Document:

Second Lien Intellectual Property Security Agreement

 EXHIBIT 10.7 
  
 EXECUTION COPY 
  
 SECOND LIEN INTELLECTUAL PROPERTY SECURITY AGREEMENT 
  
 This INTELLECTUAL PROPERTY SECURITY AGREEMENT (as amended, amended and restated, supplemented or otherwise modified from time to time, the “IP
Security Agreement”) dated October 12, 2005, is made by the Persons listed on the signature pages hereof (collectively, the “Grantors”) in favor of The Bank of New York, as trustee (the
“Trustee”) for the Secured Parties (as defined in the Credit Agreement referred to below). 
  
 WHEREAS, Pregis Corporation, a Delaware corporation, has entered into a Credit Agreement dated as of October 12, 2005 (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), with Credit Suisse, as Administrative Agent and as Collateral Agent, Pregis Holding II Corporation, as parent guarantor, the subsidiary
guarantors referred to therein and the Lender Parties party thereto. Terms defined in the Credit Agreement and not otherwise defined herein are used herein as defined in the Credit Agreement. 
  
 WHEREAS, as a condition precedent to the making of Advances and the issuance
of Letters of Credit by the Lender Parties under the Credit Agreement and the entry into Secured Hedge Agreements by the Hedge Banks from time to time, each Grantor has executed and delivered that certain Second Lien Security Agreement dated
October 12, 2005 made by the Grantors to the Trustee (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”). 
  
 WHEREAS, under the terms of the Security Agreement, the Grantors have granted
to the Trustee, for the ratable benefit of the Secured Parties, a security interest in, among other property, certain intellectual property of the Grantors, and have agreed as a condition thereof to execute this IP Security Agreement for recording
with the U.S. Patent and Trademark Office, the United States Copyright Office and other governmental authorities. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor agrees as follows:

  
 SECTION 1. Grant of Security. Each Grantor hereby
grants to the Trustee for the ratable benefit of the Secured Parties a security interest in all of such Grantor’s right, title and interest in and to the following (the “Collateral”): 
  
 (i) the patents and patent applications set forth in Schedule A hereto (the
“Patents”); 
  
 (ii) the trademark and
service mark registrations and applications set forth in Schedule B hereto (provided that no security interest shall be granted in United States intent-to-use trademark applications to the extent that, and solely during the period in which, the
grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law), together with the goodwill symbolized thereby (the “Trademarks”);

  
 Pregis Intellectual Property Security Agreement 

 (iii) all copyrights, whether registered or unregistered, now owned or hereafter acquired by such
Grantor, including, without limitation, the copyright registrations and applications and exclusive copyright licenses set forth in Schedule C hereto (the “Copyrights”); 
  
 (iv) all reissues, divisions, continuations, continuations-in-part,
extensions, renewals and reexaminations of any of the foregoing, all rights in the foregoing provided by international treaties or conventions, all rights corresponding thereto throughout the world and all other rights of any kind whatsoever of such
Grantor accruing thereunder or pertaining thereto; 
  
 (v) any and
all claims for damages and injunctive relief for past, present and future infringement, dilution, misappropriation, violation, misuse or breach with respect to any of the foregoing, with the right, but not the obligation, to sue for and collect, or
otherwise recover, such damages; and 
  
 (vi) any and all proceeds
of, collateral for, income, royalties and other payments now or hereafter due and payable with respect to, and supporting obligations relating to, any and all of the Collateral of or arising from any of the foregoing. 
  
 SECTION 2. Security for Obligations. The grant of a security interest
in, the Collateral by each Grantor under this IP Security Agreement secures the payment of all Obligations of such Grantor now or hereafter existing under or in respect of the Loan Documents, whether direct or indirect, absolute or contingent, and
whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes of action, costs, expenses or otherwise. Without limiting the generality of the foregoing, this IP Security Agreement secures,
as to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and that would be owed by such Grantor to any Secured Party under the Loan Documents but for the fact that such Secured Obligations are unenforceable or
not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party. 
  
