
representación y para el
beneficio de las Partes
Garantizadas (Secured Parties) y
cualquier delegado designado por
el Acreedor Prendario, para que,
en nombre y representación de la
Sociedad, puedan,
individualmente, celebrar, firmar
y perfeccionar cualquier
documento y llevar a cabo
cualesquiera actuaciones que el
apoderado considere necesarias o
deseables, en relación con el
Contrato de Prenda sobre Acciones
y Partes Sociales celebrado entre
Grupo CSI de México, S. de R.L.
de C.V., CSI en Saltillo, S. de
R.L. de

	 	1. A SPECIAL POWER-OF-ATTORNEY deemed
as special in regards to its purpose
but as general in regards to the
powers granted, with authority to
delegate such power, in favor of The
Bank of New York Mellon (the
“Pledgee”), acting solely in its
capacity as Collateral Agent, on
behalf and for the benefit of the
Secured Parties and any receiver
appointed by the Pledgee, so that in
the name and on behalf of the
Corporation they may, severally,
execute, deliver and perfect all
documents and do all things which the
attorney in fact may consider to be
required or desirable, in connection
with the Equity Interests Pledge
Agreement (Contrato de Prenda sobre
Acciones y Partes Sociales) entered
into, by and among Grupo CSI de
México, S. de R.L. de C.V., CSI en
Saltillo, S. de R.L. de C.V., Central
de Bolsas, S. de R.L. de C.V.,

- 25 -

 

	 	 	 

	C.V., Central de Bolsas, S. de R.L.
de C.V., Servicios Industriales
Jaguar, S.A. de C.V., Servicio
Terrestre Jaguar, S.A. de C.V.,
Grupo Corporativo Jaguar, S.A. de
C.V., Pactiv Corporation, y Pactiv
International Holdings Inc., como
deudores prendarios, y el Acreedor
Prendario, actuando únicamente en su
carácter de Agente de Garantías
(Collateral Agent), en
representación y para el beneficio
de las Partes Garantizadas (Secured
Parties), como acreedor prendario,
con el reconocimiento de Pactiv
México, S. de R.L. de C.V., (según
dicho Contrato de Prenda sobre

	 	Servicios Industriales Jaguar, S.A.
de C.V., Servicio Terrestre Jaguar,
S.A. de C.V., Grupo Corporativo
Jaguar, S.A. de C.V., Pactiv
Corporation, and Pactiv
International Holdings Inc., as
pledgors, and the Pledgee, acting
solely in its capacity as Collateral
Agent on behalf and for the benefit
of the Secured Parties, as pledgee,
with the acknowledgment of Pactiv
México, S. de R.L. de C.V. (as such
Equity Interest Pledge Agreement may
be amended, supplemented, modified
or amended and restated from time to
time, hereinafter, the “Pledge
Agreement”), for:
	Acciones y Partes Sociales haya sido
o sea modificado, suplementado o
modificado y reexpresado de tiempo
en tiempo, en lo sucesivo, el
“Contrato de Prenda”), para:
	 	 
	 
	 	 
	(a) llevar a cabo cualquier acto
para cumplir con cualquier
obligación impuesta a la Sociedad
mediante el Contrato de Prenda o
cualquier otro contrato que obligue
a la Sociedad y del cual sea parte
el Acreedor Prendario (incluyendo la
celebración y entrega de cualesquier
actos, gravámenes, cesiones u otra
garantía y cualesquier transmisiones
de las Acciones y Partes Sociales
Pignoradas (según dicho término se
define en el Contrato de Prenda));

	 	(a) carrying out any obligation
imposed on the Corporation by the
Pledge Agreement or any other
agreement binding on the Corporation
to which the Pledgee is a party
(including the execution and
delivery of any deeds, charges,
assignments or other security and
any transfers of the Pledged Equity
Interests (as such term is defined
in the Pledge Agreement));
	 
	 	 
	(b) permitir al Acreedor Prendario
para que ejerza, o delegue el
ejercicio de, todos y o cualquiera
de sus derechos sobre las Acciones y
Partes Sociales Pignoradas; y

	 	(b) enabling the Pledgee to
exercise, or delegate the exercise
of, all or any of its rights over
the Pledged Equity Interests; and
	 
	 	 
	(c) permitir a cualquier delegado
designado por el Acreedor Prendario
para que ejerza, o delegue el
ejercicio de, cualquier de los
derechos, poderes y facultades
conferidos sobre los mismos por

	 	(c) enabling any receiver appointed
by Pledgee to exercise, or delegate
the exercise of, any of the rights,
powers and authorities conferred on
them by or pursuant to the Pledge
Agreement or by

- 26 -

 

	 	 	 

	o conforme al Contrato de Prenda o
por ley;

	 	law;
	 
	 	 
	en el entendido en todo momento que
el Acreedor Prendario únicamente
tendrá el derecho de ejercer los
poderes que le han sido conferidos
por este poder (incluyendo los
mencionados abajo) si: un Caso de
Incumplimiento ha ocurrido y
continúa; y/o el Acreedor Prendario
ha recibido una notificación del
Representante Aplicable, el Agente
de las Partes del Crédito y/o de la
Sociedad de que la Sociedad ha
incumplido con cualquier obligación
(incluyendo obligaciones de
perfeccionamiento) dentro de los 10
(diez) Días Hábiles de que se le
haya notificado de dicho
incumplimiento (con copia de dicha
notificación entregada al Agente de
las Partes del Crédito), en el
entendido además que el Acreedor
Prendario no tendrá la obligación de
ejercer los poderes que le han sido
conferidos por la Sociedad conforme
al presente poder (incluyendo los
mencionados abajo), salvo y hasta
que se le haya (i) instruido a
ejercerlos por el Representante
Aplicable, e (ii) indemnizado y/o
garantizado y/o pre-fondeado a su
satisfacción.

	 	provided always that the Pledgee may
only be entitled to exercise the
powers conferred upon it by this
Power of Attorney (including those
below) if: an Event of Default has
occurred and is continuing; and/or
the Pledgee has received notice from
the Applicable Representative, the
Loan Parties’ Agent and/or the
Corporation that the Corporation has
failed to comply with a further
assurance or perfection obligation
within ten 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 Pledgee shall not
be obliged to exercise the powers
conferred upon it by the Corporation
under this Power (including those
below) 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.
	 
