Document:

exv4w513

Exhibit 4.513

Whakatane Mill Limited as Chargor

Wilmington Trust (London) Limited as Collateral Agent

Charge Over Account

NOTE: 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.

 

 

Contents

	 	 	 	 	 

	1 Interpretation
	 	 	1	 
	 
	 	 	 	 
	1.1 Definitions in the First Lien Intercreditor Agreement
	 	 	1	 
	1.2 Definitions
	 	 	1	 
	1.3 Construction
	 	 	4	 
	1.4 Headings
	 	 	5	 
	1.5 Corporations Act and PPS Act
	 	 	6	 
	1.6 Intercreditor Arrangements prevail
	 	 	6	 
	1.7 Capacity and benefit
	 	 	6	 
	1.8 Collateral Agent’s authority and instructions
	 	 	6	 
	 
	 	 	 	 
	2 Consideration
	 	 	6	 
	 
	 	 	 	 
	3 Security interest
	 	 	7	 
	 
	 	 	 	 
	3.1 Chargor must pay the Secured Liabilities
	 	 	7	 
	3.2 Creation of Security Interest
	 	 	7	 
	3.3 Priority amount
	 	 	7	 
	3.4 Mandatory action
	 	 	7	 
	 
	 	 	 	 
	4 Release and reinstatement
	 	 	7	 
	 
	 	 	 	 
	4.1 Release and Reinstatement
	 	 	7	 
	4.2 Release of Secured Property
	 	 	8	 
	4.3 Reinstatement of rights
	 	 	8	 
	 
	 	 	 	 
	5 Undertakings
	 	 	8	 
	 
	 	 	 	 
	5.1 Operation of Deposit Account
	 	 	8	 
	5.2 Notice to Bank
	 	 	9	 
	5.3 Prohibited dealings
	 	 	9	 
	 
	 	 	 	 
	6 Representations and warranties
	 	 	10	 
	 
	 	 	 	 
	6.1 Representations and warranties
	 	 	10	 
	6.2 Reliance
	 	 	10	 
	 
	 	 	 	 
	7 Default powers
	 	 	10	 
	 
	 	 	 	 
	7.1 General
	 	 	10	 
	7.2 Statutory and implied powers
	 	 	10	 
	7.3 Operation of Deposit Account
	 	 	10	 
	7.4 General dealings
	 	 	11	 
	7.5 Order of enforcement
	 	 	11	 
	7.6 Investment of money
	 	 	11	 
	7.7 Ancillary powers
	 	 	12	 
	7.8 Appointment of Receivers
	 	 	12	 
	 
	 	 	 	 
	8 Receivers
	 	 	13	 
	 
	 	 	 	 
	8.1 Agent
	 	 	13	 
	8.2 Powers
	 	 	13	 
	 
	 	 	 	 
	9 Exercise of default rights
	 	 	13	 
	 
	 	 	 	 
	9.1 No hindrance
	 	 	13	 

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	9.2 Collateral Agent in possession
	 	 	13	 
	9.3 Exclusion of legislation
	 	 	14	 
	9.4 Default notice
	 	 	14	 
	9.5 Withdrawal or suspension
	 	 	14	 
	 
	 	 	 	 
	10 Application of proceeds
	 	 	14	 
	 
	 	 	 	 
	11 Third party dealings
	 	 	14	 
	 
	 	 	 	 
	11.1 Collateral Agent’s receipts and discharges
	 	 	14	 
	11.2 No duty to enquire
	 	 	15	 
	 
	 	 	 	 
	12 Preservation of Collateral Agent’s rights
	 	 	15	 
	 
	 	 	 	 
	12.1 Continuing security
	 	 	15	 
	12.2 Primary obligations
	 	 	15	 
	12.3 Preservation of Chargor’s obligations
	 	 	15	 
	12.4 Suspension of Chargor’s rights
	 	 	15	 
	12.5 Insolvency of debtor
	 	 	16	 
	12.6 Recovery of costs
	 	 	16	 
	 
	 	 	 	 
	13 Payments and taxes
	 	 	16	 
	 
	 	 	 	 
	13.1 Taxes
	 	 	16	 
	13.2 Currency of payment
	 	 	16	 
	 
	 	 	 	 
	14 Attorney
	 	 	17	 
	 
	 	 	 	 
	14.1 Appointment
	 	 	17	 
	14.2 General
	 	 	18	 
	 
	 	 	 	 
	15 Indemnity
	 	 	18	 
	 
	 	 	 	 
	16 Disposal of the Secured Property is final 
	 	 	18	 
	 
	 	 	 	 
	17 General
	 	 	18	 
	 
	 	 	 	 
	17.1 Deposit of documents
	 	 	18	 
	17.2 Registration of charge
	 	 	19	 
	17.3 Further assurance
	 	 	19	 
	17.4 Authority to fill in blanks
	 	 	19	 
	17.5 Supply of information
	 	 	20	 
	17.6 Prompt performance
	 	 	20	 
	17.7 Certificates
	 	 	20	 
	17.8 Supervening legislation
	 	 	20	 
	17.9 Amendment
	 	 	20	 
	17.10 Receipts
	 	 	20	 
	17.11 Waiver and exercise of rights
	 	 	20	 
	17.12 Conflict of interest
	 	 	21	 
	17.13 Rights cumulative
	 	 	21	 
	17.14 Other Encumbrances or judgments
	 	 	21	 
	17.15 Indemnities
	 	 	21	 
	17.16 Approval and consent
	 	 	21	 
	17.17 Superannuation legislation
	 	 	22	 
	17.18 Time is of the essence
	 	 	22	 

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	17.19 Each signatory bound
	 	 	22	 
	17.20 Assignment
	 	 	22	 
	17.21 Code of Banking Practice
	 	 	22	 
	17.22 Counterparts
	 	 	22	 
	17.23 Governing law and jurisdiction
	 	 	22	 
	17.24 Service of process
	 	 	23	 
	17.25 PPS Act
	 	 	23	 
	17.26 Notices
	 	 	23	 
	17.27 Partial invalidity
	 	 	23	 
	17.28 Obligations independent
	 	 	23	 
	17.29 Enforcement
	 	 	24	 
	 
	 	 	 	 
	Schedule
	 	 	25	 

page iii

 

	 	 	Date 8 September 2011
	 
	 	 	Parties
	 
	 	 	Whakatane Mill Limited ARBN 143 246 557, a company incorporated in New Zealand
with New Zealand company number 1837447, of C/- Bell Gully, Level 22, Vero Centre, 48
Shortland Street, Auckland, New Zealand (as Chargor)
	 
	 	 	Wilmington Trust (London) Limited, a company incorporated in England and Wales with
company number 05650152, of 1 King’s Arms Yard, London EC2R 7AF, United Kingdom (as
Collateral Agent as defined below)
	 
	 	 	Agreed terms
	 
	1	 	Interpretation
	 
	1.1	 	Definitions in the First Lien Intercreditor Agreement
	 
	 	 	Words and expressions defined in the First Lien Intercreditor Agreement (as
defined below) have the same meaning when used in this document unless the context
requires otherwise or unless expressly defined in this document.
	 
	1.2	 	Definitions
	 
	 	 	In this document:
	 
	 	 	2009 Senior Secured Note Indenture means the indenture dated 5 November 2009, among the
Issuers (as defined therein), 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.
	 
	 	 	2010 Senior Secured Note Indenture means the indenture dated 15 October 2010, among RGHL
US Escrow I Inc., RGHL US Escrow I LLC, RGHL Escrow Issuer (Luxembourg) I S.A. 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, as amended, extended, restructured, renewed, refunded, novated, supplemented,
restated, replaced or modified from time to time.
	 
	 	 	Additional Agreement has the meaning given to it in the First Lien Intercreditor
Agreement.

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	 	 	Agreed Security Principles has the meaning given to it in the Credit Agreement and the
2009 Senior Secured Note Indenture and, to the extent of
any inconsistency, the meaning it is given in the Credit Agreement shall prevail.
	 
	 	 	Amendment No. 1 and Joinder Agreement means the joinder agreement dated 21 January 2010
made among (amongst others) the Collateral Agent, The Bank of New York Mellon, Credit
Suisse AG and Reynolds Group Holdings Limited pursuant to which the Collateral Agent is
appointed as an additional collateral agent and becomes party to the First Lien
Intercreditor Agreement.
	 
	 	 	Applicable Representative has the meaning given to it in the First Lien Intercreditor
Agreement.
	 
	 	 	Attorney means any attorney appointed under this document and any sub-attorney appointed
by an Attorney.
	 
	 	 	August 2011 Senior Secured Note Indenture means the indenture dated 9 August 2011 among
the Issuers (as defined therein) 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, as amended, extended, restructured,
renewed, refunded, novated, supplemented, restated, replaced or modified from time to
time.
	 
	 	 	Authorised Officer means:

	 	(a)	 	in the case of the Collateral Agent, a director or secretary, or an
officer whose title contains the word “director”, “chief”, “head”, “president” or
“manager” or a person performing the functions of any of them, or any other person
appointed by the Collateral Agent as an “Authorised Officer” for the purposes of
this document; and
	 
	 	(b)	 	in the case of the Chargor a director or secretary or any other
person appointed by the Chargor to act as an “Authorised Officer” (howsoever
described) for the purposes of this document.

	 	 	Bank means Australia and New Zealand Banking Group Limited ABN 11 005 357 522.
	 
	 	 	Business Day means a day which is not a Saturday, Sunday or bank or public holiday in New
York, London, Sydney and Melbourne.
	 
	 	 	Collateral Agent means Wilmington Trust (London) Limited in its capacity as collateral
agent for the Secured Parties as appointed under the Amendment No. 1 and Joinder
Agreement, and includes its successors, permitted transferees and permitted assigns in
such capacity.
	 
	 	 	Corporations Act means the Corporations Act 2001 (Cth).
	 
	 	 	Credit Agreement means the second amended and restated credit agreement dated 9 August
2011, between, among others, Reynolds Group Holdings Limited, the borrowers listed
therein and Credit Suisse AG as administrative agent, as amended, amended or restated,
supplemented or otherwise modified from time to time.

page 2

 

	 	 	Deposit Account means the account maintained by the Chargor with the Bank at its Collins
Street, Melbourne, Victoria branch, swift code ANZBAU3MXXX, BSB number 013006, account
number [                    ] and named Whakatane Mill Ltd.
	 
	 	 	Encumbrance has the meaning given to the term “Lien” in the First Lien Intercreditor
Agreement. It includes a Security Interest.
	 
	 	 	Enforcement Event means an “Event of Default” under, and as defined in, the First Lien
Intercreditor Agreement.
	 
	 	 	Existing Intercreditor Agreement means the existing intercreditor agreement dated 11 May
2007 (as amended by a letter dated 21 June 2007 and a further letter dated 29 June 2007,
as amended and restated on 5 November 2009 and as further amended on 5 November 2010)
between, inter alia, Beverage Packaging Holdings (Luxembourg) I S.A., Rank Group Holdings
Limited (now Reynolds Group Holdings Limited), Beverage Packaging Holdings (Luxembourg)
II S.A., Beverage Packaging Holdings (Luxembourg) III S.à r.l., Credit Suisse AG
(formerly Credit Suisse) as security trustee and others.
	 
	 	 	February 2011 Senior Secured Note Indenture means the indenture dated 1 February 2011
among the Issuers (as defined therein) 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, as amended, extended,
restructured, renewed, refunded, novated, supplemented, restated, replaced or modified
from time to time.
	 
	 	 	First Lien Intercreditor Agreement means the first lien intercreditor agreement dated 5
November 2009, between, among others, The Bank of New York Mellon, as the collateral
agent, Credit Suisse AG, the Bank of New York Mellon as trustee under the 2009 Senior
Secured Note Indenture, the 2010 Senior Secured Note Indenture, the February 2011 Senior
Secured Note Indenture and the August 2011 Senior Secured Note Indenture, and the
grantors from time to time party thereto and the representatives from time to time party
thereto as amended by Amendment No. 1 and Joinder Agreement and as may be further
amended, extended, restated or otherwise modified.
	 
	 	 	Initial Deposit Amount means any amount credited to the Deposit Account on or before the
date of this document.
	 
	 	 	Intercreditor Arrangements means the First Lien Intercreditor Agreement and the Existing
Intercreditor Agreement, in each case as amended, novated, supplemented, restated or
modified from time to time.
	 
	 	 	Loan Documents means the “Credit Documents” under, and as defined in, the First Lien
Intercreditor Agreement.
	 
	 	 	Loan Parties means the “Grantors” under, and as defined in, the First Lien Intercreditor
Agreement, and Loan Party means any one of them.
	 
	 	 	Loan Parties’ Agent means Reynolds Group Holdings Limited (formerly known as Rank Group
Holdings Limited).
	 
	 	 	PPS Act means the Personal Property Securities Act 2009 (Cth).

page 3

 

	 	 	Principal Finance Documents means the Credit Agreement, the 2009 Senior Secured Note
Indenture, the 2010 Senior Secured Note Indenture, the February 2011 Senior Secured Note
Indenture, the August 2011 Senior Secured Note Indenture, the Intercreditor Arrangements
and any Additional Agreement.
	 
	 	 	Receiver means a receiver or receiver and manager appointed by the Collateral Agent under
this document and any person who derives a right directly or indirectly from a Receiver.
	 
	 	 	Representative of a person means an officer, employee, contractor or agent of that
person.
	 
	 	 	Secured Liabilities means all present and future obligations and liabilities (whether
actual or contingent and whether owed jointly or severally or in any other capacity
whatsoever) of each Loan Party and each grantor of a security interest to the Secured
Parties (or any of them) under each or any of the Loan Documents, together with all
costs, charges and expenses incurred by any Secured Party in connection with the
protection, preservation or enforcement of its respective rights under the Loan Documents
or any other document evidencing or securing any such liabilities.
	 
	 	 	Secured Parties means the “Secured Parties” under, and as defined in, the First Lien
Intercreditor Agreement, and Secured Party means any one of them.
	 