 SECTION 3. Recordation. Each Grantor authorizes and requests that the Register of Copyrights, the Commissioner for Patents and the Commissioner for
Trademarks and any other applicable government officer record this IP Security Agreement. 
  
 SECTION 4. Execution in Counterparts. This IP Security Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together
shall constitute one and the same agreement. 
  
 SECTION 5.
Grants, Rights and Remedies. This IP Security Agreement has been entered into in conjunction with the provisions of the Security Agreement. Each Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to,
and the rights and remedies of, the Trustee with respect to the Collateral are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated herein by reference as if fully set forth herein. 
  
 SECTION 6. Governing Law. This IP Security Agreement shall be governed
by, and construed in accordance with, the laws of the State of New York. 
  
 Pregis Intellectual Property Security Agreement 

 IN WITNESS WHEREOF, each Grantor has caused this IP Security Agreement to be duly executed and delivered
by its officer thereunto duly authorized as of the date first above written. 
  

			
	PREGIS CORPORATION
		
	By	 	 /s/ Kevin J. Corcoran

	Name:	 	Kevin J. Corcoran
	Title:	 	Chief Financial Officer
	
	Address for Notices:
	c/o AEA Investors LLC
	Park Avenue Tower
	65 East 55th Street
	New York, NY 10022
	
	PREGIS HOLDING II CORPORATION
		
	By	 	 /s/ Kevin J. Corcoran

	Name:	 	Kevin J. Corcoran
	Title:	 	Chief Financial Officer
	
	Address for Notices:
	c/o AEA Investors LLC
	Park Avenue Tower
	65 East 55th Street
	New York, NY 10022

  
 Pregis
Intellectual Property Security Agreement 

			
	PREGIS INNOVATIVE PACKAGING INC.
		
	By	 	 /s/ Kevin J. Corcoran

	Name:	 	Kevin J. Corcoran
	Title:	 	Chief Financial Officer
	
	Address for Notices:
	1900 W. Field Court
	Lake Forest, IL 60045
	
	HEXACOMB CORPORATION
		
	By	 	 /s/ Kevin J. Corcoran

	Name:	 	Kevin J. Corcoran
	Title:	 	Chief Financial Officer
	
	Address for Notices:
	1900 W. Field Court
	Lake Forest, IL 60045
	
	PREGIS MANAGEMENT CORPORATION
		
	By	 	 /s/ Kevin J. Corcoran

	Name:	 	Kevin J. Corcoran
	Title:	 	Chief Financial Officer
	
	Address for Notices:
	1900 W. Field Court
	Lake Forest, IL 60045

  
 Pregis
Intellectual Property Security AgreementManagement Agreement

 EXHIBIT 10.8 
  
 MANAGEMENT AGREEMENT 
  

AGREEMENT made as of October 12, 2005 by and between PREGIS CORPORATION, a Delaware corporation (the “Corporation”), and AEA
INVESTORS LLC, a Delaware limited liability company (“AEA”). 
  
 WHEREAS, pursuant to a stock purchase agreement dated as of June 23, 2005, the Corporation has acquired, directly or indirectly, all of the issued and outstanding capital stock and other equity interests of the
companies set forth on Annex A thereto (the “Subsidiaries”); 
  
 WHEREAS, AEA renders advisory and consulting services to selected client companies, and the Corporation desires to retain AEA to render advisory and consulting services to it and the Subsidiaries and AEA is willing to
provide such services on the terms and conditions hereinafter set forth; 
  
 NOW, THEREFORE, it is mutually agreed as follows: 
  
 1. The Corporation hereby retains AEA to render advisory and consulting services to the Corporation and the Subsidiaries, and AEA hereby agrees to render such services, for the period commencing on October 12,
2005 and continuing so long as AEA or its investor group directly or indirectly own an interest in the Corporation. AEA shall render such advisory and consulting services to the Corporation and the Subsidiaries in connection with such financial,
management and other matters relating to the business and operations of the Corporation, the Subsidiaries or any of their affiliated companies, as the Corporation’s Board of Directors may from time to time request (the
“Services”). 
  