	 	 
	Para poder llevar a cabo los actos
mencionados en los incisos
anteriores, y sin perjuicio de la
especialidad de los facultades
otorgadas, los apoderados contarán
con:

	 	In order to carry out the acts
referred to in the preceding
sections, and notwithstanding the
special nature of the powers
granted, the attorneys-in-fact are
hereby granted with:
	 
	 	 
	(i) Poder para pleitos y cobranzas,
actos de administración y actos de
dominio en los términos del primer,
segundo y tercer párrafos del
artículo dos mil quinientos
cincuenta y cuatro del Código Civil
Federal y sus correlativos
contenidos en los

	 	(i) A power of attorney for lawsuits
and collections, acts of
administration and acts of ownership
in terms of the first, second and
third paragraphs of Article two
thousand five hundred and fifty four
of the Federal Civil Code and its correlative

- 27 -

 

	 	 	 

	Códigos Civiles de
los demás estados de los Estados
Unidos Mexicanos y el Distrito
Federal; y

	 	Articles of the Civil
Codes of the remaining States of the
United Mexican States and the
Federal District; and
	 
	 	 
	(ii) poder especial para suscribir y
endosar títulos de crédito en los
términos del artículo 9o de la Ley
General de Títulos y Operaciones de
Crédito.

	 	(ii) a special power of attorney to
subscribe and endorse negotiable
instruments in accordance with
article 9 of the General Law of
Negotiable Instruments and Credit
Operations.
	 
	 	 
	El presente poder es irrevocable en
los términos de artículo 2596 (dos
mil quinientos noventa y seis) del
Código Civil Federal y sus artículos
correlativos en los Códigos Civiles
de los demás Estados de la
República, por haberse otorgado como
una condición en un contrato
bilateral y como un medio para el
cumplimiento de sus obligaciones
conforme al Contrato de Prenda.

	 	The special power of attorney
granted hereby is irrevocable
pursuant to the terms of article
2,596 of the Federal Civil Code its
correlative Articles of the Civil
Codes of the States of the United
Mexican States and the Federal
District, it being a condition of a
bilateral agreement and a mean to
comply with its obligations under
the Pledge Agreement.
	 
	 	 
	Para efectos del párrafo quinto del
Artículo 2554 del Código Civil
Federal, el mismo se transcribe a
continuación:

	 	For purposes of paragraph fifth of
Article 2554 of the Federal Civil
Code, a transcription thereof
follows:
	 
	 	 
	“Artículo 2554. En todos los
poderes generales para pleitos y
cobranzas bastará que se diga que se
otorga con todas las facultades
generales y las especiales que
requieran cláusula especial conforme
a la ley para que se entiendan
conferidos sin limitación alguna.

	 	“Article 2554. In all general powers
of attorney for lawsuits and
collections it shall be sufficient
to say that they are granted with
all the general powers and with the
special powers requiring special
clause in accordance with the law in
order that they may be considered as
granted without any limitation.
	 
	 	 
	En los poderes generales para
administrar bienes, bastará expresar
que se dan con este carácter para
que el apoderado tenga toda clase de
facultades administrativas.

	 	In general powers of attorney to
administer property, it shall be
sufficient to state that they are
given with that character, in order
that the attorneys-in-fact may have
all kinds of administrative powers.
	 
	 	 
	En los poderes generales, para
ejercer actos

	 	In general powers of attorney to exercise

- 28 -

 

	 	 	 

	de dominio, bastará
que se den con ese carácter para que
el apoderado tenga todas las
facultades de dueño, tanto en lo
relativo a los bienes, como para
hacer toda clase de gestiones, a fin
de defenderlos.

	 	acts of ownership, it shall
be sufficient that they be given
with that character, in order that
the attorneys-in-fact may have all
the powers of an owner, both with
respect to the property, and to take
all actions to defend it.
	 
	 	 
	Cuando se quisieren limitar, en los
tres casos antes mencionados, las
facultades de los apoderados, se
consignarán las limitaciones, o los
poderes serán especiales.

	 	If in any of the aforesaid three
cases it should be desired to limit
the authority of the
attorneys-in-fact, the limitation
shall be set out, or the powers of
the attorneys-in-fact shall be
special powers of attorney.
	 
	 	 
	Los Notarios insertarán este
Artículo en los testimonios de los
poderes que otorguen.”

	 	Notaries shall insert this Article
in the instruments of powers of
attorney which they execute.”
	 
	 	 
	Salvo que un término se encuentre
definido en este poder o el contexto
lo requiera de otra forma, un
término definido en el Contrato de
Prenda y/o el Convenio entre
Acreedores (como dicho término se
define en el Contrato de Prenda)
tiene el mismo significado en este
poder.

	 	Unless defined in this power of
attorney or the context otherwise
requires, a term defined in the
Pledge Agreement and/or the First
Lien Intercreditor Agreement (as
defined in the Pledge Agreement) has
the same meaning in this Power of
Attorney.

	 	 	 

	Nombre: [__________]

	 	__________________
	Cargo:

	 	Name: [__________]
	 

	 	Title:

(NOTE: The signature of the Notary Public must be certified by the relevant officer of; the
power of attorney must bear an apostille issued in accordance with The Hague Convention of 1961.)

- 29 -

 

Exhibit “C”

Equity Interests Pledge Agreement

Form of Termination Notice

	[Date]

Grupo CSI de México, S. de R.L. de C.V.

Central de Bolsas, S. de R.L. de C.V.

Servicios Industriales Jaguar, S.A. de C.V.

Servicio Terrestre Jaguar, S.A. de C.V.

Grupo Corporativo Jaguar, S.A. de C.V.

Pactiv Corporation

CSI en Saltillo, S. de R.L. de C.V.

Pactiv International Holdings Inc.

     This Termination Notice is delivered pursuant to Clause Eleventh of the Equity Interests
Pledge Agreement dated April [__], 2011 (the “Pledge Agreement”), entered into by and among
Grupo CSI de México, S. de R.L. de C.V., Central de Bolsas, S. de R.L. de C.V., Servicios
Industriales Jaguar, S.A. de C.V., Servicio Terrestre Jaguar, S.A. de C.V., Grupo Corporativo
Jaguar, S.A. de C.V., Pactiv Corporation, CSI en Saltillo, S. de R.L. de C.V., and Pactiv
International Holdings Inc., as pledgors, and The Bank of New York Mellon, on behalf and for the
benefit of the Secured Parties, as pledgee, with the acknowledgment of Pactiv México, S. de R.L. de
C.V. Capitalized terms used and not otherwise defined herein, shall have the meaning ascribed to
such terms in the Pledge Agreement.

     By means of this Termination Notice the undersigned, acting as Pledgee under the Pledge
Agreement, hereby certifies that the Pledge Agreement is terminated and the Security Interest
created thereby is hereby released.

Sincerely,

The Bank of New York Mellon

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	[_____________] 	 
	 	 	Title:  	Attorney-in-Fact 	 
	 

- 30 -exv4w428

EXHIBIT 4.428

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

CANADIAN GENERAL SECURITY AGREEMENT

(DOPACO CANADA, INC.)