	 	 	Secured Property means the Chargor’s right, title and interest in connection with the
Deposit Account including its right, title and interest to:

	 	(a)	 	repayment of the Initial Deposit Amount;
	 
	 	(b)	 	repayment of any other money credited to the Deposit Account after
the date of this document;
	 
	 	(c)	 	interest payable on or after the date of this document on money
credited to the Deposit Account (whether or not the interest is credited to the
Deposit Account; and
	 
	 	(d)	 	any other chose in action or right of the Chargor arising in
connection with the Deposit Account.

	 	 	Security means any document or transaction which reserves or creates a Security Interest.
	 
	 	 	Security Interest means a security interest under the PPS Act and any interest or right
which secures the payment of a debt or other monetary obligation or the compliance with
any other obligation. It includes any retention of title to any property and any right
to set off or withhold payment of any deposit or other money.
	 
	1.3	 	Construction
	 
	 	 	Unless expressed to the contrary:

	 	(a)	 	words in the singular include the plural and vice versa;
	 
	 	(b)	 	any gender includes the other genders;

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	 	(c)	 	if a word or phrase is defined its other grammatical forms have
corresponding meanings;
	 
	 	(d)	 	“includes” means includes without limitation;
	 
	 	(e)	 	no rule of construction will apply to a clause to the disadvantage of
a party merely because that party put forward the clause or would otherwise benefit
from it; and
	 
	 	(f)	 	a reference to:

	 	(i)	 	a person includes a partnership, joint venture,
unincorporated association, corporation and a government or statutory body or
authority;
	 
	 	(ii)	 	a person includes the person’s legal personal
representatives, successors, assigns and persons substituted by novation;
	 
	 	(iii)	 	any legislation includes subordinate legislation under
it and includes that legislation and subordinate legislation as modified or
replaced;
	 
	 	(iv)	 	an obligation includes a representation or warranty and
a reference to a failure to comply with an obligation includes a breach of
representation or warranty;
	 
	 	(v)	 	a right includes a benefit, remedy, discretion or
power;
	 
	 	(vi)	 	time is to local time in Melbourne;
	 
	 	(vii)	 	“$” or “dollars” is a reference to the currency of the
Commonwealth of Australia;
	 
	 	(viii)	 	this or any other document includes the document as novated, varied or
replaced and despite any change in the identity of the parties;
	 
	 	(ix)	 	writing includes any mode of representing or
reproducing words in tangible and permanently visible form, and includes fax
transmissions;
	 
	 	(x)	 	any thing (including any amount) is a reference to the
whole or any part of it and a reference to a group of things or persons is a
reference to any one or more of them;
	 
	 	(xi)	 	this document includes all schedules and annexures to
it; and
	 
	 	(xii)	 	a clause, schedule or annexure is a reference to a
clause, schedule or annexure, as the case may be, of this document.

	1.4	 	Headings
	 
	 	 	Headings do not affect the interpretation of this document.

page 5

 

	1.5	 	Corporations Act and PPS Act
	 
	 	 	Unless expressed to the contrary:

	 	(a)	 	“controller”, “corporation”, “holding company”, “marketable
security”, “prospective liability”, “related body corporate” and “subsidiary” each
has the meaning which it is defined to have in the Corporations Act; and
	 
	 	(b)	 	“account”, “attach”, “chattel paper”, “commercial consignment”,
“control’, “perfection”, “purchase money security interest”, “personal property”,
“PPS lease”, “registration commencement time” and “verification statement” each has
the meaning which it is defined to have in the PPS Act.

	1.6	 	Intercreditor Arrangements prevail
	 
	 	 	This document is subject to the terms of the Intercreditor Arrangements. In the
event of a conflict between the terms of this document and the Intercreditor
Arrangements, the terms of the Intercreditor Arrangements will prevail.
	 
	1.7	 	Capacity and benefit
	 
	 	 	The Collateral Agent enters into this document in its capacity as collateral agent
for the Secured Parties, and holds the benefit of all rights conferred, and all
undertakings and covenants of the Chargor, under this document for itself and the Secured
Parties.
	 
	1.8	 	Collateral Agent’s authority and instructions

	 	(a)	 	The Chargor acknowledges and agrees that the Collateral Agent’s actions
under this document are on the basis of authority conferred under the Principal
Finance Documents to which the Collateral Agent is a party, and on directions of the
Applicable Representative. In so acting, the Collateral Agent shall have, subject
to the terms of the Principal Finance Documents, the protections, immunities,
rights, indemnities and benefits conferred on the collateral agent under the
Principal Finance Documents.
	 
	 	(b)	 	For the avoidance of doubt, it is acknowledged that the Collateral
Agent is permitted to act on the instructions of the Applicable Representative in
accordance with clause 2.02(a)(i) of the First Lien Intercreditor Agreement. It is
further acknowledged that the Collateral Agent may assume that any and all
instructions received by it from the Applicable Representative under this document
are reasonable, and that any question as to the reasonableness or otherwise of such
instructions shall be determined as between the Applicable Representative and the
Chargor.

	2	 	Consideration
	 
	 	 	The Chargor enters into this document for valuable consideration from the
Collateral Agent and receipt of the consideration is acknowledged.

page 6

 

	3	 	Security interest
	 
	3.1	 	Chargor must pay the Secured Liabilities
	 
	 	 	The Chargor agrees to pay the Secured Liabilities in accordance with the terms of
any agreement in writing to do so. However, if an Enforcement Event has occurred and is
continuing, the Collateral Agent may declare at any time by notice to the Chargor that
the Secured Liabilities are either payable on demand or immediately due for payment.
	 
	3.2	 	Creation of Security Interest

	 	(a)	 	The Chargor as beneficial owner charges the Secured Property to the
Collateral Agent to secure the payment of the Secured Liabilities.
	 
	 	(b)	 	This document constitutes a fixed charge over any interest of the
Chargor in the Secured Property.

	3.3	 	Priority amount

	 	(a)	 	The maximum prospective liability secured by this document (which includes
the obligations of the Chargor to pay or repay and discharge the Secured Liabilities
including all principal and amounts in the nature of principal, interest and amounts
in the nature of interest, fees, costs, amounts due under indemnities and all other
amounts coming within the definition of Secured Liabilities) for the purpose of
fixing priorities under section 282 of the Corporations Act but for no other purpose
is $18,000,000,000.
	 
	 	(b)	 	This document secures the payment of all prospective liabilities from
time to time of the Chargor to the Collateral Agent and the amount secured is not
limited to $18,000,000,000. 

	3.4	 	Mandatory action
	 
	 	 	To the extent that any law requires that something must be done (such as obtaining
consent) before the Chargor may validly charge any of the Secured Property, the charge
under clause 3.2 (“Creation of Security Interest”) only takes effect in relation to that
Secured Property when the thing required is done. Subject to the Agreed Security
Principles, the Chargor agrees to do anything necessary to ensure that it is done.
	 
	4	 	Release and reinstatement
	 
	4.1	 	Release and Reinstatement
	 
	 	 	The Security constituted by this document shall be released, reassigned,
retransferred and/or cancelled (as applicable):

	 	(a)	 	by the Collateral Agent (acting on the instructions of the Applicable
Representative) at the request and cost of the Chargor, upon the Secured Liabilities
being irrevocably paid or discharged in full and none of the Secured Parties being
under any further actual or contingent

page 7

 

	 	 	 	obligation to make advances or provide other financial accommodation to the
Chargor or any other person under any of the Loan Documents; or
	 
	 	(b)	 	in accordance with, and to the extent required by, the Intercreditor
Arrangements (to the extent it is possible to give effect to such arrangements under
the laws of Victoria).

	4.2	 	Release of Secured Property
	 
	 	 	If the Chargor disposes of any Secured Property and that disposal is permitted by
the Principal Finance Documents, that Secured Property shall, unless an Enforcement Event
has occurred and is continuing, be automatically released, reassigned, retransferred
and/or cancelled (as applicable) from the Security constituted under this document with
effect from the day of such disposal and the Collateral Agent (at the expense and cost of
the Chargor) shall do all such acts which are reasonably requested by the Chargor in
order to release, reassign, retransfer and/or cancel (as applicable) the relevant Secured
Property from the Security constituted under this document (including, but not limited
to, discharging any registered mortgage in respect of Secured Property). Any or all of
the Secured Property shall also be released, reassigned, retransferred and/or cancelled
(as applicable) in accordance with and to the extent permitted by the Intercreditor
Arrangements.
	 
	4.3	 	Reinstatement of rights
	 
	 	 	If any payment received or recovered by any Secured Party, a Receiver, or any
other person on behalf of any of them is or may be voided 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 Chargor under this document or any other Security given by the
Chargor 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 Chargor 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.

	 	 	The Chargor’s obligations under this clause 4.3 are continuing obligations, independent
of the Chargor’s other obligations under this document and continue after this charge
ends.
	 
	5	 	Undertakings
	 
	5.1	 	Operation of Deposit Account

	 	(a)	 	The Chargor must operate the Deposit Account in accordance with this
clause 5.1 and otherwise on reasonable terms approved by the Collateral Agent.

page 8

 

	 	(b)	 	The Chargor must ensure the operating procedures of the Deposit
Account are not varied, repudiated, rescinded, terminated or rendered void, voidable
or unenforceable.
	 
	 	(c)	 	Subject to clause 7.3, the Chargor agrees that (unless otherwise
agreed by the Collateral Agent):

	 	(i)	 	without the prior consent of the Collateral Agent
(acting on the instructions of the Applicable Representative), it must not
close, make withdrawals from, transfer funds from or otherwise operate the
Deposit Account (but, for the avoidance of doubt, the Chargor may at any time
freely deposit funds into the Deposit Account);
	 
	 	(ii)	 	an Authorised Officer of the Collateral Agent must be a
signatory to any withdrawal from the Deposit Account; and
	 
	 	(iii)	 	at any time while an Enforcement Event has occurred
and is continuing, the Collateral Agent (without giving notice under any law
or otherwise) may operate the Deposit Account by the signature only of the
Authorised Officer of the Collateral Agent and give notice to the Bank that
this right has arisen.

	5.2	 	Notice to Bank
	 
	 	 	On the date of this document (or by such later date that the Collateral Agent
agrees), the Chargor must give to the Bank a notice in the form of the schedule properly
completed and signed by the Chargor, and will use commercially reasonable efforts to
procure that the Bank executes the acknowledgement within the notice and returns a copy
to the Collateral Agent.
	 
	5.3	 	Prohibited dealings
	 
	 	 	Unless permitted by the terms of this document or the Principal Finance Documents,
without the consent of the Collateral Agent (acting on the instructions of the Applicable
Representative), the Chargor may not, and may not agree to, do any of the following:

	 	(a)	 	dispose of the Secured Property;
	 
	 	(b)	 	create or allow to exist another Encumbrance over the Secured
Property;
	 
	 	(c)	 	waive any of the Chargor’s rights or release any person from its
obligations in connection with the Secured Property;
	 
	 	(d)	 	cause or permit the operating procedures of the Deposit Account to be
varied, repudiated, rescinded, terminated or rendered void, voidable or
unenforceable; or
	 
	 	(e)	 	assign or otherwise deal with the Secured Property, this document or
any interest in them, or allow any interest in them to arise or be varied.

page 9

 

	6	 	Representations and warranties
	 
	6.1	 	Representations and warranties
	 
	 	 	The Chargor represents and warrants to the Collateral Agent that as of the date of
this document, with reference to the facts and circumstances then existing and subject to
the provisions of the Principal Finance Documents, the representations and warranties
made by the chargor as Loan Party in Sections 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
Chargor and this document.
	 
	6.2	 	Reliance
	 
	 	 	The Chargor acknowledges that the Collateral Agent and each Secured Party has
entered into the Loan Documents to which it is a party in reliance on the representations
and warranties in this clause 6.
	 
	7	 	Default powers
	 
	7.1	 	General

	 	(a)	 	The Collateral Agent may, at any time while an Enforcement Event has
occurred and is continuing, exercise any or all of the rights set out in this clause
7 in any manner and at any time that it thinks fit, even if a Receiver has been
appointed.
	 
	 	(b)	 	The Chargor agrees to ensure that no Enforcement Event occurs. The
Chargor is not liable in damages for breach of this clause 7.1(b) (including where
the breach is also a breach of another clause). However, if the Chargor breaches
this clause 7.1(b), the Collateral Agent may exercise its rights in relation to the
Secured Property under this document and at law. This does not limit the Chargor’s
other liabilities to the Collateral Agent or any of the Collateral Agent’s other
rights against the Chargor or the Secured Property.
	 
	 	(c)	 	The interpretation of any right set out in this clause 7 will not be
restricted by reference to or inference from any other right.

	7.2	 	Statutory and implied powers
	 
	 	 	The Collateral Agent may, at any time while an Enforcement Event has occurred and
is continuing, exercise all rights capable of being conferred by the statutes and other
laws of any relevant jurisdiction on mortgagees under mortgage deeds or otherwise.
	 
	7.3	 	Operation of Deposit Account
	 
	 	 	At any time while an Enforcement Event has occurred and is continuing the
Collateral Agent may:

	 	(a)	 	sue the Chargor for the Secured Liabilities;

page 10

 

	 	(b)	 	exercise all rights in connection with the Secured Property;
	 
	 	(c)	 	operate the Deposit Account by the sole signature of an Authorised
Officer of the Collateral Agent without any requirement for a signature by or for
the Chargor;
	 
	 	(d)	 	if the Deposit Account is not at call, negotiate with the Bank and do
all things necessary or desirable to obtain immediate repayment of the Secured
Property without being responsible for any resultant loss;
	 
	 	(e)	 	sell, factor or discount or agree to do any of them in respect of the
Secured Property on any terms and do anything necessary or desirable to complete any
sale, factoring or discounting which the Collateral Agent considers desirable; and
	 
	 	(f)	 	withdraw all or any of the money standing to the credit of the
Deposit Account and apply it towards payment of the Secured Liabilities in any
manner permitted by this document.

	7.4	 	General dealings
	 
	 	 	The Collateral Agent may, at any time while an Enforcement Event has occurred and
is continuing:

	 	(a)	 	exercise the rights of the Chargor and comply with its obligations in
respect of the Secured Property and allow any other person to comply with the
person’s obligations in respect of the Secured Property; and
	 
	 	(b)	 	vary, replace or release any right or interest of the Chargor in or
in relation to the Secured Property.