 2. As compensation for the
Services rendered pursuant to Section 1 hereof, the Corporation shall pay, and AEA will accept, so long as this Agreement continues in effect, a fee of $1,500,000 per year due and payable (a) as soon as practical after the date hereof on a
pro rated basis for the period from the date hereof until October 31, 2005 and (b) thereafter, quarterly in advance on the first day of each calendar quarter, commencing as of October 1, 2005. The Corporation also agrees to the
provisions with respect to indemnifying AEA and the other matters set forth in Annex A hereto, which is hereby incorporated by reference into this Agreement (the “Indemnification Agreement”). 

 (a) It is the understanding of the parties that AEA may be involved with potential acquisitions, mergers,
financings or other major transactions involving any of the Corporation, the Subsidiaries and their affiliates, in which case AEA shall be entitled to such compensation, in addition to the fee provided above so long as AEA is continuing to provide
the Services, as the Corporation and AEA shall mutually agree. 
  
 (b) In the event that the Corporation employs any employee of AEA as an officer of the Corporation, any of the Subsidiaries or otherwise, and such employment or other arrangement involves a substantial amount of such employee’s time,
the Corporation shall compensate such employee at a reasonable rate to be agreed upon among such employee, the Corporation and AEA, and the compensation payable to such employee by the Corporation shall not reduce or affect in any way the fees
payable to AEA hereunder. 
  
 (c) In addition to the
aforementioned fees, the Corporation shall reimburse AEA and its affiliates for their reasonable out-of-pocket costs and expenses incurred in connection with the performance of the Services hereunder. In addition, the Corporation shall reimburse AEA
and its affiliates for their out-of-pocket expenses (including, without limitation, legal, accounting, consulting and other professional fees) incurred in connection with (i) AEA’s and its affiliates’ monitoring of the investment in
the Corporation and the development, preparation, negotiation, printing and execution of any amendment, supplement or modification to this Agreement or any of the other agreements or documents executed in connection with or related to the
investments in the Corporation held by affiliates of AEA and (ii) the enforcement, performance and administration of this Agreement or any of the other agreements or documents executed in connection with or related to the investments held by
affiliates of AEA in the Corporation. 
  
 3. Any notice required
to be given hereunder shall be in writing and shall be deemed sufficient if delivered in person or mailed by certified mail as follows: if to the Corporation, to it 
  

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 at its office at 1900 West Field Court, Lake Forest, IL 60045, or such other address as the Corporation may hereafter
designate for that purpose; and if to AEA, to it at its office at Park Avenue Tower, 65 East 55th Street, New York, New York 10022, or such other address as AEA may hereafter designate for that purpose. 
  
 4. This Agreement, together with the Indemnification Agreement, constitutes
the entire agreement between the parties and supersedes all prior agreements and understandings, both written and oral, with respect to the subject matter hereof. This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, including any corporation into which the Corporation shall consolidate or merge or to which it shall transfer substantially all of its assets. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such state. 
  

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 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date and year first
above written. 
  