	 	 	 

	TO:

	 	The Collateral Agent (as defined below) on behalf of and for the benefit of itself and the other Secured Parties (as defined below)
	 
	 	 
	DATED:

	 	As of May 2 , 2011.

	1.	 	In this Agreement and in any notice given hereunder, unless otherwise defined herein or the
context otherwise requires, capitalized terms used herein have the meanings defined in the
First Lien Intercreditor Agreement (as defined below) and:

	 	(a)	 	“Additional Agreement” has the meaning given to such term in the First Lien
Intercreditor Agreement;
	 
	 	(b)	 	“Affiliate” has the meaning given to such term in the Credit Agreement;
	 
	 	(c)	 	“Agreed Security Principles” has the meaning given to such term in the Credit
Agreement and the Senior Secured Note Indenture and, to the extent of any
inconsistency, the meaning in the Credit Agreement prevails;
	 
	 	(d)	 	“Applicable Representative” has the meaning given to such term in the First
Lien Intercreditor Agreement;
	 
	 	(e)	 	“Assigned Rights” has the meaning given to such term in Section 6;
	 
	 	(f)	 	“Borrowers” means the “Borrowers” under, and as defined in, the Credit
Agreement from time to time;
	 
	 	(g)	 	“Business Day” means a day (other than Saturday or Sunday) on which banks are
open for business in New York, London and Toronto;
	 
	 	(h)	 	“Collateral” has the meaning given to such term in Section 5;

Canadian GSA (Dopaco Canada, Inc.)

 

	 	(i)	 	“Collateral Agent” means The Bank of New York Mellon in its capacity as
collateral agent for the Secured Parties as appointed under the First Lien
Intercreditor Agreement, and its successors, permitted transferees and permitted
assigns in such capacity;
	 
	 	(j)	 	“Control Agreement” means:

	 	(i)	 	with respect to any uncertificated securities included in the
Collateral, an agreement between the issuer of such uncertificated securities
and another person whereby such issuer agrees to comply with instructions that
are originated by such person in respect of such uncertificated securities,
without the further consent of the Corporation; and
	 
	 	(ii)	 	with respect to any securities accounts or security
entitlements included in the Collateral, an agreement between the securities
intermediary in respect of such securities accounts or security entitlements
and another person to comply with any entitlement orders with respect to such
securities accounts or security entitlements that are originated by such
person, without the further consent of the Corporation;

	 	(k)	 	“Corporation” means Dopaco Canada, Inc., a corporation incorporated under the
laws of Canada;
	 
	 	(l)	 	“Credit Agreement” means the Credit Agreement dated as of November 5, 2009
among Reynolds Group Holdings Inc., Reynolds Consumer Products Holdings Inc., SIG Euro
Holding AG & Co. KGaA, Closure Systems International Holdings Inc., Closure Systems
International 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;
	 
	 	(m)	 	“Delegate” means a delegate or sub-delegate appointed pursuant to Section 23(i)
of this Agreement;
	 
	 	(n)	 	“Enforcement Event” means an “Event of Default” under, and as defined in, the
First Lien Intercreditor Agreement;
	 
	 	(o)	 	“Excluded Subsidiary” has the meaning given to it in the Credit Agreement or,
if the Credit Agreement is no longer in existence, any Additional Agreement;
	 
	 	(p)	 	“First Lien Intercreditor Agreement” means the First Lien Intercreditor
Agreement dated as of November 5, 2009, among the Collateral Agent, The Bank of New
York Mellon, as trustee under the Senior Secured Note Indenture, Credit Suisse AG
(formerly 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 (including by the Amendment No. 1 and

- 2 -

 

	 	 	 	Joinder Agreement which added Wilmington Trust London Limited as a collateral agent
under the First Lien Intercreditor Agreement);
	 
	 	(q)	 	“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;
	 
	 	(r)	 	“Issuers” means the “Issuers” under, and as defined in, the Senior Secured Note
Indenture, including their successors in interest;
	 
	 	(s)	 	“Lien” has the meaning given to such term in the First Lien Intercreditor
Agreement;
	 
	 	(t)	 	“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;
	 
	 	(u)	 	“Loan Parties” means the “Grantors” under, and as defined in, the First Lien
Intercreditor Agreement;
	 
	 	(v)	 	“Loan Parties’ Agent” means Reynolds Group Holdings Limited (formerly known as
Rank Group Holdings Limited);
	 
	 	(w)	 	“Obligations” means all present and future obligations and liabilities (whether
actual or contingent and whether owed jointly or severally or in any other capacity
whatsoever) of the Corporation 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;
	 
	 	(x)	 	“PPSA” has the meaning given to such term in Section 5;
	 
	 	(y)	 	“Principal Finance Documents” means the Credit Agreement, the Senior Secured
Note Indenture, the Intercreditor Arrangements and any Additional Agreement;
	 
	 	(z)	 	“Secured Parties” means the “Secured Parties” under, and as defined in, the
First Lien Intercreditor Agreement;
	 
	 	(aa)	 	“Security Interest” has the meaning given to such term in Section 5;
	 
	 	(bb)	 	“Senior Secured Note Indenture” means the Indenture dated as of November 5,
2009, among the Issuers, the Note Guarantors (as defined therein) and The Bank of New
York Mellon, as trustee, principal paying agent, transfer agent and registrar, as
amended, extended, restructured, renewed, refunded, novated, supplemented, restated,
replaced or modified from time to time;

- 3 -

 

	 	(cc)	 	“Specified Rate” has the meaning given to such term in Section 22;
	 
	 	(dd)	 	“subsidiary” has the meaning given to such term in the Credit Agreement; and
	 
	 	(ee)	 	“STA” has the meaning given to such term in Section 5.

	2.	 	Notwithstanding any other provision contained herein, this Agreement, the Security Interest
created hereby and the rights, remedies, duties and obligations provided for herein are
subject in all respects to the terms of the Intercreditor Arrangements. In the event of any
conflict or inconsistency between the terms of this Agreement and those of the Intercreditor
Arrangements, the terms of the Intercreditor Arrangements shall prevail.
	 