	7.5	 	Order of enforcement
	 
	 	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent may
enforce this charge before it enforces other rights or remedies:

	 	(a)	 	against any other person; or
	 
	 	(b)	 	under another document, such as another Encumbrance.

	 	 	If the Collateral Agent has more than one Encumbrance, it may enforce them in any order
it chooses
	 
	7.6	 	Investment of money
	 
	 	 	Any money received by the Collateral Agent which is not required to be immediately
applied in the exercise of any right or in accordance with the First Lien Intercreditor
Agreement may, at any time while an Enforcement Event has occurred and is continuing, be
invested in any way authorised by the laws of any relevant jurisdiction for the
investment of trust money and the Collateral Agent may vary or dispose of the investment.

page 11

 

	7.7	 	Ancillary powers
	 
	 	 	The Collateral Agent may, at any time while an Enforcement Event has occurred and
is continuing:

	 	(a)	 	execute any deed or other document as attorney for the Chargor for
the purpose of exercising any of the Collateral Agent’s rights under this document;
	 
	 	(b)	 	employ or engage any person on behalf of the Chargor for the purpose
of exercising any of the Collateral Agent’s rights in respect of the Secured
Property;
	 
	 	(c)	 	on behalf of the Chargor, commence, defend, prosecute, settle,
discontinue and compromise litigation, administrative or arbitral proceedings in
relation to the Secured Property;
	 
	 	(d)	 	enter into and execute and deliver documents and agreements in
respect of the exercise of its rights under this document;
	 
	 	(e)	 	delegate to any person any right (including this right of delegation)
under this document; and
	 
	 	(f)	 	do anything incidental or conducive to the exercise of any of its
other rights under this document.

	7.8	 	Appointment of Receivers
	 
	 	 	The Collateral Agent may, at any time while an Enforcement Event has occurred and
is continuing:

	 	(a) 	(i)	 	 either before or after it has taken possession of the Secured
Property, or whether or not an order has been made or a resolution passed to wind up
the Chargor, appoint any one or more persons to be a receiver or receiver and
manager of the Secured Property or a part of it; and
	 
	 	 	(ii)	 	appoint a different receiver or receiver and manager
for different parts of the Secured Property,

	 	 	 	in either case, on terms that the Collateral Agent thinks fit;
	 
	 	(b)	 	if more than one person is appointed as Receiver of any property,
empower them to act jointly or jointly and severally;
	 
	 	(c)	 	remove the Receiver, appoint another in his or her place if the
Receiver is removed, retires or dies, and reappoint a Receiver who has retired or
been removed; and
	 
	 	(d)	 	fix the remuneration of the Receiver.

page 12

 

	8	 	Receivers
	 
	8.1	 	Agent

	 	(a)	 	Subject to clause 8.1(b), a Receiver is the agent of the Chargor who alone
is responsible for the Receiver’s acts and omissions and remuneration.
	 
	 	(b)	 	The Collateral Agent may appoint a Receiver as the agent of the
Collateral Agent and delegate to a Receiver any of the Collateral Agent’s rights
under this document.

	8.2	 	Powers

	 	(a)	 	A Receiver has the right in relation to any property in respect of which
the Receiver is appointed, unless limited by the terms of the Receiver’s
appointment, to do everything that the Chargor may lawfully authorise an agent to do
on behalf of the Chargor in relation to that property and, without limitation, a
Receiver may in relation to that property exercise:

	 	(i)	 	the rights capable of being conferred on receivers and
receivers and managers by the Corporations Act and the laws of any relevant
jurisdiction;
	 
	 	(ii)	 	the rights set out in clauses 7.2 to 7.7 inclusive;
	 
	 	(iii)	 	the rights of the Chargor and the directors of the
Chargor; and
	 
	 	(iv)	 	any other rights the Collateral Agent may by notice to
a Receiver give to a Receiver.

	 	(b)	 	The Collateral Agent may by notice to a Receiver at the time of a
Receiver’s appointment or any subsequent times as the Collateral Agent thinks fit
give to, or remove from, a Receiver all or any of the rights referred to in clause
8.2(a).

	9	 	Exercise of default rights
	 
	9.1	 	No hindrance
	 
	 	 	The Chargor must not allow the Collateral Agent, a Receiver or an Attorney to be
prevented or hindered from exercising its rights under this document.
	 
	9.2	 	Collateral Agent in possession

	 	(a)	 	If the Collateral Agent, a Receiver or an Attorney exercises its rights
under this document or takes possession of the Secured Property, it will not be
liable to account as a mortgagee in possession.
	 
	 	(b)	 	If the Collateral Agent has taken possession of the Secured Property
it may give up possession of the Secured Property at any time.
	 
	 	(c)	 	The obligations of the Chargor under this document relating to the
Secured Property are not affected by the Collateral Agent, a Receiver or an Attorney
taking possession of the Secured Property.

page 13

 

	9.3	 	Exclusion of legislation

	 	(a)	 	The provisions implied in mortgages by any statute are for the purposes of
this document negatived or varied only so far as they are inconsistent with the
provisions of this document and are otherwise varied so as to become consistent with
this document.
	 
	 	(b)	 	Any statutory restrictions (other than mandatory restrictions) on any
right of the Collateral Agent, a Receiver or an Attorney to lease or otherwise deal
with the Secured Property do not apply to the rights of those persons under this
document.

	9.4	 	Default notice

	 	(a)	 	The Collateral Agent, a Receiver and an Attorney may, to the extent that
any applicable law permits, exercise any right under this document in relation to an
Enforcement Event without first giving notice to the Chargor or allowing the lapse
of any period of time and the Chargor and the Collateral Agent dispense with any
requirement under any statute that notice be given by the Collateral Agent, a
Receiver or an Attorney, as the case may be, or that it allow the lapse of any
period of time before exercising a right.
	 
	 	(b)	 	If an applicable law requires that a notice be given or a lapse of
time occur before any right can be exercised, then if no particular period of notice
or lapse of time is required or a period or lapse of time is required but can be
shortened by agreement, the period of notice or lapse of time is one day.

	9.5	 	Withdrawal or suspension
	 
	 	 	The Collateral Agent may at any time after the exercise of any of its powers,
rights or remedies suspend the further exercise of those powers, rights and remedies or
withdraw from possession without prejudice to any future exercise of those powers, rights
and remedies and without being responsible for any resulting loss or damage.
	 
	10	 	Application of proceeds
	 
	 	 	Except to the extent otherwise required by law, all amounts received by the
Collateral Agent or a Receiver under this document, shall be applied in accordance with
the provisions of the First Lien Intercreditor Agreement.
	 
	11	 	Third party dealings
	 
	11.1	 	Collateral Agent’s receipts and discharges
	 
	 	 	The Collateral Agent may give discharges and receipts for any money payable by any
third party in relation to the exercise of a right by the Collateral Agent, a Receiver or
an Attorney.

page 14

 

	11.2	 	No duty to enquire

	 	(a)	 	Any person dealing with the Collateral Agent, a Receiver or an Attorney in
relation to the exercise by any of them of a right under this document need not be
concerned to enquire whether:

	 	(i)	 	the right is exercisable or properly exercised;
	 
	 	(ii)	 	the Receiver or Attorney is properly appointed; or
	 
	 	(iii)	 	any money paid by it to the Collateral Agent, a
Receiver or an Attorney is properly applied,

	 	 	 	and the title of that person to any property acquired by it from the Collateral
Agent, Receiver or Attorney will not be adversely affected by the right not being
exercisable or any improper appointment, exercise of the right or application of
money by the Collateral Agent, a Receiver or an Attorney of which it does not have
actual notice.
	 
	 	(b)	 	The benefit of clause 11.2(a) is held on trust for the benefit of the
Collateral Agent, each Receiver, each Attorney and each person dealing with any of
them.

	12	 	Preservation of Collateral Agent’s rights
	 
	12.1	 	Continuing security
	 
	 	 	This document is a continuing security for the whole of the Secured Liabilities
and is not limited to any transaction or other thing.
	 
	12.2	 	Primary obligations
	 
	 	 	The Chargor’s obligation to pay the Secured Liabilities is a primary obligation
and the Collateral Agent is not obliged to proceed against or enforce any other right
against any person or property or demand payment from any other person before making a
demand for payment by the Chargor of the Secured Liabilities.
	 
	12.3	 	Preservation of Chargor’s obligations
	 
	 	 	The Chargor’s obligations and the Collateral Agent’s rights under this document
will not be affected by anything which but for this clause 12.3 might abrogate, prejudice
or limit them or the effectiveness of this document.
	 
	12.4	 	Suspension of Chargor’s rights
	 
	 	 	The Chargor:

	 	(a)	 	waives any right to be subrogated to, or otherwise have the benefit
of, this document until the Secured Liabilities have been satisfied in full and in
the reasonable opinion of the Collateral Agent any payment towards the satisfaction
of the Secured Liabilities is not void, voidable or otherwise unenforceable or
refundable; and
	 
	 	(b)	 	must not exercise a right of set-off or counterclaim which reduces or
extinguishes the obligation of the Chargor to pay the Secured Liabilities,

page 15

 

	 	 	 	and the Collateral Agent is not obliged to marshal in favour of the Chargor any Security
or any property that the Collateral Agent has an interest in or may be entitled to
receive.

	12.5	 	Insolvency of debtor
	 
	 	 	The Chargor must not, until the Secured Liabilities have been paid in full and the
Collateral Agent is of the opinion that no payment of that money is or is likely to
become void, voidable or otherwise unenforceable or refundable:

	 	(a)	 	directly or indirectly claim or receive the benefit of any
distribution, dividend or payment; or
	 
	 	(b)	 	prove or claim for any distribution, dividend or payment in
competition with the Collateral Agent,

	 	 	in the insolvency of any person whose obligations to the Collateral Agent the Chargor has
Guaranteed so as to diminish any distribution, dividend or payment which but for that
claim or proof the Collateral Agent would be entitled to receive.
	 
	12.6	 	Recovery of costs
	 
	 	 	Except to the extent provided in the Principal Finance Documents, on enforcement
(whether successful or not) of this document, each of the Collateral Agent and the
Receiver shall be entitled to deduct from the proceeds of the Secured Property its costs,
charges and expenses incurred in connection with such enforcement.
	 
	13	 	Payments and taxes
	 
	13.1	 	Taxes
	 
	 	 	Section 2.20(a), (b), (c) and (d) (“Taxes”) of the Credit Agreement applies to
this document, except that, for the purposes of this document only, the references in
Section 2.20(a), (b), (c) and (d) (“Taxes”) of the Credit Agreement to any “Borrower” or
any “Loan Party” shall be references to the Chargor.
	 
	13.2	 	Currency of payment

	 	(a)	 	The Secured Liabilities shall be paid in the currency in which it is
denominated at the relevant time, unless the Loan Documents provide otherwise.
	 
	 	(b)	 	If any Secured Liabilities are received from the Chargor in a
currency (First Currency) other than the currency (Second Currency) in which it is
payable (whether as a result of obtaining or enforcing an order or judgment, the
dissolution of any person or otherwise), the amount received shall only satisfy the
Chargor’s obligations to pay its Secured Liabilities to the extent of the amount in
the Second Currency which the relevant Secured Party is able, in accordance with its
usual practice, to purchase with the amount received in the First Currency on the
date of that receipt (or, if it is not possible to make that purchase on that date, on the
first date upon which it is possible to do so).

page 16

 

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

	 	(i)	 	loss sustained by it as a result of the amount
purchased by it in the Second Currency pursuant to this clause 13 being less
than the amount due; and
	 
	 	(ii)	 	all costs and expenses properly incurred by it in the
purchasing the Second Currency, in respect of any Secured Liabilities
received from the Chargor.

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

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

	 	(a)	 	carrying out any obligation imposed on the Chargor by this document
or any other agreement binding on the Chargor to which the Collateral Agent is a
party (including the execution and delivery of any deeds, charges, assignments or
other security and any transfers of the Secured Property);
	 
	 	(b)	 	enabling the Collateral Agent to exercise, or delegate the exercise
of, all or any of the rights, powers and remedies of the Collateral Agent provided
by or pursuant to this document or by law; and
	 
	 	(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
document or by law,

	 	 	provided always that the Collateral Agent may only be entitled to exercise the powers
conferred upon it by the Chargor under this clause 14 if:

	 	(d)	 	an Enforcement Event has occurred and is continuing; or
	 
	 	(e)	 	the Collateral Agent has received notice from the Applicable
Representative, the Loan Parties’ Agent and/or the Chargor that the Chargor has
failed to comply with a further assurance or perfection obligation within 10
business days of being notified of that failure (with a copy of that notice being
sent to the Loan Parties’ Agent),

	 	 	provided further that the Collateral Agent shall not be obliged to exercise the powers
conferred upon it by the Chargor under this clause 14 unless and until it shall have
been:

page 17

 

	 	(f)	 	instructed to do so by the Applicable Representative; and
	 
	 	(g)	 	indemnified and/or secured and/or prefunded to its satisfaction.

	14.2	 	General

	 	(a)	 	Any Attorney may appoint substitutes and otherwise delegate its powers
(including this power of delegation).
	 
	 	(b)	 	Any Attorney may exercise any right solely for the benefit of the
Collateral Agent, even if the exercise of the right constitutes a conflict of
interest or duty.
	 
	 	(c)	 	The Chargor by this document ratifies anything done or not done by
the Attorney or a delegate of the Attorney pursuant to the power of attorney.

	15	 	Indemnity
	 
	 	 	To the extent set out in section 4.11 of the First Lien Intercreditor Agreement,
the Chargor shall, notwithstanding any release or discharge of all or any part of the
security, indemnify the Collateral Agent, its agents, attorneys, any Delegate and any
Receiver against any action, proceeding, claims, losses, liabilities, expenses, demands,
taxes, and costs which it may sustain as a consequence of any breach by the Chargor of
the provisions of this document, the exercise or purported exercise of any of the rights
and powers conferred on them by this document or otherwise relating to the Secured
Property.
	 