			
	PREGIS CORPORATION
		
	By:	 	 /s/ Kevin J. Corcoran

	Name:	 	Kevin J. Corcoran
	Title:	 	Chief Financial Officer
	
	AEA INVESTORS LLC
		
	By:	 	 /s/ Thomas J. Pryma

	Name:	 	Thomas J. Pryma
	Title:	 	Vice President

  

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 ANNEX A - INDEMNIFICATION AGREEMENT 
  
 As part of the consideration for the agreement of AEA to furnish its services
under this Agreement, the Corporation hereby agrees to indemnify and hold harmless AEA and its affiliates and the respective managing directors, officers, directors, investors, shareholders, members, partners, employees and agents of, and persons
controlling, AEA or any of its affiliates within the meaning of either Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Act of 1934, as amended, and each of their respective successors and assigns
(collectively, the “indemnified persons”) from and against all claims, liabilities, expenses, losses or damages (or actions in respect thereof) related to or arising out of actions taken (or omitted to be taken) by AEA pursuant to
the terms of this Agreement, or AEA’s role in connection therewith; provided, however, that the Corporation shall not be responsible for any claims, liabilities, expenses, losses and damages to the extent that it is finally judicially
determined that they result primarily from actions taken or omitted to be taken by AEA in bad faith or due to AEA’s gross negligence or willful misconduct. If for any reason (other than the bad faith, gross negligence or willful misconduct of
AEA as provided above) the foregoing indemnity is unavailable to the indemnified persons or insufficient to hold the indemnified persons harmless, then the Corporation shall contribute to the amount paid or payable by the indemnified persons as a
result of such claim, liability, expense, loss or damage in such proportion as is appropriate to reflect not only the relative benefits received by the Corporation on the one hand and AEA on the other, but also the relative fault of the Corporation
and AEA, as well as any relevant equitable considerations, subject to the limitation that in any event AEA’s aggregate contribution to all claims, expenses, losses, liabilities and damages (except to the extent judicially determined to have
been primarily caused by the bad faith, gross negligence or willful misconduct of AEA) shall not exceed the amount of fees actually received by AEA pursuant to this Agreement. Promptly after receipt by AEA of notice of any complaint or the
commencement of any action or proceeding with respect to which indemnification may be sought against the Corporation, AEA will notify the Corporation in writing of the receipt or commencement thereof, but failure to notify the Corporation will
relieve the Corporation from any liability which it may have hereunder only if, and to the extent that, such failure results in the forfeiture of substantial rights and defenses, and will not in any event relieve the Corporation from any other
obligation to any indemnified person other than under this Indemnification Agreement. The Corporation shall assume the defense of such action (including payment of fees and disbursements of counsel) insofar as such action shall relate to any alleged
liability in respect of which indemnity may be sought against the Corporation. AEA shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and disbursements of such counsel shall be
at the expense of AEA unless employment of such counsel has been specifically authorized by the Chief Executive Officer of the Corporation in writing. The Corporation shall pay the fees and expenses of one separate 

 counsel for AEA and any other indemnified persons if the named parties to any such action (including any impleaded
parties) include the Corporation (or any of the directors of the Corporation) and AEA and (i) in the good faith judgment of AEA the use of joint counsel would present such counsel with an actual or potential conflict of interest or
(ii) AEA shall have been advised by counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the Corporation (or the director(s)). The Corporation shall not be liable to
indemnify any person for any settlement of any claim or action effected without written consent of the Chief Executive Officer of the Corporation, which consent shall not be unreasonably withheld. In addition, the Corporation hereby agrees to
reimburse AEA and each other indemnified person for all expenses (including reasonable fees and disbursements of counsel if the Corporation does not assume the defense of such action) as they are incurred by AEA, or any indemnified person in
connection with investigating, preparing or defending any such action or claim. AEA shall have no liability to the Corporation, any of its subsidiaries or affiliates or any of their directors, officers or employees in connection with the services
which AEA renders pursuant to this Agreement, except for AEA’s bad faith, gross negligence or willful misconduct judicially determined as aforesaid. The indemnification, contribution and expense reimbursement obligation the Corporation has
under this paragraph shall be in addition to any liability the Corporation may otherwise have. Any right to trial by jury with respect to any action or proceeding arising in connection with or as a result of either AEA’s engagement or any
matter referred to in this Agreement is hereby waived by the parties hereto. The provisions of this Annex A shall survive any termination or completion of the engagement provided by this Agreement. 
  
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