	3.	 	In this Agreement, unless the contrary intention appears:

	 	(a)	 	any rights or benefits stated to accrue to the benefit of the Collateral Agent
shall accrue to the benefit of the Collateral Agent for and on behalf of and for the
ratable benefit of itself and the other Secured Parties;
	 
	 	(b)	 	the singular includes the plural and vice versa and words importing a gender
include all genders;
	 
	 	(c)	 	other grammatical forms of defined words or expressions have corresponding
meanings;
	 
	 	(d)	 	a reference to a party to this Agreement includes that party’s successors and
permitted assigns;
	 
	 	(e)	 	a reference to “this Agreement” includes all schedules attached hereto as
amended, extended, restructured, renewed, novated, supplemented, restated, refunded,
replaced or modified from time to time;
	 
	 	(f)	 	a reference to a document or agreement includes that document or agreement as
amended, extended, restructured, renewed, novated, supplemented, restated, refunded,
replaced or modified from time to time;
	 
	 	(g)	 	a reference to any thing includes the whole or any part of that thing and a
reference to a group of things or persons includes each thing or person in that group;
	 
	 	(h)	 	words implying natural persons include partnerships, bodies corporate,
associations, trusts, governments and governmental and local authorities and agencies;
	 
	 	(i)	 	the division of this Agreement into sections and the insertion of headings are
for convenience of reference only and shall not affect the construction or
interpretation of this Agreement; and

- 4 -

 

	 	(j)	 	a reference to any legislation or statutory instrument or regulation includes
all amendments thereto and all replacements and re-enactments thereof.

	4.	 	The Collateral Agent enters into this Agreement in its capacity as collateral agent for the
Secured Parties.
	 
	5.	 	As general and collateral security for the payment and performance of the Obligations, the
Corporation hereby grants, assigns, transfers, sets over, mortgages and charges to the
Collateral Agent, as and by way of a fixed and specific mortgage and charge, and grants to the
Collateral Agent a security interest (the “Security Interest”) in all of the present and
after-acquired undertaking, property and assets (other than consumer goods) of the Corporation
including, without limiting the foregoing, all right, title, interest and benefit which the
Corporation now has or may hereafter have in all property of the kinds hereinafter described
provided, however, that consumer goods and all shares, stock and other securities held in an
Excluded Subsidiary are excluded from each of the kinds of property described below
(collectively, the “Collateral”):

	 	(a)	 	all goods comprising the inventory of the Corporation including but not limited
to goods held for sale or lease or that have been leased or consigned to or by the
Corporation or furnished or to be furnished under a contract of service or that are raw
materials, work in process or materials used or consumed in a business or profession or
finished goods;
	 
	 	(b)	 	all other goods which are not included in (a) above, including but not limited
to furniture, fixtures, equipment, machinery, plant, tools, vehicles and other tangible
personal property;
	 
	 	(c)	 	all accounts, including deposit accounts in banks, credit unions, trust
companies and similar institutions, debts, demands and choses in action which are now
due, owing or accruing due or which may hereafter become due, owing or accruing due to
the Corporation, all other rights and benefits which now or may hereafter be vested in
the Corporation in respect of or as security for any of the said debts, demands, choses
in action and claims and all claims of any kind which the Corporation now has or may
hereafter have including but not limited to claims against the Crown and claims under
insurance policies and all intercompany receivables owing to the Corporation by any
subsidiary or Affiliate of the Corporation;
	 
	 	(d)	 	all chattel paper;
	 
	 	(e)	 	all warehouse receipts, bills of lading and other documents of title, whether
negotiable or not;
	 
	 	(f)	 	all instruments, lien notes, shares, stock, warrants, bonds, debentures,
debenture stock or other securities, money, letters of credit, advances of credit and
cheques and all other investment property;

- 5 -

 

	 	(g)	 	all intangibles including but not limited to contracts, agreements, options,
permits, licences, consents, approvals, authorizations, orders, judgments,
certificates, rulings, insurance policies, agricultural and other quotas, subsidies,
franchises, immunities, privileges, and benefits and all goodwill, patents, patent
applications, trade marks, trade mark applications, trade names, trade secrets,
inventions, processes, copyrights and other industrial or intellectual property;
	 
	 	(h)	 	with respect to the personal property described in paragraphs (a) to (g)
inclusive, all books, accounts, invoices, letters, papers, documents, disks, and other
records in any form, electronic or otherwise, evidencing or relating thereto; and all
contracts, securities, instruments and other rights and benefits in respect thereof;
	 
	 	(i)	 	with respect to the personal property described in paragraphs (a) to (h)
inclusive, all parts, components, renewals, substitutions and replacements thereof and
all attachments, accessories and increases, additions and accessions thereto; and
	 
	 	(j)	 	with respect to the personal property described in paragraphs (a) to (i)
inclusive, all proceeds therefrom, including personal property in any form or fixtures
derived directly or indirectly from any dealing with such property or proceeds
therefrom, and any insurance or other payment as indemnity or compensation for loss of
or damage to such property or any right to such payment, and any payment made in total
or partial discharge or redemption of an intangible, chattel paper, instrument or
security;

provided that: (i) the said mortgages, charges and security interests shall not extend or apply to
the last day of the term of any lease or sublease or any agreement therefor now held or hereafter
acquired by the Corporation in respect of real property, but should such mortgages, charges and
security interests become enforceable the Corporation shall thereafter stand possessed of such last
day and shall hold it in trust for the Collateral Agent to assign the same to any person acquiring
such term or the part thereof mortgaged and charged in the course of any enforcement of the said
mortgages, charges and security interests or any realization of the subject matter thereof; and
(ii) the Security Interest does not extend to shares in any unlimited company or unlimited
liability corporation at any time owned or otherwise held by the Corporation. In this Agreement,
(i) the words “goods”, “consumer goods”, “account”, “inventory”, “equipment”, “fixtures”, “chattel
paper”, “document of title”, “instrument”, “investment property”, “money”, “intangible”, “proceeds”
and “accessions” shall have the same meanings as their defined meanings where such words are
defined in the Personal Property Security Act (Ontario) (the “PPSA”), and (ii) the words
“certificated security”; “entitlement holder”, “entitlement order”, “financial asset”, “limited
liability company” “security”, “security certificate”, “securities account”, “security
entitlement”, “securities intermediary” and “uncertificated security” shall have the same meanings
as their defined meanings where such words are defined in the Securities Transfer Act (Ontario)
(the “STA”); provided that, when used herein, the terms “certificated security” and “uncertificated
security” shall be understood to mean a certificated security or uncertificated security, as the
case may be, that is held directly by and registered in the name of or endorsed to the Corporation
or the Collateral Agent or their respective nominees, as applicable, and not a certificated
security or uncertificated security to which the Corporation or the Collateral Agent, as
applicable, has a security entitlement.