	16	 	Disposal of the Secured Property is final
	 
	 	 	The Chargor agrees that if the Collateral Agent or a Receiver sells or otherwise
disposes of the Secured Property after the occurrence of an Enforcement Event which is
continuing:

	 	(a)	 	the Chargor will not challenge the acquirer’s right to acquire the
Secured Property (including on the grounds that the Collateral Agent or the Receiver
was not entitled to dispose of the Secured Property or that the Chargor did not
receive notice of the intended disposal) and the Chargor will not seek to reclaim
that property; and
	 
	 	(b)	 	the person who acquires the Secured Property need not check whether
the Collateral Agent or the Receiver has the right to dispose of the Secured
Property or whether the Collateral Agent or the Receiver exercises that right
properly.

	17	 	General
	 
	17.1	 	Deposit of documents
	 
	 	 	Subject to the Agreed Security Principles, the Chargor agrees to deposit with the
Collateral Agent all other documents the Collateral Agent requests (acting

page 18

 

	 	 	on the reasonable instructions of the Applicable Representative) relating to the Secured
Property.
	 
	17.2	 	Registration of charge
	 
	 	 	Subject to the Agreed Security Principles, the Collateral Agent may at the
Chargor’s expense apply for any registration, or give any notification, in connection
with a security interest created under this document.
	 
	17.3	 	Further assurance
	 
	 	 	Subject to the Agreed Security Principles, the Chargor shall deliver to the
Collateral Agent any transfer, assignment, Security, instrument, or other deed or
document, and shall do any other thing, which the Collateral Agent requires (acting on
the reasonable instructions of the Applicable Representative) to enable it to:

	 	(a)	 	ensure the Secured Property is subject to an effective security;
	 
	 	(b)	 	perfect the Chargor’s title to any of its Secured Property;
	 
	 	(c)	 	perfect the Security intended to be created by this deed, including,
without limitation, in accordance with the provisions of the PPS Act;
	 
	 	(d)	 	enable the Collateral Agent to apply for any registration, or give
any notifications, in connection with a Lien created under this document so that the
Lien has the priority required by the Collateral Agent;
	 
	 	(e)	 	more satisfactorily secure to the Collateral Agent the Secured
Liabilities, including the granting of fixed or specific Security;
	 
	 	(f)	 	if an Enforcement Event has occurred and is continuing, transfer to,
or vest in, the Collateral Agent (or any purchaser from the Collateral Agent or a
Receiver) any of the Secured Property;
	 
	 	(g)	 	if an Enforcement Event has occurred and is continuing, facilitate
the realisation of any of the Secured Property;
	 
	 	(h)	 	exercise all or any of the rights, powers and remedies conferred on
the Collateral Agent or a Receiver by this document or by law; and
	 
	 	(i)	 	secure to the Collateral Agent the full benefit of the provisions of
this document.

	 	 	Subject to the Agreed Security Principles, this clause 17.3 includes anything the
Collateral Agent requests the Chargor to do in connection with the introduction of the
PPS Act, acting on the reasonable instructions of the Applicable Representative.
	 
	17.4	 	Authority to fill in blanks
	 
	 	 	The Chargor agrees that the Collateral Agent may complete and fill in any blanks
in this document or a document connected with it (such as Corporations Act forms,
financing statements, financing change statements, amendment demands or transfers for the
Secured Property).

page 19

 

	17.5	 	Supply of information
	 
	 	 	If the Collateral Agent (acting on the reasonable instructions of the Applicable
Representative) asks, the Chargor agrees to supply the Collateral Agent with any relevant
information about or documents affecting this document.
	 
	17.6	 	Prompt performance
	 
	 	 	Subject to clause 17.18 (“Time of the essence”):

	 	(a)	 	if this document specifies when the Chargor agrees to perform an
obligation, the Chargor agrees to perform it by the time specified; and
	 
	 	(b)	 	the Chargor agrees to perform all other obligations promptly.

	17.7	 	Certificates
	 
	 	 	The Collateral Agent may give the Chargor a certificate about an amount payable or
other matter in connection with this document. The certificate is sufficient evidence of
the amount or matter, unless it is proved to be incorrect.
	 
	17.8	 	Supervening legislation
	 
	 	 	Any present or future legislation which operates:

	 	(a)	 	to lessen or vary in favour of the Chargor any of its obligations in
connection with this document; or
	 
	 	(b)	 	to postpone, stay, suspend or curtail any rights of the Collateral
Agent under this document,

		is excluded except to the extent that its exclusion is prohibited or rendered ineffective
by law.
	 
	17.9	Amendment
	 
	 	Unless this document expressly states otherwise, a provision of this document, or
right created under it, may only be varied or replaced by a deed executed by the parties.
	 
	17.10	 	Receipts
	 
	 	The receipt of a Receiver, the Collateral Agent or an Authorised Officer of the
Collateral Agent releases the person paying money to the Receiver or the Collateral Agent
in connection with this document from:

	 	(a)	 	liability to enquire whether the Secured Liabilities have become
payable; and
	 
	 	(b)	 	liability for the money paid or expressed to be received; and
	 
	 	(c)	 	being concerned to see to its application or being answerable or
accountable for its loss or misapplication.

	17.11	 	Waiver and exercise of rights

	 	(a)		A right in favour of the Collateral Agent under this document, a breach of
an obligation of the Chargor under this document or an Enforcement Event can only be
waived by an instrument properly executed by the

page 20

 

	 	 	 	Collateral Agent. No other act,
omission or delay of the Collateral Agent constitutes a waiver binding, or estoppel
against, the Collateral Agent.
	 
	 	(b)	 	A single or partial exercise or waiver, or delay by the Collateral
Agent of a right relating to this document does not prevent any other exercise of
that right or the exercise of any other right.
	 
	 	(c)	 	The Collateral Agent and its Representatives are not liable for any
loss, cost or expense of the Chargor caused or contributed to by the waiver,
exercise, attempted exercise, failure to exercise or delay in the exercise of a
right and the Collateral Agent holds the benefit of this clause 17.11 on trust for
itself and its Representatives.

	17.12	 	Conflict of interest
	 
	 	 	The Collateral Agent’s and any Receiver’s rights and remedies under this document
may be exercised even if this involves a conflict of duty or the Collateral Agent or the
Receiver has a personal interest in their exercise.
	 
	17.13	 	Rights cumulative
	 
	 	 	The rights of the Collateral Agent, a Receiver or an Attorney under this document
are cumulative and in addition to its other rights.
	 
	17.14	 	Other Encumbrances or judgments
	 
	 	 	This document does not merge with or adversely affect, and is not adversely
affected by, any of the following:

	 	(a)	 	any Encumbrance or other right or remedy to which the Collateral
Agent is entitled; or
	 
	 	(b)	 	a judgment which the Collateral Agent obtains against the Chargor in
connection with the Secured Liabilities.

	 	 	The Collateral Agent may still exercise its rights under this document as well as under
the judgment, other Encumbrance or the right or remedy.
	 
	17.15	 	Indemnities
	 
	 	 	The indemnities in this document are continuing obligations, independent of the
Chargor’s other obligations under this document, and continue after this document ends.
It is not necessary for the Collateral Agent to incur expense or make payment before
enforcing a right of indemnity under this document.
	 
	17.16	 	Approval and consent

	 	(a)	 	Subject to express wording to the contrary contained in this document, the
Collateral Agent or Receiver may:

	 	(i)	 	conditionally or unconditionally give or withhold any
approval or consent at their absolute discretion, and is not obliged to give
its reasons for doing so; and
	 
	 	(ii)	 	exercise a right or remedy in any way it considers
appropriate, unless this document expressly states otherwise.

page 21

 

	 	(b)	 	The Chargor agrees to comply with all conditions in any consent the
Collateral Agent (acting on the reasonable instructions of the Applicable
Representative) gives in connection with this document.

	17.17	 	Superannuation legislation
	 
	 	 	If the Superannuation Industry (Supervision) Act 1993 (Cth) prohibits the Chargor
from charging any of the Secured Property, this charge does not extend to that Secured
Property.
	 
	17.18	 	Time is of the essence
	 
	 	 	Time is of the essence in this document in respect of an obligation of the Chargor
to pay money.
	 
	17.19	 	Each signatory bound
	 
	 	 	This document binds each person who signs as Chargor even if another person who
was intended to sign does not sign it or is not bound by it.
	 
	17.20	 	Assignment

	 	(a)	 	Unless otherwise permitted under the Principal Finance Documents, the
Chargor may not assign or transfer any of its rights or obligations under this
document.
	 
	 	(b)	 	The Collateral Agent may assign and/or transfer all or part of its
rights or obligations under this document to any replacement collateral agent
appointed in accordance with the provisions of the Intercreditor Arrangements. This
charge shall be binding upon and shall inure to the benefit of each party and its
direct or subsequent legal successors, permitted transferees and assign.

	17.21	 	Code of Banking Practice
	 
	 	 	The parties agree that the Code of Banking Practice does not apply to this
document and the transactions in connection with it.
	 
	17.22	 	Counterparts
	 
	 	 	This document may consist of a number of counterparts and, if so, the counterparts
taken together constitute one document.
	 
	17.23	 	Governing law and jurisdiction

	 	(a)	 	The courts having jurisdiction in the State of Victoria, have exclusive
jurisdiction to settle any dispute arising out of or in connection with this
document (including a dispute regarding the existence, validity or termination of
this document) (Dispute).
	 
	 	(b)	 	The parties to this document agree that those courts are the most
appropriate and convenient courts to settle Disputes and accordingly no party will
argue to the contrary.
	 
	 	(c)	 	Each party to this document irrevocably waives any objection it may
now or in the future have to the venue of any proceedings, and any claim it

page 22

 

	 	 	 	may now
or in the future have that any proceedings have been brought in an inconvenient
forum, where that venue falls within paragraph (a).
	 
	 	(d)	 	This clause 17.23 is for the benefit of the Secured Parties, the
Collateral Agent and the Administrative Agent only. As a result, the Secured Party,
the Collateral Agent and the Administrative Agent shall not be prevented from taking
proceedings relating to a Dispute in any other courts with jurisdiction. To the
extent allowed by law, the Secured Parties, the Collateral Agent and the
Administrative Agent may take concurrent proceedings in any number of jurisdictions.

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

	 	(a)	 	irrevocably appoints the Company as its agent for service of process
in relation to any proceedings in connection with any Principal Finance Document;
and
	 
	 	(b)	 	agrees that failure by a process agent to notify the Chargor of the
process will not invalidate the proceedings concerned.

	 	 	Each party expressly agrees and consents to the provisions of this clause 17.24.
	 
	17.25	 	PPS Act
	 
	 	 	The Collateral Agent is not required to give any notice under the PPS Act to the
Chargor or any other person (including a notice of verification statement) unless it is
obliged to do so by the PPS Act and that obligation cannot be excluded.
	 
	17.26	 	Notices
	 
	 	 	Each notice or other communication to be given or made by a party under this
document shall be given or made in accordance with the First Lien Intercreditor
Agreement.
	 
	17.27	 	Partial invalidity
	 
	 	 	If at any time any provision of this document or any other document relating to
the Secured Liabilities is or becomes illegal, invalid or unenforceable in any respect
under the law of any relevant jurisdiction, that illegality, invalidity or
unenforceability shall not affect the enforceability of the provisions, or (as the case
may be) the remaining provisions, of this document, nor shall the legality, validity or
enforceability of any of those provisions under the law of any other jurisdiction be in
any way affected or impaired thereby.
	 
	17.28	 	Obligations independent
	 
	 	 	Each of the obligations of the Chargor under clause 12.6 and clause 15 shall
constitute a continuing obligation, separate and independent from the Chargor’s other
obligations under this document and shall survive discharge of the Secured Liabilities
and release of this document.

page 23

 

	17.29	 	Enforcement
	 
	 	 	It shall not be necessary for the Collateral Agent to incur any expense or
make any payment before enforcing any of its rights in respect of any obligation of the
Chargor referred to in clause 17.28.

Executed as a deed.

page 24

 

			
	Schedule	 	 

Notice of security over bank account

Date: ______________

			
	To:	 	Australia and New Zealand Banking Group Limited ABN 11 005 357 522

Attention: _________________

ANZ bank account number [____________] (BSB number 013-006)

We refer to the above bank account with you (Account) and notify you of the following:

	1	 	By a Charge over Deposit Account dated ______ 2011 between ourselves and Wilmington Trust
(London) Limited (Collateral Agent) (Charge), we have charged to the Collateral Agent all of
our right, title and interest in the Account (including our right to be paid interest on the
balance of the Account, whether or not that interest is, or is required to be, deposited in
the Account).
	 
	2	 	We have agreed with the Collateral Agent that it has the sole right to appoint and remove
authorised signatories to the Account. You must not allow any dealings with the Account
unless those dealings are authorised by the authorised signatories. Interest which is not
credited to the Account must only be paid in accordance with the instructions of the then
current authorised signatories.
	 
	3	 	You agree that you have no security interest in the Account, and do not have, and must
not purport to exercise, any rights of set-off, combination of accounts or any other claim on
or against the Account. You may, however, debit against the Account customary bank charges
which we are obliged to pay in respect of the Account in an amount not exceeding A$____ per
month. Under no circumstances is the Collateral Agent liable to pay fees or charges in
respect of the Account.
	 
	4	 	We cannot revoke or vary this notice in whole or in part without the written consent of
the Collateral Agent.

	 	 	 	 	 	 	 

	Executed on behalf of

	)	 	 	 	 	 
	Whakatane Mill Limited by its authorised

	)	 	 	 	 	 
	signatory in the presence of:

	)	 	 	 	 	 
	 

	)	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Signature of witness

	 	 	 	 	 	Signature of authorised signatory
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name of Witness

	 	 	 	 	 	Name of authorised signatory
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Occupation

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

City/town of residence

	 	 	 	 	 	 

page 25

 

Notice of security over bank account

			
	To:	 	Whakatane Mill Limited

c/- Bell Gully, Level 22, Vero Centre

48 Shortland Street, Auckland

NEW ZEALAND

			
	And:	 	Wilmington Trust (London) Limited

1 King’s Arms Yard

London EC2R 7AF

UNITED KINGDOM

We acknowledge:

	 	(a)	 	receipt of this notice and agree to be bound by its terms;
	 
	 	(b)	 	we have not received notice of any right, title or interest in
connection with the Account, other than that of Whakatane Mill Limited and the
Collateral Agent as contemplated by this notice; and
	 
	 	(c)	 	the Charge ranks in priority to any right of set-off or right to
combine or consolidate.

	 	 	 	 	 
	 	 	 
	 	Signature 	 
	 	 	 	 
	 	 	 
	 	Print name 	 
	 	 	 	 

who is an

authorised representative of

Australia and New Zealand Banking Group Limited

page 26

 

SIGNED AND DELIVERED AS A DEED

Chargor:

	 	 	 	 	 	 	 

	Executed on behalf of

	)	 	 	 	 	 
	Whakatane Mill Limited by its authorised

	)	 	 	 	 	 
	signatory in the presence of:

	)	 	 	 	 	 
	 

	)	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Fiona Singh

	 	 	 	 	 	/s/ Chiara Brophy
	 

	 	 	 	 	 	 
	Signature of witness

	 	 	 	 	 	Signature of authorised signatory
	 
	 	 	 	 	 	 
	Fiona Singh

	 	 	 	 	 	Chiara Brophy
	 

	 	 	 	 	 	 
	Name of Witness

	 	 	 	 	 	Name of authorised signatory
	 
	 	 	 	 	 	 
	Lawyer
 

	 	 	 	 	 	 
	Occupation
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Sydney, Australia
 

City/town of residence

	 	 	 	 	 	 

Collateral Agent:

	 	 	 	 	 	 	 

	Wilmington Trust (London) Limited by

	)	 	 	 	 	 
	 its authorised signatory in the presence of:

	)	 	 	 	 	 
	

	)	 	 	 	 	 
	 

	)	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Sunil Masson

	 	 	 	 	 	/s/ Paul Barton
	 

	 	 	 	 	 	 
	Signature of witness

	 	 	 	 	 	Signature of authorised signatory
	 
	 	 	 	 	 	 
	Sunil Masson

	 	 	 	 	 	Paul Barton

Relationship Manager
	 

	 	 	 	 	 	 
	Name of Witness

	 	 	 	 	 	Name of authorised signatory
	 
	 	 	 	 	 	 
	Director
 

	 	 	 	 	 	 
	Occupation
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Third Floor

1 King’s Arm Yard

London EC2R 7AF
 

	 	 	 	 	 	 
	City/town of residence
	 	 	 	 	 	 

page 27exv4w514

Exhibit 4.514

Dated 8 September 2011

 Amendment agreement

  in respect of

 Security Interest Agreement
over Securities 
 Relating to SIG Asset Holdings Limited

(1) SIG COMBIBLOC GROUP AG

(2) WILMINGTON TRUST (LONDON) LIMITED

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.

 

CONTENTS

	 	 	 	 	 
	Clauses	 	Page	 
	1. Definitions and Interpretation
	 	 	3	 
	2. Amendment of SIA
	 	 	3	 
	3. Representations and Warranties
	 	 	5	 
	4. General
	 	 	6	 
	SCHEDULE
	 	 	7	 

2

 

THIS
AGREEMENT is dated 8th day of September 2011

BETWEEN

	(1)	 	SIG COMBIBLOC GROUP AG, a company organised under the laws of Switzerland,
registered with the commercial register (Handelsregister) of the Canton of Schaffhausen under
company number CH-290.3.004.149-2, with its registered seat in Neuhausen am Rheinfall,
Switzerland and its business address as at the date of this Agreement at Laufengasse 18, CH-8212
Neuhausen am Rheinfall, Switzerland (the “Grantor”); and
	 
	(2)	 	WILMINGTON TRUST (LONDON) LIMITED, a private limited company whose registered number
is 05650152 and whose registered office address as at the date of this Agreement is at Third
Floor, 1 King’s Arms Yard, London EC2R 7AF in its capacity as collateral agent as appointed under
the First Lien Intercreditor Agreement (as defined below) for the Secured Parties (as defined
below), with its successors, permitted transferees and assigns in such capacity (“Collateral
Agent”).

BACKGROUND

	A  	 	On 29 January 2010, the Grantor entered into a security interest agreement (the “SIA”) in
respect of securities held by it in SIG Asset Holdings Limited (the “Company”) in favour of the
Collateral Agent.
	 
	B 	 	 This Agreement is supplemental to and amends the SIA.
	 
	C 	 	 The parties have agreed to amend the SIA on the basis set out in this Agreement and agree that
notwithstanding any amendments made by this Agreement, the security granted under the SIA remains
in full force and effect as from 29 January 2010.

OPERATIVE PROVISIONS

IT IS HEREBY AGREED as follows:

	1.	 	Definitions and Interpretation
	 
	1.1	 	Words and expressions used in this Agreement shall unless otherwise defined bear the meanings
assigned to them in the SIA as amended by this Agreement.
	 
	1.2	 	Unless the context otherwise requires, references in the SIA to “this Agreement” shall be to
the SIA as amended by this Agreement and otherwise from time to time.
	 
	1.3	 	Subject to the provisions of this Agreement, the SIA shall remain in full force and effect
and shall be read and construed as one document with this Agreement.
	 
	1.4	 	References to “this Agreement”, a “Clause” or a “Schedule” are references to this Agreement
or a clause in or schedule to it.
	 
	2.	 	Amendment of SIA
	 
	2.1	 	With effect from the date of this Agreement, the SIA shall be deemed to be amended as
follows:

	 	2.1.1	 	in Clause 1.1 (Definitions), the definitions “Obligations” and “Senior Secured Note
Indenture” shall be deleted in their entirety and replaced with the following:

3

 

	 	 	 

	     Obligations

	 	means all present and future obligations and liabilities
(whether actual or contingent and whether owed jointly or
severally or in any other capacity whatsoever) of each Loan
Party and each grantor of a security interest to the Secured
Parties (or any of them) under each or any of the Loan
Documents including in particular, but not limited to, the
Parallel Obligations 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 documents
evidencing or securing any such liabilities provided always that
the Grantor shall
	 
	 	 
	 

	 	(A) only be liable under this Agreement or any other Loan
Document (including, for the avoidance of doubt, any
restructuring of the Grantor’s rights of set-off and/or
subrogation and its duties to subordinate claims) in relation to
obligations (other than obligations under the Loan Documents
of (y) the Grantor (i) incurred as Borrower under the Credit
Agreement, (ii) incurred as borrower under any agreement
pursuant to which a Local Facility (as defined in the Credit
Agreement) is made available, (iii) incurred as a party to and
beneficiary under any Hedging Agreement (as defined in the
Credit Agreement), (iv) owed as Cash Management
Obligations, provided the Grantor is a beneficiary of the Cash
Management Services causing such Cash Management
Obligations (all as defined in the Credit Agreement), (v)
incurred as a party to and beneficiary under any Additional
Agreement or (vi) to the extent certain proceeds of the Senior
Secured Note Indenture have been made available to the
Grantor, up to such proceeds and (z) a direct or indirect
subsidiary of the Grantor (the “Grantor’s Subsidiary”) (i)
incurred as Borrower under the Credit Agreement, (ii) incurred
as borrower under any agreement pursuant to which a Local
Facility (as defined in the Credit Agreement) is made
available, (iii) incurred as a party to and beneficiary under any
Hedging Agreement (as defined in the Credit Agreement), (iv)
owed as Cash Management Obligations, provided the
Grantor’s Subsidiary is a beneficiary of the Cash Management
Services causing such Cash Management Obligations (all as
defined in the Credit Agreement), (v) incurred as a party to
and beneficiary under any Additional Agreement or (vi) to the
extent certain proceeds of the Senior Secured Note Indenture
have been made available to the Grantor’s Subsidiary, up to
such proceeds) to the extent such obligations do not constitute
a repayment of capital (Einlagerueckgewaehr), a violation of
the legally protected reserves (gesetzlich geschuetzte
Reserven) or a payment of a (constructive) dividend prohibited
by the Swiss Federal Code of Obligations by the Grantor and
in the maximum amount of its profits available for the
distribution of dividends at the point in time the Grantor’s
obligations fall due (being the balance sheet profits and any
free reserves made for this purpose, in each case in
accordance with the relevant Swiss law);
	 
	 	 
	 

	 	(B) pass for such payments shareholder’s resolutions for the
distribution of dividends in accordance with the relevant
provisions of the Swiss Federal Code of Obligations being in

4

 

	 	 	 

	 

	 	force at that time (currently the profits available for the
distribution of dividends as described above must be
determined based on an audited balance sheet and such
shareholders’ resolution must be based on a report from the
Grantor’s auditors approving the proposed distribution of
dividends); and
	 
	 	 
	 

	 	(C) deduct from such payments Swiss Anticipatory Tax
(withholding tax) at the rate of 35% (or such other rate as in
force from time to time) and subject to any applicable double
taxation treaty and/or agreements entered into with the Swiss
Federal Tax administration:
	 
	 	 
	 

	 	(i) pay such deduction to the Swiss Federal Tax
Administration; and

	 
	 	 
	 

	 	(ii) give evidence to the respective Secured Party
beneficiary or Secured Parties beneficiaries (as the
case may be) of such deduction in accordance with
Section 2.20 (Taxes) of the Credit Agreement and
Section 4.15 (Withholding Taxes) of the Senior
Secured Note Indenture;

	 
	 	 
	 

	 	(iii) but if such a deduction is made, not be obliged to
gross-up pursuant to Section 2.20 (Taxes) of the Credit
Agreement and Section 4.15 (Withholding Taxes) of
the Senior Secured Note Indenture to the extent that
such gross-up would result in the aggregate amounts
paid to the Secured Parties beneficiaries and the
Swiss Federal Tax administration exceeding the
maximum amount of its profits available for the
distribution of dividends

	 
	 	 
	     Senior Secured 

     Note Indenture

	 	has the meaning given to that term in the Credit Agreement

	3.	 	Representations and Warranties
	 
	 	 	The Grantor represents and warrants to the Collateral Agent that:

	3.1	 	this Agreement constitutes legal, valid, binding and (subject to remedies provided by law)
enforceable obligations of the Grantor;
	 
	3.2	 	this Agreement is within its powers and has been duly authorised by appropriate corporate
action of the Grantor;
	 
	3.3	 	this Agreement does not conflict with any law or regulation or judgment, the memorandum or
articles of incorporation of the Grantor, or any agreement or document to which it is a party or
which is binding upon it or any of its assets;
	 
	3.4	 	this Agreement does not require any authorisation, approval, consent, licence or registration
in any jurisdiction for its execution, performance, validity or enforceability;
	 
	3.5	 	as at the date of this Agreement, all of the representations and warranties contained in
clause 11 of the SIA (Credit Agreement Warranties) are true and accurate as if repeated on the
date of this Agreement with reference to the facts and circumstances subsisting on such

5

 

	 	 	date; and

	3.6	 	as at the date of this Agreement, no Enforcement Event or event which, with
the giving of notice, lapse of time or other condition may constitute an Enforcement
Event has occurred or is continuing or would result from the execution of this
Agreement or the performance of the SIA as amended hereby.
	 
	4.	 	General
	 
	4.1	 	This Agreement shall be governed by and construed in accordance with the laws of
Guernsey.
	 
	4.2	 	This Agreement may be executed in two counterparts and execution by each
of the parties of any one of such counterparts will constitute the execution of this
Agreement.
	 
	4.3	 	For the benefit of the Collateral Agent the Grantor irrevocably submits to the
jurisdiction of the Guernsey courts and the Grantor irrevocably agrees that a judgment
in any proceedings in connection with this Agreement by the Guernsey courts shall be
conclusive and binding upon the Grantor and may be enforced against the Grantor in the
courts of any other jurisdiction. The Collateral Agent shall also be entitled to take proceedings in connection
with this Agreement against the Grantor in the courts of any country in which the
Grantor has assets or in any other courts of competent jurisdiction.
	 
	4.4	 	The Grantor waives:-

	 	4.4.1	 	any objection which the Grantor may now or in the future have to the Guernsey
courts or other courts referred to in Clause 4.2 as a venue for any proceedings in
connection with the SIA; and
	 
	 	4.4.2	 	any claim, which it may now or in the future be able to make that any
proceedings in the Guernsey Courts or other Courts, referred to in Clause 4.3 have
been instituted in an inappropriate forum.

	4.5	 	As envisaged in Clause 2.3 of the SIA, until the payment, performance or discharge
of the Obligations, the obligations of the Grantor under the SIA and the security
created pursuant to the SIA shall not be discharged, impaired or otherwise affected by
the execution of this Agreement.
	 
	4.6	 	For the avoidance of doubt, an amended conformed copy of the
SIA, reflecting the
amendments set forth in this Agreement, is enclosed in the Schedule.

IN WITNESS
whereof this Agreement has been duly executed

/s/ Pru Wyllie

SIGNED

for and on behalf of

SIG COMBIBLOC GROUP AG

	 	 	 

	/s/ Paul Barton	 	Paul Barton
Relationship Manager

SIGNED

for and on behalf of

WILMINGTON TRUST (LONDON ) LIMITED

6

 

 SCHEDULE 

CONSOLIDATED COPY OF AMENDED SIA

7

 

Dated 29 January 2010

Security Interest Agreement

Over Securities

Relating To

Sig Asset Holdings Limited

(1) SIG Combibloc Group Ag

(2) Wilmington Trust (London) Limited As Collateral Agent

as amended by a security amendment agreement dated [ ] 2011

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.