- 6 -

 

	6.	 	If any lease, agreement, account, claim, demand, chose in action or other property or assets
(collectively, “Assigned Rights”) may not be assigned, transferred, subleased, charged or
encumbered without the consent or approval of another person, then the security granted
hereunder shall only apply to such Assigned Right upon such consent or approval being
obtained; provided that, in such event and subject to the Agreed Security Principles, (a) upon
the reasonable request of the Collateral Agent in relation to Assigned Rights that it
considers to be material, the Corporation shall use commercially reasonable efforts to obtain
such consent or approval and (b) the Corporation shall, to the extent it may do so at law or
pursuant to the provisions of the contract or interest in question, be deemed to hold in
trust, as bare trustee, on behalf of the Collateral Agent, such Assigned Right and all of the
right, title and interest of the Corporation in and to such Assigned Right and any warranties,
guarantees and other rights which the Corporation may have in relation to such Assigned Right,
together with all benefits, advantages and obligations to be derived therefrom, until such
necessary consent or approval is obtained or until such time as such consent or approval is no
longer required, whichever is earlier, at which time such Assigned Right shall automatically
be assigned, transferred, subleased, charged and encumbered to and in favour of the Collateral
Agent in accordance with the terms hereof; and if any requisite consent or approval to the
assignment, transfer, sublease, charge or encumbering of any Assigned Right cannot be
obtained, the Corporation and the Collateral Agent shall cooperate with each other in order to
provide the Collateral Agent with the benefit of any Assigned Right that has not been
assigned, transferred, subleased, charged or encumbered and that is held by the Corporation
pursuant hereto; and the Corporation acknowledges that it shall not have any discretion to
deal with any such Assigned Right, except to the extent that the Corporation may be authorized
to do so by the Collateral Agent or if otherwise permitted to do so under the Principal
Finance Documents.

	7.	(a)	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent shall have
the right (but shall not be obliged) to have any uncertificated securities or certificated
securities included in the Collateral registered in its name or in the name of its nominee;
and for such purpose the Corporation shall comply with Section 14 or Section 14(b), as
applicable, upon the request of the Collateral Agent.
	 
	 	(b)	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent
shall have the right (but shall not be obliged) to become or have its nominee become
the entitlement holder with respect to any security entitlements or investment property
included in the Collateral; and for such purpose the Corporation shall comply with
Section 14 upon the request of the Collateral Agent.
	 
	 	(c)	 	As the registered holder of any uncertificated securities or certificated
securities or the entitlement holder with respect to any investment property included
in the Collateral, the Collateral Agent, if any Enforcement Event shall have occurred
and is continuing, shall be entitled (but shall not be obliged) but not bound or
required to exercise any of the rights that any holder of such securities or such
entitlement holder may at any time have. The Collateral Agent will not be

- 7 -

 

	 	 	 	responsible for any loss occasioned by its exercise of any of such rights or by
failure to exercise the same within the time limited for the exercise thereof.

	8.	 	Notwithstanding any other term of this Agreement, and subject to the terms of the Principal
Finance Documents, unless an Enforcement Event has occurred and is continuing and subject to
the terms of this Agreement, the Corporation is entitled to receive or pay dividends or other
distributions, vote any securities or securities entitlements, give consents, waivers and
ratifications in respect of any financial assets, security entitlements and securities
accounts and exercise all rights and powers in respect of the Collateral.
	 
	9.	 	The Security Interest created under this Agreement secures payment and performance to the
Collateral Agent and the other Secured Parties of the Obligations.
	 
	10.	 	The Corporation hereby represents and warrants to the Collateral Agent that, on the date of
this Agreement with reference to the facts and circumstances then existing and subject to the
provisions of the Principal Finance Documents that:

	 	(a)	 	the representations and warranties made by the Corporation as Loan Party in
Section 3.01 (Organization; Powers), 3.02 (Authorization), 3.03 (Enforceability), 3.06
(No Material Adverse Change), 3.09 (Litigation; Compliance with Laws), 3.10
(Agreements), 3.19 (Security Documents) and 3.22 (Solvency) of the Credit Agreement,
are true and accurate as regards the Corporation and this Agreement;
	 
	 	(b)	 	none of the Collateral consists of consumer goods;
	 
	 	(c)	 	each agreement between the Corporation and a securities intermediary that
governs any securities account included in the Collateral or to which any Collateral
that is investment property has been credited either (i) specifies that the Province of
Ontario is the securities intermediary’s jurisdiction for the purposes of the PPSA or
(ii) is expressed to be governed by the laws of the Province of Ontario; and
	 
	 	(d)	 	none of the Collateral that is an interest in a partnership or a limited
liability company and is subject to the STA:

	 	(i)	 	is dealt in or traded on any securities exchange or in any
securities market;

	 	(ii)	 	expressly provides by its terms that it is a “security” for the
purposes of the STA or any other similar provincial legislation; or
	 
	 	(iii)	 	is held in a securities account;

	 
	 	 	 	except for any such Collateral of which the Collateral Agent or its nominee has
“control” within the meaning of Section 1(2) of the PPSA.

	11.	 	The representations and warranties contained in Section 10 will be deemed to be repeated as
true and correct in all material respects by the Corporation on the date of a Credit

- 8 -

 

	 	 	Event (as defined in the Credit Agreement) during the term of this Agreement with the same
effect as though made on and as of such date, except to the extent such representations and
warranties expressly relate to an earlier date.

	12.	 	Subject to the Agreed Security Principles, the Corporation hereby agrees that it shall, upon
request by the Applicable Representative, execute and deliver all such financing statements,
certificates, further assignments and documents and do all such further acts and things as may
be specified by the Applicable Representative as necessary or desirable to give effect to the
intent of this Agreement, or upon an Enforcement Event and while it is continuing, for the
collection, disposition, realization or enforcement of the Collateral or the Security Interest
created under this Agreement.
	 
	13.	 	The Corporation by way of security irrevocably appoints the Collateral Agent and any receiver
(which term, when used throughout this Agreement, shall include a receiver and manager)
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 Corporation by this Agreement or any
other agreement binding on the Corporation 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 Collateral); and
	 
	 	(b)	 	enabling the Collateral Agent to exercise, or delegate the exercise of, all or
any of the rights, powers and authorities conferred on them by or pursuant to this
Agreement or by law;
	 
	 	(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 Corporation under this Section 13 if:

	 	(d)	 	an Enforcement Event has occurred and is continuing; and/or
	 
	 	(e)	 	the Collateral Agent has received notice from the Applicable Representative,
the Loan Parties’ Agent and/or the Corporation that the Corporation 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 Corporation under this Section 13 unless and until it shall
have been (a) instructed to do so by the Applicable Representative and (b) indemnified
and/or secured and/or prefunded to its satisfaction.

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	 	The Corporation hereby acknowledges, consents and agrees that, to the extent permitted by
law, the power of attorney granted pursuant to this Section 13 is (until a final release in
favour of the Corporation has been signed by the Collateral Agent and delivered to the
Corporation under Section 27) coupled with an interest.
	 