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	1 Definitions and Interpretation
	 	 	3	 
	2 Security
	 	 	10	 
	3 Undertakings
	 	 	12	 
	4 Covenants
	 	 	12	 
	5 Enforcement Event
	 	 	12	 
	6 Continuing Security
	 	 	13	 
	7 Exchange Rate
	 	 	13	 
	8 Power of Attorney
	 	 	14	 
	9 Appropriation
	 	 	14	 
	10 Preservation of other Security and Rights and Further Assurance
	 	 	15	 
	11 Credit Agreement Warranties
	 	 	15	 
	12 Creation of a Suspense Account
	 	 	15	 
	13 Assignment
	 	 	15	 
	14 Notices
	 	 	16	 
	15 Costs and Expenses
	 	 	16	 
	16 Delegation
	 	 	16	 
	17 Indemnity
	 	 	16	 
	18 No liability
	 	 	16	 
	19 Droit de Discussion and Droit de Division
	 	 	16	 
	20 General
	 	 	16	 
	21 Governing Law and Jurisdiction
	 	 	17	 
	SCHEDULE 1
	 	 	19	 
	SCHEDULE 2
	 	 	20	 

 

 

THIS AGREEMENT is dated 29th day of January 2010

BETWEEN:

	(1)	 	SIG COMBIBLOC GROUP AG, a company organised under the laws of Switzerland, registered
with the commercial register (Handelsregister) of the Canton of Schaffhausen under company number
CH-290.3.004.149-2, with its registered seat in Neuhausen am Rheinfall, Switzerland and its
business address as at the date of this Agreement at Laufengasse 18, CH-8212 Neuhausen am
Rheinfall, Switzerland (the “Grantor”); and
	 
	(2)	 	WILMINGTON TRUST (LONDON) LIMITED, a private limited company whose registered number is
05650152 and whose registered office address as at the date of this Agreement is at Fifth Floor,
6 Broad Street, London EC2M 1JH in its capacity as collateral agent as appointed under the First
Lien Intercreditor Agreement (as defined below) for the Secured Parties (as defined below), with
its successors, permitted transferees and assigns in such capacity (“Collateral Agent”).

RECITALS:

	(A)	 	The Credit Agreement (as defined below) has been entered into under which the Facility
(as defined below) may be provided to Reynolds Group Holdings Inc., Reynolds Consumer Products
Holdings Inc., SIG Euro Holding AG & Co. KGaA, SIG Austria Holding GmbH, Closure Systems
International Holdings Inc. and Closure Systems International B.V. and certain other parties. The
Company (as defined below) and the Grantor are guarantors under the Credit Agreement.
	 
	(B)	 	The Senior Secured Note Indenture (as defined below) has been entered into in
respect of which the Company and the Grantor are guarantors.
	 
	(C)	 	It is a condition subsequent of entry into the Loan Documents (as defined below)
(which include the Credit Agreement and the Senior Secured Note Indenture) that the Grantor
enters into this Agreement in order to secure the discharge of the Obligations (as defined
below).
	 
	(D)	 	The Grantor agrees to grant in favour of the Collateral Agent a security interest in the
Collateral (as defined below) so that this Agreement shall constitute a security interest
agreement in accordance with the Law (as defined below) and the Loan Documents (as defined
below).

OPERATIVE PROVISIONS

	1	 	Definitions and Interpretation
	 
	1.1	 	 Definitions
	 
	 	 	In this Agreement, unless the context otherwise requires, the following words and
expressions shall have the meanings set out below:

	 	 	 	 

	 	Acknowledgement

	 	means the acknowledgement to be given to
the Collateral Agent by the Company
substantially in the form set out in Part 2 of
Schedule 2
	 	 
	 	 
	 	Additional Agreement

	 	has the meaning given to that term in the
First Lien Intercreditor Agreement

 

 

	 	 	 	 

	 	Additional Collateral
Agent’s Fee Letter

	 	means the fee letter dated 20 January 2010
among the Collateral Agent and Reynolds
Group Holdings Limited as amended,
novated, supplemented, restated or modified
from time to time
	 	 
	 	 
	 	Agreed Security Principles

	 	has the meaning it is given in the Credit
Agreement and the Senior Secured Note
Indenture and to the extent of any
inconsistency the meaning it is given in the
Credit Agreement shall prevail
	 	 
	 	 
	 	Amendment No.1 and
Joinder Agreement

	 	means the joinder agreement dated 21
January 2010 made among (amongst
others) the Collateral Agent, The Bank of
New York Mellon, Credit Suisse AG and
Reynolds Group Holdings Limited pursuant
to which the Collateral Agent is appointed an
additional collateral agent and becomes
party to the First Lien Intercreditor
Agreement
	 	 
	 	 
	 	Applicable Representative

	 	has the meaning given to that term in the
First Lien Intercreditor Agreement
	 	 
	 	 
	 	Borrowers

	 	means the “Borrowers” under or as defined
in the Credit Agreement from time to time
	 	 
	 	 
	 	Business Day

	 	means any day (other than a Saturday,
Sunday or bank holiday) on which banks are
open in New York, London and Guernsey for
normal banking business
	 	 
	 	 
	 	Collateral

	 	means:
	 	 
	 	 
	 	 

	 	(1) the Securities;

	 	 
	 	 
	 	 

	 	(2) to the fullest extent permitted by law, all
Derivative Assets; and

	 	 
	 	 
	 	 

	 	(3) all of the Grantor’s right, title and
interest to and in the Securities and the
Derivative Assets

	 	 
	 	 
	 	 

	 	and in each case whether or not the
certificates of title relating to the Securities
were or the title to the Securities was vested
in the Collateral Agent or its nominees
before or after the date of this Agreement
and whether or not such certificates were or
such title was vested originally for the
purposes of creating security, safe custody,
collection or otherwise (and shall include,
unless the context otherwise requires all or
any part of the assets referred to in (1) to (3)
above)

 

 

	 	 	 	 

	 	Companies Law

	 	means The Companies (Guernsey) Law,

2008 (as amended)
	 	 
	 	 
	 	Company

	 	means SIG Asset Holdings Limited a non-cellular company limited by shares
incorporated in Guernsey whose registered
number is 28883 and whose registered
office as at the date of this Agreement is at
Heritage Hall, Le Marchant Street, St Peter
Port, Guernsey
	 	 
	 	 
	 	Credit Agreement

	 	means the credit agreement dated 5
November 2009, among Reynolds Group
Holdings Inc., Reynolds Consumer Products
Holdings Inc., Closure Systems International
Holdings Inc., Closure Systems International
B.V., SIG Euro Holding AG & Co. KGaA 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
	 	 
	 	 
	 	Derivative Assets

	 	means all securities, rights, dividends,
interest, monies, distributions and other
property (whether of a capital or income
nature) accruing, offered, issued or deriving
at any time by way of dividend, bonus,
redemption, exchange, purchase, sale,
substitution, conversion, consolidation, sub-division, preference, option or otherwise
attributable to any of the securities which
from time to time comprise the Securities
and includes any Securities which may be
renumbered or redesignated
	 	 
	 	 
	 	Encumbrance

	 	means any “Lien” under and as defined in
the First Lien Intercreditor Agreement, other
than the security interest created pursuant to
this Agreement
	 	 
	 	 
	 	Enforcement Event

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

	 	means the time, credit or banking facilities
provided to the Borrowers from time to time
under the Credit Agreement
	 	 
	 	 
	 	First Lien Intercreditor
Agreement

	 	means the First Lien Intercreditor
Agreement dated 5 November 2009 among
(amongst others) The Bank of New York
Mellon as collateral agent and 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 Joinder
Agreement which added the Collateral
Agent as a collateral agent under the First
Lien Intercreditor 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 “Issuers” under, and as defined
in, the Senior Secured Note Indenture,
including their successors in interest
	 	 
	 	 
	 	Law

	 	means the Security Interests (Guernsey)
Law, 1993
	 	 
	 	 
	 	Lien

	 	has the meaning given to that term in the
First Lien Intercreditor Agreement
	 	 
	 	 
	 	Loan Documents

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

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

	 	means Reynolds Group Holdings
Limited
(formerly known as Rank Group Holdings
Limited)
	 	 
	 	 
	 	Notice

	 	means the notice to be given to the
Company substantially in the form set out in
Part 1 of Schedule 2
	 	 
	 	 
	 	Obligations

	 	means all present and future obligations and
liabilities (whether actual or contingent and
whether owed jointly or severally or in any
other capacity whatsoever) of each Loan
Party and each grantor of a security interest
to the Secured Parties (or any of them)
under each or any of the Loan Documents
including in particular, but not limited to, the
Parallel Obligations 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 documents

 

 

	 	 	 	 

	 	 

	 	evidencing or securing any such liabilities provided always that the Grantor shall
	 	 
	 	 
	 	 

	 	(A) only be liable under this Agreement or
any other Loan Document (including, for the
avoidance of doubt, any restructuring of the
Grantor’s rights of set-off and/or subrogation
and its duties to subordinate claims) in
relation to obligations (other than obligations
under the Loan Documents of (y) the
Grantor (i) incurred as Borrower under the
Credit Agreement, (ii) incurred as borrower
under any agreement pursuant to which a
Local Facility (as defined in the Credit
Agreement) is made available, (iii) incurred
as a party to and beneficiary under any
Hedging Agreement (as defined in the
Credit Agreement), (iv) owed as Cash
Management Obligations, provided the
Grantor is a beneficiary of the Cash
Management Services causing such Cash
Management Obligations (all as defined in
the Credit Agreement), (v) incurred as a
party to and beneficiary under any Additional
Agreement or (vi) to the extent certain
proceeds of the Senior Secured Note
Indenture have been made available to the
Grantor, up to such proceeds and (z) a
direct or indirect subsidiary of the Grantor
(the “Grantor’s Subsidiary”) (i) incurred as
Borrower under the Credit Agreement, (ii)
incurred as borrower under any agreement
pursuant to which a Local Facility (as
defined in the Credit Agreement) is made
available, (iii) incurred as a party to and
beneficiary under any Hedging Agreement
(as defined in the Credit Agreement), (iv)
owed as Cash Management Obligations,
provided the Grantor’s Subsidiary is a
beneficiary of the Cash Management
Services causing such Cash Management
Obligations (all as defined in the Credit
Agreement), (v) incurred as a party to and
beneficiary under any Additional Agreement
or (vi) to the extent certain proceeds of the
Senior Secured Note Indenture have been
made available to the Grantor’s Subsidiary,
up to such proceeds) to the extent such
obligations do not constitute a repayment of
capital (Einlagerueckgewaehr), a violation of
the legally protected reserves (gesetzlich
geschuetzte Reserven) or a payment of a
(constructive) dividend prohibited by the
Swiss Federal Code of Obligations by the
Grantor and in the maximum amount of its
profits available for the distribution of
dividends at the point in time the Grantor’s

 

 

	 	 	 	 

	 	 

	 	obligations fall due (being the balance sheet
profits and any free reserves made for this
purpose, in each case in accordance with
the relevant Swiss law);
	 	 
	 	 
	 	 

	 	(B) pass for such payments shareholder’s
resolutions for the distribution of dividends in
accordance with the relevant provisions of
the Swiss Federal Code of Obligations being
in force at that time (currently the profits
available for the distribution of dividends as
described above must be determined based
on an audited balance sheet and such
shareholders’ resolution must be based on a
report from the Grantor’s auditors approving
the proposed distribution of dividends); and
	 	 
	 	 
	 	 

	 	(C) deduct from such payments Swiss
Anticipatory Tax (withholding tax) at the rate
of 35% (or such other rate as in force from
time to time) and subject to any applicable
double taxation treaty and/or agreements
entered into with the Swiss Federal Tax
administration:
	 	 
	 	 
	 	 

	 	(i) pay such deduction to the Swiss
Federal Tax Administration; and

	 	 
	 	 
	 	 

	 	(ii) give evidence to the respective
Secured Party beneficiary or Secured
Parties beneficiaries (as the case
may be) of such deduction in
accordance with Section 2.20 (Taxes)
of the Credit Agreement and Section
4.15 (Withholding Taxes) of the Senior
Secured Note Indenture;

	 	 
	 	 
	 	 

	 	(iii) but if such a deduction is made,
not be obliged to gross-up
pursuant to Section 2.20 (Taxes) of
the Credit Agreement and Section
4.15 (Withholding Taxes) of the Senior
Secured Note Indenture to the extent
that such gross-up would result in
the aggregate amounts paid to the
Secured Parties beneficiaries and the
Swiss Federal Tax administration
exceeding the maximum amount of
its profits available for the
distribution of dividends

	 	 
	 	 
	 	Parallel Obligations

	 	means the independent obligations of any of
the Loan Parties arising pursuant to the First
Lien Intercreditor Agreement to pay to the
Collateral Agent sums equal to the sums
owed by such Loan Party to the other
Secured Parties (or any of them) under the

 

 

	 	 	 	 

	 	 

	 	Loan Documents
	 	 
	 	 
	 	Principal Finance 

Documents

	 	means the Credit Agreement, the Senior
Secured Note Indenture, the Intercreditor
Arrangements and any Additional
Agreement
	 	 
	 	 
	 	Required Currency

	 	means the currency or currencies in which
the Obligations are expressed from time to
time
	 	 
	 	 
	 	Secured Parties

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

	 	means the securities described in Schedule
1 and any and all further shares in the
capital of the Company of which the Grantor
may become the legal and/or beneficial
owner from time to time
	 	 
	 	 
	 	Security Documents

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

	 	means the period commencing on the date
of this Agreement and terminating on the
date upon which the security constituted by
this Agreement is released in accordance
with Clause 6 of this Agreement
	 	 
	 	 
	 	Senior Secured Note
Indenture

	 	has the meaning given to that term in the
Credit Agreement

	1.2	 	Interpretation

	 	1.2.1	 	Headings in this Agreement are inserted for convenience only and shall be ignored in
construing this Agreement.
	 
	 	1.2.2	 	Unless the context otherwise requires, words (including definitions) denoting the
singular number only shall include the plural and vice versa.
	 
	 	1.2.3	 	References to “this Agreement”, a “Clause” or a “Schedule” are references to this
agreement or a clause in or schedule of it.
	 
	 	1.2.4	 	References to laws, ordinances, statutes and/or statutory provisions shall be
construed as referring to such laws, ordinances, statutes or statutory provisions as
respectively replaced amended extended or consolidated.
	 
	 	1.2.5	 	References to any document shall be construed as a reference to such document as the
same may be amended, extended, restructured, renewed, novated, supplemented, restated,
refunded, replaced or modified from time to time.
	 
	 	1.2.6	 	References to the “Collateral Agent” or the “Grantor” shall include a reference to
any successor, permitted transferee and permitted assign.
	 
	 	1.2.7	 	References to a “party” shall mean a party to this Agreement.

 

 

	 	1.2.8	 	The expression “person” shall be construed to include references to any person,
firm, company, partnership, corporation or any agency of any of them.
	 
	 	1.2.9	 	The Grantor shall be the “debtor”, the Collateral Agent shall be the “secured party”
and an Enforcement Event which is continuing shall be the “events of default” for the
purposes of the Law.
	 
	 	1.2.10	 	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.

	1.3	 	The Grantor acknowledges and agrees that the Collateral Agent’s actions under this Agreement
are on the basis of authority conferred under the Principal Finance Documents to which the
Collateral Agent is a party, and on directions of the Applicable Representative. In so acting,
the Collateral Agent shall have, subject to the terms of the Principal Finance Documents, the
protections, immunities, rights, indemnities and benefits conferred on the collateral agent under
the Principal Finance Documents.
	 
	1.4	 	For the avoidance of doubt, it is acknowledged that the Collateral Agent is permitted to act
on the instructions of the Applicable Representative in accordance with Clause 2.02(a)(i) of the
First Lien Intercreditor Agreement. It is further acknowledged that the Collateral Agent may
assume that any and all instructions received by it from the Applicable Representative under this
Agreement are reasonable, and that any question as to the reasonableness or otherwise of such
instructions shall be determined as between the Applicable Representative and the Grantor.
	 
	2	 	Security
	 
	2.1	 	In consideration of the borrowings under the Loan Documents and for the purpose
of securing the discharge of the Obligations, the Grantor as legal owner of all the Securities as
identified in Schedule 1 hereby:

	 	2.1.1	 	acknowledges and confirms delivery to the Collateral Agent of the certificates or
documents of title to the Securities; and
	 
	 	2.1.2	 	assigns to and charges in favour of the Collateral Agent all its rights, title and
interest in and the benefit of the Collateral in order to create a security interest in or
over it in accordance with the Law.

	2.2	 	The Grantor agrees that the security created over all rights, title and interest in and the
benefit of the Collateral pursuant to this Agreement constitutes continuing security for the
payment, performance and discharge of the Obligations and that, subject to the Legal Reservations
(as defined in the Credit Agreement), the Collateral Agent shall have a first priority security
interest over the Collateral in accordance with the Law.
	 
	2.3	 	Until the payment, performance and discharge of the Obligatons, the obligations of the
Grantor under this Agreement and the security created pursuant to this Agreement shall not be
discharged, impaired or otherwise affected by:

	 	2.3.1	 	any time, waiver or consent granted to, or composition with, any Loan Party or other
person;
	 
	 	2.3.1	 	the release of any Loan Party or any other person under the terms of any composition
or arrangement with any creditor of any member of the Group;

 

 

	 	2.3.2	 	the taking, variation, compromise, exchange, renewal or release of, or refusal or
neglect to perfect, take up or enforce, any rights against, or security over assets of,
any Loan Party or other person or any non-presentation or non-observance of any formality
or other requirement in respect of any instrument or any failure to realise the full value
of any security;
	 
	 	2.3.3	 	any incapacity or lack of power, authority or legal personality of or dissolution or
change in the members or status of any Loan Party or any other person;
	 
	 	2.3.4	 	any amendment, novation, supplement, extension (whether of maturity or otherwise) or
restatement (in each case however fundamental and of whatsoever nature, and whether or not
more onerous) or replacement of a Loan Document or any other document or security or of
the Obligations;
	 
	 	2.3.5	 	any unenforceability, illegality or invalidity of any obligation of any person under
any Loan Documents or any other document or security or of the Obligations; or
	 
	 	2.3.6	 	any insolvency or similar proceedings, including, as a matter of Guernsey law, a
declaration of désastre or the granting of a preliminary vesting order.

	2.4	 	The creation of the security interest pursuant to Clause 2.1 is in addition to, and shall not
affect, the Collateral Agent’s other rights under or pursuant to this Agreement.
	 
	2.5	 	The Grantor undertakes that, on the date of execution of this Agreement, it shall:

	 	2.5.1	 	provided that the Notice has been signed by the Collateral Agent, execute and
deliver to the Company the Notice and, following the delivery of such Notice, procure that
the Company executes and promptly delivers the Acknowledgment to the Collateral Agent; and
	 
	 	2.5.2	 	execute and deliver undated stock transfer forms in relation to the Securities (the
“Stock Transfer Forms”), with the name of the transferee left blank, to the Collateral
Agent.

	2.6	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent may complete the
Stock Transfer Forms.
	 
	2.7	 	No defect in respect of any security interest created in any intangible movable property from
time to time comprising the Collateral shall derogate from or affect the validity of this
Agreement or the security interest created pursuant to this Agreement in relation to any other
intangible movable property.
	 
	2.8	 	If an Enforcement Event has occurred and is continuing, the Collateral Agent may at its
discretion pay any calls or other payments due from time to time in respect of the Collateral or
payable in respect of any rights attaching to the Collateral.
	 
	2.9	 	Unless an Enforcement Event has occurred and is continuing, the parties to this Agreement
agree that:

	 	2.9.1	 	the Grantor may receive all dividends, income, interest or other amounts relating to
the Derivative Assets from time to time paid on the Collateral to the extent permitted
under the Principal Finance Documents; and
	 
	 	2.9.2	 	the Grantor shall be entitled to exercise all voting rights in relation to the
Collateral and exercise all other rights and powers in respect of the Collateral provided
that the Grantor shall not exercise such rights and powers in any manner which would
adversely affect the validity or enforceability of this

 

 

	 	 	Agreement or which would cause the occurrence of an Enforcement Event.

	3	 	Undertakings

	3.1	 	The Grantor undertakes to the Collateral Agent for the continuance of this Agreement that,
unless otherwise permitted under the Principal Finance Documents:

	 	3.1.1	 	it will pay all calls or other payments due from time to time in respect of the
Securities;
	 
	 	3.1.2	 	it will use best endeavours to procure that throughout the Security Period:

	 	(a)	 	no further shares in the Company shall be issued other than to the Grantor
unless the Grantor complies with Clause 3.2; and
	 
	 	(b)	 	no amendment be made to the memorandum and articles of incorporation of the
Company which would adversely affect the validity or enforceability of this
Agreement or which would cause the occurrence of an Enforcement Event,
	 
	 	without the prior written consent of the Collateral Agent (acting on the
reasonable instruction of the Applicable Representative); and

	 	3.1.3	 	it will deposit with the Collateral Agent copies of all documents relating to any
bonus or rights or other issue of stock or shares in respect of the Securities.

	3.2	 	At all times throughout the Security Period, the Grantor shall, subject to the Agreed
Security Principles, cause any third party which may, from time to time, subscribe for shares of
the Company, to provide a Lien over such shares in a substantially similar form to this
Agreement.
	 
	4	 	Covenants
	 
	4.1	 	The Grantor covenants and undertakes to the Collateral Agent, so that the same shall be
continuing covenants and undertakings throughout the Security Period, that it shall not without
prior written consent of the Collateral Agent, acting on the instruction of the Applicable
Representative (such instruction not to be unreasonably withheld or delayed), except as permitted
under the Principal Finance Documents or this Agreement:

	 	4.1.1	 	negotiate, settle or waive any claim for loss, damage or other compensation
affecting the Collateral or any part of it; or
	 
	 	4.1.2	 	create nor attempt to create nor allow the creation of any further Encumbrance in or
over the Collateral; or
	 
	 	4.1.3	 	sell or attempt to sell, encumber, withdraw, close, disburse, pay, assign, transfer
or otherwise dispose of the Collateral or any interest in it or part of it.

	4.2	 	The Grantor covenants and undertakes to the Collateral Agent, so that the same shall be
continuing covenants and undertakings throughout the Security Period, that it shall use best
endeavours to prevent any person (other than the Collateral Agent, any Secured Party or the
Grantor) from becoming entitled to claim any right over the Collateral or any part of it, unless
such claim is permitted by the Principal Finance Documents.
	 
	5	 	Enforcement Event

 

 

	5.1	 	Without prejudice and in addition to any of the rights of the Collateral Agent under the Law
(after the occurrence of an Enforcement Event which is continuing), if an Enforcement Event has
occurred and is continuing, the Collateral Agent may (upon the instruction of the Applicable
Representative) enforce the security granted by this Agreement, following delivery of the
required notice under the Law.
	 
	5.2	 	If an Enforcement Event has occurred and is continuing and provided the Collateral Agent has
served notice in accordance with Clause 5.1, the Grantor authorises and instructs the Collateral
Agent to deal with the Collateral in its own discretion as it sees fit in accordance with the
Intercreditor Arrangements without any reference to or further authority from the Grantor and
without any enquiry by the Grantor as to the justification for the Collateral Agent’s actions.
	 
	6	 	Release of Security
	 
	6.1	 	The security interest created pursuant to this Agreement shall continue in full force and
effect until it shall be released, re-assigned, re-transferred and cancelled:

	 	6.1.1	 	by the Collateral Agent (acting on the instructions of the Applicable
Representative) at the request and cost of the Grantor, upon the 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 Grantor or any other person under any of the Loan Documents; or
	 
	 	6.1.2	 	in accordance with, and to the extent required by, the Intercreditor Arrangements
(to the extent it is possible to give effect to such arrangements under Guernsey law).

	6.2	 	Upon the discharge of the security interest created pursuant to this Agreement the Collateral
Agent shall at the Grantor’s cost:

	 	6.2.1	 	furnish to the Grantor a completed certificate of discharge in the form prescribed
by the Law;
	 
	 	6.2.2	 	re-assign or re-transfer the Collateral to the Grantor or to such person as the
Grantor may direct;
	 
	 	6.2.3	 	deliver the certificates or documents of title, notices and stock transfer forms in
respect of the Collateral to the Grantor or to such other person as the Grantor may
direct; and
	 
	 	6.2.4	 	do all such acts which are reasonably requested by the Grantor in order to release,
re-assign, re-transfer and cancel the security interest constituted by this Agreement.

	6.3	 	If the Grantor disposes of any Collateral and that disposal is permitted by the Principal
Finance Documents, that Collateral shall, unless an Enforcement Event has occurred and is
continuing, be automatically released, re-assigned, re-transferred and cancelled from the
security interest constituted by this Agreement with effect from the day of such disposal and the
Collateral Agent (at the expense and cost of the Grantor) shall do all such acts which are
reasonably requested by the Grantor in order to release, re-assign, re-transfer and cancel the
relevant Collateral from the security interest constituted by this Agreement. Any or all of the
Collateral shall also be released, re-assigned, re-transferred and cancelled in accordance with
and to the extent permitted by the Intercreditor Arrangements.
	 
	7	 	Exchange Rate

 

 

	 	 	The Collateral Agent may exchange or convert to the Required Currency any currency held or
received by it from the Grantor in accordance with the terms of the Principal Finance
Documents.

	8	 	Power of Attorney
	 
	8.1	 	The Grantor by way of security irrevocably appoints the Collateral Agent to be its attorney
(with full power of substitution and delegation) in its name and 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:

	 	8.1.1	 	carrying out any obligation imposed on the Grantor by this Agreement or any other
agreement binding on the Grantor in relation to the Collateral 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);
	 
	 	8.1.2	 	enabling the Collateral Agent to exercise, or delegate the exercise of, all or any
of its rights under or pursuant to this Agreement or by law; and
	 
	 	8.1.3	 	enabling any person delegated by the Collateral Agent to exercise, or delegate the
exercise of any of the rights, powers and authorities conferred on them by or pursuant to
this Agreement or by law,

	 	 	provided always that the Collateral Agent may only be entitled to exercise the powers
conferred upon it by the Grantor under this Clause 8.1 if:

	 	(i)	 	an Enforcement Event has occurred and is continuing; and/or
	 
	 	(ii)	 	in respect of further assurance obligations or any action relating to
the perfection of the security contemplated under this Agreement, the Collateral Agent has
received notice from the Applicable Representative, the Loan Parties’ Agent and/or the
Grantor that the Grantor has failed to comply with a further assurance or perfection
obligation within 10 Business Days of being notified of that failure (with a copy of that
notice being sent to the Loan Parties’ Agent),

	 	 	provided further that the Collateral Agent shall not be obliged to exercise the powers
conferred upon it by the Grantor under this Clause 8.1 unless and until it shall have been
(a) instructed to do so by the Applicable Representative and (b) indemnified and/or
secured and/or prefunded to its satisfaction.

	8.2	 	The Grantor shall ratify and confirm all things lawfully done and all documents properly
executed by the Collateral Agent or any person properly delegated by it as an attorney in the
exercise or purported exercise of all or any of the powers hereby granted.
	 
	9	 	Appropriation
	 
	9.1	 	Subject to Clause 9.2 and if an Enforcement Event has occurred and is continuing, the
Collateral Agent may appropriate all payments received in respect of the Collateral for the
account of the Grantor in reduction of any part of the Obligations in accordance with the
Intercreditor Arrangements.
	 
	9.2	 	The Collateral Agent may open a new account or accounts if the Collateral Agent receives
actual or constructive notice of any charge or interest affecting the Collateral, unless such
charge or interest is permitted under the Principal Finance Documents. Whether or not the
Collateral Agent opens any such account no

 

 

	 	 	payment received by the Collateral Agent after receiving such notice shall (if followed by
any payment out of or debit to the relevant account other than for the purpose of
satisfying the Obligations) be appropriated towards or have the effect of discharging any
part of the Obligations outstanding at the time of receiving such notice, unless such
notice is in respect of a charge or interest permitted under the Principal Finance
Documents.

	10	 	Preservation of other Security and Rights and Further Assurance
	 
	10.1	 	This security is in addition to any other security present or future held by the Collateral
Agent for the Obligations and shall not merge with or prejudice such other security or any
contractual or legal rights of the Collateral Agent.
	 
	10.2	 	The security created by this Agreement shall not be affected by any other security held by
the Collateral Agent in respect of the Obligations being void or unenforceable.
	 