	14. 	(a)	 To enable the Collateral Agent to better perfect and protect its security interest in the
investment property included in the Collateral, promptly upon request from time to time by the
Collateral Agent, acting reasonably, the Corporation shall, subject to the Agreed Security
Principles:

	 	(i)	 	deliver (or use its best efforts to cause to be delivered) to
the Collateral Agent, endorsed to the Collateral Agent or such nominee as it
may direct and/or accompanied by such instruments of assignment and transfer in
such form and substance as the Collateral Agent may reasonably request, any and
all instruments, certificated securities, letters of credit, documents of title
and chattel paper included in or relating to the Collateral as the Collateral
Agent may specify in its request, to be held by the Collateral Agent subject to
the terms of this Agreement;
	 
	 	(ii)	 	direct the issuer of any and all certificated securities
included in or relating to the Collateral as the Collateral Agent may specify
in its request to register the applicable security certificates in the name of
the Collateral Agent or such nominee as it may direct;
	 
	 	(iii)	 	direct the issuer of any and all uncertificated securities
included in or relating to the Collateral, as the Collateral Agent may specify
in its request, to register the Collateral Agent or such nominee as it may
direct as the registered owner of such uncertificated securities; and
	 
	 	(iv)	 	direct the securities intermediary for any security
entitlements or securities accounts included in or relating to the Collateral,
as the Collateral Agent may specify in its request, to transfer any or all of
the financial assets to which such security entitlements or securities accounts
relate to such securities account or securities accounts as the Collateral
Agent may specify such that the Collateral Agent shall become the entitlement
holder with respect to such financial assets or, if any Enforcement Event has
occurred and is continuing, the person entitled to exercise all rights with
respect to such securities account.

	 	(b)	 	Promptly upon request from time to time by the Collateral Agent, acting
reasonably, but subject to the Agreed Security Principles, the Corporation shall give
its consent in writing to:

	 	(i)	 	the entering into by any issuer of any uncertificated
securities included in or relating to the Collateral, as the Collateral Agent
may specify in its request, of a Control Agreement with the Collateral Agent in
respect of such uncertificated securities, which consent may be incorporated
into an

- 10 -

 

	 	 	 	agreement to which such issuer, the Collateral Agent and the Corporation are
parties; and

	 	(ii)	 	the entering into by any securities intermediary for any
securities accounts or security entitlements included in or relating to the
Collateral, as the Collateral Agent may specify in its request, of a Control
Agreement with the Collateral Agent in respect of such securities accounts or
security entitlements, which consent may be incorporated into an agreement to
which such securities intermediary, the Collateral Agent and the Corporation
are parties.

	 	(c)	 	Unless otherwise permitted under the Principal Finance Documents, the
Corporation covenants that it will not consent to, and represents and warrants to the
Collateral Agent that it has not heretofor consented to:

	 	(i)	 	the entering into by any issuer of any uncertificated
securities included in or relating to the Collateral of a Control Agreement in
respect of such uncertificated securities with any person other than the
Collateral Agent or such nominee or agent as it may direct; or
	 
	 	(ii)	 	the entering into by any securities intermediary for any
securities accounts or security entitlements included in or relating to the
Collateral of a Control Agreement with respect to such securities accounts or
security entitlements with any person other than the Collateral Agent or such
nominee or agent as it may direct.

	 	(d)	 	Unless otherwise permitted by the Principal Finance Documents, the Corporation
shall not enter into any agreement with any securities intermediary that governs any
securities account included in or relating to any Collateral that specifies any such
securities intermediary’s jurisdiction to be a jurisdiction other than the Province of
Ontario for the purposes of the STA or which is governed by the laws of a jurisdiction
other than the Province of Ontario or consent to any amendment to any such agreement
that would change such securities intermediary’s jurisdiction to a jurisdiction other
than the Province of Ontario for the purposes of the STA or its governing law to a
jurisdiction other than the Province of Ontario unless it has given the Collateral
Agent at least 30 days notice of any such agreement or amendment or the Collateral
Agent has agreed to such agreement or amendment.

	15.	 	The Corporation shall not change its name without first notifying the Collateral Agent of the
new name not less than 5 Business Days before the change takes effect and, subject to the
Agreed Security Principles, the Corporation shall, upon request by the Applicable
Representative, promptly take all such actions (including making all filings, recordings and
registrations) as may be necessary for the purpose of perfecting, protecting or maintaining
the priority of the security created by this Agreement whether as a result of a change of its
name or otherwise.

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	16.	 	If an Enforcement Event has occurred and is continuing, (a) the Collateral Agent may give
notice to any or all account debtors of the Corporation and to any or all persons liable to
the Corporation under an instrument to make all further payments to the Collateral Agent; (b)
the Collateral Agent may take control of all proceeds of the Collateral and may apply such
proceeds in accordance with the provisions of the Intercreditor Arrangements; and (c) the
Collateral Agent may hold as additional security any increase or profits received from any
Collateral in the Collateral Agent’s possession, and may apply any money received from such
Collateral in accordance with the provisions of the Intercreditor Arrangements. If an
Enforcement Event has occurred and is continuing, any payments or other proceeds of the
Collateral received by the Corporation from account debtors or from any persons liable to the
Corporation under an instrument shall be held by the Corporation in trust for the Collateral
Agent and paid over to the Collateral Agent upon request. The Collateral Agent will not be
obligated to keep any Collateral separate or identifiable. In the case of any instrument,
security or chattel paper comprising part of the Collateral, the Collateral Agent will not be
obligated to take any necessary or other steps to preserve rights against other persons.
	 
	17.	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent (a) may have any
Collateral comprising instruments, shares, stock, warrants, bonds, debentures, debenture stock
or other investment property registered in its name or in the name of its nominee; and (b)
shall be entitled but not bound or required to vote in respect of such Collateral at any
meeting at which the holder thereof is entitled to vote and, generally, to exercise any of the
rights which the holder of such Collateral may at any time have. Notwithstanding subsections
17(a) and (b), the Collateral Agent shall not be responsible for any loss occasioned by the
exercise of any of the rights described therein or by failure to exercise the same within the
time limit for the exercise thereof except for those losses resulting from the gross
negligence or wilful misconduct of the Collateral Agent or its employees or agents.
	 
	18.	 	If an Enforcement Event has occurred and is continuing, (a) the Collateral Agent may declare
that all or any portion of the Obligations are immediately due and payable; (b) the Collateral
Agent shall have, in addition to any other rights and remedies provided by law, the rights and
remedies of a secured party under the PPSA and other applicable legislation together with
those remedies provided by this Agreement; (c) the Collateral Agent may take possession of the
Collateral, enter upon any premises of the Corporation, otherwise enforce this Agreement and
enforce any rights of the Corporation in respect of the Collateral by any manner permitted by
law; (d) the Collateral Agent may use the Collateral in the manner and to the extent that the
Collateral Agent may consider appropriate; (e) the Collateral Agent may hold, insure, repair,
process, maintain, protect, preserve, prepare for disposition and dispose of the same; and (f)
the Collateral Agent may require the Corporation to assemble the Collateral and deliver or
make the Collateral available to the Collateral Agent at a reasonably convenient place
designated by the Collateral Agent.
	 