	10.3	 	Subject to the Agreed Security Principles, the Grantor shall at its own cost and at the
Collateral Agent’s request (acting on the reasonable instructions of the Applicable
Representative), execute or procure the execution of, any agreement, deed or document and take
any action required by the Collateral Agent, in each case to protect or preserve the security
created by this Agreement over the Collateral.
	 
	11	 	Credit Agreement Warranties
	 
	 	 	The Grantor hereby warrants and represents to the Collateral Agent that, on and as at the
date of this Agreement with reference to the facts and circumstances then existing and
subject to the provisions of the Principal Finance Documents and the Intercreditor
Arrangements, the representations and warranties made by the Grantor as Loan Party in
Section 3.01 (Organisation; Powers), Section 3.02 (Authorization), Section 3.03
(Enforceability), Section 3.06 (No Material Adverse Change), Section 3.07 (Title to
Properties; Possession Under Leases), Section 3.09 (Litigation; Compliance with Laws),
Section 3.10 (Agreements), Section 3.19 (Security Documents) and Section 3.22 (Solvency)
of the Credit Agreement are true and accurate as regards the Grantor and this Agreement.
	 
	12	 	Creation of a Suspense Account
	 
	12.1	 	All monies received, recovered or realised by the Collateral Agent under this Agreement may,
at the discretion of the Collateral Agent (acting on the instructions of the Applicable
Representative), be credited to an interest bearing separate or suspense account for so long as
the Collateral Agent may think fit without any intermediate obligation on the part of the
Collateral Agent to apply such monies in or towards payment and discharge of the Obligations.
	 
	13	 	Assignment
	 
	13.1	 	The Collateral Agent may assign and transfer all or any part of its rights and obligations
under this Agreement in accordance with the Principal Finance Documents and the expression
“Collateral Agent” wherever used in this Agreement shall be deemed to include any such assignees
and other successors permitted under the Principal Finance Documents, whether immediate or
derivative, of the Collateral Agent, who shall be entitled to enforce and proceed upon this
Agreement in the same manner as if named in this Agreement.
	 
	13.2	 	The Grantor shall not assign or otherwise transfer all or any of its rights, benefits or
obligations arising under this Agreement unless otherwise permitted by the Principal Finance
Documents.

 

 

	14	 	Notices
	 
	14.1	 	For the purposes of section 13 of the Law, any notice or demand by the Collateral Agent
or the Grantor shall be made or given in accordance with Section 5.01 of the First Lien
Intercreditor Agreement or may effectually be made by notice in writing to the Grantor served in
accordance with Section 13 of the Law.
	 
	14.2	 	For the avoidance of doubt, the parties to this Agreement agree that any notice
of default required to be given pursuant to Section 7(3) of the Law shall be deemed to have been
received by the Grantor if delivered in accordance with Clause 14.1 above.
	 
	15	 	Costs and Expenses
	 
	 	 	The parties agree that the Additional Collateral Agent’s Fee Letter and Section
9.05(a) of the Credit Agreement shall apply to this Agreement as regards the Grantor and
this Agreement.
	 
	16	 	Delegation
	 
	 	 	Subject to Section 4.05 of the First Lien Intercreditor Agreement, the Collateral Agent
shall have full power to delegate (either generally or specifically) the powers,
authorities and discretions conferred on it by this Agreement (including the power of
attorney) on such terms and conditions as it shall see fit which delegation shall not
preclude either the subsequent exercise, any subsequent delegation or any revocation of
such power, authority or discretion by the Collateral Agent itself.
	 
	17	 	Indemnity
	 
	 	 	To the extent set out in Section 4.11 of the First Lien Intercreditor Agreement, the
Grantor shall, notwithstanding any release or discharge of all or any part of the
security, indemnify the Collateral Agent, its agents, attorneys and any delegate against
any action, proceeding, claims, losses, liabilities, expenses, demands, taxes and costs
which it may sustain as a consequence of any breach by the Grantor of the provisions of
this Agreement, the exercise or purported exercise of any of the rights and powers
conferred on them by this Agreement or otherwise relating to the Collateral.
	 
	18	 	No liability
	 
	 	 	None of the Collateral Agent, its nominee(s) or any delegate appointed pursuant to this
Agreement shall be liable by reason of (a) taking any action permitted by this Agreement
or (b) any neglect or default in connection with the 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.
	 
	19	 	Droit de Discussion and Droit de Division
	 
	 	 	The Grantor abandons all and every right which it may have at any time under any existing
or future Guernsey law including, but not limited to the “droit de discussion” and the
“droit de division” or otherwise to require that recourse be had to the assets of some
other person nor shall the Grantor be entitled to require that any other person be made a
party to any legal proceedings brought by the Collateral Agent, or to require that any
liability of the Grantor be divided or apportioned amongst any other persons or reduced in
any manner whatsoever, whether the formalities required by Guernsey law, in regard to the
rights or obligations of sureties shall or shall not have been observed.
	 
	20	 	General

 

 

	20.1	 	The rights and remedies provided in this Agreement are cumulative and are not exclusive of
any rights or remedies provided by law or to which the Collateral Agent may otherwise be
entitled.
	 
	20.2	 	No failure on the part of the Collateral Agent to exercise and no delay on its part in
exercising any right or remedy under this Agreement will operate as a waiver of it, nor will any
single or partial exercise of any right or remedy preclude any other or further exercise of it or
any other right or remedy.
	 
	20.3	 	With the exception of any action permitted under this Agreement, any waiver or consent by
the Collateral Agent under this Agreement must be in writing and may be given subject to any
conditions thought fit by the Collateral Agent acting reasonably.
Unless otherwise stated, any waiver or consent shall be effective for the period and for
the purpose for which it is given.
	 
	20.4	 	Any liberty or power which may be exercised or any determination which may be made under
this Agreement by the Collateral Agent may, subject to any terms of this Agreement to the
contrary, be exercised or made in the absolute and unfettered discretion of the Collateral Agent.
	 
	20.5	 	This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, personal representatives, executors, administrators, successors, permitted
transferees and permitted assigns as provided in this Agreement.
	 
	20.6	 	The security interests created under this Agreement shall remain binding on the Grantor
notwithstanding any amalgamation, re-construction, re-organisation, merger, sale, liquidation,
administration or transfer by or involving the Collateral Agent or its assets unless such
security interests are released, re-assigned, re-transferred or cancelled in accordance with
Clause 6 of this Agreement.
	 
	20.7	 	Nothing in this Agreement and no action taken by the parties pursuant to this Agreement
shall constitute, or be deemed to constitute, the parties a partnership, association, joint
venture or other co-operative entity.
	 
	20.8	 	Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Agreement, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.
	 
	20.9	 	This Agreement is subject to the terms of the Intercreditor Arrangements. In the event of a
conflict between the terms of this Agreement and the Intercreditor Arrangements, the terms of the
Intercreditor Arrangements will prevail.
	 
	20.10	 	The Collateral Agent shall be entitled to impart any information concerning the Grantor in
respect of the Collateral to the extent permitted by the terms of the Principal Finance Documents
and this Agreement.
	 
	20.11	 	This Agreement may be executed in any number of counterparts. All the counterparts shall
together constitute a single instrument.
	 
	21	 	Governing Law and Jurisdiction
	 
	21.1	 	This Agreement shall be governed by and construed in accordance with the laws of the Island
of Guernsey.
	 
	21.2	 	For the benefit of the Collateral Agent the Grantor irrevocably submits to the jurisdiction
of the Guernsey courts and the Grantor irrevocably agrees that a

 

 

	 	 	judgment in any proceedings in connection with this Agreement by the Guernsey courts shall
be conclusive and binding upon the Grantor and may be enforced against the Grantor in the
courts of any other jurisdiction. The Collateral Agent shall also be entitled to take
proceedings in connection with this Agreement against the Grantor in the courts of any
country in which the Grantor has assets or in any other courts of competent jurisdiction.

	21.3	 	The Grantor waives:

	 	21.3.1	 	any objection which the Grantor may now or in the future have to the Guernsey
courts or other courts referred to in Clause 21.2 as a venue for any proceedings in
connection with this Agreement; and
	 
	 	21.3.2	 	any claim which the Grantor may now or in the future be able to make that any
proceedings in the Guernsey courts or other courts referred to in Clause 21.2 have been
instituted in an inappropriate forum.

IN WITNESS OF WHICH this Agreement has been duly executed

SIGNED by

for and on behalf of

SIG COMBIBLOC GROUP AG

SIGNED by

for and on behalf of

WILMINGTON TRUST (LONDON) LIMITED

 

SCHEDULE 1

The Securities

The entire issued share capital of SIG Asset Holdings Limited a non-cellular company limited by
shares whose registered number is 28883 and whose registered office as at the date of this
Agreement is at Heritage Hall, Le Marchant Street, St Peter Port, Guernsey, being 81,647 non
redeemable preference shares of €10.00 each fully paid up and 656 ordinary shares of €10.00 each
fully paid up.

	 	 	 	 	 	 	 	 	 
	SHAREHOLDER	 	 	 	 	 	 	 	 
	AND ADDRESS	 	 	 	 	 	 	 	 
	AND	 	 	 	 	 	 	 	 
	REGISTERED	 	 	 	 	 	 	 	 
	NUMBER	 	BENEFICIAL OWNER	 	NO. OF SHARES	 	CLASS OF SHARES	 	CERTIFICATE NO.
	SIG
COMBIBLOC GROUP AG with
business address
as at the date of
this Agreement, at
Laufengasse 18,
CH-8212
Neuhausen am
Rheinfall,
Switzerland and
company number
CH-290.3.004.149-2
	 	SIG COMBIBLOC GROUP AG	 	656	 	Ordinary	 	2004
	 
	 	 	 	 	 	 	 	 
	SIG COMBIBLOC
	 	SIG        COMBIBLOC	 	81,647	 	Non	 	3009
	GROUP AG with
	 	GROUP AG	 	 	 	redeemable	 	 
	business address
	 	 	 	 	 	preference	 	 
	as at the date of
this Agreement, at
Laufengasse 18,
CH-8212
Neuhausen am
Rheinfall,
Switzerland and
company number
CH-290.3.004.149-2
	 	 	 	 	 	 	 	 

 

SCHEDULE 2

Part 1

Notice to Company

	 	 	To: SIG Asset Holdings Limited (“Company”)
	 
	 	 	From: Wilmington Trust (London) Limited (“Collateral Agent”); and
SIG Combibloc Group AG (“Grantor”)

	 	 	Date: [•]

Dear Sirs

Security Interest Agreement over Securities in the Company between the Grantor, the
Company and the Collateral Agent dated [•] (“SIA”)

We refer to the SIA. This is a Notice. Terms defined in the SIA have the same meaning when used
in this Notice unless given a different meaning in this Notice.

	1	 	We give you notice that pursuant to the terms of the SIA the Grantor has assigned to the
Collateral Agent:
	 
	1.1	 	the entire issued share capital of the Company as at the date hereof (“Securities”); and
	 
	1.2	 	to the fullest extent permitted by law, all securities, rights, dividends, interest, monies
and distributions (whether of a capital or income nature) accruing, offered, issued or deriving
at any time by way of dividend, bonus, redemption, exchange, purchase, sale, substitution,
conversion, consolidation, sub-division, preference, option or otherwise attributable to any of
the securities which from time to time comprise the Securities and includes any Securities which
may be renumbered or redesignated (“Derivative Assets”); and
	 
	1.3	 	all the Grantor’s right, title and interest to and in the Securities and the Derivative
Assets, (together the “Collateral”).
	 
	2	 	Until the entry of the name of the Collateral Agent or its nominee in the register of
members of the Company in accordance with the terms of the SIA, the assignment of the
Collateral pursuant to the SIA does not operate as an assignment to the Collateral Agent of
the voting rights in or in respect of the Securities, nor does it operate as an assignment
of all Derivative Assets from time to time paid on the Collateral.
	 
	3	 	We irrevocably authorise you to disclose to the Collateral Agent or its nominees, attorneys
or assigns (notified by you in writing from time to time by the Collateral Agent) all such
information relating to the Securities as you are required to disclose under the terms of
the Principal Finance Documents.
	 
	4	 	Unless you receive notice from the Collateral Agent or its nominees, attorneys or

 

	 	 	assigns to the contrary, or the Lien over such Securities is released in accordance with
the terms of the SIA, you shall administer the Securities in accordance with the terms of
this Notice.

	6	 	This notice shall be governed by and construed in accordance with the laws of the Island of
Guernsey.

Please confirm your agreement to be bound by and comply with the terms of this Notice by signing
and returning, both a copy of this Notice and the acknowledgement below, to the Collateral Agent
at the address below marked for the attention of Elaine Lockhart with a copy to the Grantor.

Yours faithfully

SIGNED by

For and on behalf of

WILMINGTON TRUST (LONDON) LIMITED

SIGNED by

For and on behalf of

SIG COMBIBLOC GROUP AG

 

Part 2

ACKNOWLEDGMENT

	To: 	 	Wilmington Trust (London) Limited 

6 Broad Street Place

London EC2M 7JH

United Kingdom

For the attention of: Elaine Lockhart

Dated [ • ]

Dear Sirs

Terms defined in the Notice have the same meaning when used in this Acknowledgment.

We confirm that:

	(1)	 	we accept the authorisations and instructions contained in the Notice and we undertake to act
in accordance and comply with the terms of the Notice;
	 
	(2)	 	at the date of this acknowledgement we have not received notice of any other security
interest, lien, mortgage, charge or any other third party interest whatsoever in relation to the
Securities;
	 
	(3)	 	if we become aware of any matter referred to in paragraph (2) above, unless such matter is
permitted under the Principal Finance Documents (as defined in the SIA) we will promptly inform
you in writing of such event;
	 
	(4)	 	if instructed by you in writing (accompanied by a relevant and complete stock transfer form)
if an Enforcement Event (as defined in the SIA) has occurred and is continuing, we will enter in
the register of members of the Company your name or the name of any nominee, attorney or assignee
in accordance with the provisions of such stock transfer form;

This acknowledgement is governed by and construed in accordance with the laws of the Island of
Guernsey.

Yours faithfully

SIG ASSET HOLDINGS LIMITED

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