	19.	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent may (a) take
proceedings in any court of competent jurisdiction for the appointment of a receiver of the
Collateral; or (b) by appointment in writing appoint any person to be a receiver of

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	 	 	the Collateral and may remove any receiver so appointed by the Collateral Agent and appoint
another in its stead; and any such receiver appointed by instrument in writing shall, to the
extent permitted by applicable law, have all of the rights, benefits and powers of the
Collateral Agent and the other Secured Parties hereunder or under the PPSA or otherwise and
without limitation have the power (i) to take possession of the Collateral, (ii) to carry on
all or any part or parts of the business of the Corporation, (iii) to borrow money required
for the seizure, retaking, repossession, holding, insurance, repairing, processing,
maintaining, protecting, preserving, preparing for disposition, disposition of the
Collateral or for any other enforcement of this Agreement or for the carrying on of the
business of the Corporation on the security of the Collateral in priority to the Security
Interest created under this Agreement, and (iv) to sell, lease or otherwise dispose of the
whole or any part of the Collateral at public auction, by public tender or by private sale,
lease or other disposition either for cash or upon credit, at such time and upon such terms
and conditions as the receiver may determine; provided that if any such disposition involves
deferred payment the Secured Parties will not be accountable for and the Corporation will
not be entitled to be credited with the proceeds of any such disposition until the monies
therefor are actually received; and further provided that any such receiver shall be deemed
the agent of the Corporation, and the Secured Parties shall not be in any way responsible
for any misconduct or negligence of any such receiver.
	 
	20.	 	All amounts received by the Collateral Agent or a receiver, whether in the exercise of that
person’s powers or otherwise, shall (subject to the claims of all secured and unsecured
creditors (if any) ranking in priority to the Security Interest created by this Agreement) be
applied in accordance with the provisions of the Intercreditor Arrangements.
	 
	21.	 	All such expenses and all amounts borrowed on the security of the Collateral under Section
19(iii) shall bear interest at the rate of interest, subject to the provisions set out in
Section 22 below, applicable to the Obligations (or the applicable rates of interest if
different rates of interest apply to different parts of the Obligations, as determined in
accordance with the Loan Documents) as at the date of such demand and shall be added to the
Obligations. If the proceeds from the disposition of the Collateral fail to satisfy the
Obligations and the expenses incurred by the Collateral Agent or any other person in relation
to the enforcement hereof, the Corporation shall be liable to pay any deficiency to the
Collateral Agent promptly following demand.
	 
	22.	 	Solely for purposes of the Interest Act (Canada), (i) whenever interest is to be computed or
expressed at any rate (the “Specified Rate”) on the basis of a year of 360 days or any other
period of time less than a calendar year hereunder or under any other Loan Documents, the
annual rate of interest to which each such Specified Rate is equal is such Specified Rate
multiplied by a fraction, the numerator of which is the actual number of days in the relevant
year and the denominator of which is 360 or such other period of time, respectively; (ii) the
principle of deemed reinvestment of interest shall not apply to any interest calculation
hereunder; and (iii) the rates of interest stipulated herein are intended to be nominal rates
and not effective rates or yields.

- 13 -

 

	23.	 	The Corporation agrees that:

	 	(a)	 	the Collateral Agent may grant extensions of time and other indulgences, take
and give up security, accept compositions, grant releases and discharges and otherwise
deal with the Corporation and, if an Enforcement Event has occurred and is continuing,
debtors of the Corporation, sureties and others, and with the Collateral or other
security as the Collateral Agent may see fit without prejudice to the liability of the
Corporation and the rights of the Secured Parties under this Agreement;
	 
	 	(b)	 	if the Corporation amalgamates with one or more corporations, the Obligations
and the Security Interest created under this Agreement shall continue and shall extend
to the present and future undertaking, property and assets of the amalgamated
corporation, as if the amalgamated corporation had executed this Agreement as the
Corporation;
	 
	 	(c)	 	nothing in this Agreement shall obligate any Secured Party to make any loan or
accommodation to the Corporation or extend the time for payment or satisfaction of the
Obligations;
	 
	 	(d)	 	any failure by the Collateral Agent to exercise any right, power or remedy in
this Agreement shall not constitute a waiver thereof and no single or partial exercise
by the Collateral Agent of any right, power or remedy shall preclude any other or
further exercise thereof or of another right, power or remedy for the enforcement of
this Agreement or the payment in full of the Obligations;
	 
	 	(e)	 	no amendment or waiver of or supplement to any provision of this Agreement
shall in any event be effective unless it is in writing and signed by the Collateral
Agent, and then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given;
	 
	 	(f)	 	no waiver or act or omission of the Secured Parties shall extend to or be taken
in any manner whatsoever to affect any subsequent breach by the Corporation or the
rights resulting therefrom;
	 
	 	(g)	 	the Collateral Agent may assign and/or transfer all or part of its rights or
obligations under this Agreement to any replacement collateral agent appointed in
accordance with the First Lien Intercreditor Agreement;
	 
	 	(h)	 	all rights of the Secured Parties under this Agreement shall be assignable and,
in any action brought by an assignee to enforce such rights, the Corporation shall not
assert against the assignee any claim or defence which the Corporation now has or may
hereafter have against any Secured Party;
	 
	 	(i)	 	subject to Section 4.05 of the First Lien Intercreditor Agreement (to the
extent permitted by the laws of the Province of Ontario and the federal laws of Canada
applicable therein), each of the Collateral Agent and any receiver shall have full
power to delegate (either generally or specifically) the powers, authorities and

- 14 -

 

	 	 	 	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;
	 
	 	(j)	 	the Corporation shall not assign or transfer any of its rights or obligations
under this Agreement without the prior written consent of the Collateral Agent (acting
in accordance with the First Lien Intercreditor Agreement);
	 
	 	(k)	 	all rights of the Secured Parties under this Agreement shall enure to the
benefit of their respective successors and assigns and all obligations of the
Corporation under this Agreement shall bind the Corporation, its successors and
permitted assigns;
	 
	 	(l)	 	this Agreement shall be governed in all respects by the laws of the Province of
Ontario and the federal laws of Canada applicable therein and, without prejudice to the
ability of the Collateral Agent to enforce this Agreement in any other proper
jurisdiction, the Corporation hereby irrevocably attorns and submits to the
non-exclusive jurisdiction of the courts of the Province of Ontario in any suit, action
or proceeding relating to this Agreement;
	 
	 	(m)	 	any notice or communication to be given under this Agreement to the Corporation
or the Collateral Agent shall be effective if given in accordance with the provisions
of the First Lien Intercreditor Agreement;
	 
	 	(n)	 	the Corporation agrees that value has been given by the Secured Parties and
that the Security Interest created under this Agreement is intended to attach (a) with
respect to the Collateral which is in existence as of the date hereof, upon execution
of this Agreement, and (b) with respect to the Collateral which comes into existence
after the date hereof, upon the Corporation acquiring any rights therein and in each
case the parties do not intend to postpone the attachment of the Security Interest
created by this Agreement;
	 
	 	(o)	 	any provision of this Agreement which is or becomes prohibited or unenforceable
in any relevant jurisdiction shall not invalidate or impair the remaining provisions
hereof which shall, to the maximum extent permitted by law, be deemed severable from
such prohibited or unenforceable provision and any such prohibition or unenforceability
in any such jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction; and
	 
	 	(p)	 	the remedies under this Agreement may be exercised from time to time separately
or in combination and are in addition to and not in substitution for any other rights
however created.

	24.	 	If any Enforcement Event has occurred and is continuing, the Collateral Agent will not be
liable or responsible for any failure to seize, collect, realize, or obtain payment with
respect to the Collateral and is not bound to institute proceedings or to take other steps for
the purpose of seizing, collecting, realizing or obtaining possession or payment with

- 15 -

 

	 	 	respect to the Collateral or for the purpose of preserving any rights of the Collateral
Agent, the Corporation or any other person, in respect of the Collateral. The Collateral
Agent will not be liable or responsible for any loss occasioned by any sale or other dealing
with the Collateral or by the retention of or failure to sell or otherwise deal with the
Collateral or bound to protect the Collateral from depreciating in value or becoming
worthless.
	 
	25.	 	The powers conferred on the Collateral Agent hereunder are solely to protect its interest in
the Collateral and shall not impose any duty on it to exercise any such powers. Except for
reasonable care (discussed in Section 26 below) of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Collateral Agent shall have no
duty as to any Collateral or responsibility for:

	 	(a)	 	ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Collateral, whether or not the
Collateral Agent has or is deemed to have notice or knowledge of such matters, or
	 
	 	(b)	 	taking any necessary steps to preserve rights against prior parties or any
other rights pertaining to any Collateral.

	26.	 	The Collateral Agent is required to exercise reasonable care in the custody and preservation
of any of the Collateral in its possession; provided, however, the Collateral Agent shall be
deemed to have exercised reasonable care in the custody and preservation of any of the
Collateral if it exercises the same degree of care as it would exercise with respect to its
own property kept at the same place or if it takes such action for that purpose as the
Corporation requests in writing at times but failure of the Collateral Agent to comply with
any such request at any time shall not in itself be deemed a failure to exercise reasonable
care.
	 
	27.	 	The security constituted by this Agreement shall be released, reassigned, re-transferred and
cancelled (as applicable):

	 	(a)	 	by the Collateral Agent (acting on the instructions of the Applicable
Representative) at the request and cost of the Corporation, upon the Secured
Obligations 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 Corporation 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
the laws of the Province of Ontario and the federal laws of Canada applicable therein).

	28.	 	If the Corporation disposes of any Collateral and that disposal is permitted by the Principal
Finance Documents, such Collateral shall, unless an Enforcement Event has occurred and is
continuing, be automatically released, re-assigned, re-transferred and cancelled (as
applicable) from the Security Interest created under this Agreement with effect from the day
of such disposal and the Collateral Agent (if so instructed by the

- 16 -

 

	 	 	Applicable Representative and at the expense and cost of the Corporation) shall do all such
acts which are reasonably requested by the Corporation in order to release, re-assign,
re-transfer and cancel (as applicable) the relevant Collateral from the Security Interest
created under this Agreement. Any or all of the Collateral shall also be released,
re-assigned, re-transferred and cancelled (as applicable) in accordance with and to the
extent permitted by the Intercreditor Arrangements.
	 
	29.	 	If any payment received or recovered by any Secured Party, a receiver, or any other person on
behalf of any of them is or is reasonably likely to be avoided by law or required to be repaid
to a liquidator or similar official:

	 	(a)	 	such payment shall be deemed not to have affected or discharged
the liability of the Corporation under this Agreement or the Security Interest
given by the Corporation in favour of the Collateral Agent or, as the case may
be, the relevant Secured Party and, the Collateral Agent, each Secured Party
and the Corporation shall, to the maximum extent permitted by law, be restored
to the position in which each would have been if such payment had not been
received or recovered; and
	 
	 	(b)	 	the Collateral Agent and each other Secured Party shall be
entitled to exercise all its rights which it would have been entitled to
exercise if such payment had not been received or recovered,

	 	 	 	notwithstanding that the Collateral Agent may have signed a release pursuant to
Section 27 or 28.

	30.	 	In connection with any termination or release pursuant to Section 27 or 28 above, the
Collateral Agent shall promptly (at the expense and cost of the Corporation) execute and
deliver to the Corporation all releases and PPSA discharge statements and similar documents
that the Corporation shall reasonably request to evidence such termination or release. Any
execution and delivery of documents pursuant to this Section 30 shall be without recourse to
or representation or warranty by the Collateral Agent or any Secured Party. The Corporation
shall reimburse the Collateral Agent promptly following demand for all reasonable costs and
out of pocket expenses, including the reasonable fees, charges and expenses of counsel,
incurred by it in connection with any action contemplated by this Section 30.
	 
	31.	 	Time shall be of the essence of this Agreement.
	 
	32.	 	The Corporation acknowledges receipt of a copy of this Agreement.
	 
	33.	 	This Agreement may be signed in counterparts (including counterparts signed by facsimile
transmission) and each of such counterparts shall constitute an original document and such
counterparts, taken together, shall constitute one and the same instrument.
	 
	34.	 	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

- 17 -

 

	 	 	this Agreement or (b) any neglect or default in connection with the Collateral or (c) the
taking possession or realisation of all or any part of the Collateral, except to the extent
provided in the Principal Finance Documents.
	 
	35.	 	To the extent set out in Section 4.11 of the First Lien Intercreditor Agreement, the
Corporation shall, notwithstanding any release or discharge of all or any part of the
security, indemnify the Collateral Agent, its agents, attorneys, nominee(s), 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 Corporation 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.

[signature page follows]

- 18 -

 

DATED as of the date first set forth above.

	 	 	 	 	 
	 	DOPACO CANADA, INC.

 	 
	 	Per: 	            /s/ Cindi Lefari
 	 
	 	  	Name: Cindi Lefari 	 
	 	  	Title:   Authorised Signatory

	 
	 
	 	 	I have authority to bind the Corporation

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